Ispire, Berify and Chemular to Propel Innovation in Vape Hardware Manufacturing Industry

Rhea-AI Summary

Ispire Technology Inc. forms a joint venture with Berify and Chemular to pioneer next-gen e-cigarette age-verification technology. The venture aims to introduce innovative solutions for age verification, safety, and user experiences in the e-cigarette market by combining hardware expertise, blockchain technology, and regulatory consulting.

Insights

Market Research Analyst

From a market research perspective, the formation of this joint venture signals a significant shift towards increased security and regulatory compliance in the e-cigarette industry. The collaboration between Ispire, Berify and Chemular to create an industry-standard age-verification solution is particularly noteworthy. Such a move could potentially reshape the competitive landscape, as it addresses key consumer and regulatory concerns such as underage usage and counterfeit products. By integrating blockchain technology for authentication and user engagement, the joint venture is positioning itself at the forefront of innovation within the sector. This could lead to increased market share for the involved companies if the new technology is adopted widely.

Moreover, the introduction of biometric identity platforms and geo-fencing capabilities indicates a strong focus on user safety and compliance with regulatory standards. The e-cigarette market is under intense scrutiny from regulators and proactive measures in these areas could not only avert potential legal challenges but also enhance brand reputation and customer trust. As these technologies become more prevalent, companies that fail to adapt may find themselves at a competitive disadvantage, potentially impacting their market positioning and financial performance.

Legal Expert

The joint venture's emphasis on PMTA (Premarket Tobacco Application) know-how is critical, given the FDA's stringent requirements for tobacco products. The ability to incorporate advanced age-verification technologies into PMTA applications could set a new precedent for regulatory approval processes. This is particularly relevant as the FDA has been pushing for stricter measures to prevent youth access to vaping products. By addressing these regulatory demands head-on, the joint venture may gain a strategic advantage in terms of compliance, potentially reducing the risk of costly legal battles or sanctions related to non-compliance.

Additionally, the utilization of blockchain technology for product authentication could have legal implications for intellectual property rights and data privacy. Blockchain's inherent features provide a robust framework for protecting against counterfeiting, a significant issue in the vaping industry. This could lead to stronger legal protections for the joint venture's innovations and potentially create barriers to entry for competitors who are unable to match these technological advancements.

Technology Analyst

The integration of advanced technologies such as real-time biometric identity platforms and blockchain into e-cigarette hardware is a transformative step for the industry. From a technological standpoint, the deployment of these features could greatly enhance device security and user experience. Biometrics offer a personalized and secure method of age verification, which could reduce the likelihood of underage usage. Furthermore, blockchain technology can provide a transparent and immutable record for product authentication, potentially curbing the circulation of counterfeit products.

Geo-fencing capabilities are another innovative feature that could allow for greater control over where e-cigarettes can be used, addressing public health concerns. The technological synergy of hardware expertise from Ispire, digital solutions from Berify and regulatory insight from Chemular could lead to the development of products that are not only compliant with current regulations but also adaptable to future regulatory changes. This could result in a sustainable competitive advantage for the joint venture, as the e-cigarette industry continues to evolve and face new technological and regulatory challenges.

Newly Formed Joint Venture Among Companies Aims to Pioneer Next-Gen E-Cigarette Age-Verification Technology While Prioritizing Safety, User Experiences and Value-Add Features and Control

LOS ANGELES, Feb. 22 2024 /PRNewswire/ -- Ispire Technology Inc. ("Ispire" or the "Company") (NASDAQ: ISPR), an innovator in vaping technology and precision dosing, announced the Company has partnered with – Touchpoint World Wide Inc. D/B/A Berify ("Berify"), a cutting-edge platform specializing in linking physical products to the digital world, digital engagement, and brand protection, and Chemular International Inc. ("Chemular"), a  multi-disciplinary regulatory consulting firm – to form of a joint venture (the "Joint Venture"). Distinguished as the first of its kind, the Joint Venture will look to expedite innovation in the e-cigarette technology space, including the development of secure, user-friendly solutions for age verification and age-gating nicotine vapor devices. 

