SeaDog Systems, Inc., a Texas Corporation (SeaDog Systems), was formed on February 23, 2016 to acquire wave energy technology, products and systems and for the purpose of researching, developing and marketing technology that extracts energy from waves.
The wave energy devices that SeaDog Systems plans to finalize developing are referred to as the SeaDog Wave Energy Pump, the Fulcrum Wave Pump and the Fulcrum Pond Pounder (jointly the “Wave Energy Devices”). The Wave Energy Devices work in conjunction with another device that SeaDog Systems plans to finalize developing known as Artificial Head.
Ultimately, SeaDog Systems, Inc.’s primary focus is to sell or license these products, designs and grant the transfer of trade secrets and/or assignments of patents to interested individuals, parties or corporations.
Kenneth W. Welch, Jr. is a co-inventor of the SeaDog Wave Energy Pump technology. This technology was awarded no less than 8 patents from the United States Patent and Trademark Office, as well as numerous foreign patents. (See US Patents 6,953,328; 7,059,123; 7,258,532; 7,257,946; 7,331,174; 7,737,572; 7,584,609; and 7,735,317;). Kenneth W. Welch, Jr. and his co-inventors sold the SeaDog Wave Energy Pump and related technology to Independent Natural Resources, Inc. (“INRI”), a Delaware corporation. INRI had a professional management team and it raised substantial funds to exploit the technology, but its management never moved beyond obtaining patents for, and testing, the technology.
INRI is now defunct and the patents protecting the SeaDog Wave Energy Pumps have lapsed due to INRI’s failure to pay maintenance fees.
Kenneth W. Welch, Jr. and William P. Forster are co-inventors of the Fulcrum Wave Pump, the Fulcrum Pond Pounder and Artificial Head. Kenneth W. Welch, Jr. and William P. Forster licensed the Fulcrum Wave Pump, the Fulcrum Pond Pounder and Artificial Head to INRI. INRI was required by its license to obtain patent protection for the technology, but got no further than applying for patent protection, and the applications were not prosecuted.
INRI commissioned a third party to fabricate the components required to assemble, and it did build, three Fulcrum Pond Pounders. INRI commissioned a third party to fabricate the components required to assemble three Fulcrum Wave Pumps, but due to non-payment, the third party vendor never delivered the components to INRI.
The licensing agreement that Kenneth W. Welch, Jr. and William P. Forster had with INRI vested these devices in them should INRI fail to make its licensing payments. When INRI failed to pay the licensing fees it owed to Kenneth W. Welch, Jr. and William P. Forster, they demanded the return of the technology, including the devices.
Kenneth W. Welch, Jr. and William P. Forster successfully sued INRI through which they recovered the technology and the devices. Kenneth W. Welch, Jr. and William P. Forster hired Bays & Bays, a Conroe, Texas law firm, to handle their litigation with INRI and assigned to this law firm a percentage of their recovery.
Steven W. Keinath invested substantial money in INRI, and lent it the money used to manufacture the three SeaDog Wave Energy Pumps and prototypes. A one-fifth scale prototype was installed in the Gulf of Mexico by INRI so that it could test and demonstrate the robustness of the technology.
At the conclusion of its own testing, INRI hired a professor at Texas A&M University – Galveston to independently test a second one-fifth scale prototype that was located south of Galveston, Texas in the Gulf of Mexico. The results of the testing in the Gulf of Mexico were extremely promising.
To conduct further testing, INRI purchased a tract of land in Montgomery County, Texas where it built a 40 feet wide x 150 feet long x 16 feet deep wave pool. This wave pool permitted INRI to test not only the SeaDog technology, but also the Fulcrum Wave Pump, the Fulcrum Pond Pounder and Artificial Head technologies.
After completion of the wave pool, INRI hired a new management team. Soon thereafter, INRI became dysfunctional, primarily due to infighting, and eventually it was unable to satisfy its financial obligations, including paying the note that was secured by its real property where the wave pool is located and its ad valorem taxes.
Numerous lawsuits were filed against INRI and a group of its creditors forced it into involuntary bankruptcy. The bankruptcy trustee eventually abandoned INRI’s assets clearing the way for its creditors to sell its assets.
On February 2, 2016, SWK 1981 Trust purchased INRI’s real property at a foreclosure sale and promptly settled the tax obligation that was owed on this tract of real property. The following week, the Montgomery County Constable conducted an auction of INRI’s personal property to satisfy taxes that had been imposed thereon.
Steven W. Keinath acquired the SeaDog Wave Energy Pump prototypes, the three SeaDog Pumps that were manufactured by INRI.
SWK 1981 Trust has leased, with an option to purchase, the former INRI real property where the wave pool testing facility is located to Global Oceanic Designs, Inc. and SeaDog Systems has entered into an agreement with Global Oceanic Designs, Inc. to oversee the testing of the wave energy devices.
