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Potential Difference Inc. Investor Proposal
1. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
“You never change things by fighting the existing reality...
To change something, build a new model that makes the existing model obsolete.”
~ R. Buckminster Fuller
Dear Potential Investor,
Potential Difference Inc. has now signed a 1 year lease to move PDi's Corporate
Headquarters and Research and Development Lab in an existing hydroelectric generating
facility in Almonte, Ontario. The facility is owned by Enerdu Power Systems Ltd.
(http://www.electricpower.cc/company-enerdu-power-systems-ltd-in-almonte-2646).
PDi's short term goal is to use this facility to showcase the efficacy of our ReGen-X and BiTT
innovations in real world products and applications explained in detail herein. And to provide
Intellectual Property Licensees and investors with access to our innovations. PDi has already
expressed interest in eventually developing a strategic partnership with Enerdu to integrate
our ReGen-X innovation into hydroelectric applications which we hope will eventually find
their way into Enerdu's new pending 1 Mega Watt hydroelectric generating facility with
construction to begin within the next two years.
The first step; to achieving this goal is to prove the on site viability and scalability of the
ReGen-X innovation to Enerdu over the next year. Enerdu has already reviewed PDi's
proposal and have expressed some initial interest and is willing to work with PDi so that we
may achieve our objectives of making ReGen-X Hydroelectric Generators the benchmark for
all future worldwide hydroelectric power generation.
Our message to Enerdu and all energy producers worldwide is:
The ReGen-X Generator Innovation reverses
the internally created on-load resistive generator Armature Reaction
and replaces it with an assistive Armature Reaction instead.
As a result of this scientific breakthrough, the maximum mechanical power required by the
ReGen-X Generator is less than the mechanical input power that is required on no-load.
When placed on-load the ReGen-X Generator requires a decrease in input mechanical power
because the energy conversion efficiency from mechanical to electrical is infinite (see Addendum B),
whereas all other conventional generators require an increase in mechanical input power
because their mechanical to electrical energy conversion is less than 100% efficient.
The ReGen-X Generator is therefore, the new benchmark for ALL generators worldwide.
2. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
PDi's Challenge:
The challenge for PDi moving forward is no longer related trying to convince skeptics and
cynics of the reality of this new paradigm shifting scientific innovation (because that has
already been done independently numerous times), but that the innovation can be applied
and scaled up in real world applications that are cost effective and functionally durable
enough to replace all existing generator designs. There is absolutely no doubt that these “3
challenges” can be surmounted with adequate funding and support.
PDi Short Term Funding Proposal:
• In order to financially fund this initial process PDi is selling a 30% portion of all it's
present and future IP to PDi investors (3 of 5 PDi IPs explained here:
(http://www.slideshare.net/PDiCEOThaneHeins3240/introduction-to-potential-difference-inc-innovations-33244064)
• PDi will also be providing PDi investors with shares in PDi's two subsidiary newcos
which are yet to be incorporated.
• Energy Quantum Intellectual Property, eQuantum IP (eQIP Inc.)
• Loophole Engineering and Power (L.E.A.P. Inc.)
• PDi / eQuantum LEAP
• eQuantum will be the IP licensing arm and LEAP the engineering and manufacturing
and engineering division.
• PDi investors will provide PDi with Karma Investment - working capital.
• Karma Investment allows PDi to create value for the investors.
• Karma Investment provides the investor with a 100% return of their investment once IP
revenue is initiated through LEAP manufacturing or eQIP IP licensing or if the IP is
sold.
• Karma Investment allows the investor to retain their company and IP ownership shares
and pending royalties but with an eventual NET Zero out of pocket expense.
PDi Long Term Funding Proposal:
• Concurrently with the above process and while PDi is proving the efficacy and viability
of our innovations in scaled up generators and motors it will begin the manufacturing
and IP Distribution Licensing process.
• Developmental Partnerships will be created which will provide Developmental Partners
(DPs) with no up front cost IP access in return for Karma IP Development Funding.
• Karma IP Development Funding also allows and ensures that IP Developmental
Partners recoup 100% of their IP developmental funding provided to PDi until their NET
capital outlay is eventually NET zero as well.
