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Patented, green technology that provides a cost effective alternative to rubber tires.
The overall global tire market is projected to reach $322 billion by 2022. Near term commercialization into an expected $30 billion Off-The-Road (OTR) market, with potential adoption into other industries such as construction, agriculture, forestry, automotive, trucking, bicycles, wheelchairs, and armored vehicles.
Global miners have completed testing of GACW’s wheel solution with encouraging results. Our solution reduces operating costs, improves safety and creates a better overall environmental footprint. Commercialization roll-out planned for 2022.
*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
Overview
What happens to a tire once it has outlived its usefulness?
Unfortunately, it is often not recycling. Instead, old tires are frequently buried or burned, releasing harmful chemicals and heavy metals into groundwater and air. Tires that end up in landfills waste space and fill up with water that provides breeding grounds for disease-carrying pests such as mosquitoes.
Global Air Cylinder Wheels (GACW) seeks to change all that. Our Air Suspension Wheels reduce the need for dirty rubber by providing a scalable, cost-effective solution designed to last the full lifetime of the vehicle they transport. Better yet, these wheels are 100% recyclable upon their well-earned retirement.
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The Problem
An industry that uses and disposes rubber tires at an alarming rate, is the mining industry. With over 35,000 open-pit mines globally, the number of environmentally damaging tires disposed of each year is staggering. A study published in the International Journal of Environmental Research and Public Health, estimated that tires account for as much as 10% of overall microplastic waste in the world’s oceans. A report by the International Union for Conservation of Nature raised that number to 28%.
One (1) giant rubber Off-The-Road (OTR) mining tire weighing 13,000 lbs contains 500 gallons of renewable blend oil, 4,000 pounds of carbon black, 2,000 pounds of steel, and over 3 million cu. ft. of synthetic gas (Titan International, June 2014). At the end of its useful life, the tire is disposed of on-site, repurposed or buried because recycling is often too expensive. A report by Tyre Stewardship Australia produced in June 2020 found that 81% of OTR tires are disposed of onsite at the end of their lifetime.
Rubber tires are expensive
Tires are the mining industry’s largest expense after payroll. Rapid wear and tear caused by impacts, rock cuts, and extreme and uneven loading means the lifespan of an expensive mining tire is short. Mining companies are forced to use “Band-Aid” solutions such as patch up repairs, tire pressure monitoring, tire retreading, tire cooling systems, and tire rotation to extend the tire’s useful life. One (1) 13,000 lb. OTR mining tire can cost over $75,000 and only lasts six to nine months. That is a large expense for a product that does not last.
Rubber tires are safety hazard
Beyond these serious environmental and budget concerns, off-the-road mining tires represent a huge safety problem for maintenance crews due to potential explosions from overheating, improper inflation or installation, and lightning strikes. Overheating is the most critical operational issue facing rubber tires. Rubber is an amazing insulator, so when it heats up, if the heat is not dissipated, it builds up, increasing the tire’s pressure and becomes an immense safety problem. When explosions do occur, they are often fatal with blast areas up to 400 meters.
The Solution
The Air Suspension Wheel (ASW) is an eco-friendly solution constructed almost entirely of steel. No more overheating tires, no more explosions.
It is an airless mechanical wheel that combines an inner steel hub with an outer steel drum, which are connected by twelve nitrogen filled cylinders and six oil dampers, providing suspension. Customized polyurethane or steel tread configurations are bolted to the outer drum in segments. These individual treads can be replaced without removing the wheel, a lengthy process that takes up to eight (8) hours with a rubber tire.
*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
The ASW is a product designed to have the same lifespan as the vehicle itself (approximately 20 years), meaning fewer replacement costs and less time spent swapping out damaged tires. The ASW can become part of the vehicle and has the potential to become a capital asset. Unlike tires, the ASWs can be leased, with a 15% residual value after 10 years of service. Beyond that, they can be refurbished and leased again.
And at the end of its life, the ASW is fully recyclable.
What We Do
As opposed to the traditional pneumatic tire providing suspension outside the rim, the ASW suspension is located inside the wheel. Essentially, our wheels become part of the vehicle's overall suspension system.
