universal display corporation (oled)

Washington, D. C. Securities and Exchange CommissionC. 20549FORM 10-K(Mark One)[X]
Annual reports submitted under sections 13 or 15 (d)
Securities Trading Act of December 31, 2011 as of 1934 or [financial year]]
Transition reports submitted under sections 13 or 15 (d)
In the securities trading act of 1934th, the transition period from the _ ___ to the Commission file of the _ Commission
12031 General Display Company (
The exact name of the registrant specified in the articles of association)Pennsylvania23-2372688(
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
375 new Jesse 08618 Ewing Phillips Avenue (
Main executive office address)(Zip Code)
The registrant\'s telephone number, including the area code :(609)671-
0980 securities registered under article 12 (b)
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01 nominal value of LLCSecurities in the Nasdaq stock market registered under section 12th (g)
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The subsidiary\'s self-calculated common stock of the registrant referring to the sale price was $1,159,835,981 on the NASDAQ Global Market on June 30, 2011.
For the purposes of this calculation only, all executive officers and directors of the registrant and all beneficial owners exceeding 10% of the common stock of the registrant (
And its affiliates)
Considered a subsidiary.
As of February 23, 2012, the registrant had issued 46,144,532 shares of common stock.
The documents incorporated in the reference section of the registrant\'s 2012 Annual Shareholders\' Meeting proxy statement will be submitted to the Securities and Exchange Commission by April 29, 2012 at the latest as a reference for inclusion in Part III of this report.
Table for contentspart iitem 1.
Business project 1A.
Risk factor 15 item 1B.
Unresolved staff opinion item 22 2.
Project 3.
22 legal procedures for item 4.
The third part is the fifth mine safety disclosure.
Market 28 items 6 of the registrant\'s common stock, related shareholder matters and the issuer\'s purchase of equity securities.
Selected Financial Data 30 Project 7.
Management Discussion and Analysis of the financial status and results of the operation of 30 projects 7A.
Quantitative and qualitative disclosure of market risks
38 financial statements and supplementary data 9.
Changes and differences with accountants in accounting and financial disclosure
Control and procedures for Item 9B.
Other information in part IIIITEM 10.
Project 11 directors, executive officers and corporate governance.
Item 12 of administrative compensation.
Secured ownership of certain beneficial owners, management and related shareholders
Certain relationships and related party transactions, as well as the independence of directors.
Main accounting fees and service fees.
Exhibit and financial statements schedule 39 statement of contents on forward
The documents cited in this report and this report contain some \"forward-looking\"
The outlook statement \"refers to Article 27A of the Securities Act of 1933 and article 21E of the Securities Trading Act of 1934. Forward-
Forward-looking statements involve events, results, and business outcomes that may or are presumed to occur in the future.
These statements generally include words such as \"belief\", \"expectation\", \"expectation\", \"intention\", \"plan\", \"estimate\", \"seek\", \"will\", etc, \"possible\" or similar expression.
These statements are based on our assumptions based on our experience in the industry and our views on historical trends, current conditions, and we believe that in this case, the expected future development and other factors are appropriate.
When you read and consider this report, you should not rely too much on any forwarding --
Look at the report.
You should understand that these statements involve significant risks and uncertainties and are not a guarantee of future performance or results.
They depend on many factors further discussed under Item 1A below (Risk Factors)
Including: successful commercial of organic LEDs (OLED)
Including product manufacturers of our OLED technology and materials, as well as manufacturers who continue to be willing to use our OLED technology and materials;
Our ability to establish and continue to maintain strategic relationships with OLED product manufacturers;
Based on our existing contract with OLED manufacturers and the terms of the contract we expect to enter into with OLED manufacturers in the future, we expect payment to be received;
Whether the protection provided to us by patents that we have or may license is sufficient, and the cost of maintaining, enforcing and defending those patents;
· Our ability to acquire, expand and maintain patent protection in the future, as well as our ability to protect our non-patented intellectual property rights;
Our access and affordability to the Third World
Claims and challenges for our patents and other intellectual property rights;
· Our ability to maintain and improve our competitive position after the expiration of basic OLED patents;
Potential commercial applications and future needs of OLED technology and materials and OLED products;
The comparative advantages and disadvantages of our OLED technology and materials with the technology and materials currently competing in the market;
The nature and potential advantages of any competitive technology that may be developed in the future;
Results of our ongoing and future research and development activities and other activities related to OLED technology and materials;
The ability of our academic and commercial research partners to develop OLED technology in the future;
We compete with third parties with greater resources than we do;
· Our future capital needs, and the ability to obtain additional financing when needed;
Our future OLED technology license and revenue and operating results for OLED materials;
Overall economic and market conditions.
Any changes or developments in these areas may affect our financial results or operational results and may result in significant differences in actual results from any forward expected results --
Look at the report. All forward-
The outlook statement is addressed only in the document incorporated by the date of this report or by reference (as appropriate.
We are under no obligation to update any of these forwarding
View the report to reflect events or circumstances after the date of this report, or to reflect the occurrence of an unexpected event.
Table for ContentsPART IITEM 1.
Our company is a leader in the research, development and commercial of organic LEDs (OLED) technology and materials.
Thin Oled, light weight, high powerSolid with high efficiency
The state device that emits light makes it very suitable for the whole
Color Display as lighting products.
OLED displays have a growing share of the tablet display market.
We believe that this is because oled offers potential advantages over competitive display technology in terms of power efficiency, contrast, viewing angle, video response time, form factor size, and manufacturing cost.
We also believe that OLED lighting products may replace many existing light sources in the future due to their high power efficiency, good color rendering index, low operating temperature and novel appearance.
Our technology leadership and intellectual property position should enable us to share revenue as OLED displays and lighting products enter mainstream consumers and other markets.
