SACRAMENTO, Calif., March 14, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire -- Vortex Brands Co. (OTC:VTXB) published the results today of a recent Q&A session with Bob Widner, who led his family's efforts in inventing Phase Angle Synchronization (PAS), the first project to be launched by Blockchain Energy, Inc.
Q: Thank you for your time today, Mr. Widner. Tell us, what is Phase Angle Synchronization and how long have you been working on this technology?
A: Do you realize that up to 40% of the electricity provided by the utility companies is wasted? When you think about what that means on a worldwide basis and the billions of dollars involved, that stat alone was intriguing enough for me and my brothers to begin looking for a solution to this problem and we began working on this project over 25 years ago. Some say it became an obsession with us and I guess you could say that's accurate, but the risk vs reward was so great that we just couldn't let it go. We were driven and determined to find a solution. Back in the day, we attended countless meetings with engineers, utility company managers, utility experts, we attended conferences, think tanks, etc. This flurry of activity all began long before smart phones or even the internet really. The more we learned, the more we realized that with the right components, computational power and technical configuration, we had a chance of pulling it off.
Q: So can you tell us about the PAS technology?
A: In the simplest of terms, the technology is a solution to a problem that has always been a major concern in the utilities industry; line congestion resulting from inefficient power consumption. 40% is a lot of waste. The waste is inherent in how energy is provided and consumed, it's costly and over time, it's detrimental to the grid itself. This technology allows what was once wasted to now be recycled resulting in huge cost savings and less stress on infrastructure. This project is a massive undertaking and the process is detailed and would take us hours to walk through all that it entails. With that in mind, we've put together a video explaining the technology in more detail and I would encourage you to visit YouTube and review it when you get a chance and maybe provide a link so that others might be able to review as well. https://www.youtube.com/watch?v=iHy45odWh6g
Q: Okay. So after you spent all those years researching the problem and looking for a solution, when did you have what you'd consider that breakthrough moment?
A: I would say from the mid 90s until around 2004 we started to realize limited success, since that's the year we originally patented the theory of Phase Angle Synchronization. We actually began to produce working models early on, but were limited by technology. Back then it took two computers to make the system work and required a technician on site in the event of a power outage or if there was a need to reboot the system. It was not cost effective back then, but over time, we saw improvements with each iteration of the PAS units. We felt we were definitely on the right track.
Q: So it sounds like you guys were ahead of your time. When did the technology finally catch up with the project so to speak?
A: You might say that the early 2000s all the way up until 2015 were the most frustrating for us. My brother Ed passed away during that time, my brother Jim, and Ed's son Dan and I continued working to perfect the process, but it was not until the year 2015 that technology finally caught up to our needs.
Q: So it sounds like the three or four of you were pioneers of sorts.
A: I guess you could say that. Ed was a genius at both electronics and computer programming. Jim and I have extensive experience in electronics as well. Dan as it turns out is a whiz at computer programming and wrote part of the initial code in a machine language so the needed calculations could be performed quick enough to make the required corrections and improvements over time. All of us played integral roles. In fact, there are 14 members of the Widner family that have played a role in getting us to where we are today.
Q: Okay, so 2015 comes along and that's when you said the technology finally caught up to the project?
A: Yes. That's the year that we perfected our computer configuration and developed software and proprietary code that catapulted our results forward in less than two years. You might say that the last two years were as important if not more important than the prior 25 or so combined as it pertains to perfecting the system.
Q: You mentioned the patent, but didn't that lapse?
A: Yes. The intellectual property itself is in the computer configuration, the software and the software code and that's the engine that drives the units themselves. As of late 2017, as you've seen with our demo unit in Sacramento, the units can now be built to be plug and play ready. As part of the setup, the technology is designed to prevent tampering and has a built in feature that wipes the program clean in the event of someone tampering with the unit. The intellectual property is proprietary to Tripac Systems.
Q; So that's your company. Where does Blockchain Energy, Inc. come into play?
