General discussion, page-508

THE ANALYTICS AND MESSAGING GAP Over the last six months, it has become clear that a key to Alexium securing significant additional market share is not just having the best value proposition in the market but quantifying and messaging that value proposition well. In the market today, there is one key headwind limiting the rate of PCM adoption in the bedding marketplace as well as brands switching brands of PCM once adopted. This headwind is poor/absent analytical data to validate and compare cooling chemistries across competitors, an issue Alexium is strategically poised to overcome. While there have been a few qualitative or aesthetic methods to assess the coolness of treated fabric, there is no quantitative technique that provides reliable measure of PCM chemistry on material or, more importantly, the effectiveness of a PCM chemistry over time. The effect of this lack of metrics and data is two-fold: • Some bedding brands are resistant to incorporating PCM chemistries in their products, especially at lower price points, without performance metrics • High-performance PCM chemistries in the marketplace are experiencing downward price pressure in the absence of clear quantitative metrics differentiating them from commodity offerings In the second half of 2017, Alexium made strategic investment in analytical equipment to assess the performance of our products and aid us in product design. As a result, Alexium quickly established a market leadership position in quantifying cooling performance and dynamics of its Alexicool products and compare said performance against any global competitor in real-world product integrations. By developing this method, Alexium can now be a leader in quantifiable product development for our potential customers, and also allow our customers to quantify, on their own, the value Alexium’s products bring. In a recent product analysis, Alexium showed that for similar product add-on, Alexicool provided twice the cooling of a leading competitive product. Analytics of this nature are a critical step in Alexium both widening the adoption of PCM in bedding and increasing market share in that space.

I personally think that this is very significant, as I said earlier "its one thing to say its the cheapest and the best" its another thing thing to be able to prove it with facts and figures! 2x better cooling at a cheaper price ,what company would not like those figures!

Gotta love a company run by a Scientists.

Have a great day all