UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 9, 2004
ADVANCE TECHNOLOGIES, INC.
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(Exact name of registrant as specified in its charter)
NEVADA 0-27175 95-4755369
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
716 Yarmouth Rd., Suite 215
Palos Verdes Estates, CA 90274
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(Address of principal executive offices) (Zip Code)
(310) 265-7776
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Registrant's telephone number, including area code
Not Applicable
_____________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below of the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 OTHER EVENTS.
Enhanced Vision Market Factors
Advance Technologies Inc. has received numerous inquiries in the last year with
regard to the Enhanced Vision market. It is obvious that more information could
be helpful to our shareholders. Accordingly, this paper has been prepared to
shed additional light on EVS and how those factors could affect our future. It
does not provide any new information, it merely expands upon and consolidates
information already available through public sources.
The initial EVS certification and the production was for aircraft models in
production. The launch customer offered EVS as optional equipment to their
buyers. The buyer response was so strong that within 6-9 months, EVS was
incorporated into the baseline as standard equipment.
For the first year, production increased each quarter to maximum rate in early
2003. At this rate most of the units were designated for retro-fit of delivered
aircraft. These aircraft had been delivered prior to certification without EVS
installed. Once this backlog is satisfied, we expect unit sales to decline to
the base aircraft monthly production rate.
Early in 2003 the launch customer received inquires from previous buyers of
older models. They were interested in the availability of EVS for their
aircraft. As a result of this interest, the launch customer initiated an EVS
certification effort for these earlier aircraft models. This effort resulted in
FAA certifications in late 2003 and early 2004. The launch customer has
established a retro-fit program that combines the EVS retrofit modification with
normal scheduled maintenance. This strategy makes EVS installation more
affordable and reduces the time period that the aircraft is out-of-service.
There has been no information released on booking or sales.
In late 2003 our licensee signed an agreement with a new customer. This event is
significant for several reasons. The most obvious effect is the new customer
will provide additional sales. Less obvious, but equally important, is this
customer is the first end-user. He is not an aircraft OEM, but an owner-operator
of a fleet of aircraft. The largest market envisioned for EVS is the end-user
operator. An FAA Flight Operations Rule change for EVS was adopted early 2004
making certification easier for EVS. And lastly, the completion of this contract
will add four new aircraft type/models to the list of FAA Supplemental Type
Certifications (STC) approved for EVS.
These factors as well as others will affect our future sales and royalties. We
cannot predict or project with any degree of accuracy the size of our EVS
market. At the end of June 2004, we were within 16 units of meeting the second
level of royalties specified in our agreement.
The competitive nature of commercial aviation industry limits access to reliable
information. Our licensee and launch customer release very little information.
Advanced Technologies recommends that interested parties periodically review the
websites of Kollsman.com and Gulfstream.com for the most current information.
Lack of data clouds future events. When data is available, the information
should be used with caution. We hope this discussion provides additional insight
into the EVS market and some of the market factors Advanced Technologies cannot
guarantee future events due to factors and conditions beyond our control.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: September 9, 2004 ADVANCE TECHNOLOGIES, INC.
By: /s/ GARY E. BALL
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Gary E. Ball
President and Director
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