ElectriPlast: CEO's Letter to the Shareholders...
Message
To The
Share-
holders
BY: Doug Bauther, Integral CEO
24 Jan 2013
Dear Integral Shareholders,
As your CEO, my primary responsibility is to deliver shareholder value and to insure the worldwide success of our company; my secondary responsibility is to keep shareholders abreast of new developments, challenges and opportunities. These are roles that I am honored and humbled to have. Our team is constantly reminded of your enduring support, and I thank you for your patience, open-mindedness, and lasting commitment that has been, and will continue to be, essential to Integral's success in the months and years ahead.
My association with Integral began as a shareholder. I understand the many ups and downs associated with investing in a company that is launching an innovative technology. As with any new technology, business plans do not always follow the charted course and undoubtedly the road taken is longer than anticipated. As a result, my expectations and concerns mirror those of many other shareholders. Today, as I write to you as your newly-appointed CEO, I have heard many of your concerns and questions. "Do you guys know we're out here?" "Why doesn't the company tell us anything?" "What's this new management team up to?" "What is your plan?"
These are valid concerns and demonstrate our need to do a better job of communicating our vision, progress and direction. Your support, understanding and commitment to us have been, and will continue to be, essential to the success of Integral. To that end, I will focus on the future, not dwell on the past, by pledging to do a better job of keeping you informed - beginning now.
You already know that our foundation for growth consists of an extraordinary cutting-edge technology, a strong Intellectual Property portfolio, a seasoned sales organization and robust engineering capabilities, led by Mo Zeidan. Now we have added a focused, agile and determined board of directors that will enhance our ability to govern and guide our growing company, as it expands its commercialization; a dedicated and experienced ElectriPlast Corp. sales team, led by Herb Reedman; and a dynamic new management team, as a result of significant changes and appointments to key positions at your company. As a consequence of these changes, we are a smarter, more enthused, and a better-managed company.
But we recognize these things alone are not enough. We also need a clear, decisive strategy, focused on achieving rapid growth to commercialization and the realization of revenue. Key to our strategy is the leveraging of relationships.
Our business model includes collaborating with leading technology innovators to develop new product applications for ElectriPlast and to license our IP for its manufacture and commercialization across many industries. The more strategic relationships we are able to achieve, the more rapidly we can expand our global commercialization efforts, and by having multiple sources of revenue we will have a more sustainable and predictable revenue stream.
To this end, we will be announcing multiple joint development agreements, also now in the finalization process, with partners who recognize and want access to our superior technology and who have both the technical and engineering resources to aid in development of large volume applications, as well as the necessary distribution network once the application is commercialized. These partners are industry leaders in their fields that will provide us high profile exposure as well.
Our business model also includes developing multiple licensing and distribution opportunities to allow us to increase sales and revenues. This approach results in revenue generation that is three-pronged: (1) internally selling our proprietary ElectriPlast pellet, (2) selling through a 3rd party with already established distribution channels, and (3) licensing our technology on an upfront fee and royalty basis.
In this regard, we had anticipated finalizing the terms of the MOU with Hanwha L&C much earlier. The negotiations have taken longer than anticipated. We expect to finalize an agreement with them shortly, and we look forward to the prospects of partnering with a world-class global leader with a dominating brand in Asia.
Buoyed by our commercial success with our inclusion in the Fisker Karma, we continue to progress on internal sales efforts that reaches out to our potential customers who are beginning to recognize the advantages of ElectriPlast over competitive products.
I understand that the delivery of results is ultimately the measuring stick of any company, and 2013 is the year we will deliver results. You will see strategic relationships, further commercialization and a more transparent company, and you will see a driven, management team with a dedicated pursuit of shareholder value. We look ahead to the coming year with excitement and optimism, tempered only by the pragmatism that experience provides. With your sustained support, we will unceasingly endeavor towards turning innovation into convention, technology into profitability, and vision into reality. Our entire management team will work tirelessly to keep you informed, engaged, and proud to be an Integral shareholder.
