MAGNETIC OXYGEN CONCENTRATOR AND ELECTROSTATIC FILTER

The "Sharper Image" catalog has recently featured a line of electrostatic air filter fans, which ionize air across high voltage plates. This causes dust particles to become charged and "ground" themselves as well, resulting in two great benefits. First, clean air without a great need to replace filters, and second, the air itself has been shown to be more relaxing to breathe. Negatively charged air is similar to air by a lake or fountain.

This product has been slowly accumulating popularity, with over twenty years of safe use in homes and businesses throughout the United States. Can it be improved?

What if it were combined with a portable oxygen concentrator?

"Portable oxygen concentrators" are very large medical machines used for people with breathing conditions, so the emphasis is on "portable" for the device we plan to market. Also, the "medical" oxygen created has been "scheduled" as a drug, so that oxygen of 90% purity is impractical to regulate or market. The portable oxygen concentrator we have in mind will approximately triple the oxygen content found in ordinary air, while "scrubbing" and "ionizing" it electrostatically.

Do you know how popular the electrostatic air freshener is?

It was on one of the first pages in the Sharper Image catalog.

If only 20,000 of the $350 units can be sold, and 20,000 of a lesser volume $200 model, with $80 profit margin and $60 profit margin, respectively, an investment of $2,600,000 will yield approximately $2,800,000, or an ROI of 223%, before possible equity considerations.

40,000 is not many units. What is the projected market?

Where is there smog?

The majority of the 300 million people in the United States live in urban areas. If only the 3,000,000 people in the United States who read the "Sharper Image" catalog, or a well-positioned advertizement in the Robb Report follow through in the amount of 1% response -- sales of 30,000 units will well exceed breakeven (approximately 20,000).

What about product liability issues? What about other gases?

The unit is constructed to prevent the concentration of indoor pollutants, primarily carbon dioxide. Carbon monoxide is lighter-than-air and tends to be concentrated along ceilings: warnings discouraging bunk bed sleeping can call attention to this. Comparable warnings to those used for wood or coal stoves might be useful, or a carbon monoxide monitor could be built-into the unit. The risk exposure of an appliance manufacturer is going to be greater than for software businesses. Abuse of the unit by industrial users will hopefully be thwarted by targetting home use, and proprietary, marketing and legal measures.

Much depends on the patentability of the investment. It is not feasible to patent every invention, and this invention may not be pursued if it does not attract capital. If it fails to become patented or patentable, the owners of the Company have agreed to absorb the actual application fees associated with the patent, and the first $10,000 of legal costs. Initial research into this design of air purifier show that it has not been patented at this time. This does not allow for international filings or fees. Targetted areas of urban concentration, such as Japan, and other countries, could be expected to yield twice the sales or more of the United States market.

If sales in the second year exceed 100,000 units, the valuation of the Company might fairly exceed $20,000,000 on the $2,600,000 investment for an ROI of 769% by the most conservative measure.

This product aims to reduce pollution and improve the well-being of urban dwellers while saner forms of transportation and energy are developed.