Variable Speed Seat Switch
The variable speed switch will control the position of an automobile seat. The Company has completed development of the design and has filed for patents on the seat switch and is discussing the project with several Tier 1 suppliers and manufacturers who have expressed interest in the concept. The expected volume for the product is several million units over a three-year period of time and is expected to grow as acceptance of the product occurs.
Seat Belt Reminders (SBRs)
The Company and Auto Electronic Corporation (AEC) of Korea are working under the joint development agreement for SBRs for use in the Asian automobile markets. Design development and testing with other major automotive manufacturers and suppliers is continuing simultaneously. Worldwide sales for automobiles are expected to be approximately 50 million units in 2009. Currently each automobile has at least two SBRs in the front seat and in Europe they are expected to require one SBR-type unit per seat (both front and rear). The market size for this sensor, just in new vehicles, is in excess of $100 million annually and could double in size should new safety regulations be approved requiring them in the rear seat as well.
Other Automotive Applications
The company is engaged in advanced testing and prototype production of a new automotive product with a multibillion-dollar Tier 1 automotive supplier. This supplier currently does business in over 100 countries around the world. This product will potentially replace a legacy system currently in use and could enhance its reliability and efficiency. As the product is commercialized we expect it to significantly enhance future revenue streams. Flexpoint also has additional products in various stages of development including Pedestrian Impact Detection Devices, climate and audio controls and other products that we are not able to disclose at this time.
The company believes that once these and other automotive products are in full production revenues could be as high as $15 to $20 million annually, and as new products are developed revenues could increase substantially. The company’s current production line capacity is about 135,000 sensors daily or about 35 million annually, enough to meet the anticipated demand until at least the end of 2010.
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.
Flexpoint Sensor Systems
Tom Strong, CFO, 801-568-5111