I just wanted to give everyone an update to let you know that getting the Harmony system TSO certified is still in our plans. However, I am still not sure exactly when we have it complete and we cannot make any predictions. There are a lot of factors involved, some I have already discussed, others I have not.
First, the rollout of the Harmony system has been difficult in many regards. We blazed a new trail, utilizing techniques and manufacturing methods we were not familiar with, which had a steep learning curve. We made mistakes in the design and manufacture of Harmony; we have taken full responsibility for fixing them and have made sure that our customers have been taken care of. Unfortunately, this has put a significant burden on the company's resources. While I wanted to get the TSO done as soon as possible, it was more important to keep the company afloat.
To add a bit more context to this decision, customers needing TSO certification account for about 10% of sales. While this is not an insignificant number, it was simply not high enough to justify the risk of diverting valuable resources to capture this segment of the market.
Second, the new testing requirements are significantly more complex and require a great deal more testing than ever before. This is a double whammy by making the tests both more difficult to pass, and more expense to actually perform. Quite simply, you have to know you will pass a test before you even consider performing the official testing. There is no money back guarantee if something doesn't pass a test. When a single set of tests can cost $25k, going in half cocked is a big gamble. While the Harmony was designed with these tests in mind, we are also dealing with the added testing requirements of the headphones, which are made by a third party. These are what are proving the most difficult part to get through testing.
On the bright side, UFlyMike is now doing very well; I am very happy with the quality of our product, with my exemplary staff and have heard the same from many of our customers. Harmony was designed from the beginning to be a forward moving product, to be a system compatible and adaptable into the future. If I am able to play my cards right in the initial TSO testing and certification process, I could greatly streamline and simplify the process for ourselves in the future, allowing for many headphones to be compatible and TSO certified with Harmony.
The one thing I have learned from the Harmony rollout is to take my time and do things right the first time. That is what I am doing with the TSO. Thank you all for your patience and understanding while we move forward. We hope to continue serving you with the quality of product and quality of service UFlyMike has come to known for.