• 100% Karma IP Development Funding will be returned to the DP once product sales
have been initiated with a temporary reduction in royalty payments to PDi their initial
funds have been returned.
• Zero IP Access Cost and NET Zero IP Development Costs to DPs.
3. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
ReGen-X and BiTT Development Preamble:
PDi has spent the last 15 years unapologetically and uncompromisingly developing its
ReGen-X™and BiTT™ intellectual property and we are now entering into the manufacturing
proof of concept, demonstration stage with global IP licensing.
PDi has garnered considerable positive international attention, reasonable skepticism and
even unreasonable negative cynicism regarding our innovations over the years. We have
weathered the “too good to be true” storm and now the onus is on PDi to prove the efficacy of
our energy innovations in tangible, commercially viable Clean-Tech solutions that eliminate
all external doubt in order for PDi to become a commercially successful international company
and reward our investors for their unwavering faith and patience since 2005.
PDi Proposed ReGen-X Innovation Applications:
1. Deep Water Submerged Hydro Kinetic Generator:
Designed and invented by PDi investor and Mechanical Engineer, Mike Brace this
unique hydroelectric generator can sit innocuously at the bottom of any river,
completely out of sight and with near zero negative impact on the river's aquatic life.
The Hydro Kinetic Generator can be employed in virtually any slow or fast moving river
or tidal area and sized accordingly.
The infinite on-load efficiency of the ReGen-X Generator provides a perfect marriage
because the torque production capabilities of the HKG are very substantial.
4. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
PDi Proposed ReGen-X Innovation Applications (continued):
2. Shallow Water Surface Undershot Water Wheel Generator:
Undershot Water Wheels are not new by any stretch of the imagination but are
somewhat inefficient when applied to electricity generation because of the resistive
nature of generator armature reaction.
Undershot Water Wheels also require expensive location engineering and continuous
monitoring and control of the headwater volume which can be prohibitive.
The ReGen-X Generator equipped Undershot Water Wheel will only require the
minimum torque required to turn the system on no-load. This reality opens the door for
virtually endless dam-less applications in shallow rivers and streams.
It also provides the opportunity for water born vessels to deliver electrical power to the
vessel while in transit in a non-parasitic way.
In addition headwater monitoring and control engineering are not required. The
ReGen-X Generator equipped Undershot Water Wheel can be self-monitored to raise
itself out of the water once placed on load since
minimal input torque is required.
ReGen-X Undershot Water Wheel Generators can be
installed in rivers and tidal areas and under almost any
bridge worldwire.
PDi Proposed ReGen-X Innovation Applications
5. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
(continued):
3. Tesla Turbine Hydroelectric Generator:
The Tesla Turbine is a highly efficient hydroelectric
turbine invented by Nikola Tesla.
This turbine design can be integrated at the base of all
water towers globally and inside all water delivery
systems and used to generate electricity while increasing
the water pressure inside the delivery pipes.
This ability is a result of the ReGen-X Generator's ability
to increase drive shaft torque and accelerate itself when
placed on-load. The result is an increase in water
pressure while generating useable electric power.
This application can also be employed for oil, natural
gas, steam or any commodity delivery system that
employs a pipe transportation method to reduce
pumping energy consumption costs.
4. Point of Use nnocuous, Invisible and Silent Urban Vertical Axis Wind Turbines
for Residential and Commercial Power Generation.
Because of the low mechanical input power requirements of the ReGen-X Generator it
lends itself to many applications where large generators would not be practical.
One such application is Point of Use Wind Generator Power Production.
PDi intends to integrate our ReGen-X Generator Innovation into Vertical Axis Wind
Turbines (VATS), both invisibly and within athletically pleasing designs.
6. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
PDi Proposed ReGen-X Innovation Applications (continued):
5. Electric Vehicle ReGen-X Generator and Motor Development and Integration:
PDi's Electric Vehicle Regenerative Acceleration (ReGen-X) Technology now allows all
electric vehicles to partially recharge themselves as they drive. 52% continuous
recharging rate has already been established on a Hero Electric scooter (doubling the
scooter's range) with a next target milestone of 75% expected.
