Jetpack over and out - the funding has run dry
Jetpack developer Martin Aircraft Company's warehouse is being advertised for lease, directors have resigned, assets written off, and no one's answering the phone.
The accounts for the June 2018 year have just been posted on the small companies share exchange USX that reveal the company is winding up.
After burning through more than $50 million of investors' money the two remaining directors were negotiating a sale of the business - real estate agent Garry Ottman said the company would move out of the Christchurch premises at a month's notice.
Chinese company KuangChi Science is the controlling shareholder and day-to-day funder of the Jetpack, rated by Time Magazine in 2010 as one of the "most anticipated" world's top 50 inventions.
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But inventor Glenn Martin, who quit the company five years ago over management differences, said there were now about 300 companies around the world developing personal flying machines.
Martin has consulted to a couple of them and said last year he had encouraged Google co-founder Larry Page to test a two-seater electric aircraft in New Zealand.
At one stage the Jetpack was expected to sell for about $134,000 each but the company never developed a commercial craft or an engine that would operate more than a few hours before requiring full maintenance.
Martin Aircraft's restructure last year reduced staff numbers to three on a casual basis.
"This restructure necessitated the voluntary surrender of the company's certification with the Civil Aviation Authority," the company said.
Directors expected to sell all assets by mid-2019.
"Due to the specialised nature of the inventory, there is a limited market and therefore the net realisable value of the inventory is 0."
KuangChi Science which loaned Martin Aircraft $10 million in 2017 would not provide ongoing financial support and as a result the venture was no longer a going concern. Repayment of the loan will be subordinated in favour of all other creditors.
New Zealand government-owned NZ Venture Investment Fund wrote off its 4.6 per cent stake in Martin Aircraft months ago.
NZVIF chief executive Richard Dellabarca said technology startups were always risky but they often delivered benefits of engineering developments and employment.
"You have to applaud their aspirations," Dellabarca said.
Martin Aircraft's Australian-based director Ran Elias shares the board with Shenzhen-based Ge Lin. Another Shenzhen-based director Dr Lin Luan resigned in February after one year.
Ex-chief executive James West stood down in mid-2018 after two years.
The annual report reveals a loss of $13.5m, down from the 2017 loss of $29m, with negative equity of $2.4m when the $10m loan was taken into account.
Meanwhile, the share price of Hong Kong-listed KuangChi Science has been volatile and in a declining trend in recent months. The company could not be reached.
KuangChi Science focuses on "research and development of space technologies to provide various space services in the People's Republic of China, Hong Kong, New Zealand, and Canada", according to a company description.
It has investments in Traveller, an all-weather multi-purpose orbit satellite "Martin Jetpack for search and rescue, military, recreational, and commercial applications", Solar Ship, and SkyX aircraft.