ElectriPlast: Presenting Doug Bathauer

Integral

Speaks

to

the EB...


By Vince S.,
ElectriPlast Blog
Editor



Integral Grants First Interview to the ElectriPlast Blog

[Editor’s Note: When the ElectriPlast Blog was first presented with the idea to conduct this inaugural interview of Integral Technologies officers, we decided to be guided by the rules of propriety, i.e., we would ask no loaded questions, no questions that would breech SEC regulatory requirements and clearly no controversial questions that would embarrass Integral or jeopardize our journalistic integrity, which we take very seriously. After much discussion at EB, we arrived at the following format. We are grateful for the opportunity to have Integral Technologies speak directly to you, the owners of this company.

As you all know, Doug Bathauer is the Vice President for Corporate Development at Integral Technologies. He has changed the communications’ dynamic at Integral by establishing the Company Corner, upgrading our old website, guiding the transition to the latest website and, linking it to various social networking sites. As websites go, we have come a long way since the infamous “orange pumpkin” design of nearly a decade ago.]



EB: Welcome to the ElectriPlast Blog, Doug. This is an historic occasion for us. Why, after all these years, did Integral decide to talk to us?

DB: Thanks. The Company has been through some pretty dynamic changes over the last year and a number of pivotal events have taken place as well. With all the activity, we are happy to interact with shareholders. I realize a lot of shareholders have been around a long time and there are some lingering questions, so I think the blog may be a good way to address some of those. I’ll answer everything I can, but due to disclosure rules I may not be able to answer everything as thoroughly as I would like. The blog has been around for six years and from what I have read, it has provided a fairly balanced portrayal of the company, so we are happy to talk to you.



EB: You have a very interesting background as a pilot and a financial advisor. Interestingly, both of those jobs carry a degree of risk, so it isn’t surprising that you left a well-paying job in finance to join this start-up company. Firstly, how did you assess the risk you were taking? Secondly, how did you convince the CEO, Bill Robinson, that you were the right person for the job?

DB: Every choice in life has an element of risk. In assessing my personal risk in coming to Integral, I felt there was a greater risk in not pursuing the opportunity. It isn’t often that an opportunity like this comes around. When I started, the company already had an impressive patent portfolio and manufacturing capabilities, so much of the “hard work” had already been done. So, for me, the timing was right. It wasn’t so much convincing (Bill Robinson); it was more of a discussion over time. I have been a shareholder of ITKG nearly since it began trading, and I had an interest in their antenna technology and how it might have applied to aviation. Over the years, I maintained contact with the company and its management as well. Coincidentally, Integral chose Jasper Rubber as their manufacturer, and I live in Southern Indiana only about 45 minutes from the Jasper plant. This increased my interest in the company even more. Jasper Rubber has a great reputation here locally so, my background with investors, my location, and my years as a shareholder gave me a unique perspective.




EB: When did you know you had made the right decision to leave the security of regular employment for the “uncertainty” of a start-up with a largely unknown Intellectual Property?

DB: I never really looked back after starting. I had done some in depth due diligence prior to starting and this was a major career move for me, so I was pretty comfortable before beginning but there are a few things that really solidified my belief. First, was seeing the line running at Jasper (Rubber). This was the thing that really made it real for me. Having only heard about ElectriPlast before, I liked the concept; but when I saw it manufactured and knew the amount of time and resources that went into the process, I knew it was the real thing. Secondly, was the feedback we received from IpCapital. IpCapital’s study was done to assess our IP and when they told us we were the global IP leader in conductive resins I was blown away. Thirdly, I have been in on many face- to-face meetings with potential Integral customers and engineers and have heard from them about the potential and performance of ElectriPlast. Not being an electrical engineer myself, hearing third parties endorse the material gave me great confidence in our technology.




EB: What can you point to as your accomplishments since you took over the communications’ portfolio, and what do you hope to do in the next year or so?

DB: We have continued to improve our website over the last 2 years and our SEO is about as good as it gets. Of course, the number one goal of our website is to increase awareness and interest in ElectriPlast to our audience. By the way our audience is the engineering community. The last 2 ½ years has also seen more press releases than in previous years. We are also quite pleased at our ability to include other company names in many of our PR’s. Making it known that we are working with companies such as Lear Corporation, Fisker, Think Wireless, and Hanwha is a huge accomplishment for us. Although we have accomplished a lot, we still have much to improve upon. We do want to make our website more shareholder friendly. It is, by design, fairly technical because as I said it is aimed at engineers but we realize we can simplify portions of it to make things clearer for investors. We also want to continue with the inclusion of the names of companies we are working with. We realize how important this is, but it isn’t always possible. It is our goal to see increased exposure in the independent media. I’m also open to suggestions for ways to further enhance our communications.




EB: One of the enduring mysteries surrounding Integral is the departure of Tom Aisenbrey. Occasionally referred to as the “Father of ElectriPlast,” Tom was admired for his incredible ability to develop patents surrounding our ElectriPlast technology. One day he was on the list of key people, the next he wasn’t. To this day, Integral hasn’t explained to shareholders why Tom is no longer with the company. Can you?

DB: Tom resigned in early 2009 and was replaced a few months later with Mo Zeidan. We are pleased to have someone with Mo’s background and experience.