Our main business strategy is to further develop and license our proprietary OLED technology to display application product manufacturers such as mobile phones, portable media devices, tablets, laptops and televisions, professional and general lighting products.
To support this goal, we have also developed new OLED materials and sold them to manufacturers of these products.
Through our internal R & D work and relationships with the world
Class partners such as Princeton University (Princeton)
University of Southern California (USC)
University of Michigan (Michigan)
And PPG industrial company. (PPG Industries)
We have established an important combination of proprietary OLED technology and materials.
We currently own, exclusively licensed or have the sole re-licensing rights to over 1,400 patents issued and pending around the world.
We sell our proprietary OLED materials to our customers for the evaluation and use of commercial OLED products.
We also have an agreement with manufacturers of OLED displays and lighting products under which we grant them licenses to practice under our patents and use our know-howhow.
In the meantime, we work with these and other companies that are evaluating our OLED technology and materials for possible use in commercial OLED displays and lighting products.
Flat panel displays market flat panel displays are critical for a wide range of portable consumer electronics such as mobile phones, portable media devices, digital cameras, tablets and laptops.
Because of its narrow shape and light weight, the flat panel display has also become the preferred display for large product applications such as desktop computer monitors and televisions.
LCD monitors (LCDs) continue to dominate the market for flat-panel displays.
However, we believe that OLED displays are an attractive alternative to LCD displays because they offer many potential advantages, including: higher power efficiency, thus reducing energy consumption;
• Thinner shape and lighter weight;
Higher contrast, clearer image and graphics;
Wider perspective;
Video response time is faster;
Lower cost manufacturing methods and materials.
Based on these features, product manufacturers have adopted small
Area OLED display for portable electronic devices such as smartphones and tablets.
Manufacturers are also working to commercialize OLED displays for larger applications such as computer monitors and televisions.
We believe that if these efforts are successful, they will bring a considerable market for OLED displays.
2 due to the inherent transparency of organic materials and by using transparent electrode technology, content meter oled can eventually produce transparent displays for products such as car windshields and windows with embedded displays.
Technically, organic materials also make it possible to develop flexible displays for new product applications.
These applications include display devices that can fit certain shapes or even roll up and store. The Solid-
Traditional incandescent lamps in the National Lighting Market are inefficient because they only convert about 5% of the energy consumed into visible light, and the rest in the form of heat.
The fluorescent lamp uses the excitation gas or plasma to increase the energy conversion efficiency by about 20%.
However, the color rendering index (CRI) of most fluorescent lamps-in other words, their color quality is not as good as incandescent lamps compared to ideal light sources.
Fluorescent lamps usually contain mercury and therefore cause environmental problems. Solid-
National lighting relies on the direct conversion of electricity into visible light using semiconductor materials.
By avoiding heat and plasma
Production process of solid incandescent lamp and fluorescent lamp
National lighting products can have higher energy conversion efficiency.
There are currently two basic types of solids-
National lighting equipment: inorganic LEDs or LEDs and oled.
The size of the current LEDs is very small (
About 1 mm²)
Very bright.
They have been developed for about 25 years before oled and have been used for various lighting products such as traffic lights, billboards, alternatives to incandescent lamps, and border or focused lighting.
However, the high operating temperature and strong brightness of the led may make it less popular in many general lighting and diffuse lighting applications.
On the other hand, the oled is larger in size and can be viewed directly without the need for a diffuser to adjust the strong brightness of the led.
Oled can be constructed on any suitable surface, including glass, plastic or metal foil, and can be cost-
Effective for mass manufacturing.
In view of these features, product manufacturers are working on the development of oled for diffusion of special lighting applications and final general lighting.
If these efforts are successful, we believe that OLED lighting products can begin to be used in applications currently addressed by incandescent lamps and fluorescent lamps, as well as new applications that take advantage of OLED profiles.
We believe that as one of the leading technology developers in the OLED industry, our competitive advantage is the direct result of our technological innovation.
We have built a broad portfolio of intellectual property around OLED technology and materials and are working to enable our manufacturing partners to adopt our OLED technology and materials to expand their commercial use.
Our main competitive advantages include: leading technology.
We are recognized as a technology leader in the OLED industry.
We took the lead with our research partners in developing our UniversalPHOLED®Luminous OLED technology, which can be used to produce four times the efficiency of conventional fluorescent OLED, and significantly higher than the current LCD using backlight lighting.
We believe in our OLED technology and materials.
Suitable for commercial production of OLED display and lighting products.
Through relationships with companies such as PPG Industries and our academic partners, we have also developed other important OLED technologies, and we believe that we will promote new OLED materials for product manufacturers to adopt our various OLED technologies.
A broad portfolio of intellectual property rights.
We believe that our patents, trade secrets and non-patented know-
How to provide us with competitive advantage in the OLED industry?
Through our internal development efforts and relationships with the world
We have first-class partners such as Princeton, the University of Southern California, the University of Michigan and PPG Industries, with exclusive licensing or re-licensing rights with over 1,400 patents worldwide.
We bought 74 US Treasury bonds in 2011. S.
Patents for Motorola Solutions(
F/k/a from Motorola)(Motorola)
Together with our foreign counterparts, we have previously obtained licenses for these patents from Motorola.
We are also accumulating valuable
Knowledge of patent technology
How to relate to our OLED technology and materials.
Focus on the licensing of OLED technology.
We focus on licensing our proprietary OLED technology to non-Exclusive basis.
Our current business model does not involve manufacturing or selling OLED displays or lighting products directly.
Instead, we seek license fees and royalties from manufacturers of OLED products.
We believe that this business model allows us to focus on the core advantages of technology development and innovation while providing significant operational leverage.
We also believe that this approach can reduce potential competition conflicts between us and our customers.
License for major product manufacturers.
