Author Topic: The Airing  (Read 64360 times)

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Offline edy

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Re: The Airing
« Reply #225 on: November 18, 2017, 12:27:28 am »
They are at it again with a new post explaining to folks why they went the crowd-funding route, and also mentioning (just in case anyone missed it) that it is not true anyways because they are also having investor funding. Here's their latest blog posting... and also included in the attached as PDF just in case the blog is modified or deleted. I'm not sure what the point to all of this is, except to give the illusion of something happening when the technology itself has had little to no progress and to appease growing dissent from their backers:

Quote
Why Crowdfunding? 
NOVEMBER 16, 2017

We often get questions about why we chose to raise money to develop Airing on a crowdfunding platform, and particularly why Indiegogo. People have suggested that we go on Shark Tank. Others wonder why we didn’t use venture capitalists or banks.

Crowdfunding gives Airing direct access to the very people who want to see this concept become a product. Unlike more traditional funding sources, the “crowd” reacts very quickly and passionately. Many people recognize that while a contribution to a campaign is a big risk, it’s one they are willing to make because when the product becomes a reality it will really be beneficial to them. Their contribution is a sort of bet—huge upside potential but not so much money that they could not afford to lose it.

Another benefit of crowdfunding is market validation of a product concept. With over 20,000 contributors, we can check that box. Our donors come from over 120 countries—literally from every corner of the globe!

And the publicity we have gotten on through this campaign has attracted the attention of many world-class companies—suppliers, manufacturers, regulatory experts, and distributors. We are well supported in our work to bring Airing to market.

Why Indiegogo?

When we were considering a rewards-based crowdfunding campaign we did our research. Several companies were offering crowdfunding platforms but Indiegogo and Kickstarter were the clear leaders in this emerging segment. They had the name recognition, the most followers, and generally the best reputation all around. We eliminated Kickstarter because at that time, they did not allow companies that were raising funds for medical devices to use their platform whereas Indiegogo did not have that restriction. (Since Airing’s launch on Indiegogo, Kickstarter has removed this restriction.)

Another reason we chose Indiegogo is because they reached out to us very early on. They thoroughly vetted us before we were permitted to launch, and conducted another review of our campaign and progress in the second year of our campaign. Indiegogo has offered us great support. The team that they put together to support us is professional, very helpful, readily accessible, and quick to respond. It’s been a great platform for us.

Click here to learn more about our Indiegogo.com campaign: Indiegogo.com

Why Wefunder?

When we launched our crowdfunding campaign on Indiegogo rewards-based crowdfunding was the only option available. In the past year, however, this has changed. New provisions, known as Regulation Crowdfunding (Title III) have been adopted to allow smaller investors to buy shares in private companies on the same basis that had previously been limited to accredited high net worth investors.

In response to this development, new platforms have emerged that provide small investors the opportunity to buy shares in startup ventures alongside the more traditional larger players. Since many people have asked about the possibility of making an equity investment in Airing we decided to explore this option. The most successful, and most experienced, of these platforms, is Wefunder.com. After extensive discussions with the Wefunder team, we concluded this would be a good way for us to complement other sources of financing for the continuing development of our breakthrough micro-CPAP device.

Please take a look at our Wefunder.com campaign.



You can read between the lines above and interpret it very differently. Why IndieGogo and not Kickstarter? Because they had no working prototype and I believe KS requires that. Maybe the medical devices thing could also be true. Also because IndieGogo has lower stringency and allows for funding even if target is not met, and InDemand options. We all know IGG has lower standards than KS, and companies that were booted off KS (Skarp Laser Razor for example) moved to IGG because of that. As far as WeFunder, they needed more money and so this platform gives a way to obtain smaller chunks of money from "investors"... Small enough that they can be kept sufficiently "arms-length" distance away that that they have no power as shareholders to actually get too much involvement in the corporate workings of the company.  Also, when Airing finally folds and/or is sold off in chunks, the company is more shielded from legal action from these types of "investors" (as opposed to larger interest more hands-on type capital investors). Nevertheless, "regulation crowd-funding" seems to offer at least some protection for "investors". I am not sure of all the legal and financial details, perhaps someone who has more knowledge can chime in here.... but here is a link to the regulatory compliance page of the SEC that discusses the maximum amounts and periods that are allowed for such "investors" to raise and it may also discuss what happens when a bankruptcy is issued or a share buyback or other stuff happens:

https://www.sec.gov/info/smallbus/secg/rccomplianceguide-051316.htm

« Last Edit: November 18, 2017, 12:41:51 am by edy »
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Offline 315

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Re: The Airing - Getting Refund
« Reply #226 on: November 19, 2017, 07:33:30 am »
Hello,

I supported the Aring on Indiegogo some time ago (a year or so).
Now I think that wasn't a good idea.

