If you are interested in purchasing the Patented PowerSki JetBoard Product through a legal, authorized source please refer to Patent Owners Website:
http://www.jetboard.com
If you were contacted by any company selling illegal knock off of the Patented PowerSki JetBoard products, please forward you information to the founders/patent owners group of the PowerSki JetBoard and Engine Technology-Hydroforce Group LLC via email: jetboardtech@gmail.com.
Anybody selling and/or buying the Patented PowerSki JetBoard products via sources not approved by the patent owners group of the PowerSki JetBoard Technology could be subject to litigation and/or patent infringement violation.
The Hydroforce Group LLC are the original founders group and Patent Owners Group of the Patented PowerSki JetBoard and Engine Technology.
According to the Paragraph 6.5 termination clause of the 1995 licensing agreement awarded to PowerSki International Corporation (PSI, or PSI Corp.) by HydroForce Group, LLC, the license was revoked from PowerSki International Corp back to Hydroforce Group LLC on March 9th 2010.
Subject: Revoking of the license and ownership of the patented PowerSki JetBoard Technology.
Historical Overview
According to the Paragraph 6.5 termination clause of the 1995 licensing agreement awarded to PowerSki International Corporation (PSI, or PSI Corp.) by HydroForce Group, LLC, the license was revoked from PSI on March 2010 based on the insolvency of PowerSki International Corp. The former licensee PowerSki International Corp can no longer sell the Patented PowerSki JetBoards, Engines and/or parts.
PSI, the former licensee, had 7, well documented, hostile attacks and attempts to steal the Patented JetBoard Technology. FBI has helped PSI twice in the past in two of these 7 events.
The former licensor PSI, sub-licensed 6 limited assembly manufacturers to manufacture the Patented PowerSki JetBoard. The only limited licensed assembler that ever produced production boards was PSI and All American PowerSport from Moses Lake, Wa. This is well documented and PSI has historical license agreements in it’s possession.
We have information, proof and believe that there was a complex sequence of events and attacks beginning in 1998-2001 with hostile takeover from Tsunami JetBoard company, with an attempt to steal the Patented PowerSki JetBoard and Engine Technology.
The Tsunami JetBoard attack involved employees, R&D employees and technicians, executive management, several Board of Directors, Investors, Dealers and others. Their initial attack was a pre-mediated plan with a hostile takeover of the company and the Board of Directors to completely dissolve and destroy the Hydroforce Group LLC. When this first stage of their pre-meditated plan failed they continued with the second phase. The second hostile attack was to turn PowerSki International Corp into government agencies by submitting false slanderous lies. When this second phase failed, the 3rd stage was to launch 2 frivolous lawsuits by 2 small dealers and investors. These frivolous lawsuits were designed to slander with false allegations to destroy the reputation of the CEO Bob Montgomery, PowerSki International Corp and it’s product.
All this was pre-meditated plan to drain all the financial resources of a small R&D company-PowerSki International Corp for their own personal gain.
Simultaneously this group formed a corporation called Tsunami Jetboards in september of 2000. This group copied Powerski International Corp’s business plan and inserted their company name-Tsunami Jetboards in place of PowerSki International Corp. We have information, witnesses and believe that Tsunami Jetboards hijacked Powerski website to re-route to their website the sales calls, leads and solicit investment. They were able to do this, because they were PowerSki employees and had the confidential codes.
This company was also using PowerSki International Corp’s JetBoard Video with their name on Powerski International Corp’s video called “Stack’em and Pack’em” with “Tsunami Jetbords” name on it and with Bob Montgomery along with other employees riding in the video on the Patented Powerski JetBoard.
This group of conspirators mentioned above including but not limited to PowerSki International Corp’s employees, R&D employees and technicians, executive management, several Board of Directors, Investors, Dealers and others initially solicited investors for Tsunami Jetboards by using former licensees PowerSki Int’l Corp business plan, customer data base, Patented Powerski Jetboard Technology, while working for Powerski International Corp at the same time.
Once they had their interest with Powerski’s Technology then they replaced the documents with the Tsunami Jetboaeds’s business plan and videos, fraudulently bating and switch, which as mentioned above was a modified/stolen PowerSki International Corp’s business plan and video. Their plan was to stop all investment funding in Powerski International Corp and to secure investment in Tsunami Jetboard Corp to make a competing JetBoard called the Tsunami JetBoard stealing and copying the Patented PowerSki JetBoard Technology.
The CEO of Tsunami Jetboard Corp was also a VP of East Coast Sales for PowerSki International Corp at the same time and the President of Tsunami Jetboard Corp was also a VP of PowerSki International Corp, in charge of investment relations and also a board of director of PowerSki International Corp at the same time.
