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kex0414

05/11/14 3:55 PM

#18407 RE: HatchetJack #18406

I’m expecting AFT to license Bosch (or another manufacturer) to make the unit and get royalties per unit. That way AFT doesn’t have to do anything. As a guess I would say an injector system is about $1,500 to $2,000 Retail. At 70% wholesale and 10% of that as a royalty, that would be 7% of retail, or about $125 per unit for doing nothing. Caveat; my numbers are just a WAG. But without any informatiion, I guess everyone's is.

A second alternative would be to become a subsidiary of XYZ Company, and the entire manufacturing process would be at an XYZ plant eliminating shipping and additional management personnel.

A third alternative, and I believe a lot less plausible, they will wholesale the units as supplier to the engine manufacturer. This would involve AFT acquiring manufacturing space, equipment and labor. Obviously the current employees would not be involved in production except to manage QC, and the current space would be inadequate.