SOURCE: GeckoSystems Intl. Corp.

September 07, 2010 17:00 ET

GeckoSystems and Dell Subsidiary Sign Agreement to Expand Elder Care Robot Trials

CONYERS, GA--(Marketwire - September 7, 2010) -  GeckoSystems Intl. Corp. (PINKSHEETS: GCKO) announced today that they have successfully negotiated a Memorandum of Understanding (MOU) with a wholly owned contract manufacturing subsidiary of Dell, TriFusion LP. GeckoSystems is a dynamic leader in the emerging mobile robotics industry revolutionizing their development and usage with "Mobile Robot Solutions for Safety, Security and Service™."

"We are pleased to announce the signing of this foundation agreement, an MOU in which TriFusion's management commits to sincere efforts in assisting us in meeting our sales goals. While the difficulty in developing cost effective, truly utilitarian mobile robot solutions is 85-90% software R&D, the cost drivers for manufacturing are the mechanical systems, the electronics, and their final assembly into a complete mobile service robot (MSR)," remarked Martin Spencer, President/CEO, GeckoSystems.

TriFusion's approach to bridging the common gap in contract manufacturing services was the fusing of services, technology and logistics to provide an end-to-end solution. Their end-to-end solutions are built on defined and repeatable processes and caped with a web-based tool that provides real-time status of a project 24/7.

GeckoSystems and TriFusion have also executed a five-year, bilateral, binding arbitration non-disclosure agreement (NDA). A similar NDA was executed with Dell some years ago. 

"Even though Commercial Off The Shelf (COTS) electronics, electro mechanicals, and mechanical subsystems are used extensively, an experienced, skilled and professionally managed contract manufacturer must be identified, and partnered with in order to hold total direct manufacturing costs to the lowest possible level," said Spencer. "Additionally the contract manufacturer must have the strategic resources that will enable them to scale production up rapidly in the event that the anticipated hyper growth occurs due to pent up demand.

"We are pleased to report that we have found these capabilities and qualities in TriFusion and look forward to our developing relationship as we continue to progress in the expansion of our elder care robot trials. Dell has reassured us on several occasions as to the solidarity of their support of TriFusion. This is very important since it is TriFusion's intimate relationship, and Dell's confirmation of that relationship, that should enable GeckoSystems to benefit from Dell's existing, high volume, low cost computer systems' manufacturing infrastructure to better prepare for our anticipated hyper growth from pent up demand.

"As an illustration of their close, working relationship, at one point recently, Dell requested that they do all billing to GeckoSystems on TriFusion's behalf.

"We have several, very sensitive discussions occurring at this time with other notable potential suppliers and customers, both in the US and Japan. Despite having non-disclosure agreements (NDA's) in place with a number of them, we expect to identify more demonstrable progress -- if not outright successes -- in the near term.

"Since beginning these world's first trials, we have learned that valued family behaviors can be readily expressed to the care receiver using a CareBot due to the robustness of its functionality. There seems to be a very important positive -- and unforeseen by some parties -- impact of valued family behaviors for all members in using a CareBot to communicate their thoughts and feelings to their beloved family members," commented Spencer.

Some believe that the technology is approved and paid for through options such as the Assistive Technology Act of 1998, which broadens the definition, use, and funding of technology at home. Other sources include long-term care insurance, Medicare and Medicaid, Medicaid waivers, and (potentially) stimulus funds from the American Recovery and Reinvestment Act of 2009, under the provisions for health information technology and electronic medical records for acute care.

The elderly frequently endure loneliness and/or loss of independence when living in nursing homes or other assisted living facilities. This new type of remote medical monitoring system, a CareBot, will postpone, if not eliminate that trauma to them. Their families can now better manage the difficult decisions regarding the independence they allow their now dependent parent while enabling the caregiver to hold their risk at a tolerable and acceptable level.

"Since late last year, we have been conducting these world's first elder care robot trials. We have learned a great deal about expected and unexpected human to machine interactions in an elder care setting. Our expectations of anticipated benefits have been, in some instances, much more gratifying than we believed prior to initiating these trials. Consequently our conviction as to there being extraordinary pent up demand for personal assistance robots, like our CareBot, bode well for the ROI that our nearly 1400 investors expect and deserve," concluded Spencer.

About TriFusion, LP

TriFusion is a managed IT deployment provider based in Round Rock, TX, with warehousing facilities in 98 locations around the country. We combine service, technology and logistics to provide PC, server and software solutions for companies of all sizes. From imaging PDAs to building some of the largest supercomputing clusters in the world and delivering them to your doorstep, they manage your IT risk so you don't have to.

