Braintech: Intelligent Vision

Being Public Isn't Cheap

We've had a flurry of SEC filings in the last few months (10-KSB, 10-QSB, 8-K's, Amendments to 10-QSB, and S-8s). All of them necessary and important to understand the financial condition of Braintech, but preparing and publishing these disclosures and statements are time consuming and expensive. To be sure, we are exploring methods of realizing the same transparency to our owners and shareholders (such transparency, I believe, is key to effective communications) without incurring the expensive legal and accounting fees involved not to mention the executive time. I am just not sure it makes sense for any micro-cap company to be public these days. We have incurred approximately $85,000 in the last few months in the preparation, legal and accounting costs of these SEC filings. We could have and should have applied these scarce resources to building the business. Anyway, today I want to talk about the future of the company.

For the last several months, we have been laser-focused on developing relationships with new companies in the consumer and military and defense sectors of the economy. The bottom line is to secure new contracts. This is uncharted territory for us, an initiative to expand our borders beyond the growing industrial base we have established through our strategic customer ABB. We've gone looking for companies that have the same qualities and great products in distribution that can take our technology and, by working with our team, can produce some ground-breaking work that will benefit us both. I'm pleased to report there are companies receptive to what we have to say and offer and we're making progress, albeit not at the pace we always expect. We have initiated our "90-day executive action plan" for this purpose. We are putting pressure on our sales and business developers to produce. There are no guarantees, but we're cautiously optimistic of forging into these new markets in 2008. When we do, this will be a completely different company.

We have a great relationship with ABB and are in the third and final year of our Global Exclusive Channel Partnership Agreement for industrial automotive and general industries products. We want to strengthen what has essentially become a TrueView product partnership. We're proud to have established such a brand and sustain a productive association with a global giant and hope we can continue this beyond 2008.

As I wrote about in the letter released with our 10-KSB filing for 2007, we achieved a break-even point in our operations and had our best year in terms of revenue. Those are good benchmarks for us and though we're happy, we need to increase and diversify those revenues while maintaining our margins and thereby create the operating leverage we mention so often. But we also intend to grow the company and we will need more investment to reach our objectives.

As part of the process of our year-end accounting review, the books were reviewed and, unfortunately, we found accounting errors relating primarily to non-cash stock and stock-option compensation in the first three quarters of 2007. It happened because we didn't apply new accounting rules that have come into effect in the last several years. It did not impact the overall financial health or cash flow of the company, but we did have to restate our financial statements for the opening three quarters of 2007. I can assure you this will not happen on my watch as we instituted a new procedure by forming an advisory board with one advisory member with substantial accounting experience on the advisory as well as on the Company's new Audit Committee.

We've put 2007 in the rear-view mirror. Our vision is on a bright horizon and we've moving steadily to reach it.

All the best,
Rick Weidinger
CEO & Chairman Braintech, Inc.

P.S. By-the-way, things are looking up. The A1 TEAM USA car, powered by (but not paid for by) Braintech, won last week in Shanghai, China. Look for us to be on the podium in London on May 4, 2008.

Welcome to the new Braintech, Inc., Web site!

By CEO & Chairman - Braintech, Inc.
posted February 29, 2008

Designing and creating our new Internet site has definitely been a labor of love. I believe the only way to accomplish something as important as this is to just immerse your team in its design, purpose and completion. You must make it a priority (along with all the others)--and we have. Although we fully realize this site will always be a work in progress, we have accomplished its first release in record time because we view our Web site as a critical business tool to be utilized by our employees, customers, shareholders, and business partners.

The first objective for launching the new Web site (within our first 90 days at Braintech) was to communicate the new beginnings and new direction of the company and to showcase the company's talent and the mission-critical technology, software and products that have been designed and created in our laboratory. The second objective was to begin a normal (without all the technology speak) conversation about our technology as well as to increase the awareness of our company and demonstrate how we can dramatically make our customers more productive. To be sure, Braintech.com will become the new face of the company and will illustrate our dynamic strategic direction as we move the company "up and to the right."

From our site, users will be able to chart our progress from our recently announced Random Bin Picking technology to the creation of three wholly-owned operating companies, Braintech Industrial Inc., Braintech Consumer & Service, Inc., and Braintech Government & Defense, Inc., to the launch, here and now, of our new marketing tag line--Intelligent Vision. We will approach different vertical markets with our technology to gain operating leverage and, I must admit, we get particularly excited about the possibility of pulling our existing business partners into these new markets with us. Although we will be moving our company headquarters to the Washington, D.C., area on or about August, 2008, we will be keeping our award-winning scientist and software developers in our laboratory in Vancouver, Canada. (Why fix it if it ain't broken?) Please be aware that you have an open invitation to visit us in beautiful Vancouver to see our amazing vision demonstrations of nine different, and counting, technologies/applications all running off of our eVF and Volts-IQ software platforms. These patent-protected platforms allow scalability, transferability and efficiency.

Our Web site is on a mission. The key drivers in the development of our Internet site were interactive content, organization, message and user experience. We hope you enjoy your visit to the new Braintech.com and that you are compelled to come back and visit us over and over to simply check us out, contact us about your interest in our leading-edge vision technology, suggest how we can best do business together, or just to say hello. Please feel free to contact us or send us any comments and/or questions any time. We have also asked Babak Habibi, our Chief Technology Officer, and Jim Dara, our Chief Sales Officer, to submit blog entries along with me every couple of weeks so we can stay in touch. I look forward to having another conversation with you again soon.

Lastly, be sure to check out our video on Gear Transfer Systems. It is in the Company section under Videos. It is my favorite video as the interaction of the robots set against music makes them come alive! Intelligent Vision!! However, I have asked our video folks to use U2 music next time --"It's a Beautiful Day."

All the best,
Rick Weidinger
CEO & Chairman - Braintech, Inc.