Warm Regards,
Doug Bathauer
Chief Executive Officer
Integral Technologies Inc.
dbathauer@itkg.net
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. These statements include, without limitation, predictions and guidance relating to the company's future financial performance and the research, development and commercialization of its technologies. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements, as the result of such factors, risks and uncertainties as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, (3) other factors detailed in the company's public filings with the SEC, including, without limitation, those described in the Company's annual report on Form 10-K for the year ended June 30, 2011 as filed with the Securities and Exchange Commission and available at www.sec.gov, and (4) the parties may be unable to agree upon definitive agreements. You are urged to consider these factors carefully in evaluating the forward-looking statements.
posted by PK... | 1/27/2013 11:18:00 PM
61 Comments:
Naysayers may pick this letter apart and continue to grumble. I don't care, i appreciate it. I'm still not buying another share until i see real results, but even though this letter is loooooooong overdue, I'd still rather have this than nothing.
Doug really laid it on the line with his letter. I think there are a number of investors with the same opinions as the first poster, specifically on the need to see results.
Totally agree with both people above. We have heard talk and promises for 6+ years and absolutely nothing means anything until there is a signed deal with large quantities of plastic being shipped and money coming in. It is that simple.
Mr. Bathauer your words and monetizing plans are wonderful but if you do not turn in a real old fashioned sales contract within the next few (3-4) weeks then you are absolutely positively no different then Bill Robinson.
Every single long term shareholder is so angry and fed up from the mis-treatment, lies, and deceit from Integral that your words, though nice and hopeful, have as much meaning and use as last week's newspaper. We've been reading the same story over and over and over and over, year after year after year after year and it always ends the same way. With absolutely nothing. We cannot trust you or your words until you earn that trust. We cannot believe in what you have to say until you give us something real to believe.
We've already paid our money and for many of us, supported, with our money, your company for many years. We have so far been paid back with lies, outrageous salaries, no follow through, and in all honesty, a whole lot of bullshit.
Mr. Bathauer, the promise game is up. You need to deliver within the next 3-4 weeks.
It is interesting to me that the stock price has fallen below .30 given the statements that the new CEO made. Unless I am mistaken he essentially said signed agreements and revenues are going to happen "shortly". I understand the profit taking, but the profit takers run a substantial risk of really bad timing in my opinion. It wasn't that long ago this stock traded around $4 without any signed contracts/revenues. Just a little perspective.
I think Mr. Bathauer has been around long enough to understand what is expected of the company and fully understands the gravity of what he included in his letter.
You would think that he would understand but he has been a part of the old Integral regime for the last 3+ years and it "could be" bullshit as usual or he "could be" an honest leader with sound abilities and judgement. I believe the down turn in share price reflects the sentiments and trading habits of the shareholders during the last 3+ years when not one anticipated or projected deal or line of production ever went through. And, never an explanation as to what happened. So who is to say that Hanwha will not fall through and disappear like the 6 or 7 other deals over the past several years?? There is no trust with Integral. Buy a lot of shares at 20 cents, hope for some news and sell at 30 cents. That is all that this company has earned. Buy in the crapper and trade on the bullshit news. That's been the M.O. for the last several years until management proves we have a real company. The proof and responsibility is solely on Mr. Bathauer.
Its getting worse. They used to promise sales contracts with specific applications. Now they are promising promises of sales with words like "joint developments", "leveraging relationships" and undefined partnerships with Asian companies. And what passes for "progress"? A new team, a new strategy and new plans.
You can trade on the ripples but eventually they will drain this dry with their generous compensation packages. Then its lights out.
Doesn't it make sense if the old "strategy" didn't work that a new "strategy" should be deployed? Because Doug has been with the company he knows what strategy was previously implemented and he knows why it didn't work. I realize this isn't the most popular viewpoint with shareholders right now, but I'm leaning towards giving Doug a shot at turning the ship around, and I'm willing to give him more than three months.
Yes absolutely Doug deserves a break and some time to right the wrongs. This is why I keep stressing that Mr. Bathauer has got to deliver. Promises and strategies and leveraging relationships is wonderful however we need Hanwha to happen and not just fade away into nothing like so many others before it have.
In all honesty we cannot continue to wait for another 6 months to pass by with nothing to show. Frankly our cash is low and I am certainly not looking for more dilution to pay inflated salaries and huge car expenses. Mr Ince and Mr Robinson should be ashamed of themselves for extracting huge allowances for them selves as we are a tiny start-up trying to attain traction where every dollar is needed.
My feeling is that Mr. Bathauer needs to produce an income generating deal or contract within 3-4 weeks. Should nothing happen by the end of February, it will be time to bring in an experienced professional that has relationships and know how in launching a start-up.