A: Although I'm close to retirement, I'm committed as ever to seeing this project through and will be there every step of the way. As I said, this rollout is going to be a massive undertaking. Blockchain Energy has assembled a team to begin the manufacturing of the PAS units at our facility in Sacramento. Tripac Systems has agreed to supply Blockchain Energy with components preloaded with the operating IP, the brain behind the brawn, so to speak. It's a young energetic group that I trust to make this project go. When word gets out, I expect tens of thousands of units to be coming off the line. Additional support staff will be hired as we gear up and begin larger scale production and installation. This is such a big project that we have other companies signed on and ready to support our efforts. For example, a company local to Sacramento called Fazync, owned by experienced electrical contractors will support installation of the units so that Blockchain can stay focused on the manufacturing. They envision training energy service companies across the country or ESCOs that will most likely play key roles in this project, including nationwide installations where necessary. We've already had several conversations with industry executives and I'll tell you what I tell all of them. Come to Sacramento. See the demo, talk with our team and we're confident that you'll be just as excited as we are about this project and its massive revenue potential.
Q: Why do you say that with such confidence?
A: Let me put it to you this way. What I would consider to be low hanging fruit for this project would be your mid-level manufacturers, big box stores, etc. Our estimation is that there are approximately 66,000 of these types of accounts in California alone. We've estimated that the cost savings to the utility company for each unit installed is a conservative $9,000 to $16,000 per month. Per month. All of our projections are built around a conservative $3,000 per month per unit being captured by Blockchain, so you do the math and like I said, that's just one state. Once word gets out, this will be in high demand.
Q: So now you've hit on another question. How do you keep up with that demand?
A: Well, first things first. Our initial plan is to build out 100 units, some of which may end up as installations in two or three locations where there's already an interest. The majority of those initial units we plan to install in a consolidated geographical area in order to allow one utility company to see not only the 20% or so savings behind the meter, but also the 20% of so savings from what's currently being provided as burn-off that's contributing to line congestion. I'm convinced that this is key to the utility companies seeing the true value of the PAS units and why they will come to see the units as invaluable to their bottom lines.
Q: So back to demand. How does a start-up company handle the demand if it gains the traction you're expecting?
A: At some point, our manufacturing facility will most likely become a training unit. In other words, if the demand is great enough, we could very well have utility companies contracting with us to build the units themselves. The final installation of the computers and software would still remain in house and proprietary, but 90% of the build out and installation could be done by a contract manufacturer that would build to our specifications on a much larger scale and at a much faster pace.
Q: So if I understand this correctly, Tripac Systems is your company, Blockchain Energy is the manufacturing arm of this project, companies like Fazync will handle installation, the ESCOs may serve as middle men I guess and Tripac earns a residual royalty for all of the work completed by all involved, is that correct?
A: You've got it. That sums it up pretty nicely.
Q: Well, Mr. Widner, there's all sorts of information floating out there about PAS, and Tripac and Fazync and Blockchain and some of it goes back decades, so I'm grateful to you for clearing this up for us. Anything else you'd like to share with us as we wrap this up?
A: I'll just leave you with this. I've watched the electrical utilities industry struggle with the inefficient power consumption issues for the entire 25 plus years we've been working on this solution. While countless dollars have been lost to this phenomenon, countless more have been spent trying to find solutions. Plus, I think the electric utility market needed to mature to a point that it fully understood the threat that wind and solar creates to their business model and the strain on the grid.
Over almost three decades, I've witnessed the utilities deploy numerous policies and offer various incentives to entice the end user to fix their own inefficient power consumption issue. I've seen gimmicky products come and go and had we approached any of these companies before we were ready, we'd have been lumped in with the rest of what most consider to be those types of gimmicky products. Without a viable plug and play solution ready for market, we would not have been taken seriously. It's been a long time coming, but now is our time.
We have the right team in place with Blockchain Energy, a huge facility in Sacramento with expansion space available, several support companies lined up or being lined up, contacts being made and we could not be more excited about where this project is headed. The electric utility market has reached the stage where after trying for decades to fix this problem, they are now complacent and have simply accepted the inherent inefficiency of power consumption. They've accepted this fate and most think the problem is unsolvable and have built in a 30-40% inefficiency to their business model as a result.
But times and circumstances do change, my friend and I'm here to tell you that when you think about the impact this technology will have across the country, the world for that matter, at some point you'll begin to feel as positive as I do that this will be one for the record books.
Souce: Vortex Brands Co.
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