Ener-Core, Inc. (ENCR)

[janice shell]

SEC Charges Canadian Individual in Fraudulent Microcap Scheme

https://www.sec.gov/litigation/litreleases/2022/lr25411.htm

https://www.sec.gov/litigation/complaints/2022/comp25411.pdf

[Dina]

Ok, thank you.

What i don´t understand how a stock can trade years with 1-20k volume daily and then it goes with this limited volume down from $6 dollars to low pennies with 5k or 10k here and there and management does nothing to support the stock.

It never had volume, 3 years. Somehow there is limited interest. It should trade different.

I was concerned there is maybe a plan to dilute at low pps, but so far they delayed always notes.

[dshade]

the bridge notes mentioned in 8k create pause due to uncertainty. once that resolves, hopefully after commissioned equipment resumes in early in 2019

[Dina]

This was a $5 stock 2016, $2 2017, $1 2018 and now .02-.05. And share structure is unchanged with 4m o/s. Why is it down to this level if it´s not completely failed and with positive plan? How is this possible with this share structure? And highest volume ever were 70k shares and this happened days ago. They watched it all the way down to this level without news.

"Additionally, we are currently exploring projects that would entail construction of our own power installations using a Build-Own-Operate (BOO) model, which we forecast could provide unlevered internal rates of return in excess of 20%, depending upon a variety of factors, including the degree to which such projects are successful. While we expect to receive the bulk of our future revenues for the next several years from the CMLA with Dresser-Rand, we believe that the selected project opportunities may provide an additional revenue channel. We are evaluating our possible role in the development of certain California-based projects which would involve the integration of our technology with additional third-party equipment, to provide a recurring revenue stream from power sales and increase our cash flows from other sources that make use of our Power Oxidizer systems. We are exploring the possibility of financing any such projects from external sources. To the extent we engage in such projects, we do not expect them to be deployed prior to our fiscal year ending December 31, 2019. To the extent that we engage in such projects and they are successful, we expect them to increase our revenues and cash flows, increase our asset base, and accelerate the technological adoption and commercial acceptance of our Power Oxidizer technology. We may not, however, achieve positive results in any such projects and all projects under consideration are in the early planning stages.

In September 2018, we entered into a memorandum of understanding to sell the unit previously utilized for the FSAT. The customer provided us a cash advance of $350,000 during the three months ended September 30, 2018 pursuant to the memorandum of understanding. The memorandum of understanding calls for the good faith negotiation of a binding contract to purchase the FSAT unit at a mutually agreed upon price. The customer may demand repayment of the cash advance at any time prior to the execution of a binding contract, and we may refund the advance at any time at our discretion. As of November 19, 2018 we had not reached a binding contract agreement with the customer. We do not consider the cash received to be backlog at November 19, 2018."

[Dina]

Why is ENCR at this level with 4 million o/s? What´s your take on it? Share structure is unchanged but someone sold it down to .02 with approximately 200k shares, and it was not dilution. Probably tax loss selling. And no pr 2018, but seems they have a positive plan:

Investor presentation June 2018: https://www.otcmarkets.com/filing/html?id=12821959&guid=-Vc8Up5FeAkaZ3h

We are entering the CHP market, which is highly competitive and historically conservative in its acceptance of new technologies. To date, we have sold and delivered one 250 kW commercial Powerstation unit to the Netherlands and have sold one additional 250 kW Powerstation unit to a landfill site in Southern California. We also sold two 2 MW Power Oxidizers to Dresser-Rand in October 2016, which were delivered to a Stockton, California biorefinery site owned by Pacific Ethanol and placed into commercial operation in January 2018. These three systems represent our $2.9 million order backlog as of November 19, 2018. To date, we have billed and collected $2.8 million of our existing backlog. To date, full commissioning has not occurred for the two Pacific Ethanol systems due to site specific items unrelated to our portion of the larger Pacific Ethanol project. The two systems have operated in excess of 1,000 hours to date.

Between March and September 2018, the site-specific items and issues with respect to the two Pacific Ethanol systems were substantially resolved. The units were recommissioned in October 2018 and are available for full operations as of November 15, 2018. Additional automation and controls testing is required before the units are considered to be fully automated commissioned and recognizable for revenues by us, which we currently expect to occur in late 2018 or early 2019.

[dshade]

ENCR has such promise in 2015

[Skyhawk93]

I just stumbled onto this company today, interesting concept but looks like it it is dead.? No volume, and nobody has posted on here is almost a year?

[Kicko]

Well it is at a real bottom right now and trending down. Analysts are crapping all over it but if you dig into the product and then look at the last 2 board placements you can tell they intend on turning it around. Instead of being a sales company they are just going to license their technology which is a great idea.

[makinezmoney]

Don't have Private Messaging Enabled

But thanks for the comments on Novacab.

Ya... not sure why I was suspended but nice to be contributing to the
greater good again.


So.. is this $ENCR a WINNER ?????????

[Kicko]

Right again on the board placement, ENCR is a huge growing me floor opportunity

[Kicko]

Told y'all news on the way get in while you can

[Kicko]

Ok I'm in

[lakingsphan0427]

The Dresser-Rand Business Accelerates License Fee Payments to Ener-Core and Evaluates Potential Expansion of License Agreement to Cover Deployment of Larger Power Capacity Products

Amended Agreement Results in $1.2 Million Accelerated License Fee Payment to Ener-Core

IRVINE, CA--(April 12, 2017) - Ener-Core, Inc. (OTCQB: ENCR), a developer and licensor of innovative gas conversion technologies for global commercial and industrial facilities, and the Dresser-Rand business, part of Siemens Power and Gas Division, have amended their June 2016 Commercial and Manufacturing License Agreement (CMLA) to advance a partial payment of $1.2 million in license fees associated with the commercial sales of Power Oxidation (PO) systems within the 2 MW power capacity.

In addition, the Dresser-Rand business has the option to structure a new commercial offering with Ener-Core that will expand upon the power capacity of the Power Oxidation systems, from the currently licensed 1-4 MW range to potentially integrate the greater power capacity versions with the larger range of Siemens gas turbines. This amendment to the CMLA grants the Dresser-Rand business teams a five-month period to perform a market evaluation for the potential pairing of Ener-Core's technology with various larger gas turbines, and negotiate an expanded license to manufacture and sell larger power capacity applications of Ener-Core's technology.

The Ener-Core Power Oxidizer replaces the gas-fired combustion chamber within traditional combined heat and power gas turbines. The integrated product resulting from the pairing of the Power Oxidizer with traditional gas turbine technology enables the Dresser-Rand business to provide clients from a wide range of industries with a first-of-kind solution that can substantially reduce air pollution by enabling industrial sites to convert their low-quality waste gases directly into useful clean power, heat and steam. The Dresser-Rand business and Ener-Core engineering teams have worked collaboratively on the effort of integrating the Power Oxidizer into the Dresser-Rand 2 MW KG2 gas turbine and are nearing completion of the commissioning effort of the first two systems at the Pacific Ethanol Stockton industrial bio-refinery.

Jesus Pacheco, Executive Vice President of Technology and Innovation at the Dresser-Rand business, said: "We are pleased with the tremendous progress that our collective engineering teams have made on the development. It is a milestone that this new solution for converting previously unusable waste gases directly into clean power, heat and steam is now to be commissioned. The substantial progress made on the integration of the technology gives us a high confidence level for the commercialization of this innovative technology and allowed us to commit to an advanced payment on several KG2/PO licenses. We look forward to working with Ener-Core to potentially expand the scope of our existing license and looking into pairing the Power Oxidation technology with our larger gas turbines in the near future."

