Cyalume Technologies Holdings, Inc. was organized as a blank check company
under the laws of the State of Delaware on July 19, 2005. At that time we were
named Vector Security Intersect Acquisition Corp. On December 19, 2008, we acquired
Cyalume Technologies, Inc. (“CTI”) and changed our corporate name
to our current name. CTI is a Delaware corporation formed on March 27, 1997
with headquarters located in West Springfield, Massachusetts. At the date of
the acquisition, CTI had one subsidiary, Cyalume Technologies, SAS (“CTSAS”),
located in Aix-en-Provence, France. CTI and CTSAS primarily produce an assortment
of chemical light and reflective products for the military but also for commercial
markets to a much lesser extent.
Our primary focus is providing tactical and training solutions to the military
of the United States, and other select countries, through both products and
services. We manufacture chemical light, reflective and battlefield effects
simulator products while our services include planning and implementing tactical
training exercises simulating real-world experiences. We also sell the chemical
light and reflective products into the law enforcement, commercial, and other
markets. In addition, we provide specialty chemical products to the defense,
pharmaceutical, cosmetic and other markets. We employ the following strategies
to seek to provide for long-term success.
· Utilizing Patent Protection. We have pursued and expect to continue
to pursue patent protection of developed technology and to aggressively defend
against violations of our patents.
· Making Environmentally Friendly and Safe to Use Products. Our products
are designed to be effective, safe to use and friendly to the environment. Chemicals
used in our chemical light products are non-toxic and phthalate free.
· Increasing Product Diversification. We intend to continue to diversify
into additional products and applications utilizing current technology and technology
now under development. Product diversification allows us to present a more complete
line of products that meet current and projected user needs, as well as reducing
dependence on a relatively small number of products for financial and competitive
success.
· Continually Improving Products and Performance. We are committed to
product improvement and rely on a dedicated in-house team of highly experienced
engineers and chemists who are complemented on an as needed basis by third-party
expertise.
· Pursuing Strategic Partnering and Acquisitions. We actively seek partners
who can help us advance our technologies or introduce products to the market,
especially where established partners may help us attain faster market penetration.
In addition, we are seeking additional businesses to acquire that will complement
our existing products and further strengthen our ability to achieve profitable
growth.
· Chemical Light
We primarily sell chemiluminescent devices, primarily light sticks in varying
colors, lengths and durations of light output, as well as flat chemiluminescent
disks and reflective patches and belts. The primary users of these products
and services are the U.S. Military and European militaries participating in
the NATO Support Agency f/k/a the NATO Maintenance and Supply Agency (“NSPA”).
Critical events, risks and uncertainties regarding the military market include
the continued use by the U.S. and NATO militaries, the ability to remain on
the cutting edge of chemical light technology, the ability to generate additional
uses of our products by additional militaries around the world, and managing
costs to remain competitively priced. There are also uncertainties of future
price increases customarily found in the renewal contracts which would affect
revenues and results of operations.
· Ammunition
These revenues represent sales of chemiluminescent payloads and components that
are incorporated into training ammunition.
Critical events, risks and uncertainties regarding the ammunition market include
the expansion and acceptance of the existing products to the United States military
and other foreign militaries and the level of budgetary funds available for
such products.
· Training & Simulation
We sell battlefield effects simulator devices and training services.
The critical risks and uncertainties in the training & simulation market
include the level of budgetary funds available for such products and training;
maintaining a stable of products considered relevant to current real world experiences
and competitors seeking to expand their markets.
· Specialty Products
Through CSP, we provide specialty chemicals to a variety of customers including
chemical, defense, cosmetic, nutritional supplement and pharmaceutical companies.
Critical risks include our ability to continue to provide existing and new products
at competitive prices while adding value to our customers that will help distinguish
us from competitors.
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