Comments on Paul Story on Steorn: Steorn - A Non-Update

Paul,My comments of 19 November seem to have sudde...

2007-12-30T06:50:00.000Z

Paul,

My comments of 19 November seem to have suddenly appeared on your site, in duplicate no less.

For anyone who might be interested, there are several more recent posts on our MPI site: magneticpowerinc.com

These include Company Goals for 2008, which may answer some of the questions asked just before my comments suddenly stopped appearing here.

Best wishes to all for the New Year!

I predict that 2008 will include surprising, practical, solutions for some of the planetary energy problems that have grown worse during 2007.

Paul,Would you be willing to share a review of 200...

2007-12-27T15:06:00.000Z

Paul,
Would you be willing to share a review of 2007? Or maybe some predictions for 2008? We'd love an update what's going on.

Thanks,
Overconfident

Throw us a bone, Paul! What's been going on the la...

2007-12-09T19:11:00.000Z

Throw us a bone, Paul! What's been going on the last couple of months?

Paul,I seen several people claim the info in this ...

2007-12-08T16:19:00.000Z

Paul,

I seen several people claim the info in this article

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=news-qqqid=28711-qqqx=1.asp

as evidence that no Orbo exists. It doesn't read that way to me. Do they have access to other documents that are worded differently? The quote in the article is worded correctly if you assume Steorn has what they claim. Why would you make a definitive statement either direction?

Mark haven't "Bridgewalk" and "Brooklyn Project" b...

2007-11-20T11:10:00.000Z

Mark haven't "Bridgewalk" and "Brooklyn Project" been on your web site for at least several years? How is it that years down the road: you say they remain embryionic, have yet to define their basic goals, and have yet to attempt to fund them? What actual organizing have you done in all these years?

If you do establish these organizations to produce films, then for what audience and what specific purpose? Are you attempting to exert political influence on government? Influence corporate policies? Get consumers to think "new energy"? How would any of those options produce any improvement for society?

Sure MPI uses wire. You can buy all you want from established manufacturers today. Are saying that MPI is dependent on RTS delivering superconducting wire? Because from what you have written, RTS is nowhere near interposers, much less wire. The idea that MPI needs wire that only RTS might produce if RTS succeeds in its R&D sounds like a radical revelation that has not been shared with MPI investors.

Based on what is on your web site, RTS is no closer to wire today than it was four years ago. One can reasonably infer from this that RTS has a high likelihood of never producing superconducting wire. That consequence wipes out your basis for a buy-out of RTS. If RTS is not near wire then what is the specific benefit that investment in RTS provides to MPI?

I don't care what unseen potential investors may have suggested. I am interested in the actual business case for the transactions you propose: dissolving RTS into MPI, and later precipitating MPI out.

If you can't articulate cogent reasons that actually make sense here, I don't see how you can explain your position to investors.

(Paul this replaces my earlier version as it reads...

2007-11-19T23:12:00.000Z

(Paul this replaces my earlier version as it reads a bit better)

Bridgewalk and the Brooklyn Project, are embryonic. A potential project director has expressed interest. As the article states, Bridgewalk will begin with a film or video and perhaps potentially eventuate in a film or video series. No funding has yet been sought or received for this program. It may be located elsewhere in the USA.

MPI uses wire and RTS Ultraconductors are potentially an important replacement for copper wire in MPI products. Funding for materials R&D is always difficult in this country. MPI continues to attract growing investment interest and several potential investors have suggested consolidation. It appears to be a logical move to those most familiar with the potential. Once wire is achieved, RTS has excellent prospects and acquisition by a large firm appears to be a realistic possibility at that point. Several major firms appear to be Joint Venture and/or license prospects in the interim.

Bridgewalk and the Brooklyn Project, are, as state...

2007-11-19T20:48:00.000Z

Bridgewalk and the Brooklyn Project, are, as stated in the website Article, embryonic. A potential project director has expressed interest. As the Article states, it will begin with a film or video and potentially eventual in a film or video series. No funding has yet been sought or received for this program. It may be located elsewhere in the USA.

