INTRODUCTION

As OHM developed it’s product line it identified other unique niche markets for products, related to OHM’s core product, which includes a Standardized Load Line, a Power Supply Line, a series of specialized rugged Chassises and the design for a Power Wire Wound Custom and Standardized Resistor Series. These will become their own Corporations, each with a large potential market within numerous market segments, the potential for joint ventures with major corporations and with matured sales the future possibility of take over bids from joint venture partners or others in the industry. The above four companies will become operating companies of one Public Company in order to access the resources necessary to fully develop the products and their markets while OHM will, for the time being, remain a private Corporation whose growth will be constant and steady through a Rep network. Since the Public Company will have products suitable for the global distributor network it will have a major upwards sales curve due to the Distributors established regional/global customer bases which will be combined with a Rep network for direct sales to major military, defense contractors and commercial customers. The first company to hit the market will be the Standard Loads which will require a very modest initial Capital Raise-up. These funds will be utilized to incorporate Standard Loads Inc., prepare opening Balance Sheet, organize the Minute Book, build Production models up to 1000Watts, finalize the Production Drawings and Parts Lists, finalize the Production Models, perform all final tests, finalize User Manuals, finalize all documentation required to outsource production and prepare Distributor Product Information Packages. 

STANDARD LOADS INC. will set-up its own engineering laboratory in order to continue to do product concepts, designs, production prototypes, Research and Development, R & D parts inventory, production drawings, production parts lists, etc., all in-house. In order to maintain costs on its R & D to date, STANDARD LOADS INC. has been utilizing the lab resources of a closely allied electronics company and will still have these resources available to it after establishing its own lab and corporate office.

The corporate offices of STANDARD LOADS INC. will oversee all global marketing activities, public company activities, accounting and financial statements, government reports, legal issues, document control, sub-contracting arrangements, etc.

Production of STANDARD LOADS INC. products will be done with a co-operative partner whose manufacturing facilities have ISO quality assurance programs and world safety approvals such as CSA, UL, VDE, etc.

The Company’s products were well received in response to a limited survey of North American distributors with fifty-three (53) Distributors wanting our Product Information as soon as it is available. Thirty-seven (37) United States Distributors and sixteen (16) Canadian Distributors. In North America alone there are an additional 550 distributors and an additional 500 foreign distributors still to be contacted.

Three of OHM Loads American Manufacturers Reps are prepared to act as marketing advisors and officially represent our various products. The New York State Rep (with 35 years experience in marketing electronics including distributors) is going to work with us to layout an appropriate relationship between the Reps and Distributors. The New England Rep is the former vice-president of Marketing for Thermo Keytek a major US electronics company with the other Rep being based in Illinois with a team of sales engineers.

In summary our advantages are:

1. LOADFLEX is a World’s first

2. No other line of AC/DC Resistive Load Banks are in the global market place

3. Our Loads will be 50% cheaper than electronic Loads

4. Loads can withstand high overloads without damage to the Load

5. Fine incremental steps are achieved without high cost and complexities

6. The loads will not interact in any way with the connected power source

7. All loads can be just “plugged-in” any where in the world with out any type of electrical adaptor.

Whereas OHM’s Loads must be the “Cadillac” of Loads, Standard Loads have to be the “Volkswagen” of Loads, inexpensive and reliable with production oursourced to take advantage of the lowest cost center possible but including ISO production and Safety Approvals thus allowing Standard Loads to obtain a 30 - 50% gross profit margin.

Production of the Loads in an ISO accredited plant together with adherence with our strict Quality Control Program will allow Standard Loads to offer a warranty in the two to three year range, while the industry standard is one year. According to our Rep in Illinois this would be a major selling point due to the design cycle being on average two years, there by giving confidence to the customer that he is covered for the period of his design cycle.

Companies that have purchase Standard Loads include: Underwriters Laboratories (UL), University of Western Ontario, Manitoba Hydro, Burke Products, Control Technology, March Networks and Walgreens, even though these products have yet to be introduced to the marketplace.

The second company to go to market will be TRUPOWER INC. a Power Supply Design Company who’s multi year Research and Development Program has created a revolutionary and world’s first new design called “FLEX TECHNOLOGY”. In its new, advanced products, TRUPOWER has solutions for the problems that confront today’s design engineers and the proprietary technology on which the company was founded has two primary characteristics that put it far ahead of anything else available on today’s market.

1. Low Noise/High Efficiency/Fast Transient Response – TRUPOWER’S new linear power supplies have the efficiency of a “switch-mode” and the ultra-low noise and ultra-fast transient response characteristics of a “linear” power supply.

2. Constant Power Availability – Raises the output current as the voltage falls, yielding a constant maximum available power curve.

CARDFLEX is a power converter module for OEM applications. It is a board level or cabinet mountable power module for powering DC circuits such as computers and telecom boards.

WATTFLEX is a constant power unregulated power supply for end-user applications, both bench-top and rack-mount for applications where tight regulation is not required.

