Huber Heights

Location,City : United States / Huber Heights

Max Target : $ 200000

Equity on offer : 10 %

Min Target : $ 50000

Equity on offer : 10 %

Industry :
Manufacturing & Engineering

Investment Round :
Growth

Stage :
Proof of concept

Website : Visit

Summary

Our company, Power Products, LLC, has the background and knowledge base to develop and build the, Reaction Drive System (RDS), and show the practical benefits this new concept offers. With the introduction of the Reaction Drive System, this technology will become the first choice for the transportation industry to aid in the effort of increasing their bottom line, keeping jobs, and keeping the fleets running. We are focusing our first effort here in the Greater Metropolitan area of Dayton, Ohio, with full understanding that all of Ohio, the Nation, and the rest of the world are waiting for us to deliver this energy saving technology.

Company operation to this point has relied upon personal capital investment to bring the system through proof of concept and third-party verification. Our current goal with this Business Plan, is to secure financing to bring to market our patented technology, through introduction of systems for use in the transportation industry, that will have a profound effect on the cost to do business by reducing the use of diesel fuel.

Our commitment to create a new generation of class-8 tractors, with energy saving systems for the transportation industry, and build reliable and durable systems, is the primary focus for Power Products LLC. We are ready to begin supplying our technology to fleets, and private owner operators as soon as funding is available. The technology we offer is compatible to a wide range of options that bridge across all power disciplines, including electric, natural gas, ethanol, diesel, gas, and human power applications. Our primary emphasis of focus is toward internal combustion diesel vehicle applications. We recognize the value in conservation of fuel and the RDS can reduce energy usage in the transportation industry by 70%. Our mission is to improve fuel economy, reduce pollution, and improve safety of operation without sacrificing performance of the vehicle.

The Company is looking to conduct operations in our local area to meet an ever-growing level of demand, for fuel saving technology, within the transportation industry. The Company's product offering, the "Reaction Drive System", is initially targeted for class-8 heavy-duty tractors. This application will be immensely popular among commercial trucking companies, because of the significant fuel economy improvement, this system will provide through a process of energy reduction. This process reduces the energy needed, from the on-board power source used to propel operation of the tractor and trailer, the engine. This system lends itself readily to retrofit applications, and since we have strong contact relationships, and referral networks among commercial trucking companies, we expect to see rapid entry into this market.

We currently have the necessary technology and operations ability, to set up an Installation and Service Center, while local manufacturing will begin delivering components. Key equipment items needed in our service center, will be supplied from reliable equipment manufacturers selected and qualified by the company. Our personnel will supply the necessary services, and ensure equipment produced will be to our specifications. We will train personnel and supervise line production for efficiency and safety. Once components arrive, our team will oversee the installation of the RDS, test and certify the technology prior to releasing the vehicle back to the owner/s.

Power Products LLC strategy is to initially grow its business and expand to a national and eventually to international operations. The sequence for expansion activities and their priorities will depend on the amount of capital raised, its timing, and the availability of suitable target businesses and candidates that are ready to accept introduction of new energy saving technology. The first capital expenses will support the Reaction Drive System equipment development, facilities, personnel, and other working capital needs.

Notable Achievements

  • Reduced on highway operating time
  • Allows electric vehicles to have continuous operation
  • Significant reduction of energy required
  • Disruptive Innovation for fuel economy
  • Reduced loading effect against the drivetrain of the tractor

Pitch Video

The Business

Title of the system is the Reaction Drive System (RDS). Developing this system is from a patented technology. The discovery of this technology and its application to wheeled vehicles, results in a reduced input effort requirement. This technology does not change the energy needed to create, or, support motion for a vehicle or device. It supplies a system that through leverage, amplifies the input effort from the primary source, and develops motion, using less energy from the primary power source, the tractor’s engine.

