In this feasibility study we have analyzed the viability of exploiting our proprietary technology to provide a cost effective, low environmental impact alternative for cooling applications from technical, commercial and financial point.
From a technical point of view, the main take away from the action is the re-structuring of our product roll-out strategy. We considered the current stage of development of the RIDEC and DEC products, prepared a work plan to take the current versions to a commercial stage and their respective market performance (i.e return of investment and potential revenues). As a result, we updated our product roadmap strategy. We have decided to follow a lean strategy of growth. We will focus on the RIDEC which provides the most attractive growth vector for the company at this stage. Moreover, we have been able to evaluate our cost assumptions and advanced our efforts towards securing the relevant assembly capacity by pursuing manufacturing agreements with suitable companies. Lastly, we have prepared a complete work plan to reach the commercial version of the RIDEC. We have defined the automation capacities we will require for it to meet customer expectation, and planned for the resources that will be necessary for this final stage of development.
From a commercial point of view, we have validated our market growth assumptions. The profitability of the business case for the end user is also boosted by strong regulatory and economical drivers, providing a promising potential market. We can confirm the commercial feasibility in the originally identified market segments, starting in the Mediterranean region and Middle East area. We have started to select suitable partners to distribute our product in our target markets. As a result, we have reached a verbal agreement with Sedical, a Spanish based company dedicated to the distribution and marketing of cooling technologies. We expect that our partnership will also materialize into a joint phase 2 application We see very beneficial to complement our capacities with the market experience of Sedical. An analysis of potential risks and barriers have been carried out, resulting in the development of mitigation strategies to secure the milestones in our growth strategy are achieved.
From a financial point of view, after validation of the cost at which the RIDEC will be produced, we have concluded that end users will benefit from energy savings when selecting the RIDEC instead of traditional vapor compression air conditioning systems. This is key to support our business growth based in progressive substitution of less efficient technologies. We have projected a conservative growth scenario, where demonstrated technology and the unique selling points provides for an impactful market entry and sustainable growth. It has been proven that the RIDEC will provide growth for the company in terms of cash flows and employment creation, which demonstrates the financial viability of the project.