LABFLEX is a burn-in and test power supply for end-user applications providing very low noise and an accurate lab/burn-in supply which allows current to increase as the voltage decreases.

For the product lines of Cardflex and Wattflex proto types have been completed but still to be done is to incorporate Trupower Inc., prepare opening Balance Sheet, organize the Minute Book, finalize the Production Models, finalize the Production Drawings and Parts List, perform all final tests, finalize User Manuals, finalize all documentation required to outsource production and prepare Distributor Product Information Packages.

TRUPOWER will set-up its own engineering laboratory in order to continue to do product concepts, designs, production prototypes, Research and Development, R & D parts inventory, production drawings, production parts lists, etc., all in-house. In order to maintain costs on its R & D to date, TRUPOWER has been utilizing the lab resources of a closely allied electronics company and will still have these resources available to it after establishing its own lab and corporate office.

The corporate offices of TRUPOWER will oversee all global marketing activities, public company activities, accounting and financial statements, government reports, legal issues, document control, sub-contracting arrangements, etc.

Production of TRUPOWER’S products will be outsource to a co-operative partner whose manufacturing facilities have ISO quality assurance programs and world safety approvals such as CSA, UL, VDE, etc.

The Company’s products were well received in response to a limited survey of North American distributors with fifty-three (53) Distributors wanting our Product Information as soon as it is available. Thirty-seven (37) United States Distributors and sixteen (16) Canadian Distributors. In North America alone there are an additional 550 distributors and an additional 500 foreign distributors still to be contacted.

For all product development we have access to Celestica’s complete former Power Systems Development team which consists of an independent consulting team of ten seasoned professional engineers each of whom have 15 to 20 years experience in the area of electronics, design, software and Power Supply design. 

The third company to go to market will be EAP Power Wirewound Resistors. The entry point into the American market (which is five billion dollars (USD) per year) is the pricing of these Resistors and the fact that we will be able to “turn-around” custom resistance values in one to three weeks, at our standard pricing. Our Resistors will sell for about $12.00USD each while the current American made Resistor is $24.00USD and up. Most U.S. Resistor companies do not produce Custom values and the few that do, charge a premium price and long lead times above their norm of up to sixteen weeks. We can also put the customers own markings on the Resistors at no extra charge which is a service many larger U.S. companies require. 

This line of Resistors are Power Wire Wound (PWW) and are fixed, adjustable and non-inductive with 1% and 5% tolerances, at 25Watt, 50Watt, 100Watt and 225Watt. We have already received a NAFTA number for Resistors so that they can be shipped duty free in to the United States.

The fourth company to go the market will be the BOXFLEX Chassis Line. OHM developed this Chassis Line when we could not find a suitable Chassis in the market for our Custom Loads. One of OHM’s customers was so impressed with the quality of the Chassis when they received their Custom Load that they have started purchasing the Chassises for their in-house requirements. This company is Canada’s largest military supplier.

This Chassis Line has collapsible sides which makes it user friendly and it will have a substantial application in research and development, home hobbyist market, lab environment and companies doing small to medium size production runs. Many of the market segments of Standard Loads will be applicable to BOXFLEX. This is a rugged bench-top/rack-mount Chassis Line with nine standard chassis sizes from 1U to 12U. It is well suited for high power applications where forced air-cooling is required as they come with standard fan holes which can be reduced or closed off with the use of optional fan hole covers. All chassis are EIA 19” rack mountable and are made of high quality 14 – 18 gauge steel construction with 1/16" to 1/8" aluminum front/back panels. The base has 0.187" holes on a 1/2" grid for mounting components and two types of covers, high and low ventilation.

A Kit System has been developed to accompany the Chassis Line which includes fan covers, rubber feet, handles, fan switch, indicator lamp, fuse holder, fuse, IEC connector, AC cord, fans, fan guards and hardware.

With the addition of an Engraving machine we will be in a position to offer fully engraved plates to the customers exact specifications. The combination of a Kit System and engraved panels would be unique to the market place and be a world’s first. It would allow our customers a one stop economical sourcing solution to their chassis requirements without the currently required costly and timely parts sourcing.

CONCLUSION

The primary market for all of our companies is the military/defense contractors which is a $1 trillion USD global market place. Military applications include:

• Testing of electrical/electronic systems in submarines, aircraft carriers, tanks, weapon systems, fighter aircraft, etc.

• Power Supply testing

• Aircraft Inverters

• Aircraft Lighting

• Aircraft Panel Lighting

• Runway Lighting

• Aircraft Power Testing

• New Product Burn-in

• Quality Testing

• Repair and Overhaul Testing

• Regular Maintenance Testing

Our secondary market is the equally large commercial global marketplace including all electronics/electrical corporations. All four companies have in fact a very diversified industry sector customer base to draw upon. To-date a total of 130 different market segments have been identified that our products can be sold to. This means that we are not dependent on just one industry segment for sales, so if there is a down turn in one segment, such as telecommunications, we still have 129 other industry segments to sell to. This base represents industry sales in the United States in the hundreds of billions (USD) of dollars per annum and growing.