We have licensed our OLED technology and patents to several manufacturers for commercial products.
In 2011, we signed a new license agreement with Samsung Mobile Display. , Ltd. (SMD)
For manufacturing active matrix OLED (AMOLED)
Display product, which replaces our 2005 license agreement with SMD.
We have also entered into a license agreement with Lumiotec, Inc. (Lumiotec)
Pioneer Company (Pioneer)
Panasonic Idemitsu OLED Lighting Co. , Ltd. , Ltd. (PIOL)
For the manufacture of OLED lighting products, as well as cooperation arrangements with Moser Baer Technologies, Inc. (Moser Baer)
Support the development and manufacture of OLED lighting products.
Prior to that, we entered into a licensing agreement with Showa Denko K. K. (Showa Denko)
Manufacturing OLED lighting products by solution processing (2009)
Conica Minolta for the manufacture of OLED lighting products (2008)
DuPont display manufacturing solution-
OLED display products processed using proprietary OLED materials obtained by us (2002).
We also authorized one of our inks.
Submit jet printing patents and some related patent applications to Seiko Epson company (Seiko Epson)in 2006.
Leading supplier of UniversalPHOLED transmitter materials.
We are a leading supplier of emission emitter materials for OLED product manufacturers.
Emitter material is a key component in OLED devices designed to effectively convert electrical energy into light at the desired wavelength.
PPG Industries currently produces our proprietary emitter materials for us, and then we qualify and resell OLED product manufacturers.
Based on these materials, we recorded revenue from sales to manufacturers of OLED products.
This enables us to maintain a close technical and business relationship with manufacturers of OLED products that purchase our proprietary materials, which in turn further supports our technology licensing business.
Complementary UniversalPHOLED host material business.
We also provide some of our proprietary fluorescent body materials to OLED product manufacturers.
In a design, the emitter material is assigned to the host material, and the resulting mixture is mainly composed of the host material.
PPG Industries currently also produces proprietary host materials for us, and then we qualify and resell OLED product manufacturers.
We believe that the sales of host materials can complement our sales of Blu-ray emitter materials.
However, our customers do not need to purchase our main body material to take advantage of our Blu-ray emitter material, in addition, the main body material business is more competitive than the Blu-ray emitter material sales business. Thus, our long-
Long-term prospects for host material sales are uncertain.
Establish material supply relationship.
We have a relationship with well.
Known manufacturers of OLED materials that are in use or are evaluating our use for commercial products.
LG Display Co. , SMD, 2011, Ltd. (LG Display)
Northeast pioneer company (Tohoku Pioneer)
And Konica Minolta Holdings Ltd. (Konica Minolta)
We have purchased our proprietary OLED materials for commercial OLED displays and lighting products.
We continue to work with a number of product manufacturers that are evaluating OLED materials and technologies that we use for commercial OLED displays and lighting products, including Youguang electric (AU Optronics)
, Qimei yinolu company (CMI)
Sony Corporation (Sony). Strong U. S.
Government project support.
We have done a lot of work based on R & D contracts with the United States. S.
Government agencies like the United StatesS.
Army and US Department of DefenseS.
Department of Energy.
According to these contractsS.
The government is funding some of our next efforts.
A new generation of OLED technology for applications such as flexible displays and solid state displaysstate lighting.
This allows us to supplement our internal R & D budget with additional funding.
Experienced management and scientific consulting team.
Our management team has extensive experience in developing business models, focusing on licensing disruptive technologies in high-growth industries.
In addition, our management team has formed a scientific advisory committee that includes some of the leading researchers in the OLED industry, such as Professor Stephen R.
Forrest, Michigan (
Former Princeton University
Professor Mark E.
Thompson of the University of Southern California
Our business strategy your current business strategy is to promote and continue to expand our portfolio of OLED technologies and materials for wide use in OLED display and lighting products.
We mainly generate revenue by licensing our OLED technology and selling our proprietary OLED materials to display and lighting product manufacturers.
We are currently focusing on the following steps to implement our business strategy: 4 ContentsTarget leading product manufacturer tables.
We aim to be a leading manufacturer of flat panel displays and lighting products as potential commercial license holders and purchasers of OLED materials for our OLED technology.
We also provide your proprietary OLED materials to manufacturers of OLED displays and lighting products for evaluation and product development as well as pre-
We provide technical assistance and support to these manufacturers.
We are committed to working closely with OLED product manufacturers because we believe that the successful integration of our technology and materials into commercial products is essential for their wide adoption.
Enhance the combination of our existing PHOLED technology and materials.
We believe that a strong combination of proprietary OLED technology and materials for display and lighting products is critical to our success.
Therefore, we are constantly seeking to expand this portfolio through our internal development efforts, partnerships with academic and other research partners, and other strategic opportunities.
One of our main goals is to develop new and improved light-emitting OLED technologies and materials, improve efficiency, enhance color range and extend life, and these technologies and materials are compatible with different manufacturing methods, therefore, various manufacturers can use them in a variety of OLED displays and lighting products. Develop Next-
Organic technology.
We will continue to carry out R & D activities related to the following projects
A new generation of OLED technology for display and lighting products.
Our current R & D plan includes flexible OLED display and lighting, transparent or top lighting
OLED display and film
Film packaging for oled.
We are also funding research from our academic partners on the use of organic films
Film technology in other applications.
Our next focus
Power generation technology is designed to enable us to maintain the leading supplier position of OLED and other organic electronics technologies and materials when new markets arise.
We receive income from: intellectual property and technology licensing;
Sales of OLED materials for evaluation, development and commercial manufacturing;
And technical development and support, including government contract work and support for the commercial of third-party OLED products.
Most manufacturers of flat panel displays and lighting products that are interested or may be interested in our OLED technology and materials are currently located outside the United States, especially in AsiaPacific region. To provide on-the-
Ground support for these manufacturers, we have fully established
It has subsidiaries in Korea and Japan and representative offices in Taiwan.