Leveraging Berify's multi-patented technology, Chemular's regulatory consulting and PMTA knowhow and Ispire's hardware expertise, the joint venture will look to introduce an industry-standard age-verification solution for vapor devices as well as the submission of PMTA applications that incorporate cutting-edge technologies across the U.S. e-cigarette market such as:

• Next-generation e-cigarette hardware with a user-friendly point-of-use age-verification and geo fencing capability that eliminates use of hardware in certain designated areas such as schools and sensitive areas;
• E-cigarettes with end-to-end a range of dynamic features such as authentication, direct to consumer engagements and exclusive offerings all built on the foundations of blockchain technology;
• A real-time biometric identity platform for user access controls, creating added security and reliability that deters counterfeiting.

"By combining our collective expertise in hardware, blockchain and regulatory consulting, we aim to set a new standard for age verification, security and overall quality in the e-cigarette space," said Ispire Technology Co-Chief Executive Officer Michael Wang. "Our hope is that this JV will be a large step forward in innovative device control, safety, counterfeit prevention and enhanced user experiences that increase overall market and consumer satisfaction."

"The U.S. market is ripe for technological disruption that addresses age-verification, safety and counterfeit issues," said Berify Founder and Chief Executive Officer Dan Kang. "Our mission is also to create smart products that generate a new level of consumer satisfaction. We plan to achieve this by leveraging our blockchain authentication, tokenized rewards and creating  true decentralization while keeping companies in-control of their products and data."

Kevin Burd, the Chief Executive Officer of Chemular, added, "our commitment is not only to create next-gen vapor devices, but also to elevate market education. This venture includes additional partnerships that will bring together biometric identity and access control, ensure the solution is embedded into vapor devices during manufacturing and provide safety, security and privacy for consumers. It is also a testament to our dedication to positively shaping the future of vape hardware innovation."

About Ispire Technology Inc. 

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company's cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware only in the U.S., and it recently commenced its marketing activities in Canada and Europe. For more information, visit visit www.ispiretechnology.com or follow Ispire on  Instagram, LinkedIn, Facebook, Twitter and YouTube.

About Berify

Berify is a cutting-edge platform specializing in linking physical products to the digital world, digital engagement, and brand protection. With a suite of patented technologies, Berify offers a blend of security, interoperability and engagement in the consumer-brand relationship. Berify brands can protect their reputation, own their data, gain valuable consumer insights, incentivize desired behaviors and differentiate themselves in the competitive market. 

About Chemular

Founded in 2015 by experts in nicotine and U.S. FDA compliance, Chemular provides analytical, behavioral, toxicological, clinical, and overall project management. Its expertise spans all aspects of the PMTA and MRTP process. Chemular has successfully submitted PMTAs on over 200 products. It has a highly focused regulatory consulting group dedicated to the tobacco space and brings a world class team of tobacco-specific toxicologists, chemists, clinical trial experts in addition to project managers and other various subject matter experts to assist companies with their FDA and other regulatory needs.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Joint Venture may be successful in achieving its goals as currently contemplated, with different terms, or at all, the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices, the Company's ability to collect its accounts receivable in a timely manner, the Company's business strategies, the ability of the Company to market to the Ispire ONE™, Ispire ONE™'s success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of their products on the markets; the Ispire ONE™ proving to be safe, and the risk and uncertainties described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" and the additional risk described in Ispire's Annual Report on Form 10-K for the year ended June 30, 2023 and any subsequent filings which Ispire makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

For more information, kindly contact:

IR Contacts:
Investor Relations
Sherry Zheng
718-213-7386
ir@ispiretechnology.com

KCSA Strategic Communications
212-896-1233
ispire@kcsa.com

PR Contact:
Ellen Mellody
570-209-2947
EMellody@kcsa.com

 

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SOURCE Ispire Technology Inc.

FAQ

What companies formed the joint venture with Ispire Technology Inc.?

Berify and Chemular formed the joint venture with Ispire Technology Inc.

What is the ticker symbol for Ispire Technology Inc.?

The ticker symbol for Ispire Technology Inc. is ISPR.

What is the focus of the joint venture formed by Ispire Technology Inc.?

The joint venture aims to pioneer next-gen e-cigarette age-verification technology and prioritize safety, user experiences, and value-add features in the e-cigarette market.

What technologies are being leveraged by the joint venture?

The joint venture is leveraging Berify's multi-patented technology, Chemular's regulatory consulting and PMTA knowhow, and Ispire's hardware expertise.

What are some of the innovative solutions the joint venture plans to introduce?

The joint venture plans to introduce next-generation e-cigarette hardware with age-verification and geo-fencing capabilities, e-cigarettes with dynamic features built on blockchain technology, and a real-time biometric identity platform for user access controls.