In basic terms the RDS is a collection of technologies working together, that allows the weight of the vehicles, to become part of the source of drive force. The Reaction Drive System Business Plan explains the operation of the system and makes a clear statement of the viability of the system. This paper supplies a pathway to support the development of the systems.

Energy developed from the tractor, and weight of the trailer, aids the primary power source the engine, used to propel the joint tractor and trailer. In this aspect the weight of the trailer and its load, is no longer just weight to move. This technology is an innovative group of systems, that incorporates unique applications of amplifiers, leverage, and ratios, that combine to allow naturally occurring actions and reactions, to work together to build a positive force, to aid in the creation of motion. The goal of this technology, RDS, is to reduce the effort from the primary power source, the diesel engine, reducing fuel and pollution.

Third party validation was performed by, Belcan Engineering, of Cincinnati, Ohio. Testing and evaluation supplied certification of the concept using a ‘mechanical prototype’ assembly. That evaluation confirmed the concept was functional at a lower weight range. Follow on R&D and innovation have shown the system can function in any wheeled device or weight class of vehicle applications.

Our business model calls for establishment of Installation Centers and developing manufacturing partnerships. The Greater Metropolitan Dayton, Ohio area, will be our base of operation for developing our first ‘Reaction Drive System’ installation center. It is logical to begin in this area because of the proximity to our supply chain, skilled labor pool, the availability of investment capital in the area, as well as Management’s knowledge of and access to significant governmental grants and incentive programs and their approval processes. We have set up relationships with potential clients, have contacts in various government and non-government entities that are reviewing our request for support, and are currently exchanging technical and financial information with the entities.

The Company plans to execute its business model in phases. We expect to complete the setup of our first manufacturing line during the first three to four months following the first funding. With a first investment in the Reaction Drive System project at the level of $200,000 USD, will allow launching this technology into the Transportation industry starting in our local area and then expanding across Ohio. With continued growth we will grow to a National operation, and then expand to the rest of the world as funding allows.

The Market

The total available market for the heavy duty tractor market for United States is approximately 4,864,000 according to reports listed at government information sites for registered vehicles. The total available market for tractors overseas, are 9,728,000, that can use this technology. The joint total world market is 14,592,000 tractors.

The tractor and trailer industry are recession proof, since every item that moves, from any location, will at some time be on a tractor and trailer, for a part of the move. The tractor industry is a highly competitive market and most units sold, offer different advantages, or, key benefits that make its use the least costly for the fleets, or for private owners to run.

Truck-Trailer-Market-Beginning-a-Slow-Recovery-in-2010&id=4373173 Market trends show the beginning of recovery for manufacturers of tractors, used to pull dry freight vans, refrigerated vans, flatbed trailers and other truck trailers.

"We've just got too many trucks and not enough freight," Vieth surmised. This year should close out at about 228,000 Class 8 trucks built before a continued downward trajectory. But several factors are likely to help the market pick back up, as ACT expects that 243,000 Class 8 trucks will be built. https://www.fleetowner.com/truck-stats/class-8-market-dip-17-upbeat-outlook-farther-out

FTR reported that Class 8 orders were "tremendous" for the U.S. market, with most truck makers achieving elevated levels. Orders were up 25% month over month and 187% year over year.

"Orders have been astounding in 2018," FTR said in a press release, noting that five of the highest 12 order months ever have occurred in the first seven months of this year. North American Class 8 orders for the past 12 months have now totaled 445,000 units. CIMC and Direct Chassis jointly introduced the new refrigerated trailer, the CIMC R8000, at the Mid-America show. The show model designed for truckload operation with two inches of polyurethane foam in the walls, 3" in the roof and doors, and 2.5" in the floor.

