[rayofsi]

I am afraid that this is exactly how this will play out. Latest post on the campaign is that they reached 100k that seems hardly enough to get the remainder of the units out to 10,000+ backers or whatever that number is.

~13,000 units from kickstarter.. indiegogo probably around 13k or more units.. thats probably 5 mil in production costs just to fulfill the initial pledges. before factoring in shipping costs and all.
i am pessimistic.. for sure.

 

[Richter Di]

It's a big marketplace and they've spent a lot on advertising (which was stupid when satisfied customers could have given them free advertising!).

I fully agree.

~13,000 units from kickstarter.. indiegogo probably around 13k or more units.. thats probably 5 mil in production costs just to fulfill the initial pledges. before factoring in shipping costs and all.
i am pessimistic.. for sure.

Me too. Sunk money.

 

[Snakeeyz99]

~13,000 units from kickstarter.. indiegogo probably around 13k or more units.. thats probably 5 mil in production costs just to fulfill the initial pledges. before factoring in shipping costs and all.
i am pessimistic.. for sure.

Ossic mentioned in their StartEngine that production costs per headset are $175, so the costs are a mere 2.2 mil Before factoring in shipping costs of course. I asked Jason how much it would take to deliver preorders fairly early into the campaign when Ossic was still answering questions and he mentioned the following:

Yes the manufacturing cost for the entire backlog is ~ $2.2 Million. We will need to raise an additional $1 Million to enter full-scale production of the first production batch, and over $2.2 Million before we will be able to enter live sales for new units, Income sources during this period will include this campaign, ongoing pre-sales, and other sources of investment.

To me this seems to be saying that Ossic cannot begin to deliver headsets until they raise 1 million, but at the same time they're not reopening orders until they can manufacture the whole backlog. The shadiest part, to me, is what Ossic plans to do if they cannot achieve whatever funding they hope to reach. I'm trying to be somewhat optimistic, but it's clear that the 2 million they spent last year on marketing did not do much to save their reputation among the most likely people to invest in them.

 

[Letmebefrank]

So, shouldn't the money you guys paid in the Kickstarter cover the production and shipping of your item? If not then What was the money going towards?

 

[Snakeeyz99]

So, shouldn't the money you guys paid in the Kickstarter cover the production and shipping of your item? If not then What was the money going towards?

If the financials in the StartEngine campaign are correct, 25% (800k) went to administrative needs (assuming this includes patents and litigations), 25% (1 mil) went to R&D, and 50% (2 mil) went towards marketing in 2016. Ossic currently has assets valuing at $1,420,516 and liabilities valuing $5,596,479, 3 mil of which is deferred revenue and will be considered assets once all preorders have been delivered.

It's worth noting that Ossic had also contributed not only a bunch of their personal money but have also taken out some hefty loans to cover their costs.

 

[Letmebefrank]

If the financials in the StartEngine campaign are correct, 25% (800k) went to administrative needs (assuming this includes patents and litigations), 25% (1 mil) went to R&D, and 50% (2 mil) went towards marketing in 2016. Ossic currently has assets valuing at $1,420,516 and liabilities valuing $5,596,479, 3 mil of which is deferred revenue and will be considered assets once all preorders have been delivered.

It's worth noting that Ossic had also contributed not only a bunch of their personal money but have also taken out some hefty loans to cover their costs.

It seems like they should have spent that money on manufacturing and shipping the pre-orders to the people who gave them the money, instead of spending it on marketing.

 

[Sordel]

It seems like they should have spent that money on manufacturing and shipping the pre-orders to the people who gave them the money, instead of spending it on marketing.

With their cash burn the thing basically had to follow the logic of a Ponzi scheme, with later purchasers paying for the construction of early orders. There's a route to viability in such a strategy if you can get enough orders to pare down your production costs but they've taken too long to get a product and their social media campaign was torpedoed (rightly, in my mind) by people jumping on to attack the delays.

I'd feel sorry for them but look how they've behaved: the cynical way that a representative of the company jumped into this thread just as they were announcing a new public funding round and then disappeared just as quickly with questions unanswered. All we've seen from them is bad faith.

 

[Richter Di]

..., but it's clear that the 2 million they spent last year on marketing did not do much to save their reputation among the most likely people to invest in them.

It seems like they should have spent that money on manufacturing and shipping the pre-orders to the people who gave them the money, instead of spending it on marketing.

I do not know how often I saw their advertisements. Everyday, everywhere I went, and I had allready bought into the project with 1000 Dollars as a Development Backer.
Instead of marketing they should have invested their time in meaningful conversations with their backers and the development and production of the headphones.

 

[PR4XXIS]

I am seeing a number of folks who do not appear to be devs but rather random online personalities that seem to have gotten OSSIC sets https://twitter.com/ossicvr?lang=en How does this even make sense? Also can we reach out to them for their thoughts on the noise floor UFOkillerz mentioned? I doubt they would have a clue about it, but worth a shot.

 

[Sordel]

I checked out the comments on the Kickstarter today and there are a lot of worrying stories of people in the Ossic company who have basically moved on to other jobs in the industry. It looks like the company may only exist right now in order to survive until August, when it will pay remaining money out to the founders. It's reported there that Jason Riggs has moved back to Las Vegas.

 

[PR4XXIS]

Makes me wonder if anyone cares to snatch up the tech? Seems to make no sense for them to just burn up. Unless they talked up a smoke and mirrors campaign.

 

[Richter Di]

Makes me wonder if anyone cares to snatch up the tech? Seems to make no sense for them to just burn up. Unless they talked up a smoke and mirrors campaign.

In my personal opinion there is not so much tech. The measurement of the head is also done by Waves NX Virtual Mix Room.


Trying to integrate multiple speakers was allready done by several companies. So which tech?

 

[RRod]

To me the tech was the larger form factor that might have given multiple drivers a real chance for once. Oh well, guess we'll see if the Mobius can beat OpenAL.

 

[Snakeeyz99]

Makes me wonder if anyone cares to snatch up the tech? Seems to make no sense for them to just burn up. Unless they talked up a smoke and mirrors campaign.

It makes sense that they would want the company to be acquired... according to some of the promissory notes in the documents from the StartEngine, the payout to the various Ossic employees would be triple what is owed if the company is acquired. One example:

On November 29, 2017 we issued Jason Riggs, our Chief Executive Officer and a Director, a Group A Subordinated Promissory Note in the principal amount of $25,000, that accrues interest at 5% per annum and is due and payable on the earlier of (i) August 24, 2018, (ii) a change in control, or (iii) the closing of a financing transaction in the aggregate gross amount of at least $5,000,000. As of February 1, 2018, $25,219.18 in interest and principal were outstanding under the Note. If at any time prior to the maturity date of the Note, we intend to consummate a Change of Control, we must pay Mr. Riggs, three times the outstanding principal amount due under the Note.

I really, really wanted to believe in Ossic, but after the StartEngine campaign I'm finding it very difficult.

 

[PR4XXIS]

In my personal opinion there is not so much tech. The measurement of the head is also done by Waves NX Virtual Mix Room.


Trying to integrate multiple speakers was allready done by several companies. So which tech?

It is not all about the drivers or head measurement, I am aware others are doing so as well. However their anechoic chamber is interesting, AFAIK no other headphones are doing this. I am more concerned with the algorithms they use to determine positional audio. As we all know that 3D audio software can make or break the illusion accurate sound mapping. Just look at Aureal and any other number of 3D audio software out there today.