PDi intends to integrate and demonstrate our innovation in ebikes, escooters,
emotorcycles and ecars.
PDi plans to start with a clean (no gas, no oil, no antifreeze etc.) 1934 Ford Model A
(“Eh”) shown here:
http://www.insideottawavalley.com/news-story/4034331-multi-million-dollar-opportunity-for-renfrew-native/
This integration project is
ideal because it allows for
the minimal amount of
batteries to be stored and
and clearly visible in the
truck's bed.
The ReGen-X Innovation
can be integrated as a stand
alone motor or as a range
extending retrofit on any existing electric vehicle. Infinite EV Range is the eventual
design goal which would entail the use of both conventional and PDi power
generation devices.
The Institute for Transportation Advancement Quebec (ITAQ) has pledged to provide
PDi with an existing EV Zen Car for ReGen-X integration and testing at ITAQ's vehicle
test center.
914 Porsche Volts-Wagen
7. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
PDi Proposed ReGen-X Innovation Applications (continued):
6. ReGen-X Elevator Integration:
PDi's intends to showcase our Elevator and Escalator
Power Production Technology at our new facility.
PDi's initial energy research and development began with
the development of Uninterrupted Power Supplies (UPS),
at the University of Virginia's Rotating Machines and
Controls Laboratory (ROMAC) with Dr. Paul Allaire.
A UPS is essentially a high speed flywheel that stores
kinetic energy until required. UPS' are great for stabilizing
the grid power with regards to evening out power surges
etc. They are also effective at recapturing energy from
elevators as they descend although they do reduce the
elevators speed and can only be used while braking.
The great aspect of PDi's ReGen-X innovation in this
flywheel energy delivery application is that it would not
decelerate the flywheel or the elevator while delivering grid
power and can be employed during 100% of the elevator's
operation. The ReGen-X Generator innovation is proven to extend flywheel rotation
free spin down duration time by about 200% while delivering maximum power to a
load.
A ReGen-X Generator application would actually reduce the power consumption by the
elevator motor – while delivering power to the building or the grid and the more power
delivered the less input power required by the motor. NCR tests at Ottawa University
have shown a 40% motor power reduction with over 200% more power being delivered
by a ReGen-X Generator in head to head tests with a conventional generator.
Any typical kinetic energy recapturing method would only be applicable as the elevator
descends (and this would be somewhat prohibitive in that it would reduce the elevators
descending rate due to the generator's regenerative braking effects).
The ReGen-X Generator innovation however would allow electrical power extraction
while the elevator ascends as well as when it descends without any parasitic effects.
Furthermore PDi has developed a ReGen-X Motor that has the ability to deliver
generator electrical output power while simultaneously operating in motor mode by
collecting the motor coil's collapsing magnetic field and returning it to the source.
8. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
PDi Proposed ReGen-X Innovation Applications (continued):
7. Solar Panel Installation and BiTT Integration:
PDi intends to install photovoltaic solar panels at our new facility to showcase PDi's
new Bi-Toroid transformer innovation with regards to solar power output multiplication.
PDi's Bi-Toroid Transformer (BiTT) innovation now allows all transformers to deliver on-
load power with the same input current magnitude that is required on no-load because
the BiTT harvests and utilizes the secondary coil's own BEMF induced magnetic field
energy to deliver the desired load power without requiring an input power increase to
the transformer's primary coil.
(https://www.youtube.com/watch?v=-Q3NaNEmdok&list=UU6ZPiUObgaWAyeV3SmUH3mg).
All conventional transformer designs require an increase in primary current (and power
with associated losses in efficiency) to deliver load power and the greater the
magnitude of load power desired, the more the primary current needs to be increased,
whereas the BiTT does not require any additional input power when placed on-load
(and in many cases the BiTT's primary current actually decreases on-load).
Because the BiTT partially self powers itself with primary and secondary BEMF
induced flux providing the total NET on-load flux requirements, the BiTT may be used
to multiply solar power outputs. Early tests suggest that this is a definite possibility and
therefore PDi would install solar panels at our new facility to test the viability of this
application and to provide the garage workshop's own electricity requirements
innocuously in harmony with the Earth, Wind and Fire.
