The
Exclusive US Patents.
Sense
has acquired eight exclusive Patent Licenses based on MEMS technology.
These eight Patent Licenses are exclusive for chemical sensing for
all security applications and were acquired on a royalty-based structure
and other considerations, from UT-Battelle, LLC which manages Oak
Ridge National Laboratory for the United States Department of Energy.
These eight US Patent Licenses are:
• Microbar Sensor. US Patent #5,445,008.
• Microcantilever Sensor. US Patent #5,719,324.
• Microcantilever Detector for Explosives. US Patent #5,918,263.
• Method and Apparatus for Self-Calibration of Capacitive Sensors,
US Patent #6,545.495.
• A Capacitive Readout Multi-Element Sensor Array with Common-Mode
Cancellation. US Patent #6,167,748.
• Three other US Patents have been applied for by ORNL and are
currently pending.
In addition to the above Patents, Sense is in the process of applying
for three additional and very significant US Patents. These Patent
Applications are related to the real-world implementation of this
new technology. These additional patents will significantly enhance
the market strength of Sense’s proprietary technology.
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The Technology Development Program.
During
the past two years, scientists at Oak Ridge National Laboratory
(ORNL) have made remarkable progress towards the realization of
a lifelong dream. This scientific dream has been the rapid and accurate
detection and identification of chemical substances utilizing sensor
chips very similar to mass-produced electronic integrated circuits.
These new chips are called Micro Electromechanical Sensors (MEMS).
Last
year, ORNL won the very prestigious R&D100 Product of the Year
Award for a handheld explosives detector using MEMS technology.
Due to these very significant scientific advances, Sense Technologies (Sense) and ORNL have jointly decided to undertake a final
effort towards the development of a commercial explosives sensor
chip with unique high performance capabilities. Towards this end,
Sense has entered into a technology development agreement with ORNL.
Under this agreement, Sense will provide ORNL with the required
funding levels necessary to complete the development of this explosives
sensor chip within the next 18 to 24 months.
Initially,
this MEMS sensor chip will be capable of quickly and accurately
detecting most explosives used by terrorists. Additionally, system
modularity will greatly facilitate upgrading fielded systems as
new detection capabilities are continuously expanded.
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The Product Development Program.
Sense
has also begun an intensive internal effort to develop a high performance
hand-held explosives detector system utilizing this sensor chip.
Immediately thereafter, Sense intends to apply to the pertinent
regulatory agencies for the required approvals. Manufacturing and
marketing operations for this product are tentatively scheduled
to begin during the second half of 2007.
In
the first quarter of 2007, Sense also plans to begin an internal
effort to develop a very comprehensive and sophisticated cargo container
security monitoring system for which Sense is in the process of
applying for a US Patent. This effort will draw on the experience
gained during the previous development effort.
The
fundamental architectural criteria will be primarily focused around
system modularity and field-upgrade capabilities, both designed
to extend the technical longevity of fielded systems. These two
fundamental capabilities protect the initial acquisition investment
and thus provide an additional level of buyer comfort.
The Potential Customers.
The
advent of a low cost, high-performance hand-held explosives detector,
opens a whole spectrum of marketing possibilities. Some of the more
obvious clients are national security agencies, customs, law enforcement
agencies, fire departments, armed forces, private security firms
and humanitarian organizations. The following is a partial list
of the more obvious facilities, where such a product would have
a very significant beneficial impact on existing security levels:
Transportation
Infrastructure:
Airport facilities, subway stations, railroad stations, passenger
bus terminals, maritime ports and marinas, cruise ships and ferries,
commercial cargo and mail transportation companies, car and truck
rental facilities (Inspections on vehicle return).
Communications
Infrastructure:
Telephone switching centers, television and radio facilities, microwave
and satellite communications centers, main Internet service providers,
emergency call centers (911) and emergency alarm monitoring centers.
Energy
Infrastructure:
Conventional and nuclear power stations, fuel storage depots and
pipeline pump stations.
Government
Facilities:
Customs and border control checkpoints, diplomatic facilities and
permanent international trade missions, courts of law, post offices
and other government facilities.
Social
Services:
Universities, schools, hospitals, landmarks, monuments, libraries
and museums.
Commercial
Enterprises:
Public buildings, trade shows, art shows, expositions, concerts,
sporting events, industrial facilities, commercial facilities and
public storage facilities.
Humanitarian
Institutions:
Landmine removal and unexploded ordnance removal.