Alain Castro, CEO of Ener-Core commented: "We are excited that the Dresser-Rand business is confident in the collective progress that our technical and commercial teams have made. Ener-Core sees this amendment and the $1.2 million license fee advance as a turning point in the commercialization of our Power Oxidizer technology as we strive toward profitability. We are also truly honored to continue working with their teams to evolve our Power Oxidation technology into larger sizes to accommodate an even wider range of gas turbine power capacities, and enable those gas turbines to produce useful, clean power from waste gases that are typically flared off by a wide range of industries."

About Ener-Core
Irvine, California-based Ener-Core, Inc. (OTCQB: ENCR) owns and licenses its proprietary Power Oxidation technology, which has been commercially deployed and generates base load, clean power from polluting waste gases including methane. Ener-Core's patented Power Oxidizer is designed to turn one of the most potent pollution sources into a profitable, "always on" source of clean energy. Ener-Core's technology offers an alternative to the flaring (burning) of gaseous pollution while generating operating efficiencies and reducing the costs of compliance with environmental regulations. Ener-Core offers the 250 kW Ener-Core EC250 and the larger, 2 MW Ener-Core Powerstation KG2-3GEF/PO. For more information, please visit www.ener-core.com.

About the Dresser-Rand Business
The Dresser-Rand business, part of Siemens Power and Gas (PG), is a leading supplier of mission-critical, high-speed rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. As part of the global Siemens family, the Dresser-Rand business offers an equipment portfolio that includes turbo and reciprocating compressors; steam turbines; industrial and aero-derivative gas turbines; high-speed engines; and modular power substations. With the world's largest installed base, one of the world's largest technical support and service center networks, and a presence in more than 150 countries worldwide, the Dresser-Rand business delivers local solutions and services on a global scale. For more information, please visit www.dresser-rand.com.

Cautionary Statement Regarding Forward Looking Statements
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Information provided by Ener-Core, Inc., such as online or printed documents, publications or information available via its website, including this press release, contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," "outlook," "designed" and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The information contained in this release is as of the date of this press release. Except as otherwise expressly referenced herein or required by law, Ener-Core assumes no obligation to update forward-looking statements.

Media and Investor Relations:
MZ Group
Chris Tyson
Managing Director - MZ North America
Direct: 949-491-8235
[e-mail]
www.mzgroup.us





MZ Group
New York, NY
Phone: [phone]

[js9909]

It's funny when they call the person telling them they are going to lose money a troll, yes. It definitely is. (:

[Pasta]

It' always funny when people lose money isn't it?

[js9909]

Hate to say I told you so? Lol

[lakingsphan0427]

Never thought ENCR could go this low.. I am patting my back now that I sold all my position including my kids' last year..
I still think ENCR have a good technology in their hands just need good management to run it.. I will re-enter when things start rolling..

[Pasta]

I don't know what to make of the price depreciation. Obviously they are strapped for cash until dresser rand sells the guaranteed number of units that are required of them in their contract with ENCR. Perhaps they are driving the price down in order to accumulate before a rise in price OR we are just screwed. 99 out of 100 penny stocks end up with the speculators loosing their pants.

[jontoles]

I need some words of encouragement. I'm very worried.

[lakingsphan0427]

ENER-CORE Powers Up: Pacific Ethanol Biorefinery Integrates the Power Station

ENER-CORE, a developer and licensor of gas conversion technologies for commercial and industrial facilities, took a major step forward late last month in powering up its first 2 MW Power Oxidizer at the Stockton Biorefinery site owned by Pacific Ethanol

ENER-CORE, a $7 million publicly traded startup [traded over the counter under the symbol “ENCR”], took a major step forward in late-January in powering up its first 2MW “Power Oxidizer” at a Stockton Biorefinery site owned by publicly traded Pacific Ethanol [traded under the symbol “PEIX”]. For context, Pacific Ethanol currently has a market cap of $330 million [again, to ENER-CORE’s $7 million]. ENER-CORE announced it has achieved mechanical completion AND initial start-up of its 2 megawatt [MW] “Power Station” [resulting from the integration of the Dresser-Rand KG2 gas turbine and ENER-CORE’s 2 MW “Power Oxidizer”].

“End-uses for the utility grade power created by the Power Oxidizer, in conjunction with a purpose-built turbine [in creation of a “Power Station”], help create the IRR value-prop of the Power Oxidizer technology [i.e. the ROI or payback period].”

For those unfamiliar, ENER-CORE licenses its proprietary, patent-protected “Power Oxidizer” technology. Prior to licensing opportunities, ENER-CORE spent the better part of a decade [and considerable capital: $32 million in Additional Paid-In Capital, $38.7 million in Accumulated Deficit as of last public filings] developing what it believes to be a disruptive technology. Post-licensing, notably with Dresser-Rand [now a SubCo of $103 billion market cap Siemens], ENER-CORE’s Power Oxidizer is an oxidization vessel that converts both rich and poor-quality greenhouse gases into utility grade power.

At its unique core, this is what the Power Oxidizer is and does. ENER-CORE’s Power Oxidizer [when coupled with purpose-built turbines via its licensing partner(s)] turns greenhouse gases of a wide quality spectrum, as noted above, into utility grade power. What differentiates the Power Oxidizer is its unique ability to operate at the far-ends of the quality spectrum. In particular, at the poor-quality end [i.e., the “non-rich” end].

In many cases, greenhouse gases are emitted as a by-product of the industrial processes of many industries: pharma, wastewater treatment, petrochemical refining, food processing, painting, etc. In these cases, these greenhouse gases are “weak” [i.e., the greenhouse gases don’t have the high-energy density per cubic foot that is required to use the gas as a fuel] AND they are also contaminated with lots of other bad actors that you would never want to run through a combustion chamber [the greenhouse gases would cause damage the combustion chamber, etc.]. ENER-CORE’s Power Oxidizer can create power from these weak and contaminated greenhouse gases.

ENER-CORE can also work with other toxic gases; such as “solvents” from industrial paint booths [think of the paint booths used to paint cars or aircraft] and also the Volatile Organic Compounds that result from industries that process organic waste [wastewater treatment, food processing, landfills, etc.]. ENER-CORE makes these toxic, poor quality gases, useful. Additionally, ENER-CORE generates the converted power?—?the end result of its Power Stations?—?with almost zero emissions; which makes it easy for the owner/operator to obtain environmental permits for on-site power generation. It should be noted that these are often difficult to obtain and that the difficulty in obtaining these environmental permits prevents many industrial companies from being able to install a cogeneration plant on their site. In a way, this hurdle provides a barrier to entry for ENER-CORE/Power Oxidizer competitors.

Obviously, the utility grade power converted and created by the Power Stations can then be used as a fuel source [on-site for the end-customer of the technology] or in some instances it can be sold back to the grid [thus creating a “cost-plus” mechanism for the end-customer of the technology]. Both end-uses for the utility grade power created by the Power Oxidizer, in conjunction with a purpose-built turbine [in creation of a “Power Station”], help create the IRR value-prop of the Power Oxidizer technology [i.e. the ROI or payback period].




ENER-CORE outlines its Power Oxidizer technology in a recent investor presentation

As speculated on but confirmed by an ENER-CORE press release, ENER-CORE’s Power Station will provide substantial cost benefits for Pacific Ethanol; bringing a quantifiable, data-based return on investment to the Ethanol Complex giant. According to ENER-CORE, the Power Oxidizers with the Dresser-Rand KG2 turbine are rated to provide a combination of up to 3.5 MW of electricity and over 26,000 pounds of steam/hr from the two Power Station units. The Power Stations are expected to reduce the quantity of energy currently purchased by Pacific Ethanol’s Stockton plant, saving an estimated $3 million to $4 million per year, representing a significant reduction in operating expenses for the plant.

