Plan for Future Operations
In 2005, we contracted with engineers to begin our hydrogen fuel cell division. Through 2006, our subsidiary Hydra Fuel Cell, Inc. (“Hydra”) continued the development and testing of its HydraStax® hydrogen electric generators. Seven patent applications have been filed covering some of the innovations incorporated in the HydraStax® and we intend to file additional patent applications.
Our Hydra Fuel Cell subsidiary completed the initial development stage of the HydraStax® unit and testing for certification is currently underway. We believe that the HydraStax® unit's cost per kilowatt hour will be significantly below that of our competitors, giving us a competitive edge. Thus, upon certification we intend to aggressively market these units. We are actively pursuing financing to begin manufacturing and distribution.
We formed two new subsidiaries in 2007 to pursue the development of clean energy sources. We formed American Wind Power Corporation that is negotiating the acquisition of manufacturing and intellectual property for residential wind turbines that spin in a horizontal plane. Additionally, we formed American Hydrogen Corporation to develop and commercialize a technology to formulate hydrogen that we hope will change the economics of producing hydrogen sufficiently to enable the hydrogen economy.
All three of the Company’s subsidiaries had significant events during the past year.
Our Hydra Fuel Cell subsidiary completed the initial development stage of the HydraStax® unit and testing for certification is currently underway. We believe that the HydraStax® unit's cost per kWh will be significantly below that of its competitors, giving them a competitive edge as a replacement for residential grid power. Thus, upon certification, Hydra intends to aggressively market these units and the Company is actively pursuing financing to begin manufacturing and distribution. Hydra installed two of its HydraStax® fuel cells in residences, one in Texas in October 2007 and one in Florida in December 2007, as “Beta Test demonstration units”. These are milestones for Hydra and for the fuel cell industry. Hydra continues to vigorously defend itself from claims of patent infringement brought by a third party in 2006. Hydra’s fuel cell is original and Hydra categorically denies that it infringes on any patents.
American Wind Power Corporation, which has had no operations to-date, is in the process of acquiring two companies with vertical axis wind turbine technologies. The Company has engaged NW Financial of Jersey City, NJ to arrange the financing for these acquisitions.
American Hydrogen Corporation (AHC) was formed to develop and commercialize a technology to formulate hydrogen that we believe will change the economics of producing hydrogen sufficiently to enable the hydrogen economy. In August 0f 2007, American Hydrogen Corporation was granted a worldwide exclusive license for patent pending ammonia-to-hydrogen catalytic electrolyzer technology (ACE) by Ohio University that will be the basis of operations for AHC. The first ACE units will be matched to the fuel cells made by Hydra. AHC has entered into a Sponsored Research Agreement with Ohio University to develop large commercial electrolyzer technology and to develop an ammonia-to-hydrogen fueling system for vehicles.
The Company continues to review acquisition opportunities that would enhance its fuel cell offerings, expand its offerings in alternative energy production or represent opportunities in homeland security or national defense.
We have had no revenue since beginning our Hydra subsidiary. Although we expect revenues from our HydraStax™ unit during 2008, we do not expect cash flows from distribution of the unit to be self-funding during 2008. We estimate that our Hydra Fuel Cell subsidiary will require approximately $2 million to produce and sell HydraStax® units to cash flow self-sufficiency. There is no guarantee that management will be successful in obtaining these funds.
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