*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
Benefits:
Up to 30% reduced rolling resistance, reducing CO2 and NOX emissions, and making electrical cars go farther
Saves at least 8% fuel
Up to 40% higher payload capacity
Durable and heat resistant, reduces downtime caused by tire failure and replacement
No risk of explosion = safer
No need for tire pressure and temperature checks
Self-aligning, self-balancing, no wheel rotation necessary
Reduces cost per hour/mile by up to 60%
Functions as a flexible torque coupler
Easy installation requiring no specialized equipment and individually replaceable treads do not require wheel removal
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*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
The Market
GACW’s focus is catering to the demand from miners seeking viable tire solutions and it is a substantial market for us. The global OTR tire market is estimated to reach $30 billion in 2022. However, the ASW technology can be applied to all verticals where traditional rubber tires are used, and this market is immense. The overall global tire market is anticipated to reach $322 billion by 2022 with a projected CAGR of 8.4%.
Our Traction
From 2016-2020, our patented technology underwent multiple rounds of field testing with global mining companies with progressively positive results. The data ASW obtained showed lower operating costs, improved safety and a better overall environmental footprint. The testing also brought the ASW to Technology Readiness Level (TRL) 8, a NASA-developed measurement of technology maturity. TRL 9 is a commercially ready product.
This success caught the attention of additional international Tier 1 mining companies, and we are now working with our global manufacturing partner, OTR Wheel Engineering to complete wheel designs for multiple trucks and loaders.
We have raised approximately $3 million, created an experienced Board of Directors and formed a first-class Advisory Board. Additionally, we have entered a project agreement with a global over-the-road rim manufacturer for ASW testing in commercial trucks and cars.
The ASW technology has a strong patent portfolio with one granted, with 16 patents pending.
The Business Model
Direct Sales
Our flagship product, the mining ASW, is currently able to be produced with 16% gross margins. According to our fabrication partner, we expect production costs to decline by up to 20%, creating future gross margins of 31%.
GACW orders will be for trucks and loader wheels. Loaders have four wheels and trucks have six, generating respective revenues of $600,000 per loader and $660,000 per truck. As a typical mine has 60 vehicles requiring 480 tires at $60,000 per tire initial fleet orders could reach in excess of $20 million for a single mine.
Other Forms of Expected Revenue
Recurring revenue from tread replacement
Licensing and royalty agreements
How We Are Different
Twenty years ago, a 100-ton truck was standard. These days, though, trucks can have up to 450-ton payload. As these vehicles have grown, traditional tires have reached the outer bounds of their abilities to scale up.
*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
The ASW, on the other hand, is totally scalable. And although we do have some competition within smaller wheels, we currently have no direct competitors in the OTR tire market for mining and construction operations, which we are already in the process of penetrating.
The Vision
This year (2021) we expect to see several purchase orders for ASW testing that will begin in August-September. The evaluation period is set at 3-12 months.
In 2022, we plan to start ramping up production of ASWs with our partner, OTR Wheel Engineering. We might contemplate an IPO in the next few years.
*Image of GACW's Air Suspension Wheel. The Company is currently in the pre-production phase, and the Air Suspension Wheel is not currently available on the market.
By 2023, we anticipate the ASW will be fully commercialized with rapid adoption into mining fleets. At this point, our plan is to expand our distribution network and really start taking the tire industry by storm.
OUR LEADERSHIP
Dr. Zoltan Kemeny, President, CEO, Treasurer and Director - Acknowledged expert in vehicle dynamics with over 44 years of experience in R&D and engineering. Owns and co-owns over 250 patents and Built up four startups and exited with success. Holds degrees in structural dynamics engineering, architecture, and seismology.
Harmen van Kamp - SVP, Global Sales and Director - Sales professional with over 15 years of experience in sales and business development. Worked in various sectors including mining, heavy machinery, FMCG, and agricultural technology.
Mark Keenan - Non-executive Board Member - Co-founder and Chairman of KHS&S, one of the largest design-assist building companies in the world. More than 35 years of experience performing nearly every facet of construction, ranging from field operations supervision to senior executive management.
Tim Norris - Business Development Manager - Accomplished Senior Account Manager and Product Development Specialist with over 20 years of domestic and international experience in sales, management, business development, and operations. Extensive experience in the commercial tire, material handling, and mining industry.
Tim Bromelkamp - Government Business Development Consultant - An experienced business development consultant who has helped position businesses and other organizations to sell their products or services to the U.S. Department of Defense, other federal agencies, and industry.
Marc Hellmann - Advisory Board Member - Marc Hellmann is the CEO of HANSA-FLEX South Africa, a division of HANSA-FLEX International, Germany. The group’s business activities span 40 countries worldwide and specialize in Fluid Technology. Marc is a global entrepreneur and businessman currently serving on the Board of Directors of various companies throughout the U.S., Africa, Germany and Australia.