The integrated solution, including the Power Oxidizer and other individual components, operated successfully and demonstrated the ability to produce both power and steam according to specifications. The joint engineering teams from the companies are working to complete the commissioning process anticipated in the first quarter of 2017.

ENER-CORE has long marketed that it believes, based on all current inputs, that its Power Oxidizers can generate a ~25% IRR for end customers of the technology. I’ve found out, via interviews with management, that this IRR is excluding any end customer specific IRR contributors. That is to say: ENER-CORE is NOT factoring in any real, non-core benefits [i.e., benefits not directly associated with utility grade power creation and/or pollution abatement] that its end customers [or its licensees’ end customers] are realizing. I found this quite shocking, in that this alone equates to an impressive deep-value investment thesis.

I believe this, while conservative on the part of management, grossly understates the total IRR of the Power Stations utilizing the Power Oxidizer technology [and further grossly understates the IRR to the end customer?—?which, in turn, overstates the payback period estimation]. I believe there to be substantial deep-value in ENER-CORE [from an EV standpoint] as a result of it not marketing its Power Oxidizer IRR [and further integrated Power Station IRR] at fully-baked IRR’s [i.e., inclusive of non-core, end-customer IRR additions]. Put another way: I don’t believe appropriate levels of growth have been “priced in” to the common stock based on end-customer, fully-baked IRR’s.

With its first Power Station power up and deployment, with a recent funding round out of the way and providing visibility into forward-looking working capital needs, with a major, name-brand licensee on the books, and with a major TAM-participant potentially setting an early adopter tone for an important end-vertical for the Power Station, I think ENER-CORE is just a few data-point collections away from being rewarded with market cap for its efforts. Again, inclusive of IP, “Plant Property & Equipment” [or what GAAP abbreviates on the balance sheet as “PP&E”], and what should soon be a cash-flow neutral enterprise ENER-CORE is valued at just $7 million. My guess is, and I can say this with some degree of confidence, that changes soon.

Look for ENER-CORE to provide a steady diet of data-point updates over the next few months; and look for Dresser-Rand to continue to sell new Power Station deployments. With both should come increased market cap. ENER-CORE is in fact currently illiquid and does in fact have something of a messy cap structure, but if you like early-stage, seed-level disruptive tech?—?ENER-CORE is worth looking into. I sure am.

Good luck everybody.

[dshade]

Interesting pr

[lakingsphan0427]

Ener-Core's 2 MW Power Oxidizers Power Up at Pacific Ethanol Stockton Biorefinery

IRVINE, CA --(January 23, 2017) - Ener-Core, Inc. (OTCQB: ENCR), a developer and licensor of innovative gas conversion technologies for global commercial and industrial facilities, and the Dresser-Rand business, part of Siemens Power and Gas Division, have achieved mechanical completion and initial start-up of the innovative 2 megawatt (MW) PowerStation resulting from the integration of the Dresser-Rand KG2 gas turbine and Ener-Core's 2 MW Power Oxidizer at the Stockton Biorefinery site owned by Pacific Ethanol (NASDAQ: PEIX).

The integrated solution, including the Power Oxidizer and other individual components, operated successfully and demonstrated the ability to produce both power and steam according to specifications. The joint engineering teams from the companies are working to complete the commissioning process anticipated in the first quarter of 2017.

The Power Oxidizers with the Dresser-Rand KG2 turbine are rated to provide a combination of up to 3.5 MW of electricity and over 26,000 pounds of steam/hr from the two PowerStation units. The PowerStations will provide Pacific Ethanol with a first-of-its-kind solution that will reduce air pollution by converting by-product low-quality waste gases generated by the Stockton plant's ethanol production into useful electricity and steam. The PowerStations are expected to reduce the quantity of energy currently purchased by Pacific Ethanol's Stockton plant, saving an estimated $3 million to $4 million per year, representing a significant reduction in operating expenses for the plant.

The Ener-Core Power Oxidizer is designed to provide an alternative to a traditional combustion heat source normally used with traditional gas turbine power generation. The Power Oxidizer, when replacing the traditional combustion chamber of an integrated gas turbine, allows a wide range of industries to utilize and eliminate previously unusable and pollutive low-quality gases and certain volatile organic compounds as a low-cost fuel source to generate heat, power and steam for their on-site operations with significantly lower pollution profiles.

"This 'Power Up' represents the first time any technology company has achieved the 2 MW power barrier in a combined heat and power industrial plant utilizing Power Oxidation technology," said Alain Castro, CEO of Ener-Core. "The late December initial start-up was a resounding success and clearly validates our technology in a major industrial application. We look forward to the on-going commissioning efforts and to celebrating our first commercial deployment with Dresser-Rand in the next few months during the Pacific Ethanol Stockton Biorefinery Ribbon-Cutting ceremony."

About Ener-Core

Irvine, California-based Ener-Core, Inc. (OTCQB: ENCR) owns and licenses its proprietary Power Oxidation technology, which has already been commercially deployed and generates base load, clean power from polluting waste gases including methane. Ener-Core's patented Power Oxidizer turns one of the most potent pollution sources into a profitable, "always on" source of clean energy. Ener-Core's technology offers an alternative to the flaring (burning) of gaseous pollution while generating operating efficiencies and reducing the costs of compliance with environmental regulations. Ener-Core offers the 250 kW Ener-Core EC250 and the larger, 2 MW Ener-Core Powerstation KG2-3GEF/PO. For more information, please visit www.ener-core.com.

About the Dresser-Rand Business

The Dresser-Rand business, part of Siemens Power and Gas (PG), offers some of the most efficient and environmentally-friendly technology platforms, products and services in distributed power generation for oil and gas, industrial, institutional, and commercial clients and rural electrification programs. Solutions include: combined heat and power (CHP) systems, biogas-fueled gen-sets, hybrid systems (solar photovoltaic and engine-based gen-sets), biomass and waste-to-energy steam turbine generators, compressed air energy storage (CAES), and more. With the world's largest installed base, one of the world's largest technical support and service center networks, and a presence in more than 150 countries worldwide, the Dresser-Rand business delivers local solutions and services on a global scale. For more information, please visit www.dresser-rand.com.

Cautionary Statement Regarding Forward Looking Statements

Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Information provided by Ener-Core, Inc., such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The information contained in this release is as of the date of this press release. Except as otherwise expressly referenced herein or required by law, Ener-Core assumes no obligation to update forward-looking statements.

Media and Investor Relations:

MZ Group
Chris Tyson
Managing Director - MZ North America
Direct: 949-491-8235
[e-mail]
www.mzgroup.us



MZ Group

http://www.mzgroup.us/


MZ Group
61 Broadway, Suite 3035 New York, NY 10006

[lakingsphan0427]

ENER-CORE: PIK Note Execution Signals Market Acknowledgement Of Model Shift And Potentially Disruptive Tech

Dec. 9, 2016 5:33 AM ET

Ener-Core, Inc. (ENCR)

Includes:

Dresser-Rand Group Inc. (DRC), PEIX, SIEGY

NOTE: This initiation note contains information regarding an enterprise currently listed over the counter and which trades irregularly; which brings with it inherent risks of illiquidity, highly-inefficient pricing, volatility, potentially lower reporting requirements, and/or reduced shareholder rights. This note will also cover an enterprise with operations having substantially NOT reached scale - which brings with it its own set of non-traditional risks. Please consult an advisor prior to making an investment decisions.

