Moller International/Freedom Motors February 2016 Newsletter

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Moller International

Neuera 200

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Neuera 200

The Neuera 200 remains scheduled for FAA approval on April 1st 2016. Our concern is completing some unexpected requirements that have been added and others that may be added. The FAA has made us aware of additional tests they would like to see that were not previously stated, like determining the maximum thrust or lift that the Neuera can generate. This is not a simple test. Another requirement is that we must provide traditional foot operated yaw controls like a helicopter in order to fall under the rotary wing FAA category. This does allow the Neuera 200 to be approved under an existing regulation which is helpful but adds to our workload. The Neuera will therefore have both foot pedals and stick twist for yaw control until stick twist alone is approved by the FAA.
Following FAA approval, the Neuera 200 will be allowed to fly within a 25 mile radius of our facility. After accumulating up to 40 flight hours, it will be permitted to carry a passenger and be demonstrable beyond the 25 mile radius. Once a history of reliability is established, we will be in a position to pursue the right to sell the Neuera 200 under a new or existing FAA approved category.

Volantor funding sources.

  • With the help of our International Marketing Director, Mike Shanley, we have engaged a crowdfunding firm in China to raise capital for Moller International. In China, crowdfunding refers to something similar to the US SEC approved equity crowdfunding (does not involve incentives/gifts), where a company can raise up to $1 million in return for acquiring company stock. With crowdfunding in China, however, there is no limitation on the amount that can be raised by selling stock or through convertible loans. The crowdfunding management group we have engaged recently raised over $1 billion for a company in a two week period.

  • The following outline of Freedom Motors’ Reg. A funding plan shows that if it is fully funded, FM will be in a position to repay MI approximately $4 million it owes for engine contract work it did. (MI expects to have its completely revised website in place within two weeks).

  • As engine production by FM begins, a licensing agreement with MI will come into effect; FM agreed to pay MI a 5% royalty on the sales price of any engine it sells. FM is also obligated to provide MI with 30% of any revenue it receives from sub-license agreements generated by FM. Since 90% of the world’s market for engines is for products outside the US, it is reasonable to assume that the majority of engines will be produced under sub-license agreements from FM.

Freedom Motors

In our December newsletter, FM outlined why the new Reg. A+ rules greatly improved its ability to raise funds without an underwriter through a “test the waters” campaign. Historically, Reg. A offerings have not been able to ­­­­engage an underwriter, without which only very modest amounts of money can be raised. Our initial goal was $2.5 million, which would have allowed FM to execute its business plan but would have required that all production equipment be leased. This level of funding projected that FM would achieve a 0.00057% penetration of the world engine market by its 5th year of production leading to $199 million in revenue. This former goal would not allow FM to immediately finish and patent a number of engine improvements. It would also not allow the repayment of FM debt to MI. As such, the new rules allow FM to realistically increase its goal to $20 million. This would put FM in a much better position to obtain worldwide patents on its rotary engine improvements. This is key to executing engine production license agreements with potential licensees since much of our engine market will be outside the US. FM has engaged StartEngine.com as the platform for its Reg. A “test the waters” campaign, and is hiring Advertising-Partners (AP) to promote this campaign. AP is one of the top advertising firms in the US. Please review our new and improved FM website at www.Freedom-Motors.com . The FM website will be undergoing further significant changes to support its “test the waters” campaign.

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