SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): December 9, 2002
SONEX RESEARCH, INC.
(Exact name of registrant as specified in Charter)
Maryland 0-14465 52-1188993
(State or other (Commision file (IRS employer
jurisdiction of number) identification no.)
incorporation)
23 Hudson Street, Annapolis, MD 21401
(Address of principal executive offices)
(410) 266-5556
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
ITEM 5. - OTHER EVENTS
On December 9, 2002, Sonex Research, Inc. (the "Company") posted the following
news announcement on its website (www.sonexresearch.com) and issued the
announcement over the wire services:
SONEX RECEIVES DEPARTMENT OF ENERGY SUBCONTRACT
TO TEST AUTOMOTIVE DIESEL APPLICATION
ANNAPOLIS, MARYLAND, December 9, 2002 - SONEX RESEARCH, INC. (OTC BB: SONX)
announced today that it has been awarded a $458,862 subcontract under a U.S.
Department of Energy (DOE), Small Business Innovation Research (SBIR) Program,
Phase II prime contract to Compact Membrane Systems, Inc. (CMS), of Wilmington,
Delaware. Sonex will be evaluating its patented piston-based, Sonex Combustion
System (SCS) emissions reduction technology in an advanced automotive diesel
engine in combination with a polymer membrane technology being developed by CMS.
CEO and co-founder Dr. Andrew A. Pouring stated "Arrangements to secure an
appropriate engine for the testing should be completed in a few weeks. We expect
the engine to be one that has been used in a joint government and automobile
industry program. Once we receive the engine, we anticipate releasing additional
details about the project. Initial work under the subcontract is already
underway, as Sonex has just received some engine spare parts and necessary
equipment to prepare a test cell to house the engine."
CMS is developing its polymer membrane technology for the addition of nitrogen
enriched air (NEA) to the diesel engine combustion process as an alternative to
the use of exhaust gas recirculation (EGR) as a means to reduce the in-cylinder
production of oxides of nitrogen (NOx). If successful, the CMS method could
provide the benefits of EGR with reduced risk to engine wear, with reduced heat
load for cooling (EGR), without the burden of additional hardware and without
significant impact on the turbo- charger. In the past, the introduction of high
levels of EGR to reduce NOx emissions has been shown to substantially increase
the production of soot/particulate emissions. SCS piston designs, however, have
shown the ability to reduce diesel engine soot/particulate emissions.
In 2001 the DOE awarded an SBIR Phase I prime contract to CMS to determine the
feasibility of combining SCS piston technology with the CMS polymer membrane
technology, and a subcontract was issued to Sonex. Phase I testing was conducted
on the Sonex laboratory, single-cylinder, normally aspirated, direct injected
(DI) diesel engine. Results showed that the NEA polymer membrane and the SCS
piston in the single-cylinder engine, supercharged by Sonex, have the potential
for significant reduction of NOx without increasing soot/particulate emissions.
The aim of the current SBIR Phase II contract award to CMS, and the resultant
subcontract to Sonex, is to transfer the Phase I single-cylinder results to the
multi-cylinder engine. Dr. Pouring added, "Early stages of the project will
focus on the emissions reduction capabilities of the SCS piston on its own to
provide data for evaluation by DOE and commercial interests. Subsequent testing
will take place in combination with the NEA membrane.
Sonex also reported that of the $458,862 subcontract total, $100,000 represents
the Sonex cost-sharing portion, including the value of the contribution by a
third party of the multi-cylinder automotive diesel engine.
Contact: Sonex Research, Inc.: George Ponticas, 410-266-5556, email:
sonex@erols.com, website: www.sonexresearch.com; Investor Relations: The
Scottsdale Group, Susan Ladue, 781-292-1050, email: info@thescottsdalegroup.com,
website: www.thescottsdalegroup.com.
About CMS
Compact Membrane Systems, Inc. (CMS) is a high technology membrane company
providing a family of high productivity, fluorinated polymeric membranes for gas
separation and the associated production of nitrogen and oxygen enriched air.
CMS hollow fiber membrane modules, sized to process engine intake air, are small
enough to fit in mobile engine compartments. Their chemical nature allows them
to maintain performance over extended periods of time while located in the harsh
engine environment. CMS working in conjunction with major industrial gas
companies is positioned to customize prototype membrane systems for engine use
and subsequently supply commercial modules. More information about CMS can be
found on the Internet at www.compactmembrane.com.
Contact: Compact Membrane Systems, Inc., Stuart Nemser, 302-999-7996, email:
snemser@compactmembrane.com.
ABOUT SONEX
Sonex Research, Inc., a leader in the field of combustion technology, is
developing its patented Sonex Combustion System (SCS) piston-based technology
for in-cylinder control of ignition and combustion, designed to increase fuel
mileage and reduce emissions of internal combustion engines. Sonex plans to
complete development, commercialize and market its SCS Stratified Charge Radical
Ignition (SCRI) combustion process to the automotive industry in response to
forthcoming increases in national vehicle fuel mileage standards. Presently,
high mileage, roomy and safe five-passenger automobiles using gasoline, direct
injected (GDI) engines are sold only in Japan and Europe due to high emissions.
Sonex intends to conclusively demonstrate that SCS-SCRI will enable GDI engined
vehicles to achieve 50 mpg (highway) while meeting emissions standards to permit
sale in the U.S. as a viable, near-term alternative to longer-term solutions
such as improvements in hybrid propulsion systems or years of further R&D
required for fuel cell technology to become practical.
Additionally, independent third-party testing has confirmed the potential of the
SCS application for DI diesel engines to reduce harmful soot in-cylinder without
increasing fuel consumption. Sonex is pursuing joint marketing and
commercialization programs for the SCS low soot technology with committed
industrial partners.
Other SCS designs are being used to convert gasoline engines of various sizes to
operate on safer, diesel-type "heavy fuels" for use in military and commercial
applications requiring light weight and safe handling and storage of fuel.
Examples include UAVs (unmanned aerial vehicles) and ATVs (all-terrain vehicles)
such as those used by U.S. defense forces in Afghanistan, as well as outboard
engines, small watercraft used as targets, and generator sets.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
"Forward-looking" statements contained in this announcement, as well as all
publicly disseminated material about the Company, are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Act. Such statements are
based on current expectations, estimates, projections and assumptions by
management with respect to matters such as commercial acceptance of the SCS
technology, the impact of competition, and the Company's financial condition or
results of operations. Readers are cautioned that such statements are not
guarantees of future performance and involve risks and uncertainties that could
cause actual results to differ materially from those expressed in any such
forward-looking statements. Additional information regarding the risks faced by
Sonex is provided in the Company's periodic filings with the Securities and
Exchange Commission under the heading "Risk Factors". Such filings are available
upon request from the Company or online in the EDGAR database at www.sec.gov.
###
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
December 9, 2002
SONEX RESEARCH, INC.
Registrant
/s/ George E. Ponticas
----------------------
George E. Ponticas
Chief Financial Officer