Clarification

Talked to the CFO today to clarify some points.

Among other things we discussed,one point of my confusion was:

Almost every press release said that they got the order and the production would commence in Q4 2016. The 12 design wins and may be more. My question was whether the company would begin production for all of the 12 designs in Q4 and what they are doing in Q2 and Q3. Are they producing intermediate films or materials for the Q4 production.

The CFO clarified it. Q4 production actually refers to OEM/customer's production of their products - tablets, notebook, POS Terminal etc. (not the touch screen production). Customers are getting their touch screens as soon as the order is placed and announced. The company is getting the revenues throughout the year as they ship. Customers want shipments in stages over a period of their product cycle (Toshiba, Verizon, HP, POS terminal, NEC, etc.). No need to sing "bankruptcy or running out of cash or another equity raise," etc. Perhaps it is the reason why the Terms and Conditions are posted on the web site.

I was told they would make this point clear in the subsequent press releases and maybe clarify in the conf call. The bottom line is they have been shipping orders, revenue has been coming in and ramping production, etc. We sall find out in the next conf call.