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Company Updates |
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July 7, 2009 |
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Previous Update: |
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Rotary Engine Technologies, Inc., filed its patent application with the U.S. Patent and Trademark Office and has Patent Pending status for its 407cc rotary engine. The RETI patent will cover its new rotor housing and barrel valve designs. Its state-of-the-art electronic fuel management and ignition system provides a major enhancement in fuel efficiency and reduction in harmful exhaust emissions without the use of a catalytic converter. We believe this to be a significant achievement. Our rotary engine also includes newly designed ceramic apex seals which promote greater engine longevity. All of this technology can be applied to our larger rotary engines still in development. The RETI 407cc base engine weighs 53 lbs and produces 32 HP with high torque at lower RPM. We have an engine crated for shipment to the certified independent laboratory for EPA and CARB testing as soon as we receive clearance from EPA to start the test procedures. We have established through our own in-house testing and with outside consultants that our engine exhaust emissions are well within the limitations required to pass these tests. Of the many potential applications such as generators and compressors, the initial use for the 407cc rotary will be to power our own XBoard; a motorized surfboard produced by Aqua Xtremes, Inc. Other marine applications include tunnel boats, pontoon boats and motorized kayaks. We are currently negotiating with manufacturing companies to produce the XBoard and engines. While waiting for EPA and CARB certifications, RETI and Aqua Xtremes plan to pursue international sales of engines and XBoards. To see the full press release, click here
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Scott Webber |
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November 2, 2008 |
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The History: The past C.E.O. of Encompass Holdings, Arthur Robins (Robins), had a long history with Sandy Leavitt of Leavitt Industries that included several business relationships and friendship for many years prior to Robins becoming C.E.O. of Encompass Holdings. According to Sandy Leavitt of Leavitt Industries, he and his company is either a partner with Sumeeko (a Chinese manufacturer of fasteners) or their exclusive U.S. or possibly worldwide sales distributor. Even though Sumeeko had no known experience in manufacturing engines or watercraft, Robins attempted to give Sumeeko worldwide manufacturing rights to Encompass products, allow a person chosen by Sumeeko on the Encompass Board of Directors and issue Sumeeko a large number of Encompass shares. In addition, he attempted to give Leavitt a consulting contract as sales manager for all Encompass products. As the above stated conflict was being played out, Encompass was receiving samples of various items from Sumeeko for use in producing our XBoard and 407cc rotary engine. Virtually every item was rejected due to poor quality. Despite the quality issues and conflict of interest, Sumeeko was about to be given sensitive technological information and proprietary drawings of engine parts still in development prior to Encompass obtaining patent protection. Numerous attempts were made to mitigate the situation in order to protect our intellectual property and return our attention to product development. When it became clear that no resolution was possible, a new C.E.O. and “Board of Directors” were elected at the July 2007 Annual Shareholders Meeting. Needless to say, the new Encompass Directors felt the Sumeeko/Leavitt situation was not only poor decision making but also a glaring conflict of interest that, if implemented, would have a disastrous effect for the future of Encompass and its shareholders. About October 2007, we were notified that a website had been brought online that contained pictures of our Aqua Xtremes XBoard claiming they’d have boards available to sell in the near future. The site stated that the individuals involved with this operation were Sandy Leavitt and Neil Roth. Neil Roth was a past executive of Tahiti Petey Inc., a company that had been negotiating with Art Robins in order to have Encompass Holdings manufacture a Tahiti Petey private label XBoard. Once notified of this website, Scott Webber, the new C.E.O. of Encompass contacted Peter Ortmann, the originator of the Tahiti Petey brand, asking for an explanation. Mr. Ortmann claimed he had no knowledge of the new website and that Neil Roth was no longer affiliated with Tahiti Petey. Shortly thereafter, the website was removed from the internet. In mid December 2007, Encompass was sued by Sumeeko and Leavitt for the above stated amounts. Encompass countered with some very serious claims of its own that we intended to pursue during trial. The cases were to go to trial in early 2009.
Around October 20, 2008
Encompass was notified by our attorney that both Sumeeko and Leavitt
no longer wanted to pursue the matter and were asking to have the cases
dismissed.
Encompass agreed to accept the offer to dismiss with prejudice.
Sumeeko and Leavitt have dropped all claims against
Encompass and
Aqua Xtremes
with
Encompass retaining all rights to litigate any other matters with
either party if needed. |
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Why report these matters on our company website?
We appreciate the many calls and emails with questions
about our situation or progress. While we would like to address some of
these issues publicly, it is not always permitted while these actions were
still in litigation. We will report as much as we can as soon as possible
so that everyone has a clear understanding of where we are and where we
intend to go. Maybe it’s clearer now why some company actions took place.
Our intent has always been to develop and protect company technology so all
shareholders see a positive return on their investment. |
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Encompass SEC Filings and NACIO Systems: Encompass has been forced to trade on the pink sheets because of its delinquent public filings. Encompass has not been able to file its reports because we have been unable to get financial information from one of our wholly owned subsidiaries; NACIO Systems. On January 18, 2008, the NACIO Directors, Carey Daly and Randall Lanham filed for bankruptcy protection without notifying or getting the consent of the Encompass Board of Directors. Despite numerous requests from Encompass and the Encompass corporate attorney, NACIO has refused to provide any financial information to Encompass since early 2007. The Bankruptcy Court has required NACIO to provide the court with previous financial statements and monthly “Current Operating Reports”. Several meetings have taken place with our company C.P.A. Tim Steers in Portland, Oregon that have enabled us to file our 2007 Annual Report. More meetings are scheduled in order to use the court ordered NACIO financials to bring all reports up to date.
Contrary to the NACIO Systems’ website,
Encompass has never relinquished its 100% ownership position in
NACIO Systems. Repeat: No legal change in NACIO ownership has
ever taken place. A full report on NACIO Systems will be posted on
our website as soon as possible. |
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Summation: There is no question that over the past few years, Encompass has experienced some roadblocks to its progress. Too many negative, ineffectual, time-consuming, costly and sometimes downright dishonest actions taken by insiders and outsiders alike have caused numerous delays in our development and productivity. The current members of the Encompass “Board of Directors” and Officers are doing everything possible to clean up our company and advance the technology that all of us have put our time, money and hearts into. The NACIO situation is one of the few remaining problems we face. As we clear ourselves from these negative actions, we can make this company the productive entity we all strive for. We should also have significant news on our rotary engine development very soon. |
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Scott Webber |
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© 2008, Encompass Holdings, Inc. All rights reserved
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