Latest / Financial Survival Network / No More Counterfeits -- Roei Ganzarski #5824

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No More Counterfeits -- Roei Ganzarski #5824 · Financial Survival Network

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  So it's approached to try and identify fakes, which is what a lot of
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  other companies do. And then you can't identify gray market because that batch will
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  come in stolen, but it'll identified as real because they are real, or
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  something that's expired will be identified as real even though it's expired. You're listening
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  to Carrie Lets's Financial Survival Network where you get valuable information you just can't find
• 0:23
  anywhere else to thrive in today's trying times. You need the Financial Survival Network
• 0:29
  now more than ever. Go to Financial Survival Network dot com and get your
• 0:34
  free newsletter and gift. Financial Survival Network now more than ever. Welcome.
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  You aren't listening to watching the Financial Survival Network. I'm your host, Carrie
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  Lets. Well, we've got a new technology that I personally find fascinating.
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  I'd love to tell you the ticker symbol and where to buy it, but
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  you can't now because it's private. But it's definitely a company that you need
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  to keep track of, keep watching for. And the CEO is with us,
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  Roy Ganzariski. The name of the company is Alphaeum and right, great
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  to have you on. So if I have it right, you've got a
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  basic process that enables authentication verification of items without putting on a without it putting
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  an etching a serial number, anything else. It can be uploaded to the
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  blockchain as well. Why did you elaborate on that for me and explain why
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  it's so important and why the potentials there for investors? Hi, Kerry,
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  Yeah, you're absolutely writing. Thanks for having me on ALKI on basically fingerprints
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  items. If you think and you ever watched CSI or any one of those
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  cool spy movies or police movies where they find a fingerprint of someone and they
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  want to identify it is, they'll compare it to the database and find the
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  bad guy, if you will, by comparing fingerprints, so they don't need
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  a driver's license, a passport, a badge. The fingerprint is all you
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  need to identify irrefutably that person. We have done the same thing for items.
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  What we found is that every item has inherently a type of fingerprint.
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  We call it a feature print that we have developed a way to identify and
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  codify. With just a camera, industrial camera, iPhone, a regular standard
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  off the shelf camera, we can take a picture of an item. Our
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  software, our AI algorithms will then identify on that specific item. It's unique
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  fingerprint codified into what we call a feature print, and store it. And
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  then one day you, your customer, your supplier, whoever it is,
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  can take another picture of that item and will create again that feature print,
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  compare the two and be able to tell you is that in fact or what
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  is that in fact specific item. So if you think of the proverberal can
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  of coke or black cat, we won't just tell you that's a can of
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  coke or a black cat like many software systems will do. We will tell
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  you that is can of coke number one seven seven dashed three that came off
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  of that machine on this date, and this is your black cat. So
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  unique identification per item, no need to add anything to it, like you
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  said, no barcodes, no stickers, no tags, nothing, just a
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  picture. Hey, maybe my dry cleaner could use that because I'm keep it
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  track of stuff, right, So we actually do things like collectible jerseys and
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  stuff like that as well, because yeah, they may be misplaced, right,
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  And so therefore if a dry cleaner use the process for every I mean,
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  I guess it'd be hard if there's a wrinkle or something in the shirt.
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  But maybe it can figure all that out or were the way the labels
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  are fixed. It's amazing how many unique identifier identifiers there are, whether it's
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  your retina, your ear, your face, like Apple matches your face yep.
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  So so you could take a picture of my face and basically say this
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  is so and so, and then they could search it in any database,
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  whether it's TSA or wherever, going into a government building. So we don't
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  do people. We only do items. And the key there is, if
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  you think of it, all the counterfeits and the gray market stuff that goes
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  on. Now I'm not talking about the Louis Beaton bag that you buy on
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  the corner of Canal Street, right, those are counterfeits. The person selling
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  them tells you it's fake. You buy them for fifty bucks. You know
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  their faith and Louis Betan doesn't think they lost a customer, right. I
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  mean, it's still bad for the brand, it's bad financially, it's illegal,
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  But we're talking more of when you go and buy a five thousand dollars
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  Louis Beaton bag thinking it's real. The persons selling you think it's real,
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  but it actually isn't because somewhere in the supply chain, there were swapped.