What everyone wants to overlook is that there is no evidence that the product actually works. Or that if it somehow works, its so expensive or hard to process that it cannot be profitably commercialized. Instead, we are asked to believe that the wrong "strategy", wrong "plans" or wrong customer relationships are in play.
No. The handwriting is on the wall. The product is a dud. Aisenbrey saw that and bailed. And now Robinson's jumped ship. Both are still laughing on their way to the bank.
After all the time (10+ yrs), money ($35+ M) and exposure (300+ NDAs), its the only logical explanation for the complete lack of prototype products and all the secrecy.
EP works as I had it tested 3 years ago by 2 different labs. Both pellets and 4x4 blocks in 2 different formulations. I am surprised that none of you other shareholders requested product and had it tested.
We are really down to Mr. Bathauer getting a sales contract through the door. It's an extremely hard sell to launch a new material/technology into the market place. Always has been. The product side is tough but the material side is many times more difficult. Money, power, and relationships are the key. Luck and a break are essential.
The doubters that do not "think" the technology works should have completed their homework long ago. Sign an NDA, request samples and get an accredited testing lab to perform a variety of tests. Let them know what you wish to find out and they will suggest various tests such as magnetic, RF shielding, tensile strength, conductivity, etc. The stuff works but it is still to be proven if the new management works.
I agree with the last post. I do not doubt the capabilities of the product. A completely new item in the marketplace is not an easy sell. While trust and results are lacking, and have been lacking in a major way for awhile, this is still a non-proven start up company. Investing in this company is a risk and has been since day 1 as it is with any company like this. I'm in the red anyway and would lose if i sold at this point. I'll take the letter as a positive and expect Mr. Bathauer to deliver on his claims. I've been frustrated like anyone and may have bought in to another scam company. But i doubt it, and i still hold out hope for Electriplast.
I also agree that the product probably works as claimed. However, I disagree that it is "a completely new product in the marketplace". Just google "conductive plastic"; all kinds of alternatives pop up touting fillers from carbon to copper fibers to carbon nanotubes. And most of these products are being marketed by reputable, established companies.
So...why buy Electriplast? The published properties do not distinguish it from the competition and Integral is a small, broke startup that might not be there tomorrow.
Why risk your product and your reputation when there are many other alternatives? I don't think the company can answer those questions which could explain the lack of sales.
Next week it will be 4 weeks since we heard from Mr. Bathauer. So Mr. Bathauer, it is now time to deliver Hanwha or another sales contract. No more licensing / development deals that go nowhere. Time for real cash flow and sales. You spoke about Hanwha being in play so it is now time to deliver. Next Friday is March 1st. Should a deal not be announced, it would mean that you are no different then Bill Robinson and like Bill, it might be time to begin looking for a replacement for CEO. We cannot wait another 3,4,5 plus years of month after month for you to deliver. All the while diluting shares in the company and collecting an endless salary. Let's see what happens or doesn't happen by next Friday.
I know that we were all hoping for a positive change with our new CEO but as each day ticks by, Mr. Bathauer loses more and more credibility. He appears to be no different then Bill Robinson.
You gave Bill 15+ years -- don't you think Doug B deserves a little longer than 30 days?
These concerns and comments should be raised at the next shareholders' meeting.
Mr. Bathauer has been in direct power as CEO for 3 months not 30 days.
I wish we had the opportunity to raise these concerns at a shareholder meeting however there has never been a shareholder meeting since the inception of this company. The rules of the OTC do no mandate any open shareholder meetings. Everything is done secretly behind closed doors and frankly we do not have the luxury of months and months of time to devise a sales plan and obtain actual sales contracts. We could be on another endless circle.
In February 2012 we were publicly told an official sales and distribution deal with Hanwha would be completed by mid year. Mid year was June 2012. It is now March 2013. This Hanwha deal was supposed to be completed in 4 months. We are now closing month 12.
My patience is running very low.
And what if the Hanwha deal was "completed"? Its just another PLAN to sell and distribute...SOMEDAY. The delay is indicative of Hanwha's interest level. If this were half of what's its touted to be, they would have locked up ITKG quickly. Instead, they have discovered what the other signers of those 350 NDAs have discovered: there is nothing of value behind the curtain of secrecy.
On the other hand, this is not "another endless circle". The SEC disclosures show clearly that this is a downward spiral. Bankruptcy is not a matter of "if", its a matter of "when".
And you think belly-aching anonymously on a shareholder's personal blog is somehow going to move him to action? It won't, but I hope you at least feel better.
