MATECH

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Business History

Market Opportunity

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Business History
The Electrochemical Fatigue Sensor (EFS™) In 1992, Dr. Campbell Laird and Dr. Yuanfeng Li invented the EFS™. The EFS™ relies on a patented electrical test method, which monitors the current flow at the surface of a metal while it is being mechanically flexed. The output current resembles a heart’s EKG pattern and can be interpreted to indicate the degree of fatigue as well as the presence of cracks in their earliest stages of development. It promises to revolutionize critical structural member inspection methods, and its potential for improved diagnostic accuracy, compared with existing inspection systems, fits perfectly with growing concerns over the aging infrastructure. In 1993, MATECH entered into an agreement for an exclusive worldwide license in perpetuity with the University of Pennsylvania to develop and market the EFS™. In 1993, the Company began to brief the US Military and Congress regarding the benefits of the technologies under development by the Company.

The Fatigue Fuse (FF™) The late Dr. Maurice A. Brull, a world class aeronautical and mechanical engineering scholar and founding Dean of the School of Engineering at the University of Tel Aviv, first conceived of the fatigue fuse in 1982 during his tenure at the University of Pennsylvania. Before Dr. Brull’s invention there was no known way to monitor fatigue directly or to track it in real time. The only methods available were indirect and not economical for wide use. Dr. Brull’s device (FF™) is a thin piece of metal consisting of a series of parallel metal strips connected to a common base, much as fingers are attached to a hand. Each of the fingers has a different geometric pattern. By applying the laws of physics in predetermining the geometric contour of each finger, the fatigue life of each of the fingers are finite and predictable. When the fatigue life for a given finger (or fuse) is reached, the fuse breaks. By using different geometry for each finger, different increments of fatigue life are measurable. Typically, these fingers are constructed to fail at increments of 20% of the metal’s fatigue life. By mechanically attaching or bonding these devices, the Fuse undergoes the same strain sequence as the structure. As the fuses break, they indicate the increment of fatigue life reached for that area of the structure.

Funding and Research In 1985, a research and development partnership was formed to provide $750,000 of funding for the initial research and development of the fuse. In 1986, the company became a public corporation through a reverse merger with an existing publicly traded concern. The name of the company was changed to Tensiodyne Corp. During the period 1985 -1989, the company engaged in its initial development work. In 1989, Robert M. Bernstein became the Chief Executive Officer and controlling shareholder of Tensiodyne Corp. In 1989, the Company entered into an agreement with Hughes Aircraft Co. and developed a remote monitoring system. As an outcome of this work successful tests were performed for bridge components at the University of Rhode Island under the aegis of the Rhode Island Department of Transportation, calibration tests at Battelle Laboratories, and on a helicopter frame at Westland Helicopter Co. in England. Supporting further development efforts covering the years 1989 through 1996 in excess of $1.0 million was invested by private sources in the form of equity. It is management’s opinion that the Fatigue Fuse is ready for commercialization in the bridge industry.

In August 1996, MATECH entered into a teaming arrangement with Southwest Research Institute of San Antonio, Texas (a nonprofit research facility with annual gross revenues in excess of $230 million) and the University of Pennsylvania. On February 25, 1997, the Team was awarded a $2.5 million Phase I contract from the US Air Force to "determine the feasibility of the EFS™ to improve the United States Air Force capability to perform durability assessments of military aircraft, including both air frames and engines through the application of the EFS™ to specific military aircraft alloys."

Through December 31st 2000, MATECH has generated approximately $8 million from the US Government for this R & D effort.

For all predictions, forecasts or other statements which are forward looking in time, there are possible risks and uncertainties involved. See the Future Statements page.