READ and LEARN, Rhombic Corporation
Symbol: NUKE
Exchange: OTC:BB
Suite 901, 1212 Howe Street
Vancover, BC V6Z 2M9
Ph: (604) 683-4864
Fax: (604) 683-4814
internet: rhombic.com
Investor Relations: Mike Skerry
tel: (604) 421-5543
fax: (604) 421-5532
toll free: (888) 821-6607
Shares outstanding: 15,000,000
Restricted shares: 9,500,000
Float: 5,500,000
Market Makers: DLCR, FRAN, HILL, MASH, MHMY, NAIB, NATC, NITE, OLIE, PBLC,
PGON, SHRP, SOLA, USCT, WDCO, WEIN
Certified Public Accountants: King and Weber, Phoenix, Arizona, USA.
Transfer Agent: Nevada Agency & Trust Company, Reno, Nevada, USA.
Incorporation took place in the state of Nevada on February 26, 1987, by the
predecessor company which was acquired by Rhombic Corporation on November 21,
1994.
Rhombic Corporation is a company engaged in the business of seeking and
acquiring proprietary technologies with applications greater than $100
million, with the objective of incubating them, and then bringing them to
commercialization. Rhombic scientists have developed several ground-breaking,
unique technologies.
Inertial Electrostatic Confinement Fusion Technology (IEC)
Dr. George Miley, who is a professor of nuclear, electrical and computer
engineering at the University of Illinois, has patented a neutron generator
(a fusion machine), currently in commercial production through an agreement
with Daimler-Chrysler Aerospace, which unlike any other fusion machine, is
small enough to sit on a desktop, can be switched on and off at will, and
which produces extremely minute amounts of radioactive waste. It is a small
metallic football shaped sphere and it's primary purpose is not to make
energy but to generate neutrons. Billions of them a second. Neutrons are
subatomic particles with no electric charge that have an extraordinary range
of uses such as: 1) To analyze materials, neutrons can be used to identify
most common elements in a matter of seconds versus chemical analysis which
can take hours 2) Neutrons help scientists to work out the structure of new
molecules and crystals 3) Neutron particle beams are being used for cancer
treatment and I have been told that the IEC unit has now surpassed 10^9 power
neutrons per second, which is powerful enough for that purpose 4) Mining
companies can use the neutron generator to spot impurities in ores while
still in the process of being mined 5) Specialized metal smelters will use
them to monitor the composition and quality of metal alloys in real time.
Other Practical Applications for IEC Technology
•Experimentation with fusion at university laboratories •Analysis of mineral
quality in the coal, cement and similar industries •Exploration for minerals
and oil •Detection of non-metallic antipersonnel mines (land mines)
•Combustion and gasification •Generation of electrical energy •Detection of
contraband at airports, bus stops, train stations and similar areas
Until now neutrons have been extremely dangerous and difficult to generate
and required the use of a nuclear reactor or a high powered particle
accelerator to do the job and neutron analysis could only take place by
utilizing the expert facilities of a very few specialised laboratories. The
IEC unit produces neutrons more cheaply and safely than existing methods.
According to John Sved, an engineer with Daimler-Chrysler Aerospace, the IEC
units are safe and easy to use which gives them an edge over other well
established neutron sources. The neutron generating sources in use now
contain radioactive gases such as Californium and have a risk of
contamination from radioactive isotopes. With the IEC unit customers can
avoid these risks because they are fueled by harmless deuterium, and the only
waste is helium-3 gas, a hint of hydrogen and negligible traces of
radioactive tritium. "A small IEC neutron generator could run for decades
without creating enough radioactive waste to exceed minimum regulated
levels," Sved says. "The machine could be completely consumed in a fire and
there would be virtually no concern about escaping radiation." Daimler-Benz
(Chrysler) plans to remove the tritium from the spheres safely each time they
are recharged with fresh deuterium.