Ener-Core (OTCQB:ENCR) - which licenses its proprietary, patent-protected"Power Oxidizer"technology - has been in transition from a manufacturing model to a licensing model dating back ~36 months. During this transition period the enterprise has been under constant pressure: financial pressure, capital market vehicle pressure, and even activist pressure. This is despite having made substantial developmental progress along the way; at least dating back the last few years. Further, at times during this transition period it appeared that Ener-Core was a serious going concern risk.

However, in late November-2016 Ener-Core executed a Payment-in-Kind (aka "PIK") fundraising event which, to me, pulled forward the urgency in evaluation of the investment thesis at the enterprise. The PIK note execution meant many things to me, to which I detail within this initiation, but most importantly the PIK note stabilized the Ener-Core balance sheet. It also, in parallel, provided a degree of visibility into continuing operations that has not often been afforded to the enterprise; more a function of proving out a new, potentially disruptive technology than poor management. In the context of other multi-year strategic initiative completions, I believe Ener-Core to have reached a real AND symbolic inflection point. I believe now, post-PIK note raise, Ener-Core should be considered for capital deployment.

The Power Oxidizer: Ener-Core's Technology…

Substantially, all of Ener-Core's non-debt enterprise value resides in the technology and IP that comprise its Power Oxidizer. Ener-Core has spent the better part of a decade and considerable capital [$32 million in Additional Paid-In Capital, $38.7 million in Accumulated Deficit (as of the last ENCR 10-Q filing)] developing what it believes to be a disruptive technology.

Ener-Core's Power Oxidizer is an oxidization vessel that converts both rich and poor-quality greenhouse gases into utility grade power. At its unique core, this is what the Power Oxidizer is and does. But, that description, while concise and accurate, doesn't necessarily encapsulate all that the Power Oxidizer does and how it does it; both of which are key in establishing the defensible position which the Power Oxidizer occupies.

Ener-Core's Power Oxidizer [when coupled with purpose-built turbines via its licensing partner(s)] turns greenhouse gases of wide quality spectrum, as noted above, into utility grade power. What differentiates the Power Oxidizer is its unique ability to operate at the far-ends of the quality spectrum. In particular, at the poor-quality end (i.e., the "non-rich" end).

In many cases, greenhouse gases are emitted as a by-product of the industrial processes of many industries: pharma, wastewater treatment, petrochemical refining, food processing, painting, etc. In these cases, these greenhouse gases are "weak" (i.e., the greenhouse gases don't have the high-energy density per cubic foot that is required to use the gas as a fuel) AND they are also contaminated with lots of other bad actors that you would never want to run through a combustion chamber (the greenhouse gases would cause damage the combustion chamber, etc.). Ener-Core's Power Oxidizer can create power from these weak and contaminated greenhouse gases.

Ener-Core can also work with other toxic gases; such as "solvents" from industrial paint booths (think of the paint booths used to paint cars or aircraft) and also the Volatile Organic Compounds that result from industries that process organic waste (wastewater treatment, food processing, landfills, etc.). Ener-Core makes these toxic, poor quality gases, useful. Additionally, Ener-Core generates the converted power - the end result of its Power Stations - with almost zero emissions; which makes it easy for the owner/operator to obtain environmental permits for on-site power generation. It should be noted that these are often difficult to obtain and that the difficulty in obtaining these environmental permits prevents many industrial companies from being able to install a cogeneration plant on their site). In a way, this hurdle prevents a barrier to entry for Ener-Core/Power Oxidizer competitors.

Obviously, the utility grade power converted and created by the Power Stations can then be used as a fuel source (on-site for the end-customer of the technology) or in some instances it can be sold back to the grid (thus creating a "cost-plus" mechanism for the end-customer of the technology). Both end-uses for the utility grade power created by the Power Oxidizer, in conjunction with a purpose-built turbine (in creation of a "Power Station"), help create the IRR value-prop of the Power Oxidizer technology (i.e. the ROI or payback period).

The following is an abbreviated description of 1) the Power Oxidizer technology as well as 2) the process in which the Power Oxidizer converts greenhouse gases to utility grade power (via the FY2015 ENCR 10-K):

“
"In nature, methane and other greenhouse gases react with oxygen in the air and are eventually decomposed through an oxidation reaction over a period of 10 to 20 years. The speed of the reaction is dependent on three primary variables: the temperature, the pressure of the gases, and the abundance of oxygen. The oxidation reaction is exothermic (i.e., generates heat as a natural output of the chemical reaction), but since the reaction occurs slowly in natural, ambient conditions, the heat generated by the reaction is quickly dissipated and normally unnoticeable. Our Power Oxidizer accelerates the natural process by introducing a hydrocarbon-rich waste gas stream into a vessel with a high concentration of air, under pressure, and at high temperature. The combination of these factors results in an oxidation reaction occurring in 0.5-1.25 seconds. By accelerating the reaction within the controlled, steady state environment of our Power Oxidizers, the heat generated from the reaction is compounded and we are able to capture and utilize the heat output within the heat profile ranges necessary to operate standard gas turbines or steam boilers without actually igniting the gas. Traditionally, industrial heat is provided by the combustion of a hydrocarbon which generates pollution such as nitrogen oxide (NO2), or NOX, as a byproduct. By comparison, our Power Oxidizers provide similar industrial grade heat at temperatures below when NOX is generated in a combustion reaction. The combination of our ability to utilize a low quality or "waste" fuel with the elimination of NOX generation (as compared to combustion heat sources) provides our Power Oxidizers with a superior alternative to traditional heat generation sources. Our Power Oxidizers are designed to operate on gases with extremely low energy densities as compared to alternative chemical reactions, such as combustion. While the Power Oxidizers operate on waste gases, they may also be operated on commercially available natural gas or other high quality hydrocarbon gas products, or a combination of both waste gases and commercially available natural gas or other high quality hydrocarbon gas products"

(click to enlarge)


via Ener-Core October 2016 Investor Presentation

Ener-Core has long marketed that it believes, based on all current inputs, that its Power Oxidizers can generate a ~25% IRR for end customers of the technology. I've found out, via interviews with management, that this IRR is excluding any end customer specific IRR contributors. That is to say: Ener-Core is NOT factoring in any real, non-core benefits (i.e., benefits not directly associated with utility grade power creation and/or pollution abatement) that its end customers (or its licensees' end customers) are realizing. I found this quite shocking, in that this alone equates to an impressive deep-value investment thesis.

One of these IRR calculation exclusions which I can call out directly is the exclusion of any D&A benefits end-customers are realizing from a tax standpoint (i.e., in the avoidance of being cash tax payors and/or in helping drive down cash tax responsibility as the Power Station is being depreciated). As Ener-Core's Power Stations age (and, really, this would be Ener-Core's licensees' Power Stations), end customers will be able to depreciate the Power Stations based on the IRS/GAAP assigned depreciation curve of the PP&E (the Plant, Property, and Equipment - as defined by GAAP). This, regardless of this NOT being a cash expense, as many well know, is a benefit to the end customer in that this is a deduction on the income statement from "earnings". What this does is lower the end customers' cash tax exposure and/or impact to NOL's being used to offset cash tax exposure; as would any GAAP defined D&A. But, again, Ener-Core DOES NOT market this into its fully baked IRR's.

I believe this, while conservative on the part of management, grossly understates the total IRR of the Power Stations utilizing the Power Oxidizer technology ( and further grossly understates the IRR to the end customer - which, in turn, overstates the payback period estimation). I believe there to be substantial deep-value in Ener-Core (from an EV standpoint) as a result of it not marketing its Power Oxidizer IRR (and further integrated Power Station IRR) at fully-baked IRR's (i.e., inclusive of non-core, end-customer IRR additions). Put another way: I don't believe appropriate levels of growth have been "priced in" to the common stock based on end-customer, fully-baked IRR's.