Dr. Avi Wiezel - Advisory Board Member - Avi Wiezel currently serves as the assistant dean at Ira A. Fulton Schools of Engineering (Arizona State University) and is an associate professor in the School of Sustainable Engineering. Dr. Wiezel held several managerial positions within construction and engineering firms throughout Europe and the Middle East.
Why Invest
Many industries operate under status quo, resistant to change. Companies that are reluctant to innovate will not survive. Those companies that do adopt new technologies and embrace innovation will prosper. Tire use and its negative environmental impact will change inevitably. Governments are starting to mandate change on tire disposal and this is already accelerating our technology’s adaptation into the market.
Our Air Suspension Wheels are an effective and viable option to rubber tires. They are cost efficient, safer and are better for the environment and those industries that rely on it.
Isn’t that the kind of change you want to see in technology?
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
GACW INCORPORATED, based in Phoenix, Arizona, has literally reinvented the wheel by introducing an eco-friendly and cost efficient alternative to the extremely pollutive rubber tire. Our patented Air Suspension Wheel (ASW) is an airless mechanical wheel constructed primarily of steel with in-wheel pneumatic suspension.
Mark Keenan
Director
Jan Lorant
Director
Maria Kemeny
Secretary
Nico Kitteredge
Engineer
Tim Bromelkamp
Government Business Development Consultant
Maximum Number of Shares Offered subject to adjustment for bonus shares
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Voting Rights of Securities Sold in this Offering
Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
Investment Incentives*
Time-Based
Friends and Family - First 48 hours | 15% bonus shares
Super Early Bird - Next 5 days | 10% bonus
Early Bird Bonus - Next 7 days | 5% bonus shares
Amount Based:
• USD 5,000 investment, 5% bonus shares
• USD 10,000 Investment, 7% bonus shares
• USD 20,000 Investment, 10% bonus shares
• USD 50,000 Investment, 12% bonus shares
• USD 100,000 Investment, 15% bonus shares
*All perks occur when the offering is completed.
The 10% StartEngine Owners’ Bonus
Global Air Cylinder Wheels will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. Owner's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $1.75/ share, you will receive and own 110 shares for $175. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Vendor payments.
10.25.22
After two intense weeks in Australia, an update on the market potential.
Taking the outer cover off
As previously reported on, the show & tell was a great success. The questions raised were about how else the wheel will change the industry. E.g., can the ASW be made into a 'super single' wheel to replace the double back wheels? Yes! Will the ASW replace several sizes used currently for the same vehicle? Yes! What about production capacity? Working on it! What other materials can be used instead of the PU? Plenty, but needs proper testing.
The following days, we had a very full schedule meeting all the major mining and haulage companies. Some of them clearly indicating that they are conservative and would love to come first to come second (plenty of those around!). Therefor, our strategy is: first come, first serve. This means that if the mining company commits to a certain size wheel, they will get exclusivity on the (local) production of that size until they are satisfied. To put this in some perspective. One major mining company has an approved budget for two tire sizes, namely the 40.00R57 (CAT 793 or MT4400) and the 56/80R63 (CAT 797). The potential of only these two tire sizes within only that company is: USD 1,1B.
The company that is about to install the 994 ASWs, has sixteen of these in their fleet. Additionally, they operate a mixed fleet of 337 trucks. They are also electrifying their fleet with new Liebherr trucks and placed an order for over 300 Liebherr T264 trucks with the first being delivered next year. The potential number of ASWs to be sold here is well over 1,800.
And these are just two out of many companies that GACW is engaged with.
One last example. The operators in the Canadian Oil Sands have a combined fleet of over 600 CAT 797 (or similar) trucks. This has a potential market value of USD 900,000,000 alone. We have been engaging with one of the larger companies already.
But there is more…
In the future there is more business from the sale of the ASWs. Because there are patents on the cylinders and treads as well, these will generate more revenue. Also, the service of the ASWs can be made into a profitable business in its own right.
For haulage companies in particular, the leasing option will be very attractive as they quote and charge the mining companies on a cost per hour base.