MPI uses wire and RTS Ultraconductors are potentially an important replacement for copper wire in MPI products. Funding for materials R&D is always difficult in this country. MPI continues to attract growing investment interest and several potential investors have suggested consolidation. It appears to be a logical move to those most familiar with the potential. Once wire is achieved, RTS has excellent prospects and acquisition by a large firm appears to the become a realistic prospect. Several msjor firms appear to be Joint Venture and/or license prospects in the interim.

Mark this just gets stranger and stranger. Despit...

2007-11-19T16:09:00.000Z

Mark this just gets stranger and stranger. Despite so many words, I still have no idea what this "Bridgewalk", or "Brooklyn Project" is supposed to achieve or how they are supposed to get whereever it is they are intend to go. What specific activities and results are meant by "encourage worldwide support..."? Are you trying to create a charitable foundation that would provide financing to operations like MPI and RTS? Or are you proposing some sort of think tank that would produce position papers? What would your role be in these organizations, who else would be in them, and what would their roles be?

As to RTS, the very reasons you offer for dissolving RTS into MPI would seem to be the exact reasons many seasoned business people would recommend not to.

RTS and MPI are in distinctly different businesses. RTS materials, and MPI generators.

You represent that RTS faces difficult financial prospects on its own.

You represent that MPI is about to hit it big.

You represent that at some future date it makes sense to sell RTS off.

Whether or not MPI ever goes public, the governance issues remain the same. Expenditures by MPI must be justifiable against the specific business goals of MPI.

If RTS is viewed badly by the markets and is the unrelated business you state, investment by MPI raises questions as to justification. If RTS prospects are not as bleak as you seem to make them out to be, then RTS can attract operational funding without becoming a charity project of MPI.

RTS is a materials firm. Superconductor firms that...

2007-11-19T06:44:00.000Z

RTS is a materials firm. Superconductor firms that have become public companies in the U.S., have a less than wonderful track record. If and when, market conditions and revenues, suggest MPI is ready to become a public company, the Google offering, which pioneered a highly successful approach to an internet auction, thus far appears to be an excellent model. When RTS becomes a Division of MPI, RTS shareholders will be issued MPI stock on a negotiated basis fair to all concerned. RTS may become a potential acquisition candidate for a large firm in the future. MPI stock, once it is publicly traded, should provide liquidity and the potential for growth that would be lacking as a materials subsidiary. MPI supports our staff. (Note - all statements other than statements of historical fact, including without limitation, those with respect to MPI and RTS goals, plans and strategies are forward-looking statements. Actual activities and results may differ materially from those described in forward-looking statements).

AESOP Institute released all energy related work to the commercial affiliates some years ago. The Brooklyn Project is intended to encourage worldwide support for technologies and programs that can rapidly impact the use of fossil fuels and not merely those under development by MPI and RTS. It is also concerned with encouraging exploration of what the late economist Bob Edmonds called “Overfull” employment - as well as programs that provide incentives to enable most individuals to earn sufficient income from diversified investment to pursue work they enjoy.

Mark thanks for establishing that RTS is already a...

2007-11-19T02:06:00.000Z

Mark thanks for establishing that RTS is already a subsidiary of MPI. What specifically would "reintegration" mean? Do you mean to dissolve RTS or just transfer the remaining ownership to MPI? What will this "reintegration" mean to the current non-MPI stakeholders in RTS? Will they be compensated in cash? MPI stock? Lose their stakes?

I am sorry but neither the website nor your response explain what "affilliate" means in tangible terms. As affilliates what does Aesop provide to MPI and RTS, and vice-versa that establishes this affilliation? Is Aesop a marketing organization for MPI and RTS? Which entity pays your salary and Graham's?

The "Brooklyn Project", and "Bridgewalk" descriptions on the web site describe only "Bridgewalk" as leading to the "Brooklyn Project". They do not discuss any specific: objectives, activities, or participants of either. There is only a vague implication that somehow one or both of these projects would support the sorts of things MPI claims to do. Is a goal of these projects to fund MPI activities? If so, why don't you come right out and say as much?

