So it's approached to try and identify fakes, which is what a lot of
other companies do. And then you can't identify gray market because that batch will
come in stolen, but it'll identified as real because they are real, or
something that's expired will be identified as real even though it's expired. You're listening
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You aren't listening to watching the Financial Survival Network. I'm your host, Carrie
Lets. Well, we've got a new technology that I personally find fascinating.
I'd love to tell you the ticker symbol and where to buy it, but
you can't now because it's private. But it's definitely a company that you need
to keep track of, keep watching for. And the CEO is with us,
Roy Ganzariski. The name of the company is Alphaeum and right, great
to have you on. So if I have it right, you've got a
basic process that enables authentication verification of items without putting on a without it putting
an etching a serial number, anything else. It can be uploaded to the
blockchain as well. Why did you elaborate on that for me and explain why
it's so important and why the potentials there for investors? Hi, Kerry,
Yeah, you're absolutely writing. Thanks for having me on ALKI on basically fingerprints
items. If you think and you ever watched CSI or any one of those
cool spy movies or police movies where they find a fingerprint of someone and they
want to identify it is, they'll compare it to the database and find the
bad guy, if you will, by comparing fingerprints, so they don't need
a driver's license, a passport, a badge. The fingerprint is all you
need to identify irrefutably that person. We have done the same thing for items.
What we found is that every item has inherently a type of fingerprint.
We call it a feature print that we have developed a way to identify and
codify. With just a camera, industrial camera, iPhone, a regular standard
off the shelf camera, we can take a picture of an item. Our
software, our AI algorithms will then identify on that specific item. It's unique
fingerprint codified into what we call a feature print, and store it. And
then one day you, your customer, your supplier, whoever it is,
can take another picture of that item and will create again that feature print,
compare the two and be able to tell you is that in fact or what
is that in fact specific item. So if you think of the proverberal can
of coke or black cat, we won't just tell you that's a can of
coke or a black cat like many software systems will do. We will tell
you that is can of coke number one seven seven dashed three that came off
of that machine on this date, and this is your black cat. So
unique identification per item, no need to add anything to it, like you
said, no barcodes, no stickers, no tags, nothing, just a
picture. Hey, maybe my dry cleaner could use that because I'm keep it
track of stuff, right, So we actually do things like collectible jerseys and
stuff like that as well, because yeah, they may be misplaced, right,
And so therefore if a dry cleaner use the process for every I mean,
I guess it'd be hard if there's a wrinkle or something in the shirt.
But maybe it can figure all that out or were the way the labels
are fixed. It's amazing how many unique identifier identifiers there are, whether it's
your retina, your ear, your face, like Apple matches your face yep.
So so you could take a picture of my face and basically say this
is so and so, and then they could search it in any database,
whether it's TSA or wherever, going into a government building. So we don't
do people. We only do items. And the key there is, if
you think of it, all the counterfeits and the gray market stuff that goes
on. Now I'm not talking about the Louis Beaton bag that you buy on
the corner of Canal Street, right, those are counterfeits. The person selling
them tells you it's fake. You buy them for fifty bucks. You know
their faith and Louis Betan doesn't think they lost a customer, right. I
mean, it's still bad for the brand, it's bad financially, it's illegal,
But we're talking more of when you go and buy a five thousand dollars
Louis Beaton bag thinking it's real. The persons selling you think it's real,
but it actually isn't because somewhere in the supply chain, there were swapped.
We're talking about brake pads for cars that are fake medicine that is expired,
taken off the shelf by some bad guy, changed the date and now selling
it as if it's not expired. We're talking like really bad actors doing bad
things, and we'd eliminate all of that by taking a picture. So this
could be a very anti Chinese piece of technology, because let's face it,
we all know that the majority of counterfeits emanate from China. Maybe I won't
get a visit to go. Yeah, it'll be enemy number one. Yeah,
that's right. I see if you try to go, I see a
re education camp in your future. Well that's it's kind of exciting. So
you've you just went through your a round. You've been around since twenty seventeen.
You told me pre call and BMW is the lead investor. That's right,
right, So what was it to BMW saw in this technology that made
him pony up substantial funds? I mean, if you think of how both
supply chain manufacturing, what's called manufacturing four point zero, and of course counterfeit
gray market items work, they'll impact the automotive industry automotive parts as they go
through the supply chain can't always be marked. If they can, it's usually
with stickers or things like that that fall off can be scratched, and then
the part is subtly unused. And you can imagine that automobile makers as well
as others like transportation, DoD luxury goods want to know what parts they have
and that they're the right parts that they're being that they're installing. And on
the flip side of that, the counterfeit gray market side. The automobile industry
is a forty five billion dollars a year counterfeit industry, meaning brake pads,
air bags, seat belts, and then of course wheels. Other things are
counterfeited on a regular basis and brought in here to the United States. I'm
not talking about, you know, fakes in Africa, in Eastern Europe.
We're talking here in the US. Even tremendous amounts of counterfeit parts for cars.
So that's why someone like BMW is interested in technology like ours that basically
eliminates that and becomes the last technology you ever need, because there's not about
we have the next cool sticker, the next hologram, the next additive.
This is really about not needing anything but a picture of the item itself.
Or what if you try to like alter a part or something like that,
is it going to come up as a counterfeit then no, Actually, the
technology is very robust. That's why it took us about five years to really
develop into a point where we have no false positives in production, meaning I
will never tell you that a fake part is real by mistake. I will
never tell you that Part A is actually part B by mistake. No false
positives. And so to do that, we've gotten to a point that you
can scratch up the item will still identify it. We can take a flat
piece of sheet metal then turn it into a part for up a car or
playing something else and still identify after ex gone through the stamping machine. And
so this system is fairly robust to change wearing, tear, etc. So
counterfeit parts in the aviation into tree a big, big problemtually, Like counterfeit
fasteners, Yeah, that's right, a million to them. How long would
they take it to scan a million airplane fasteners? And not while at all?
