Gibbs

RAPID PRECISION LIQUID HEATING TECHNOLOGY PORTFOLIO

AVAILABLE FOR SALE OR LICENSE

Hilco Streambank is seeking offers to acquire or license the intellectual property portfolio and related assets of Heatworks Technologies, Inc. (the “Company”). The Company developed and commercialized novel heating technology for water and other fluids that is faster, more precise, and more efficient than conventional electric heating methods. The Company’s assets include a portfolio of more than 91 utility and design patents registered internationally, trademarks, CAD and other design files, product prototypes, test data, and additional related tangible and intangible assets (collectively, the “Assets”). The possibility exists to license some or all of the Assets in specific fields of use. Finished inventory which embodies the commercialized technology may also be available. The Assets are being offered on behalf of David Baker, the Company’s court- appointed receiver (the “Receiver”).

BID DEADLINE

December 1, 2022

AUCTION

December 8, 2022

Technology Overview

Traditional electric water heating technology involves the direct immersion of a metallic heating element into a water tank, which is then heated up to 800°F in order to slowly heat the surrounding liquid. This superheating dissolves and fuses surrounding solids, which causes mineral scaling around the element. This scaling reduces efficiency by as much as 50%, slows response time, and shortens the useful life of the water heater.

The Company has developed and patented “Ohmic Array Technology” that utilizes strategically placed graphite electrodes and electronic controls to pass controlled electric currents through any surrounding conductive liquid, utilizing the liquid itself as the electrical resistor. The process converts the electrical energy into thermal energy, thereby nearly instantaneously raising the temperature of the liquid passed through the electrodes to within (+/-) 1°F of the desired temperature. The graphite electrodes do not retain heat and therefore resist mineral scaling. Click here to watch a demonstration of Ohmic Array Technology versus traditional heating elements.

 
Gear Box

Patented “Heat Exchanger” technology further utilizes Ohmic Array Technology to heat a controlled, conductive liquid within small, interweaving, self-contained tubes, which allows other liquids (not just water), or even air, to flow past the tubes to become quickly and precisely heated. A core benefit of this application is the ability to heat liquids with varying degrees of conductivity—brewed coffee, for instance—while providing heat through a controlled and contained liquid with known and constant conductivity. The Company has also developed technology called “Gear Box” which extends the Ohmic Array Technology applications by adding a method to vary AC voltage supply, thereby allowing for much finer control of power across a significantly wider conductivity range.

Heatworks Icons

The addressable market and potential licensable fields of use for the technology are wide-ranging. Any device utilizing electricity to heat liquid will benefit greatly from this technology, which can quickly, efficiently, and consistently heat liquids within a range of 100°F and 212°F (and can even generate steam) at continuous or fluctuating flow rates.

Technology Overview Icons
Model 3

Successful Commercialization and Immense Growth Potential

MODEL 3 Tankless Water Heater

The MODEL 3is a first-of-its-kind, smart, electric, tankless water heater that applies the Ohmic Array Technology to provide endless hot water on-demand. Click here to watch more about the benefits of the MODEL 3. The unit installs like any other consumer tankless electric water heater but comes with the added benefits of unmatched heating precision and speed, water cleanliness, and durability. An installation video is available here. The MODEL 3 addresses ongoing regulatory initiatives targeting the reduction of home water tank sizes, eliminating the use of gas- or oil-fired heating solutions, and implementing more energy-efficient technologies.

 

Commissioned Research & Development and Downstream Licensing

The Company has garnered significant recognition and has earned a number of commissions to research and develop product prototypes for additional applications of Ohmic Array Technology, such as under-sink water heating solutions, pool and spa heating, instant tea kettles, and more. These projects provide an exciting and lucrative possibility to utilize the technology in a model that will generate further licensing revenue from commissioned product developments.  

In addition to the already commercialized MODEL 3 and proof of R&D and licensing business model, the Company has also developed a unique, countertop dishwasher, the Tetra,2  which only requires a power outlet, and no separate water supply or waste line connections. The Company estimates the Tetra can be finalized for commercialization within 12 – 18 months, with the opportunity for acceleration as desired. Click here for a product demonstration.

Dishwasher
Hot Beverages

Hot beverages such as coffee and tea present a sizable market opportunity. One application includes the concept for a dual-sided carafe with an instant hot spout, set to desired temperatures and heated by Ohmic Array Technology, and a cold spout for pouring the beverage at its current temperature. The Company has patented the design for the DUO Carafe and has created a prototype of the vessel. Click here to watch a prototype in action. A buyer or licensee would have a significant head start in developing this product. 

Temperature Scale

Innovative Technology Protected by Extensive Patent Portfolio 

The Company’s Ohmic Array Technology, which is protected by multiple fundamental patents globally, serves as the foundation upon which additional patent families have been built. Each of the families, which include all commercial and numerous pre-commercial products and technologies, are covered globally by this robust portfolio of utility and design patents. Given the proven and successfully commercialized concept of the Ohmic Array Technology, possible future applications in the field are substantial. 

The Company has conducted this meaningful research and development domestically at a facility located in Mount Pleasant, South Carolina, which remains operational. A small team of engineers with substantial product and technology know-how continue to innovate at the facility, including a project to update and improve upon the existing embodiment of the MODEL 3. Current employees and contractors may be available for product demonstrations and technology Q&A and have indicated an openness to discussing ongoing support to a buyer or licensee of the Assets. The possibility exists to tour the facility and observe prototypes and finished products upon request.

Assets Available for Acquisition and/or License 

The following Assets are available for acquisition or license, including licenses in specific fields of use:

  • Patent portfolio consisting of more than 91 utility and design patents registered in more than 30 jurisdictions, including the U.S., the E.U., China, the U.K., Japan, and more than 80 additional patents pending, allowed, or published
  • CAD files
  • Test data
  • Prototypes, including MODEL 3, Tetra, DUO Carafe, Heat Exchanger, and Gear Box
  • Proprietary software code
  • Trademarks
  • Domain names, including myheatworks.com 
  • Related materials and information
  • Limited MODEL 3 inventory 
  • NOL carryforwards may be available

Sale Process

Bids are due on December 1, 2022, and an auction will be held on December 8, 2022. The Assets are being offered for sale or license on behalf of the Receiver. The sale of the Assets is subject to the terms of definitive documentation and pursuant to order of the court overseeing the receivership. Confidential information is available in a virtual data room. Please contact Hilco Streambank to learn more about this opportunity and sale process or to request a non-disclosure agreement in order to access confidential information.

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1The virtual data room contains a license agreement with respect to the MODEL 3.

2The virtual data room contains joint development and supply agreements with respect to the Tetra.