It is now time to produce Doug. You've been on the job for 4 months which is surely enough time to complete the final details of the year long Hanwha negotiations.
If you want to be shareholder friendly then you cannot be like Bill Robinson and continually push things forward and forward and forward never producing any results.
It is time to produce results now...
Yes. Completing the Hanwha negotiations would make all the difference. Then we would have plans and promises in Asia...to do something SOON (or SHORTLY). If they couldn't sell a pound in 10 years in all of North America, why do you think starting over in Asia will be any different? Same problems, different venue.
No. ITKG is serving its purpose beautifully: to transfer wealth from the pockets of shareholders to the pockets of the principles and their consultant friends.
And no amount of belly-aching anonymously on a shareholder's blog is going to stop this gravy train. These people have found a gold mine.
You are correct that up until 4 months ago this was a cash machine for Bill Robinson. There is now a new sheriff in town and I believe he will get things moving.
Hanwha does not necessarily mean we will be in Asia. The headquarters may be in Asia but one of their largest plastic manufacturing plants that happen to cater to the auto industry is located in the old US of A. Perhaps you should start connecting the dots, do a little research and keep an eye on the new sheriff in town.
no shares traded so far today, something must be a brewin'...
Anyone know what the reason for the delay with announcing the "February deal"?
Doug seems to be walking in his predecessor's shoes. Promising things he can't deliver. Time tables have always seemed to be a problem with Integral and with the new CEO it seems that it is just business as usual.
Many of us had real hope that things would finally be different with a new CEO. Not at all the case so far..
Come on Doug! There are still some of us rooting for you and would really like to see you succeed.
I agree with the last poster - rooting to succeed. I do not harp a blind optimism, but fully understand and feel the frustration. (i've been a shareholder for 7 years). That being said, some of the previous posts about screaming for a delivery in February is a bit impatient and unwarranted, specifically as it relates towards the new Doug. (towards Integral as a company - fully warranted) The letter mentioned no hard deadlines for February or March. The only time specific words were 'soon' and 'this year'. I, for one, am not holding my breath, but I will allow for more than 60 days for a new CEO to deliver on his claims for these deals being reached. Now, as for part about the shareholders being important and the need to be informed... Don't wait too much longer for your next correspondence, Doug.
-Also rooting for success.
Time to start selling.. Hanwha has had over a year to complete. Why does Doug need more time to bring Hanwha in? He has been the CEO for 4 months and has been a part of the company for 4 years and once again nothing is happening other then people have begun selling off their shares the last week. Doug is employing the exact strategy that he learned from Bill Robinson. Let the shareholders know that a deal is forthcoming soon and watch the share price trickle up 15 cents in 2-3 weeks and once 6 more weeks go by without anything, the share price begins to collapse. Bill Robinson did this successfully for 10+ years. Doug will let the shareholders know once again around mid April that Hanwha and a few other great opportunities are on the verge of materializing by the end of the 2nd quarter and then the share price will start to rise once again and the cycle continues over and over. I'm a long time share holder who is sick and tired of the same old bullsht games over and over and over. Doug's credibility is evaporating by the day. By the end of March we will be back at 21-23 cents a share if not lower.
Don't sell yet - wait for the next press release announcing a contract "shortly". It will be touted as a "success" and "progress" by all those who naively invested in this shiny bauble. But there will be no significant sales.
The fact remains that there are no successful prototype products despite hundreds of NDAs. Sure, there are "test plaques" that conduct electricity. But that doesn't prove that the product can be used profitably in an article of commerce. And, sadly, the market for test plaques seems quite small.
Investors are being led to believe that the problem is the wrong management (needed to dump Robinson) or the wrong corporate structure (needed to create Electriplast) or the wrong IP strategy (needed hire IP Capital Group). Its all been a smoke screen. What is not being discussed is that they do not have a commercially viable product here at all. Its little more than a laboratory curiosity.
But if you want to hope against all hope and "be patient", then you'd better buy more shares. If ITKG can't raise some serious cash shortly, the game will be over. Soon.
Long long time ITKG shareholder here. I truly felt this was going to take off. We get the same story over and over from them. Next week something is coming. Gee I hate to sound like the folks that bash this stock but at this point I am just about done and I am a large shareholder. keeping my eye on it but I have lost all trust in the entire company. I will be happy if it gets going for us all but I do not intend to stick with them at all. I know they can careless about the investors they have proven that by not just telling it like it is.
