BOTHELL, Wash., May 27, 2015 /PRNewswire/ -- Neah Power Systems,
Inc. (OTCBB: NPWZ) (OTC: NPWZ) -
To Our Shareholders:
As a supplement to our latest quarterly filing, I want to
provide you with a brief report on the status of our Company
operations as well as relate the progress achieved by our
management in advancing efforts to commercialize, license and sell
NEAH Power's industry leading technologies and
products.
While we continue to develop the many opportunities announced to
date, we are also preparing to announce several more initiatives
that are expected to contribute significantly to our growth and
standing as an emerging leader in fuel cell and battery
technologies.
In light of the current stock price, which management believes
does not adequately reflect the true value of the Company's assets,
I wish to reassure you that the level of interest in NEAH Power's
technologies has never been greater. As the frenzy of venture
capital and private equity investing in alternative energy and
clean energy companies comes back down to Earth, the focus of the
industry is irreversibly shifting to practical, reliable and
cost-effective solutions like those of NEAH Power, which can
realistically meet current and urgent demands for off-grid power
and energy storage in compact, scalable form factors.
We are extremely pleased to announce that we have been doing
research and development on a lithium battery technology that
appears to be far superior to any incumbent technologies (the
PowerChip® Battery). At an appropriate time in the near future,
once the Company has achieved the next round of performance
targets, we will be sharing details with our shareholders. Once
completed, we believe our Porous Silicon Battery will be a
disruptive power storage system for a whole range of applications
from consumer goods to automotive applications, as well as for
scalable storage solutions for off-peak and back-up power
usage.
Now more than ever, power storage and generating technologies,
such as batteries, ultra-capacitors and fuel cells are being used
to increase efficiency and reliability in transportation,
infrastructure, industrial equipment, and portable electronics,
with the aim of creating a more sustainable, environmentally
responsible, and secure economic future. Furthermore, the global
energy industry, governments and other stakeholders have recognized
that fuel cell and battery technologies such as ours, offer an
attractive option for reliable backup power to the electric
grid.
Also in our favor is the growing global demand for reliable
remote power, both in developed and emerging markets, where large
swaths of land that off-grid are now being incorporated. This
demand is even greater in continents such as Africa where nations are facing a real crisis
of rapid growth amidst failing or inadequate power grids. Over the
next 10 years, emerging nations are anticipated to account for
$13.6 billion in new power
infrastructure investment as they roll out massive electric grid
modernization programs to meet demand.
With the demand for real-time communication, access to the
internet, and remote security for developing communities rapidly
growing, NEAH Power clearly sees itself as a front-runner , as we
have the technologies and products available to best deliver remote
power systems, including "community power grids". With
continued success in securing the proper relationships,
distribution partners and capital, NEAH Power should ostensibly
become one of the leading providers of clean, reliable, and low
cost power to remote areas.
Our management with the support of several new consultants and
advisors have been focused intently on capitalizing on this
increased attention and interest, and expect that the increasingly
favorable environment will translate into real economic benefits
for our shareholders. Accordingly, over the course of the last six
months, NEAH Power's technologies have attracted new interest and
attention from numerous governments, industry partners, companies
and other end-users, who have come to recognize that NEAH Power's
smaller, lighter and more powerful solutions represent a practical
and reliable path to upgrade power capabilities. In addition, the
interest of the investment community in technologies such as ours
has never been as intense as it is today.
As to specific applications, we have seen significant interest
for our power technologies from manufacturers of unmanned vehicles.
This is particularly due to the fact that the unique capabilities
and flexible application of our proprietary technologies, makes
NEAH Power one of the few, if not the only, fuel cell company that
can address any application, whether aerial, land or
undersea.
At present we are in discussions with various UAV manufactures
that wish to extend flight times and/or increase sensor payload
capacity with the higher power concentration of a hybrid fuel cell
solution incorporating NEAH Power's technologies. Importantly, the
same product development efforts here can be readily translated to
other vehicles, including automotive, maritime and rail
applications.
We have also seen a tremendous interest in resellers worldwide
who are interested in our high energy density Formira
HODTM (Hydrogen-on-Demand) platform to supplement grid,
solar and other hybrid energy platforms, as well as a stand-alone
system in micro-grid applications. While we are growing our
distribution and resale network for Formira HODTM, NEAH
Power's management has also been focused on securing strategic
partners which will allow us to deploy and support our products
worldwide and enhance our branding. We expect to announce several
exciting strategic partnerships soon!
