David Hudson recently established the "Science of the Spirit Foundation" to
raise the money needed to finance the construction of the factory to produce
the white powder. During his various lectures, he discussed various aspects
of the foundation rather briefly. In an effort to get more information on
the subject, I visited him in Phoenix on January 15, 1996 and interviewed him
for three hours. On the basis of that interview, I prepared the attached
financial summary.
I sent the summary to Hudson for his comments. He did not acknowledge that
he had either received it or read it. I also sent it to the moderated forum
for posting. It was rejected because Hudson had not approved it. With these
caveats firmly in mind, it is now posted to this unmoderated forum for your
information and comments.
I think the information is important and the members of this forum should
have the opportunity to read it and comment upon it with the clear
understanding that Hudson has not commented on its accuracy. Keep in mind
that Hudson would be accepting fiduciary responsibilities if he were to make
any comments at all on any of this material. Therefore, don't expect him to
ever agree or disagree with anything stated herein.
Mr. Hudson does publish a monthly newsletter to members of the foundation.
We do not have permission to post that newsletter verbatum to this forum.
But, in summary, he has stated that the physical building has been completed
and it is now being equipped. Initial production should start on schedule
around the end of 1996.
Meanwhile, testing of the white powder on cancer patients is progressing on a
widening front with startlingly-good results. And, Hudson delights in
teasing us by saying that no one, except himself, really understands the
white powder yet.
ekarels
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Business Planning
Using monies conributed to his spiritual foundation, the "Science
of the Spirit Foundation", Mr. David Hudson is currently building
a prototype production facility for the white powder. It will be
a small pilot plant capable of processing one ton of ore
per day. The facility will look like an ordinary farm equipment
storage and repair facility surrounded by a chain-link fence.
There will be no indication that it could be used to produce
anything of value.
The white powder itself looks valueless and has no commercial
value to thieves. It is not detectable by airport security
equipment and even if it were found in a physical search,
customs agents would have no concept of its purpose or value.
Thus, it will be possible to freely ship the product worldwide
across international borders without concern. Any chemical
analysis that any governmental agent might perform would
indicate that the material was absolutely "nothing." Even
neutron detectors would be unable to identify it.
Mr. Hudson estimates that the total cost of operating the
prototype facility would be about $18,000 per day and its
output would be about 2400 ounces of white powder per day.
He has stated in his lectures that he can produce $1.5
million of product each day. If you calculate the numbers,
you will find that he values the product at $625 per ounce
while the production costs are only $7.50 per ounce.
There is an inconsistency in this stated valuation as we will
see in the next paragraph.
Mr. Hudson stated that he does not intend to directly sell the
product for industrial applications. Instead, he intends to
license the white powder in return for a stream of royalty
payments, spread over the life of the end product. He intends=
to "give" the white powder to selected customers in return for
that stream of revenue based on the perceived value of the
product to his customers. Perhaps the discounted present value
of the revenue stream can be valued at $625 per ounce over a
period of several years but it is very unlikely that any customer
would be willing to pay $625 per ounce per year for the white
powder. Mr. Hudson did not suggest what the annual royalty
payment per ounce might be. If the life expectancy were set
at ten years, then the discounted annual fee would be more like
$75 to $90 per ounce but these are values I calculated; Mr.
Hudson did not comment on what that value might be.
It is important to know this royalty fee per year per ounce to
allow the return on investment to be calculated. Without that
number, an accurate calculation cannot be performed.
(Incidentally, using $75 per ounce per year as the value,
this is a very attractive investment although a few years
would be required before a substantial return on investment
would be realized.)
Of the total production, Mr. Hudson is giving 25 percent to
the 5000 memberships of his spiritial foundation for personal
use. This is equivalent to about 3 ounces per month per
membership, shipped quarterly. This calculates out to be
about 2,500 milligrams per day. The product flow is projected
to start in mid-1997. The cost of each membership is $500,
thereby yielding $2.5 million to Mr. Hudson for building his plant.
After the 5000 memberships are sold, subscriptions will be closed.