EPA Verification of the HHO unit.
As a bit of insight and understanding, this information is presented to help investors become more informed on the issue.
On another board, a great deal of attention was paid to the status of the EPA verification and where HLNT stood in the effort to achieve the verification. There was a misunderstanding as to what was required by the EPA, and many posters referred to EPA "certification". For the type of technology that HLNT is working with, an aftermarket product that is added to the vehicle (or engine if you are talking about a generator system), the requirement from the EPA was for a "verification" that the product did the job that it was promoted as being capable of. For instance, if it was able to improve mileage by 20%, then that claim had to be verified. What is confusing is that in California, which is different from the EPA in its requirements, units have to be certified. So, investors should understand that what is required from the EPA is "verification" and what is required specifically from California is "certification".
As one poster found on the other board, the EPA really did not understand the HHO technology, and as much admitted so. Part of HLNT's efforts, then, has to involve education, even of the EPA. This is necessary as the EPA was not sure under what catagory the HHO technology would fall under. One thought is that it was a fuel additive. But that was misleading because fuel additives are generally entered into the gas tank and are liquid in form. And the EPA wanted to know what the chemical composition was. But the HHO was not entered into the gas tank, rather injected into the air flow of the "air intake" system of the engine. Another question that arose with the EPA was the storage and production of the Hydrogen Gas, ie, was a cylinder of compressed gas required (for example, with propane or LNG systems). There was both a lack of understaning and a bias on the part of the EPA regarding the "on demand" production of Hydrogen. The lack of understanding was due to not knowing how the HHO supplied through the air intake really effected the engine, since the amount of HHO gas was so minute compared to the quantities of fuel and air that were supplied to the engine. As it turned out, the amount of HHO produced actually was below the EPA threshhold for what they considered to require EPA approval of any kind. As such, the question arose as to whether HLNT's HHO units required any verfication from the EPA at all. Regarding the bias, the EPA has numerous examples of failed claims by other makers of HHO systems, and that bias has and does influence the EPA's consideration of any HHO system, which truthfully means that HLNT has a higher hurdle to clear in obtaining EPA verification.
Knowing that the HHO units fall below the EPA threshhold for the requirement for verification, a couple of questions arise as to HLNT's efforts to achieve verification. Is it necessary to obtain the "verification". At this time, the answer is "no". HLNT understands this and has pursued sales of the HHO units in view of this revelation. Would it be beneficial to achieve "verification"? The simple answer is "yes". Because of the uncertainty with which the EPA can operate, not every customer of HLNT is comfortable with buying a product that doesn't have some kind of approval from the EPA. By having an EPA "verification", HLNT will allay the concerns of those potential customers who would feel comfortable with the verification, which ultimately translates into sales and the bottom line of profitability. But there is a cost to the "verification", which has already been discussed on another board, and while the EPA has its fees for the process, the R&D neccessary to put together supporting information and analysis also has a cost.
This post does not answer all the questions that investors may have about the EPA and verification, and is not intended to be an answer all post. It is intended to lay the ground work for understanding and explanation of where HLNT is at and what is to be expected from HLNT in the future.
