Following are my notes on the January 29, 2009 Torvec Shareholders Meeting (please note that some of this is my interpretation of what I heard and thus reasoned out on my own, so no exact quotations) (I feel strongly that the Gleasman's are doing an excellent job and I was very impressed with Andy's progress and very important role in the company.):
• Torvec received a proposal in December from a large automotive manufacturer, not Ford, to give Torvec $10,000 for each FTV that was sold. Jim said that if just 5,000 FTV’s were sold it would equate to $50,000,000 going to Torvec’s bottom line. This would be a license agreement. The person responsible for this proposal was recently promoted to be the V.P. of International Trade, they are still spearheading this contract. This would give Torvec the ability to list on NASDAQ, and start paying dividends of maybe $1-$100? There are 8,000,000 pickups/4 wheel drives sold in the world per year. If just 10% of this market switched to FTV’s you would have 800,000 X $10,000 = $8,000,000,000 (8 Billion Dollars!) Let’s be even more reserved and say just 1% of market at first, 80,000 units = $800,000,000. There are only about 32 million shares of Torvec stock outstanding, even if this went up to 50 million this would equate to $1/share dividend for a sale of 5,000 FTV’s; $16/share dividend for a sale of 80,000 units; or $160/share dividend for a sale of 800,000 units! Jim said what do you think the share price would do if Torvec were paying out dividends of from $1 - $100? It used to be if a company had a revenue stream of say $1 per share the stock would trade on a multiple of roughly 10+X with greater multiples for technology stocks, and this is just one of many components of Torvec!
• Air Force is testing their FTV in Florida now along with a group of Torvec’s engineers! They will be giving requests/recommendations towards the second generation FTV and a Torvec/Air Force Contract, high demand is expected.
• GM is working toward buying IsoTorques, with an initial purchase of half a million units for rear wheel drives and they also want them for maybe six Front Wheel Drive Models. The big selling points are that the IsoTorques are less expensive than limited slip differentials which they currently have and they are safer: they would eliminate Torque Steer; this is what all limited slip differentials are prone to. Shown clearly when burning out and holding the steering wheel straight, a limited slip differential will veer off right or left, while the IsoTorque equipped vehicle will hold straight, even when not touching the wheel (hands in the air!).
• As of six months ago, one of the world’s largest heavy truck manufacturer’s is interested in a new inner axel differential, basically a large IsoTorque for the inner axel of a truck, class 8, or a Freight delivery vehicle, like FedEx or UPS. They are in a licensing discussion with Torvec now, along with a military and special vehicle company.
• Nissan has a standing order to purchase 1,000 – 2,000 IsoTorques from Torvec, but Torvec cannot afford to spend the $300,000 to manufacture this size order right now. Torvec is talking with others in order to get larger orders that would be more economical.
• Two new trademarks: The Torvec shield and on the IsoTorque.
• Eaton/EPA hydraulic launch assist that they have spend 3-5 years on is inefficient and way to overpriced, payback would be in 20 years per vehicle when the vehicle is only owned for 10 years. At an extra $75,000 per vehicle this is going nowhere! Torvec has the technology that will work at the right price! Diesel with steady state IVT and virtually no emissions.
• Hodges Transport Proposal as part of Office of Naval Research interest in Torvec technology, IVT or IsoTorque?
• Andrew and Asher went to Washington D.C. on Monday. School bus program not dead. Confidential, could not discuss what the meeting was about.
