Beauty-Aid Products
From the Annual Report (10K) Filed on March 30,1998
The Company has also developed its own line of scientifically color coordinated proprietary cosmetics ("My Colors by Chromatics(TM)") and scientifically color coordinated proprietary color charts and material swatchpacks for use in the cosmetics, beauty, dental and fashion industries. The Company's Colormate(TM) System products, cosmetic line and material swatchpacks are referred to herein, collectively, as the "Beauty-Aid Products."
....Although the Company from time to time has been engaged in preliminary discussions (including limited consumer testing and Chromaticity Study activities) for use of its technologies in the cosmetics and beauty aid fields, until the Company completes successful marketing and distribution of its Colormate(TM) Bilirubin Device, the Company does not expect to engage in significant additional efforts in the cosmetic and beauty aid industry and has temporarily reduced active marketing of its cosmetics products.
.....The Company also entered into leases and licensing agreements with respect to its Colormate(TM) System with Gordon Laboratories Inc. ("Gordon Laboratories")* and IMS Cosmetics, Inc. ("IMS"), as well as with various beauty-related businesses and beauty salons. In this regard, the Company recently completed its line of custom blended foundations for Gordon Laboratories, and has completed with IMS its new line of foundations, lipsticks and blushes.
....The Company previously marketed its cosmetics, My Colors by Chromatics(R), through the use of the Colormate(TM) units. The previous cosmetics line included underbase makeup, eyeshadow, blushers, eyeliner pencils, lipliner pencils, lipstick and nail polish, and was manufactured to the Company's color specifications by private label manufacturers, including IMS. The Company is not currently actively marketing this line, and renewed cosmetics marketing efforts will be based on a new line as discussed below.
....The Company has developed in conjunction with IMS, a completely new line of cosmetic products featuring new formulas and updated packaging, but which will continue to track the Company's existing scientifically determined classifications and product shades. The Company anticipates marketing the new line in the second quarter of 1998.
The Company believes the new cosmetics line will be comparable in quality and performance to cosmetics sold in leading department stores, but generally will be priced lower than the cosmetics sold at the prestige end of the market.
In addition, in conjunction with the Gordon Laboratories contract, the Company has completed a new product line consisting of custom blended foundations, which will be color compatible with the Company's new cosmetics line.
The Colormate(TM) System makes use of only skin coloration in assigning each complexion to one of approximately 200 measurable skin color categories. Each category is then assigned to one of four broader product color categories.
The Company's cosmetics are divided into these same four color classifications, and the product shades in each have been scientifically measured and balanced chromatically to be compatible with the approximately 200 skin colorations within the four broad classifications. The product shades recommended by the Colormate(TM) System are individually prescribed for color coordination with each of the approximately 200 skin color categories.
The Company's cosmetics line is scientifically formulated and balanced to provide color coordinated products for the skin color of all races. Each product shade also has been measured and cross-balanced to be compatible with all other shades in each of the four broad classifications, so that the colors blend together, and color coordinate with each other after they are applied.
Other than the units provided to IMS and Gordon Laboratories, the Company has leased or intends to lease the Colormate(TM) units for cosmetic use to beauty salons, beauty-related businesses, direct sales representatives and distributors and specialty stores
(i) at a monthly rental fee ranging from $165 to $250 (depending on the length of the lease terms), if rented on a full-time basis, and at a proportionately higher rate if the machine is leased for shorter periods, or
(ii) on a minimum monthly guarantee cosmetic product purchase basis.
The Company sells its Beauty-Aid Products for resale to the public to persons leasing the Colormate(TM) units and licensing the Intellectual Properties. The Company intends to sell "tester" sets of its new cosmetics line, in connection with the placement of the Colormate(TM) units, in order to stimulate cosmetic sales.
The Company's marketing plan currently anticipates that the skin color analysis capability of the Colormate(TM) units will be marketed in conjunction with the Beauty-Aid Products at a variety of price points--i.e., the color analysis alone will be priced at $25 and the analysis will be done on a complimentary basis for a customer who purchases Beauty-Aid Products for at least $25.
* - techstocks.com - Gordon Laboratory News 12-16-96
* - gordonlabs.com |