This VP of investor relations also afterwards launch the first EDD case for back due wages against Powerski International Corp, which Powerski International Corp settled, because of the legal fees and the need for moving forward. These conspirators of Tsunami JetBoards Corp launched slanderous attacks to California Dept of Corporation, which spanned a formal Department of Corporation/Securities Audit, which Powerski went through with 100% perfection against these blatant lies and fraudulent hostile tactics. The 2 frivolous lawsuits mentioned above were also settled because it was less expensive than a long expensive court battle. Tsunami JetBoards Corp was dissolved.
PowerSki International Corp turned this group into FBI in June 2001 to FBI agent Neil Sahba. When the FBI agent decided to take the case and begin the formal investigation. The preliminary FBI investigation found numerous criminal activities through the surveillance to formally begin the FBI investigation and sting operation.
When Mechanic/Engineer R&D Manager employee Skip Ripley saw FBI taking this case very seriously, he decided to provide evidence in a sign, sworn statement to the FBI regarding this groups illegal activity (see attached Ripley statement to the FBI).
FBI launched an official investigation lead by FBI agent Neil Saba to try to solve this case. Unfortunately the events that took place on September 11 2001, the terrorists attack on twin towers in New York, ceased the FBI investigation on Tsunami JetBoards, because “They had bigger fish to fry”. This Agent was one of the very few Arabic speaking FBI agents. It is very sad that events on that this terrible day allowed this conspirators to escape justice. Further more we have information, proof and believe that this group could have been a part of all the rest of pre-meditated hostile take over attacks mentioned in this document.
Please note that we believe and have proof, evidence, witnesses, emails, etc that this was the blueprint, which allowed these and other conspirators to re-group for a pre-meditated hostile 3 stage plan to steal our technology and copy our Patented Products-the licensed “JetBoard Technology”.
These documents relating to Tsunami JetBoards and their hostile attacks were on PowerSki International Corp’s confidential proprietary legal files, etc. Employees were reading this information after they signed Non-Disclosure/Non-Compete Documents and they devised their own hostile take over plans to steal the technology based on Tsunami’s approach with their own little creative twist.
Skip Ripley, the head of R&D for PowerSki International Corp continued on and presented his plan and/or was solicited by Nova/X-Board as seen below.
That included Nova X-Board’s premeditated, well documented, plan to steal HydroForce’s patented technology. The expenses of approximately 4 years of legal battles against the Nova X-Board manufacturer, the high overhead, the high cost of goods, beta boards loan debt, lack of major funding for sales/marketing/production/R&D, EPA restrictions, slanderous attacks, torturous business interference and vendor debt contributed to former licensee’s PSI’s insolvency. The former licensee, PSI, has not been able to sell in the USA, after a conspirator’s complaint to the EPA in early 2004 hindered PSI’s domestic sales. PSI was working to bring the Jetboard’s Flat Engine Technology into EPA compliance until it became insolvent.
Similar to the above mentioned Nova/X-Board pre-meditated attack, we believe and have information, proof in form of emails, informants, websites, videos, photographs, etc that these conspirators and other entities involved in this unfair, unlawful, fraudulent business practices, patent/trademark/copyright infringements could be alleged by former licensee Powerski International Corp, it’s investors, it’s Board of Directors, the Hydroforce Group LLC (the patent owners/the licensor) and the inventor.
We believe and have information, proof in form of emails, informants, websites, videos, photographs, etc, that the true intent from this current group of conspirators including, but not limited to several ex-employees of former licensee PSI, some dealers, distributors and investors and others, from the beginning was to misappropriate technology, research, resources and other proprietary information to reverse engineer/copy the Patented Powerski Jetboard.
The HydroForce Group LLC, the patent owners, and the former licensee, PSI, have investigated these matters, have information, proof in form of emails, informants, websites, videos, photographs, etc and believe that this group of international conspirators and other unlawfully conspired and personally acted to damage and/or acquire Powerski, it’s proprietary technology and confidential information concerning its products, markets, reputation, distributors, dealers, consumers, suppliers, manufacturers, financiers, shareholders, directors, officers and employees. This investigation established through witnesses testimonies, video records, websites, photographic evidence, email records and documents recovered and provided through informants.
Each of these individuals and entities involved in this scheme have signed Dealer, Distributor, Investor and Non-Disclosures/Non-Compete Agreements with former licensee Powerski International Corp. Examples, of some, but far from all, of these individuals believed to be involved in the alleged conduct attached in Exhibit A. Despite these agreements this group of above mentioned conspirators and other, conspired in accordance with a written plan to secretly subvert PowerSki’s management and employees to copy and manufacture a knock off product product, to sell it world wide and steal The Patented PowerSki JetBoard proprietary market
The HydroForce Group LLC, the patent owners, and the former licensee, PSI, have information, proof in form of emails, informants, websites, videos, photographs, etc and believe that several ex-employees of former licensee PSI, some dealers, distributors, investors and others conspired in a premeditated plan to knock off the patented Jetboard product in China for their personal gain. In late 2008 the former licensee Powerski International Corp management discovered Chinese company manufacturing illegal copies of the Patented PowerSki JetBoard.