Measuring the hardness
Test run on the PU
The major sales triggers are:
Safety: as 25% of all fatalities on mine sites are directly related to tires. The Tire Fitter job is considered to be the most dangerous on a mine. Environment: OTR rubber tires are not being recycled and have a huge negative environmental footprint. Mines do care a lot about the environment and part of that is waste management and emission reductions. With the reduced rolling resistance, we expect at least 8% fuel saving, which has an equal amount of emission reduction, but this could easily be much more. Most, if not all, mining companies are strongly committed to reducing emissions. Total Cost of Ownership: Not only does the ASW change a major OPEX (tires) to a CAPEX, the increased truck availability, because of less tire related downtime, increases significantly. In other words, more ore can be moved with the same number of trucks. Maintenance: Less maintenance required, and the maintenance becomes mechanical which means that it can be performed during the normal truck regular maintenance interval.
Recently a mining company lost two brand new CAT 797 due to tires overheating (not pictured here)
The two key words are focus and exclusivity. We are focusing on the customers that are willing to take the risk of being first in the market in exchange for the exclusive right on that particular size of wheel.
10.12.22
On October 11, 2022 Global Air Cylinder Wheels held a conference for over 20 representatives of the largest mining and haulage companies in the port of Dampier, Australia.
During the conference the company shared its revolutionary wheel technology and showcased an actual CAT 994 Air Suspension Wheel (ASW).
The ASW is an eco-friendly, cost-effective, stronger, and safer alternative to the traditional rubber OTR tire.
09.15.22
Recently, it was pointed out how the Air Suspension Wheel will uniquely change the balance sheet for companies that adopt the technology. With fuel and payroll, rubber tires are the top three OPEX (operating expense) for mining companies. When adopting the ASW, there is a big shift on the balance sheet as the wheel will become a capital asset instead of a consumable.
Additionally, leasing and Wheels as a Service will become possible. Many tire service companies have tried to offer a cost per hour service, however, this is nearly impossible because of the unpredictability of the rubber tire. Tire management has improved over the years, but it is still too risky to offer this as a solution to the customers.
As early calculations show, the ASW can save as much as 60% on the tire expenses. This means there is a big delta for a company offering a Wheel as a Service with a cost per hour per position wheel including the maintenance at an attractive discount and still be very profitable.
The WaaS will also make the transition to the ASW easier as it would not require the higher upfront cost and the customer can start saving money on tire expenses from the set go.
The ASW changes an unreliable consumable into a safe capital asset.
GACW is in conversation with several companies that could facilitate the WaaS in the future.
Latest ASW design for a Komatsu 930e truck.
08.09.22
Today (August 9th) the USPTO formally issued the latest patent to GACW: https://bit.ly/3bP3swe. GACW keep on adding to the IP portfolio to protect the technology. Every patent is also internationally pending as, depending on the country, you have up to eighteen months to do so.
Here are the last pictures of the 994 ASWs before leaving the factory to the final destination:
The 994 ASWs will be crated before shipping.
Shipping crates for the 994 ASWs
07.05.22
After a slight delay because of the Covid lockdowns, the Drum Crusher wheels have been finalized! We expect collection at the factory latest next week and an ETA in Chile the beginning of August.
Much more exciting news to follow soon as the CPA approved audit has been successfully completed recently.
A peek inside the mechanics of the wheel (sidewall removed).
All packed up for shipment.
05.10.22
Investors and Followers,
We would like to advise you that the page has been moved to the following URL: www.startengine.com/gacwOLD. We will have exciting news to announce soon!
Team GACW
04.13.22
We would like to thank all the investors, followers, and other interested parties for this very successful campaign and your support! We will open a direct email address for direct communication for you. However, we will also keep you up to date through regular updates on www.startengine.com/gacw, which will stay active.
04.08.22
Many have asked us about the size limitations of the ASW. In the future, the ASW can be designed for trucks that are much larger than currently exist. The main limitation for vehicles at the moment, is the limited payload capacity and the size of the inflated tires. Since the ASW is a mechanical wheel, it can be shipped in segments. This will allow for much larger wheel sizes than currently available. Additionally, the shipping can be done in much smaller containers, making it possible to deliver the ASWs in the most remote places even. Here is a sneak peek of that design:
(Shown here with steel treads but can be made with any tread configuration)
04.08.22
GACW would like to advise that we are offering a trial for a CAT 793 ASW (40.00R57 size) to a limited number of global mining companies. We will be able to support this trial with the extra investment that has been coming in.
The CAT 793 is a truck with six wheel positions and, with its 256t payload capacity, one of the most populous trucks in the mining industry. GACW believes that this is the natural next step forward in the development for mining vehicles.
In contrast to rubber tires, the larger the wheel size, the less challenging the design is for the engineers because there is far more space (particularly the width) to accommodate the cylinders.
40.00R57 ASW design (no side cover shown)
04.08.22
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