Through Rhombic's wholly owned subsidiary, Rockford Technology Associates,
the University of Illinois has licensed the technology to Daimler-Chrysler
Aerospace (DASA) of Trauen, Germany, for which Daimler-Chrysler will pay a
3.2% royalty to Rhombic Corp. For the rights to develop, manufacture, and
market the IEC technology to the world. This agreement provides Rhombic with
a long-term royalty on all IEC sales in Europe, Asia, Africa, South America,
Australia, and New Zealand in the amount of 3.2% for each unit sold. Rhombic
is estimating that they will receive $5 million in royalties into the year
2000 (which does not include the much larger prospective income from
Rhombic's marketing rights in North America). The first units are expected to
ship from Trauen in the first half of 1999. The IEC units will be sold,
depending on size and use, for between $60,000 and $150,000 each - a mere
fraction of the cost of the nuclear reactors or particle accelerators now
being used to produce neutron beams. Rhombic Corp. will retain all rights
throughout North America and will be actively pursuing the sale of those
rights.
At $60,000 per unit x 3.2% = $1,920 per unit in royalties to Rhombic. At
$150,000 per unit x 3.2% = $4,800 per unit in royalties to Rhombic. Not bad.
2,604 units at $60,000 per unit would yield $5 million in royalties projected
over 1 year. 1,042 units at $150,000 per unit would yield $5 million in
royalties projected over 1 year. To make $1 million in royalties for Rhombic
on the $60,000 unit Daimler would only have to sell 521 units. And on the
$150,000 unit only 208 units would have to be sold. None of these appears to
be an unattainable goal. The only hitch has really been a nearly one year
delay in getting everything ready for marketing due to the merger of
Daimler-Benz with Chrysler.
My understanding of the contract is that Daimler would make an accounting
about 6 months after initial shipments began. We have the first payment of
royalties which was announced on May 20, 1999. It is a couple of months
overdue but it has been received. This means that shipments have begun which
is another milestone.
Special Update - On May 20, 1999, Rhombic announced that it had received its
first annual report in accordance with the 1996 license agreement between
Daimler- Chrysler Aerospace (DASA), the University of Illinois, and its
wholly owned subsidiary Rockford Technologies (RTA).Highlights of the report
produced by DASA's new FusionStar unit includes development of the inertial
electrostatic confinement device (IEC) as a point source neutron generator to
the commercial stage.
Market interest for the IEC neutron generators continues. Presentation and
test site demonstrations have been made to a number of prospective original
equipment manufacturer customers. The applications of the IEC demonstrations
included ON-LINE MINERAL ANALYSIS, SECURITY INSPECTION SYSTEMS, and LAND MINE
DETECTION. In all cases, the prospective customers responded with technical
requirements.
The technical collaboration continues between the University of Illinois
Fusion Studies Laboratory and DASA FusionStar. The goal is to scale up the
fundamental research support and to enlarge the FusionStar development team.
IEC may be further developed for: * An optical gas mixture that provides
higher neutron energy and flux. * A pulsed neutron generator that provides
higher neutron flux and pulsed mode operation. * The line source chamber that
will be pulsed
Forced Diffusion Diamond Process
Rhombic Corporation holds Patent #5,597,762, covering the "Forced Diffusion"
diamond technology and which was issued January 28th, 1997. The United States
Patent Office received Rhombic's diamond patent application September 27th,
1994.
Rhombic Corporation's doped negative type (N-type) diamond technology, often
referred to as forced diffusion, has been successfully etched in a former
Soviet Republic laboratory to create two functional integrated circuits. This
breakthrough by Rhombic in successfully diffusing different elements into
diamond film produces a diamond with electronic properties greatly superior
to those of silicon, the material now used to make computer chips. This
proprietary technology is theoretically so powerful that a computer chip
operate hundreds of times faster than silicon. In addition, such N-type films
are considerably more resistant to heat and radiation than silicon, extending
indefinitely the life of electronic circuitry. This means not only ultra
fast integrated circuits and chips, but also diamond diodes and switches,
resulting in a complete revolution of today's computers.