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  We're talking about brake pads for cars that are fake medicine that is expired,
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  taken off the shelf by some bad guy, changed the date and now selling
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  it as if it's not expired. We're talking like really bad actors doing bad
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  things, and we'd eliminate all of that by taking a picture. So this
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  could be a very anti Chinese piece of technology, because let's face it,
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  we all know that the majority of counterfeits emanate from China. Maybe I won't
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  get a visit to go. Yeah, it'll be enemy number one. Yeah,
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  that's right. I see if you try to go, I see a
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  re education camp in your future. Well that's it's kind of exciting. So
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  you've you just went through your a round. You've been around since twenty seventeen.
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  You told me pre call and BMW is the lead investor. That's right,
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  right, So what was it to BMW saw in this technology that made
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  him pony up substantial funds? I mean, if you think of how both
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  supply chain manufacturing, what's called manufacturing four point zero, and of course counterfeit
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  gray market items work, they'll impact the automotive industry automotive parts as they go
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  through the supply chain can't always be marked. If they can, it's usually
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  with stickers or things like that that fall off can be scratched, and then
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  the part is subtly unused. And you can imagine that automobile makers as well
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  as others like transportation, DoD luxury goods want to know what parts they have
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  and that they're the right parts that they're being that they're installing. And on
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  the flip side of that, the counterfeit gray market side. The automobile industry
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  is a forty five billion dollars a year counterfeit industry, meaning brake pads,
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  air bags, seat belts, and then of course wheels. Other things are
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  counterfeited on a regular basis and brought in here to the United States. I'm
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  not talking about, you know, fakes in Africa, in Eastern Europe.
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  We're talking here in the US. Even tremendous amounts of counterfeit parts for cars.
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  So that's why someone like BMW is interested in technology like ours that basically
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  eliminates that and becomes the last technology you ever need, because there's not about
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  we have the next cool sticker, the next hologram, the next additive.
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  This is really about not needing anything but a picture of the item itself.
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  Or what if you try to like alter a part or something like that,
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  is it going to come up as a counterfeit then no, Actually, the
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  technology is very robust. That's why it took us about five years to really
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  develop into a point where we have no false positives in production, meaning I
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  will never tell you that a fake part is real by mistake. I will
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  never tell you that Part A is actually part B by mistake. No false
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  positives. And so to do that, we've gotten to a point that you
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  can scratch up the item will still identify it. We can take a flat
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  piece of sheet metal then turn it into a part for up a car or
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  playing something else and still identify after ex gone through the stamping machine. And
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  so this system is fairly robust to change wearing, tear, etc. So
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  counterfeit parts in the aviation into tree a big, big problemtually, Like counterfeit
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  fasteners, Yeah, that's right, a million to them. How long would
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  they take it to scan a million airplane fasteners? And not while at all?
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  I mean you think of it. The easiest way to do it is
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  within the production line, so where these fasteners are made, instead of trying
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  to do something special at the end of that production line or before shipping,
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  wherever that fastener is that you know is the original fastener, you take an
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  image of it. It could be fully automated if you have an industrial camera
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  sitting on top of the production line. As the fasteners go by, you
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  take a picture of every single one of them. Then when the manufacturer gets
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  those fasteners, either in receiving or literally as a technician is about to install
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  them, they could take a picture of them with their phone. It'll tell
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  them, yeah, this is in fact an authentic fastener. It'll even tell
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  them this is fastener number one, two, five dash eight that came from
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  this supplier and arrived on this date into your bloating dock. If they can
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  go down to that detail. And so if somebody hijacked a load of fasteners
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  and then they go to sell them and the manufacturer basically or the distributor reported
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  this batch stolen, right, then you'd instantly know they were stolen right exactly.
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  So that's the beauty of what we do so as approached to try and
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  identify fakes, which is what a lot of other companies do, and then
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  you can't identify gray market because that batch will come in stolen, but it
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  will identified as real because they are real, or something that's expired will be
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  identified as real even though it's expired, because we focus on identifying the original
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  with all the associated data. We will tell you, yeah, that's a
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  real faster but by the way, it was supposed to be delivered to this
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  company, not to you, or it was just reported stolen, or it's
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  expired. And let's say it's medicine. So we can actually not only tell
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  you if it's fake or not, but tell you if it's gray market,
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  tell you if it's about to be used incorrectly. Maybe it's a real fastener
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  that you have legally, you're about to install it on the wrong body aircraft
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  and you did it by mistake because they're so similar. So we can even
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  avoid human error based on misidentification. Well, that's really amazing. How did
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  you conceive it this? How'd you come up with the idea of right?