So I tried to get a refund from Airing directly, as Indiegogo says after they transferred the momey to Airing, they are not responsible.
I got this answer:

Quote
Dear *,

Thank you for your message. Refunds to your credit card can only be processed by Indiegogo. We cannot process a refund to your credit card because we have no access to that information. It is protected by Indiegogo, as it should be.  We adhere to Indiegogo's Refund policy.

Please be advised that contributions to Airing are not refundable beyond the policy stated (within 10 days of contribution). After this period, Indiegogo takes out their fees, the remaining funds are transferred to us (without your credit card/payment information), and we begin putting those funds to good use.  By making a contribution to this campaign, you acknowledge that you understand that you are contributing to fund the development of the Airing micro-CPAP device and not making a direct purchase. We appreciate your support, and we are hard at work developing the Airing prototype.

Sincerely,

The Airing Team

Any chance to get my nearly 100$ back?  |O
 

Offline Kean

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Re: The Airing
« Reply #227 on: November 19, 2017, 01:55:34 pm »
Zero chance
 

Online Cyberdragon

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Re: The Airing
« Reply #228 on: November 20, 2017, 04:52:57 am »
I speak scamguage.

TRANSLATION:

Dear sucker,

We are not sorry that we cannot return your money because we are explioting every loophole to scam people. It's too late anyway as we've already taken the money and squandered it on boats and hoes while pretending to develop some quack medical device. You decided to dump money on us without thinking, so it's totally your fault. We are very pleased that we were so easily able to dupe you, you sorry sucker.
*BZZZZZZAAAAAP*
Voltamort strikes again!
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Offline Jay_Diddy_B

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Re: The Airing
« Reply #229 on: November 20, 2017, 10:05:16 am »
315 and the group,

This scampaign revolved around these perks (and similar perks):

Gold + 45 Airings

You will receive: • A voucher that can be exchanged for a 45 day supply of Airings (when they become available).* That’s a 30% discount off the anticipated price of $3 each. • Quarterly e-reports on engineering and regulatory progress *Subject to FDA clearance and doctor’s prescription in the US and local regulation abroad


These are the key statements are:

A voucher - You were promised nothing more, nothing less that a voucher. You may already have received your voucher.


when they become available
They may never become available. In which case the voucher received above, has no use.


Quarterly e-reports on engineering and regulatory progress 
You should get updates, they may be meaningless, but once a quarter, ever three months, you should get a report.


Subject to FDA clearance The Food and Drug Administration regulates medical devices in the USA. If the FDA does approve the airing it will not become available and you have a worthless voucher.


doctor’s prescription
You need a prescription, from your doctor to buy the medical device. If you don't get a prescription, then you have a worthless voucher.

local regulation abroad
If you are not in the USA, because this is a medical device, similar rules may apply in your location.


That’s a 30% discount off the anticipated price of $3 each
It is most unlikely that you could have a medical device selling retail for $3.00 (About 2 Euro).

Since you were only promised a voucher, and the voucher has already been delivered you have no chance of getting a refund.
In subscribing to the campaign, you were giving money to support an R&D project with little to no chance of success. (That is the polite version)

 

In my opinion, this campaign should never have been allowed.


Regards,

Jay_Diddy_B
 
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Offline Delta

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Re: The Airing
« Reply #230 on: November 20, 2017, 11:01:35 am »
A fool and his money are easily separated.

No one purchases anything from IGG, they merely dontate money to a scheme.
 