This international group has been for the last 3 years and is currently selling these illegal copies of the patented Jetboard around the world without paying the inventor’s royalties, from the former licensee, Powerski International Corp, its profit margins. Currently this group of conspirators continues this well documented illegal sales without paying HydroForce Group LLC (owners of the patents) its profit margins and Inventors royalties. There is no control over the exclusive worldwide sales made by this manufacturer of the knocked off patented PowerSki Jetboard. Anybody in the world can buy these knock off Jetboards direct from the factory in China and we know and have proof that they are currently doing so.
The afore-mentioned conspirators made premeditated slanderous attacks by setting false, slanderous websites against former licensee PSI and it’s CEO Bob Montgomery, for their own profit and personal gain. These websites were pre-meditatedly designed and instituted torturous business interference to drive away potential investment in former licensee PSI intentionally causing a lack of sufficient funding and financing in order to destroy the former licensee PSI.
These above mentioned conspirators are illegally marketing, buying and selling world wide the illegal copies of the Patented PowerSki JetBoard from the knock off factory in China and profiting without paying the former licensee Powerski International Corp and the existing license holders-The Hydroforce Group LLC and the inventor.
These conspirators have also setup slanderous website, based on their pre-meditated plan, so PSI the former license could not build any new products, or defend it’s technology. Their plot was to make the former licensee PSI insolvent and create frivolous law suits, so they could continue to sell knock off jetboards for their personal gain. Adding to these factors was the downturn of the current world economy.
Also contributing to PSI’s insolvency was inactive international distributors not selling the available production Jetboard products, and not being willing to accept available financing from the limited licensed assembler for their production product.
This is very unfortunate for the good people, who supported former licensee PSI. Many good families, Bob Montgomery’s, Jim Walker’s and Brad Maier’s family, along with others, were hurt by this situation. The former licensee owes approximately $1,000,000 in back due pay and loans to former CEO Robert E Montgomery.
Robert Montgomery borrowed personal money for PSI as loans to try to pay for the back due corporate office lease, which he personally signed. Bob Montgomery, former CEO signed personally and as a CEO settlement agreements for Powerski back due legal fees based on the commitments from the investor/former limited license assembler. The insolvency of the former licensee, PSI, has caused the Montgomery family great financial debt and stress.
Jim Walker has already filed personal bankruptcy. Brad Maier, one of the original investors in HydroForce Group, LLC, and also an investor in former licensee PSI, loaned a considerable amount of money in past years to help the former licensee PSI, along with purchasing the $40,000 Yamaha Jetboat for the former licensee’s demos. This has put him in tremendous personal debt. Yet in 2009, Bob Montgomery, Maciej Lisiak, Brad Maier and Jim Walker continued to work without pay till the very end.
The Montgomery family have been financially destroyed. His family have used all of their credit cards to try to survive going through long periods of no pay.
This slanderous website of Bob Mackay and others that are involved in setting it up, will be dealt with at the proper time. On this websites he states falsely that Bob Montgomery, former CEO, has numerous real estate holdings and/or real estate lots? and by purchasing toys for his personal use, as he accuses falsely , that this is the reason why Powerski International Corp is destroyed and insolvent. This is absolutely not true, slanderous statement and lie.
Brad Maier and Ron Hanna have stated on this blog that they know the truth, because they have been with the company for a long time and they have read the documentation. Ron bought the RV and Brad financed the other Boat that has been most recently repossessed and destroyed his credit.
Bob Montgomery, former CEO of PowerSki International Corp, has personally financed a jestki, in which PSI over the years could not make payments on time and it destroyed his credit. They are trying to repo the jetski right now. Bob also financed the first boat (in 1997/1998) for PSI use ONLY that was repossessed this last year. The finance company is coming after Bob personally for $11,000. He never used the Boat or the Jetski for his personal use. It was for PowerSki Int’l Corp’s transportation and water demos, safety and testing only. There is plenty of witnesses to these facts.
These toys, as Mackay rambles on, were not purchased by PowerSki Int’l Corp. But the only that was hurt by buying and financing this work equipment were Bob Montgomery, Ron Hanna and Brad Maier. Powerski Int’l Corp was required to make monthly payments for the use, but the company could not afford these payments on time for years destroying our personal credit, not PowerSki Int’l Corp’s.
What destroyed PowerSki were these conspirators false slanderous attacks and frivolous lawsuits, the theft and copying of our patented product and technology for their own personal.
