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Material Technologies Inc. (OTCBB: MTTG)
Untitled Document
Material Technologies Inc. (OTCBB: MTTG - Matech) is an engineering company that provides technology solutions for detection, measurement and monitoring of metal fatigue in metal-based structures and equipment.
The Company holds exclusive patent rights to several technology products including Electrochemical Fatigue Sensor and Fatigue Fuse. This technology can measure and monitor microscopic cracks in metal structures, and thus help prevent disastrous structural failures. These products have wide-scale applications in evaluating America's aging bridge infrastructure. Matech also plans to market its technology to operators of windmills and antenna towers, highway signs and aircraft.
The Company is primarily focusing on the bridge market in the US where the bridge infrastructure is old and in need of repair. According to the Federal Highway Administration, 29% of the bridges in the US are more than 50 years old and urgently require checking for fatigue and cracks. It is estimated that nearly 100,000 bridges in the US are structurally deficient and require immediate attention.
Matech's technology has applications in a variety of markets, including highway and railroad bridges, steel buildings, turbines, windmill and antenna towers, aircraft and marine vessels in the US and abroad.
The Company holds patent rights to several products for detecting metal fatigue. It has developed the Electrochemical Fatigue Sensor (EFS) and Fatigue Fuse technology. While EFS identifies minute cracks in a metal structure, Fatigue Fuse continuously monitors structures and detects accumulated fatigue immediately. The Company has negotiated several contracts to install its products on bridges in the US.
The Company's technology is easy to use and requires minimal training. Unlike other available technologies which are limited to only identifying cracks, Matech's EFS system can also detect the potential widening of the cracks well in advance. The system also consumes less power and can work on battery if external power is not available.
In August 2006, the Company acquired Materials Monitoring Technologies, Inc. from UTEK Corporation. MMTI has worldwide licensing rights to patented inventions which include "Sensor Array System" and "System for Damage Location Using a Single Channel Continuous Acoustic Emission Sensor". This acquisition provides Matech with an additional proprietary technology for structural damage detection.
The Company's potential client base for its EFS system include the US government, the 50 states and local agencies, 42 bridge authorities, 3 military agencies, 48 railroads, 28 privately-owned entities and approximately 200 first and second level bridge inspection companies. The Federal Government is responsible for constructing bridges whereas the individual states maintain the Interstate Highway network. This separation of funding for construction and maintenance leads to maintenance problems; in particular, it has led to a steady decline in maintenance and rehabilitation research. Companies such as Matech can fill the void by providing a more cost-effective inspection alternative.
The Company has restricted its focus to the bridge inspection market, where there are few competitors. Since the market is technology-driven, the threat of new entrants is low. Also, the long gestation period involved in developing new technologies is a deterrent for potential new competitors.

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