Offline edy

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Re: The Airing
« Reply #231 on: December 21, 2017, 01:51:57 pm »
This campaign update #54 came in last week but I forgot to post it. Here it is:

Quote
New Campaign Update!
The Airing: the first hoseless, maskless, micro-CPAP team just posted.

posted by Airing Inc.

Dec 13, 2017 • 12:57PM PST

Thank you!!
Dear Airing Supporters,

We are writing to let you know that we have decided to suspend our Indiegogo campaign at this time. Since many people have asked about the possibility of making an equity investment in Airing we decided to explore this option. After much consideration and discussion, we decided to offer equity through Wefunder.com, which is the most successful, and most experienced, of these platforms.  Since launching our successful equity crowdfunding campaign on Wefunder several weeks ago, we have learned that it is confusing and problematic to have two crowdfunding campaigns happening at the same time. Therefore we are suspending our Indiegogo campaign for now.

We would like to express our deep appreciation to you for being on this incredible journey with us. When we launched our Indiegogo campaign we were hopeful that we would raise enough money to develop the proof of concept prototype of the Airing micro-CPAP device.  And because of the support of over 21,000 backers we have made great progress towards that goal. We could not have come this far without you.

Right now we are focused on getting the other valve in the micro-blower to work properly. We are getting closer to overcoming this challenge with each iteration and are confident that we will get it working properly soon.

We know that you still may have many questions and we are happy to answer them. You can email us contact@fundairing.com anytime and we will get back to as quickly as possible.

Sincerely,

Stephen Marsh


Ok, so they closed the IndieGogo campaign... meaning no more "in demand" ... after raising $1,946,686 USD total funds on that site (https://www.indiegogo.com/projects/airing-the-first-hoseless-maskless-micro-cpap-sleep-technology). Currently the WeFunder site stands at $536,834 funds raised (https://wefunder.com/airing). What does this mean exactly? Did their lawyers tell them that they can't do that? Did IndieGogo get upset? Dud WeFunder tell them to cut it out, or were they worried they were "diluting" their chances of meeting some target on WeFunder by still having IndieGogo going? Or did their investors make a complaint? Who knows... Still no word on what stage their device is at, no demonstration, they are WAY behind schedule in any case.... By now they originally promised a working prototype and early 2018 to be going through FDA testing.  :-DD
« Last Edit: December 21, 2017, 01:55:42 pm by edy »
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Offline snoopy

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Re: The Airing
« Reply #232 on: December 27, 2017, 11:00:29 am »
This was never going to work and is a classic case of PT.Barnums "sucker born every minute" !

This is a case of where you pays your money and never ever get what you pays for. Some prick has probably bought a house out of this. It has happened before too.


 

Offline edy

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Re: The Airing
« Reply #233 on: March 06, 2018, 05:31:56 pm »
It is worth noting that Airing is still under the Encite LLC parent company, or so it says on their WeFunder page. Just a little history of Stephen Marsh and his company, read this:

http://mandalitigationcommentary.blogspot.ca/2008/09/can-founder-director-and-30-stockholder.html

In the above linked article, it basically mentions how Marsh was 30% owner of IFCT, and the company had a group of investors in it named Echelon Ventures. IFCT burned through cash and developed absolutely nothing, so in a cunning and strategic move, Marsh declared bankrupcy for IFCT and before Echelon could make a move to cash out or purchase assets, Marsh formed a new company Encite LLC to purchase what was left of IFCT for pennies on the dollar... Thereby reacquiring everything under a new company name and shielding himself from Echelon's claims. In any case, the lawsuit above was unable to establish Marsh and IFCT were the same and that he acted with full control over the entire process, but that the board was also involved in rejecting Echelon's bid, so Marsh and Encite LLC got away unpunished.... only to repeat the process now again with Airing.

On their WeFunder page it says:

KEY FACTS

We've established a very strong brand – 8 million visitors to fundairing.com; 136,000 followers on Facebook; over 55 million views of unsolicited web videos about Airing.

Over $4M has been raised to date – $1.9 million on Indiegogo from over 20,000 contributors since June 2015, making Airing one of the top grossing medical device campaigns across all crowdfunding platforms, and $2.15 million raised from investors.

Functioning prototypes of various components, some of which are moving at operational speed, have already been built. A key component has yet to be demonstrated – micro-blowers blowing air.

