Last year, I reported that Sonomax had invented a self fitting earpiece that was a game changer in the earphone space and beyond in terms of product comfort, performance, and financial opportunity. In the process, this technology would remove the significant historical impediment to sales for Sonomax, the tedious fitting process. Under our plan last year, Sonomax would license this universal fitting platform to well resourced original equipment manufacturers ("OEMs") who, in turn, would integrate the SonoFit™ technology into their product offerings. . Sonomax would generate royalty revenue from these licenses.
Despite the recognized disruptiveness of our technology, financial opportunity, and enthusiasm of all concerned, the end result of our discussions with OEMs and high volume resellers was the same. They loved the award caliber technology but needed to see it incorporated into a finished product that was sold through to the end user before they would conclude an agreement. Basically, we had to take most of the risk out of the technology before they would assume the commercial roll out risk.
Based on this disappointing reality, Sonomax was forced to change gears and push towards the commercialization of a product line and the establishment of a retail introduction ( proof of concept) that then could be handed off to selected high volume resellers. Proving the product here would also demonstrate to OEMs that the technology was robust and commercially viable.
Commercialization is an exercise that has a lot of issues to master, from production to branding to logistics. Through the use of external consultants (Levin Consulting) and collaboration partners, we believe that success has been achieved. Some highlights of this year-long process include: branding a product line, developing cost effective and quality outsourced production in China, and establishing a proof of concept launch in the retail space.
The culmination of this effort is about to bear fruit: Sonomax will soon begin to sell a well branded sculpted eers™ product line (PCS 100 and PCS 200) directly to approximately 50 retail outlets, including Airport Wireless. This retail launch could very well grow into hundreds if not thousands of retailers. With regards to making the product in a high capacity, high quality manner, our Chinese manufacturing capability is to begin delivering high grade, cost effective parts early this summer.
In short, we have a great finished product line which extensive market research suggests will be a retail hit, supported by a supply chain that is ready to support success.
With a lot of effort behind us and an earphone market which is experiencing explosive growth, we are excited about the year ahead: anticipated commercial success in the consumer retail, industrial, military and health business verticals. I therefore encourage
you to come out to our shareholders meeting on June 21st in Montreal to see our entire product line and meet some of our license and distribution partners.