XNRGI Inc fka NPWZ

[ShortonCash]

Have not heard much of any thing since the report...seems to gone into silent Falcon mode.... preferred share conversion rate will be interesting to see.


http://consiliumglobalresearch.com/consilium_PDFs/NPWZ_Initiation_9-10-2014.pdf

$165,000 in license to the Department of Defense, and sales from the new battery company...what do you want from a penny stock.....the point is its and investment in the future... plus a fairly large tax loss carry forward.. if some firm wanted to acquire them...more than double the current market cap...if you read the report its fairly clear the time frame to triple is two years...if you put a value on the IP is much higher with a some fairly nice number to negotiate with a take over or merging firm. Show me a better penny stock...this is moving up...

Valuation Based on Potential Revenues
If one looks at the above table, the median value multiple for enterprise value to revenues is 4.5. A 3x
multiple in general is not unusual for a risk oriented situation such as Neah Power where scalability
potential is extremely high. With projected revenues for Neah Power of $14.5 million in two years’ time, a
3x multiple would produce a market valuation of $50.7 million

http://consiliumglobalresearch.com/consilium_PDFs/NPWZ_Initiation_9-10-2014.pdf

Tax Loss Carryforwards
Neah Power has over $50 million in tax loss carry-forwards. Given the complicated rules governing tax
loss-carry-forwards and the circumstances by which those accumulated losses can be applied, we would
nonetheless suggest that there is meaningful value in the company’s NOLs should a merger or
acquisition with another company take place. Certainly, if the company’s commercial initiatives gain
traction, these NOLs will be valuable in protecting the company’s cash generation for some time.

Intellectual Property – 2013 Acquisition of Tekion Assets
Over the years the company has amassed a substantial stable of 14 patents, and various pending
patents and patent applications.
In late 2011, an independent, professional IP evaluation company, Dolcera Corp., assessed Neah
Power’s patent portfolio and determined a valuation range of approximately $800 million to $1.6 billion.
This valuation was based on the projected growth rates in various markets, the ability of the company to
garner market share, and the types of royalty arrangements that can be reasonably expected. All this is
contingent upon the uniqueness of the company’s proprietary technology. The company’s patents are
slated to expire in the years 2020 - 2030.
The acquisition of Tekion’s assets in November, 2013 brought to Neah Power several of the above
mentioned patents and the capability to build upon its silicon and formic acid technologies. It is upon
these new and innovative technologies that the promise of long-term growth has been based. It stands to
reason that the value of the assets from the Tekion acquisition reinforces the overall valuation of the
company.

Proprietary IP
One of the drawbacks of the fuel cell industry to date is that the technology has been relatively
unchanged for decades. Neah Power has developed unique designs and processes that substantially
enhance fuel cell capabilities. One such design is the use of silicon wafer technology in combination with
methanol as a fuel that generates more power and durability than batteries and other fuel cells of similar
size. A second area of advantage is the recent development and application of formic acid in a unique
catalyst environment which produces hydrogen as a by-product. This new process, for which the
company has two patents pending, not only can be used to produce electricity, but can be used as an onsite
hydrogen power source for other variant applications. This new technology should percolate the
interest of most manufacturers of powering units, including the auto manufacturers.
Importantly, Neah’s intellectual property has been developed in-house or realized through acquisition.
Other major fuel cell companies such as Plug Power (PLUG – Nasdaq: $5.47) and Ballard (BLDP –
Nasdaq: $3.56) rely greatly on licensed technology, thereby limiting some of their commercial flexibility.
Three Avenues for Commercialization
The shift from research entity to commercial status might be happening faster than most people might
realize.
The Company has three immediate areas of commercial focus. The company has entered into a
commercial arrangement with the Defense Research and Development Organization (DRDO) of India.
Shipments have already been made and the scale of this initial contract could reach $14 million. India is
looking at the PowerChip™ as a means of providing power to individual soldiers.
A second product area, aimed primarily for the retail markets, uses the company’s formic acid technology
as a variation on the PEM (Proton Exchange Membrane) process for its suite of battery recharging
products serving the portable electronic markets (BuzzBar™ Suite). The nature of the company’s design
and technology capabilities, however, gives it great flexibility in developing all manner of device
applications depending on the need and scope of the customer.
The Company has entered into memorandums of understanding (MOUs) to deploy the formic acid
technology into drones and other off-grid power solutions. The modular design would provide a lot of
flexibility to adapt the technology to these various applications which serve a variety of markets.