We also set up a subsidiary in Hong Kong, where we run the world-
Chemical Lab to support our expanding R & D program in OLED materials and technologies.
Most of our revenue comes from outside customers living outside the US, and our business is heavily dependent on our relationships with these customers.
Especially our three major customers in Asia.
Pacific region, SMD, LG Display and Japanese steel & Chemical Co. , Ltd. (NSCC)
Of our combined income of 10%, each accounted for more than 80% and collective income for 2011.
All the revenue from these customers is basically US-denominated. S. dollars.
For more information on our revenue, costs and expenditures related to the business, as well as a breakdown of revenues from North America and foreign sources, see our consolidated financial statements and their notes, as well as \"Management\'s Discussion and Analysis of Financial Position and operational results\" contained in other parts of this report \".
Our light-emitting OLED technology uses special materials and device structures to enable OLED to glow through a process called phosphor light.
The traditional fluorescent oled glows through a process with inherently lower efficiency.
Theoretical and experimental results show that the device efficiency of luminous oled is 4 times that of fluorescent oled.
Phosphor Everbright greatly reduces the power requirements of OLED and may be useful in handheld displays
Handheld devices such as smartphones, battery power is often a limiting factor.
5 Content sheet we have a strong portfolio of intellectual property around our existing PHOLED light-emitting OLED technologies and materials for display and lighting products.
We put a lot of effort into developing new and improved proprietary PHOLED materials and device architectures for red, green, blue and white OLED devices.
In 2011, we continued to maintain a commercial supply relationship with companies such as SMD and LG Display to manufacture OLED displays using our PHOLED materials.
In addition, we continue to work closely with our customers to evaluate and identify the commercial use of our proprietary PHOLED materials in display and lighting products, together with other material suppliers, match our PHOLED transmitters with their LEDs and other OLED materials.
Our research, development and commercial work also includes many other OLED devices and manufacturing technologies, including the following:™Flexible oled.
We are working on some of the technologies needed to make oled on flexible substrates.
Most OLED and other flat panel displays are built on rigid substrates such as glass.
In contrast, the FOLEDs are based on non-
Rigid substrates such as plastic or metal foil.
This enhances durability and makes it possible to make certain shapes or to repeat the conformations of bending or bending.
In the end, FOLEDs may be able to get involved in a cylinder similar to a window shadow.
These features create the possibility of new flat panel display product applications that do not exist today, such as portable roll display
Internet connection and communication equipment.
Manufacturers can also produce FOLEDs using more efficient continuous or rollingto-
Processing method.
We are currently conducting research and development on folding technology within several of our US companies. S.
Government-related projects
Flexible Display Center sponsored by Arizona State University (ASU). Thin-
Film packaging.
We recently announced our proprietary patented packaging technology for flexible oled and other thin packages
Film devices, as well as devices used as barrier film for plastic substrates.
Solve a major obstacle to the successful commercial of flexible oled, our hybrid, single-
Potential cost of using layer methods-
Effective process.
In addition to accelerating the commercial feasibility of flexible oled, our thin-
Film packaging technology has the potential to provide benefits for a variety of other flexible films
Film equipment including photovoltaic and filmfilm batteries.
UniversalP2OLED®Printable oled.
The standard method for manufacturing small molecule OLED including PHOLED is based on vacuum thermal evaporation (VTE) process.
Through the VTE process, thin layer deposition of organic materials in OLED is high
Vacuum environment.
Another way to make small-molecule OLED is to use technologies such as rotating coating or inkjet printing to perform solution treatment of various organic materials in OLED. Solution-
The processing method, especially inkjet printing, may become a low-cost method for OLED manufacturing and can be extended to large-area displays.
Over the past few years, we have signed a joint development agreement with Seiko Epson to work on P2OLEDs.
We are continuing to develop new P2OLED material and device architectures for OLED manufacturers to evaluate and work with other material manufacturers working on host and other OLED materials to match our P2OLED transmitter
OVJP®Organic steam jet printing.
Oled can also be manufactured using other processes, including OVJP.
As a direct printing technology, OVJP technology has the potential to provide a high deposition rate for OLED of any size or shape.
In addition, OVJP technology avoids the waste of OLED materials related to the use of shadow shielding (i. e.
, Waste of materials deposited on shadow masks when manufacturing OLED).
Compared to inkjet printing, the OVJP process does not use solvents, so the OLED material used is not limited by viscosity or solvent solubility.
OVJP also avoids the generation of solvent waste and eliminates additional steps to remove residual solvents from OLED devices.
We have installed a prototype OVJP tool at the uynne plant in New Jersey, and we continue to work with Professor Forrest in Michigan to develop OVJP technology.
OVPD®Organic vapor deposition.
Another way to make small molecule OLED is based on OVPD.
The OVPD process uses the carrier gas in the hot-wall reactor, such as nitrogen, to deposit organic material layers in OLED in a low-pressure environment.
OVPD processes can provide superior advantages over VTE processes or solution processing methods through more effective material utilization and enhanced deposition control.
We work with Aixtron AG, a leading metal manufacturer
Organic Chemical Vapor Deposition Equipment, development and identification of OLED display manufacturing equipment using OVPD process.
Oled of month table contentstoedtransparent.
We have developed a technology for the manufacture of oled with transparent cathode.
The traditional oled uses a reflective metal cathode and a transparent anode.
In contrast, TOLEDs use a transparent cathode and a transparent, reflective or opaque metal anode.
Toll stations using transparent cathode and reflective metal anode are called \"top-Launch \"oled. In a “top-
Emitting \"AMOLED\", light is emitted without having to go through most of the equipment electronics that can be lost with light.