Recent Executive Summaries have been posted on bot...

2007-11-18T14:50:00.000Z

Recent Executive Summaries have been posted on both websites. They provide answers to most of these questions. Neither MPI nor RTS is financially linked to the not-for-profit, AESOP Institute. The AESOP article entitled BRIDGEWALK, on the MPI site, describes the Brooklyn Project; a proposed alternative to the occasional suggestion that another Manhattan Project is necessary, in order to facilitate new energy development.

At this time, both MPI and RTS are privately held, commercial, corporations. MPI controls RTS, as it owns more than half the stock in the subsidiary. Reintegration will eliminate some expense required in order to maintain separate firms. Since the dot.com crash (which dramatically decreased investment in high-tech firms in the USA that are not yet revenue positive) most funds in recent years, have been provided to MPI, which is, of course, focused on energy development.

After five extremely lean years, large investments are currently under discussion to accelerate the development of GENIE generators by MPI, as well as wire composed of polymer Ultraconductors (which conduct electricity at least 100,000 times better than copper, gold or silver).

Mark, thanks but I still don't find answers to my ...

2007-11-18T11:11:00.000Z

Mark, thanks but I still don't find answers to my questions. I want to know what the financial relationship is between these entities, including: investment, property, ownership, and disbursement of expenses and salary.

Affiliate is rather non-specific. As affiliates, what do MPI and RTS do for Aesop, and what does Aesop do for them? How do MPI and RTS compensate Aesop for whatever it is that Aesop does for them and vice-versa?
Does money, property, or other items of value change hands between Aesop and either MPI or RTS?

Are you and Graham employees of MPI, Aesop, RTS? More than one?
Which entity owns which intellectual property? When investors put in money, do they write checks to Aesop? MPI? RTS? Something else? What do they get? Is it ownership in MPI? Ownership in RTS? Ownership in Aesop?

You speak of RTS as having been a subsidiary of MPI and MPI funding RTS. That funding implies an ownership stake in RTS by MPI. Or did MPI just loan or gift RTS money? Later you state that RTS will in the future probably become a division of RTS. If it is already a subsidiary now, how does that make any sense?

MPI was created as the second commercial affiliate...

2007-11-18T08:13:00.000Z

MPI was created as the second commercial affiliate of AESOP Institute, a not-for-profit organization that began in 1973, when the first oil crisis took place and long lines formed at gasoline stations. The energy goal from the beginning was to find a practical alternative to oil. The Institute was from the start also involved with economic research, aimed at reducing unemployment without creating inflationary pressures.

The first commercial affiliate was SunWind Ltd. which created a prototype wind-electric hybrid vehicle known as the Windmobile. It was the cover story in November of 1976 for Popular Science magazine and was also featured on the cover of a popular technical journal in the UK. Windmobiles, designed by the late James Amick, then a Professor of Aeronautical Engineering at the University of Michigan, looked somewhat more like aircraft than cars. The prototype was capable of traveling 42 mph under electric power, but could exceed the then 55 mph legal limit in the U.S., when moderately strong winds crossed the highway. SunWind also evaluated the Tornado Tower, a vertical axis wind turbine that the inventor thought would prove practical for multi-megawatt power production. AESOP Institute received two small ($5,000 USD) grants to build and test the prototype device. The largest wind tunnel on the planet, at NASA Ames, was made available for a week for the project. Both inventions worked, but neither proved commercially practical. Consequently, SunWind wound down operations in 1983.

In 1984, the late Dr. Robert Forward, then a physicist at Hughes Aircraft, published a paper in Physical Review B, suggesting that Zero Point Energy might become a practical source of electricity. Shortly afterwards an inventor approached us with a claim that he believed he could build a magnetic device that might be tapping such energy. Magnetics offered the possibility of vehicles that, unlike the Windmobile, were conventional in appearance. MPI was created and supported his prototype development in a modest way. While the solid-state invention appeared to function, commercialization seemed unlikely, as it could not be readily reproduced. (Incidently, since Steorn admits they do not fully understand why their invention functioned, it is conceivable they may be experiencing similar difficulties).

