Oryon Technologies, Inc. (PINK:ORYN) is manufacturer of next-generation lighting technology that has developed multiple patents relating to electroluminescent (or 'EL') lighting, trademarked as ELastoLite(r). Elastolite is a thin, flexible, crushable, water-resistant lighting system with multiple applications such as safety apparel, sporting goods, consumer goods, membrane switches, and others. These markets includes outerwear, industrial safety, municipal safety, military, athletic apparel, men's, women's and children's clothing, shoes and gear, and together they generate over $250 billion in annual revenues. Given the nature of� the EL technology though, it has universal application potential.
Oryon Technology Overview
The unique advantages of ELastoLite(r) provides industrial designers with the flexibility to use EL in ways not possible up until now.
What Is ELastoLite(r)? Unlike reflective tapes, an electroluminescent lamp emits light by the direct conversion of electrical energy into light through energized phosphors. Although electroluminescent lamp technology is not new, ELastoLite(r) broke through restrictive barriers that limited the growth of electroluminescent technology be creating an electroluminescent material that is a polyurethane ink structure which can be painted directly onto nearly any surface, and dries solid as well as flexible.
In other words, it's a flexible, ribbon-like material that emits light when powered by a nominal amount of electricity, like a common battery. However, it can be designed in any shape or size, and can emit multiple colors.
Specifically, Oryon's EL solution is a 3-part system - lamp (lighted surface), connection circuit, and battery/inverter.
- Lamp (Lighted Surface): a micro-thin film, more like a fabric, that is durable, malleable, and washable and that can be heat-transferred, in-molded, compression-molded or printed onto/into a substrate or base material.
- Connection Circuit: Technologically advanced conductive thread to transfer power to lamp from power source.
- Battery/Inverter: Highly efficient and small power generator that can be powered by Alkaline or Rechargeable (like cell phone battery) batteries.
It's entirely possible many investors have already utilized or witnessed the technology without even realizing it. It provides the backlighting for many cell phone key pads now, and the technology was how the lighted costumes 'glowed' in 2010's movie 'TRON: Legacy'.� �
ELastoLit is also cool and power efficient, emitting no heat. As such, it can be used for any purpose... signage, branding insignias or decoration on clothing (making it well-suited for safety vests and law enforcement apparel).� It can be applied directly to the garment/product through heat transfer, or in conjunction with other materials. It's also machine washable and dryable, and its useful life span virtually exceeds the life span of most garments.
It's not just a fabric-based material though. It can be molded onto plastics and other substrates. It's also durable, meaning the material painted onto items can be used in the harshest of environments, which makes it ideal for safety lighting. Better still, and unlike reflective tapes, it can be seen from any angle. Also unlike reflective tapes, it is an active light source. Reflective tapes require an external light source to function effectively. ELastoLit does not.
Oryon's technology is heavily patented with over 55 patents issued or pending worldwide.
ORYN Company Overview
Oryon is a technology company focused on leveraging proprietary technology to not only incorporate light where it was not possible before, but to further develop the technology and intellectual property for the advancement of limitless applications.
Oryon Technologies acquired the initial elastomeric electroluminescent lighting technology patents and intellectual property in 2002 and began the developmental process of establishing commercial channels in various markets. One of Oryon's early successes in commercializing its IP was licensing the use of the technology in cell phone key pads which led to the back lighting of the key pad in the Motorola RAZR, which has sold over 125 Million units.
ELastoLite(r) has been featured in apparel products sold by Nike, Lands' End and Marmot Mountain Ltd. In fact, Oryon achieved significant market validation in the apparel, textile and 'sports gear' arena through test marketing of ELastoLite(r) in over 100,000 apparel and gear items sold by Marmot Mountain and Lands' End.
It's not just the apparel industry that's showing interest, however. Hollywood took notice of Oryon's revolutionary lighting application and commissioned the use of ELastoLite(r) technology for the costumes in the 2010 Disney blockbuster film "Tron:Legacy" and for some costumes in the television series "Terra Nova".
Each one of these applications and associated development has positioned Oryon to capitalize on their future applications and product development.