(click to enlarge)


via Ener-Core October 2016 Investor Presentation

Dresser-Rand Licenses the Power Oxidizer Technology: Ener-Core Hits an Inflection Point…

Apparently, Dresser-Rand (NYSE:DRC) - which was recently bought out by $95 billion market cap Siemens (OTCPK:SIEGY) for $7.6 billion - was convinced enough of this IRR marketing effort to engage Ener-Core in prove-out of its technology; which eventually led to a licensing agreement. Dresser-Rand's engagement with Ener-Core, preceding its licensing agreement, dates back to 2014. Dresser-Rand is Ener-Core's sole licensee, at this point, and has licensed global deployment of the Power Oxidizer for the range of Power Station capacity ranging from 1-4 MW (of power capacity). Currently, this comprises substantially the full spectrum of power capacity at Ener-Core.

However, Ener-Core does in fact have smaller power capacity deployment in the 250 Kw-333 kW range. The smaller capacity power range was the first range developed by Ener-Core. This power range was developed in the period preceding the model-transition period. While this period, the pre-transition period, is in fact responsible for a large majority of the model-stress that exists even today (pre-PIK execution), it did in fact yield this junior power capacity. Remember, it was this junior power capacity that eventually led to the (currently) senior power capacity being developed (which led to an eventual licensing agreement with Dresser-Rand). It should be noted that Ener-Core has only deployed its smaller range of power capacity in abbreviated scale and that it, per interviews with management, is not aggressively promoting this range of scale. Rather, Ener-Core is focusing all enterprise efforts into development of larger power capacity ranges. Again, Ener-Core developed 8X power capacity growth (from junior to senior power capacity) in the three years spanning from 2013-2016. I mention this to provide context to power capacity growth expectations.

Dresser-Rand, which branded its Power Station variation " KG2-3GEF/PO", sold its first Power Station in January 2015 to Pacific Ethanol (NASDAQ:PEIX) - a two-unit total purchase order. Ener-Core, having since met and/or exceeded all concept prove-out demands of Dresser-Rand, has completed delivery of the purchase order (via Dresser-Rand delivery). Pacific Ethanol has noted that the Power Stations delivered are intended to significantly reduce the quantity of energy currently purchased by Pacific Ethanol's Stockton-located plant and are expected to reduce its energy costs by an estimated $3 to $4 million per year; representing a significant reduction in operating expenses for the plant.

(click to enlarge)


via Ener-Core October 2016 Investor Presentation

Per its licensing agreement, Dresser-Rand will have a worldwide license to manufacture, market, commercialize, and sell the Power Oxidizer as part of the Combined System (i.e., the Power Stations) within the 1 MW to 4 MW range of power capacity. Initially, the license will be exclusive and will remain exclusive for so long as Dresser-Rand sells a minimum of number of units of the Combined System in each calendar year beginning in 2017 (i.e., the "Sales Threshold"). If Dresser-Rand does not meet the Sales Threshold in any calendar year and the Sales Threshold is not otherwise waived, Dresser-Rand may maintain exclusivity of the license by making a "true-up" payment to Ener-Core for each unit that is in deficit of the Sales Threshold; provided, however, that Dresser-Rand may not maintain an exclusive License by making a True-Up Payment for more than two consecutive calendar year periods. In the event Dresser-Rand does not meet the Sales Threshold, does not qualify for a waiver, and elects not to make the True-Up Payment, the license will convert to a non-exclusive license. Given Dresser-Rand's substantial investment into developing a purpose-built turbine and into the process of concept-prove out (which was multi-year), I consider a lapse of licensing to be extremely low probability (and of extremely low risk to any investment thesis). Additionally, it should be noted that Dresser-Rand paid an initial license fee of $1.1 Million; so, Dresser-Rand hasn't solely made a substantial investment into developing a purpose built turbine but also it has spent cash upfront to obtain this exclusive license.

Now, upon a sale by Dresser-Rand of a Combined System unit to a customer, the licensing agreement requires Dresser-Rand to make a license fee payment to Ener-Core equal to a percentage of the sales price of the Combined System purchased; in accordance with a predetermined fee schedule that is anticipated to result in a payment of between $370,000 and $600,000 per Combined System unit sold. For clarity, the "$370,000" and "$600,000" ranges are the contractual bounds of the fee schedule payout; however, management believes the likely range of per-unit license fees to be between $430,000 - $480,000 per unit. I well-prefer management's estimates in that the lower-end of the range is substantially higher than the lower range of the contractual bounds. This management-estimated range provides a much higher baseline monetization expectation than that of the contractual bounds; thus, increasing financial visibility. Again, this is something that has alluded Ener-Core largely dating back to inception.

I believe Ener-Core's model to have hit an inflection point. Post "R&D"-phase (i.e., "pre-model transition), Ener-Core has made substantial developmental progress:

1) Additional Technical Development: Ener-Core has scaled up its technology from 250kW to 2MW (an ~8X increase in capacity).

2) Completion of Siemens Due Diligence: Ener-Core accommodated and supported the extensive due diligence efforts of the Siemens team leading up to the eventual Dresser-Rand Licensing Agreement; including:
•IP Due Diligence: to ensure Ener-Core's patents were legally sound and that Siemens would not run into issues when deploying the Ener-Core technology globally under its Dresser-Rand brand
•Scalability/Reliability Due Diligence: Siemens mobilized its "aero-derivative" turbine engineers, which typically design aircraft turbines, for testing and analysis of the Ener-Core technology; Ener-Core's team had to prove to these engineers that the technology could scale up to 2 MW and could operate reliably in the field
•Market Value-Prop Due Diligence: Siemens reached out directly to many of its own existing customers across a wide range of verticals to discuss a "hypothetical" future product and assess how these customers would react to such a product being launched; taking on substantial reputational risk in the process

3) Negotiating and Structuring the License Agreement

I believe the capital markets agree with my assumption, based on recent financial engineering executed by Ener-Core.

(click to enlarge)


via Ener-Core October 2016 Investor Presentation

Ener-Core Executes a PIK Note: Sentiment Has Turned Positive…

First, to take a step backward, it should be noted that the model switch at Ener-Core has not been cheap; and it has not gone without hiccup. Ener-Core has been forced to participate in several dilutive, some would argue punitively-expensive rounds of financing. Theses rounds have created what could be concluded as substantial cap structure overhang. Put another way: without substantial forward, financial engineering transactions - there will be share float expansion if/when Ener-Core equity pricing moves higher. Now, it should not go without mention that these expansions - at least to some degree - will also be funding events as much of the dilution will come via warrant and/or option monetization. Still, unless accretive, most market participants generally consider share float expansion a negative.

But, it isn't all bad. Ener-Core is still a going concern as a direct result of its ability to raise funds in prior rounds- punitively dilutive and/or expensive or not. Ener-Core, in that, achieved exactly what it intended to achieve; it is still a viable (and growing healthier) enterprise. Ener-Core knew, or at least this is my suspicion, that if it could simply reach monetization (and further - cash flow breakeven) that it could reward shareholders in time (dilution included). The technology, as is represented by Ener-Core's global patent portfolio (inclusive of 41 issued patents and 29 pending patents), is real. This is the point that I believe Ener-Core to have reached as an enterprise, the point of rewarding shareholders. I personally believe, and the market has confirmed that it shares this belief with me (see below), that Ener-Core is now worth capital exposure.

