If this device works, it is the first tracking device application that i am quite impressed by. Basically it works like a sleep tracker alarm clock. These wake you up in the morning, when you are in a light phase sleep. But what it does instead is that it prevents your child from entering a deep phase sleep at the beginning of the night by disturbing its sleep.
Adults sometimes experience something similar called the exploding head syndrome:
http://en.wikipedia.org/wiki/Exploding_head_syndrome