Production update January 2018

January has been an incredible month at Yirego. We are managing multiple manufacturing lines and have made a lot of progress. All die-casting parts, including the drive units have passed 100% inspection and demonstrated a manufacturing ability in excess of 1000 sets per month. Salt spray tests were performed on the stainless steel drum with 4 different types of protective finish, a winner was selected base on the corrosion resistance result.

To date, our primary production constraint has been with our bearing supplier. The combined complexity of one-way design and high corrosion resistance requirement has taken these bearings longer to produce than expected.

We have redirected our energy and focus to address this issue and confident the right solution has been found. Shipping arrangements have been made for February we will send out an update when its been handed off to our shipping partners. We expect a gradual ramp up through Q1 as we continue to focus on quality and efficiency rather than quantity and speed, likely ending the quarter at a monthly rate of about 500 Drumi units. We intend to achieve 1000 units per month by the end of Q2.