In late-November 2016 Ener-Core executed a debt restructuring that was led by a $4.5 million, in total, convertible PIK note issuance. PIK notes, for those unfamiliar, require zero ordinary interest (as per the terms of the specific PIK note). PIK notes, generally, are considered extremely risky (in that there is zero "return" on the notes to offset the risk of the note itself) and are generally only purchased by those with extreme confidence in the underlying enterprise. Again, this is because the PIK note is an "all in" investment; owning a PIK note is a bet that at maturation (or conversion in this case) you're going to be made whole on the principal and interest accrued. Given the size of the face value issue, again $4.5 million in total, I take this to be a meaningful endorsement of Ener-Core by the participating parties. I myself, had I been privy, would have participated in these PIK notes (based on the above outlined Bull Thesis).

The PIK notes were issued at a 10% Original Issue Discount (or "OID"), meaning net proceeds to Ener-Core will be ~$4.0 million in net (assuming the total PIK note issuance does not fluctuate). Additionally, each PIK note was issued with a five-year warrant to purchase 400 shares of common stock for each $1000 of notes purchased (at an exercise price of $3.00). While ultimately dilutive, the monetization of these warrants will in fact act as a future funding event. (Reiterating, the net dilution of the funding event will be a function of the capital deployment by Ener-Core and the ultimately realized IRR on that capital).

The convertible senior secured notes will be convertible into common stock initially at a conversion price of $2.50 per share and will automatically convert into shares of common stock on the fifth trading day immediately following the issuance date of the convertible senior secured notes on which the weighted average price (as defined in the convertible senior secured notes) of the common stock for each trading day during a 20-trading day period equals or exceeds $5.00. Additionally, pursuant to the transaction documents, the Ener-Core has agreed to secure the listing of its common stock on a national securities exchange by no later than December 31, 2017; which I think should be looked upon as bullish by common stockholders as we're nearly within 12 months of this requirement.

As a result of the PIK note execution, Ener-Core's balance sheet is much, much more fundamentally sound. Ener-Core's Q3/2016 balance sheet showed minimal cash, ballooning payables, and what was appearing to be certain equity dilution. Now, post-raise, Ener-Core nets 10 months' worth of cash burn runway (based on my modeling), payables-reset inclusive. It should also be noted that depending on how quickly Ener-Core can optimize its structure net of remaining legacy costs associated with its legacy manufacturing model that this runway could be expanded by a month or two.

Finally, Ener-Core does have a Power Oxidizer unit on its balance sheet(its "testing" unit that has been used in concept-prove out) which it could sell; and the unit has already been paid for and accounted for from a financial liability standpoint (in previous financial statements). If Ener-Core could sell this unit, again of which CAPEX risk has already been taken and identified, I believe this could net the enterprise between $2.25 million and $2.75 million. Ener-Core could discount the unit in an effort to sell the unit faster - but even if it did discount the unit I don't expect the unit to monetize for less than $2.0 million in a discounted offering.

Ener-Core: Now Licensing, Cash Flow Breakeven Within 12-Months…

Ener-Core's licensing agreement with Dresser-Rand, its only one currently, has minimum sales contractual obligations; or the requirement of a "true-up" payment (as described above). This provides Ener-Core with substantial visibility into its financials, a luxury it has never had prior. Given that its licensing agreement also has pricing floors for units sold (on a per unit basis; it should be noted that the licensing agreement does not have a pricing ceiling), this too provides financial visibility. Again, I believe it was this financial visibility that ultimately led to the successful PIK execution.

With this visibility in hand, Ener-Core expects to achieve total fee collection in full year 2017/1H2018 (from minimum licensing fee collection) of between $4.0 million and $4.5 million. This allows for the possibility, excluding any above listed ancillary variables, for Ener-Core to be at cash flow breakeven during full year 2017. It should be noted, however, that cash flow breakeven will be a direct function of cash collection; as there can be dislocation from licensing created sales and cash collection. Ener-Core collects 50% of each "per-unit sale license fee" at time that its licensee closes its purchase order. The remaining 50% gets collected at the "earlier of" 1) the date of commissioning of the system or 2) 12-months after the purchase order. For this reason, Ener-Core doesn't expect to achieve total fee collection within full year 2017 (as Ener-Core anticipates some of the "second 50% payments" will trickle into 2018). However, I'm more bullish cost cutting optimizations as well as top-end pricing realization by Dresser-Rand.

Still though, even if Ener-Core operates at slightly less than cash flow breakeven - one would presume it would have additional access to the credit markets (via PIK note issuance) and/or the equity markets (as at this point, the point in which Ener-Core would be needing to do a funding round, Ener-Core would have shown substantial progress and prior licensing fee collection). From there, presumably Ener-Core's final raise, cash flow breakeven could be achieved on a trailing four quarter basis on a go-forward basis (that is, into perpetuity). Reiterating all of the described scenarios assume zero pricing upside for units sold and zero additional legacy model cost cuts realized.

All told, I believe Ener-Core to have reached an inflection point - both operationally and financially. Ener-Core has visibility into operating at cash flow breakeven during full year 2017 and has high visibility into remedying any cash shortfall as a result of cash collection delays prohibiting cash flow breakeven operation (on a full year basis). Any further raise, it is my opinion, would be de minimis in sizing and at favorable terms. Ener-Core having a licensee like Dresser-Rand is real and symbolic in expressing that the enterprises investment thesis has reached a point of monetization. While Ener-Core has taken longer to come to market than some had expected, it's here now. I think it's time to consider Ener-Core for capital exposure.

Good luck everybody.


Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ENCR over the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

[Pasta]

ENER-CORE: PIK Note Execution Signals Market Acknowledgement Of Model Shift And Potentially Disruptive Tech

By Dallas Salazar  - December 9, 2016

Ener-Core (OTCQB:ENCR) - which licenses its proprietary, patent-protected"Power Oxidizer"technology - has been in transition from a manufacturing model to a licensing model dating back ~36 months. During this transition period the enterprise has been under constant pressure: financial pressure, capital market vehicle pressure, and even activist pressure. This is despite having made substantial developmental progress along the way; at least dating back the last few years. Further, at times during this transition period it appeared that Ener-Core was a serious going concern risk.

However, in late November-2016 Ener-Core executed a Payment-in-Kind (aka "PIK") fundraising event which, to me, pulled forward the urgency in evaluation of the investment thesis at the enterprise. The PIK note execution meant many things to me, to which I detail within this initiation, but most importantly the PIK note stabilized the Ener-Core balance sheet. It also, in parallel, provided a degree of visibility into continuing operations that has not often been afforded to the enterprise; more a function of proving out a new, potentially disruptive technology than poor management. In the context of other multi-year strategic initiative completions, I believe Ener-Core to have reached a real AND symbolic inflection point. I believe now, post-PIK note raise, Ener-Core should be considered for capital deployment.

[Pasta]

Any lawyers out there who can explain this wacky financing to us peasants?

November 25, 2016 08:31 ET

Ener-Core Completes Debt Restructuring and Signs Definitive Documents for Private Placement of up to $4.5 Million of Convertible Senior Secured Notes and Warrants

Concurrent Restructuring of Existing Senior Debt and New Financing Strengthen Financial Position

IRVINE, CA--(November 25, 2016) - Ener-Core, Inc. (OTCQB: ENCR), a developer of innovative gas conversion technologies for global commercial and industrial facilities, has entered into definitive documents for a private placement of up to approximately $4.5 million principal amount of convertible senior secured notes and warrants to purchase the Company's common stock. The Company anticipates that it will close on approximately $3.6 million principal amount of convertible senior secured notes and warrants onNovember 29, 2016. Pursuant to the terms of the transaction documents, the Company may issue up to an additional $900,000 principal amount of convertible senior secured notes and warrants on or prior to December 12, 2016. The Company intends to use the net proceeds from the private placement for working capital and general corporate purposes. In connection with the offering, the Company also restructured its existing senior debt on the same terms as the convertible senior secured notes issued in the private placement.

