Internet of Things developer Quantify Technology Holdings (ASX: QFY) has taken a big step in commercialising its suite of products by inking a deal with leading Taiwanese manufacturer CASwell Inc.
Quantify today announced it has signed a memorandum of understanding with CASwell to develop processes for the volume manufacture of its products.
The company said it would also look to appoint CASwell, and other affiliated businesses under CASwell’s $20 billion parent company Foxconn Technology Group, to manufacture Quantify’s products for the Australian and international markets.
Quantify primarily develops hardware and software devices that assist the monitoring and management of internet-enabled devices such as lighting, power, heating and cooling systems.
Its flagship commercial product is the Q-Device, which replaces AC light switches, dimmers and power outlets in residential and commercial buildings with an intelligent, network-connected framework. This framework can provide energy management and reporting, voice-enabled interaction and real-time evaluation of environmental and risk factors.
A key part of the company’s commercialisation strategy has been to source a manufacturing partner that can upscale as demand grows, which looks promising following Quantify’s recently announced global CB Scheme certification.
Quantify chief executive officer Brett Savill said CASwell, which provides design, engineering and manufacturing services and is experienced in embedded computing and hardware/software integration, will make a “great partner” for the company.
“We believe that CASwell and their affiliated companies can help Quantify scale internationally and I am excited to see this relationship flourish,” he said.
According to Quantify, the signed MoU also contemplates other partnership opportunities including the development of a distribution channel for the company’s products in Taiwan and mainland China.
Safety certification and patent approvals
This latest news follows yesterday’s announcement that Quantify has received CB Scheme certification after its hardware passed global safety certification testing last month.
The CB Scheme is an international system for mutual acceptance of test reports and certificates relating to the safety of electrical and electronic components, equipment and products.
According to Quantify, this certification is a critical step towards global product sales as it will boost product acceptance in regions participating in the scheme, including the major targets markets of Europe, China and the United States.
In addition, the company has been granted patent approval in 10 countries including Australia, with a further 55 countries’ approvals pending.
Quantify’s modular hardware system had been granted global approval under the Patent Cooperation Treaty (PCT), which enables the company to finalise patents in 150 participating countries.
Quantify has chosen to focus on the 65 countries it saw as key markets and has so far received final patent approval in Australia, China, Hong Kong, Indonesia, Morocco, the Republic of Korea, Singapore, South Africa, Japan and Israel.
The patent covers the modularity of the company’s products, which means its devices can be easily upgraded for additional features and functions.
The patent also simplifies the manufacture of the hardware and would mean competitors will need to manufacture dedicated, bespoke hardware for every variant they wish to release.
According to Quantify, the CB Scheme certification coupled with patent protection of the company’s hardware are “vital components in delivery global product sales”.
Quantify shares were up 14.29% to $0.008 on today’s news by afternoon trade.