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Product Distribution and Training.
Sense
plans to create a national and international distribution networks
consisting of reputable and well-established representatives and
distributors of brand-name security products. These organizations
will also be responsible for extensive operator training and responsive
technical field support.
Several
months prior to the commencement of manufacturing operations, Sense
plans to establish a technical training facility in South Florida.
This facility will ensure the appropriate level of technical expertise
expected of all the personnel involved in sales, security management,
security screening and field support.
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The US National Market.
Actual
security market projections are very difficult to ascertain, especially
in the present security conscious environment. Conservatively, Sense
believes that for a high performance, hand-held explosives detector
with a price of under $2,000 there is an initial market of 1000
test units for the first year, followed by 10,000 units for the
second year and 30,000 units for the third year.
Presently,
there does not seem to be on the horizon, any other explosives detector
technology with a price/performance ratio comparable to that of
MEMS. Therefore, Sense believes that it can quickly achieve a dominant
market position as a manufacturer of high performance explosives
detectors.
Sense’s
marketing strategy includes the generation of recurring revenues
from the sales of new and refurbished replacement sensor cartridges,
sensor cartridge upgrades, maintenance contracts, software update
programs and technical training.
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The International Markets.
Sense
believes that the export market represents a market potential as
large as that of the US. To satisfy this export market, Sense plans
to create a distribution network consisting of reputable and well-established
representatives and distributors of brand-name security products.
These organizations will also be responsible for extensive operator
training and responsive technical field support. Sense will sequentially
address the US market, followed by the European, the Middle Eastern
and Latin American markets.
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Product Development and Manufacturing
Capabilities.
Sense
has brought together a very strong professional product development
team consisting of project managers, electronic hardware engineers,
software engineers, mechanical engineers, industrial engineers and
technical writers. Sense has also created a Scientific Advisory
Board that directs and oversees all of the Company’s research
and development activities. In addition, if needs arise, Sense also
has access to significant professional resources from local universities
and engineering subcontractors.
Presently, Sense prefers to concentrate all of its resources on
product development, marketing and technical field support. Therefore,
highly qualified and experienced local contract manufacturers will
perform most product manufacturing.
Sense
has all of the required resources necessary to fully cooperate in
all respects with ORNL in the development of this technology. Furthermore,
Sense also has all of the required resources necessary to develop,
manufacture and market all applications of this technology.
Sense
intends to establish itself as a broadly recognized manufacturer
of superbly crafted instruments designed for rugged real-world field
applications. Towards this end, rigid emphasis will be placed on
engineering excellence, strict quality control and professionally
responsive field support.
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The Competition.
A
number of companies are manufacturing and marketing hand-held explosives
detectors. These products operate under various scientific principles
completely unrelated to Sense’s proprietary MEMS technology.
All of these competing detectors are much larger, heavier and significantly
costlier than Sense’s MEMS detector. Sense believes that its
proprietary detector technology is significantly superior to all
other existing technologies.
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Oak Ridge National Laboratory.
Oak
Ride National Laboratory (ORNL) is the US Department of Energy’s
largest science and energy laboratory. Managed since April 2000
by a partnership of the University of Tennessee and Battelle. ORNL
was established in 1943 as a part of the secret Manhattan Project
to pioneer a method for producing and separating plutonium.
During
the 1950’s and 1960’s, ORNL was an international center
for the study of nuclear energy and related research in the physical
and life sciences. The creation of the US Department of Energy in
the 1970’s, led to an expansion of ORNL’s research program
into areas of energy production, transmission and conservation.
By the turn of the century, the laboratory supported the nation
with a peacetime mission that was just as important, but very different
from the days of the Manhattan Project.
ORNL
has a staff of more than 3,800 and approximately 3,000 guest researchers
who spend two weeks or longer each year at Oak Ridge. ORNL funding
for FY2005 exceeds $1 billion. UT-Batelle has provided more than
$6 million in support of math and science education, economic development
and other projects in the greater Oak Ridge region.
ORNL
is an international leader in a range of scientific areas that support
the Department of Energy’s mission in the Office of Science.
The laboratory’s six major scientific competencies include
neutron science, energy, high performance computing, complex biological
systems, advanced materials and national security.
(Reprinted with permission from UT-Battelle, LLC)
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Disclaimer
Statement.
Due
to the early development stage of this project and the numerous
unavoidable inherent uncertainties still present, this introduction
should be considered as a tentative, forward-looking projection
and therefore subject to change at any time.
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