KESS_vs_SWRO Desalination

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Salt Water
Reverse Osmosis Systems
(SWRO)

SWRO is very expensive to build, operate and maintain, is energy inefficient, implements expensive SWRO membranes, requires high energy pressure pumps and returns more than 50% of a highly toxic, environmentally hazardous waste material back to the water source.

Kinetic Energy Solar Still
(KESS®©)

KESS is a revolutionary new scaleable, water desalination system which operates on renewable energy sources, is very energy efficient, requires minimal maintenance, reduces waste, has a very small carbon footprint, has no membranes to change and no water returns to the source: salt is the only by-product.

Salt Water
Reverse Osmosis Systems
(SWRO)

SWRO is very expensive to build, operate and maintain, is energy inefficient, implements expensive SWRO membranes, requires high energy pressure pumps and returns more than 50% of a highly toxic, environmentally hazardous waste material back to the water source.

Kinetic Energy Solar Still
(KESS®©)

KESS is a revolutionary new scaleable, water desalination system which operates on renewable energy sources, is very energy efficient, requires minimal maintenance, reduces waste, has a very small carbon footprint, has no membranes to change and no water returns to the source: salt is the only by-product.

KESS technology will work and play well with existing SWRO facilities to mitigate the adverse environmental impact of SWRO’s return waste toxic brine.

It’s no secret that Reverse Osmosis salt water desalination (SWRO) has severe environmental impact issues. Whole geographic marine regions are suffering greatly, or have already died from the highly toxic saline brine that has/is back-washed into the seas and oceans. Marine life and irreplaceable coral reefs have been killed. Environmental groups worldwide stand firmly united against SWRO.

To this end, KESS technology will work in tandem, extremely well with, SWRO plants worldwide. By reducing the return volume of SWRO toxic brine, KESS will work in concert with, not adversarially against, existing SWRO technology.

As KESS technology has no membranes to plug and foul, nor high pressure pumps to fail, nor expensive electrical utilities (with exceptionally high carbon footprint) to drain; KESS Technology easily steps in and accepts the high saline brine direct from SWRO plants, and reduces it to bag-able salt, and fresh water. The remaining salable salt will either be made available to claim, will be hauled away by outside contracted services to process the material for valuable minerals, or stored at approved sites.

So, whether wholly renewable powered discrete KESS cells are installed independently to desalinate salt and brackish water, or KESS cells are amended to existing facilities as a “plug ‘n play” SWRO brine reduction solution, KESS technology has a role to play in protecting the environment.

Brine reduction greatly mitigates the adverse impact that SWRO has in every location, planet wide.

White Papers:

Desalination: How the Rules Have Changed.

White Paper on the Penman-Shuttleworth Equation and the Derived Accelerated Evaporation-Condensation/Collection Devices and their Environmental Impact Assessment for 2018.

Introduction:

This paper introduces a new approach to salt/brackish water desalination and water purification. A new system, KESS®©, incorporates a unique large scale distillation hardware design which effectively and efficiently can use only renewable energy as the power source. Patent and Trademarks were recently “allowed” and are soon to be issued by the USPTO and WIPO government offices. International patents are being filed soon.

Abstract:

Production of clean fresh water is of critical importance planet wide, particularly between 45 deg. +/- of the equator where water sources are already severely depleted, and some will soon vanish altogether. As the demand for fresh water increases with the world’s population, and the supply of fresh water decreases due to weather conditions, the challenges to produce adequate amounts of fresh water are increasing daily. Current solar desalination systems produce fresh water, but inefficiently and very slowly. Salt Water Reverse Osmosis (SWRO) systems produce fresh water, but expensively and with major negative ecological impact.
Contained herein is a greatly improved solar desalination system that overcomes physical and chemical water production barriers and limits, utilizing 100% renewable solar and/or wind derived kinetic energy. The net effects substantially increase both the evaporation and the recovery/condensation capture rates vs. the accepted standard pan evaporation rate. Several scalable embodiments/configurations are presented, representing differences in production, usage and transportation/delivery logistics.

Desalination: How the Rules Have Changed.

White Paper on the Penman-Shuttleworth Equation and the Derived Accelerated Evaporation-Condensation/Collection Devices and their Environmental Impact Assessment for 2018.

Introduction:

This paper introduces a new approach to salt/brackish water desalination and water purification. A new system, KESS®©, incorporates a unique large scale distillation hardware design which effectively and efficiently can use only renewable energy as the power source. Patent and Trademarks were recently “allowed” and are soon to be issued by the USPTO and WIPO government offices. International patents are being filed soon.

Abstract:

Production of clean fresh water is of critical importance planet wide, particularly between 45 deg. +/- of the equator where water sources are already severely depleted, and some will soon vanish altogether. As the demand for fresh water increases with the world’s population, and the supply of fresh water decreases due to weather conditions, the challenges to produce adequate amounts of fresh water are increasing daily. Current solar desalination systems produce fresh water, but inefficiently and very slowly. Salt Water Reverse Osmosis (SWRO) systems produce fresh water, but expensively and with major negative ecological impact.
Contained herein is a greatly improved solar desalination system that overcomes physical and chemical water production barriers and limits, utilizing 100% renewable solar and/or wind derived kinetic energy. The net effects substantially increase both the evaporation and the recovery/condensation capture rates vs. the accepted standard pan evaporation rate. Several scalable embodiments/configurations are presented, representing differences in production, usage and transportation/delivery logistics.