For the time being, Oryon will continue developing and marketing the ELastoLite(r) brand in the key markets that have already demonstrated acceptance and performance. Once critical mass is achieved in those key markets, Oryon aims to expand into molded specialty products, including applications for the defense, automotive and point-of-sale sectors. Ultimately, the company believes that its technology and intellectual property will have a role in almost every industry, and the company plans to introduce significant added-value to an almost limitless number of products and technologies. As for the timeline...
Due to the immense size and divergent requirements of the multiple industries Oryon can target - and in order to optimize resources - the company will focus and initially limit the applications and industries in which it can make the most immediate and greatest impact, and which present both high level volume and profit potential. These markets are the apparel, textiles, footwear and subsequently membrane switch markets.
The initial marketing focus will be on apparel - a market Oryon has already started to penetrate. Within the target textile markets, approximately 7 billion units are shipped each year. This includes outerwear, industrial safety, municipal safety, military, athletic apparel, men's, women's and children's clothing, toys, footwear, sports gear and clothing accessories. These markets generate over $250 billion annually and are second only in size to the food industry.
Other markets the company expects to find market with in the near-term are toys, safety gear, enhanced-visibility-wear, outdoor equipment (machinery and structure), signage (like point of sale), and more.
Further down the read, Oryon expects to generate revenue in markets like in-molded products (cell phones and keypads), automotive dashboard and controls, costumes, household appliances, security systems, outdoor advertising and displays, military equipment, and more.
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The company has plans even bigger than that, however. Other fields the company is developing a product for include biometric fingerprint sensors (in which Oryon holds two promising patents), and high speed roll-to-roll printing that will allow Oryon to offer cost effective solutions for floor lighting, greeting cards, printed flexible batteries and solar cells. These new technological developments could provide many outstanding future growth opportunities for Oryon.
Oryon Technology Management
Tom Schaeffer
President, Chief Executive Officer and Director
Mr. Schaeffer has over 30 years experience in sales and marketing, specializing both in new product introductions to mature industries and finding niches for existing products in emerging categories. Schaeffer has owned and operated Active Concepts, a sales and marketing company servicing the licensed sports industry, since 1982. He began his sales and marketing career with Blue Ribbon Sports in the late '70's as one of the original sales representatives of the company that would become known as Nike. Schaeffer was hired by the Dallas Cowboys to develop their merchandising department, which included hiring and training the national sales force and established the sales and marketing guidelines and national account base for the Cowboys, independent of the NFL. Schaeffer co owns Vino Family Vineyards in Napa Valley, California. Mr. Schaeffer brings his experience in textiles, sportswear, product development, manufacturing, supply chain management, B2B and B2C business building at national and international levels to Oryon, where he acts as the catalyst for domestic and international growth.
Mark E. Pape
Treasurer, Chief Financial Officer, Secretary and Director
Mr. Pape is a financial executive with over 30 years of experience in senior financial management, investment banking and auditing. He has served as the chief financial officer of Affirmative Insurance Holdings, Inc., Home Vestors of America, Inc., LoanCity.com, United Dental Care, Inc. and American Income Holding, Inc. In addition, he has served on the board of directors and audit committees of public, private and nonprofit organizations and as the VP of Strategic Planning for Torchmark Corporation, an S&P 500 company. Mark has extensive entrepreneurial financial experience having been the President and CEO of R.E. Technologies, Inc., a start-up technology venture and CFO of LoanCity.com, a venture capital-backed e-commerce mortgage-bank. From 1979 through 1991, Mr. Pape worked as an investment banker at several firms, including Bear, Stearns & Co. Inc., The First Boston Corporation and Merrill Lynch Capital Markets. Mr. Pape has been a Certified Public Accountant since 1975. He holds an MBA from Harvard Business School, a Masters in Hotel and Food Service Management from Florida International University and an AB degree from Harvard College.
Dan Gulden
Vice President Global Business Development
Mr. Gulden brings over 20 years of experience in creating, building and successfully managing global relationships that are critical in today's economy. His background in performance apparel, product development, sales, marketing and supply chain management will greatly assist in moving Oryon Technologies forward. Other areas of expertise include strategic planning and execution, strategic partnerships, acquisitions, restructuring and change management. Mr. Gulden began his career with Cabela's during a period of rapid expansion. At Lands' End Mr. Gulden managed multiple departments with businesses in excess of $200,000,000. In addition he has also worked with private equity firms on potential company acquisitions and valuations. Mr. Gulden hold a BA degree in Economics and International Business from St. Olaf College.
