| Rodi Power Systems, Inc. | |||
| Proposed Ticker: | RODI | 7503 South 228th Street | |
| Exchange: | NASDAQ-National Market | Kent, WA 98032 | |
| Industry: | Manufacturing (SIC Code 3519) | (253) 850-1490 | |
| Type of Shares: | Common Shares | Filing Date: | 6/30/97 | |
| U.S. Shares Filed: | 5,000,000 | Filing Price: | $4.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $20,000,000 | |
| Primary Shares: | 5,000,000 | Expenses: | $800,000 | |
| Secondary Shares: | 0 | Shares Out After: | 17,673,085 |
| Manager | Tier | Phone |
| Intrepid Securities, Inc. | Lead Manager |
| Issuer's Law Firm: | Prindle, Decker & Amaro, LLP |
| Bank's Law Firm: | Morse, Rick |
| Auditor: | Walsh, Kenneth, E. |
| Registrar/Transfer Agent: | U. S. Stock Transfer Corporation |
Dollar amounts in U.S. millions except for per share data | |||||
| 4 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 4/30/97 | 4/30/96 | 4/30/97 | ||
| Revenue: | $0.00 | $0.07 | $0.00 | Assets: | $0.23 |
| Net Income: | -$0.85 | -$0.25 | -$0.31 | Curr Assets: | |
| EPS: | -$0.07 | -$0.02 | -$0.03 | Liabilities: | $0.43 |
| Prior EPS: | -$0.10 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | -$0.20 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a development stage company which is engaged in the design and development of the company's initial product, the HT1-450 diesel engine. The HT1-450, which has been under development since 1993, is a V-4 cylinder rod-crank trubo diesel engine designed to generate 300 to 500 horsepower for use in Class 8 heavy duty trucks, boats and stationary power applications. If development of the HT1-450 is successfully competed, the company intends to manufacture, market and sell the HT1-450 engine and to develop, commercialize, and sell other high horsepower engines utilizing this engine design for trucks, boats and stationary power applications. The company has also recently commenced distribution of a third party's engines to a newly formed joint venture, Alternate Power Equipment, Inc. The company is also developing the natural gas fueled HT2-300G, which is designed to use the conventional four-stroke engine cycle with spark ignition while retaining most of the other innovations under development on the HT1-450. |
| Competition |
| The diesel and natural gas engine market is extremely competitive. The company expects competition in the diesel and natural gas engine market to continue, if not intensify, as the demand for more efficient and reliable engines increases and new technologies and systems are developed to deliver such engines ina cost-effective and convenient manner. The primary suppliers of heavy duty diesel engines and natural gas engines are major national businesses with long established operating histories and significant market shares. These companies possess greater technical resources and market recognition than the company, and have management, financial and other resources not available to the company. Existing engines are likely to be perceived by many customers as superior or more reliable than any new product until it has been in the marketplace for a period of time. There is no assurance that the company will be able to compete effectively with these companies. |
| Business Plan |
| The company's marketing strategy is based on customer demand "pull through" with the truck and generator set manufacturers. The company has been working directly with selected customers and a truck and generator set manufacturer to integrate their requirements into the basic engine design. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to complete the development of the HT1-450 diesel and HT2-300G natural gas engines and initiate production. |
| Name of Shareholder | % Owned Before | % Owned After |
| Byron R. Spain | 36.80% | 34.20% |
| Donavan E. Garman | 8.70% | 8.00% |
| Steven E. Garman | 6.70% | 6.20% |
| Gwendolyn S. Spain | 5.70% | 5.30% |
| Officer Name | Title | Age |
| Byron R. Spain | Chairman of the Board/Chief Executive Officer | 58 |
| Marilyn D. Mays | Director | 57 |
| David Teo | Director | 47 |
| Donavan E. Garman | Director and President | 62 |
| Steven E. Garman | Director and Vice President--Customer Systems | 40 |
| Gwendolyn S. Spain | Secretary and Vice President of Investor Relations | 57 |
| Winston D. Bennett | Treasurer and Chief Financial Officer | 56 |