UNITED STATES
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): April 27, 2007
SAVE THE WORLD AIR, INC.
 
(Exact name of registrant as specified in charter)
         
Nevada
(State or other jurisdiction
of incorporation)
  0-29185
(Commission File Number)
  52-2088326
(IRS Employer Identification No.)
5125 Lankershim Boulevard, North Hollywood, California 91601
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (818) 487-8000
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
     
¨
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
   
¨
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
   
¨
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
   
¨
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 8.01 Other Information.
     In December 2002, Save the World Air, Inc. (the “Company”) retained the RAND Corporation (“RAND”) to study the scientific validity and market potential of its original ZEFS technology, help it develop a plan to assess the technical basis for our ZEFS technology and understand the potential market for products incorporating the ZEFS technology if a technical basis were established. RAND outlined a research and evaluation program for the Company to examine the theoretical basis of the ZEFS device and to test the impact of the device when installed on vehicles.
     In early 2003, RAND determined that a comprehensive product-testing program was warranted. As a result, in May 2003, the Company entered into an arrangement under which RAND coordinated and supervised both a theoretical scientific study of the concepts underlying our ZEFS technology, as well as an empirical study. The scope of RAND’s work was limited to testing the ZEFS technology as to its effect on emissions reductions and did not evaluate the effect of the ZEFS technology on performance enhancement or fuel economy. In response to a request for proposal that RAND sent to 14 universities in the United States, Temple University in Philadelphia, Pennsylvania was chosen to research the Company’s ZEFS technology. Temple’s research of the ZEFS technology concluded in early 2005.
     RAND’s other activities on the Company’s behalf concluded in December 2005. Further development of the Company’s technologies continued. In 2006, the MK IV technology was first developed and enhancements have continued into early 2007. The Company submitted to RAND additional test results from the MK technology conducted in January 2007 at Olson Ecologic Labs in Fullerton, California, on three separate motorcycles of differing displacements to demonstrate the effectiveness of more current versions of the Company’s technology. For purposes of its report, RAND did not consider these results in its study as its fieldwork and report had been completed.
     On April 27, 2007, RAND issued its final report, entitled “An Approach to Assessing the Technical Feasibility and Market Potential of a New Automotive Device.” RAND opined that the application of magnetic fields has not been shown in scientific literature to lower the viscosity of automotive fuels. RAND concluded, among other things, that the Company would need to conduct further laboratory studies and in-use testing to determine the effectiveness of the ZEFS technology in reducing pollutants and increasing fuel efficiency in gasoline and diesel-powered vehicles.
     RAND’s analysis of the laboratory testing data which had previously been undertaken for the Company found at best mixed results from these tests, and therefore RAND could not confirm the effectiveness of the ZEFS technology in actual use. In its analysis, RAND did not rely on the recent additional test results conducted at Olson Ecologic Labs. The RAND report said the existing technical literature does not contain credible reports that the application of magnetic fields to either gasoline or diesel fuel oil will reduce the viscosities of these automotive fuels. Researchers at Temple University, who were funded by the Company as a result of a competitive grants process administered by RAND, have reported findings indicating a potential connection between magnetic fields and fuel viscosity. However, RAND reported that such laboratory work has not yet been independently reviewed and published by the Temple University research team, and it does not settle the issue of how magnetic fields might affect actual engine performance.
     RAND concluded that the market potential for products incorporating the ZEFS technology will depend significantly on demonstrating positive results from the Company’s technology, competition posed by other technologies, and regulatory policies and cost-effectiveness to other alternatives.
     The Company notes that RAND tested the Company’s original ZEFS technology as to its effect on emissions reduction only and not performance enhancement or fuel economy. Versions of the ZEFS technology studied by RAND are not being marketed by the Company as emissions reduction products. The Company believes that a reassessment and redesign of its products intended to improve the consistency of third-party test results led to the development and evolution of products incorporating its current emissions reduction technology, MK IV, which has taken place since the completion of RAND’s fieldwork. The Company further believes that these newer iterations of the Company’s technologies have performed

 


 

more consistently in testing at independent labs since the completion of RAND’s fieldwork. The MK IV technology has also undergone independent testing, which the Company believes shows significant improvement when compared to the original ZEFS technology.
Item 9.01 Financial Statements and Exhibits
     Exhibit 99.1 — Press Release dated May 3, 2007.

 


 

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.
         
Date: May 3, 2007  SAVE THE WORLD AIR, INC.
 