December 3, 2018
Via Email
Mark D. Goodley KESS Technologies, Inc. 4272 Dant Blvd. Reno, NV 89509
Re: Overview of Allowed U.S. Patent Application No. 15/879,695, Entitled “System and Method for Evaporation and Collection of Liquids”
Dear Mark:
KESS Technologies, Inc. (“KESS”) has asked Wilmer, Cutler, Pickering, Hale, and Dorr LLP (“WilmerHale”) to provide an overview of the subject matter of allowed U.S. Patent Application No. 15/879,695 (“the ‘695 application”), entitled “System and Method for Evaporation and Collection of Liquids,” and the legal requirements for obtaining an issued patent from the United States Patent and Trademark Office (“USPTO”).
In conducting our analysis, we have reviewed the ‘695 application as filed with the USPTO, a non-final Office Action from the USPTO dated May 10, 2018, concerning the ‘695 application, Applicant’s Reply to the non-final Office Action filed on July 9, 2018, the Notice of Allowance and Fee(s) Due from the USPTO for the ‘695 application, and the allowed claims of the ‘695 application. Our overview of the legal standards for obtaining a U.S. patent and the allowed ‘695 application follows.
I. SUMMARY
A patent gives the patentee the right to exclude others from making, using, selling, offering to sell and/or importing subject matter that falls within the scope of the patented claims. See 35 U.S.C. § 154(a)(1). The ‘695 application is directed to systems, methods, and devices for the efficient and increased rate of evaporation and collection of liquids, including desalination of water.
Following a relatively short period of prosecution, the USPTO determined that the pending claims of the ‘695 application satisfy the statutory requirements for patentability. This determination from the USPTO indicates that the claimed subject matter of the allowed ‘695 patent application has utility and is novel and nonobvious over the prior art. The claims of a patent issued by the USPTO are presumed to be legally valid. See 35 U.S.C. § 282.

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Business Plan:

KESS® Technologies Inc. Business Plan Narrative

I. Why KESS?

KESS Technologies, Inc. is a multi-discipline, integrative, high technology company offering several new innovative product lines.

KESS was recently awarded a patent for fresh water generation systems which efficiently, economically, reliably and safely extracts large amounts of fresh clean water from salt/brackish/ocean /polluted waters, without the excessive costs and amounts of power normally associated with desalination and water purification, a first, never before achieved.

Importantly, KESS Cells also have the inherent capabilities to significantly mitigate the severe environmental impact issues of all SWRO (SeaWater Reverse Osmosis) systems; i.e., The discharge brine (backflush) that is polluting the world’s seas and oceans.

While the focus will always remain producing fresh water without VAC (or other fuel burning sourced power), under the KESS corporate umbrella, there are several closely related satellite and component profit center divisions; which are summarized herein, though not yet represented in the summary P&L below.

Due to the patented innovation and integration of technologies (physics, chemistry, electronics, software, tight tolerance mechanics, transducer/sensors), KESS Cells, with tight tolerance components, while still experimental, are expected to operate so efficiently and effectively, that the entire system, no matter the size, will operate independently and discretely only on renewable power sources, including, but not limited to, wind, solar, pedal power, etc.

We refer to the speed and efficiency of this conversion process as HASE© (Hyper Accelerated Solar Evaporation). Small improvements in many areas multiplying into overall sizeable gains.

In comparison to current leading technology, SWRO, there are no expensive high wattage motors, high pressure pumps, or semipermeable filters to change out or dispose of. Conversely, KESS operates at relatively low heat and low pressure differentials.

And as opposed to SWRO, the only byproduct extracted from KESS, in most cases, is dry salable table salt. (Though with some brackish waters there may be other less desirable byproducts which will need to be disposed).

In contrast with KESS systems, current SWRO systems are hundreds to thousands of times more expensive to build, operate, fuel and maintain.

SWRO systems require massive amounts of prohibitively expensive energy to operate. In some cases, these operating costs and vast amounts of energy required to keep a SWRO system operating are the reasons they are not employed.

For example, a large SWRO system (50M/gal (180K^3m) /day), with the power plant necessary to operate the plant, typically costs in the neighborhood of $2B USD to build and $250M a year in energy costs alone to operate !

In addition to the excessive energy costs, SWRO systems require a lot of maintenance. The expensive SWRO filters need to be changed out; typically every few months. SWRO operates with high pressure (1,000-2,000 psi) and high temperature, often resulting in pump failures. Again, KESS is neither constrained nor impacted by any of these issues.

It’s particularly important to note that unlike KESS, no SWRO system in the world can reduce their continuous waste stream to a dry, easily transportable byproduct, which is both their environmental curse, and KESS’s opportunity.

KESS technology represents the potential for a true and very rare paradigm shift on the planet.

In the creation of fresh water is a unique opportunity to do something truly important on the earth for all of its inhabitants.

***

As you may be aware, there is a critical and growing fresh water shortage on earth. Within 40-45 degrees of the equator, we are either already out of water, or soon will be.

