Hi all, what a time it is to be invested in OBJ. Since the inception of the company until the current date, OBJ have been developing its technology and products but as management have alluded to in the previous year we are finally making the transition into a revenue/royalty producing business. If you take a step back and observe OBJ from above you can see the mark that our company is making. I thought i would provide my own mini-summary of our latest shareholder update with gems from other announcements throughout the year, hopefully by the end of it you will start to see what I see and the reason why the next 18months will truly transform the face of our company.
To start off with lets dive right in and tackle some figures. For the March quarter receipts from customers were a mere $33,000. From our latest quarterly it has increased to $290,000 which represents an 800% increase in revenue. Distribution of the wave I devices across SK-II and Olay to be ramped up in the second half of this year, revenues from Wave I during the March quarter was $127,000 which included a brief promotional period during the Chinese new year. This of course is peanuts in terms of royalty generation but it will hit the bottom line quite nicely not to mention that P&G were simply testing the waters with the Wave I device to which it has exceeded both P&G's consumer and business expectations . This has ultimately lead to P&G's overarching PDA agreement with OBJ.
Secondly in regards to the Wave II device. As we all know the Wave II device was launched exclusively at the Changai Airport, Singapore. This launch coincided with a rather intense and far reaching promotional campaign based largely on social media platforms, word on the ground from Third Eye and other astute posters clearly shows our magnetic booster displayed prominently at SK-II counters with display props being built. It is certainly being pushed much harder than our Wave I device ever was couple that with the launch of the airy milk being paired with our device and you can start to see how much might is being place behind the magnetic booster. Hopefully royalties will be higher than the Wave I device as the magnetic booster was developed by OBJ internally and contains a number of OBJ-developed innovations led by Dr Suda Sudarsana the head of research and development at SK-II. And as a cherry on top of the cake word from Senior management at SK-II describing the initial consumer reaction to the magnetic booster as being 'extremely exciting' and we can start to see the potential royalty streams building. Progressive rollouts of the magnetic booster is expected to occur between July and October with the following countries to distribute the magnetic booster: Japan, Korea, Singapore, Taiwan, China, Hong Kong, Malaysia and Indonesia whose combined population represents 25% of the entire worlds population.
Thirdly, I move onto the revenue guidance. We may not know it but management certainly do, based upon the revenue guidance provided by P&G OBJ expects to be able to operate the business with increasing revenues with our company expected to be cash positive by the first quarter of 2018 with cash flows to start from September of 2017. That is stunning if you take a second to think about that. Wave I was a test, royalties from said devices are but a trickle. We are expected to be cash positive by the first quarter of 2018, this will stem largely from the Wave II device launches which further represents only a few months of royalties from the Wave II device. That is mind boggling, as we are to be launching a third product by years end also and the fourth product to be launched in 2018 manufacturing for both devices have commenced. Each additional product launches' royalties will accumulate and with the expansion into the North American markets in the first quarter of 2018 you can start to see the immense royalty potential this company possesses. These products will be pushed and marketed by the worlds biggest fast moving consumer goods, P&G; our overhead costs are strictly controlled and minimal.
Lastly some additional gems. Management are meeting with senior P&G personnel in August to plan forward opportunites for OBJ's technology. We are currently testing across several of P&G's other product lines in the under arm and oral healthcare categories, this just goes to show P&G faith in our technology it can no longer be questioned after many years of hard work and negotiations P&G are finally all in with OBJ. Something else to note is the fact that for over 12 years our management team has not changed but now we have decided to expand our management team with the addition of Steve Schapera who will be 'extremely important for the future direction of the company'. Steve Schapera will be instrumental in developing the right strategies for directing the company's commitments to both product and licensing opportunities.
Good luck to us all.
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