Bob Montgomery has only a 5000 shares certificate from PowerSki International Corp out of 10,000,000 shares authorized, approximately 7,000,000 issued. He was offered a lot more by the Board of Directors in the past, but he refused to take it. He has done nothing but worked honest and hard, not taking any bribes and not receiving all of his documented payroll, accumulating the approximately $1,000,000 back pay with interest, not to mention a lost finger and a bad back, 15 years of hard work, blood sweat and tears.
During these 9 documented attempts to steal the “JetBoard technology” he did nothing but try to defend the former licensee-PowerSki International Corp…and what has he received?
He has been falsely slandered, his invention has been ripped of and he and his family have lost everything.
He has even borrowed money personally to paid the office lease, because he signed personally on the lease, to try save PSI before the company lost the building.
He was asked to sign personally for a settlement for Powerski International Corp with Powerski International Corp’s lawyers that Powerski International Corp paid hundreds of thousands of dollars to fight Xboard/Nova Group, which PowerSki had to settle because it couldn’t afford these attorney fees for court battle which PowerSki believed it could have won. In regards to the settlement it was a dispute on the remaining billing invoices that Powerski International Corp received late after many months.
In mediation PSI reached an agreement for a payment schedule that Bob Montgomery, former CEO of PowerSki International Corp, was asked to sign and told investor and former licensed assembler from Moses Lake and another investor with the attorney’s present to not to worry, to go ahead and sign that they would make the payments, or one final payment per their investment/license agreement. When they stopped making the payments and they closed their Washington Limited Licensed Assembly facility.
He had no personal defense, because he signed the settlement agreement for PSI. He told the attorney that his family never had the financial means to cover this PowerSki International Corp’s debt. He signed to try to help the company. He was served personally in December 2010 for Powerski International Corp’s judgment for $215,000 plus 10% interest in PowerSki International Corp’s debt for debters hearing on January 12 2011, that had nothing to do with him personally.
In regards to the Geiger settlement, who came on board in 2003 and later on was a part of the Nova and the Xboard “copied” PowerSki JetBoard Technology and the only person Powerski International Corp left out on the Nova and Xboard $112M of Powerski International Corp’s counter lawsuit.
He was asked to sign this settlement personally agreement in mediation. This settlement agreement was for $112,000 and Powerski International Corp paid it down to approximately $52,000. Once again the same investors and former licensed assembler from Moses Lake signed the investment agreement and it stated that they would make these settlement payments on time and they stopped. When they stopped paying PowerSki Int’l Corp continued to try to make the payments until it became insolvent.
Geiger’s and his attorneys have consequently came after PowerSki International Corp and Bob Montgomery in late 2009 with their judgment, seized the PowerSki International Corp’s bank account with a lien in January 2010 and PowerSki Int’l Corp could no longer conduct business.
In December 2010 Bob Montgomery was served as a CEO and personally with a judgment for Powerski International Corp’s debt from Geiger’s and his attorneys $52,000 balance owed plus interest for January 13th 2011 debters hearing..
Bob also signed for PowerSki Int’l Corp office lease that PSI got evicted out of and it is approximately $50,000 plus interest and attorney fees that they have the right to come after PSI and Bob Montgomery, former CEO of Powerski International Corp personally.
It has simply destroyed Bob Montgomery’s family financially and mentally. His family was and is struggling with supporting their 16 years old handicapped son, His other son Chad now also has some mental/depression issues, perhaps from this tremendous stress and burden and his family cannot afford to pay proper therapy and medical bills.
The combination of the above events put the former licensee, PSI, into a debt situation that left it unable to manufacture any products, generate any profit, nor receive any investments. This led to an inability to mount any legal defense causing numerous liens and judgments to be brought against PSI and along with other factors unfortunately caused the closure of the former licensee, PSI’s headquarters and the insolvency of PSI.
Over 250 pages of proof, in the form of emails, websites, pictures, documents, electronic communications, witnesses, etc. has been collected that details all of this afore-mentioned illegal activity. All of this documentation was submitted to the FBI for future investigation and prosecution.
PowerSki International Corporation is insolvent and nothing has been sold, or can be sold from PSI because the licensing rights for the Jetboard Technology were pulled back to HydroForce Group, LLC (founders/patent owners group; approx. 65 individuals) on March 9 2010.
PSI’s bank account with a negative balance has had no activity since before November 2009, and was frozen in January 2010 based on a lien from the unpaid settlement payment to Scott Geiger.
Based on the insolvency of PSI, the licensing rights for the Patented PowerSki JetBoard was revoked by the HydroForce Group, LLC (Patent Owners and Holders).
