The Company is in the business of developing, manufacturing and marketing proprietary & cost-effective portable gas monitoring warning products. The Company's philosophy is to apply advanced technology to new, unique monitoring applications that are simple, precise and direct.

BAFI PRODUCTS & SERVICES
The BAFI� system is an electronic digital gas-pressure sensing device and warning system used to continuously measure the PSI of portable pressurized gas cylinders and react when the pressure meets unacceptable levels. Pressurized gas cylinders are useful in many applications, including portable prescription oxygen cylinders for patients with respiratory difficulty.

The number of patients using portable oxygen is increasing. These patients are required to have various oxygen delivery systems, including portable pressurized gas cylinders. Portable systems are used when the patient will be away from their main oxygen delivery system. Portable oxygen systems will typically provide oxygen to the user for 1-6 hours, depending upon regulation of oxygen flow. Often, multiple cylinders may be required. The BAFI� system interfaces with the tank valve and the regulator port and activates when the tank pressure drops to 500psi. When the BAFI� system activates, a loud audible alarm sounds and a super-bright flashing light turns on. These signals notify the user that the current tank is nearly depleted and should be replaced with a full tank.

This system includes the manufactured controller unit, instructions and warranty. It is driven using sensor switches and a series of electrical components governed by a digital circuit using the newest technology. All of the components are FDA approved and either meet or succeed testing requirements.

The BAFI� system can decrease expenditures of the direct costs for special handling of empty gas tanks and health hazards related with users who have depleted their gas supply. The BAFI� system can monitor pressurized gas systems for a user at a fraction of the costs associated with other monitoring methods.

NEW PRODUCT DEVELOPMENT
The Company has assembled experienced and qualified individuals for the development of a new generation of BAFI� products. It will require minimal capital, 1 year of development and consists of a less expensive and more durable sensor switch, redesign of the manifold, and decrease in size of the controller unit. The specialized system will be designed to lower manufacturer costs. Having completed the first product, the second generation product is being designed, and the engineering team is currently engaged with this development.

The Company's proposed new products will target a broad range of potential customers. The new generation devices will use much of the same technology and micro-components that are used in the original BAFI� device, but will be more compact and light-weight.

The development of the technology and applications of the device are lead by the Company's engineering development team, with assistance of outside contractors. The products are designed to meet or exceed all applicable regulations for medical products of its' type.

In addition to the above, the technology for possible optional "add-on" equipment is currently being discussed for future product development. The Company plans to market a full line of such peripheral "add-ons", which will be manufactured under the BAFI� name. Prospective new products, research and development programs, and additional marketing opportunities for the BAFI� product line include:

  • BAFI� Remote Hospital System
  • BAFI� Flight O2 Warning System
  • BAFI� Fire Extinguisher Warning System
  • BAFI� Remote Portable Consumer System for RV and Outdoor Cooking
  • BAFI� O2 Audio System for Fire Jumpers
  • BAFI� AQUA DIVING O2 WARNING SYSTEM

PRICING
The Company has priced the BAFI� system so that a 45-50% gross margin is generated. The distributor price may likely be discounted from time to time depending upon high volume commitments. Distribution channels retail value for the complete BAFI� system is about $139.95. This provides a competitive price for all markets.

The Company has chosen to provide an in-house direct marketing program to support distribution. The Company management believes that the sales & marketing for these systems could be achieved with a direct factory sales force. The current sales price for a complete system is $139.95. However, with the implementation of our sales & marketing program the increase of sales will decrease production costs. The goal is to reduce the system manufacturing cost and maintain the retail pricing. In addition, the Company will loan product pursuant to an agreement by the customer to pay a subscription fee of $8.00 per unit per month.

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