TriFusion's facility brings warehousing and IT operations into the same space as the executive team. The entire space, about 80,000 square feet, was renovated to bring all departments working together in the same space.

For more information, visit www.trifusion.com

About Dell, Inc.

Dell listens to its customers and uses that insight to make technology simpler and create innovative solutions that simplify daily activities and help people stay entertained, connected and in touch.

Dell is focused on creating open, affordable and capable enterprise solutions designed to help customers. The company has an industry-leading portfolio of enterprise solutions, including servers, storage, networking and services. Dell's commercial enterprise solutions revenue grew 43 percent year over year in the company's second fiscal quarter and is now a $17 billion annualized business.

For more information, visit www.dell.com.

About GeckoSystems Int'l. Corp.:

Since 1997, GeckoSystems has developed a comprehensive, coherent, and sufficient suite of hardware and software inventions to enable a new type of home appliance (a personal robot) the CareBot™, to be created for the mass consumer marketplace. The suite of primary inventions includes: GeckoNav™, GeckoChat™ and GeckoTrak™.

The primary market for this product is the family for use in eldercare, care for the chronically ill, and childcare. The primary distribution channel for this new home appliance is the thousands of independent personal computer retailers in the U.S. The manufacturing infrastructure for this new product category of mobile service robots is essentially the same as the personal computer industry. Several outside contract manufacturers have been identified and qualified their ability to produce up to 1,000 CareBots per month within four to six months.

The Company is market driven. At the time of founding, over twelve years ago, the Company did extensive primary market research to determine the demographic profile of the early adopters of the then proposed product line. Subsequent to, and based on that original market research, they have assembled numerous focus groups to evaluate the fit of the CareBot personal robot into the participant's lives and their expected usage. The Company has also frequently employed the Delphi market research methodology by contacting and interviewing senior executives, practitioners, and researchers knowledgeable in the area of elder care. Using this factual basis of internally performed primary and secondary market research, and third party research is the statistical substance for the Company's sales forecasts.

Not surprisingly the scientific statistical analyses applied revealed that elderly over sixty-five living alone in metropolitan areas with broadband Internet available and sufficient household incomes to support the increased costs were identified as those most likely to adopt initially. Due to the high cost of assisted living, nursing homes, etc. the payback for a CareBot™ is expected to be only six to eight months while keeping elderly care receivers independent, in their own long time homes, and living longer due to the comfort and safety of more frequent attention from their loved ones.

"We project the available market size in dollars for cost effective, utilitarian, multitasking eldercare personal robots in 2011 to be $74.0B, in 2012 to be $77B, in 2013 to be $80B, in 2014 to be $83.3B, and in 2015 to be $86.6B. With market penetrations of 0.03% in 2011, 0.06% in 2012, 0.22% in 2013, 0.53% in 2014, and 0.81% in 2015, we will anticipate CareBot sales, from this consumer market segment, only, of $22.0M, $44.0M, $176M, $440.2M, and $704.3M, respectively. We expect these sales despite -- and perhaps because of -- the present recession due to pent up demand for significant cost reduction in eldercare expenses," opined Spencer.

The foregoing forecasts do not include sales in non-metropolitan areas; elderly couples over 65 (only elderly living alone are in these forecasts); those chronically ill -- regardless of age -- or elderly living with their adult children.

The Company's "mobile robot solutions for safety, security and service™" are appropriate not only for the consumer, but also professional healthcare, commercial security and defense markets. Professional healthcare require cost effective, timely errand running, portable telemedicine, etc. Homeland Security requires cost effective mobile robots to patrol and monitor public venues for weapons and WMD detection. Military users desire the elimination of the "man in the loop" to enable unmanned ground and air vehicles to not require constant human control and/or intervention.

The Company's business model is very much like that of an automobile manufacturer. Due to the final assembly, test, and shipping being done based on geographic and logistic realities; strategic business-to-business relationships can range from private labeling to joint manufacturing and distribution to licensing only.

Several dozen patent opportunities exist for the Company due to the many innovative and cost effective breakthroughs embodied not only in GeckoNav, GeckoChat, and GeckoTrak, but also in additional, secondary systems that include: GeckoOrient™, GeckoMotorController™, the GeckoTactileShroud™, the CompoundedSensorArray™, and the GeckoSPIO™.

The present senior management at GeckoSystems has over thirty-five years experience in consumer electronics sales and marketing and product development. Senior managers have been identified for the areas of manufacturing, marketing, sales, and finance.

While GeckoSystems has been in the Development Stage, the Company has accumulated losses to date in excess of six million dollars. In contrast, the Japanese government has spent one hundred million dollars in grants (to Sanyo, Toshiba, Hitachi, Fujitsu, NEC, etc.) over the same time period to develop personal robots for their eldercare crisis, yet no viable solutions have been developed.