Multiple patent applications filed by Airing’s parent, Encite LLC, for technologies licensed to Airing for use in the device, with more being filed.
Strategic relationship with a major international manufacturer that provides key equipment for testing and demonstrating feasibility of the technologies used in the device.


So Encite LLC is actually parent company of Airing. And other than just filling a bunch of patents, they have yet to turn a profit from any product. They are a kind of patent trolling firm in that they make patent after patent and never seem to turn it into a practical application, but may eventually be able to sue others if they come close to infringement and perhaps cash in then on it.

Interesting also to note the following:

http://www.burlington.org/Legal_Notice1NorthAve.pdf

And I quote....

Quote
NOTICE OF PUBLIC HEARING
PLANNING BOARD
TOWN OF BURLINGTON
The Planning Board hereby gives notice that it will hold a Public Hearing on Thursday, July 16, 2015 starting at or
after 7:00 p.m. in the Main Hearing Room of the Burlington Town Hall, 29 Center Street, Burlington, MA, to
consider the application of Encite LLC for approval of a Special Permit pursuant to Section 1.5.2 “Laboratories
engaged in research, experimental, and testing activities” of the Northwest Park PDD to allow a research and
development laboratory to relocate from Second Avenue and operate on property located at 1 North Avenue
in the Planned Development (PD) and Water Resource (WR) Districts, Burlington, MA, as shown on Assessor's
Map 39 as Parcel 8.
Documentation in support of this proposal is available for public inspection in the Planning Board office, Town Hall
Annex, Burlington, MA, during normal office hours, Monday through Friday and on the Planning Board’s website at
www.burlington.org/community_development/projects.php.
BURLINGTON PLANNING BOARD
Barbara L’Heureux, Chairman

So this is probably the lab where they are working on the Airing.

There is also an article here:

http://burlington.wickedlocal.com/article/20150724/news/150727677

Quote
Two small technology companies gained approval for special permits from the Planning Board July 16.

One is a relocation within Northwest Park and the other, based in Woburn, is branching out to Burlington to locate a biotechnology lab.

“We have some very interesting big companies in Burlington, Microsoft, Nuance, and so forth, but we also have some very interesting small companies,” Planning Board member Paul Raymond said.

Encite, LLC, is planning to move from its current offices at 41 Second Ave. to 1 North Ave. Although the special permit for “laboratories engaged in research, experimental and testing activities,” was previously approved, the upcoming move to a new location necessitates the use to be approved again.

Steve Logan, senior vice president of Nordblom Company, which owns Northwest Park, represented Encite at the meeting. Logan explained that Encite is a small company with fewer than 10 employees that started out doing research on fuel cells. It had a government contract to produce miniaturized fuel cells, and during that time discovered a method for making tiny fans that, when linked together in a series, form a contraption that attaches to the nose for sleep apnea patients.

Though still at the experimental stage, the discovery could potentially replace the large masks that patients typically to control their breathing during sleep, a machine commonly known as a continuous positive airway pressure device (CPAP).

The new product is called “Airing” and through an online funding campaign, close to $1 million has been raised for this device to continue through the design process, including FDA approval. Encite, LLC is owned by Stephen Marsh. According to the U.S. Patent and Trademark Office, Marsh holds several patents for technology devices.

The other company, Abpro Corporation, is located in Woburn and plans to open a satellite location at 15 A St. in Burlington. The company employs a total of 25 employees.

Ian Chan, CEO and president at Abpro, who represented the company at the public hearing with research scientist Sean Murphy, explained the company is focused on antibody research using natural molecules that fight disease.


“We have a novel platform that can create antibodies much faster,” said Chan. “This can be applied to oncology, which is our current focus.”

Abpro was approved for a special permit to engage in biotechnology activities, bio-safety levels 1 and 2, and the generation or storage of hazardous waste limited to the volumes classified as a very small quantity generator (VSQG) as defined by Burlington zoning bylaws, which require a positive recommendation from the Board of Health.

Planning Board member Carol Perna asked what defines a “small quantity” of hazardous waste. Chan said that based on his meeting with Board of Health staff, his understanding is it is defined as up to 27 gallons per month, but that Abpro would produce up to four liters (about one gallon) per year.

