BHUS News!!!!!!!!
10KSB: BACH-HAUSER INC
(EDGAR Online via COMTEX) -- ITEM 6. MANAGEMENT'S PLAN OF OPERATION
NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
This registration statement contains statements that are forward- looking statements within the
meaning of the federal securities laws. These include statements about our expectations, beliefs,
intentions or strategies for the future, which we indicate by words or phrases such as "anticipate,"
"expect," "intend," "plan," "will," "believe" and similar language. These statements involve known and
unknown risks, including those resulting from economic and market conditions, the regulatory
environment in which we operate, competitive activities, and other business conditions, and are
subject to uncertainties and assumptions set forth elsewhere in this registration statement. Our
actual results may differ materially from results anticipated in these forward-looking statements. We
base our forward-looking statements on information currently available to us, and we assume no
obligation to update these statements.
Plan of Operation
The Company's plan of operation is to provide customers with the
highest quality service to meet their specific needs for the cost-
effective processing, recycling and disposal of municipal,
industrial, commercial and institutional solid waste and to meet
landfill reduction goals.
Through the licensing agreement, the Company, through the TCR Total Recycling System, is able to
offer municipalities and counties with a population of 100,000 or more an affordable environmental
solution to waste disposal, including a waste management plant which incorporates the collection
and processing of waste into three streams:
1. recyclables 2. organic compostables 3. residuals (for landfill or waste-to-energy recovery)
The TCR Total Recycling System is a two-bag system. It differs from conventional waste
management and recycling methods in that the custom-built recovery facility receives mixed loads of
municipal, commercial and industrial sold waste contained in both Blue and Black Bags. The use of
a two-bag system provides a simple, efficient and cost-effective solution to waste
management. Blue Bags (recyclable items) allow easy
identification and total recovery of assets, while the opening
and sorting of Black Bag contents (balance of the waste stream)
ensures total recovery of recyclable items which would otherwise
be lost to landfill.
Municipal waste is received in the materials recovery facility
and is separated into two processing categories - recyclables and
household waste. Blue Bag contents (recyclables) are sorted and
conveyed to a baler further processing, then internally brokered
to end users. Black Bag contents (wet waste) are sorted to
recover any recyclable material and processed to remove non-
compostable contaminants.
Any organic material retrieved from sorting Black Bag contents is conveyed to a low speed, high
torque shredder. The organic material, cut to optimize size for composting, is then conveyed to a
high speed composting unit. Computerized control and monitoring of the compost, by a
computer-controlled robot which turns and irrigates the material, ensures specific conditions are
maintained throughout the 28-day composting process. The Company monitors moisture content,
temperature, pH, oxygen, and carbon to nitrogen ratios to ensure optimum conditions for anaerobic
decomposition and the elimination of human/plant pathogens.
Water that comes into contact with any stage of the compost process (ie. Storm water from curing
pad) is kept onsite to eliminate impacts, stored in a retention pond, and used back in the process to
ensure optimum moisture levels. Odor control is maintained through the use of enzymatic mist,
hygiene, and an award winning bio-filter system. The stabilized compost is then tested and
stockpiled before being shipped to end users. The end result is high quality compost which can be
supplied to customers at a very attractive price.
Management believes that the TCR Total Recycling System dramatically increases the amount of
recyclable material recovered while eliminating the need for different collection trucks, specialized
equipment and Blue Boxes. With its potential for an 80% diversion away from landfill, the Company's
alternative to the costly and ineffective Blue Box program reduces long-term maintenance costs for
existing landfill sites. In conventional systems, many recyclable items and organic compostables are
lost when the traditional Black Bag goes directly to landfill. The TCR Total Recycling System ensures
improperly disposed items are recovered.
Current Trends
Current trends show that stakeholder roles and responsibilities
are changing. As government budgets continue to be down-sized,
industry is increasingly being expected to contribute solutions
through stewardship initiatives. While corporations are re-
assessing their waste production and disposal attitudes, they are
looking for opportunities to divert waste away from landfill and
towards more responsible alternatives. In addition, there is a
more informed, concerned and involved public which is also
playing a key role in the evolution of the waste management
industry.