All the intellectual property regarding the Patented PowerSki JetBoard and Engine Technology, including rights to design, manufacture, market and sell the Patented PowerSki JetBoards and Parts worldwide have been returned back to the original Founders/Patent Owners Group of the PowerSki JetBoard Technology, the HydroForce Group LLC. This intellectual property includes, but is not limited to all proprietary technical information, all know-how related to design, r&d, manufacturing, sales and marketing of the inventors JetBoard Technology world wide, including but not limited to trade secret information, conceptions, data, test results, confidential information or technology, information, drawings, knowledge, sketches, documents and writings describing or recording such information, methods of sales and marketing, which would include , but not limited to all marketing materials, all copyrighted, trademarked, weather registered, or not registered names such as, Powerski (TM), JetBoard (TM), PowerSki JetBoard(TM), JetBoard Technology (TM), all logos and all names related to the sales and marketing of the Patented PowerSki JetBoard Products and Engine Technology, Sales and Marketing Plans, pictures, images, posters, videos, marketing and sales contacts, all contracts, business plans, financial statements, projections, invoices, websites, sales leads including all past purchasers and inquiries, methods of manufacture, construction materials, prototypes or experimental models thereof, including, but not limited to all drawings, specifications, descriptions, models, prototypes, designs, information, technical knowledge and ideas, etc.
HydroForce Group, LLC, the patent owners/founders of the Patented PowerSki JetBoard and Flat Engine Technology
With the financial help of his family in the late 1980s, Robert E Montgomery invented, designed, fabricated and patented the first prototype of the PowerSki Jetboard.
Inventor, Robert E Montgomery, licensed the general partnership, the HydroForce Group, with the rights to the Jetboard Technology.
The licensor, the HydroForce Group, operated as a General Partnership for approximately 4 years, since 1989/1990. Initially, 31 General Partners in all helped to finance the development of the Jetboard Technology. In 1994, the General Partnership merged into the HydroForce Group, LLC, (a Nevada Limited Liability Company), and received the worldwide licensing rights and ownership of patents, as a legal entity further protecting the partners. During the filming of the Kevin Costner movie, Water World, the PowerSki JetBoard™ prototypes were used in the feature film on the big island of Hawaii (see pictures showing “HydroForce PowerSki” logos). Please note that the Patent Owners have extensive documentation for the development of the JetBoard Technology by HydroForce Group, LLC prior to the existence of the 1995 license agreement to PowerSki International Corp. Hydroforce Group LLC has numerous videos and documentation to prove Ownership.
On March 15, 1995, PowerSki International Corporation, a California C Corp., was formed to negotiate an engine supply agreement with Mercury Marine and a stock purchase agreement with Mercury’s parent company, Brunswick Corporation. Ultimately, these negotiations with Mercury Marine did not work out, because the Mercury engines were too big and bulky and lacked sufficient horsepower. Therefore, PSI continued forward with the sub- licensed JETBOARD TECHNOLOGY finalizing the development production tooling for manufacturing and worldwide distribution of the PowerSki JetBoard™ products. Please see sample of attached Mercury Marine documents along with the HydroForce-PowerSki License Agreement exerts.
Inventor, Robert Montgomery, originally signed an Exclusive License to the HydroForce Group General Partnership that was superseded by the HydroForce Group, LLC to sub-license, manufacture, assemble, and sell and, in any other way, profit from the PowerSki Jetboard™ and it’s JETBOARD TECHNOLOGY. On April 1, 1995, The HydroForce Group, LLC, exclusively sub-licensed PSI to manufacture, assemble, market and sell the PowerSki JetBoard™ Jetboard Technology. The HydroForce Group, LLC licensed an exclusive licensing agreement for the purpose of manufacturing and distribution.
On March 9, 2010, the HydroForce Group, LLC revoked its sub-license to PSI citing non-performance and insolvency based on Paragraph 6.5 of the April 1, 1995 Sub-license agreement. All JETBOARD TECHNOLOGY rights were reversed back to the HydroForce Group, LLC.
Please refer to Founders and Patent Owners website www.jetboard.com for information on the Patented PowerSki JetBoard and Engine Technology.
Please also see the Hydroforce PowerSki JetBoard History Section showing Hydoroforce-PowerSki Logo’s on the original JetBoards developed by the Founders/Patent Owners Group of the JetBoard Technology-Hydroforce Group LLC:
http://jetboard.com/historyofthejetboard.html
Historical Documents:
Former licensees, PowerSki International Corp’s, Historical Beta Board Overview:
Historical Beta Overview
Hydroforce Group LLC, Patent Owner’s Historical “Hydoroforce-PowerSki JetBoard” Pictures, Logos prior to existence of PowerSki International Corp:
Hydroforce-PowerSki Historical Pictures
Historical Overview regarding Former Licensee PowerSki International Corp, Sub-License and Production History.
With over 100,000 documented inquiries to buy from Dealers, Distributors and Customers World Wide the former licensee PowerSki International Corp has never been able to deliver this wonderful product in any significant quantities and on time. The former licensee PowerSki International Corp Sub-Licensed 5 manufacturers from 1998-2007 and only one of them produced units (besides the former licensee PowerSki International Corp’s production facility as listed below) , all of the others defaulted, bankrupt and/or had unethical tactics to steal the technology. These problems have confused the world market and slowed the growth of the sport. and finally destroyed former licensee Powerski International Corp.