This is a planetary problem that began about 10,000 years ago with/at the end of the last ice age. The planetary fresh water quantity/loss has been on a downward spiral trajectory ever since. It’s not going to change any time soon.

We’re not suggesting you should forget about what you hear about “global warming”. Yet the facts are that the problem started a long time ago and have little or nothing to do with us being here.

Till now, the choices and options have not been good.

The World Health Organization (WHO) states that roughly 2/3’s of all illnesses are water related.

Over 2 billion people on the earth today drink polluted, infectious water every day, if they can find water at all, as many regions have very little to no fresh water at all.

There’s plenty of salt water, (It’s estimated that 75% of the world’s population lives within 100 miles of an ocean/sea) but many do not have a drop to drink, wash, irrigate crops, etc. The lack of fresh water is a critical human, animal and agricultural emergency.

Water is truly not what many business marketers universally refer to as a “space”. This is a truly offensive statement to us.

Water is much, much more. Water is life. We are passionate about providing fresh water, at absolutely minimal cost, to the planet.

As a planetary people, we needed to find a way to solve the catastrophic water shortage problem. And we have.

***

We Must change this paradigm problem. We can change this. We Will change this.

II. Where We Are Currently.

The initial (of several KESS patents was filed in June 2018. In record time, the USPTO allowed all the claims in the KESS design and utility patent and it was published recently in mid-December 2018. The message was crystal clear, “There is a huge humanitarian need for this technology, get going.” We have many more patents to go.

The KESS trademark has been universally registered and accepted.

Through close affiliations with other patent holders and KESS principle patent holders, our patents for Wind Turbines (to power KESS Cells) were allowed and published in 2016-17. A patent for low cost solar cell optimization was likewise allowed.

So, in terms of securing the necessary IP, we are ready to go. We have a clear, straight path. We know what we need to do, where we need to go, and how to get there. There are always questions, problems, and development issues, and through our involvement in various successful ventures, we have a proven track record of solving them.

Initial working prototypes are designed, manufactured, and tested. (See below). Many sub-systems, parts, assemblies, concepts are already conceived, designed and tested. Many more to follow.

The last year has seen a tremendous “evolution” and improvements to design, utility, and abilities. While initially the large KESS cells were designed to be made from concrete, block, as permanent infrastructure, and constructed individually at perhaps 1 per week. The current designs can be mass produced at many per hour.

The current designs are now also floatable (for areas with restricted land availability or high cost.)

Not only are KESS cells now able to be mass produced on a large scale, but they are much less expensive, shippable, containerized(able), and able to quickly reach anywhere in the world.

USA and Israeli corporations formed. VAT in Israel started. 15% Employee stock plan drawn and adopted.

KESStechnologies.com Website up and running; planned improvements to come.

III. Where We are Going

We have necessarily been operating on a minimal budget for such an extraordinarily large project. There have been the normal legal expenses, operating expenses, production expenses, travel expenses, etc.

Our patent and trademark applications and business creation have required a good portion of the investment money we have received thus far, with much farther to go.

We attempted to make small prototype samples using 3D printing and fiberglass construction. Though we ultimately had some success with testing some aspects of KESS, neither of the techniques proved adequate to fully test and optimize all of the aspects of the KESS system.

We have determined that high precision injection and rotomolded parts will be necessary to test and optimize the systems. The molds, tooling and components are expensive, however they are necessary to maintain the tolerances needed for optimization. It is also necessary to have a team for assembly, testing and shipping these systems.

It should be noted that the molds and tooling mentioned above, will be used to make production systems going forward. Therefore the expense of these items is not lost on only prototypes.

Three sizes of KESS “cells” are designed, each with unique geometric footprints, and maximized production capabilities. Based upon theoretical production capacities they are:

13’X8’ (2,500 gpd max.) Production capacity. Capable of being nested/stacked/shipped in 53’ HQ containers. We estimate that a full 53’ HQ container will contain a 50,000gpd fresh water capable system.
8’X4’ (500 gpd max.) Production capacity. Capable of being nested/transported on any full-sized flatbed pickup truck where containers are not shippable.
1 Meter Personal (5-10 gpd max.) Production capacity. Capable of being shipped anywhere in the world in a moment’s notice. This size is also suitable for retail markets such as RV, boat, etc. stores. In discussions with the World Bank for humanitarian distribution.
Large water storage tanks (10,000 to 25,000 gallons) are expected to also be produced at KESS facilities (see Production Facility below). When you are producing a large amount of water, there needs to be a reliable way to store it. KESS will be responsible for both.

Note: The internal parts and components for the 13’X8’ and 8’X4’ size cells are all identical. No redundant costs, tooling, assembly line, molds, or systems are required.

KESS cells Expected Lifetime: Most all parts in KESS cells are expected to have a useful life of 20-25 years. One critical, but not terribly expensive part will need to be replaced every 10-12 years in adverse environments.

In other words, with no cost inputs of outside power, gas, or oil, KESS cells should produce fresh water autonomously for about a quarter of a century; with minimal maintenance.

Sub-Vendors: Several injection and rotational mold manufactures (in the US and worldwide) have already been approached and have provided us with tool bids. Electronics, transducers, motors, etc. Have been sourced and priced from multiple vendors.

