Flexpoint Sensor Systems Inc.

Ticker Symbol: FLXT

Flexpoint Sensor Systems Inc. (OTCBB: FLXT) has developed the thin-film Bend Sensor(R) for a myriad of applications targeting automotive, wearables, medical, industrial, and consumer markets.

Company Overview

Flexpoint Sensor Systems Inc. (OTCBB: FLXT) was founded in 1995 to develop thick-film sensing technology for the automotive industry. Since then, the company has developed the thin-film Bend Sensor(R) for a myriad of applications targeting automotive, wearables, medical, industrial, and consumer markets. From its 14,000 sq. ft. HQ and manufacturing facility in Draper, UT, the company sells directly through global channels and via agreements with partners and an increasing list of distributors.

The company's primary end markets include:

  • Automotive – Flexpoint holds two patents covering the horn switch application of the Bend Sensor(R) technology. In addition, the technology could be used in other areas like transmissions, function controls, accelerator/braking controls, fuel control, and impact detection sensors.
  • Medical – The Bend Sensor(R) is being used in interactive glove applications that provide immediate feedback to hand movement. For instance, a 2009 study used the gloves to assist doctors in neuroscience studies to determine a patient’s level of motor skill or post-surgical evaluation and therapy. The company is actively working with Haemoband Surgical on a ColonoScope technology leveraging the sensor and related electronics.
  • Toys – The Bend Sensor(R) has been incorporated into millions of interactive plush toys and new applications are moving towards commercial production. In fact, the company is working with an American Fortune 500 global toy manufacturing company and its global assembly partner with full-scale production having recently begun and expected to grow significantly into 2017.
  • Virtual Reality – The Bend Sensor(R)'s use in interactive glove applications extends beyond medical and into the virtual reality market. According to Markets and Markets, the virtual reality market will grow at a 57.8% compound annual growth rate to reach $33.9 billion by 2022 with key players like Facebook's Oculus Rift and others pushing mass market adoption.

These are just some of the many end markets that the company targets with its innovative Bend Sensor(R) technology. In the future, the company believes that the Internet of Things (IoT) and Industrial Internet of Things (IIot), where sensors are at the core, will become a large potential market.

Investment Highlights

Proprietary Technology. Flexpoint Sensor Systems' Bend Sensors(R) consist of a conductive silver ink that’s laid on a variety of substrates and, as part of its proprietary manufacturing process, micro-cracks are introduced at surface level. With motion, by sensing variation in the resistance between these cracks, the sensor can tell what kind of motion is occurring at a given point in time. The sensor technology performs equally well under normal or extreme environmental conditions and has proven to be extremely resilient. The Bend Sensor(R) is covered by five patents, including patents on specific devices incorporating the sensor, while the company continues to build its IP portfolio.

Diverse End Markets. Flexpoint Sensor Systems targets numerous end markets with its Bend Sensor(R) technology. In addition to its core automotive, consumer and medical end markets, the company is exploring IoT applications in conjunction with a specialty power plant equipment manufacturer and has established strategic relationships with IoT and IIoT software framework vendors in order to facilitate its breakthrough into the anticipated multi-billion-dollar market.

Predictable Revenue. Flexpoint Sensor Systems incorporates its sensor technology into third-party products. Under these agreements, the company generates either a royalty or sale for each of these product sales, which can create a predictable recurring revenue stream over time. Management anticipates revenue in excess of $1 million this year - over six times last year’s revenue - which will help it achieve positive cash flow over the near-term.

Download the Complete FLXT Company Analysis


Download a free SECFilings Company Analysis on Flexpoint Sensor Systems Inc. that covers:

  • Recent Developments - A review of recent developments and their impact on the company's bottom line.
  • Financial Analysis - A detailed review of the company's income statement, balance sheet, and cash flow statement.
  • Peer Comparison - A detailed list of industry peers and the company's relative valuation, growth rates, and much more.

Enter your e-mail below to receive the free analysis:

I also want to receive reports on similar opportunities in the space from time to time. We promise not to send spam.