InfoSpi, Inc. (OTCQB: ISPI) operates within the energy saving lighting industry through its wholly owned subsidiary NexPhase Lighting, Inc.
The Company is a designer and developer of proprietary high quality LED (light-emitting diode) lighting fixtures and control systems for commercial applications. It believes its products will be the lowest cost, highest efficacy fixtures available in the LED Lighting Industry. ISPI is involved in the marketing and selling of NexPhase’s products.
Commercial Applications Growth Area
ISPI is focused on the next big LED lighting growth area: commercial applications. LED lighting is anticipated to reach an inflection point in the next five year as solid state lighting costs come down and performance increases, LEDs will become a practical option for an increasing number of commercial applications. LED lighting for retail and office and professional and institutional buildings is anticipated to be the next big growth area.
Market for Commercial LED Lighting
Lighting accounts for about 17.5% of global electricity use and, within the United States, the majority of lighting energy is consumed in commercial buildings. Recent innovations in lighting technologies, particularly the development of solid state lighting using light emitting diodes (LEDs), hold significant long-term potential for energy savings in the commercial building sector. LED lighting will become an increasingly important segment of the market, and by 2020 it will achieve a 46% penetration of the $4.4 billion U.S. market for lamps in the commercial, industrial, and outdoor stationary sectors.
All NexPhase lighting products incorporate its proprietary “NexSense Technology(TM),” which provides benefits well beyond the generally acknowledged advantages of all other LED lighting fixtures. NexSense control systems use a unique, “patent pending’ wireless protocol, which provides for an unsurpassed reduction in architecture and infrastructure installation cost in commercial applications, as well as significantly reduced maintenance and ongoing operation costs.
NexPhase is in the business of designing, developing, manufacturing and marketing a high quality and high efficiency full line of LED intelligent lighting fixtures and control systems for commercial applications and projects involving both new construction and retrofits (the “LED Lighting Fixtures”). In its planned manufacturing, NexPhase will use the highest quality products in the manufacture of its LED Lighting Fixtures in order to provide its customers with an approximate six-year or 50,000 hour warranty on its fixtures.
It will utilize Cree and other leading manufacturer LEDs and photo-metrics and thermal management in the manufacture of all LED Lighting Fixtures, and management believes that the resultant NexPhase LED Lighting Fixtures produced will be of the highest quality and highest reliability of any lighting products. The LED Lighting Fixtures being developed are as follows:
- Downlight troffer;
- Reflective troffer, which adds an architectural flair to any space;
- High-bay fixtures, which provide a 50-70% energy savings over metal halide and high pressure sodium high bays;
- Low-bay and parking garage fixtures, which provide a 50-70% savings over metal halide and high pressure sodium high bays;
- MR-16 lamps with approximate 90% energy savings over conventional MR-16 with significantly less heat; and (vi) PAR 38 lamps with approximately 90% energy savings over conventional MR-16 with significantly less heat.
The LED Lighting Fixtures will be able to be controlled through a variety of means. Permissions and the types of controls authorized are assigned during set-up. Fixtures or groups of fixtures can be controlled via a hand-held remote control, through any smart phone (i.e., iPhone) or via the computer. Moreover, the LED Lighting Fixtures are designed to be intelligent. They incorporate a MESH networking technology which allows the fixtures to communicate with each other wirelessly. The set-up and management of the LED Lighting Fixtures allows for the combining of multiple fixtures into a given group, that is, specific offices, hallways, stairwells or conference rooms.
NexSense Technology – Cutting Edge
NexPhase also has a patent pending “NexSense” technology that provides customers with an additional edge in lighting management and a return on investment. The LED Lighting Fixtures incorporate advanced sensory features that expand a customer’s energy saving beyond just the use of energy saving LEDs as follows:
Proximity Sensing. The most energy saving light fixture available is one that is not on. Therefore, building on this premise, the NexPhase Proximity Sensor monitors movement within a given space and either dims or shuts the lights off if no movement has been sensed within a given period of time (configurable by the user).
Ambient Light Sensing. This sensor takes advantage of the sun’s free light energy. Once the occupant of an office sets the light level they like within their space, this sensor monitors the light level throughout the day. If more light comes into the office as the sun rises, the sending system reduces the amount of light being given off by the fixture to ensure the light level within the space remains the same. The reverse is also true. If storm clouds move in and block the sunlight that was previously coming into the space, the sensing system increases the amount of light from the fixture up to the maximum output.
