CHANGING the world one car at a time
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Executive Summary

United Renewable Power & Electric, Inc. (URP&E) is a Kansas-based startup that has developed and produced a proprietary AC alternator that will transform how energy is harvested and distributed in the $1.3 trillion U.S. electric power market.  Our product converts renewable energy resources (I.E. solar, wind) into useable 60 cycle per second alternating electrical current at a distinct cost advantage over current devices and is easier to install.   Our technology has patents pending, is unique to the industry and is validated with a working prototype.

The company projects first year sales of $4.6 million growing to over $14.9 million by year three.  Margins will exceed 46% and total $6.9 million by year three.

With a proven management team in place, we seek a total of $5,175,000 in phased funding over a three year period. Projected R.O.I. to initial investors exceeding 67% in year one.  Funding will enable completed product design, production facility build out; and completion of key management team.

PRODUCT

Our proprietary product is the MAGNETIC WAVEFRONT ALTERNATOR (MWA).  A very low-drag AC alternator, the MWA has an output of 60 cycles per second alternating current electricity; the same current used in virtually all homes in the United States.

This alternator can have an indefinitely sustained output of ten kilowatts of energy at a 220 volt AC ‘push’.  It can be separated into two 110-volt AC circuits, or left in a combined state to operate 220-volt AC appliances.  The input source can be from photovoltaic cells (solar panels) or wind turbines (DC or AC) and it can also be operated from our current commercial power grid.  In summary, any passive or active source of any type of electricity can operate this device; enabling a superior input/output ratio than any device previously created.

Current renewable systems are very expensive, retailing at sixty thousand US dollars on average, and some even much higher in price.  In contrast, the MWA will be produced at a cost of $900, while still achieving at least the same output as current market participants. The revenue model is based on a retail price point of $6,999.00 per unit.  This will include a photovoltaic panel and absorptive glass matt batteries.  There will be another variant of this device at that same price point with a wind turbine.  Another commercially available model should have only the alternator with capacitors and no passive input power source.  This last system will be for reduction of the monthly utility bill and power conditioning only.  It will not be a stand-alone electricity generating system; its price point will be $2,999.00.

KEY DIFFERENTIATORS

The uniqueness of this product lies in its overall cost reduction, its positive environmental impact, and its novelty in the market; these factors make the MWA a very viable system.  This is a product that all consumers can immediately and naturally gravitate towards in any application.  This system is expandable, down scalable and versatile.

For the first time ever, ‘site generated’ AC electricity will cost less per kilowatt-hour than purchasing the same amount of current from a commercial supplier.

There are no intellectual property concerns according to our patent attorney.  We have conducted an international patent search and have been approved for two separate patent submissions.

THE MARKET

The market for this type of device is very broad; it includes any consumer of AC electricity. The entry point of this product into the market is through the renewable energy industry that is expected to expand to over $35 billion by year 2013.  The key competitors in this industry are companies like SOLAREX and NORTHWEST POWER COMPANY.  Our sustainable competitive advantage lies in the nature of our product; it is more efficient than anything available.  It has immediate cost advantages over all current market participants, as well as greater performance capabilities. 

AC alternators, as used in combustion engines right now, are terribly inefficient, wasting much of their input in heat through friction.  The MWA uses what we are referring to as a ‘frictionless bearing’, eliminating all of that waste.  To hit a golf ball to the moon from your back yard would require an enormous amount of energy, mainly due to Earth’s gravitational force.  However, to hit a golf ball to the moon from the wing of a space station, would take almost no energy at all.  This is because in the vacuum of space, once a force is set in motion, it will continue until something stops it, and without the presence of the Earth’s gravity there aren’t forces to stop it.  This is the basis for the ‘frictionless bearing’. The rotor is suspended between magnets, virtually eliminating Earth’s gravitational effect, and removing almost all points of contact allowing an exceptionally low drag coefficient.  

PRODUCT PROMOTION

Marketing channels (direct, indirect, etc.)

The marketing of this product will be via trade magazines, as well as press releases and articles distributed throughout the mainstream media.  Activists that have been lobbying for renewable energy sources over the past four decades will readily promote this system.  We will enact an aggressive publicity campaign outlining all of the benefits to consumer’s pocketbooks as well as the MWA’s positive impact on the environment.

This is a solution that has been a long time in the making.  The single reason behind the restriction of renewable energy in the American marketplace for so long is simple; cost efficiency.  There has been no previous system produced for creating electricity from renewable sources that has a smaller dollar-to-kilowatt-hour ratio than buying electricity from the commercial power grid suppliers.  This system will be the first with immediate cost benefit.

This will create an opening in an indirect channel to marketing via green party activists supporting our endeavor. Magazines like Mother Earth News and Popular Science will have a great interest in this new, cost effective, and simplified technology finally arriving on the market.