This enables OLED displays to have an image quality and longevity that is superior to traditional AMOLEDs.
Toled using transparent cathode and transparent anode in half
Transparency or transparency, such as graphic display in the windshield of a car.
Our strategic relationship with product manufacturers
Phase assessment plan, development and pre-evaluation
Business plans and business arrangements with a large number of OLED display and lighting product manufacturers or potential manufacturers.
Many of these relationships are designed to customize our proprietary OLED technology and materials for use by various manufacturers.
Our ultimate goal is to license our OLED technology and sell our OLED materials to these manufacturers for their commercial production of OLED products.
Our publicly announced relationship with the manufacturer of the product includes the following: SMD.
We have been working with SMD since 2001 and providing SMD with our next generation PHOLED material for evaluation.
In 2011, we entered into a new patent licensing agreement with SMD for the manufacture and sale of AMOLED display products.
This agreement replaces our 2005 license agreement with SMD for an extended period of December 31, 2017.
We also provide SMD with our proprietary PHOLED material for the manufacture of licensed products.
Under another supplementary agreement, SMD agrees to purchase a minimum amount of light emitting transmitter material from us for the manufacture of licensed products.
This minimum purchase commitment is subject to SMD\'s requirements for luminous transmitter materials and our ability to meet these requirements within the term of the supplemental agreement, which is carried out simultaneously with the term of the licence agreement. LG Display.
We have been providing our proprietary PHOLED materials to LG Display for evaluation and have been supporting LG Display\'s OLED product development activities for several years.
In 2007, we reached an agreement to provide LG displays with proprietary PHOLED materials for AMOLED display products.
This agreement has been extended several times to allow us to confirm revenue from commercial chemical sales and licensing fees from the supply of materials to LG Display. AU Optronics.
We have a long-term relationship with Youda optoelectronic, which can be traced back to 2001.
We are providing our proprietary PHOLED materials for evaluation to Youguang electric, and we are working with Youguang Electric to help accelerate the delivery of commercial OLED products to the market. Sony.
For many years, we have supported Sony in developing AMOLED display products.
We continue to provide Sony with our proprietary PHOLED materials for evaluation. Chimei Innolux.
In 2007, we reached an agreement to provide our proprietary PHOLED materials and technologies to Chi Mei EL Corporation (CMEL)
For the manufacture of commercial AMOLED display products.
The term of the agreement continued until the end of 2009, when CMEL became part of the CMI.
In order to support the OLED development work of OLED, we continue to provide our proprietary PHOLED materials to CMI. Pioneer.
We have been providing our proprietary PHOLED materials to pioneer\'s subsidiary northeast pioneer for commercial production of passive matrix OLED (PMOLED)
Display products from 2003.
In 2011, we signed a separate license agreement for the manufacture and sale of OLED lighting products with Pioneer.
Panasonic Idemitsu OLED lighting.
In 2011, we signed a license agreement with PIOL, a subsidiary of Panasonic (Panasonic)
As a successor to Panasonic Electric, Ltd.
And Idemitsu Kosan Co. , Ltd. (Idemitsu Kosan)
For the manufacture and sale of OLED lighting products.
We also continue to work with Panasonic and provide Panasonic with our proprietary PHOLED materials for evaluation and use in national oled projects in Japan.
Moser Baer technology
On 2011, we signed a memorandum of technical licensing, material supply and technical assistance agreement with Moser Baer to support Moser Baer\'s initiatives in white OLED lighting.
We are also working with Moser Baer. S.
DOE plans to increase OLED manufacturing production and design and build the first white OLED lighting pilot manufacturing facility in the United States for Moser Baer.
7 Table of contents.
We have been providing Konica Minolta with our proprietary PHOLED materials for evaluation and have been supporting Konica Minolta in the development of OLED lighting products for several years.
In 2008, we entered into a technical licensing agreement with Konica Minolta for the manufacture and sale of OLED lighting products that utilize our lighting and other OLED technologies. Showa Denko.
In 2009, we entered into an agreement with Showa Denko under which we grant license rights to OLED lighting products manufactured by Showa Denko manufacturing and selling solutions processing methodsLumiotec.
In January 2012, we entered into a technical licensing agreement with Lumiotec to manufacture and sell OLED lighting products using our lighting and other OLED technologies. LG Chem.
In February 2012, we entered a short period.
Long term agreement to supply LG Chemical Co. , Ltd. (LG Chem)
We have proprietary PHOLED materials for the manufacture of OLED products.
The agreement allows us to confirm revenue from commercial chemicals sales and licensing fees from the supply of materials to LG Chem. NEC Lighting.
We have been providing our proprietary PHOLED materials to NEC Lighting Co. , Ltd. (NEC Lighting)
For the manufacture of OLED lighting product samples.
NEC Lighting has publicly demonstrated OLED Lighting panels that utilize our proprietary PHOLED materials and technologies. Seiko Epson.
In 2004, we started the joint development work with Seiko Epson to apply our proprietary PHOLED technology and materials to ink
The printing process used by Seiko Epson.
The arrangement ended on 2009;
However, we will continue to provide Seiko Epson with our proprietary PHOLED materials for evaluation.
Also, we authorize one of our inks
In 2006, jet printing patents and some related patent applications were submitted to Seiko Epson. DuPont display.
In 2005, we completed the work of developing new luminous materials and device structures for solution based on the protocol with Dupont DisplayProcessed oled
In 2002, we entered into a cross-licensing agreement with Dupont Display for manufacturing solutions
Use OLED display products processed through our proprietary OLED materials.
Under this agreement, we have not received any royalties from DuPont.
To support our OLED licensing business, we offer our proprietary general OLED materials to display manufacturers and others.
To ensure that the materials meet the required specifications, we have certified the materials in the OLED equipment before shipment.
We believe in our inventory.
