Energy Focus, Inc. and its subsidiaries engage in the design, development,
manufacturing, marketing, installation, and sale of energy-efficient lighting
systems. We operate in a single industry segment, developing and selling our
energy-efficient light-emitting diode ("LED") lighting products into
the military maritime market, and general commercial and industrial markets.
Recently, we have aligned our resources and focused our efforts on the sale
of our LED lighting products, in particular our military and commercial tubular
LED (“TLED”) lines of products, into targeted vertical markets.
Our goal is to become a leader in the LED lighting retrofit market by replacing
fluorescent lamps in general purpose and high-intensity discharge (“HID”)
lighting in low-bay and high-bay applications with our innovative, high-quality
TLED products.
We are committed to developing and bringing our high-quality, energy-efficient,
long-lived and mercury-free TLED products to our targeted military maritime,
government, and commercial and industrial markets to replace linear fluorescent
lamps in general purpose lighting applications and HID lamps in low-bay and
high-bay lighting applications. We believe there is a significant growth opportunity
for our business as the lighting market continues its transition to more energy-efficient
technologies such as LED lighting, driven by technological improvements and
emerging regulatory requirements. As the efficiency and cost of LED lighting
continue to improve, we believe that market adoption will accelerate, particularly
in commercial and industrial applications, due to the significant potential
for energy savings and the early stage of LED adoption in these applications.
We shifted our focus away from the turnkey solutions business operated through
our subsidiary, Energy Focus LED Solutions, LLC, which had historically incurred
lower gross margins, had fully exited the solutions business. In August 2015,
we sold our United Kingdom subsidiary, Crescent Lighting Limited. As a result
of exiting the turnkey solutions and Crescent Lighting Limited businesses, we
have eliminated all net sales and expenses associated with both businesses from
the Consolidated Statements of Operations and have reported the net loss as
discontinued operations.
The Company was founded in 1985 as Fiberstars, Inc., a California corporation,
and reincorporated in Delaware in November 2006. In May 2007, Fiberstars, Inc.
merged with and became Energy Focus, Inc., also a Delaware corporation.
Our LED products are more energy-efficient than traditional lighting products
such as incandescent bulbs and fluorescent lamps, and we believe they can provide
significant long-term energy and maintenance cost savings to potential clients.
Our strengths, which we believe provide a strategic competitive advantage, include
the following:
providing what we believe to be the only military-spec qualified LED fluorescent
replacement lamps for the U.S. Navy;
owning and controlling the development, design, and construction of our TLED
products to ensure performance, quality, and cost advantages;
providing our commercial Intellitube® product, which we believe is the first
single end powered TLED that is UL approved to work with both direct wire, as
a single ended lamp, as well as an end-to-end lamp for direct fit into ballasted
fixtures;
concentrated on developing and providing high-quality, price competitive TLED
lamps to replace fluorescent and HID lamps for commercial and industrial markets;
a long developmental history, with broad and intimate understanding of lighting
technologies and LED lighting applications;
establishing production capabilities for TLED products that will be “Buy
American”;
product inventory availability through carrying limited SKUs; and
a deep understanding of the adoption dynamics for energy-efficient lighting
products in existing commercial and industrial building markets.
Through our strengths, we seek to achieve the following objectives:
become the LED lighting leader in the targeted markets;
continuing sales growth and profitable financial performance;
further penetration of our military-grade LED lighting products to the military
maritime market, including both the U.S. Navy and allied foreign navy market;
replication of our success in the military maritime market by penetrating the
government and commercial vertical markets for our commercial LED lighting products;
and
a streamlined and high-performing organization that is focused on providing
industry-leading LED lighting products that generate energy savings and reduce
carbon emissions for our clients.
Our strategy to achieve these objectives includes the following actions:
continue to utilize our patents and proprietary know-how to develop innovative
LED lighting products that are differentiated by their quality, reliability,
adaptability and cost of ownership;
increase awareness and knowledge of our technology and offerings within our
targeted markets;
establish relationships with key clients and early adopters to demonstrate our
technology and value in targeted vertical markets;
rapidly scale our sales efforts to increase the penetration of our technology
in our targeted markets; and
expand selectively into geographical markets
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