From referen@bway.net Tue Mar 31 23:41:46 EST 1998 Article: 120203 of alt.religion.scientology Path: mistletoe.srv.cs.cmu.edu!honeysuckle.srv.cs.cmu.edu!bb3.andrew.cmu.edu!pitt.edu!dsinc!nntp.upenn.edu!newshub.northeast.verio.net!cpk-news-hub1.bbnplanet.com!su-news-hub1.bbnplanet.com!news.bbnplanet.com!pln-w!spln!extra.newsguy.com!newsp.newsguy.com!enews4 From: referen@bway.net (Diane Richardson) Newsgroups: alt.religion.scientology Subject: ATG's Patented Technology Date: Tue, 31 Mar 1998 04:05:14 GMT Organization: http://extra.newsguy.com Lines: 223 Message-ID: <3520657c.4623854@enews.newsguy.com> Reply-To: referen@bway.net NNTP-Posting-Host: p-601.newsdawg.com X-Newsreader: Forte Free Agent 1.11/32.235 Xref: skinner.boltz.cs.cmu.edu alt.religion.scientology:120203 This was taken from ATG's 10-KSB report filed for the year 1996. Note that ATG is paying Caltech for the Baser research ATG is conducting there. This and more (a lot, lot more!) can be found at www.edgar-online.com search for ticker symbol ATEG. __________________________________________ PATENTS The Company has United States and various foreign patents pending covering its combustion enhancer and United States patents have been granted and foreign patents are pending for the Delivery System, one of the components of The Force. Since December, 1993, a series of patent applications have been filed with the United States patent office by Dr. Shui-Yin Lo, the Company's Director of Research and Development, and assigned to the Company for nominal consideration. These applications delineate the foundation of a new kind of material, one of which is the combustion enhancer used in The Force. In 1995, Dr. Lo and Dr. Wang filed two patent applications relating to the low pressure distillation of water which were assigned to the Company for nominal consideration. During late 1995 and to the present, five more patent applications have been filed in the United States on applications of the company's IE Crystal technology, such as descalants, new forms of structured materials, and enhancements for biological, biochemical, and chemical reactions. PCT applications on these new inventions have been or will be filed within the standard one year deadline to protect future foreign business developments. These patent applications are pending. There can be no assurance that such patents pending will be issued. In addition, five United States patents have been granted relating to the BASER; four are held by Apricot, S.A., a Luxembourg corporation ("Apricot") (see "Research and Development - The BASER"), and one is held by the Company. There is also no assurance that, despite efforts to avoid doing so, the Company's products do not infringe on the intellectual property rights of others. RESEARCH AND DEVELOPMENT The Company has incurred approximately $599,104 and $484,788 in research and development expenses during the years ended July 31, 1996 and 1995, respectively. The BASER As of March 1, 1994, the Company entered into a License Agreement (the "BASER Agreement") with B.W.N. Nuclear Waste Elimination Corporation, a Nevada corporation ("NWEC"), for the sublicense to exploit all rights to certain technology relating to helium cluster beams and other particle beams and their sources ("BASERs") in their application to the rendering of nuclear waste non-radioactive. With the exception of the application of BASERs for the production of power and energy, if ATG identifies additional applications for the BASER technology, commences research and development efforts with respect to such applications and notifies NWEC of its intent to develop such applications, then such applications will come within the terms of the sublicense, subject to ATG marketing the application within five years of its notification to NWEC of its intent to develop the application. (See "Certain Relationships and Related Transactions.") The ability of this technology to render nuclear waste non-radioactive, or whether any other commercial application of the technology is possible, has yet to be determined and is highly speculative. Moreover, the development of this technology is likely to require a minimum of three to five years and the expenditure of substantial sums of money, likely to be in excess of $10,000,000, on research and development. Even assuming the Company can devote the necessary time and funds to such research and development, of which there can be no assurance, there can be no guarantee that the technology can or will ever be successfully developed, or if developed, commercially viable. Under the terms of the BASER Agreement, ATG issued NWEC 300,000 shares of Common Stock valued at $3.00 per share as a one-time license fee. Additionally, at such time as ATG receives an offer to purchase any application of the BASER technology for commercial utilization or ATG commences the commercial utilization of any application of the BASER technology, other than for the production of power, ATG will issue 1,700,000 shares of Series A Stock to NWEC. Further, there is a periodic royalty payment due to NWEC in the amount of 10% of ATG's net sales from ATG's exploitation of BASERs. ATG is responsible for maintaining all patents currently in place on the BASER. If ATG does not spend at least $100,000 on the development of BASERs during each fiscal year after the fiscal year ending July 31, 1994, the BASER Agreement will terminate. To date, ATG has satisfied this requirement. On July 22, 1994, pursuant to a Technology Acquisition Agreement, the Company purchased an option to acquire either Shui-Yin Lo's 50% interest in Apricot, the principal licensor of BASERs, or 100% of the technology underlying BASERs as invented by Dr. Lo, if he reacquires such rights (the "BASER Option"). The exercise price for the BASER Option is 10,000 shares of Common Stock and a royalty of 5% of ATG's net profit, if any, from the exploitation of BASERs through July 21, 1999. Additionally, if Dr. Lo has not received 1,700,000 shares of Series A Stock in connection with the Company's purchase of the Invention, as hereinafter defined, the exercise price of the BASER Option will include such shares. The BASER Option expires one year after Lo's delivery to the Company of current audited financial statements of Apricot or evidence of unencumbered titled to the BASERs. The cost of the BASER Option is $150,000 payable at the rate of a minimum of $1,000 per month. As of October 31, 1996, the Company had paid Dr. Lo $92,000 of this amount. Pursuant to the July 22, 1994 Technology Acquisition Agreement, the Company also acquired from Shui-Yin Lo exclusive right, title and interest to an invention (the "Invention") entitled "Method and Apparatus for Generating Nuclear