Hydra Fuel Cell Corporation
A Wholly Owned Subsidiary of American Security Resources Corporation
(Taken from the ARSC website. Note: Statements do not reflect up-to-date recent developments, such as U.L. listing submission)
EXECUTIVE SUMMARY
As the demand for energy continues to increase and prices for both oil and natural gas make new highs, the need for low cost and efficient power generation systems soars! The emerging need for stationary Fuel Cell technology for the industrial/ commercial sector for standby and remote power, and for high-end residential users, is evident. The Freedonia Group projects that the Fuel Cell Opportunity is currently a $5 billion segment of a Trillion dollar industry for reliable power and distributed generation for the digital economy.
Hydra Fuel Cell Corporation is uniquely positioned to provide a viable product for these sectors on a “large scale basis” in a relatively short period of time.
Management projects that a less than 2% penetration of the fixed power market will yield sales of over $100 million in two years. It is expected that within 8 years the company could be generating in excess of a billion dollars a year.
Hydra Fuel Cell Corporation is a wholly owned subsidiary of American Security Resources Corporation (OTCBB: ARSC)
The Hydra Fuel Cell is the “first” mass producible fuel cell system which can provide the efficiency to rival traditional generated power from public utilities. The cost of this unit is one third that of competitive fuel cell units.
The BTU consumption to usable power efficiency of the Hydra unit is double that of conventional oil burning generators. This product has the unique capability to allow an owner to generate power during off-hours at a cost of around $0.06/KW/hr to $0.08/KW/hr and to sell it back to the grid for $0.12 to $0.16/KW/hr, while supplying the owner’s normal power needs during the day. In effect this unit becomes a cash generator for the owner, selling electricity for up to a 100% gross profit.
EXPERIENCED TEAM
The inventor of the Fuel Cell technology, Ed Davis is a member of ARSC’s Board of Directors and serves as Chairman of Hydra Fuel Cell Corp. Mr. Davis is currently the founder and Director of Business Development for the Consumer Electronics Group at Intel Corporation. According to Bob Farr, President of American Security Resources Corporation, "Ed brings to ARSC a wealth of experience, having served on the Boards of two public companies, Helionetics (HLX) on the American Exchange and CompuCorp (which merged into RETX) on NASDAQ".
Farr went on to note that, in addition to his notable accomplishments at Intel Corporation, Mr. Davis has an impressive track record of helping start-ups achieve rapid financial growth. “Early in his career, Ed built his own company from inception to $5 million per year and sold it to Helionetics,” said Farr. “He was a founding member that built Exsysco which became National Advanced Systems from scratch to $300 million in 18 months. He was also a founder of a new division of Intel that achieved $750 million in sales in two years. We are confident that Ed will guide our subsidiary, Hydra Fuel Cell Corporation, to its goal of over $100 million in sales within the next few years.”
Ben Shafer is the Chief Technology Officer for Hydra Fuel Cell Corporation. He has served as an Electrical Engineer and Software architect at Intel Corporation. He also was Principal Engineer and Systems Architect at Tektronix Corporation.
James Twedt, CPA is President and CEO of Hydra Fuel Cell Corporation. Mr. Twedt is a former IRS Agent and Agent for the office of International Operations. He has served as CFO for a large public Company.
FUEL CELL PRODUCT
The current product is in the final stages of development and will be called the HydraStax™ fuel cell. It is intended to be the first modular, mass producible, fuel cell. The Unit is housed in a computer-like housing or HVAC unit, which will support 10 individual fuel cells, each generating 1KW. The fuel cell is designed to be completely interchangeable and each module will be hot-swappable. Included in the package will be bi-directional, remote monitoring, command and control software and a comprehensive set of monitors which will be supervised by the software.
Management projects that in volume production a 6KW system will sell in the $4500-$5000 range which will result in a Cost /KW of roughly $650. This cost is expected to come down into the $400/ KW range with mass production efficiencies.
The Company will ship beta units to customers in January, 2006.
MANUFACTURING PROCESS
All of the components in the initial fuel cell manufacturing process are currently available from existing suppliers in the market. This allows an assembly operation to be conducted in a way that can rapidly ramp up production. Extensive use will be made of existing volume manufacturing techniques from manufacturers with whom we have long standing working relationships from other ventures.
OUTLOOK
The break-through technology is now in place, the industry is primed for great growth, and the company is taking advantage of the need for mass production of a low cost and efficient power generation system.
Based on these factors ARSC is expecting 2006 sales to be around 15 million dollars, annualized on fourth quarter revenue. Using a conservative PE ratio of 15-1, if that level of sales is achieved, the company would be able to defend a valuation of the stock well in excess of $1.
Using present valuation of the stock, the risk-reward ratio should be one to consider.
to make a million bucks over night" 