Objective/Future (Use of funds)

This Use of Funds statement is the foundation that will be used to begin setting up the Installation and Service Center for the Reaction Drive System (RDS). This facility will also serve as the Headquarters for Power Products LLC here in the Grater Dayton Metropolitan, Ohio area. This location will also serve as a training facility to help the planned expansion to a national organization. Our instructors will certify our client fleet service personnel to allow fleet operations to begin servicing and maintaining the installed retrofit kits themselves supporting long term savings for routine maintenance and service of their tractors. This plan will also serve as a blueprint that will be used to begin our long-term Development Plan, for providing national service centers across the United States, to begin introduction of the Reaction Drive System into the Transportation Industry.
This Use of Funds Statement shows at the end of 6 months, total profits will be $203,900, and couple this with the reserve investment of $24,400, the company will have a total of $28,300, after paying off the initial investment of $200,000. To promote the installation of the Reaction Drive System, the first funding will be used to develop a prototype tractor that will be used to introduce the system to the local transportation industry. With the contacts that we have here in the Greater Metropolitan Dayton Area, we will be able to begin developing a national operation from the revenue from our first year of operation. This first effort has the potential to develop the financing we will need for future expansion efforts that will eventually include a foreign introduction as we continue to grow.

Our first prototype tractor will provide a minimum of 70% improvement in fuel economy, allowing trucking companies to make the decision to install the Reaction Drive System for any fleet operation, a simple decision to make. With a 70% reduction in the use of fuel, the economics involved offsets the cost of the RDS installation. As the Reaction Drive System performs, each fleet will realize the advantages and begin giving purchase orders to install the system. With confirmed contracts, the drain on capital assets will be decreased as a revenue stream is established.

The Team

Herman Mitchell - President and CTO

Experienced in the manufacture of components focused toward research and development of the projects he is developing. Has an extensive knowledge in the field of mechanics and electronics that has allowed him to merge his knowledge base into the effort of his R&D projects. Have several energy related patents issued? He is President of Cook and Mitchell Power Systems (a holding company for investors of SuperDrive, Inc). He started both companies and after the sale of SD, C&M became a holding company.

Ayo Ogunduyile - : Vice President of Sales and Engineering

Strong background in engineering, manufacturing sales, business development, and strategic partnership development, President and CEO of EMLAY GROUP INTERNATIONAL, LLC state of Ohio registered corporation. VP Sales Consultant with Naija Motors, Inc. a Maryland based auto dealer. He is a twenty-year board member of advisory council for Manufacturing Engineering Program at CSU. A Licensed Baptist Minister, President Emeritus of Dayton Alumni Chapter of National Society of Black Engineers, has served on the Industrial Advisory Committee at Central State University for twenty years.

Bobby Jordan - Certified A1 Technician

Certified A1 Technician

Exit Strategy

Our primary role is to position the Company to allow it to be a prime venture that can develop sustainable profit margins now and far into the near future.

The Company is developing an innovative technology for reducing energy effort, that can apply to all rolling stock, regardless of size, or application, for powered or non-powered devices, or vehicles. With introduction and dissemination throughout the transportation industry, the valuation of this technology, will exceed several trillion dollars, in effort savings as its utility becomes known, to the transportation industry, and to the public in general. Being the developer, it affords us a perspective for the future of this technology, with a broad view of options not known to the public, or the rest of the world. With this knowledge base, it is easy to consider the future sale of the Company, will exceed several billion dollars as the system becomes known, and used throughout the industry.

Two options that are favorable at this time are to be, bought by another company, or, sell to other company members. If an acquisition by another company, the valuation of the business can far exceed what otherwise we could earn in a sale to members of the company. Understanding the valuation of this group of patented, value added products, which will sustain the profitability of the company for many years into the future, allows planning for a healthy ROI to all investors at the time of sale.

If the Company sales to members of the company, it can become an easy exit as it will still be in the hands of managers who understand the operation and can carry forward with the normal day to day operations. Added options can allow negotiation for equity in the buyout of the Company allowing for continued earned dividends afterwards. In this case clearly it is in the company’s best interest to ensure the firm is a good fit for the members to buy and therefore more likely to continue being prosperous.
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Reviews, Comments and Questions

I wish you all the best with it.

May 29, 2020

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