Shipping practices, and the terms of our sales of OLED materials (
Including payment terms)
It is typical for the market we operate in.
In 2009, our OLED material business is certified in accordance with ISO 9001: 2008 quality management system standards and guidelines.
We have maintained a close working relationship with the PPG industry since 2000.
On 2011, we entered into a new agreement with PPG Industries, which will last until December 31, 2014.
Under this agreement, PPG Industries is responsible for manufacturing scale under our guidance
Our proprietary OLED materials and provide us with them for research and development, as well as for resale to our customers for their evaluation and commercial OLED products.
Through our collaboration with PPG Industries, key raw materials come from multiple suppliers to ensure that we are able to meet the needs of our customers in a timely manner.
Our OLED material customers are all over 2011 and we continue to provide our proprietary universal OLED material to SMD for its commercial AMOLED display products and development work.
SMD is currently the largest manufacturer of AMOLED displays for mobile phones and other personal electronic devices.
SMD customers of these products include many
Well-known consumer electronics companies around the world.
In 2011, we also provided our proprietary general-purpose oled materials to LG Display for its commercial AMOLED Display products, provide Northeast pioneer with commercial OLED lighting products for its commercial PMOLED display products, conica Minolta.
During this year, we have also provided our proprietary OLED materials to these and other manufacturers of various products for evaluation and development, manufacturing qualification and product testing.
Table of cooperation with other OLED material manufacturers we continue our non-
During 2010, an exclusive partnership was established with other manufacturers of OLED materials, including NSCC, Idemitsu Kosan, LG Chem and SFC Co. , Ltd.
All of these relationships are focused on matching our proprietary PHOLED transmitters with the hosts of these companies and other OLED materials.
We believe that such partnerships are important to ensure the success of the OLED industry and to adopt our PHOLED and other OLED technologies more widely.
Our research and development activities focus on the advancement of OLED technologies and materials that we use for display, lighting and other applications.
We conduct this research and development internally and through various relationships with our business partners and academic institutions.
In 2011, 2010 and 2009, we incurred $24,129,233, $21,695,139 and $21,122,156 in internal and third years, respectively.
The party sponsored research and development activities related to our various OLED technologies and materials.
In-house development we have done most of the OLED development activities in our state. of-the-
Art development and testing facilities in Ewing, New Jersey.
In this 40,200 Square
We develop technologies including equipment and process optimization, prototyping, manufacturing scale
Conduct research, process and product testing, feature and reliability research, and technology transfer with our business partners.
Our yain plant has six OLED deposition systems, including a complete
Color flexible OLED system for manufacturing solutions
Machined oled and OVJP organic steam jet printing system.
In addition, the facility contains equipment for Substrate mapping, organic material deposition, display packaging, module assembly and extensive testing for clean rooms and photocells of class 100 and 100,000
Electronic Testing Laboratory
Our facilities include state. of-the-
We conduct an art synthetic chemistry laboratory for OLED materials research and manufacture a small amount of new materials, and then test them in OLED devices.
As of December 31, 2011, we have hired 62 research scientists, engineers and laboratory technicians at the UIN plant.
The team includes chemists, physicists, engineers with electrical, chemical, and mechanical backgrounds, as well as high
Trained experimenters
We have long-term University sponsored research.
Long-term relationships with Princeton University and the University of Southern California, dating back to 1994, are used for research related to our OLED and other organic films
Film technology and materials for applications such as display and lighting.
The study was conducted at Princeton under the guidance of Professor Forrest and at the University of Southern California under the guidance of Professor Thompson.
Professor Forrest moved to Michigan in 2006 and we continue to fund his research.
According to the research agreement signed in 1997, we funded the research in Princeton (
1997 research agreement).
After the transfer of Professor Forrest to Michigan, the 1997 research agreement was allowed to expire in 2007.
We have exclusive licensing rights for all OLED and other films
Film organic electronic patent (
Except for organic photovoltaic solar cells)
The research carried out under the agreement was generated.
Regarding the transfer of Professor Forrest to Michigan, in 2006 we entered into a new sponsored research agreement with the University of Southern California under which we will fund organic electronic research conducted by Drs.
Forrest and Thompson (
2006 research agreement).
Professor Forrest\'s work was funded through a subcontract between the University of Southern California and Michigan.
As with the 1997 research agreement, we have all OLED and thin-
Film organic electronic patent (
Except for organic photovoltaic solar cells)
This study was produced.
The original three
2006 the annual deadline for the study agreement is April 2009.
In those three.
During the year, we paid $2,155,570 to the University for research conducted under the agreement.
In May 2009, we extended the agreement for another four years until April 2013.
As of December 31, 2011, we have an obligation to reimburse the university for up to $2.
6 million the actual cost of conducting the study according to the remaining period of the agreement.
9 ContentsIn 2005 table, we entered into a separate sponsorship research agreement with Princeton to fund the study under the guidance of Professor Sigurd Wagner
Film packaging and manufacturing of OLED devices.
Like other relationships we have with Princeton, we have exclusive licensing rights to all patents arising from the study.
The research program has been expanded several times and has now continued until the end of 2012.
On 2004, we signed a sponsorship research agreement with yuan tingling Institute of Industry, National Taiwan University.
According to the agreement, we funded a research project under the guidance of Professor Ken.
Huang Zhiguang related to new OLED materials.
We have exclusive rights to all intellectual property developed under the program and we are extending the program for another year.
We signed a contract research agreement with Japan\'s thousand-year-old Institute of Science and Technology (CIST)in 2004.
Under the agreement, we funded a high school led by Professor Chihaya Adachi.
Efficiency of OLED materials and devices.
We are granted exclusive rights to all intellectual property developed under this project.
When Professor Adachi transferred to Kyushu University in 2006, our relationship with CIST was over.
