Investor FAQ’s (Frequently Asked Questions)
1. How do I purchase stocks?
You can purchase stocks simply by printing out the current investment certificate, filling it out and mailing it to the address on the certificate. Or you can call an investment in.
2. Why is the corporation so young? The corporation Fluxcell, Inc. was incorporated on July 14, 2014 and formed around the Fluxcell intellectual property asset. The Fluxcell was placed in the U.S. Patent and Trademark Office on September 14, 2011, more than 3 years ago and according to a predetermined plan to foster maturity it is now being capitalized on. What is most important is not the length of the existence of the corporation but the value of its assets. By it being such a young corporation investors have confidence that accumulated liability is zero as well as zero debt. This along with the business model creates a stronger corporation. So from a liability standpoint being a young corporation is a good thing.
3. What is the difference between an IPO and a DPO and which one is this? An IPO (Initial Public Offering) is a stock offer made to the public via an investment bank underwriter. Usually the stocks acquired before an IPO are not available to the everyday investor but only to company employees and investors who make relatively large investments. The IPO serves as a way for earlier insider investors to cash out while at the same time the company raises more capital. A DPO (Direct Public Offering) is almost the same as an IPO except the stock is purchased directly from the company and is available to the public. Thus in a DPO the public becomes the earlier investors and 100% of the capital goes to the company instead of early investors. This is one reason why the stock for Fluxcell, Inc. is at $.10 per share instead of the typical $15 to $30 per share because you are not buying stock from previous investors. This offering can be seen as a double public offering in that the stock is offered publicly at a low stock price and then will be offered again on the public stock markets at a higher price so that the earlier investors get the greatest and quickest return.
Because of the fluctuating nature of the stock market, greater investor value is created when stock is issued directly by a company at a low price and then traded primarily by the early investors as opposed to early investors and the company seeking to sell stock at the same time. Such a scenario will only drag and hold down a stock price and prolong any potential gains. A company raising capital and investors trying to cash out creates a conflict of interests in some respects. An example would be investors trying to sell stock at say $1.00, someone buys at $1.05 and the company selling at say 20 cents. This scenario would prevent early investors from selling at $1.05 and simultaneously would create losses for other investors buying stock at $1.05. The main purpose of listing on the stock market is to allow the stock to keep going up for investors and Fluxcell, Inc.’s business model concretely supports this $.05 per share starting price to accomplish this goal.
4. When can I trade the shares that I have purchased?
The target date for the shares to be listed on the OTC Pink Sheets Market (penny stock market) is late Summer/Fall 2015. The target listing price will be $5 but may be higher depending on several factors. The goal is to price the stock so that it has upside momentum but the momentum is slower rather than faster (i.e. a pop). A higher price will coexist with with public awareness advertising of the company, the technology and the stock so that stock activity levels can be at their highest. At $5 per share this gives investors who purchased at 10 cents per share a 50x return. Once listed all stocks will be transferred to a broker(s) and there you will be able to sell your stocks in any quantity whenever you choose to at any time. Also the goal is to maximize investor returns early on so we may set a bottom stock price on the market at $5 per share and investors for a period of time will cash out through the corporation at a minimum $5 per share until the market builds up the price (i.e. $20 to $30 per share) to where it is unlikely to decrease.
5. When will the Fluxcell modules be ready?
As of Spring 2015 the Electron Capacitor Reactor technology has been fully engineered. This technology is the core technology of the Fluxcell and storage and is now in the manufacturing phase. The target date for the release of the capacitors is late 2015. The target date for the first solar modules to be installed is early to mid 2016, however home and business owners can lock in queuing contracts before then. The modules can be used anywhere electricity is needed whether for homes, quick charging electric cars on the go, commercial and manufacturing buildings, space, marine and more.
6. Are the modules sold to the energy user?
The modules are not sold to the energy user (homeowner, business, etc.) but the energy user obtains an Energy Use License and pays only for the energy they consume. The only upfront out of pocket cost is for the energy storage unit shell, the touch screen control unit and the module’s power pole because this becomes part of the property and is considered infrastructure. This too can also be financed resulting in zero out of pocket costs to the energy user.