 
  By:   /s/ Bruce McKinnon    
    Bruce McKinnon   
    Chief Executive Officer and President   

 

 

         
Exhibit 99.1
FOR IMMEDIATE RELEASE
RAND Corporation Publishes Report on Save The World Air’s Original ZEFS ™ Technology
Los Angeles, Calif., May 3, 2007 — Save The World Air, Inc. (OTCBB: ZEROE.OB) (“STWA”) today announced that the RAND Corporation has published its report on STWA’s original technology, ZEFS™.
Bruce McKinnon, CEO of STWA, stated, “The RAND study provided us guidance for assessing the technical feasibility and market potential of our original ZEFS™ technology, which was extremely beneficial to the product development process at STWA. We are no longer producing or marketing the products evaluated by RAND and our reassessment and redesign of products to improve the consistency of test results led to the development and evolution of products that are successfully being marketed in the US, China, Indonesia and Vietnam, today. Our most recent iteration, the MK IV, has undergone independent testing at Olson Ecological Labs in Fullerton, CA on three separate motorcycles of differing displacements and the results show significant improvement as compared to our original ZEFS™ technology. The scope of RAND’s work was limited to testing the ZEFS technology as to its effect on emissions reductions and did not evaluate the effect of the ZEFS technology on performance enhancement or fuel economy.
“Furthermore, the original RAND research helped us to build our relationship with Temple University, which has been instrumental to our product development. For example, we expect our new electronic fuel technologies, which we are developing through our recently announced licensing agreements with Temple University, to have applicability on most forms of gasoline and diesel injected internal combustion engines, turbine and jet engines, as well as other applications, such as improving the flow of asphalt and paraffin based crude oils in pipelines. STWA is very excited about the opportunity to expand into these industries, some of which have not previously been our focus. I would like to thank the RAND Corporation for its guidance as well as Temple University and our own R&D staff for their diligence in advancing our ground breaking technologies,” he concluded.
In December 2002, STWA retained RAND to assess the technical basis and market potential of the original ZEFS™ technology. In May 2003, STWA entered into an agreement in which RAND would coordinate a competitive grant from STWA for a theoretical scientific study of the concepts underlying the ZEFS™ technology, as well as providing guidance for an empirical study of product performance. In response to a request for proposal (“RFP”) that RAND sent to 14 universities in the United States, Temple University in Philadelphia, Pennsylvania was chosen to research the underlying scientific basis for the original ZEFS™ technology.
Temple’s research concluded in 2005 and RAND’s involvement in support of product testing concluded in December 2005. As a result of Temple’s research, STWA has been able to expand its relationship with the university. In the expanded relationship, which to date includes three patent licenses and a joint R&D agreement, Temple is providing laboratory research and STWA is developing commercial products utilizing this research; the first was a magnetic field crude oil thinning technology developed in May of 2004 and the most recent is the uniform electric field fluid treatment technology announced in February 2007.

 


 

In consultation with researchers at Temple University, STWA pursued further research and refinement of the product throughout 2006, resulting in the patent pending MKIV, which improved its effectiveness and consistency.
A link to the full report can be found on the company’s website at www.stwa.com. The report has been published on the RAND website at http://www.rand.org and in the Library of Congress.
About Save the World Air, Inc.
Save the World Air, Inc., is currently engaged in the product development and initial sales and marketing of its products which using proprietary technologies, can be installed on motor vehicles, motorcycles and stationary engines to reduce harmful emissions. The company’s ECOChargR™ and MAGChargR™ devices using these patented technologies have been proven in repeated independent laboratory testing to both reduce harmful emissions including Green House Gas (GHG) emissions normally caused by catalytic equipment while still improving fuel efficiency and to enhance overall engine performance. The company’s patent-pending CAT-MATE ® devices have been proven to reduce harmful CO, NOx, and HC emissions caused by internal combustion engines in repeated independent laboratory testing. For more information, visit the company’s website at www.stwa.com.
Safe Harbor Statement
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as market acceptance, ability to attract and retain customers, success of marketing and sales efforts, product performance, competitive products and pricing, growth in targeted markets, risks of foreign operations, and other information detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission.
Contacts:
     
Bruce McKinnon
  Amy Glynn, CFA
Save The World Air, Inc
  Cameron Associates
President & CEO
  Investor Relations
(818) 487-8000
  (212) 554-5464
mckinnon@stwa.com
  amy@cameronassoc.com
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