Hey Mikey TOVC.OB.....Current News
January 27, 2010
On January 27, 2010, Torvec filed a Current Report (Form 8-K) with the SEC to announce that the company has settled its litigation with Ice Engineering LLC concerning certain payments owed to Torvec in connection with the assignment of the ice technology license to Ice Engineering. As a result of the settlement, Torvec will be paid a total of $1,100,000 by February 26, 2010.
Our board of directors believes this settlement is in the best interests of Torvec since it enables the company to obtain needed dollars now, avoid protracted litigation and, in all probability based upon our projected budgets for 2010, enable us to eliminate the “going concern” language from our financial statements we will file for calendar year 2010.
We believe this influx of dollars, coupled with the additional $103,000 we received yeaterday as a result of refundable New York State research and development tax credits and federal government dollars jointly made available to us and Rochester Institute of Technology under the “SEAL” program, will enable us to complete the following programs resulting in the commercialization of our IsoTorque technology:
1. As stated in our January 8, 2010 CEO Update, we shipped an IsoTorque differential to General Motors to enable GM to evaluate the IsoTorque in the Cadillac CTS (and perhaps for a new vehicle platform under consideration). While we anticipate GM’s evaluation will take place over the next month to six weeks, we will simultaneously move forward with building an IsoTorque for shipment and evaluation by GM for its fleet of front-wheel drive vehicles;
2. We also now will be able to complete our work in developing a design-specific IsoTorque differential for shipment and evaluation by Hyundai for its Genesis Coupe;
3. As a direct result of our successful racing efforts and contacts developed through such efforts, we intend to use a portion of the monies described above to exploit the differential aftermarket in 2010 by marketing, manufacturing and distributing IsoTorque differentials for Corvette C-5 and C-6 cars as well as for the SMS 620 Camaro sports cars (refer to the Camaro initiative released to the media by SMS Supercars of Corona, Calif.). Please note---- up to 380,000 C-5 and C-6 Corvettes have been produced since 1997 and up to 80,000 current-generation Camaros were produced in 2009.
4. These funds will enable us to complete IsoTorque units for shipment and evaluation by Ford Motor Company for its fleet of front-wheel drive vehicles, including the very popular Ford Taurus and the Ford Edge family of vehicles as well as for shipment and evaluation by Tesla, a leading-edge electric car manufacturer, for its Roadster.
These monies will also assist us move forward with the Torvec-SEAL program adapting our constant velocity joint technology for use in the worldwide mining industry. Please recall that this program has been specifically commissioned by a significant West Virginia mining corporation----Eastern Mining & Industrial Supply company of Chapmanville, West Virginia.
And, obviously, these monies, coupled with the anticipated success of the programs detailed above, will enable us to continue all our commercializing efforts with all of our other technologies-----including the FTV-Air Force program which we anticipate will shift into high gear after we ship the FTV, as modified in accordance with Air Force specific requests, back to Panama City in early February.
We will be discussing all of these significant matters at our upcoming shareholders meeting this Thursday night, beginning at 7:00 p.m. at Casa Larga Vineyards.
Over the past year, our stock has taken quite a beating (affecting myself, my family and the rest of the board of directors in excess of millions of dollars) due to the malaise currently affecting the auto industry, the economy in general and other circumstances largely beyond our control. And, in fact, we are not where we expected to be since a number of projects did not develop the way we thought they would. However, our losses in Torvec stock are unrealized since we held on to our shares. We did not sell our Torvec shares since we are confident our stock price will rebound in 2010 as the result of success with the projects discussed above as well as success with other overtures, such as the FTV-Air Force Advanced Combat Firefighting Vehicle program.
We look forward to seeing all of you at our shareholders meeting tomorrow night.
Sincerely,
James Gleasman
CEO