1. Limited Licensed Agreement one was signed with CTI in 1999, a publicly traded company, who didn’t manufactured a single board and went bankrupt, because of their internal business issues related to their other products, not us (see the attached Limited Licensed Manufacturing Agreement photographs of the plant in Rosarita Mexico and newspaper article).
2. Former Licensee PowerSki International Corp, formerly located at 1000 Calle Amanecer, San Clemente, CA. During this time former licensee PowerSki International Corp still manufactured and delivered approx 100 Beta Boards, 85 of the early Alpha Production Boards and 65 of the Production Boards with a Die Cast Patented SuperTorque XT Engines to its Dealers, Distributors customers world wide. These Beta boards were very expensive and they cost former licensee PowerSki International Corp 2, or 3 times more then our wholesales price, because of the low volume of production, high cost of goods caused by lack of investment funds for tooling and volume purchasing of parts, as fully disclosed in the Beta Letter (see the Beta Letter Overview). The former licensee PowerSki International Corp manufactured, machined and assembled the complete engine, hull and assembled the engine with all the components into the hull at it’s former San Clemente facility. The former licensee assembled and shipped approximately 250 JetBoards with very high cost of goods, with no profit, loosing money. The former licensee PowerSki International Corp also repaired and shipped parts all over the world to Dealer and Distributors, that were a part of the Beta Test Program at no charge. Former licensee PowerSki International Corp also paid its employees who spend hundreds and hundreds of hours on solving the technical issues, making engineering changes. All this has been very well documented. During that process, the former licensee PowerSki International Corp kept loosing money.
With these hostile attacks and former licensee Powerski International Corp had to devote countless man hours to fight back, coupled with the ongoing frivolous law suits and the former licensees PowerSki International Corp counter lawsuits against Nova/X-Board this ended up costing over a half a million dollars in legal fees, hundreds of thousands of man hours. This consumed former licensee’s PowerSki International Corp’s time, energy and funds and misdirected the plan of going from production to mass production, as these conspirators pre-planned. It also slowed the production in San Clemente, because of lack of funds, vendor debt and hostile employees. The limited licensed manufacturer, PatX/Heines Group, that former licensee PowerSki International Corp signed the Limited Licensed Agreements with never produced one board in over 2 years even though they signed 20,000 unit contract. The former licensee, PowerSki International Corp, has 5 6inch binders with engineering documents, emails going back and forward that we believe proves this stall game.
Nova who was supposed to secure major funding defaulted and former licensee PowerSki International Corp was thrown into a hostile battle to protect it’s investors, dealers, distributors and vendors investment world wide, loosing money. At the same time the former licensee Powerski International Corp kept moving forward with engineering improvements, and completing a high volume production design of Powerski Jetboard(TM) and engine. Former licensee Powerski International Corp also engineered and completed high rate production tooling with it’s vendors. The former licensee PowerSki International Corp completed the design of the engine and production tooling design and arranged an agreement with the Jetboard Patented Engine Technology with Pacific-X Corp, for engine manufacturing by a Korean Company, who paid for tooling in this agreement.
The former licensee Powerski International Corp never had enough funds to purchase parts in volume, produce fast enough and lower the cost of goods. The boards were very expensive to build, because of low volume production, high cost of goods. Former licensee PowerSki International Corp was loosing money priming the market and stimulating the new sport, while at the same fighting these pre-meditated hostile attacks to steal the Patented JetBoard Technology.
3. Limited Licensed Manufacturer Agreement with the Hines Group/Patx in 2003. The contract was based on production of 20,000 units. This company had a 150,000sqft production facility in Mexico and was totally qualified to manufacture.
Shortly after signing this limited license assembly manufacturing agreement former licensee Powerski International Corp signed a preliminary agreement to go public with Nova Communications, a publicly traded company (penny stock). The agreement was based on Nova funding an agreed amount of financing ( at least $2M), before going public. This was just to fund initial production, build and distribute the pre-paid jetboards. The former licensee PowerSki International Corp ramped up to almost 30 employees. Nova defaulted the $2M initially agreed upon. Former licensee Powerski International Corp clearly stated in the paperwork that after the initial $2M funding we needed an immediate influx of additional $5M-$10M, or more to continue to ramp up for mass production world wide.
They never achieved their commitment of initial $2M and funded less than $850,000 in small increments over 8 months. They defaulted on their deadlines and former licensee PowerSki International Corp extended and signed 2 other agreements, on which Nova defaulted on their minimum payment as well. PowerSki believes and has proof that Nova and this group of conspirators had 3 stage premeditated conspiracy plan. (see press release attached regarding PowerSki’s $125M lawsuit against Nova and see the NOVA/X- Board Investigated Video Below).