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  So our two founders are two mathematician founders are geniuses and very experienced when it
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  comes to optical AI or machine vision. If you've ever seen kind of movies
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  of the mail room and thousands of letters go through this conveyor belt, and
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  something's reading these envelopes and packages and sorting it through the country. These guys
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  did that in nineteen ninety four, and so they know how to take pictures
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  of things, apply to really advanced mathematics to it to solving problem. It
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  was mail before, and then they spun out or sold that company and created
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  a Litheon which basically does very similar thing, but in a complete different sense.
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  It takes a picture of something, applies really advanced mathematics to it to
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  solve a big problem. In this case counterfeits gray market traceability, so they
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  could do this or money too, right, and then you could track money,
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  so we do it money, point baseball cards, shoes, art,
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  and then of course breakpads, medicine, so he could be the full gamut
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  of any physical item. What do you think the most useful application, most
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  important application of this technology is going to be roy I think it's going to
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  be medicine, car plane parts, things that basically the consequence I'm getting it
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  wrong, our lives right there. Today, for example, uld have been
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  caught HIV pills, fake condoms, fake all sorts of vaccine, fake breakpads.
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  We talked about fate. When you get those wrong, or when those
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  fakes go in your car, in your body and they're wrong, you can
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  die. And so to me, that's the most important mission we're on is
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  solving those interesting, very very interesting, and I see the applications are many
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  fault and literally industries all over, especially Rolex watches, things like that you
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  can authenticate I guess you can authenticate the Rolex, but then they could replace
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  the insides of it. So actually interesting lean up when we deal with a
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  luxury goods and watch items exactly like that. They identified the watch in four
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  places, so well they'll take images of outside, front and back and the
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  inner movement and so no, you can't even replace the chain and try to
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  trick the system. The system will actually say, for example, the watch
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  is real, but the movement inside is not. Or the watch and movement
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  are real, but someone's replaced your bracelet. We can catch all of that
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  again with photo. It's amazing, it's pretty cool stuff. Vacations. Yeah,
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  this is going to be a global standard. I assume you've got substantial
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  intellectual property associated with this too. We do. We have literally tens of
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  patents. Over forty five patents already approved around the technology. And so while
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  there may be a lot of copycats out there of our tech, are the
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  patterns around our technology or substantial? All Right, So give us an idea
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  when you expect this company might go public. I hope we can talk about
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  that in the next twenty four months. That's the kind of the goal is
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  to grow rapidly. But first of all, the focus is solve the problems.
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  Then IPO etc. Will come later, right, Yeah, and you've
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  got revenue now right? Yeah? We do. Yeah. We have customers
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  in both Europe and here in North America in five distinct segments that we work
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  in. Luxury goods collectibles, arts is one. Transportation, so car parks,
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  playing parts is the second, DoD or DoD related suppliers is the third,
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  Pharma and medicine or medical is the fourth, and then precious metals,
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  gold, silver, et cetera is the fifth. It's really cool. Hey,
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  well it sounds pretty amazing. I hope you'll come back on when you're
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  ready to do your IPO. Because you're privately held, I can't ask you
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  a lot of questions stand but BMW is a lead investor can you tell us
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  whether they're using technology yet? I can't tell you, but they are lead
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  investment. Okay, well we'll leave it at that. Hey, people want
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  to find out more about you, Roy the company. Where do you go?
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  How do we connect with you? You can go on our website www.
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  Dot elethion dot com. You can also follow us on LinkedIn, or
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  just send us an email at info at eltheon dot com and we'll be happy
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  to answer a weegain. Great, great, Well, we really appreciate you
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  coming on the show. We'll have a link to Elthion dot com in the
• 14:31
  show notes to this interview on Financial Survival Network dot com. Make sure when
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  you're at the site you go sign up for your free newsletter. Roy.
• 14:39
  Great luck on This sounds really exciting and we'll look forward to the next interview.
• 14:43
  Thank you, Carrie, I appreciate it. Thanks for listening to Carrie
• 14:46
  Lets's Financial Survival Network, your solution to today's trying times. For the latest,
• 14:54
  go to Financial Survival Network dot com. Financial Survival Network now or than ever,