We want to become the leading technology innovator in the field of low-cost housing for humanitarian, social, commercial and pastoral purposes.
The planned investment of £150,000 will take the company through to full commercialisation. Funds will be used to expand operations in the areas of; new product development, increasing our IP portfolio and technical support for licensees. We will appoint a CTO to ensure we meet our target of one innovation per quarter. We will also strengthen the sales activity of existing licensees with the appointment of country agents. New territories-particularly in the SAARC region where the company is currently focused, will be targeted together with direct leads provided by the Commonwealth.
We recognise that with such a large business opportunity we would need a much larger organisation to fully exploit the potential. We, therefore, intend to prove our outsourced manufacture model in the medium term and seek a trade exit or purchase by an Investment House.
We operate an out-sourced manufacturing license model where we find appropriate manufacturing businesses in our target territories and enter into a License agreement. We charge an upfront payment for the License to cover on-boarding costs and en-courage the Licensee to start selling as soon as possible. We ensure that the economic stimulus generated by the manufacture and deployment of our HuSh products is retained in-country for the benefit of the displaced community. Our royalties are in a range that does not act as a dis-incentive for the smooth operation of the license agreement or the maximum production of HuSh units.
The development of the local market is the responsibility of the Licensees who are proving to be very successful at identifying new market opportunities; India, Forestry Commission and Religious Pilgrims, Pakistan, Reconstruction and Tourism. Extremis is working alongside our Pakistan Licensee to demonstrate HuSh to the UNHCR in Pakistan.
Under our licensing model we can ensure overheads remain low as our royalty income grows rapidly. By way of example as our in-come increases by more than five-fold be-tween this year and 2018, our overheads are expected to grow by just over two-fold. This disproportionate growth between income and expenses is the reason that we predict such rapid and large increases in profitability.
The Ikea Trust has developed a flat-packed shelter, made of an aluminium frame and plastic panels which incorporates solar panels to provide power to the shelter from the outset. It has clearly exploited Ikea’s expertise in flat-packing furniture. However, the current shelter has 1,091 parts making it relatively simple to lose critical parts and also increasing complexity of assembly. Despite this, it has been deployed in northern Syria and other countries on a trial basis.
Our experience of growing sales with India and Pakistan is that post signing there is a lead time as our Licensees develop their lo-cal supply chain and reach out to their early customers. We are constantly analyzing this process to help their sales effort and identify ways to improve our own on-boarding pro-cess for new Licensees. We assign rights to the whole suite of IP, design rights and trademarks to make it complex for any competitor to untangle the position and attempt to infringe those rights. We retain all rights to innovations created inconjunction with licensees.
We believe that the best method of supporting low-income communities within the developing world is through ‘technology transfer’ using British technology to create employment and economic activity. Our technology is admirably suited to conditions in the developing world as our product is primarily constructed from wood and the engineering requirements can be taught to skilled artisans. We have already created employment in India through our Licensee manning their factories to manufacture the HuSh product for the Indian market. At the Global level, we have reduced the environmental footprint to a minimum by the insistence on the use of sustainable materials, locally sourced, and local supply which reduces the carbon footprint of the supply chain.