Their first stage was a hostile take over of the company.
In 2004 former licensee Powerski International Corp launched the first Alpha Production Boards Igniter 2000 with Sand Casted Engines and that is when the Nova X-Board Group Launched the attack internally during the Miami Boat Show in February and PowerSki International Corp was informed about their pre-meditated plot against former licensee Powerski International Corp by one of its Dealers.
The second stage: If that didn’t work, in their second stage they were going to get a hold of the limited licensed manufacturer in Mexico and make a deal with him to stall production to create pressure on former licensee PowerSki International Corp and its CEO Robert Montgomery with law suites from Distributors and Dealers, who were part of the fully disclosed Beta Board Test Program and loan pre-purchase (see Beta Letter 1 document, Beta Letter 2 document, EPA Letter signed by Dealers and Distributors in the Overview attached). Their pre-meditated plot was to cause law suites and bankruptcy, so they could take over the company, steal former licensee’sPowerSki International Corp’s hard work and technical know how and make the competing board-The X-Board. Nova the publicly traded company and its CEO personally sued former licensee Powerski International Corp and its CEO Robert Montgomery with 3 frivolous law suites to try to bankrupt the company.
The third stage in their premeditated plans was to create a competitive motorized surfboard and to compete with former licensee Powerski International Corp violating NDAs, which they all signed, and Patents, using PowerSki’s JetBoard technology, know how and customer database. With former licensee’s PowerSki International Corp’s ex-employees, Dealer, Distributors which PowerSki International Corp believe and has knowledge and proof of via emails, photographs, videos, witnesses etc Nova created the X-Board (as shown in the attached press release regarding our $125M law suite against Nova, some Distributors, Dealers, Investors and Ex-Employees a conspiracy to steal Jetboard Technology and know how).
The Nova X-board was a motorized surfboard with a swivel that never performed properly, it did not turn very good at all even with a swivel jet, because of the overall design and lack of design knowledge. The engine and other mechanical components had serious problems and never met EPA requirements. The swivel mechanical jet takes away any relevance to surfing. Surfing is natural, where you turn by leaning. This didn’t represent surfing. The hull design was copied by former licensee’s PowerSki International Corp’s ex-employees, from inventors Bob Montgomery’s old prototype, a wider board designed many years prior to that using big bulky mercury engine. Former licensee PowerSki International Corp believes there has been less then 25 X-boards prototypes built according to its knowledge.
The former licensee PowerSki International Corp has information, knowledge and believes that everyone from its former Dealer and Distributor Network World Wide had been contacted by this conspirators and was fully aware of this undermining plot to steal its technology, to take over the company and to make another JetBoard -the X-Board. Powerski International Corp served 22 people in the law suite. Former licensee PowerSki International Corp had proof and believes along with numerous e-mails, witnesses and video tapes that a lot of other Dealers, Distributors and Investors world wide could have been involved. However former licensee PowerSki International Corp did not pursue in this law suite everyone that could have been involved.
See Nova/X-Board related documents attached.
Note:
This document, titled “Use of Proceeds” for due diligence, was presented to Nova, a publicly traded company, by former licensee PowerSki International Corp. Please note that this documented was prepared prior to signing of the financial agreements to show to Nova management the necessary amount of capital that had to be invested in the former licensee Powerski International Corp to accomplish their goals.
Furthermore, the burn rate amount listed in this document, was prior to Nova’s hostile attacks and based on the signed financial agreements with Nova, the former licensee PowerSki International Corp continued to grow the operations according to this plan in the “Use of proceeds” presented in this document.
The former licensee PowerSki International Corp grew from approximately 18-20 employees to approximately 30-40 employees, started executing the tooling and parts purchasing, which increased vendor debt , overhead etc. After the Nova’s hostile attack started, it added tremendously to the debt and overhead with the legal fees, which delayed the plans in this document based on lack of funding that was promised.
Please note that this document discloses that immediate financing was needed to pay for EPA solution, pre paid back due/loan board and debt.
(Please see the “Use of Proceeds” Document, full disclosure financial document:)
Use of Proceeds Disclosed to Nova by former licensee PowerSki International Corp
4. Canadian Limited Sub-Licensed Limited Manufacturer that the former licensee PowerSki International Corp signed the agreement with was its Canadian Distributor who invested a small amount, but never built one board, yet he was licensed to manufacturer a large quantity of product.
