My 11/9/2012 Visit to Neah Power
I visited Neah Power today. I had an appointment this time. A couple of weeks ago I had contacted Chris D'Couto to have him tell me that he was out of the country until Nov 1st. I neglected to ask him where he'd been.
During my visit I did get to see a cell phone charging unit in action. It was actually charging a cell phone. Chris said the unit would probably cost just under $100, with the refill cartridges costing $1 each. He said this was a competitive price, and showed me a competing product that had a one time use, selling for $45. He said those were selling nicely. He said that just 0.1% of the cell phone market was worth millions.
Regarding who the defense contractor is, he couldn't tell me due to confidentiality agreements. But in the entry hall, hanging next to all the framed patents, were two framed letters of interest. One letter dated July, 2011 was from Raytheon, the other dated Sept, 2011 was from Boeing. So I believe that it is safe for me to conclude that their defense supplier is Raytheon, who is listed in the Fortune 500 as #117.
He said he fully expects the defense thing to take off, but due to the "fiscal cliff" danger, things are going slower than he'd like. He said typically it goes like this: They order one, then maybe three, then five, then ten, before the large orders start.
As far as Boeing goes, He said they are definitely interested. But Boeing is so busy building airplanes right now, they have diverted their new products people to that end. He said one reason Boeing is interested is because their current electrical backup system uses a central unit, with copper wires running throughout the plane. And a fuel cell system would eliminate the copper wires, hence a lot of weight.
Regarding Eko Vehicles: The CEO has died, so that is on hold.
Regarding Hobie Cat: That is still a possibility.
When asked when he thought they would be making some money, he estimated 6 to 12 months... so in my mind I decided to double that.
In summary: I am encouraged, and now confident, that it will happen for Neah, and all of us investors. When I first invested in Neah almost 5 years ago, I had no idea that it would take this long to make it happen. During that time I have had my doubts. But once again, I am a believer.