Production facility locations/Master Plan: USA and Israel.

Initially, production and assembly will necessarily begin in central California, (as the only machine large enough in the country to produce our largest size Cell system is there.

Perhaps a year later, after implementation and production initialization, the manufacturing and company will be home based in northern Israel.

Our Master plans call for at least four of the largest molding systems in the world, and many smaller systems to be housed there.

We expect to employ 2,500-3,000 people worldwide.

With this many people, it is expected that the majority will be housed on-site in facilities that we will need to build and provide.

There are many reasons for the KESS’s HQ to be in Israel.

Israel is a recognized leader in water technology.
Israel has the natural gas reserves we need for manufacturing
Israel is centrally located to our largest customer bases in Africa, India, and Southern Europe, with only a small premium to Eastern South America and Caribbean/Bahamas
Large pool of qualified employees

Along with the manufacturing facility in Israel, we recognize that subsidized housing will need to be offered for a large portion of our employees.

With housing, there are other employee requirements we foresee as well. Kitchens/Dining, Medical, Entertainment, Shopping, Security, etc. are all being considered.

With the large amount of HDPE plastic KESS will require for all its products, an HDPE factory is being drawn into the current master plan. HDPE is derivative of natural gas, not oil.

Fortunately, recently, Israel is becoming one of the largest natural gas producers in the world.

For years Golda Meir used to take pokes at Moses, that is all the Middle East, he took us to the one place that had no oil. Turns out Moses wasn’t such a bad judge of location after all.

The closest HDPE facility now is Egypt. Not a reliable or preferable partner. The short term solution is shipping pelletized HDPE from Europe and the USA via containers through Haifa. Not an optimal long term solution. We will strive to be self-reliant. To do so will require the considerable efforts and partnership of the Israeli government which has not yet been secured.

This HDPE plant cost is approx... $4B USD.

IV. Markets Open and Uniquely Available to KESS

How, Where and What KESS systems will be sold?

In House Revenue Owned Sources/Products:

In concert with all existing SWRO plants worldwide to mitigate the dumping of high salt concentrate brine pollution back into their source.

Standalone desalination systems throughout the world for nations, countries, states, community’s, homes, islands, industries….

Purification of international fresh water and river sources that do not have the electrical VAC grid power or finances in path to fund existing alternative filter based technologies. For example the 1,600 mile Ganges river in India.

IP licenses of KESS technology to qualified, multi-national manufactures/vendors

Water Production Contracts (“WPC”). Water sold by the gallon/meter^3 to all the above. KESS maintains assets for depreciation and sells water production.

Retail and Wholesale KESS sales of the 1meter KESS cells to specialty chain stores such as boat, RV, Fishing, Survivalist, etc.

Emergency flood water purification; without “standard” filters or membranes that are subject to inevitable clogging. KESS has no filters or membranes to foul.

Industrial Mining location water reclamation projects where power and filtration are either not available, too expensive, or not feasible.

Patented Wind Turbine Production for 5KW-50KW systems for KESS and OEM sales

OEM (Non KESS owned product HDPE Injection/Roto Not represented in spreadsheet)

Hydroponics, Aquaponics, and Agriculture farming all run hand in hand and follow after water production. If you have water then you have the ability to grow crops, and protein sources/ fish wildlife.

OEM Military, Industrial, Commercial, Consumer Products. From experience; when one has the world class manufacturing capabilities to economically produce multiple parts/hr. for molded part sizes ranging to: 16’ (5m+) D X 34’ (10m+) L… the doors are open wide to parts at custom/customer specifications. There is no limit to the scope.

V. How profitability will be attained and maintained in the near term and distant future.

To become (quickly) profitable, KESS Technologies Inc. has identified several revenue streams (profit centers) to utilize and draw upon. Some of which include:

Straight Equipment Sales Domestic and International. Regional offices will be established with autonomous support and sales roles.
Equipment Leasing. Initially a third party contractor will be used. Down the road, in house leasing is expected to be implemented.
Long term Water Sales Contracts (“WSC”) (equipment owned /held as assets and depreciated). This is anticipated to be KESS’s largest profit center/stream. Note: Worldwide, (on non-50Mg/d or larger SWRO state owned systems) retail water currently costs between $.35-$.65/g. At near zero operational production costs, KESS can/will out compete any vendor.
IP Licensing Fees (to suitable and qualified manufactures). There are a number of multi-national players with the ability to produce and distribute KESS cells, under license. Many of these have been identified.

Please see the Summary KESS 3 year forecast P&L spreadsheets below for details. (Full pdf available). The numbers may seem irrational and even ridiculous, until one considers that the market for KESS is the entire Planet (within 40-45º of the equator), and there are effectively no competitors for what it is able to achieve.

Many domestic and international, customers have already been identified and verbally secured with initial introductions made. These include national, regional, state, corporate customers.

VI. Projected P&L Summary

The purpose of this section is to illustrate the scope of planned potential sales, revenue sources, expenses and profitability. OEM/ Non KESS product sales not included.