MPI was incorporated in California in 1987. From then forward, a substantial number of other magnetic devices were evaluated, but until four years ago, none seemed to hold promise for practical production. Most reflected inventor’s delusion, usually a lack of understanding of practical magnetics and the required metrics.

In 1985, we came across a 1982 U.S. Patent issued to Ronald Bourgoin, claiming ambient temperature superconductivity. In 1989, I was invited to address the Global Superconductivity Conference and challenged the audience to try to reproduce the work described in the Patent. A team at the University of Alabama successfully did so, but their work was done on a Department of Defense contract, therefore the results were never published in the open literature. The Report is only available to government contractors.

In 1991, following the end of the Cold War, a Russian team claimed: “Genuine Room Temperature Superconductivity in Oxidized Polypropylene”. We visited Moscow the following year and in 1993 organized a subsidiary, Room Temperature Superconductors Inc. (RTS) to commercialize their discovery.

It was necessary to establish a subsidiary, as some substantial potential investors did not believe it possible for the energy work of the parent firm to eventuate in practical results. Four Department of Defense contracts have been successfully completed on the polymers, which we call Ultraconductors™. In addition to more than one million USD initially provided by MPI, RTS received four million USD as equity investments by Angel investors. RTS has three issued U.S. and several foreign Patents. A very large pending U.S. patent application (195 Claims) is in the process of division into ten more.

Ultraconductors have been independently introduced by Fractal Systems under a US Air Force contract.

Since the energy work of the parent firm is now clearly on a path to commercialization, RTS is expected to become a Division of MPI in the future.

Additional information regarding both firms can be found on the websites: www.magneticpowerinc.com and www.ultraconductors.com

Mark Goldes what are you talking about? Steorn sa...

2007-11-18T02:37:00.000Z

Mark Goldes what are you talking about? Steorn said their technology was "always proven to work". Steorn said their only problem was getting science to take them seriously. Steorn claimed to have product ready to go up for sale just as soon as that mystery jury signs off.

But while you are here, I am keenly interested in how a small but complex organization like yours manages to collect and disburse the money needed to carry on your work. Would you be so kind as to explain the business structure and relationship of your companies and foundations? I am particularly interested in: Which entity collects money from investors, What investors get in return, Which entity pays you and Graham, and Which entity owns the intellectual property you are trying to develop.

As another small firm wrestling with the complex p...

2007-11-17T17:48:00.000Z

As another small firm wrestling with the complex problems of converting a new source of energy using magnetic technology, we can sympathize with Steorn.

We do not believe these systems are violating Conservation of Energy, although to many, they may seem to do so.

Hans Coler demonstrated two solid-state generators in Germany. The first in 1925 and the second, a 6 kW generator, in 1937. He called it a "space-energy receiver". His lab was destroyed by an Allied bomb late in WWII. The invention was confirmed by British Intelligence after the War. However, at the time, there was no comprehension as to the source of the energy. Coler wrote: "These fundamental researches…have made the first real and large breach in the citadel of present scientific belief."

Toyota recently admitted it spends $1 million an hour, 24/7/365 on Research and Development. Their central thrust is a better Lithium based battery. Magnetic systems of the type Steorn and we are developing, will end the need for batteries.

Neither Steorn nor ourselves have the luxury of huge budgets.

However, based on what has been accomplished so far in our own labs , my guess is that Steorn very likely has had some success with what they claim. We wish them and everyone else working with revolutionary energy systems that can reduce the need for fossil and nuclear fuels good fortune.

Oil prices and the latest worrisome words on climate change need breakthrough technology.

Nothing else can meet the need fast enough and with minimum economic dislocation.

Mark Goldes, Chairman & CEO
Magnetic Power Inc.

What's it take for certain people to wake up? How...

