Periodic Reporting for period 1 - FOG (Frequency protector generator for honeybees)
Reporting period: 2019-01-01 to 2019-06-30
Testing of the FOG device takes place in 4 localities and in several bee colonies. We are primarily interested in the very influence of the generator on the bee colony. The methodology and method of evaluating the results were developed by doc. Ing. Robert Chlebo PhD. We applied the principle of mutual comparison at each test site separately. There were 10 test families at each site, one of which was untreated, so that the condition and amount of ticks on the hive without intervention and treatment could be compared. On the remaining 9 hives, we gradually set different frequencies and allowed the hives to act for the required treatment time. Comparing the overall results from all 4 sites and 40 colonies, we concluded that some frequencies were approximately 65-75 percent successful. Testing will have to be continued as it is to date and it is not possible to determine unequivocally from the tests performed whether or not the use of FOG affects the fertility of the queen bee as well as the multiannual production itself. It is necessary to realize that with today's form of beekeeping, the life of the queen bee is limited to about 3-4 years.
Testing must continue. The performance of the device and its efficiency are not clearly confirmed, changes are constantly taking place on the device. We would like to avoid complications that could occur if we did not have relevant and unambiguous results of this research. That is why the serial production of FOG is postponed to a later period.
The next steps of research have several phases. The first is to continue to investigate the possible impact of the FOG device on the longevity and fertility of the queen bee. Today we already know that it will require testing the equipment for more than two years so that the results are unambiguous and demonstrable. At the same time, there is the issue of the demonstrable effectiveness of the facility and the associated certification and recognition of treatments from a veterinary and hygienic point of view. Therefore, I note that the FOG testing process is still ongoing and not complete.
Maybe our expectations in 2018 were more optimistic and we thought that the finalization of FOG testing would be around 2020, but now I see that we still need 2-3 years and also new people, new financial resources. Today's coronavirus situation doesn't help either.
Therefore, our plan is to patent our ""new"" unquestionable solution as soon as the results of the impact on the queen bee are evaluated, so that we have 100 percent certainty that we are paying for something that will pay us back as an investment. The assumption of this step is for the year 2022.
The company's total project costs for the last three years are EUR 100,000. It is planned to complete research, testing, licensing and patent certificates in the next two years. The cost of this phase is estimated at EUR 150 000. Production documentation and start of production will be very expensive. The company will need external financial resources in the form of a loan or an investor who will enter the company. The company will work on both variants. The expected start of production is 2022. For the years 2022 to 2024, the planned sales volumes of FOG are gradually 5,000 pieces, 10,000 pieces, 20,000 pieces.
Costs Sales Cashflow
Previous period 175.000 0 -175.000
2020 75.000 0 -250.000
2021 75.000 0 -325.000
2022 1.000.000 1.500.000 +175.000
2023 2.000.000 3.000.000 +1.175.000
2024 4.000.000 6.000.000 +3.175.000"