VII. Risks and Unknowns.

There are always some inherent risks involved with any new venture and investment. In this case we estimate the known to be:

Lack of Funding. There is a minimum amount required. After this has been reached, drawn plans will be followed to maintain a growth path.
Physics doesn’t prove out on the large scale. The larger scale is expected to actually decrease this risk. Higher volumes of air, water, temperature stability, parts sizes, all work in KESS’s favor.
Products not able to be manufactured. KESS employees have a very strong pedigree in design, manufacturing, logistics/shipping and onsite setup.
Key people. KESS has key people already in key roles. KESS is expected have 2,500-3,000 employees within two years. All filling critical roles. KESS personnel has substantial experience in all required areas including: design, engineering, problem solving, manufacturing, logistics, shipping, financing, HR, etc.
Defense against future competitors (non-existent now…but…) after full funding, KESS will be setting aside $500K USD in its legal defense fund. Yes, there will be legal tests, but KESS will make full defenses of all its IP and rights.
Materials/Supply Problems. In order to mitigate and control this risk, multiple sources have already been identified for all materials, parts, etc.
Market Limitations: Like all water treatment systems, KESS has an Achilles heel when it comes to treating high VOC contaminated water. In those areas that have highly polluted waters, (such as some harbors and bays) KESS has to be very careful to avoid delivering systems without pre-treatment systems in play.
Information loss/theft. This is a sizeable risk that must be mitigated. Without detail or clarification, many operational functions and capabilities of KESS are strictly proprietary and confidential and not even revealed, discussed, nor mentioned in the patents. Our corporate posture is clear.
Our responsibility is to more economically produce, clean and purify fresh water with our systems, not educate others how we do it. We are a for profit business, not an educational institution/forum/blog. There are many that already resent this position. Our IP will be safeguarded, protected, and prosecuted, with extreme prejudice, to the fullest extent allowed by law.

Note: The prevalent atmospheric water collection systems do not pose any risk to KESS technology. The collected amounts are teacup trivial in relation, are dependent upon local humidity levels, and still require VAC power. With all due respect, non-players.1.

VIII. Fundraising objectives and investment opportunities.

A minimum investment is being procured to meet the current primary objective, i.e. going into production and shipping first units. The goal is to keep this number small until the company’s valuation increases. The reasons for this strategy are listed below.

As of December, 2018, KESS has a market evaluation value of between $10-$20M. Stock percentage to $$$ investments will be determined by this rate. After initial production, trials, and shipments, KESS’s market value will be re-evaluated and reset.

Several levels are feasible for the first round, dependent upon scale, sizes, production, implementation schedule and timing.

$500 K minimum. Two smaller sizes built, optimized and tested.
$2.5M: Initial - Additional $7.5 M; Month 8-10/End of 1st Year ($10M Total).

All sizes built, optimized and tested, initial production begins

The immediate goal (repeated) is to begin limited initial production, shipment and delivery of all three sizes utilizing contracted molding vendors. This will allow corporate valuation growth, in turn allowing for further funding. Following, successful implementation, and with increased company valuation, KESS will initiate an IPO process to raise the VC capital that is required to build a full scale facility with worldwide shipments.

Funding has been offered to KESS with the “rails” between $500M and $4B, following delivery and successful implementation of the first units.

The total five year budget for all envisioned projects outlined here approaches $8B…including the stand-alone manufacturing facilities.

Please see accompanying spreadsheets detailing utilization and Use of Funds for each.

KESS Technologies Inc. (De.)

KESStechnologies.com
3495 Lakeside Dr. #224
Reno, NV. 89509 USA

Patent Attorneys – BIPC, Wash. D.C.
Business/SEC Attorneys - Wilmer-Hale, Wash. D.C.

Contact:
markdgoodley founder, ceo
markdgoodley@kesstechnologies.com
(760) 213-4958

KESS® Technologies Inc. Business Plan Narrative

I. Why KESS?

KESS Technologies, Inc. is a multi-discipline, integrative, high technology company offering several new innovative product lines.

KESS was recently awarded a patent for fresh water generation systems which efficiently, economically, reliably and safely extracts large amounts of fresh clean water from salt/brackish/ocean /polluted waters, without the excessive costs and amounts of power normally associated with desalination and water purification, a first, never before achieved.

Importantly, KESS Cells also have the inherent capabilities to significantly mitigate the severe environmental impact issues of all SWRO (SeaWater Reverse Osmosis) systems; i.e., The discharge brine (backflush) that is polluting the world’s seas and oceans.

While the focus will always remain producing fresh water without VAC (or other fuel burning sourced power), under the KESS corporate umbrella, there are several closely related satellite and component profit center divisions; which are summarized herein, though not yet represented in the summary P&L below.

Due to the patented innovation and integration of technologies (physics, chemistry, electronics, software, tight tolerance mechanics, transducer/sensors), KESS Cells, with tight tolerance components, while still experimental, are expected to operate so efficiently and effectively, that the entire system, no matter the size, will operate independently and discretely only on renewable power sources, including, but not limited to, wind, solar, pedal power, etc.

We refer to the speed and efficiency of this conversion process as HASE© (Hyper Accelerated Solar Evaporation). Small improvements in many areas multiplying into overall sizeable gains.

In comparison to current leading technology, SWRO, there are no expensive high wattage motors, high pressure pumps, or semipermeable filters to change out or dispose of. Conversely, KESS operates at relatively low heat and low pressure differentials.

