WIND SAIL STATUS REPORT. Investor Search: Brian McCarthy, ESM, Japanese market. The Japanese are interested in the design and technology but they are not willing to invest in product development. If we complete a prototype they would be willing to have us present it again.
The Japanese are interested in the design and technology but they
are not willing to invest in product development. If we complete
a prototype they would be willing to have us present it again.
production of alternators. Owns Pittman Motors and MAE Motors
e. Martin Lin: Lin Engineering. Interested in high volume production of
alternators but wants to move the production to China.
f. Al Coddington: Arrgh Manufacturing. Interested in production of
g. Jim McDermott – (son of senator from Washington state)
h. Jack McClure: interested in water purification systems
1. United Venture Partners
2. Several more via brokers
Due to Russian connection and no product ready for
1. Robert Coleman: seeks government funding
2. Greg Henthorne: broker for Chinese companies
3. Ron Weiner: VC access Seattle area
4. Hancy Mohler: Harvey & Co.
5. Brandon Walsh: Westgate Financial
6. Hanna Smith: Sperry Mitchell & Co.
7. Harry Hartz & Associates
8. John Treese: Fina Financial Services
9. Ed Margolin: First Consolidated Capital
10. Abby Molano
11. David Bannister: Business Team
12. Bart Basi: CFT
m. Various Other Contacts:
1. Christopher Tilley
2. Steve Patterson (energy sales)
3. Christopher Lynch (Former Trade Counsel Bonn)
4. Russ Kennedy (North Bay Angels)
5. Mark Schmidt: (buying a company)
6. Alan Caldwell: (Prime Energy)
Via brokers, a number of VC contacts were made, resulting in zero response. Generally speaking the replies were: Russia is too risky.
We want to invest in the production phase, not in R&D.
Come back AFTER you have a revenue stream.
Since we are very early in the product development cycle, as business managers we have not been able to provide adequate answers to the
What is the estimated Return on Investment? (ROI)
What is the time frame for return of capital?
What assurance can we give that capital will be returned?
What are projected revenues?
What are projected Gross Margins?
What are projected product costs?
What are projected operating costs?
Why should we believe we can do business in Russia?
Thus far we have to report no success in getting investors. As such, Empire Magnetics, Inc. and Rick Halstead have carried the financial load to date, but the reserves are now exhausted.
The last three years have been exceptionally brutal in the industry segment that Empire Magnetics, Inc. serves. Approximately 30% of distributors and customers we served in 1999 have gone out of business and many others are just hanging on. We do see a significant upswing in process, but it will be July 2004 before this converts into working cash for Empire Magnetics.
Without investment funds Empire will not be able to complete the terms of the existing CRADA agreement.
Empire Magnetics, with its subcontractor Uralmet, has been working on the design of the alternator for the 1500 and 3000 watt units. This design is still being revised as we resolve the mechanical issues of mating the alternator to the windmill. The ability of the bearing system on the windmill to maintain the air gap in the alternator is in question.
Three different approaches to the manufacture of the windings for the 3000 watt alternator are being explored. All are technically feasible. The exploration is focused on which approach will be cost effective in production.
A design of a magnetic bearing system has been done but initial review indicated the cost is too high for the small windmills. However, it does appear to be useful for larger windmills. Build of a prototype is waiting on funds.
Design work on a 30 Kw alternator is in progress. It builds upon the things we have learned in the design phase of the smaller units.
400VDC to 12/24/48 VDC