Yes they have proven time and time that they (the management) do not care about their shareholders. We are just about at the end on another quarter and still no Hanwha agreement. The share price is ticking downward and people are frustrated and selling off larger blocks of shares as each day passes. Doug Bathauer has not come through and it may just be time to begin petitioning the company to recruit an experienced CEO who has run a start up company. In my searches of Doug Bathauer, he comes up as never running or being involved in the management of any company. He is a stock broker and a financial planner. He has no experience in technology, manufacturing, sales, plastics, chemicals, physics, major industry, business management, science, engineering, etc. Nothing other then being a stock broker his entire professional career. He might be a great stock broker and financial planner however reading a balance sheet and profit & loss statements does not qualify you to be the CEO of a 12 year old start up conductive plastics company. I believe we are no better off and possibly worse off then the last CEO.
And don't forget the leader of the wholly owned sub Electriplast is a car salesman. Would these guys even recognize technical issues and quality science and engineering if they saw it? Could they solve a technical challenge? Apparently not. And the shareholders are left holding the bag.
And the Hanwha deal? That's a big vote of "No Confidence".
Collapse is imminent.
I have no problem with the car salesman as we are trying to "sell" EP to the "car" industry. Salesmen do not need to be engineers or physicists. They need to understand the market that they are trying to sell to and to hopefully have relationships and contacts within that market.
My concern is corporate leadership at the top.
What we have definitely learned is that "shortly" in Doug Bathauer speak is at least 9 1/2+ weeks... I guess we will find out if "shortly" really means 12 weeks, 20 weeks, 6 months, a year or never.
Possibly, because Integral is 12+ years old, "shortly", in the scheme of 12+ years, could mean a year to year and a half. Because after all, a year or so is a short time compared to 12 years.
Doug Bathauer is proving to be another failure as the CEO of Integral. Once again, as we approach mid April, there have been no shareholder updates and there have been no deals of any kind.
We need a new CEO that has experience with new technologies and materials who has solid relationships with various industries and knows how to introduce new materials into industry.
Doug seems to be a nice man but a financial planner with no experience in industry, business, or running a public start up company should absolutely not be running this company.
We may very well have replaced a terrible CEO with an even worse CEO.
A long time very discouraged shareholder.
We are not dealing with auto parts here. Or any other kind of part. We are dealing with a raw material. A replacement material being marketed as a replacement for metal. A lighter, cheaper, electrially conductive, raw material intended to replace metal. Electriplasts biggest barrier to the marketplace is that the manufacturers that are currently using metal are not convinced plastic is a viable alternative to current electrical metal components. 'Components' is the key. In most cases the cost and/or weight savings is less than 1% of the end item total. And the metal cost/weight has been the industry standard for many years. Cheap, is not always the bottom line when a companies name and reputation may be on the line.
Exactly. Electriplast is nothing more than "diluted metal" - metal fibers mixed into plastic. And the metallic properties are diluted as a result. On a volume basis, its not as good a conductor as metal. So its not a drop-in replacement raw material.
And there's no data that shows that its "cheaper" than metal. In fact, no one knows what it costs. All top secret.
Combine that with the fact that the company offering it could be blown away by a strong breeze, its unlikely that it will go anywhere.
The whole auto thing is a joke. Lighter, cheaper, components?
How many electriplast components would it take to save a lb.? 2 lbs.? What would the fuel savings be for that small a weight loss? Fuel prices fluctuate almost daily. How would the consumer ever be able to measure any price advantage?
And then you have cheaper. What could we be possibly be talking here? No comparative numbers have ever been released, that I know of. Copper, the most likely electrical metal component, is currently selling for $3.36 a lb. What kind of cost saving could a manufacturer expect from that? How much of that price would translate to profit for ITKG? After costs, wages, and overhead are removed. Even at 50,000 ppm max capacity, I`m guessing we`re talking chump change. But of course, none of us can know.....we`ve never seen the figures. A lot of manufacturers have. More than 350 NDA signators last I heard....6 years ago. But not a single one of them has purchased or contracted to purchase....Electriplast. Follow the money? But there isn`t any. Not in the last 6 years, not in the last 12 years.
Bottom line, all costs eventually get translated down to the consumer. The last person on the food chain. And his cost decision are usually are usually made in the thousands of dollars. If Electriplast were even 10% cheaper than copper, it would take 330 lbs. of it(per auto)to make a $1,000 difference in the end price. Follow the money.