And as opposed to SWRO, the only byproduct extracted from KESS, in most cases, is dry salable table salt. (Though with some brackish waters there may be other less desirable byproducts which will need to be disposed).

In contrast with KESS systems, current SWRO systems are hundreds to thousands of times more expensive to build, operate, fuel and maintain.

SWRO systems require massive amounts of prohibitively expensive energy to operate. In some cases, these operating costs and vast amounts of energy required to keep a SWRO system operating are the reasons they are not employed.

For example, a large SWRO system (50M/gal (180K^3m) /day), with the power plant necessary to operate the plant, typically costs in the neighborhood of $2B USD to build and $250M a year in energy costs alone to operate !

In addition to the excessive energy costs, SWRO systems require a lot of maintenance. The expensive SWRO filters need to be changed out; typically every few months. SWRO operates with high pressure (1,000-2,000 psi) and high temperature, often resulting in pump failures. Again, KESS is neither constrained nor impacted by any of these issues.

It’s particularly important to note that unlike KESS, no SWRO system in the world can reduce their continuous waste stream to a dry, easily transportable byproduct, which is both their environmental curse, and KESS’s opportunity.

KESS technology represents the potential for a true and very rare paradigm shift on the planet.

In the creation of fresh water is a unique opportunity to do something truly important on the earth for all of its inhabitants.

***

As you may be aware, there is a critical and growing fresh water shortage on earth. Within 40-45 degrees of the equator, we are either already out of water, or soon will be.

This is a planetary problem that began about 10,000 years ago with/at the end of the last ice age. The planetary fresh water quantity/loss has been on a downward spiral trajectory ever since. It’s not going to change any time soon.

We’re not suggesting you should forget about what you hear about “global warming”. Yet the facts are that the problem started a long time ago and have little or nothing to do with us being here.

Till now, the choices and options have not been good.

The World Health Organization (WHO) states that roughly 2/3’s of all illnesses are water related.

Over 2 billion people on the earth today drink polluted, infectious water every day, if they can find water at all, as many regions have very little to no fresh water at all.

There’s plenty of salt water, (It’s estimated that 75% of the world’s population lives within 100 miles of an ocean/sea) but many do not have a drop to drink, wash, irrigate crops, etc. The lack of fresh water is a critical human, animal and agricultural emergency.

Water is truly not what many business marketers universally refer to as a “space”. This is a truly offensive statement to us.

Water is much, much more. Water is life. We are passionate about providing fresh water, at absolutely minimal cost, to the planet.

As a planetary people, we needed to find a way to solve the catastrophic water shortage problem. And we have.

***

We Must change this paradigm problem. We can change this. We Will change this.

II. Where We Are Currently.

The initial (of several KESS patents was filed in June 2018. In record time, the USPTO allowed all the claims in the KESS design and utility patent and it was published recently in mid-December 2018. The message was crystal clear, “There is a huge humanitarian need for this technology, get going.” We have many more patents to go.

The KESS trademark has been universally registered and accepted.

Through close affiliations with other patent holders and KESS principle patent holders, our patents for Wind Turbines (to power KESS Cells) were allowed and published in 2016-17. A patent for low cost solar cell optimization was likewise allowed.

So, in terms of securing the necessary IP, we are ready to go. We have a clear, straight path. We know what we need to do, where we need to go, and how to get there. There are always questions, problems, and development issues, and through our involvement in various successful ventures, we have a proven track record of solving them.

Initial working prototypes are designed, manufactured, and tested. (See below). Many sub-systems, parts, assemblies, concepts are already conceived, designed and tested. Many more to follow.

The last year has seen a tremendous “evolution” and improvements to design, utility, and abilities. While initially the large KESS cells were designed to be made from concrete, block, as permanent infrastructure, and constructed individually at perhaps 1 per week. The current designs can be mass produced at many per hour.

The current designs are now also floatable (for areas with restricted land availability or high cost.)

Not only are KESS cells now able to be mass produced on a large scale, but they are much less expensive, shippable, containerized(able), and able to quickly reach anywhere in the world.

USA and Israeli corporations formed. VAT in Israel started. 15% Employee stock plan drawn and adopted.

KESStechnologies.com Website up and running; planned improvements to come.

III. Where We are Going

We have necessarily been operating on a minimal budget for such an extraordinarily large project. There have been the normal legal expenses, operating expenses, production expenses, travel expenses, etc.

Our patent and trademark applications and business creation have required a good portion of the investment money we have received thus far, with much farther to go.

We attempted to make small prototype samples using 3D printing and fiberglass construction. Though we ultimately had some success with testing some aspects of KESS, neither of the techniques proved adequate to fully test and optimize all of the aspects of the KESS system.

We have determined that high precision injection and rotomolded parts will be necessary to test and optimize the systems. The molds, tooling and components are expensive, however they are necessary to maintain the tolerances needed for optimization. It is also necessary to have a team for assembly, testing and shipping these systems.

It should be noted that the molds and tooling mentioned above, will be used to make production systems going forward. Therefore the expense of these items is not lost on only prototypes.