However, under a separate consultation arrangement, we continue our relationship with Professor Adachi.
In 2006 and 2007, we entered a-
Signed an annual research agreement with Qingxi University to sponsor research projects on flexible amorphous silicon films
Thin Film Transistor (TFT)
Back panel technology
The program was directed by Professor Jin Cheng.
In 2008 and 2009, we signed a contract research agreement with silicon Display Technology Co. , Ltd. (SDT)
A company founded by Professor Zhang
We continue to maintain a good working relationship with Professor Zhang.
AixtronIn 2000, we have entered into a development and licensing agreement with Aixtron AG in Aachen, Germany, to develop and commercialize equipment for the manufacture of oled using OVPD processes.
Under this agreement, we grant Aixtron exclusive license to produce and sell its equipment for the manufacture of oled and other equipment using our proprietary OVPD process.
Aixtron needs to pay US royalties for its sale of the device.
The purchaser of the device must also obtain the right to use our proprietary OVPD process to manufacture oled and other devices using the device, which they can do through us or Aixtron.
If these rights are granted through Aixtron, Aixtron will need to pay us additional payments under our agreement.
Since 2002, Aixtron has reported to us the delivery of six OVPD systems.
Including two seconds.
Generation Systems, one of which was sold in 2007 to the fraunhove photon Microsystems Institute in Dresden, Germany, and the other to RiTdisplay Corporation, Taiwan, in 2003.
We recorded the royalty income of Aixtron in Aixtron to inform us of the quarterly sale of these different systems for sales and related royalties due. U. S. Government-
We have entered several United States. S.
Government contracts and sub-contracts to fund some of our next efforts
OLED technology.
For contracts that we are general contractors, we subcontracted part of the works to various entities and institutions including Princeton, Michigan
3 Communication Company-
Display System (L-3DS)
, Sharpness brand company. (Acuity)and Moser Baer.
We also act as subcontractors under some of our government contracts, such as Trident Systems, Inc. (Trident)
PPG industry and Moser Baer.
All of our government contracts and subcontracts will be terminated in the election of the contracting government agency. Our government-
The funded projects focus mainly on two areas: Flexible oled and oled for lighting.
We get support for our work on flexible OLED technology through a variety of US companiesS.
Ministry of Defense (DOD)
Institutions including the Army Research Laboratory (ARL)
Air Force Research Laboratory (AFRL)
Military communications-
Electronic R & D and Engineering Center (CERDEC)
National Science Foundation (NSF). The U. S.
Department of Energy (DOE)
Support our work on white oled for lighting, including through its solid state lighting (SSL)initiative.
Several of our key AmericaS.
The government plan for 2011 is as follows: flexible OLED display prototype.
We continue our work in 2011, developing and delivering the next
A prototype AMOLED display is generated on a flexible substrate.
For example, these include prototype wrists-
Communications equipment installed for the United StatesS.
Army and prototype displays used by air force pilots in tactical cockpit environments.
The flexible OLED display uses the amorphous silicon TFT back panel provided by the LG Display. L-
3DS and Trident are responsible for the design, construction and reinforcement of prototype devices for these displays.
OLED lighting technology development content table.
During the 2011 period, we continue to work hard to develop technical methods using our proprietary PHOLED and other OLED technologies
White lighting application efficiency.
We got funding from the Department of Energy to continue our presentation
Efficient white OLED lighting concept under
Cabinet application.
In addition, we have received funding from the Department of Energy to promote our PHOLED technology on a large scale
Area usage and demonstrate enhanced external coupling design and manufacturing of OLED light sources on new substrates.
In recognition of this work, Doe once again paid tribute to us at the SSL annual workshop entitled \"transformation of lighting\" on February 2011.
New packaging technology for oled.
Using the technology pioneered by Princeton, we have demonstrated the feasibility of a new plasma-based packaging process
Enhanced chemical vapor deposition (PECVD).
Flexible packaging technology is an important part of the roadmap for the commercial development of flexible OLED display, which may be a cost
Efficient Solution
OLED lighting products.
In 2011, we received additional funding from ARL and the NSF to continue working with Princeton to develop this technology for applications of flexible OLED displays, and we apply this technology to our prototype FlexU. S.
Basic manufacturing of oled for lighting.
In 2011, we continued to work with Moser Baer as a subcontractor for $4.
Million US Department of Energy to create the US Department of Energy ProjectS.
Photo LED lighting panel manufacturing factory.
According to the plan, we are demonstrating the scalability of our proprietary universal OLED technology and materials for manufacturing White OLED lighting panels that meet commercial lighting objectives.
The mission of Moser Baer is to design and build American buildings. S. -
We are providing technical support to Moser Baer for this work.
In 2011, we also started working with Moser Bear on a second DOE project to increase OLED manufacturing production.
Under this project, the cost of our cooperation with Moser Baer is less than $1.
0 million subcontract.
Prototype of commercial OLED lighting system.
In 2011, we continue to work with Acuity under the DOE contract to demonstrate the prototype of the PHOLED lighting system for commercial applications.
Under this project, Acuity is responsible for designing and manufacturing OLED lighting prototypes by using our proprietary architecture and
Efficiency PHOLED panel.
These prototypes are for high
Terminal commercial space including office, retail and health-
Take care of the building and take advantage of several key attributes of oled-including thin, smooth form factor and high quality light.
Army Flexible Display Center we have always been a major member of the Army Flexible Display Center (FDC)
Since its establishment in 2004.
Support FDC through $51.
5 million cooperation agreement between Arizona State University and ARL.
Recently, the agreement was renewed to provide the financial stability commission with an additional $50 million by 2014.
The goal of FDC is to develop flexible, low-power, lightweight products
Weight, information display and other military and commercial applications used by soldiers in the future.
We believe that our cooperation with FDC will make greater contribution to the development of our flexible OLED display technology.