The most ‘pertinent to the consumer’ marketing strategy will be the long-term cost benefit over purchasing electricity from commercial suppliers.  This is a cleaner source, and one that can be managed by local utility companies.  Each consumer could pay a fixed fee to the local utility company and not be involved with the purchase or deployment of this technology (for existing power consumers).  ‘Hands free’ cost reduction in the monthly utility bill will be a strong selling point for the secondary market.  

Household Energy Producer

Cost of Energy Bill (no gas)

Break-even (consumer)

Commercial power grid

$150/month

N/A

MWA system

$7,000 initial investment

46 months

MWA (reduced power grid application)

$2,999 initial investment + $37.5/month for electricity

28 months

We will be actively pursuing strategic alliances with companies that stand to benefit from the improvements in efficiency that the MWA allows.  Companies like General Motors, or Toyota would love to have alternators that can double their MPG.  Companies like Zenn Cars would be able to sell more cars by substantially extending the range and longevity of their battery life. 

FINANCIAL PROJECTIONS

3-year financial projection data, including revenues, expenses, gross profits, net income, assets and equities.

There aren’t any historical sales at this point as the system is still in the prototyping and development stage. At this point, large amounts of venture capital are not necessary, however the company is seeking smaller amounts of risk capital and seed capital; hence the break-even timeline is a short one.

A facility has been established for production, albeit on a somewhat limited scale.  There is direct access to interstate 70, making for viable distribution access.  With a relatively small investment, we would have production capabilities of up to 8000 units in the first year. 

First year projections are over $4.6 million in sales, with gross margins over 45%.  This comes from sales of 5,190 units in the first year, growing to 15,600 units at the end of year three.  Year three sales should exceed $14.9 million, and increasing the margin to over 46%.  For more detailed financial figures, please see separate spread sheets.

The three-year projections are as follows:

Our total capital requirements are for $5,138,000 in three phases:  Product development completion and start-up - $638,000; Production facility build - $2,500,000; Manufacturing and marketing - $2,000,000

First year – Start up.  Start up cash injection of $638 thousand. This is for the completion of two patents with the United States patent and trademark office pertaining to the Magnetic Wavefront Alternator technology, to include the magnetic separation bearing. It will also go towards research and development costs with machining the product, a mass marketing campaign, paying salaries, and getting the business off the ground. 

Second year – Production.  Projected cash injection of $2.5 million will be necessary at this point. Expanded production capabilities will be necessary.  Data gathered in the first year will be used to determine the production line for the availability of commercial units.  Initial sales will come from current and new entrants in the renewable energy market.  These consumers will provide data to be used pertaining to widespread implementation.  All earnings will be retained and diverted directly back into development for third year market penetration.

Third year – Market penetration.  A cash injection of $2 million will be used for marketing expenses.  This phase will include the recovery of the initial investment and a push to start sales in the national market. Contracts will be secured with local utility companies and national manufacturing firms to license and produce the Magnetic Wavefront Alternators on an impactful scale.  Conservative projected initial sales of 50,000 units will allow for a revenue stream of $150 million.  

MANAGEMENT EXPERIENCE

Summary and experience of the management team and board of advisors.

Mr. Jack D Talbert, B.A. is currently the acting CEO of United Renewable Power and Electric, Inc.  He is the driving force of the creation of this new technology.  His aptitude is a useful tool in the creation of new devices, which have real world applications.  The Magnetic Wavefront Alternator design is his brainchild, born to him more than twenty years ago.  The research conducted and compiled on this project have been largely attributable to his drive to have this particular venture succeed.  Jack has managed a small business in the state of Kansas since 1994. So far, Jack has invested over $40,000 of his own money into making this dream come together.

Fred White, Sr. has been in manufacturing in the automobile industry for over 41 years. He retired as the plant manager of the Fairfax plant in Kansas City for General Motors.

Fred White, Jr. has several years of experience, also in production and for a large automobile manufacturer. His experience and leadership will be of great benefit to this project.

Other key management members have been recruited and selected and will join the company pending funding procurement.

EXIT STRATEGY

How will the investors realize a significant return on their investment?

Initial exit strategies include one year to three year to indefinite ownership in this venture.  The $638,000 initial investment sought after will allow for 38% ownership in United Renewable Power and Energy.  At the end of each fiscal year, liquidation of ownership would be possible through distribution of earnings.

Timetables on investment and return will be established on an individual basis depending on timing and investment allotments.

CAPITAL NEEDS

Who currently owns the stock of the company and how much?

We currently have received no investment money, and we are privately owned.  This venture, to date, has been funded by our own out-of-pocket budget allowances totaling to date somewhere north of $40,000.  Stock totaling 100,000 shares are privately held by Jack D Talbert solely.