All in all PDi's final desired operational mandate at our new Corporate Headquarters at
our 11 Main Street location would be to eventually showcase commercial and
residential locations that are completely or as close to energy neutral and
environmentally harmless in every way possible, which also includes the materials
manufacturing process' as well.
Thank you for allowing PDi to present our intentions for your consideration...
With kind regards
Thane
Thane C. Heins
President & CEO
Potential +/- Difference Inc. Clean-Tech Research & Development
"We generate solutions"
Email: thaneh@potentialdifference.ca
Cell: 613.795.1602
9. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
ADDENDUM A
Projected Budget Costs Year 1 = $250,000.00
1. Location costs = $36,000.00
2. Salaries for two employees: $12,000 + $24,000 = $36,000.00
3. Auto = $13,000.00 + $1500.00
4. EV electrification components = $ 20,000.00
5. Patenting = $ 30,000.00
6. Working budget = $126,000.00
PDi has Developmental Partners who have supplied PDi in the past with materials in return
for PDi shares. This has allowed PDi to produce prototypes at very low capital outlay.
PDi intends to continue this trend which ought to be welcomed by our DPs since we intend to
contractually ensure that PDi's DPs are entitled to be the primary exclusive supplier(s) moving
forward.
Additional operating funds will be supplied by IP Licensees as per our Karma licensee funding
agreements.
Projected Budget Costs Year 2 - 5 = $2,500,000.00
PDi intends to purchase the Canadian Hydro Components building which is located directly
across the street from our current location, when it goes up for sale next year.
1. Canadian Hydro Components Building Purchase = $1,000,000.00
2. Staff / year = $1,000,000 -
3. TBD...
10. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
ADDENDUM B
What Infinite Efficiency Energy Conversion Really Means
Currently there is a popular misconception that infinite efficiency is synonymous with
perpetual motion. It is not.
An electric generator is a machine that converts mechanical energy to electrical energy and
the energy conversion efficiency is calculated by;
The generator's output power delivered to the load
divided by,
The magnitude of the mechanical input power increase
when the generator is placed on-load
multiplied by 100.
For example, if an electric generator delivers 9 Watts of electrical output power to a load and
that requires a 10 Watt increase in mechanical input power delivered to the generator input
drive shaft over the no-load idle input power condition, then that generator's energy
conversion efficiency would be:
Output Power / Input Power Increase x 100 = Energy Conversion Efficiency
or
9 / 10 x 100 = 90%
If that same generator was able to deliver 9 Watts to the load with a 0 Watt increase in
mechanical power over the no-load idle input power condition then the energy conversion
efficiency would be:
9 / 0 x 100 = infinite%
All conventional electric generators always require an increase in mechanical input
power when placed on-load (due to their resistive armature reaction) and that increase
magnitude is always greater that the output power delivered by the generator to the
load because the energy conversion efficiency is always less that 100%.
The ReGen-X Generator on the other hand, always requires a decrease in mechanical
input power over the no-load input condition when placed on-load...
If there ever could be such a number as being greater than infinite efficiency then the
ReGen-X Generator would qualify because the on-load mechanical power increase is
not 0 Watts when placed on-load but actually less than 0 Watts.
“Nothing is too wonderful to be true” ~ Michael Faraday
11. Potential +/- Difference Inc.
Investor Proposal Letter May 1st
2014
Alberta Tar Sands
“Without some sort of real energy breakthrough…
we can see that future mobility is likely to become much more constrained than it is today…
meeting the urgent need to reduce the consumption of oil immediately at all costs
or face the consequences of a meltdown in civilization”
~ William Tahil
Research Director
Meridian International Research
“Thane,
Your Press Release was most interesting to me as a physicist & an engineer.
The level of technical detail was adequate to tell me that you probably have made a very
significant advance in applied physics & in safely & successfully handling
A NEW SOURCE OF ELECTRIC POWER.
Congratulations!”
~ Stanley J. Townsend, Ph.D., P.Eng.
University of Toronto