Alternative Energy Micro Grid Generators, 55+% IRR, US-Based

Opportunity Snapshot

Investment Opportunity

Permanent Magnet Alternating Current Power Device, 90+% efficient, sales in Australia & U.S., $550k investment needed for market expansion.

Mission: Efficient Electric Power Systems

Vision: Design, develop & market green, leading-edge power electronics & PMAC – permanent magnet alternating current – motors/generators/alternators power systems. Creating energy efficiency through improved power to weight & radical cut in electricity losses (to date: 13 patents/pp); applications include: medical devices, HVAC- data centers, pool pumps, environmental pumps, fans, machine/power tools, EV’s and wind/hydro electric generators for 2 to 12kW micro grids, US DoD SBIR1 (2012) for generator driven by engine and SBIR2 (2014) for hydro generator.

Strategy: Lead market into microgeneration with major competitive advantage & generate fast cashflow.

Team: The Team, in Board, executive and advisory roles, has over 200 years of combined experience of in engineering and finance. David B., Chief Executive & Founder; 30+ yrs, experience with Massey Ferguson, Perkins Engines, Atlas Copco; start-ups, turnarounds, M&A in EU, Australasia, North America; 20X ROI in US, China, Germany.

History: Founded in 2002 as a Delaware Corp. and initially housed in the Ben Franklin Technology Partners TechVentures Incubator with $US400K seed funding from Ben Franklin to develop the technology. Prototypes and products were designed, and developed during 2008 to early 2013. Final products were manufactured in 2013 and trial market launch began in December 2013, following a 2011 market segmentation done through IHS GlobalSpec® that resulted in over 200 RFQ’s.

Ownership & Financial Position: The Company has three principal shareholders – David B., Herbert M. and B. F. Technology Partners. There are approximately an additional 30 friends and family as additional shareholders.

Current Status: First generator sales have been achieved in Australia and the United States for waste heat and wind/power take off, respectively. The generator product is ready for Full Market Launch and will be applied to “greening marketing” for wind, hydro, thermal, and engine applications – the largest segment of nineteen identified in our 2011 market test on IHS GlobalSpec®, with seven million industry professionals. Navigant Research forecasts (1Q’13) that global installations of SWTs (Small Wind Turbines) will grow from an estimated 85.8 MW in 2012 to 172 MW in 2018, representing $3.3 billion in revenues. Valuation included in the Business Plan is by a Chartered, qualified expert, who also is a non-executive member of our Board.

Competitive Advantage

Competitors: Competitors for the generators in these units come principally from China using permanent magnets in direct current generators.

Advantage: Our competitive advantage is an alternating current unit that can start in lower breezes, stay longer in higher winds and be more remotely located away from storage sources. Our launch strategy is to raise up our IHS GlobalSpec® profile, selling direct, while we develop the longer ramp-up turbine OEMs and to license (e.g. “Jobs for Vets” initiative) FlexGen™, PD and PSU.

Use of financing

Capital required: $US50K now; $US500K 3Q2014, these forming part of a total expected $US5M for growth stage. A detailed capital plan focused on market launch is incorporated in our Business Plan.

Use of Capital: Sales & Marketing; Operations; Working Capital.

Opportunity for the investor

Exit Strategy: Strategic acquisition.

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