7. How much will electricity cost?
The cost of electricity is guaranteed to be less than what is currently being paid by the energy user. The U.S. national average is 12 cents per kilowatt-hour. Because the electricity price on the module is controlled primarily by intellectual property instead of physical power plants, fuel, power poles, transformers, wires, liability, labor and natural disasters all electricity and fuel prices will be discounted by between 5% and 15%. This discount will depend on the financing rate, length of contract and electricity usage. Thus if an energy user’s typical electric bill is $250 per month and a discount of 10% is applied the revenue to the Company is $225 per month. The savings to the energy user is $300 per year.
8. What are the incentives for energy users to have a module installed on their property?
The main incentive is monetary savings. Depending on the discount, financing structure and electricity usage of the home a homeowner can save anywhere from $100 to over $1000 per year. The other incentives are that the energy user is being green by having zero carbon footprint, has the ability to be billed, prepay or anonymous pay for electricity, can choose to be 50% or 100% grid free and the last incentive is that their power will not be *disconnected. The increase in distributed energy (energy which is produced at the site of usage) is inevitable because of the large infrastructure costs of grid energy and petro fuel logistics. Another feature being studied is the plateau price feature which will allow a home to use excess electricity beyond they typical consumption of the home at a lower cost. Thus if their current billing is at a discounted 9 cents per kilowatt hour and reaches the plateau the plateau price may be something like 5 cents per kilowatt hour which will be dependent upon the excess usage amount.
9. Who will manufacture the modules?
The Company’s business model is to operate as efficiently as possible to ensure short and long term consistent profits. The modules will be manufactured by third party manufacturers starting in Georgia and moving nationwide. The goal is to implement an American manufacturing program and distribute globally. The ultimate goal is to produce American made energy. Since these manufacturers are already set up for production, minimum investment into infrastructure is required. As of Spring 2015 Fluxcell will be developing a manufacturing arm so as to guarantee that all processes are as efficient as possible.
10. When does Fluxcell, Inc. expect a profit?
A profit is expected on the first and every module installation. This is possible because the infrastructure setup uses third party manufacturers, distributors, retailer/marketers and servicers. The Company will purchase the modules from the manufacturers using a securitization process. This process essentially converts the cost of the module into a loan and a portion of the monthly electric revenue services this loan and its interest. If $25 to $75 of each monthly revenue amount is used to service the loan then the loan length will vary based on the manufacturing cost of the modules. The Company’s system will allow both individuals and financial institutions to purchase these loans in whole or by the fraction and generate an APY and/or a fixed percentage yield. Another benefit is that property owners do not have to sign 25 year contracts as they must do with current solar energy panels. The contracts for the modules will range from 2 to 3 years depending on electricity usage and discounts. The contracts are primarily for the different manufacturers, distributors and retail marketers as Fluxcell, Inc. will derive revenue regardless of the manufacturer.
11. If the Fluxcell is a solar energy product, how does it differ from other solar energy and energy products?
The main difference between the Fluxcell and other solar panels is size and price and environmental cleanliness. A 3,000 watt array of solar cells contains roughly 750 solar cells in about 13 solar panels covering about 333 square feet. The panels include metal, glass, wires, weather seals, installation material and silicon solar cells. All of these materials represent fixed costs. There are also large quantities of undesirable byproducts from all these materials and up to 10% cell breakage at the factory because of the fragility of solar cells. The Fluxcell is an 10 x 10 x 12 inch cube. Without doing any math we can easily see that a product with such a greater area will use more energy and more materials in its manufacturing and thus will cost more to the homeowner. At a minimum when looking at power density (the amount of power within an area), the Fluxcell is 180 times more powerful than a regular 6 x 6 inch solar cell.
