Reporting the latest updates to you. As you remember from the previous update, based on our investors’ estimates we were supposed to receive payment from them last week but it got moved to this week for their own internal reasons. I just had a conference call with both investors urging them to speed up the transfer. As you remember we have 2 investors—a big international company and a private European investor. The current situation is that the private investor ran into some difficulties with his bank. The earliest he will be able to make the transfer is 15th of October.
He is very sorry for the slowdown, but has reassured us and the other investor that all is fine and that the investment will arrive on the week of 15th. We are extremely disappointed with this situation and made it known to our investor. We also explained that we have publicly promised our community that the payment would be made this week. He is extremely apologetic but explained that he can’t speed the timeline up as it’s a big amount and the bank has a certain process for it.
We were working on getting the other investor to go ahead with their share of the investment already, despite the hold-up on the private investor’s part. The conclusion here was that while unhappy with the delay, they will wait, and make the investment together with the private investor.
We are extremely disappointed as this is the last step before things start moving finally. We know that we are again shifting the timeline. The timeline we communicated to you was based on investor estimates.
We understand that we need to move faster, so we agreed with our investors to all meet with Emdoor in China on the 10th of October to convince them to start shipping before the payment arrives.During this week we have been on stand-by to get to China for meetings and moving forward with assembly and shipping. We would be of course ready to meet Emdoor, our manufacturer, next week but unfortunately, next week is a long independence holiday for the workforce in China.
I hate to bring this news to you today. I hope our investors are reading this and understand the importance of sticking to the timeline and urgency of our situation.
We are quite unfortunate with the circumstances but we will get there!
Now some questions answered:
Q: What’s the shipping timeline now?
Shipping timeline is the same as the earlier update, and is based on us finally receiving funds. You can see the update below:
Q: Why will refunds be issued after the shipments?
We have a bunch of funds frozen that will get unlocked once we ship ordered units out. In order to ship units out, we need to pay out the full balance for our manufacturer, including units that were ordered and units that will be refunded. If we would refund all of the units first, we would not be able to pay the full balance to the manufacturer, and therefore would be left with funds still frozen. Our investors wouldn’t allow to use funds in such a way.
Q: What if there is a further delay with payment?
At this point it can only come from the private investor’s side. We are very disappointed with his delay as the other investor is ready on his side. As a backup, during our meeting in China on the 10th of October I’ll discuss with the bigger investor if he would like to have this round alone. We have not had the delay from the bigger investor and it has been moving fast to this date.
Q: Your customer support is bad. Especially warranty handling.
It’s true. We know it. Due to our challenging situation we are short on resources on support side. Once the investment arrives we will make sure to reevaluate a lot of cases and drastically improve the support we give.
If we are taking too long to respond submit a new ticket through website.