Thursday, January 22, 2015

New55 website is up, and other things

Sam has put up a very functional and artistically minimal site at which has what I think is a very appropriate look.  You might notice "The Tomato" logo.  I imagine that thing spinning as the film loads.

A new addition is the convenient paypal button that quite a few supporters have used recently!  A gigantic Thank you.

We're definitely not all the way there, and though risks remain - and I feel reasonably optimistic - I am temporarily (mentally) exhausted.  It's a good thing we have a versatile team - one that is running to beat the time and money clock.

In a couple of weeks we'll be showing our balanced receiver and negative which is a big accomplishment.  Yesterday we found pinholes in some of our long awaited substrate. There's always something to deal with.


Sunday, January 11, 2015

Spending Summary: 2014 starting cash, and remaining cash at the beginning of 2015

Those who have been following know that the actual amount we got from Kickstarter was reduced from the "pledge" of $415,025 - caused by failed payments, and fees - to $365,256.

1. Beginning Cash. Kickstarter yielded $365,256. 
2. We also put in $2000 to open the bank account, and then people donated $858 through paypal.
3. The starting amount was $368,114.

In early May we opened the New55 checking account with $2000 to cover expenses needed right then, and by May 29 the Kickstarter proceeds were finally in the account, referred to as "beginning cash". We also got some donations totaling $858 at that time. Together, these have been applied to fund the development of New55 and the industrial capacity to manufacture a product, according to the descriptions and risks on Kickstarter.


1. These are the things we spent money on
2. Each category is a summary of what was spent in that area
3. We might adjust these numbers as we go through the end of year accounting.

Nine different expense (spending) categories are listed here. The word "expense" means money spent. We have records of spending that occupies many pages, so this is just a summary according to the main categories.

Rent, Heat and Lights.  New55 occupies substantial dedicated assembly and lab areas, and shared office space, and pays a portion of the rent and utilities at 72 Nickerson Rd. in Ashland, MA. The charge New55 pays is allocated on a square footage basis.

Payroll is what New55 reimbursed, at cost, the hired hourly help. To save time and money, New55 used the existing system at Soundwave Research  (Soundwave Research started New55 several years ago and funded the initial R&D, and other things) which provides administrative, insurance, regulatory, bookkeeping, payroll services, accounting and other things that New55 did not have to go out and find separately.

Equipment consists of machines, tools, tooling (including hard tooling at a vendor location), test equipment, and lab equipment. The sleeve machine, coaters, big microscope, ovens and dies come to mind, and there are others.

Materials are films, papers, emulsions, metals, formed metals, chemicals, reagents, substrates, tapes, adhesives, labels, boxes and more.

R&D is the charge for services from Soundwave Research that are not on payroll, but take professional time, software, or equipment not owned by New55.  For instance, New55 gets full access to CAD such as Solidworks, and Quickbooks Manufacturing as well as other engineering tools used to perform product development and create bills of materials, component drawings, process charts, and necessary manufacturing documentation.  If New55 had to get these by itself it would have been very costly and time consuming.

Shipping and freight is what was spent on UPS, postage, overland freight, TNT international, and other charges relating to getting materials, supplies and machines shipped.

Marketing relates to websites, promotions, email support lists, logo designs, etc.

Travel is mainly airfare and hotels, and fuel and mileage. Both US and international travel was done to obtain services and key materials for the project.

Miscellaneous consists of things that are not in another category.

Total spending is the sum of the above. The total, and this report, is unaudited, which means that adjustments might still be made, additional bills could still come in, and checks for errors are still to be done.

Remaining Cash as of January 6, 2015

Remaining cash is what was in the bank on January 6.

It is apparent that we will need to raise additional cash. 

1. Most of the biggest expenses have been made, and we believe we are close to being able to begin scale up of the New55 product.
2. The project is very near its biggest ramp up event which is to run actual receiver sheet in a large coating facility, and we believe we have the budget already in place to cover that.
3. We have not yet achieved "first lot to stock" which is the formal placing of completed product into a stock location.
4. In addition, we are readying "the store" so we can sell accessories and other items to raise more cash and fund operations.
5. Remaining cash on January 6, 2015 is $111,575, subject to tax.

New55 Holdings, LLC