Meetings Yield Positive Results for Flexpoint
CEO Clark Mower provided the following updates:
HTK Safety Application – Refuse Collection Vehicles – Our partner on this application, HTK, has been working to implement this system with the largest refuse remediation company in the world, and is now in talks with the second largest. Adding to the momentum, it is our understanding that insurance carriers are willing to offer a 10% reduction in the cost of their liability coverage if they install our system. They have had similar discussions with other carriers. This should allow the system to essentially pay for itself in first year savings and have the benefit of additional savings in the coming years. They are close to completion of the field testing with the first company and expect production contracts within the next 30-60 days.
From meetings with our partner in the trucking industry, two minor remaining issues to be addressed were identified. The issues relate to positioning and design considerations and not the Bend Sensor’s functionality. There are a variety of solutions available for these needs and we estimate Flexpoint expects to satisfactorily address these issues within approximately 30-45 days.
Senior executives from the automotive company we met with have identified a production platform for our Bend Sensor® technology that is expected to include 400,000 units domestically and approximately 1 million units worldwide. They have further identified three additional platforms for our technology and expressed interest in maximizing its potential. Once Flexpoint’s sensor is successful with the first platform, it will likely advance to these additional platforms. The senior executives we met with are now planning high level meetings to expedite the approval process for these projects.
In short, we believe that we will bring to successful conclusion the finalization of multiple production contracts during the third quarter 2012. The initiation of these orders will only be the beginning of our ability to expand our product lines and platforms with the various automotive and trucking entities. We now have a clear path for completing the various customizations and commencing manufacturing in the near term. We thank all of our investors and partners for their patience and support as we continue to make progress on these fronts.
Flexpoint Sensor Systems, Inc., (FLXT), is a leading supplier of thin film sensing technology to many industries, including automotive, medical, industrial controls, and consumer products.
This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are “forward-looking statements” and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company’s actual results could differ materially from expected results.
Contact: Flexpoint Sensor Systems Clark Mower President 801-568-5111 Brokers and Analysts: Chesapeake Group 410-825-3930
SOURCE Flexpoint Sensor Systems, Inc.