In 2011, we continue to work with FDC under ARL
Sponsored flexible AMOLED display project using our proprietary PHOLED technology and materials as well as FDC proprietary adhesives-
Manufacturing Technology in Debon. Dr.
Michael Hack, vice president of strategic product development and managing director of OLED lighting and custom display business, is a member of the FDC board of directors.
FlexTech Alliance we are a member of FlexTech Alliance Company. (
Original US Display Consortium)
An organization dedicated to promoting the growth, profitability and success of electronic displays and flexible printing electronic supply chains.
The role of the FlexTech Alliance is to provide broader collaboration between industry, academia, government and research organizations to advance the development of display and Flexible Printed Electronics from R & D to commercialisation.
The FlexTech Alliance has approximately 82 members including companies, universities and R & D organizations.
OLED Association. We are new chartered members.
Establishment of OLED Association (OLED-A). OLED-
A is an industry association whose mission includes promoting the development of OLED technology as an OLED information resource and promoting interest in OLED products.
We are one of 10 members of OLED.
We are actively involved in its marketing and technical committee. Steven V.
Our President and CEO, Abramson, is a member of the OLED board. A and Janice K.
Mahon, vice president of technology business and general manager of material supply business, serves as chairman of OLED Marketing CommitteeA.
We joined the next generation of Lighting Industry Alliance (NGLIA)in 2009.
Founded in 2003, NGLIA aims to promote industrial development
The government worked together to accelerate the technological foundation and eventual commercialisation of solid state lighting systems.
NGLIA was designated by Doe as an \"industry partner\" for its SSL project in 2005 \".
The SSL program is designed to research, develop and carry out demonstration activities of advanced solid state white light lighting technology based on led and oled.
We are one of the 17 members of NGLIA.
Like our employees, our primary and most basic assets are patents and other intellectual property rights.
This includes many AmericanS.
Foreign patents and patent applications that we have, exclusive licensing or exclusive rights to have re-licensing.
It also includes a large number of non-
Knowledge of patent technology
How we accumulate over time.
Our patent R & D activities are carried out internally and through collaborative projects with partners, and a large number of patent applications related to OLED technology and materials have been submitted.
As of December 31, 2011, we had $149 in separate or shared distribution with othersS. applications (active U. S.
Cases and international applications designated by the United StatesS. )and 153 U. S.
Patents, as well as peers applying abroad.
These patents will expire in the United States. S. in 2020.
According to our licensing agreement signed with Princeton and the University of Southern California in 1997, the patents we obtained from Princeton, the University of Southern California and the University of Michigan exclusively license most of our patents, including our key PHOLED technology patents
1997 license agreement).
In 2006, according to the transfer of Professor Forrest to Michigan that year, Michigan was added as a party to the agreement.
As of December 31, 2011, the patent rights we obtained from these universities included 60 US patents being applied. S. applications (active U. S.
Cases and international applications designated by the United StatesS. )and 177 U. S.
Patents, as well as peers applying abroad.
These patents will expire in the United States at the earliest. S.
In 2014, while our key PHOLED technology patents licensed from these universities will begin to expire in the United StatesS. in 2017.
Under the 1997 licensing agreement, Princeton, the University of Southern California and Michigan granted us exclusive licensing rights to specific patent and patent applications related to OLED technology and materials (
Including our PHOLED technology and materials).
Our licensing rights also extend to any patent rights arising from research conducted by Princeton, the University of Southern California or Michigan under our various research agreements with these entities.
Under the 1997 license agreement, we are free to re-license all or any part of our patent rights to third parties.
1997 The term of the license agreement continues to exist within the validity period of the license patent, although it may be terminated due to a material breach or breach of contract that we have not cured, or if we are broke or broke.
Princeton is mainly responsible for the application, prosecution and maintenance of all patent rights licensed to us under the 1997 License Agreement
Institutional agreements between Princeton University, the University of Southern California and the University of Michigan.
However, we manage this process and have the right to direct the patent advisor on specific matters involved in any patent application filed by Princeton.
We must bear all costs associated with the application, prosecution and maintenance of these patents.
Under the 1997 license agreement, we must pay Princeton royalties for licensed products sold by us or our subsidiaries.
These royalties are equivalent to 3% of the net selling price of licensed products we sell, and 3% of the revenue we receive from licensed products sold by our subsidiaries.
If Princeton reasonably determines that royalties payable to these products are unfair and competitive, these royalties may be renegotiated for products that cannot be reasonably imagined due to research agreements.
Princeton shares some royalties with the University of Southern California and Michigan
Institutional Agreement.
During the 100,000 license agreement period, we have a minimum royalty obligation of $1997 per year.
Under the 1997 license agreement with Princeton, 1,219,256 of the royalties are $2011.
Under the 1997 license agreement, we also need to use commercially reasonable efforts to bring licensed OLED technology to market.
However, if we invest at least $800,000 a year for research, development, commercialisation or patent efforts to respect the patent rights granted to us under the 1997 license agreement, these 12 content requirements sheet are considered
The patents we obtained from lazlain 2000, we entered into a license agreement with Motorola, which granted us a permanent license to now 74 US patentsS.
Patents related to Motorola OLED technology and foreign counterparts in various countries.
These patents will expire in the United States. S.
Between 2012 and 2018.
Under our license agreement with Motorola, we are required to pay Motorola annual royalties on the total revenue we receive from the licensee for selling OLED products or components or OLED technology, whether these revenues are specifically related to the invention claimed in Motorola\'s authorized patent right.
We purchased these patents from Motorola in March 9, 2011, including all existing and future patent infringement claims and cause of action.
This actually terminated our licensing agreement with Motorola, including any obligation to pay royalties to Motorola.
Considering that Motorola transferred the patent to us, we made a