Remember, the auto industry is not the only end market for Electriplast. There are several other applications that may prove to be very profitable for a company that is willing to use the new technology that is Electriplast. If you truly see no potential for ITKG then why are you still following the company? Why not move on to another investment and stop wasting your time since you've clearly made up your mind?
Yes. We know. Anything that could possibly conduct electricity is a potential market for EP. Wow. That is what the people that destroyed over $35M in shareholder value have been telling us for over a decade.
While the product probably "works", it is clearly deficient since no one is willing to commercialize anything, in any market. And that is not a management problem, as they would like you to believe. Or a sales problem. Or an IP problem. Or a BOD problem.
Its a product problem - that they apparently cannot solve.
Please explain why you still follow the company if you are so certain the product is faulty. The truth is you don't know what you don't know, and you can not say with 100% certainty that it does not work.
Duped. I think you've all been duped. Duped. Duped, Duped. Little, if any, information. Lots of talk. TONS of promises, and ZERO results. Take a minute and think about it. Has greed got your mind cluttered? For some here I can see it in their posts, and how they hang on year after year, only to complain because their GREED has taken over their thought processes. They say they have no bone to pick, except they have not become rich, and are too lazy or mentally challenged to invest elsewhere! Pathetic.
No. Its not greed; its pride and emotional attachment. They are unwilling to admit that they were duped. When the company folds, they will still be claiming "if only we had better management", "if only we had a different business plan", "if only..."
They were lured in by this shiny bauble and they took the bait - hook, line and sinker. They were led to believe that they would make a killing. (You could call this greed, but hey, we're all out here to make a buck.)
But then the pride kicked in. For over a decade, even with no evidence of success of any kind, they could not bring themselves to admit that they were duped. As tens of millions of $ gurgled down the drain, they continue to look for some shred of evidence that this thing will succeed against all odds - "you cannot say with 100% certainty that it does not work".
Well, can you say it doesn't work? Just like I can not say it does work - at least I can be objective about it and say that there is a possibility that it does not work. I'll even go a step further and say the odds have been increasingly in your favor that it does not work for the applications tested. The risk level on this company is through the roof, but you know what they say about risk...
It`s pretty clear that the marketplace doesn`t think it works....at least not in a 'for profit' environment. Build a better mousetrap and the world will beat a path to your door. 350 NDA signators. And that was 6 years ago. 50+ approved patents. And still not a single production contract. Applications are not the issue, Electriplast is being marketed as a raw material replacement for metal. The patented applications are mearly an excuse for another potential revenue stream by licensing. A revenue stream that isn`t working, and may in fact be the real problem. Do steel manufacturers charge licensing fees for components made from their steel? Do copper manufacturers charge licensing fees for components made from their copper? No, they make their profit by owning the mills that produce their product. Integral does not own Jasper Rubber. Jasper Rubber is NOT an income source for Integral....it is a cost. Copper spot price is $3.14 per pound and Aluminum is $0.83 per pound. There`s more to the puzzle than 'does it work?'.
It`s pretty clear that the marketplace doesn`t think it works....at least not in a 'for profit' environment. Build a better mousetrap and the world will beat a path to your door. 350 NDA signators. And that was 6 years ago. 50+ approved patents. And still not a single production contract. Applications are not the issue, Electriplast is being marketed as a raw material replacement for metal. The patented applications are mearly an excuse for another potential revenue stream by licensing. A revenue stream that isn`t working, and may in fact be the real problem. Do steel manufacturers charge licensing fees for components made from their steel? Do copper manufacturers charge licensing fees for components made from their copper? No, they make their profit by owning the mills that produce their product. Integral does not own Jasper Rubber. Jasper Rubber is NOT an income source for Integral....it is a cost. Copper spot price is $3.14 per pound and Aluminum is $0.83 per pound. There`s more to the puzzle than 'does it work?'.
It`s pretty clear that the marketplace doesn`t think it works....at least not in a 'for profit' environment. Build a better mousetrap and the world will beat a path to your door. 350 NDA signators. And that was 6 years ago. 50+ approved patents. And still not a single production contract. Applications are not the issue, Electriplast is being marketed as a raw material replacement for metal. The patented applications are mearly an excuse for another potential revenue stream by licensing. A revenue stream that isn`t working, and may in fact be the real problem. Do steel manufacturers charge licensing fees for components made from their steel? Do copper manufacturers charge licensing fees for components made from their copper? No, they make their profit by owning the mills that produce their product. Integral does not own Jasper Rubber. Jasper Rubber is NOT an income source for Integral....it is a cost. Copper spot price is $3.14 per pound and Aluminum is $0.83 per pound. There`s more to the puzzle than 'does it work?'.