GeckoSystems is the first mobile robot developer in the world to begin actual in-home eldercare evaluation trials.

What Does a CareBot Do for the Care Giver?

The short answer is that it decreases the difficulty and stress for the caregiver that needs to watch over Grandma, Mom, or other family members most, if not much, of the time day in and day out due to concerns about their well being, safety, and security. 

But, first let's look at some other labor saving, automatic home appliances most of us use routinely. For example, needing to do two or more necessary chores and/or activities at the same time, like laundering clothes and preparing supper. 

The automatic washing machine needs no human intervention after the dirty clothes are placed in the washer, the laundry powder poured in, and the desired wash cycle set. Then, this labor saving appliance runs automatically until the washed clothes are ready to be placed in another labor saving home appliance, the automatic clothes dryer. While the clothes are being washed and/or dried, the caregiver prepares supper using several time saving home appliances like the microwave oven, "crock" pot, blender, and conventional stove, with possible convection oven capabilities. 

After supper, the dirty pots, pans, and dishes are placed in the automatic dishwasher to be washed and dried while the family retires to the den to watch TV, and/or the kids to do homework. Later, perhaps after the kids have gone to bed, the caregiver may then have the time to fold, sort, and put up the now freshly laundered clothes.

So what does a CareBot do for the caregiver? It is a new type of labor saving, time management automatic home appliance.

For example, the care giver frequently feels time stress when they need to go shopping for 2 or 3 hours, and are uncomfortable when they have to be away for more than an hour or so. Time stress is much worse for the caregiver with a frail elderly parent that must be reminded to take medications at certain times of the day. How can the caregiver be away for 3-4 hours when Grandma must take her prescribed medication every 2 or 3 hours? If the caregiver is trapped in traffic for an hour or two beyond the 2 or 3 they expected to be gone, this "time stress" can be very difficult for the caregiver to moderate.

Not infrequently, the primary caregiver has a 24 hour, 7 days a week responsibility. After weeks and weeks of this sometimes tedious, if not onerous routine, how does the caregiver get a "day off?" To bring in an outsider is expensive (easily $75-125 per day for just 8 hours) and there is the concern that medication will be missed or the care receiver have an accident requiring immediate assistance by the caregiver, or someone they must designate. And the care receiver may be very resistant to a "stranger" coming in to her home and "running things."

So what is it worth for a care receiver to have an automatic system to help take care of Grandma? Just 3 or 4 days a month "off" on a daylong shopping trip, a visit with friends, or just take in a movie would cost $225-500 per month. And that scenario assumes that Grandma is willing to be taken care of by a "stranger" during those needed and appropriate days off.

So perhaps, an automatic caregiver, a CareBot, might be pretty handy, and potentially very cost effective from the primary caregiver's perspective.

What Does a CareBot Do for the Care Receiver?

It's a new kind of companion that always stays close to them enabling family and friends to care for them from afar. It tells them jokes, retells family anecdotes, reminds them to take medication, reminds them that family is coming over soon (or not at all), recites Bible verses, plays favorite songs and/or other music. It alerts them when unexpected visitors, or intruders are present. It notifies designated caregivers when a potentially harmful event has occurred, such as a fall, fire in the home, or simply been not found by the CareBot for too long. It responds to calls for help and notifies those that the caregiver determined should be immediately notified when any predetermined adverse event occurs.

The family can customize the personality of the CareBot. The voice's cadence can be fast or slow. The intonation can be breathy, or abrupt. The voice's volume can range from very loud to very soft. The response phrases from the CareBot for recognized words and phrases can be colloquial and/or unique to the family's own heritage. The personality can range from brassy to timid depending on how the care giver, and others appropriate, chooses it to be.

Generally, the care receiver is pleased at the prospect of family being able to drop in for a "virtual visit" using the onboard webcam and video monitor for at home "video conferencing." The care receiver may feel much more needed and appreciated when their far flung family and friends can "look in" on them any where in the world where they can get broadband internet access and simply chat for a bit.

Why is Grandma really interested in a CareBot? She wants to stay in her home, or her family's home, as long as she possibly can. What's that worth? Priceless. Or, an average nursing home is $5,000 per month for an environment that is too often the beginning of a spiral downward in the care receiver's health. That's probably $2-3K more per month for them to be placed where they really don't want to be. Financial payback on a CareBot? Less than a year. Emotional payback for the family to have this new automatic care giver? Nearly instantaneous.

Safe Harbor:

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, technology efficacy and all other forward-looking statements be subject to the Safe Harbors created thereby. The Company is a development stage firm that continues to be dependent upon outside capital to sustain its existence. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.

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