NEW55 FILM ANNOUNCES SCHEDULE DELAY, REPORTS GOOD PROGRESS
Ashland, Massachusetts -- December 17, 2014 -- New55 Holdings, LLC, announced today that there will be necessary schedule changes to its New55 FILM project due to delays in materials. New55 CEO Samuel W. Hiser said "While we are not late - yet - it does look like the team will be delayed by longer-than-expected lead times from key suppliers. Certain industries move slowly, and we have to wait for them to supply us with custom materials, some which have not been manufactured for over a decade.”
Co-founder Bob Crowley remarked, "The New55 project has been unlike any conventional business and as a result we have the freedom to talk about our problems publicly. The last six months have been very productive with several discoveries and many problems, some which have been solved." Crowley added, “Key problems facing the team, and the release of New55 FILM, also involve long supply waiting times for critical materials.”
The project reported that manufacturing has started with certain subassemblies and film supplies. Many components are now in stock, but there are some remaining materials that are being developed. Progress with the all-important receiver sheet has been steady but difficult, and will take more time and possibly more money than expected.
The goal still is to begin the full production ramp and continue it through Q1 2015, but it will likely get off to a later than expected start. The team thanked supporters for their generosity and encouragement, as well as many interesting and useful suggestions. “Nearly all of the important assembly processes and tools that will be used in Ashland are in place and working, staff are trained, and important local services are in place. The assembly areas have been nicely outfitted, and we have recently built an additional assembly station that will be used to accelerate the production ramp. Good progress has been made.” said Hiser.
20x24 Studio's recent move to Ashland, which is a key part of the plan, has progressed. "We are pleased they are now neighbors and we work together every day," said Hiser. "We are attempting to build a small, sustainable industry, so our mutual goals are long-term.”
Reports on Financial Matters and Fundraising
New55's store will "go live" on schedule and offer minor products to first learn how to operate the store efficiently and to help pay for additional work that will need to be continued through 2015.
"New55 has a significant tax liability. Crowd-funding has advanced, but tax methods have not, so we are in the position of having to pay ordinary income tax on the Kickstarter proceeds. Fundraising in 2015 will also be income." explained Crowley.
Hiser and Crowley currently contribute as non-salaried volunteers. Pre-tax withholding for Crowley has been accomplished by charging the project and withholding an amount to partially cover required taxes. New55 facility owner Soundwave Research is paid a variable monthly fee for rent, utilities, heat, accounting and bookkeeping services, access to tools and machines, consulting fees, and transferred labor. Soundwave has charged New55 “at cost” as a temporary measure to assist the project. Transferred labor consists of technical and engineering time from Soundwave, consisting of three regular employees and two additional paid consultants.
Samuel W. Hiser