The convertible senior secured notes will bear no ordinary interest, as the principal amount of the convertible senior secured notes will be issued at a 10% original issue discount for aggregate proceeds of up to $4.0 million, and mature on December 31, 2018. Each investor will also receive a warrant with a five-year term to purchase 400 shares of common stock for each $1,000 of principal amount of convertible senior secured notes purchased by such investor, at an exercise price of $3.00 per share. The convertible senior secured notes will be convertible into common stock initially at a conversion price of $2.50 per share and will automatically convert into shares of common stock on the fifth trading day immediately following the issuance date of the convertible senior secured notes on which the weighted average price (as defined in the convertible senior secured notes) of the common stock for each trading day during a 20 trading day period equals or exceeds $5.00, provided that certain additional conditions have been satisfied. Additionally, pursuant to the transaction documents, the Company has agreed to secure the listing of its common stock on a national securities exchange by no later than December 31, 2017.

As part of the terms of the private placement, the Company will also provide each investor certain registration rights with respect to the securities issuable upon any conversion of such investor's convertible senior secured notes and the shares underlying the warrants.

"The closing of the new financing and amendment of our existing debt considerably improves Ener-Core's financial position, as the amount of cash flow required to address our interest expenses has been substantially reduced," said Alain Castro, CEO of Ener-Core. "This tranche of capital from both new and existing investors, combined with our shift toward a leaner, license fee-based business model, provides us with a greater opportunity to achieve positive cash flow operations in the next 15 months."

The securities offered and sold in this private placement and the securities issuable upon any conversion or exercise, as applicable, thereof were not and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

Further details regarding this private placement can be found in Ener-Core's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 25, 2016.

[lakingsphan0427]

New Video Introducing the Dresser-Rand KG2-3G Gas Turbine with the Ener-Core Power Oxidizer


http://www.dresser-rand.com/resources/kg2-3g-ener-core-video/

[smooch]

About time! Good news

[Pasta]

October 21, 2016 08:31 ET

Ener-Core Completes Delivery of its First 2 MW Power Oxidizers to Pacific Ethanol Stockton Biorefinery

Represents Ener-Core's First Commercial Shipment of its Recently Scaled-Up 2 MW Systems

IRVINE, CA --(Marketwired - October 21, 2016) -Ener-Core, Inc. (OTCQB: ENCR), a developer of innovative gas conversion technologies for global commercial and industrial facilities, has delivered two of its 2 megawatt (MW) sized Power Oxidizers to the Stockton Biorefinery site owned by Pacific Ethanol (NASDAQ:PEIX). The shipment is a momentous occasion for Ener-Core, having deployed a commercial scale-up of the power capacity of the Power Oxidizer technology from 250kW to 2 MW over the last 18 months.

The Power Oxidizers, after delivery and installation with the Dresser-Rand KG2 turbine, are expected to provide up to 3.5 MW of electricity and over 26,000 pounds of steam/hr from the two Power Station units. The Power Stations will provide Pacific Ethanol (PEIX), a leading producer and marketer of low-carbon renewable fuels, with a first-of-its-kind solution that can reduce air pollution by converting by-product low-quality waste gases generated by the Stockton plant's ethanol production into useful electricity and steam. The Power Stations are intended to significantly reduce the quantity of energy currently purchased by Pacific Ethanol's Stockton plant and are expected to reduce their energy costs by an estimated $3 to $4 million per year, representing a significant reduction in operating expenses for the plant.

The Ener-Core Power Oxidizer is designed to provide an alternative to a traditional combustion chamber within gas turbines for purposes of power generation. The Power Oxidizer, when coupled with an integrated gas turbine, allows a wide range of industries to utilize previously unusable low-quality gases and certain volatile organic compounds as a low-cost fuel source to generate on-site heat, power and steam. Ener-Core's delivery is the first step in the commissioning process and Ener-Core's engineering team will continue to work with the engineering teams from Dresser-Rand toward the installation of these systems at Pacific Ethanol's Stockton Biorefinery in next few months.

Alain Castro, CEO of Ener-Core, commented: "The enthusiasm within our team runs quite high at the moment, as this is an important milestone for all of us, especially the engineers and staff in our Irvine, California headquarters that have worked so hard on the scale-up of this technology over the last two years. The road to achieving utility-grade scale of our Power Oxidizer represents a significant engineering accomplishment with global repercussions in a growing market segment. We, as a management team, are humbled by everyone's commitment to this common goal. We look forward to the installation of these systems at Pacific Ethanol's industrial plant later this year and to building upon this success and expanding our technology and product portfolio in the near future."

About Pacific Ethanol

Pacific Ethanol, Inc. (NASDAQ: PEIX) is the leading producer and marketer of low-carbon renewable fuels in the Western United States. With the addition of four Midwestern ethanol plants in July 2015, Pacific Ethanol more than doubled the scale of its operations, entered new markets, and expanded its mission to advance its position as an industry leader in the production and marketing of low carbon renewable fuels. Pacific Ethanol owns and operates eight ethanol production facilities, four in the Western states of California, Oregon and Idaho, and four in the Midwestern states of Illinois and Nebraska. The plants have a combined production capacity of 515 million gallons per year, produce over one million tons per year of ethanol co-products such as wet and dry distillers grains, wet and dry corn gluten feed, condensed distillers solubles, corn gluten meal, corn germ, corn oil, distillers yeast and CO2. Pacific Ethanol markets and distributes ethanol and co-products domestically and internationally. Pacific Ethanol's subsidiary, Kinergy Marketing LLC, markets all ethanol for Pacific Ethanol's plants as well as for third parties, with over 800 million gallons of ethanol marketed annually based on historical volumes. Pacific Ethanol's subsidiary, Pacific Ag. Products LLC, markets wet and dry distillers grains. For more information, please visitwww.pacificethanol.com.

About Ener-Core

Irvine, California-based Ener-Core, Inc. (OTCQB: ENCR) designs, manufactures and has commercially deployed unique systems that generate base load, clean power from polluting waste gases including methane. Ener-Core's patented Power Oxidizer turns one of the most potent pollution sources into a profitable, "always on" source of clean energy. Ener-Core's technology offers an alternative to the flaring (burning) of gaseous pollution while generating operating efficiencies and reducing the costs of compliance with environmental regulations. Ener-Core offers the 250kW Ener-Core EC250 and the larger, 2 MW Ener-Core Powerstation KG2-3GEF/PO. For more information, please visit www.ener-core.com.

Cautionary Statement Regarding Forward-Looking Statements

Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Information provided by Ener-Core, Inc., such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The information contained in this release is as of the date of this press release. Except as otherwise expressly referenced herein or required by law, Ener-Core assumes no obligation to update forward-looking statements.

Media and Investor Relations:
MZ Group 
Chris Tyson 
Managing Director - MZ North America
Direct: 949-491-8235
[e-mail]
www.mzgroup.us

MZ Group

http://www.mzgroup.us/



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[Pasta]

Another good volume day. (At least for this stock it's good volume) Perhaps something is coming.

[Pasta]

Better volume today. Stay positive.

[smooch]

Agreed, wonder why

[lakingsphan0427]

Ihub slow today they haven't put the news yet..

About time but the pps is going the wrong way..