Three sizes of KESS “cells” are designed, each with unique geometric footprints, and maximized production capabilities. Based upon theoretical production capacities they are:

13’X8’ (2,500 gpd max.) Production capacity. Capable of being nested/stacked/shipped in 53’ HQ containers. We estimate that a full 53’ HQ container will contain a 50,000gpd fresh water capable system.
8’X4’ (500 gpd max.) Production capacity. Capable of being nested/transported on any full-sized flatbed pickup truck where containers are not shippable.
1 Meter Personal (5-10 gpd max.) Production capacity. Capable of being shipped anywhere in the world in a moment’s notice. This size is also suitable for retail markets such as RV, boat, etc. stores. In discussions with the World Bank for humanitarian distribution.
Large water storage tanks (10,000 to 25,000 gallons) are expected to also be produced at KESS facilities (see Production Facility below). When you are producing a large amount of water, there needs to be a reliable way to store it. KESS will be responsible for both.

Note: The internal parts and components for the 13’X8’ and 8’X4’ size cells are all identical. No redundant costs, tooling, assembly line, molds, or systems are required.

KESS cells Expected Lifetime: Most all parts in KESS cells are expected to have a useful life of 20-25 years. One critical, but not terribly expensive part will need to be replaced every 10-12 years in adverse environments.

In other words, with no cost inputs of outside power, gas, or oil, KESS cells should produce fresh water autonomously for about a quarter of a century; with minimal maintenance.

Sub-Vendors: Several injection and rotational mold manufactures (in the US and worldwide) have already been approached and have provided us with tool bids. Electronics, transducers, motors, etc. Have been sourced and priced from multiple vendors.

Production facility locations/Master Plan: USA and Israel.

Initially, production and assembly will necessarily begin in central California, (as the only machine large enough in the country to produce our largest size Cell system is there.

Perhaps a year later, after implementation and production initialization, the manufacturing and company will be home based in northern Israel.

Our Master plans call for at least four of the largest molding systems in the world, and many smaller systems to be housed there.

We expect to employ 2,500-3,000 people worldwide.

With this many people, it is expected that the majority will be housed on-site in facilities that we will need to build and provide.

There are many reasons for the KESS’s HQ to be in Israel.

Israel is a recognized leader in water technology.
Israel has the natural gas reserves we need for manufacturing
Israel is centrally located to our largest customer bases in Africa, India, and Southern Europe, with only a small premium to Eastern South America and Caribbean/Bahamas
Large pool of qualified employees

Along with the manufacturing facility in Israel, we recognize that subsidized housing will need to be offered for a large portion of our employees.

With housing, there are other employee requirements we foresee as well. Kitchens/Dining, Medical, Entertainment, Shopping, Security, etc. are all being considered.

With the large amount of HDPE plastic KESS will require for all its products, an HDPE factory is being drawn into the current master plan. HDPE is derivative of natural gas, not oil.

Fortunately, recently, Israel is becoming one of the largest natural gas producers in the world.

For years Golda Meir used to take pokes at Moses, that is all the Middle East, he took us to the one place that had no oil. Turns out Moses wasn’t such a bad judge of location after all.

The closest HDPE facility now is Egypt. Not a reliable or preferable partner. The short term solution is shipping pelletized HDPE from Europe and the USA via containers through Haifa. Not an optimal long term solution. We will strive to be self-reliant. To do so will require the considerable efforts and partnership of the Israeli government which has not yet been secured.

This HDPE plant cost is approx... $4B USD.

IV. Markets Open and Uniquely Available to KESS

How, Where and What KESS systems will be sold?

In House Revenue Owned Sources/Products:

In concert with all existing SWRO plants worldwide to mitigate the dumping of high salt concentrate brine pollution back into their source.

Standalone desalination systems throughout the world for nations, countries, states, community’s, homes, islands, industries….

Purification of international fresh water and river sources that do not have the electrical VAC grid power or finances in path to fund existing alternative filter based technologies. For example the 1,600 mile Ganges river in India.

IP licenses of KESS technology to qualified, multi-national manufactures/vendors

Water Production Contracts (“WPC”). Water sold by the gallon/meter^3 to all the above. KESS maintains assets for depreciation and sells water production.

Retail and Wholesale KESS sales of the 1meter KESS cells to specialty chain stores such as boat, RV, Fishing, Survivalist, etc.

Emergency flood water purification; without “standard” filters or membranes that are subject to inevitable clogging. KESS has no filters or membranes to foul.

Industrial Mining location water reclamation projects where power and filtration are either not available, too expensive, or not feasible.

Patented Wind Turbine Production for 5KW-50KW systems for KESS and OEM sales

OEM (Non KESS owned product HDPE Injection/Roto Not represented in spreadsheet)

Hydroponics, Aquaponics, and Agriculture farming all run hand in hand and follow after water production. If you have water then you have the ability to grow crops, and protein sources/ fish wildlife.

OEM Military, Industrial, Commercial, Consumer Products. From experience; when one has the world class manufacturing capabilities to economically produce multiple parts/hr. for molded part sizes ranging to: 16’ (5m+) D X 34’ (10m+) L… the doors are open wide to parts at custom/customer specifications. There is no limit to the scope.