EB: There are several teams working on selling ElectriPlast: Jasper Rubber (JARCO); Mo Zeidan and his team; and Herb Reedman and his ElectriPlast Corporation (EPC) unit. Now, the ElectriPlast website is advertising openings for sales engineers, materials specialists and market representatives. How many people are directly (or indirectly) involved in the EP commercialization effort? Also, are all sales efforts being consolidated under Paul Mackenzie at EPC?

DB: The primary purpose for forming ElectriPlast Corporation was to centralize our sales and marketing efforts. So, yes our sales efforts are now consolidated at EPC.




EB: As a follow-up, what is JARCO's role going forward? Why have they not been able to make at least one sale in 6 years?

DB: JARCO has been a valuable partner for us since the start of our relationship. They have been vital in helping to perfect our manufacturing process. Their primary focus has always been on the manufacturing process and not on sales.




EB: Currently, there are nine key people listed on the company website. When will our long-emerging Board of Directors be fully staffed?

DB: We were pleased to add two people the caliber of James Eagan and Herb Reedman to our board. They have both contributed greatly to our recent success. I can't give you a precise timetable as to when we will make additions to our board, but I can say we are considering other individuals that we feel can contribute to our success and we will continue to make additions to our board, individuals and time permitting.




EB: After the very optimistic report issued by the IP strategic consulting firm IpCapital, there were expectations that they would soon pursue violations of our Intellectual Property. Where does that stand?

DB: The purpose of the IpCapital relationship was initially to assess our position in the landscape of conductive resin, then to get a strategy as to how best to monetize our IP portfolio. Although at some point in the future the pursuit of violations may take place, we are working with IpCapital to leverage our IP portfolio and continue our IP leadership.




EB: With financing so difficult these days for micro-cap companies, what plans does Integral have to fund operations over the next year or so?

DB: We have been fortunate to have a loyal base of investors who have been instrumental in the funding of the company over the years. We have received positive responses from various groups within the capital market since the recent commercial orders from Think Wireless and Fisker and our relationship with Hanwha. We are currently pursuing various opportunities that would provide adequate funding. We really feel that finding the ideal financial partner is important to our long term success.




EB: Does Integral have an active project plan with milestones in place?

DB: Yes, we currently have multiple projects with milestones in place, but this would be a good one to ask Herb Reedman to go in to detail on.




EB: Who is responsible for managing, following up and/or maintaining currency on the 350+ Non-Disclosure Agreements?

DB: Simply put, it has been a group effort because of the volume of inquiries and the nature of ElectriPlast uses. Herb and his guys at ElectriPlast Corp. handle the majority of the inquiries and NDA’s at this point. Over the years, we have signed numerous NDA’s, but I don’t know exactly how many we have in place right now.




EB: Other than share price, do we meet the requirements for inclusion on one of the exchanges?

DB: We do meet many of the requirements and we are currently working towards meeting them all which would allow us to move from the bulletin board to a recognized national exchange.




EB: Is anyone working on a branding strategy for ElectriPlast?

DB: We have made tremendous strides with our digital branding. As I am sure you have seen, there is a big difference in a Google search now versus the last few years. In the more traditional sense, you may not notice the branding, but for an engineer looking for a conductive plastic, our brand Is strong.




EB: Do we have the financial resources to purchase the necessary raw materials and equipment to fulfill a large contract order (Hanwha, for example) or for multiple contracts?

DB: Yes, we feel we are in a position to fulfill a large contract.




EB: Why haven't we heard about wire, batteries, and/or the military application lately? Are they still in play?

DB: Absolutely! We continue to progress within those specific technologies and we will give updates on those via press releases as things advance. I would imagine we would have more detailed information out on them later this year.




EB: What do you think our Outstanding Share count will look like by year's end?

DB: Disclosure regulations prohibit me from giving forward looking financial projections.




EB: What is our monthly burn rate?

DB: I have to refer you to the filings for specific financial questions.




EB: Other than Bill Robinson and Bill Ince, are we paying all other company officers in stock? If so, are we accruing an additional deficit that will have to be paid first in the future?

DB: The majority of the accruals that have been present the last couple of filings have been the officers deferral of pay. Again I can’t directly address the current accrual, but if deferral of pay is necessary the officers are willing to continue to do that.




EB: What is being done to garner a new audience or to attract new shareholders?

DB: Our number 1 priority is the commercialization of ElectriPlast. Essentially all of our time, energy and resources are put towards that. As our successes continue and we are able to make public other companies we are working with in addition to Lear, Think Wireless and Hanwha, this should raise the profile of the company and attract investors. We have a cutting edge technology, we are the global IP leader in our space, and our product is now being used in commercial applications. Moreover, we have a top notch technical team, a seasoned sales/marketing team, dedicated and driven management and a growing list of global companies interested in doing business with us. Now that ElectriPlast is being utilized in commercial applications, I really feel the investment community will begin to take notice. All the years of R&D, patent filing, perfection of manufacturing, and prototyping has now resulted in use in commercial products. This is an exciting place to be right now.




EB: We look forward to that excitement spreading among Integral’s shareholders, Thanks for taking the time to address these issues, Doug. Also, we realize that this interview wouldn’t be possible without the approval of those above you, so we send our thanks to senior management. Finally, we look forward to talking to other Integral officers in the future.

DB: I really appreciate this opportunity. I want to thank our many shareholders who have stuck by us all these years; their support is much appreciated. I also want to encourage your readers and shareholders to contact us directly with questions. Disclosure rules prevent us from answering some questions but we’ll do our best. We welcome questions and input. Email us anytime @ itkginquiry@itkg.net