Fusion Energy by Coherent Bosons" for which application for Letters Patent of the United States was filed on December 2, 1991. In exchange for the Invention, the Company granted Lo an Option to acquire 450,000 shares of Common Stock at $3.00 per share, fair market value of the Common Stock on the date of grant, and, at such time as ATG receives an offer to purchase the Invention as developed by ATG for commercial utilization or ATG commences commercial utilization of any application of the Invention developed by ATG, ATG agreed to (i) issue to Lo 1,700,000 shares of Series A Stock and (ii) pay to Lo a royalty at the rate of 7.5% of ATG's net profit from the exploitation of the Invention. If Dr. Lo receives the 1,700,000 shares of Series A Stock upon exercise of the BASER Option, then Dr. Lo will not receive 1,700,000 shares of Series A Stock if the Invention is commercialized in accordance with the foregoing criteria. Dr. Shui-Yin Lo , a leading physicist and researcher in the field of particle physics, began conducting research into the behavior of coherent subatomic particles in the early 1980s. His research has produced certain results that indicate that it may be possible to create a stable beam of coherent heavy particles known as bosons. Dr. Lo refers to this beam as a BASER because it is like a laser (which stands for Light Amplification by the Stimulated Emission of Radiation) but instead of light utilizes bosons. Dr. Lo theorizes that by accelerating the coherent bosons in a BASER, extremely high levels of directed energy may occur, however, there can be no assurance to this effect. According to the theory, the extremely cold beam may be able to break down molecules or even atoms and their nuclei or used for rock drilling, medical surgery or precision cutting of metals without distortion or loss of heat treat properties. The foregoing potential applications are based upon the theories of Dr. Lo. No evidence exists substantiating these potential applications of BASERs or that BASERs can be produced at all. No assurance can be given that the Company will develop BASERs or that if developed, they will have any of the above stated capabilities or any commercial applications at all; however, the Company intends to raise funds to continue its research in this area. The Company entered into the Research Agreement with CalTech for a one year term commencing May 1, 1994, although actual performance by CalTech was delayed until July, 1995. The Research Agreement is based on a proposal by CalTech for a three year, $517,406 study to characterize the BASER source and to analyze the properties of the ionized clusters that are formed from the free expansion of ionized superfluid helium produced by this source. The second year of the research program commenced in January, 1996, with a commitment by the Company of $234,974 in funding. Dr. Lo, the Company's Director of Research and Development will participate in the research with CalTech. The Company will acquire a nonexclusive, nontransferable, nonsublicensable, irrevocable license to any invention or discovery reduced to practice under the Research Agreement. However, the Company has the right to the first offer of an exclusive-royalty bearing license for such invention or discovery upon terms to be negotiated at the time of the offer. Additionally, if any invention or discovery results in part from the expenditure of research funds of the United States government, which may occur, the United States government will have certain rights thereto. In October 1996 a paper was submitted by Professor Mitchio Okumura of CalTech to the Journal of Applied Physics in which he details the results to date of his work on the BASER prototype at CalTech. That journal has not yet announced whether or not it will publish the paper. These results confirmed that energetic helium beams can be generated by a pulsed corona discharge, which is a fundamental of the BASER theory and patent. This significant milestone at CalTech implies that the BASER corona source may prove to be simpler, more compact, and more versatile than the laser-detonation sources currently being developed for applications in semiconductor etching. That BASER is shown to be a particle generation source, another fundamental of BASER theory, implies that BASER could be a means of space and rocket propulsion. Research continues at CalTech on BASER. NEW STABLE FORM OF WATER The Company has achieved the discovery, identification and characterization of a novel crystal of water, stable at room temperature and pressure. Normal ice occur at below freezing but not at room temperature. ATG created a cluster of stable ice, which it calls the IE crystal (ice that is formed under an electric field). This discovery is the result of a joint venture research program with ATG and Prof. Li Wen Chung and Prof. Xu Cheng of Zhongshan University in China. ATG has been involved in four years of self-funded research to isolate and manipulate nanometer sized molecule electrical forces inherent in nanosized particles. These electric fields, although only extending a few billionths of a meter, are analogous to forces generated by 100,000 volts applied across one millimeter. Because of the many long-term ill effects that have been linked with certain chemical industrial processes, ATG began its own research into alternative ways of creating the bonding energies necessary for chemical reactions. By utilizing ATG's own laboratory, along with university facilities at CalTech in Pasadena, UCLA and Zhongshan University in China, ATG's scientists have developed numerous new commercial and industrial products from what their scientists have named Nanotricity, a combination of the word nanometer and electricity. Nanotricity is defined as the study of, use and manipulation of strong electrical forces inherent in certain molecular structures. The I(E) crystals of water have potential applications in numerous fields. Initial studies by the Company indicate that IE crystals may increase some bacteria growth by more than 300%. Professors Senkan and Bonavida of UCLA are working with ATG on applications of IE crystals to the enhancement of chemical processes and medical areas, respectively, and ATG is currently performing tests with a Florida based enzyme producer to quantify the biological growth enhancement capabilities of IE crystals with fungus, if any. Substantial research is still required to develop marketable products incorporating IE crystals. There can be no assurance that IE crystals have applications as indicated, or any applications, and even if IE crystals do have such applications that such applications will be accepted in the marketplace or be commercially viable.