Investor Information

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Business Model

The system is leased to homeowners who choose independence from a centralized or public system. The advantage to lessees is a secure, on-site source of power and water. No other electric power or water source is necessary.

 

Southwest Water & Electric Energy Powers (SWEEP) provides initial installation, charging a one time installation fee, and maintenance through monthly lease payments, much like current cell phone and satellite television programs. Additionally, a solar option will become available which will further reduce the operational costs of the unit.

Marketing and Distribution Summary

SWEEP performs with marketing and distribution strategies that are similar to start up service providers such as cable, satellite and cell phones.

 

Systems are leased to customers with an initial installation fee. There is a minimal service charge for ongoing service, upgrades and maintenance.

 

Initially the system will be marketed exclusively to affluent Americans to address start-up supply and demand issues. Our target is to sign lease contracts with 10,000 Americans in upper class areas. Word of mouth will sell lease agreements at a rate that SWEEP can accommodate for the first year.

 

During the next two to four years, SWEEP will secure and expand into efficient and effective assembly plants to support escalated distribution. SWEEP will target a broader market, with several operating beta sites from which to leverage lease sales. Ultimately SWEEP will expand based on the Independence Home System will be the only way for families to be safe and secure in today’s unsure environment. Without this system we are vulnerable to loss of electric power and/or loss or contamination of water. See "mock" brochure.

 

SWEEP will leverage market research and sales and marketing strategies used by other businesses that have been successful using this model, including utilizing the American government’s Patriot Act for key motivators.

Financial Summary

SWEEP forecasts a very rapid, aggressive growth based on interest to date from several distributors, as well as letters of commitment. Revenues are expected from the first month of assembly, with profits beginning immediately. Net profits are expected to be substantial due to the low production costs associated with the new technology. 

 

A complete Financial Plan will be developed as part of the SWEEP Business Plan. Below are indicative startup numbers, based on the initial 10,000 unit target. As quantities increase and facilities are developed, SWEEP costs will be greatly reduced.

 
  System Assembly Cost:
    $2,500   generator
    $2,500   chiller/water maker
    $2,200   batteries and electronics package
    $3,000   assembly and plant overheads
    $2,300   installation by HVAC contractors
    $12,500   SWEEP Cost
         
  Customer Lease Revenue:
    $20,000   installation
    $1,800   monthly lease revenue (150 * 12 months)
    $21,800   first year revenues
         
  Five-Year Profit Forecast
    $29,000   installation and monthly lease
    X 10000   units
    $290M   total revenue
    $125M   cost
    $165M   profit from initial first year leases


This financial model, using least efficient, worse-case scenario, provides a healthy margin on 10,000 units in the first year, with all assets belonging to SWEEP and a passive income of $1,800 per year ($9,000 for first five years). First year investments will produce $165M profit in five years. Each year’s profits will grow with larger production quantities and lease sales.

 

Increased revenue will be generated through leasing the Solar Powered Unit (when this model is available) at an additional $10,000 installation fee. This unit includes the Solar Collector, 4 to 6 Heat Storage Units and the hardware to interface with the Independence Home System.  California, a $19,000 rebate is available to cover the cost of the solar unit. This unit will provide a 100% profit margin.

Current Position

We are in the process of securing funding to install our system at a pilot site to demonstrate the system operation using each type of fuel. The site will have an ongoing use as a sales and marketing tool for major housing developers and to test new upgrades.

 


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