I mean you think of it. The easiest way to do it is
within the production line, so where these fasteners are made, instead of trying
to do something special at the end of that production line or before shipping,
wherever that fastener is that you know is the original fastener, you take an
image of it. It could be fully automated if you have an industrial camera
sitting on top of the production line. As the fasteners go by, you
take a picture of every single one of them. Then when the manufacturer gets
those fasteners, either in receiving or literally as a technician is about to install
them, they could take a picture of them with their phone. It'll tell
them, yeah, this is in fact an authentic fastener. It'll even tell
them this is fastener number one, two, five dash eight that came from
this supplier and arrived on this date into your bloating dock. If they can
go down to that detail. And so if somebody hijacked a load of fasteners
and then they go to sell them and the manufacturer basically or the distributor reported
this batch stolen, right, then you'd instantly know they were stolen right exactly.
So that's the beauty of what we do so as approached to try and
identify fakes, which is what a lot of other companies do, and then
you can't identify gray market because that batch will come in stolen, but it
will identified as real because they are real, or something that's expired will be
identified as real even though it's expired, because we focus on identifying the original
with all the associated data. We will tell you, yeah, that's a
real faster but by the way, it was supposed to be delivered to this
company, not to you, or it was just reported stolen, or it's
expired. And let's say it's medicine. So we can actually not only tell
you if it's fake or not, but tell you if it's gray market,
tell you if it's about to be used incorrectly. Maybe it's a real fastener
that you have legally, you're about to install it on the wrong body aircraft
and you did it by mistake because they're so similar. So we can even
avoid human error based on misidentification. Well, that's really amazing. How did
you conceive it this? How'd you come up with the idea of right?
So our two founders are two mathematician founders are geniuses and very experienced when it
comes to optical AI or machine vision. If you've ever seen kind of movies
of the mail room and thousands of letters go through this conveyor belt, and
something's reading these envelopes and packages and sorting it through the country. These guys
did that in nineteen ninety four, and so they know how to take pictures
of things, apply to really advanced mathematics to it to solving problem. It
was mail before, and then they spun out or sold that company and created
a Litheon which basically does very similar thing, but in a complete different sense.
It takes a picture of something, applies really advanced mathematics to it to
solve a big problem. In this case counterfeits gray market traceability, so they
could do this or money too, right, and then you could track money,
so we do it money, point baseball cards, shoes, art,
and then of course breakpads, medicine, so he could be the full gamut
of any physical item. What do you think the most useful application, most
important application of this technology is going to be roy I think it's going to
be medicine, car plane parts, things that basically the consequence I'm getting it
wrong, our lives right there. Today, for example, uld have been
caught HIV pills, fake condoms, fake all sorts of vaccine, fake breakpads.
We talked about fate. When you get those wrong, or when those
fakes go in your car, in your body and they're wrong, you can
die. And so to me, that's the most important mission we're on is
solving those interesting, very very interesting, and I see the applications are many
fault and literally industries all over, especially Rolex watches, things like that you
can authenticate I guess you can authenticate the Rolex, but then they could replace
the insides of it. So actually interesting lean up when we deal with a
luxury goods and watch items exactly like that. They identified the watch in four
places, so well they'll take images of outside, front and back and the
inner movement and so no, you can't even replace the chain and try to
trick the system. The system will actually say, for example, the watch
is real, but the movement inside is not. Or the watch and movement
are real, but someone's replaced your bracelet. We can catch all of that
again with photo. It's amazing, it's pretty cool stuff. Vacations. Yeah,
this is going to be a global standard. I assume you've got substantial
intellectual property associated with this too. We do. We have literally tens of
patents. Over forty five patents already approved around the technology. And so while
there may be a lot of copycats out there of our tech, are the
patterns around our technology or substantial? All Right, So give us an idea
when you expect this company might go public. I hope we can talk about
that in the next twenty four months. That's the kind of the goal is
to grow rapidly. But first of all, the focus is solve the problems.
Then IPO etc. Will come later, right, Yeah, and you've
got revenue now right? Yeah? We do. Yeah. We have customers
in both Europe and here in North America in five distinct segments that we work
in. Luxury goods collectibles, arts is one. Transportation, so car parks,
playing parts is the second, DoD or DoD related suppliers is the third,
Pharma and medicine or medical is the fourth, and then precious metals,
gold, silver, et cetera is the fifth. It's really cool. Hey,
well it sounds pretty amazing. I hope you'll come back on when you're
ready to do your IPO. Because you're privately held, I can't ask you
a lot of questions stand but BMW is a lead investor can you tell us
whether they're using technology yet? I can't tell you, but they are lead
investment. Okay, well we'll leave it at that. Hey, people want
to find out more about you, Roy the company. Where do you go?
How do we connect with you? You can go on our website www.
Dot elethion dot com. You can also follow us on LinkedIn, or
just send us an email at info at eltheon dot com and we'll be happy
to answer a weegain. Great, great, Well, we really appreciate you
coming on the show. We'll have a link to Elthion dot com in the
show notes to this interview on Financial Survival Network dot com. Make sure when
you're at the site you go sign up for your free newsletter. Roy.
Great luck on This sounds really exciting and we'll look forward to the next interview.
Thank you, Carrie, I appreciate it. Thanks for listening to Carrie
Lets's Financial Survival Network, your solution to today's trying times. For the latest,
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