Replies to post #1605 on Fortitude Group, Inc. (FRTD)

[willinvest]

I believe that the customer buys for 7500 and then shares energy income with IHDR. Thats why off grid sales are 30,000 apiece

[AliAngel]

blockman, In most cases Ihdr will retain ownership of the ECV and be in a revnue sharing basis with the electrical production profit of the machine. This is to include all of the energy and green credits also. In some off grid locations as in oil fields and parts of the world where there exists no grid they will sell the ECV at price that does generate and upfront profit. The initial costs will be about $7500.00 to produce and in mass that will probably go down. The sale price is listed in a previous mesage about greater sooner sale of in the 30,000. i hope this will help you with your eps questions
Dave

[bucfan33617]

Blockman you and Cabelaman have it a little mixed up. First IHDR does not plan in general to sell units. They have a deal in Ghana, which they consider off grid, where they will sell units at 30k each. The cost to manufacture in USA is 7500$ estimated. We don't know the cost in Italy,but suspect about the same. China will be lower. If a unit is biult in Italy for the European market IHDR gets a royalty of 2500$/unit. It is unclear what the cost is to IHDR if Italy produces for No Amer.market. As to the 19k for No amer market that is gross revenue/year per unit. Each unit costs 7500$ and must be partially replaced in 5-7 years. In Europe the gross revenue is 44k of which IHDR gets I believe 40% plus the 2500$ royalty. The dididend mentioned only applies to European profits at this time.

[Residuum1]

While it appears that

...the company's actual product centers on the sale of shares, IHDR makes it public revenue projections based largely on energy/tax credits for the EC V. See, for example, this statement:

"Under the joint venture agreement [with Cm2] IHDR shall receive approximately 35% of a projected $44,000 per year revenue per unit, plus approximately $2,500 per unit produced for European use. Domestically, IHDR has projected that unit revenue will range from $15,000 to $17,500 per 30 Kw EC unit, annually."

Source: http://biz.yahoo.com/pz/060621/101042.html

The company also states that it will sell the units in certain areas and/or certain situations:

"'While we know the grid placement of units will be appreciably larger revenue-wise, this is the first of many expected announcements of unit sales to non-grid countries and circumstances, where we simply would not have appreciated the normal revenue flows as we have in an electrical grid situation with renewable energy credits, tax credits and a stable grid environment,'' stated Craig A. Huffman, CEO and President of IHDR. '`Our business plan in North America and Europe will differ from those areas in the third world like this, where we can still get a very good return on our production cost, as we are doing here, while still providing consistent and reliable electricity to underdeveloped areas, and bring an appreciable revenue stream to the Company,'' Huffman continued."

Source: http://biz.yahoo.com/pz/060816/103919.html

Take all of that with a few grains of salt; the company has rarely if ever kept to its timelines or any other claims, through six versions of the EC.