V. How profitability will be attained and maintained in the near term and distant future.

To become (quickly) profitable, KESS Technologies Inc. has identified several revenue streams (profit centers) to utilize and draw upon. Some of which include:

Straight Equipment Sales Domestic and International. Regional offices will be established with autonomous support and sales roles.
Equipment Leasing. Initially a third party contractor will be used. Down the road, in house leasing is expected to be implemented.
Long term Water Sales Contracts (“WSC”) (equipment owned /held as assets and depreciated). This is anticipated to be KESS’s largest profit center/stream. Note: Worldwide, (on non-50Mg/d or larger SWRO state owned systems) retail water currently costs between $.35-$.65/g. At near zero operational production costs, KESS can/will out compete any vendor.
IP Licensing Fees (to suitable and qualified manufactures). There are a number of multi-national players with the ability to produce and distribute KESS cells, under license. Many of these have been identified.

Please see the Summary KESS 3 year forecast P&L spreadsheets below for details. (Full pdf available). The numbers may seem irrational and even ridiculous, until one considers that the market for KESS is the entire Planet (within 40-45º of the equator), and there are effectively no competitors for what it is able to achieve.

Many domestic and international, customers have already been identified and verbally secured with initial introductions made. These include national, regional, state, corporate customers.

VI. Projected P&L Summary

The purpose of this section is to illustrate the scope of planned potential sales, revenue sources, expenses and profitability. OEM/ Non KESS product sales not included.

VII. Risks and Unknowns.

There are always some inherent risks involved with any new venture and investment. In this case we estimate the known to be:

Lack of Funding. There is a minimum amount required. After this has been reached, drawn plans will be followed to maintain a growth path.
Physics doesn’t prove out on the large scale. The larger scale is expected to actually decrease this risk. Higher volumes of air, water, temperature stability, parts sizes, all work in KESS’s favor.
Products not able to be manufactured. KESS employees have a very strong pedigree in design, manufacturing, logistics/shipping and onsite setup.
Key people. KESS has key people already in key roles. KESS is expected have 2,500-3,000 employees within two years. All filling critical roles. KESS personnel has substantial experience in all required areas including: design, engineering, problem solving, manufacturing, logistics, shipping, financing, HR, etc.
Defense against future competitors (non-existent now…but…) after full funding, KESS will be setting aside $500K USD in its legal defense fund. Yes, there will be legal tests, but KESS will make full defenses of all its IP and rights.
Materials/Supply Problems. In order to mitigate and control this risk, multiple sources have already been identified for all materials, parts, etc.
Market Limitations: Like all water treatment systems, KESS has an Achilles heel when it comes to treating high VOC contaminated water. In those areas that have highly polluted waters, (such as some harbors and bays) KESS has to be very careful to avoid delivering systems without pre-treatment systems in play.
Information loss/theft. This is a sizeable risk that must be mitigated. Without detail or clarification, many operational functions and capabilities of KESS are strictly proprietary and confidential and not even revealed, discussed, nor mentioned in the patents. Our corporate posture is clear.
Our responsibility is to more economically produce, clean and purify fresh water with our systems, not educate others how we do it. We are a for profit business, not an educational institution/forum/blog. There are many that already resent this position. Our IP will be safeguarded, protected, and prosecuted, with extreme prejudice, to the fullest extent allowed by law.

Note: The prevalent atmospheric water collection systems do not pose any risk to KESS technology. The collected amounts are teacup trivial in relation, are dependent upon local humidity levels, and still require VAC power. With all due respect, non-players.1.

VIII. Fundraising objectives and investment opportunities.

A minimum investment is being procured to meet the current primary objective, i.e. going into production and shipping first units. The goal is to keep this number small until the company’s valuation increases. The reasons for this strategy are listed below.

As of December, 2018, KESS has a market evaluation value of between $10-$20M. Stock percentage to $$$ investments will be determined by this rate. After initial production, trials, and shipments, KESS’s market value will be re-evaluated and reset.

Several levels are feasible for the first round, dependent upon scale, sizes, production, implementation schedule and timing.

$500 K minimum. Two smaller sizes built, optimized and tested.
$2.5M: Initial - Additional $7.5 M; Month 8-10/End of 1st Year ($10M Total).

All sizes built, optimized and tested, initial production begins

The immediate goal (repeated) is to begin limited initial production, shipment and delivery of all three sizes utilizing contracted molding vendors. This will allow corporate valuation growth, in turn allowing for further funding. Following, successful implementation, and with increased company valuation, KESS will initiate an IPO process to raise the VC capital that is required to build a full scale facility with worldwide shipments.

Funding has been offered to KESS with the “rails” between $500M and $4B, following delivery and successful implementation of the first units.

The total five year budget for all envisioned projects outlined here approaches $8B…including the stand-alone manufacturing facilities.

Please see accompanying spreadsheets detailing utilization and Use of Funds for each.

KESS Technologies Inc. (De.)

KESStechnologies.com
3495 Lakeside Dr. #224
Reno, NV. 89509 USA

Patent Attorneys – BIPC, Wash. D.C.
Business/SEC Attorneys - Wilmer-Hale, Wash. D.C.

Contact:
markdgoodley founder, ceo
markdgoodley@kesstechnologies.com
(760) 213-4958

KESS® Technologies Inc.

Helping to resolve the world's fresh water shortage.