This technology will have a broad impact on the existing diamond film market,
currently about $100 million and growing at a projected rate of 10 percent
per year. Applications range from computer and TV screens to diamond tools
and coatings for high-fidelity speakers. The total market for cutting tools
worldwide in 1991 was $250 million, of which $102 million was diamond
material. The projected sales of diamond electronics, currently about $6
million a year, is expected to reach $500 million by the year 2000. This
market is by far the most dynamic in the diamond film industry.
Rhombic Corporation has established ties with an International company, and
is working on an agreement to dope white mined diamond with boron to see if
the properties of the more economical white diamond can be modified to match
that of mined blue diamond. In addition, Rhombic is pursuing agreements with
other companies to develop applications based on material modification by the
addition of impurities. The market for boron-doped diamond film for the first
year is projected to be in excess of $30 million, with markets exploited by
Drunker, DeBeers of Europe, and Norton Diamond of the United States.
Nanophase diamond powders are a new material that was developed for the
Russian military program. It is a diamond powder made up of very small pieces
of diamond with a narrow distribution of sizes about four nanometers in
diameter. Rhombic is developing a process to press and bind the nanophase
diamond powder to form a hard material. The forced diffusion process can
change the mechanical properties of diamond grit by boron doping, making the
grit 10 to 15 percent harder than ordinary diamond grit. The market for
diamond grit is approximately $70 million a year.
With the release of the Patent "Field Enhanced Diffusion Using Optical
Activation", Rhombic Corporation is preparing to establish its first
manufacturing/laboratory site at Columbia, Missouri, to produce Positive (P)
type diamond film, and to finalize the development of Negative (N) type
diamond.
By diffusing certain elements into the diamond interstices, Rhombic has
already created a number of integrated N-type diamond circuits, and has
immediate plans to produce diamond diodes and switches. Diamond is unique
among all materials since it is both heat and radiation resistant, and is so
electrically conductive that diamond chip speed is potentially a thousand
times faster than silicon. Harder cutting tools and abrasives, diamond tv
screens and computer monitors, sensors, bearings and radar are among a number
of potential applications of doped diamond which Rhombic Corporation will be
developing.
Special Update: On April 14, 1999, Rhombic announced a six weeks feasability
study being produced by three major computer corporations on the applications
and economic viability of Rhombic's diamond technology.
The Nuclid Battery
The nuclid battery which is a more advanced version of the nuclear battery,
owned 100% by Rhombic Corporation, produces energy from the breakdown of
unstable isotopes of a number of basic elements such as Krypton, Strontium,
and Cesium. The battery's single purpose is to provide a generation or more
of constant energy for both manned and unmanned space flights to nearby
planets and eventually outer space.
Special Update - On April 9, 1999 a special report was released on the Nuclid
Battery which stated, "Recent planning among the Russian and German
co-inventors of the Rhombic Radio Nuclid Battery (Dust Plasma Battery)
includes information about extensive experiments by the Russian Academy of
Sciences with anticipated new runs on the MIR Space Station.
Members of the forthcoming International Space Laboratory, after docking its
third module, and scheduling astronauts for the year 2000, will provide a
priority experiment in space to be performed by the Rhombic Dust plasma
Battery.
The last experiments in the MIR space station were continued throughout
January 1999, and are still being evaluated at present. One of the first
experiments in the manned flight in early 2000 will be on dust plasmas. A
Russian team will cooperate in the experiment with a team from the Max Plank
Institute in Germany.
Dr. Heinrich Hora, representing Rhombic Corporation, recently initiated
contact with the International Computer and Communication Corporation (IC&C)
in Reston, Virginia, for promoting the Battery for use among the low orbiting
communication satellites to be launched in the near future for the fast
expanding cellular and internet business. Large-scale development and mass
production of the Battery may neccessitate the involvement of a large
satellite company or a consortium of them. Doctor Hora's contacts with
communication companies, in particular IC&C, may help Rhombic in these
developments.
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