12. Is energy a safe investment?
Energy will for the foreseeable future be a necessity to the world. All energy forms can be replaced by electricity such as petro fuel cars being replaced by electric cars and gas stoves with electric/induction stoves. There are 12 sources of energy on earth all doing the same thing, moving electrons through a wire. These energy sources are nuclear, natural gas, coal, oil, solar thermal, solar, wind, wood, geothermal, hydroelectric, biomass, biofuel. It is self evident that a single technology that can do the same thing in a cleaner, cheaper and more compact way will be the go to technology of the world in which other energy sources cannot compete. The Fluxcell is designed to meet and exceed these all of these specifications.
13. How high can the stock price go?
There is no guarantee of a stock price rising to high levels but based on the fundamentals of the stock market and a comparison to other companies on the market, a P/E ratio of 20, at least 926,000 modules being installed (or module contracts being signed) the stock can reach $200. For a benchmark on how high a stock can go you may look at Berkshire Hathaway’s stock which investors purchased at $290 per share back in 1980 and as of September 2014 was at $206,700 (yes two hundred and six thousand dollars) per share. While this represents the extreme it goes to show that investor demand and future perception can drive a stock price to any level. The global market for energy at about 545 quadrillion btu’s at 12 cents per kilowatt-hour is $19 trillion per year and if everyone was brought to today’s U.S. energy consumption level it would be almost $100 trillion per year. The stocks that the investor purchases will follow Fluxcell, Inc.’s global energy growth trajectory.
14. Can I loose money in this investment?
Fluxcell, Inc. issues PPS’s (principal protected shares) for Investors who purchase shares directly from the corporation. Such shares are only available during this Direct Public Offering phase. As all companies are subject to some type of liability in their daily operations, Fluxcell, Inc. minimizes this liability through its distributed business model format. The corporation is backed by Coalesce Point Trust and the Investor Asset IP Trust which issued the technology license to the corporation. If for some reason Fluxcell, Inc. is faced with an event that severely affects operations to the point where a solution does not exist or is infeasible then Trusts will take over operations and start the process of canceling old shares and issuing new shares to Investors in a new corporation with the same technology. This is hoped to be an unlikely outcome but because problems are a reality in any company this fail safe mechanism has been put in place. The base goals are to protect the principal amount of the investment and to preserve investor value. The technology and assets are what is important as corporations are just legal entities that can move in and out of existence.
Fluxcell, Inc. set the public offering stock price at 5 cents per share so that the overall stock price trajectory is up. Fluxcell has real technology which as of Spring 2015 has completed engineering. In addition to this the Fluxcell has aspect tested models backed by real measurements and industry and scientific data and validated research. The fact is that nothing is new here. Fluxcell didn’t invent the computer, or capacitors (although the Electron Capacitor Reacctor’s are a new technology) or solar cells of which we all know works but has developed an overlooked workaround (i.e. a shortcut) to achieving greater energy output in a smaller package. This technology works as stated. The business model is one which conserves investor capital in that less than 10% of the capitalization budget is allocated toward developing the market ready module and mass production specs.
In the investment sheet on the home page shows how even a $500 investment has the potential to generate $1 million in value. When you compare the risk of investing in another company at $50 per share and getting only ten shares and then hoping it goes to $100 per share so that you can get a 100% yield or getting 5,000 10 cent shares moving to 20 cents per share you will see that getting a 100% return is a lot less risky and quicker with the Fluxcell. Also it must be duly noted that it takes 15 years to get a 100% return at 10% APY (every year) when inflation, fund fees and capital gains taxes are factored in.
15. Other than generating a profit for Investors, how does an investment into Fluxcell, Inc. help people?
By investing in the Fluxcell investors contribute to the stability of energy prices and create unlimited “ample” energy supplies.
Investors contribute to the reduction of C02 (Carbon Dioxide) which scientists say contributes to global warming.
Investors contribute to reducing hunger, malnutrition, disease and war which all have their roots in a lack of energy supplies.
In totality Investors (primarily the investors who invest at this stage) contribute to creating a better world.