[lakingsphan0427]

Ener-Core Receives $1.1 Million From the Dresser-Rand Business

Substantial Progress Achieved on Integration Testing of 2 MW Power Oxidizer System With KG2 Gas Turbine

IRVINE, CA--(Marketwired - September 26, 2016) - Ener-Core, Inc. (OTCQB: ENCR), a developer of innovative gas conversion technologies for global commercial and industrial facilities, and the Dresser-Rand business, part of Siemens Power and Gas Division, have achieved substantial integration of Ener-Core's 2 megawatt Power Oxidizer with the Dresser-Rand KG2 gas turbine. As a result, the Dresser-Rand business has released its previously agreed $1.1 million escrow payment to Ener-Core.

The integrated product resulting from this effort will enable the Dresser-Rand business, as a licensor of Ener-Core's technology, to provide customers from a wide range of industries with a first-of-kind solution that can reduce air pollution by enabling industrial sites to convert their low-quality waste gases directly into useful clean power, heat and steam.

The Ener-Core Power Oxidizer replaces traditional combustion chambers within gas turbines, and represents a significant new component within the integrated KG2 gas turbine. The Dresser-Rand business and Ener-Core engineering teams have worked collaboratively on this effort for 18 months and are nearing completion of an extensive testing regime that covers component-specific testing as well as a full integration test.

The Power Oxidizer and all other system components from the KG2 gas turbine have surpassed some of the most challenging integration hurdles. The test system has performed very close to the required system specifications; the engineering teams from both companies have identified a few additional integration tasks that are expected to further improve the overall system performance. These remaining integration tasks are typical within the final testing phase of this sort of technology integration project and the teams expect to implement these remaining improvements before the end of the calendar year.

As a result of this significant progress, the Dresser-Rand business has approved the release of $1.1 million from a joint escrow account to Ener-Core, for the completion of the integration tasks and commissioning of two units later this year at the site of the Dresser-Rand business' first customer for this technology and integrated product offering.

Paulo Ruiz, Vice President of Commercialization for the Dresser-Rand business, said: "We congratulate our joint engineering teams for the progress made over the last 18 months and are confident that they will implement the system advancements allowing the Dresser-Rand business the ability to bring this innovative technology to market for its clients. We are also energized by the high level of commercial momentum that our global sales teams have achieved with this new product offering, and look forward to begin securing additional sales orders for this innovative solution across a wide range of industries."

Alain Castro, CEO of Ener-Core, commented: "We would like to take this opportunity to applaud our engineering teams as well as the Dresser-Rand business' engineering teams in the U.S. and Europe. The scale up of Ener-Core's technology from 250kW to a 2 MW capacity has gone well, and is a testament to the quality of engineering talent on our team. The integration of our Power Oxidizer technology into a complex engineering product such as a gas turbine has been equally crucial, and is the result of the effective teamwork of a wide range of engineers from both of our companies working as one team across multiple countries over the last 18 months. We look forward to the official Full-Scale Acceptance Test completion expected in October after minor integration tasks to improve the overall performance of the integrated system."

About Ener-Core
Irvine, California-based Ener-Core, Inc. (OTCQB: ENCR) designs, manufactures and has commercially deployed unique systems that generate base load, clean power from polluting waste gases including methane. Ener-Core's patented Power Oxidizer turns one of the most potent pollution sources into a profitable, "always on" source of clean energy. Ener-Core's technology offers an alternative to the flaring (burning) of gaseous pollution while generating operating efficiencies and reducing the costs of compliance with environmental regulations. Ener-Core offers the 250kW Ener-Core EC250 and the larger, 2MW Ener-Core Powerstation KG2-3GEF/PO. For more information, please visit www.ener-core.com.

About the Dresser-Rand Business
The Dresser-Rand business, part of Siemens Power and Gas (PG), is a leading supplier of mission-critical, high-speed rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. As part of the global Siemens family, the Dresser-Rand business offers an equipment portfolio that includes turbo and reciprocating compressors; steam turbines; industrial and aero-derivative gas turbines; high-speed engines; and modular power substations. With the world's largest installed base, one of the world's largest technical support and service center networks, and a presence in more than 150 countries worldwide, the Dresser-Rand business delivers local solutions and services on a global scale. For more information, please visit www.dresser-rand.com.

Cautionary Statement Regarding Forward-Looking Statements
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Information provided by Ener-Core, Inc., such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The information contained in this release is as of the date of this press release. Except as otherwise expressly referenced herein or required by law, Ener-Core assumes no obligation to update forward-looking statements.

Contact Information

Media and Investor Relations:
MZ Group
Chris Tyson
Managing Director - MZ North America
Direct: 949-491-8235
[e-mail]
www.mzgroup.us

[smooch]

From Marketwired- Enercore receives 1.1 million from Dresser Rand.

[smooch]

I guess they woke up, check out today's news! Finally!

[Pasta]

They said profitability by 2017. I think more depends on the DR sales team than the encr sales team.

[lakingsphan0427]

I am glad that this is in my kids' account else its going to drive crazy..
Someone need to poke ENCR..

[smooch]

Shall ask. He has always told me vaccines are not a huge profit maker in most cases as most of the time, they are huge lot government purchases and the government does not pay much more than cost.
Right now he is working in the anti counterfeiting/serialization area and interfaces with the FDA and congress through GS1 Americas and global. Believe it or not, counterfeit drugs make more money for China than the sum of all of their exported goods.

[lakingsphan0427]

Does your hubby still work for GSK? I know one of GSK's top selling vaccine is Engerix-B for hepatitis B maybe you can ask what's his opinion or if he heard about Hepislav-B before a hepatitis vaccine by DVAX the other stock I own.. DVAX's Hepislav-B works better than Engerix-B and about to get approved by the FDA I think by December 15.. If FDA gives the go-ahead to DVAX this could be a treat to GSK's Engerix-B $194M revenue.. I wonder what's the chances of GSK buying out DVAX.. thx smooch

[smooch]

The waiting is the hard part.
It is also hard to hold my commentary back on the ARTH board with the pharma knowledge I have through my husband and his 35 years with GSK. They however do not listen and prefer to speculate amongst themselves on that board, tough group.

[lakingsphan0427]

Right!? I too got tired of waiting on ENCR that is why I reduced my holdings a couple of months ago but did not touch my kids shares tho..
My ARTH however is a different story.. Feeling the excitement as we get closer to the announcement..

[smooch]

Lake, would it not be amusing if both of these stocks came out with their test results on the 6th? Right now, tired of patience.

[Pasta]

He was just very confident that all the new types of fuel to drive turbines was just getting started, wind, oxidation technology etc.

[smooch]

What else?

[Pasta]

Talked to an employee from Siemens, he said hold on to the stock.

[smooch]

Nothing but crickets for weeks. Testing should be done?

[lakingsphan0427]

Management need to do something..This is almost as dead as fck..

[lakingsphan0427]

Impressive resume on our new guy hope he can help kick start ENCR..
Actually that's what I did when ARTH came back down at .35 from the mid .40s.. I moved some my $ from ENCR to ARTH it help me recovered some of my paper loss on here.. If you plan on moving some gotta do it this week or next week before they announce their test results..

[smooch]

I was actually considering moving some of my money from encr to Arth since encr seemed to be quite asleep; however, given their new board addition and also changing their game to licensing rather than manufacture, encr might not be sleeping for so long now. Anxiously waiting for both to come out with their latest test results.

[lakingsphan0427]

Awesome job smooch hope you at least got in the .20s...Own 40k shares between me and my kids..So far I am seeing some of my buys are up 313% and 287%.. Smart move is to sell now but I am not because it is now coming into fruition plus I am sticking with my plan..