Dr. Leslie D. Major
Chief Technology Officer
Dr. Major has over 30 years experience in manufacturing operations, specializing in high reliability optoelectronic components, assemblies and subsystems for US and foreign defense contractors, the medical community and commercial accounts.� He also managed a contract assembly division with plants in Juarez, Mexico and the United States providing semiconductor assembly, electrical assembly, mechanical assembly and electro-mechanical assemblies.� Dr. Major was one of the original members of the management team of Texas Optoelectronics, Inc and served as Executive Vice President of Operations and a member of the Board of Directors until its sale in 2003, when he started Major Enterprises, LLC provide consulting services.� Dr. Major has a BS in Chemistry from Rensselaer Polytechnic Institute and a MS and PhD from Case Western Reserve University in Metallurgy and Materials Science.
ORYN Outlook & Analysis
What sort of revenue potential is on the table for this startup company? Nine times out of ten, a pre-revenue startup company is long on talk, and short on a marketable idea - the outfit significantly overestimates the value of its product. Oryon is one of those rare 'one of ten' gems that has an amazingly marketable idea, but has yet to start tooting its own horn. That's the crux of the opportunity for new ORYN investors today - the product is ready to roll, but the story hasn't yet started to spread.
As for the revenue, on the upside, the applications of ELastoLite are virtually limitless... apparel, industrial safety, special effects, signage, and more. On the downside, Oryon isn't going to capture the bulk of the sales of those items. It will only capture a small percentage of the total revenue driven by sales of those items. In other words, if a shirt that incorporates the ELastoLite technology retails for $30, ORYN won't pocket that $30. It will only pocket a small fraction of that total price, either by licensing the technology, or by providing the EL 'ink' that is used to fabricate the shirt.
That said, the benefit of all those nickels and dimes easily adds up to what is still a massive amount of potential.
As was noted above, the apparel industry ships 7 billion items per year. Even if only 1% of those articles of clothing utilizes Oryon's EL technology, that's still 70 million units that will generate licensing fees or revenue for the company. Even if usage of the technology nets Oryon $1.00 per garment (likely a low estimate), that's still $70 million in revenue for this $26.7 million company... an outrageous price/sales ratio.
And remember, the EL technology has an untold number of potential applications, each of which puts a few more dollars in the company's pockets. ELastoLite realistically is a technology that could yield hundreds of millions of dollars in annual revenue.
Be that as it may, newcomers and current owners may first want to focus on the sales potential of the market Oryon has already said it is going to first focus on - apparel - as the basis for any foreseeable valuation.
Assuming that hypothetical $70 million in apparel-based revenue is on target, and assuming the average price/sales ratio of 2.4 applies to ORYN, one could reasonably make the case that the company is actually worth $168 million, meaning the stock is due to appreciate 529% as it penetrates the apparel market. That's an aggressive number to say the least, and Oryon certainly won't justify it in the immediate future. It does offer some perspective of the long-term potential though.
In the meantime, as sales begin to roll in and the story gets told, it wouldn't be unreasonable for ORYN to go ahead and justify a small, risk-adjusted portion of that potential upside. Even just modest revenue - in the range of a few million dollars - would verify the company's viability enough to suit the market.� Once Oryon becomes 'real' in doing so, a doubling in price within the foreseeable future isn't out of the question. That would put shares somewhere in the $1.70 area, which may be a decent mindset to start with (though always thinking defensively goes hand in hand with this sort of speculative trading).
That being said, traders should feel a sense of urgency here. ORYN only began trading a couple of weeks ago. While it got started with a bullish bang, the stock's fallen back to $0.88 after peaking at $1.33 on the 14th. A problem? Quite the opposite - an opportunity.
The early volatility can be chalked up to the fact that it's effectively a new company, and a new stock; both are still getting their bearings. The pop and subsequent dip now, however, suggests the dust is settling. That's when the underlying story starts to dictate how and where shares trade. Clearly the story is a compelling one, and we anticipate a strong upside move directly from here.
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