Clearly, there is a lot to be proud of and much to be excited
about as NEAH Power advances its growth phase. In spite of
the challenging financial environment and the contrarian pressure
on our stock, we feel that our power technologies are on the brink
of our most significant economic achievements.
Status of the Shorai Acquisition
We previously announced the signing of a definitive
agreement to merge with Shorai, Inc., with a targeted completion
date of June 15 2015. Shorai is a
leading provider of lithium ion-based power sports and starter
battery solutions for the consumer motorsport industry. This merger
is expected to be immediately accretive with Shorai reporting over
$4.0 million (unaudited) revenue for
the twelve months ended December 2014
with positive cash flow in 4Q 2014. Further, the
acquisition will allow us to realize product, marketing and
operational synergies as NEAH Power rolls our products. We are
endeavoring to negotiate with investors the best possible deal for
our current Company shareholders while we secure the capital
necessary to close this acquisition transaction.
PowerChip® Fuel Cell Product Acceptance
We recently announced the successful completion of testing of
three PowerChip® units with the Defense Research and Development
Organization (DRDO) of the Government of India. These units were manufactured and
shipped against an open purchase order. Product testing,
qualification and acceptance by a third party (a government owned
entity) were completed December 2014. We consider this
third party validation an important and key milestone for the
Company. As planned, we have proceeded with discussions aimed at
completing a licensing agreement with the Government of
India, which if secured should
result in significant supply contracts, licensing revenue and
establish a broad, sustainable market in India and its territories. Completion of the
ongoing discussions is pending on certain high level appointments
at the DRDO expected in the near future.
Formira HODTM
(Hydrogen on Demand)
Our Formira HODTM fuel cell continues to
demonstrate best-in-class performance. As stated, we are in
discussions with several leading manufacturers of unmanned aerial
vehicles (UAVs), remote robotic vehicles, automotive, rail,
off-grid power, and medical device companies. The Formira
HODTM fuel cell has been proven as a safe,
cost-effective and energy dense solution for the production of
hydrogen for a variety of applications. It surpasses other
sources of energy like compressed hydrogen, the most commonly used
method of utilizing hydrogen to generate energy. We are
presently designing the Formira HODTM system into UAVs
with Silent Falcon, and are targeting a shipment of the first units
around the end of June 2015 to our
security and defense partner, Tectonica Australia, a leading global
defense and security systems integrator. We are very pleased
with the reception our Formira HODTM system is
receiving from different commercial and consumer companies and
expect this to translate to material sales.
BuzzBar Suite Gen 2 & Gen 3
As of date, NEAH Power has shipped all of the orders that we
received through the website and our Indiegogo campaign. We
also have presented the product to various big box retailers and
end users, and have aggregated the feedback from them into BuzzBar
Gen 3. Our Gen 3 BuzzBar has received very good feedback. Pending
the completion of a satisfactory capital raise and upon completing
the Shorai Acquisition, we expect shipping of the Gen 3 BuzzBar to
commence later this year. Our objective is to leverage the Shorai
brand and marketing prowess to launch the Gen 3 in a most
significant way!
We look forward to announcing more exciting news and milestones
very soon! As we develop the numerous opportunities at hand,
expand our business development efforts going forward, and secure
the necessary capital to fully execute our plan, management will
continue working hard to accomplish the mission. Our success is
only achieved with the tireless work of our employees, the support
of our shareholders, the diligent governance of our Board of
Directors, and the expert guidance of our Strategic Advisory Board.
Thank you for your trust and loyalty.
Best Regards,
Chris D'Couto
President & CEO
Neah Power Systems
Forward Looking Statements
Certain of the statements contained herein may be, within the
meaning of the federal securities laws, "forward-looking
statements," which are subject to risks and uncertainties that
could cause actual results to differ materially from those
described in the forward-looking statements, and the Company does
not undertake any responsibility to update any of these statements
in the future. Please read Neah Power System's Form 10-K for the
fiscal year ended September 30, 2014
and its Quarterly Reports on Form 10-Q filed with the SEC during
fiscal 2015 for a discussion of such risks, uncertainties and other
factors.
For more information please contact the Company at
David Schmidt, CFO
dschmidt@neahpower.com
+1-425-424-3324 ext. 110
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SOURCE Neah Power Systems, Inc.