2007-11-17T10:49:00.000Z

What's it take for certain people to wake up? How much longer will it be before the die hards acknowledge that Steorn never had what they claimed:

* another three months?
* another six months?
* another year?
* another five years?
* never?

The extended denial of some is simply mind boggling.

@anonymousTo my eye they are all variations on the...

2007-11-12T20:42:00.000Z

@anonymous

To my eye they are all variations on the same theme--a rotor with 'stuff' mounted on it that rotates by a stator that has other 'stuff' that comes into proximity with the rotor 'stuff.' I can think of 5-6 examples from Steorn pictures, not including the Kinetica toy.

Anyway, I think we're pretty much in agreement. All I'm saying is that if its a scam, it is highly malicious. You don't accidentally or delusionally create a whole set of mecanically similar props for your scam without a lot of forethought.

As that other "anonymous" said above, it has been ...

2007-11-12T16:49:00.000Z

As that other "anonymous" said above, it has been a while since you reported anything here.

I'd like to know:
1) Is the SPDC is still alive and well?
2) Has Sean put in an appearance there recently?
3) Is it getting interesting or is it still the same-old same-old?

Thanks,
Overconfident

Hammerthrower, do you know specifically that those...

2007-11-12T02:40:00.000Z

Hammerthrower, do you know specifically that those devices are used for testing over unity or perhaps something else? I don't think you can tell from a single picture exactly what it does without some understanding of what the components are and what they are doing? And what kind of tests are they producing? What is the output? And why not show some of the output at least with the pictures so to give some credibility? Otherwise they are just mechanical eye candy regardless of the motivations of the engineers.

Paul,Ok. An unintentional google image search on ...

2007-11-10T01:13:00.000Z

Paul,

Ok. An unintentional google image search on Steorn brought up several pictures of Steorn test apparatus in view. I've already seen most of them but seeing them all at once reinforced my opinion that these guys must have what they claim. Engineers don't sit around and design sophisticated test apparatus for the express purpose of perpetuating a scam. They look legitimate. It just doesn't fit my life's set of experiences. People don't have the kind of enthusiasm and energy necessary to design and build those types of devices unless there is something to be excited about.

If it is a scam, it's very sophisticated. Their fake 'props' should be nominated for an Oscar.

It's been a long time since you've posted any upda...

2007-11-04T18:29:00.000Z

It's been a long time since you've posted any update. What's the good word?

Whether or not Steorn have a working Orbo, I have ...

2007-10-04T21:38:00.000+01:00

Whether or not Steorn have a working Orbo, I have found the many months I have spent on the main forum and in the SPUD very worthwhile.

I have been able to learn a lot about magnetism and its significance to Iterative Hierarchical Mechanics.

Paul, what do you think? Is it time to pull the p...

2007-10-02T22:30:00.000+01:00

Paul, what do you think? Is it time to pull the plug and stop watching? I can't imagine why they haven't demo'd something by now. As I said before, they're either lying or they've got it. You've met them in person? Do you think they are so confident that they think they can take a black eye like that (the July debacle) and just shrug it off? McCarthy's post July press commments would seem to indicate they wanted to vindicate themselves ASAP.......

Thanks MarkHi OverCI'm a little wary of saying too...

2007-09-27T19:48:00.000+01:00

Thanks Mark

Hi OverC

I'm a little wary of saying too much at the moment. This has nothing to do with the NDA as I will not break that in these posts anyway. The truth is that there's not much to say. As stated in the blog, I will only get excited by tangible events. I have become a healthy sceptic but still retain some hope. If I ever lose that hope then I will post the fact here and walk away. I don't intend to spend a minute of my time on something I am certain is worthless. That uncertainty paired with the exceptional ramifications of this being real keeps me attentive but otherwise circumspect about the whole affair.

Paul,It's been a while since your last blog update...

2007-09-26T16:53:00.000+01:00

Paul,

It's been a while since your last blog update. I hear Sean has been fairly active in the SPDC recently. Is there anything new you can pass on the the public? Or is it all covered by the NDA?

Overconfident