It`s pretty clear that the marketplace doesn`t think it works....at least not in a 'for profit' environment. Build a better mousetrap and the world will beat a path to your door. 350 NDA signators. And that was 6 years ago. 50+ approved patents. And still not a single production contract. Applications are not the issue, Electriplast is being marketed as a raw material replacement for metal. The patented applications are mearly an excuse for another potential revenue stream by licensing. A revenue stream that isn`t working, and may in fact be the real problem. Do steel manufacturers charge licensing fees for components made from their steel? Do copper manufacturers charge licensing fees for components made from their copper? No, they make their profit by owning the mills that produce their product. Integral does not own Jasper Rubber. Jasper Rubber is NOT an income source for Integral....it is a cost. Copper spot price is $3.14 per pound and Aluminum is $0.83 per pound. There`s more to the puzzle than 'does it work?'.
According to the costs given in the last 4 quarterly reports, a 3 month average just to turn on the lights, would run about $2,500.00 an hour for Integral. That`s based on a 40 hour work week.
(If) Jasper Rubber could produce Electriplast at a price just 10% cheaper than spot copper ($2.83 per lb.), they would have to produce approx. 900 lbs. per hour, every hour just to pay Integrals hourly costs. Any profit of course would require an even higher production rate. And....all production would have to be contracted for and sold immediately or it all falls down and you end up with....Oops!!!! An inventory problem!!!!
Remember the 'If' that began the last paragraph? Jaspers costs include the cost of the plastic base material, the whatever metal components, the operating cost for the press(s), the salary of the operator, and any various overhead, insurance, etc. costs. And , of course, Jasper would expect a profit of some kind. Can they do that for $2.83 per lb.? Only Jasper knows. Bear in mind that these costs are unique to the manufacture of Electriplast....whether or not it ever gets sold. Without a contract to purchase, it all becomes a house of cards.
Electriplast works, and quite well.
And while our publicized relationships have not proven greatly fruitful financially thus far... Fisker, Think Wireless and Volta Volaré served their more important purpose which was early stage "proof of concept".
That much needed public product validation led to discussions with several additional much larger concerns that are ongoing and in late stage as you read this. Successful contracts with any of these entities will transform Integral instantly. That friend, is when you will see "greed" kick in. And while everyone is past ready for these potential events to occur... the naysayers among us can only attempt to cast doubt by disparaging Fisker (in which I own no stock), and Integral from an historical context... as they have no knowledge of current negotiations. I allready know what has happened in the past. What I'm interested in is the future... and from my due diligence, I like my odds. My advice is to stay the course, but do as you will.
Show me the money. That`s the only real proof of concept.
There is a great difference between "proof of concept" and "proof of discussion". To date, we have only the latter: assertions that people have had some discussions (and signed conveniently non-binding LOIs). The complete lack of working prototypes or pre-commercial parts (let alone sales) demonstrates that the product's a dud.
The product does have one proven application though: its a shiny lure that has captured some $35M in investment capital from folks that don't know an ohm from an amp or an extruder from an injection molder. It sparks the naive imagination of the Popular Science crowd who are not troubled by scientific realities and who see $100k electric cars and battery powered aircraft just around the corner. As such, it has opened many a wallet to enrich the principles of the company - geniuses in their own right. I have to give them that.
What's this "we" sheeat? Forgive me for say'n so, but as insightful as you may be in some regards, at the same time you kinda sound like one of them Popular Science boys yourself. I could be wrong. If "proof of discussion" is all you are operating on... that explains alot. I can assure you the product is not a dud, but might I say it sounds as though your due dilligence may be. And if you should want to talk extruders, I believe I can can keep up.
But I will have to agree with you on your last point... the Electriplast proposition sho has all the right ingredients to entice investment. It is a thing of beauty. But all geniuses have their failings, whether they are observed or not. Opening wallets is one thing. Commercializing a new product is another. Hopefully, pretty soon, our principals will provide us "the ladder".
As an impartial observer, who knows a bit about conductive compounds, I would ask the following fundamental question. What is different about ElectriPlast's technology?