5. Exclusive World Wide License to Manufacture, Market, Sell and Distribute world wide. Former licensee PowerSki International Corp signed the exclusive license agreement with Don Diduck from Canada and his associates. This group formed PowerSki Global a Barbados Corporation and claimed they were going to fund the whole company for mass production, sales and marketing and build 20,000 units according to the agreement. Powerski International was facing large debt from it’s vendors, etc and wasn’t making a profit. The license from PowerSki International Corp was pulled back to Hydroforce Group LLC and PowerSki Global (the new licensee at that time, a Barbados Corporation) was licensed with rights to develop, manufacture, market, sell and distribute the JetBoard Technology World Wide. Bob Montgomery stepped down as a CEO and became the president and for exchange for the $10M funding package for the company and also gave them the Exclusive World Wide Licensing rights for Sales, Marketing, Manufacturing, R&D and Distribution World Wide. They never built one board and defaulted completely on any funding for former licensee PowerSki International Corp. Former licensee PowerSki International Corp then received the 1st $1M out of $2.5M total investment from a private individual and retrieved its Exclusive World Wide Licensing Rights.
(See attached inserts of the license agreement, etc.)
2005 Canadian Exclusive License Agreement PowerSki Global
At that time former licensee PowerSki International Corp continued to build boards at a very high cost of goods regardless. Former licensee PowerSki International Corp at its San Clemente location manufactured and shipped approximately total of 300 plus Jetboards.
6. Limited Licensed Manufacturer that the former licensee PowerSki International Corp signed Limited Licensed Assembly Agreement was “All American PowerSports”, who in exchange for the Licensing Rights invested approximately $3.5M into former licensee PowerSki International Corp in a form of convertible notes, because of the enormous debt former licensee PowerSki International Corp incurred based of the diversion of the law suit battle with the X-Board Nova Group, who finally gave up in a settlement agreement and afterwards dissolved their company.
This former Limited Licensed Assembler from Washington State has build and shipped approximately 250 PowerSki JetBoards and 6 PowerSki JetKayak prototypes since the grand opening that took place in June 2008. Within the signed Limited Licensed Manufacturing Agreement, there was a section included about the 6 months shake down period, during which, the Licensed Manufacturer was to aggressively lower the cost of goods by world wide cross bidding, tooling and volume purchasing.
This former Limited Licensed Manufacturer, All American Powersports, was a legitimate one, because it produced product. This Licensed Manufacturer felt short of its agreed contracted production goals, because of lack of experience and lack of funding. This produced other failing factors such as delayed delivery, because of lack volume parts purchasing to assemble product prior to the season.
Not complying with the Limited Licensed Agreement with lowering the cost of goods during the 6 months shake down period affected the final price of the product making the volume sales impossible. The language in the contract stated that after the 6 months shake down period, the reduction of the cost of goods, below the fixed level, would give them better profit margins. In fact within the 6 months shake down period All American PowerSports increased the cost of goods. This strategy affected the sales, because of the high price and the 6 months lead times for delivery made the volume sales impossible. Due to lack of experience, proper funding for the factory and cooperation with former licensee Powerski International Corp also resulted in pure quality control and low final quality of their assembled product. This group used financing for PowerSki Distributors through EX-IM Bank of US government, which PowerSki International Corp was 50% partners (Former licensee PowerSki International Corp never received any paperwork showing the accounting profits to be shared, or funds). The EX-IM Bank’s financing program was great but the price was still too high, the factory had bad timing on delivery and quality issues.
The allocation of their approximate $3.5M investment into Powerski International Corp was not directed according to the priority debt that was attached to the contract and agreed upon. The former licensee PowerSki International Corp believes that they intentionally paid certain debt to help their limited licensed assembly facility operation and not certain priority or critical debt, such as the contractually agreed payments to IRS, EPA solutions to clean up the engine to be able to sell in the USA and agreed settlement payments, which assisted to the insolvency of the former licensee PowerSki International Corp. The former licensee Powerski International Corp has information and believes that this group had a plan and strategy to apply pressure on Powerski International Corp and Bob Montgomery, CEO to renegotiate amendments to the contract. The contract was extended/amended on several occasions in regards to production requirements, payments due, etc.
The former licensee PowerSki International Corp believes the conflict of interest was created by a long term strategy to take over the company, but in more of an unwise business tactics and counter productive for both parties. The former licensee PowerSki International Corp believes and has information to prove contract violations and defaults through out the agreement in regards to this group.
The former licensee Powerski International Corp has information and believes , has proof, witnesses, emails that this former limited licensed assembler sold PowerSki JetBoards, Parts and Products through out the world without paying the former licensee PowerSki International Corp and Inventor’s royalties.
Due to combination of numerous undisclosed at this time issues, including but not limited to their lack of committed funding and financing to Powerski International Corp per the agreement (numerous defaults, etc) , downturn of the economy, high cost of goods and the chinese knock off factory selling copies of the Patented PowerSki Jetboards, undercutting their pricing this former limited licensed assembled, closed it’s door in early 2009.
The former licensee, PowerSki International Corp, has a lot more proof , evidence, witnesses, emails, websites, agreements, with their investigation, all well documented. What you see above is just a sample of over 350 pages of evidence.
