Charlestowne Premium Beverages Inc. (FPWM)

[dfh]

The new 10Q filing is out ...
http://www.sec.gov/Archives/edgar/data/1066978/000114420406043089/v055257_10qsb.htm


Here's some noteworthy items ...

Power Battery Co. (“Power Battery”), a privately held battery manufacturer, has requested that we provide it with our current collectors to test in a VRLA battery. We intend to do so. We may need to

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design and machine a separate double panel casting mold similar to the one previously provided to us by Wirtz to be able to provide Power Battery with current collectors that are compatible with its battery manufacturing equipment. Power Battery has three major corporate locations around the world. Its Corporate headquarters, R&D, manufacturing and USA distribution center are located in Paterson, New Jersey and that facility covers the U.S.A., Latin America and the Pacific Rim. Its high-tech automated manufacturing center in Iberville, Quebec covers the Canadian market and a third location in Romsey, England covers the European, Middle East and African markets. Power Battery has sales offices in Milan, Italy and Hong Kong with major distributors throughout South America, Europe, Africa and Asia.


We intend to supply the U.S. Army Tank Automotive Research, Development and Engineering Center, (“TARDEC”) a prototype NATO 6T Size Lead battery manufactured with our current collectors. Part of the Army Materiel Command’s Research Development and Engineering Command, TARDEC the nation’s laboratory for advanced military ground systems and automotive technology. Its mission is to research, develop, engineer, leverage, and integrate advanced technology into ground systems and support equipment. It develops and maintains ground vehicles for all U.S. Armed Forces, numerous federal agencies, and more than 60 foreign countries. The NATO 6T Size Lead Battery is used in various tanks, trucks, and other military vehicles. We have discussed with the staff and power team leaders of TARDEQ our providing it with a prototype NATO 6T battery. TARDEC has provided us with performance specifications for the NATO 6T automotive valve regulated lead acid storage battery. TARDEC has advised us that, if we provide it with a NATO 6T battery, it will test and evaluate our prototype for possible use by the U.S. Army. We are in the process of designing and engineering the current collectors we will need to manufacture in order to be able to make a NATO 6T automotive valve regulated lead acid storage battery that meets the performance specifications. In order to manufacture suitable current collectors for use in a prototype NATO 6T battery, we must design and machine a separate double panel casting mold similar to the one previously provide to us by Wirtz to cast a lead top frame with lug and two side frames and a bottom frame on uncoated RVC foam plates. We estimate that the cost of designing and machining such a mold will be approximately $ 4,000.


Axion Power International Inc. (Axion) has requested that we provide it with our current collectors so that it may manufacture and test prototype batteries that feature our current collectors in combination with Axion’s proprietary e3 Supercell technology. Axion has developed patented e3 Supercell technology, which it describes as a multi-celled asymmetrically supercapacitive lead-acid-carbon hybrid battery. We have designed and built a double panel casting mold that will enable us to manufacture and test compatibility with Axion's manufacturing capabilities and in conjunction with Axion’s e3 Supercell Supercell technology.


We are in the process of manufacturing current collectors that will be compatible with the battery manufacturing equipment at a battery manufacturing plant. We believe that by the end of November 2006 we will have manufactured a sufficient number of our current collectors to enable us to build at least six prototype batteries at the battery manufacturing plant. We intend to manufacture these prototype batteries in December of 2006. Once these prototypes have been manufactured and we have tested them, assuming they meet our expectations, we intend to provide a prototype battery to Kung Long, a prototype battery to Toyota Tsusho Corporation, and to provide the remaining prototypes to other battery manufacturers and original equipment manufacturers.