The idea of adding conductive additives (there's a wide range to choose from) to thermoplastics is well established and there are many companies (such as Premix, PolyOne and RTP) that have proven expertise in formulating and actually producing such materials.
Electrically-conductive compounds are already widely used in a variety of applications, but ElectriPlast has so far failed to convince the market that its technology offers real advantages over existing offerings (Fiskar and Volta don't count - they need to convince Ford or Boeing).
Furthermore, its patent portfolio doesn't appear to have hindered or influenced the development of the market by its competitors, so I would question its value.
Agreed. So far, there has been no data showing EP's superiority to the incumbent materials offered by the companies mentioned above. Nor does the company offer any insight on their competition (but I suppose if you're not selling anything, you don't have any competition...)
And considering these alternatives, why would anyone want to commercialize a product based on Integral/Electriplast, a nearly bankrupt fledgling company that might not be in existence much longer?
Its a death spiral: the longer this thing goes without a commercialization, the less credibility it has. And it has already been going a long, long time.
A few thoughts on the topic of bankruptcy. As we all know in bankruptcy assets including intangible assets such as patents can be picked up for pennies on the dollar. One strategy that could be in play by a potential customer is to wait it out and see if bankruptcy does occur, and rather than paying millions in royalties they could acquire the IP themselves. It’s a competitive environment out there and without other companies showing interest in Electriplast what is the real motivation of any other company to sign a licensing agreement? I would say none and if I were them I would wait it out as well. The one thing that does keep me around (as an outsider with little to no knowledge of what is happening behind closed doors) is the presence of a certain individual who has invested a significant amount and not jumped ship. This individual is in a position to be in the “know” (for the record this is public information that can be looked up). At the end of the day this company would not be here today without some deep pockets to keep it breathing. As someone here likes to say “follow the money”.
You describe yourself as merely an impartial observer who "knows a bit" about conductive compounds...
Since 1998, ipCapital Group has worked with over 10% of the Fortune 500, and has completed over 700 Intellectual Property engagements in the industries of Aerospace/Defense Biotechnology Chemicals Consumer Products Electronics/Electrical Energy Medical Devices Semiconductors Telecommunications and Transportation.
Bruce Story of ipCapital Group, who has many years of IP strategy and licensing experience and is the former Senior Director, Intellectual Capital Management for the Global Plastics Business of The Dow Chemical Company says... "Not only is the ElectriPlast technology the best performing conductive plastic I have seen, but the patent portfolio protecting it is based on a clearly thought-out IP strategy."
Believe I'll have to go with the professional's opinion on ITKG's Intellectual Property and reject our "impartial" amateur basher who has, in his own words, "little or no knowledge".
If you took my post as "bashing" you couldn't be more wrong my friend. We're on the same side - I have a significant amount of skin in the game that will either be very rewarding or I will lose it all, but I wont' be selling as I believe we have a compelling story here.
The fact is, I don't have knowledge of what is happening behind closed doors, do you? I was simply pointing out one potential scenario that may be at play and one which could cause delay to bringing Electriplast to market. Being impartial is the key to success in my business so I will take that as a compliment. I actually have great respect for Bruce Story and one day I hope that we will hear that he was a key contributor to Electriplast's success.
Excuse me Anonymous... must be the matrix.
Its great to have another assertion from a paid consultant.
Sadly, Mr Story overlooked revealing how many commercial parts, or even prototypes, he has designed, manufactured, tested and sold. Since he was a Senior Director in the Global Thermoplastics business at Dow, perhaps he could enlighten us as to why a pound has not been sold? Or did he just peruse the Electriplast data sheets, as anyone can?
He has assured us that there is a "clearly thought-out IP strategy". Good to know.
And we know there is a top-notch sales team in place allowing the company to proclaim that they are the "market leader" (with no sales).
And those pesky Bills are finally gone, who were messing up everything. (New sheriff in town!)
And a crack engineering team has been working with clients for several years now. (They're not too talkative but, hey, they're busy.)
And the business strategy is superb with the Electriplast subsidiary - crafted by a world-class BOD.
And the company has powerful product development connections with ThinkWireless, Volare and that sleeping Asian giant Hanwha.
What's left? One minor detail: no customers. The product is unfit for use in any article of commerce.
Prepare yourself and just pay attention. This is going to be "disruptive" beyond description. You'll know what to do...
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