SeaDog Systems, Inc. has also entered into an Exchange Agreement dated April 9, 2016 with Steven W. Keinath (the “Keinath Agreement”). The Keinath Agreement grants to SeaDog Systems the developed SeaDog prototypes, three SeaDog pumps and related components. These items will be used by SeaDog Systems to test and prove the SeaDog pump technology. The Keinath Agreement grants to Steven W. Keinath 750,000 shares of the Company’s common stock.
SeaDog Systems, Inc. has also entered into an Exchange and License Agreement dated April 9, 2016 with Kenneth W. Welch Jr. and William P. Forster. This Exchange and License Agreement grants to SeaDog Systems the three Fulcrum Pond Pounder wave making machines and an exclusive license to the Fulcrum Wave Pump, the Fulcrum Pond Pounder and the Artificial Head technologies.
This Exchange and License Agreement grants to Kenneth W. Welch Jr. and William P. Forster 1,000,000 shares of the Company’s common stock. In light of the interest that the Bays & Bays law firm had in recovering the Fulcrum Wave Pump, the Fulcrum Pond Pounder and the Artificial Head technologies for Kenneth W. Welch Jr. and William P. Forster, the 1,000,000 share block was divided with 552,500 shares issued to Kenneth W. Welch, Jr., 97,500 shares issued to William P. Forster and 350,000 shares issued to J. Randal Bays.
SeaDog Systems, Inc. has also entered into a Collaboration Agreement dated April 9, 2016 with Global Oceanic Designs, Inc. (the “Collaboration Agreement”) for services related to testing, refining and commercializing and marketing the technologies.
SeaDog Systems, Inc. was formed to finalize the development of these wave driven pumping energy systems, and upon completion of the testing of the devices, the SeaDog Systems’ plan is to license the technology to third parties to use the devices in real world applications.
SeaDog Systems, Inc. firmly believes that the SeaDog, Fulcrum and Artificial Head pumping energy systems designs will revolutionize the way mankind manufactures a wide variety of pumping systems intended to cope with the significant harsh environments and corrosive conditions found in ocean wave regimes. SeaDog Systems has identified numerous uses where the technology can be used, but the primary focus is applying the technology to electricity generation and desalinization of water.
At present, it is widely accepted that wave, tidal and current technology is possibly the most readily available and abundant renewable energy in the world. It has been said that if one could harness the energy of the ocean waves alone they could easily power our world many times over. It is for this reason that Mr. Welch has spent over a decade developing wave energy device systems.
SeaDog Systems, Inc. believes it has the finest wave energy device systems in the world. Welcome to the SeaDog Wave Pump, Fulcrum Wave Pump and Fulcrum Pond Pounders along with their Artificial Head Systems, which can practically extract energy from waves, making these devices wave energy solutions.
SeaDog Systems, Inc., through its affiliation with Global Oceanic Designs, Inc. (“Global”), has access to use Global’s wave tank testing facility pursuant to a Collaboration Agreement dated April 9, 2016 that will further the final development of the SeaDog Systems’ wave technology products.
Global has leased, with option to purchase, a 7.7 acre facility on Cude Cemetery Road in Willis, Texas that is home to a 40 feet wide by 150 feet long by 16 feet deep wave pool capable of providing up to 3.5 feet sustainable wave heights in addition to a 2,500 square feet development lab. The Collaboration Agreement provides SeaDog Systems with 24 months of access to the wave pool.
This Collaboration Agreement is very beneficial in that it provides SeaDog Systems with ready access to a wave pool at a fixed cost and calls for Global to provide expertise in testing, refining and commercializing SeaDog Systems’ wave technology products.
SeaDog Systems’ research shows that wave facilities found nationwide vary in cost in the range of $1,500 to $5,000 per day, not including pool support services that range from $500 – $1,000 per day plus salaries for testing personnel of 2 to 4 persons at $600 per day. SeaDog Systems knows of no other wave pool that is available for commercial use that can produce waves of the height produced at Global’s facility.
SeaDog Systems, Inc. believes the SeaDog, Fulcrum and Artificial Head pumping energy systems will effectively lend themselves to water irrigation, desalination and energy production related applications such as grid-scale electrical production farms, grid-scale freshwater production plants and large-scale water or fluid pumping stations.
SeaDog Systems, Inc. is currently engaged in a $1,500,000.00 offering to develop and test its newly acquired systems. The company plans to license the technology to third parties to use the devices in real world applications. This offering began April 21, 2016 and since has been funded with investments of $750,000.00 sold in blocks of 50,000 shares of common stock for $50,000.00 per block to accredited investors only. SeaDog Systems, Inc. foresees the completion of its offering by year’s end.
Intellectual Property Proposal
SeaDog Systems, Inc. anticipates seeking additional patents related to advancements in the technology associated with the SeaDog Wave Pump, Fulcrum Wave Pump and Fulcrum Pond Pounders along with its Artificial Head Systems and or creation of additional technologies. Further, SeaDog Systems believes the re-designed products and systems along with design methods it seeks to develop for the manufacturing and assembling of the devices disclosed will constitute trade secrets and/or be patentable, which the SeaDog Systems will take steps to preserve.