Any updates from Airing lately? NOPE.

Here's the latest update on IndieGoGo from 3 months ago:


Quote
posted by Airing Inc.
Dec 14, 2017 • 1:09PM
3 months ago
We are not going anywhere!!
Dear Airing Contributors,
We want to offer some clarity concerning our last update. At this time we have stopped taking contributions on Indiegogo. To be clear, nothing has changed regarding your vouchers and we are still moving ahead, full steam, to develop Airing’s micro-CPAP device to get this important product out to everyone as soon as possible.
For the time being, we have shifted our focus to selling equity to raise the capital needed to see this mission through to a successful completion. It is important that you, our loyal supporters, understand that we will continue to fulfill our obligations to you under our Indiegogo crowdfunding campaign.
 
We want to reiterate these important points:
 

While we have stopped taking new contributions on Indiegogo,  that does not affect the existing contributors.
Vouchers are still valid and can be redeemed when Airing becomes available.
We will continue to provide regular updates on Indiegogo, our website, and social media. And you can email us anytime.
We have received hundreds of emails, so please be patient and we will try to reply to everyone.
If you still haven't received your voucher, email us at contact@fundairing.com.
We are working as hard as we can to bring Airing to the market as soon as possible.
 

Keep faith in Airing and the mission we are on.
 
Sincerely,
 
Stephen Marsh

Yes.... They said it....

WE ARE NOT GOING ANYWHERE!!!!

That's right, not going anywhere with the progress in development of this vapourware. Now that they've bilked the crowdfunders, they can go after venture capitalists too... just like they did with Echelon a few years earlier. Here's a prediction... When they run out of money and things start to grind to a halt, Marsh will make a new company and buy up all the assets of Encite LLC after it declares bankrupcy for pennies on the dollar, and continue on as a new corporate entity, shielded from any legal recourse. History repeating itself?
« Last Edit: March 06, 2018, 05:34:42 pm by edy »
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Offline edy

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Re: The Airing
« Reply #234 on: March 06, 2018, 05:48:38 pm »
One more interesting article... Fascinating read:

https://www.leagle.com/decision/indeco20111129126

This article, while still discussing the legal case, is the most easily understandable to non-lawyers that I have seen.
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Offline helius

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Re: The Airing
« Reply #235 on: March 07, 2018, 07:25:20 am »
Declaring bankruptcy does not give you a license to be "shielded from any legal recourse". When you enter bankruptcy, your assets come under control of the court and the court must sign off on any sale or transfer, with the goal of maximizing the cash to repay creditors. After creditors are paid, any remaining cash is distributed to shareholders: this means that common shareholders usually do not recover any money in bankruptcy, but that is by design. Since a startup's founders are typically the largest shareholders, bankruptcy is as great a loss for them as for anyone else.
When venture capitalists invest in a company, they usually impose onerous conditions (in what is known as a Term Sheet) including preferred stock classes, liquidation preferences, and what is known as a "ratchet". These provisions protect the VC capital in case the business falters and is either sold at a discount or liquidated. It sounds like the investor group in this case was not very professional and did not know how to protect their capital, and really do not qualify as venture capitalists.
 

Online Cyberdragon

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Re: The Airing
« Reply #236 on: March 07, 2018, 09:51:40 am »
Declaring bankruptcy does not give you a license to be "shielded from any legal recourse". When you enter bankruptcy, your assets come under control of the court and the court must sign off on any sale or transfer, with the goal of maximizing the cash to repay creditors. After creditors are paid, any remaining cash is distributed to shareholders: this means that common shareholders usually do not recover any money in bankruptcy, but that is by design. Since a startup's founders are typically the largest shareholders, bankruptcy is as great a loss for them as for anyone else.
When venture capitalists invest in a company, they usually impose onerous conditions (in what is known as a Term Sheet) including preferred stock classes, liquidation preferences, and what is known as a "ratchet". These provisions protect the VC capital in case the business falters and is either sold at a discount or liquidated. It sounds like the investor group in this case was not very professional and did not know how to protect their capital, and really do not qualify as venture capitalists.

So...they deserved it then. Stupid suckers separated from their money once again. >:D
*BZZZZZZAAAAAP*
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