Management believes that its LED Lighting Fixtures will provide further additional benefits:
- Higher quality lighting as compared to standard lighting systems
- Reduced heat generation resulting in lower HVAC costs in warm environments
- Elimination of the release of mercury and other harmful chemicals into landfills at the end of the fixtures life cycle
- Less energy consumption to run the fixtures, which results in less green house gases released into the atmosphere
- Lower maintenance costs for business owners associated with the replacement of standard lamps and tubes based upon the LED Lighting Fixtures lifespan of 50,000 to 60,000 hours
- Easy installation and individual fixture programmability
- Instant “on”
- Vibration and shock resistant
Future Use of LED Lighting in Hospitals
LED lighting is the future of lighting for hospitals in an economic sense from the energy cost savings, lifespan and maintenance perspectives, but it also can reduce medical errors, increase staff effectiveness and support more positive patient outcomes.
Private financing can pay for the total cost out of a percentage of energy savings with little or no upfront costs. Additionally, LED systems produce less heat, which helps reduce HVAC costs.
Moreover, the expansion of utility and governmental incentives can further reduce the cost barriers to its implementation. The article points out that among hospital administrators, it is generally acknowledged that as LED technology evolves and pricing drops, hospitals will move toward LED lighting.
Branding Agreement with Cree, Inc.
NexPhase Lighting, Inc., (“NexPhase”), a designer, developer and manufacturer of high efficiency, high quality LED intelligent lighting fixtures, has signed an Ingredient Branding and Trademark License Agreement with Cree, Inc.
Cree, Inc. (www.cree.com), headquartered in Durham, North Carolina, is a market-leading innovator of lighting-class LEDs. Cree will be providing their MX-6 LEDs for use in the NexPhase troffer. The MX-6 provides better color consistency and higher reliability than incumbent solutions. The MX-6 delivers higher lumen output without having to compromise between light output and efficacy. For more information about the MX-6 you can find Cree’s data sheet for this product here. Going forward, this branding agreement allows NexPhase to display the Cree logo on its website, marketing materials and packaging.
Energy and Cost Saving Study
NexPhase Lighting, Inc. has been selected by a large south Florida metropolitan public transit system (“PTS”) for the purposes of completing an economic study on the energy and cost savings to be achieved by NexPhase’s proprietary lighting fixtures in some of their most highly trafficked facilities.
The Company’s 50 Watt LED down lighting retrofit fixture was selected for this study. It is anticipated that this selection and the already achieved preliminary installation validates the Company’s reputation in their prime market: large commercial and municipal customers.
The implication being selected for the study is the awarding to us of a contract for the installation of over 10,000 lighting fixtures over time. The Company places a value on this opportunity at approximately $3.75 M USD. The changeover from conventional lighting to our LED NexPhase fixtures will save PTS over $90,000 per month in electricity and maintenance costs.
The Company anticipates the first stage of this large scale multi-year implementation to be issued later in 2011.
NexPhase Intellectual Property
The preliminary information on an independent appraisal report that it commissioned prior to its acquisition of NexPhase Lighting, Inc., on the value of the new, patent pending NexPhase intellectual property has been obtained.
In total, the report estimates that the value of the initial patent filed by NexPhase at $17.2 million. It has been noted that this value applies to only a few key market applications of the NexPhase patent, leaving aside other market applications to pursue.
Pellegrino and Associates is a world-class firm that specializes in early stage, intellectual property, as well as software valuations for clients large and small around the world.
This patent in particular is anticipated to be the springboard of NexPhase’s growth. The Company will continue to release summary information on the report’s findings and projections about this patentalong with perceptions on what this report’s interpretation will mean to the Company’s planning process and revenue generation potential.
Market for Commercial LED Lighting
Lighting accounts for about 17.5% of global electricity use and, within the United States, the majority of lighting energy is consumed in commercial buildings. Recent innovations in lighting technologies, particularly the development of solid state lighting using light emitting diodes (LEDs), hold significant long-term potential for energy savings in the commercial building sector. According to a new report from Pike Research, LED lighting will become an increasingly important segment of the market, and by 2020 it will achieve a 46% penetration of the $4.4 billion U.S. market for lamps in the commercial, industrial, and outdoor stationary sectors.
“LED lighting will reach an inflection point in the next five years,” says managing director Clint Wheelock. “As solid state lighting costs come down and performance increases, LEDs will become a practical option for an increasing number of commercial applications.” Wheelock adds that LEDs are already widely used in traffic signals and exit sign lighting, and Pike Research anticipates that those markets will become saturated within the next few years. The outdoor stationary sector will be the next growth area for LED lighting, followed by retail and office/professional and institutional buildings.
Dror Svorai – President
Phone (305) 932-9795
NexPhase Lighting, Inc.
Safe Harbor Statement: This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will likely,” “should,” “could,” “would,” “may” or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company’s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company’s limited operating history, the limited financial resources, domestic or global economic conditions — activities of competitors and the presence of new or additional competition and conditions of equity markets.
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