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7. Research and development
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9 Months Ended | |||||||||
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Sep. 30, 2011
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| Research, Development, and Computer Software, Policy [Policy Text Block] |
7. Research
and development
The
Company has research and development facilities in Morgan
Hill, California. The Company has tested products
incorporating our ZEFS, MK IV, ELEKTRA and AOT technologies
for multiple makes and models diesel engines, motorbikes,
boats, generators, lawnmowers, other small engines and
pipelines. The Company has purchased test vehicles, test
engines and testing equipment. The Company incurred
$379,391 and $140,486 for the three months ended
September 30, 2011 and 2010 respectively and $931,959 and
$344,581 for the nine months ended September 30, 2011 and
2010, respectively, on its research and development
activities.
Temple
University
On
August 9, 2011, Save The World Air, Inc. and Temple
University entered into two Exclusive License Agreements. One
Agreement relates to Temple’s international patent
applications, patents and technical information pertaining to
technology associated with an electric and/or magnetic field
assisted fuel injection system. The second
agreement relates Temple’s international patent
applications and patents and technical information pertaining
to technology to reduce crude oil viscosity. The
License Agreements are exclusive to the Company and the
territory licensed to the Company is worldwide. Pursuant to
the licensing agreements, the Company will pay Temple the
following:
AOT
On
July 16, 2010, the Company entered into a Letter of Intent
with the U.S. Department of Energy-Naval Petroleum
Reserve/Rocky Mountain Oilfield Testing Center (RMOTC) in
Wyoming. On December 22, 2010, a formal Agreement
was entered into with RMOTC for testing of our Applied Oil
Technology (AOT). Third-party vendors and
suppliers were used by the Company to provide the facility
construction materials and the prototype’s design
and fabrication. To conduct the testing, the Company was
responsible for upgrading the testing facility’s
existing infrastructure, located on the Naval Petroleum
Reserve #3. Design and engineering began on January 6, 2011
and construction was completed on June 30, 2011.
The
AOT Phase II testing began in July 2011 and resulted in
successful operation of the test facility, and lower
backpressure line-loss caused by the device than
anticipated. The Phase II, Stage I testing of the
prototype yielded important information and data to the
Company’s product development team for
commercialization upgrades. Costs incurred
for the testing during the nine months ended September 30,
2011 was $581,680. (See “Note 10 Subsequent
events”)
Elektra
The
Company’s ELEKTRA technology improves diesel fuel
economy in both land and marine diesel
engines. The Company’ preliminary
experimental prototypes have shown repeatable improvements in
fuel economy. Research is being conducted under
controlled conditions at the Company’s research
facility in Morgan Hill California.
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