The most obvious reasons for recycling are the environmental benefits. Using recycled rather than
virgin materials uses less energy, emits less pollution and reduces the use of non-renewable
resources. Producing compost reduces pollution and provides a capable soil amendment. Land
uses have made soil susceptible to processes that diminish its organic content.
A soil's organic content is essential for retaining moisture, aiding water infiltration, retaining carbon,
nutrient storage and supply, cation exchange, and structural stability to combat erosion and
compaction. Compost from municipal waste has shown to be a capable amendment. Furthermore,
compost used on agricultural land has shown to improve crop resistance to disease.
The demand for compost is high, with markets existing in agriculture (mixed into the soil or as a
mulch on farms, as a peat substitute in greenhouses), nurseries, landscaping, land reclamation, golf
courses, and the gardening industry. A survey conducted by the Composting Council in Canada
showed that 70% of respondents either agreed or strongly agreed that compost made from
municipal waste is an acceptable product.
The alternatives to landfill, recycling, and composting, is incineration. With incineration, the left-over
residue material is classified as hazardous waste and must itself be dumped. At the same time
there is increasing public opposition to air pollution associated with incineration. However recent
innovations have shown that with high enough temperatures and improved scrubbing, incineration is
potentially viable.
Another noticeable trend involves transportation issues. The design of the next generation of waste
collection vehicles and systems is being studied carefully. The ability to use on vehicle to collect
more than one stream of waste materials simultaneously (i.e., one truck to collect recyclables,
organics and garbage) is very attractive and represents considerable savings in fuel, maintenance
and other related costs. There are, of course, additional environmental benefits associated with
reduce fuel consumption and lower levels of air pollution. Management believes that the TCR Total
Recycling System provides municipalities with a foolproof method of meeting government mandates
for diverting from landfill by 50%, while converting recyclable solid waste into marketable
commodities. Management believes that the system provides a solution to the environmental
problems that befall the traditional methods of waste disposal.
Competition
Most competitors either operate a blue box MRF and a centralized
compost facility or a wet-dry facility. Those that operate a blue
box MRF and centralized compost facility do not have the ability
to sort mixed waste. Those companies that operate a wet-dry
facility have demonstrated comparable processing volumes with
lesser diversion percentages, and cost taxpayers millions. As
most competitors have not constructed and/or operated facilities
that allow for a totally integrated system, management believes
the Company is left with a sales and marketing advantage.
Regulation and Taxation
The Investment Company Act of 1940 classifies as an "investment
company" an issuer which (a) is or holds itself out as being
engaged primarily in the business of investing, reinvesting or
trading securities, or (b) is engaged or proposes to engage in
the business of investing, reinvesting, owning, holding, or
trading in securities, and owns or proposes to acquire investment
securities having a value exceeding 40 percent of the value of
its total assets. While the Company does not intend to engage in
such activities, the Company may obtain and hold a minority
interest in a number of development stage enterprises. The
Company could be expected to incur significant registration and
compliance costs if required to register under the Investment
Company Act of 1940. Accordingly, management will continue to
review the Company's activities from time to time with a view
toward reducing the likelihood the Company could be classified as
an "investment company".
The Company intends to structure a merger or acquisition in such manner as to minimize Federal
and state tax consequences to the Company and to any target company.
Employees
The Company's only employees at the present time are its officers
and directors, who will devote as much time as the Board of
Directors determine is necessary to carry out the affairs of the
Company. (See "Item 9").
On December 8, 2000, Bach-Hauser, Inc. entered into a licensing and software agreement with
Aegiss International, whereby Bach- Hauser would acquire a license for the technology and certain
rights to a software program in exchange for 150,000 shares of its common stock. On February 14,
2001, Aegiss International informed Bach-Hauser of its desire to cancel such agreement. Therefore
the shares which were issued pursuant to the agreement were to have been cancelled.
On January 18, 2002, Dr. E. Arlin Torbett resigned as a member of the Board of Directors. The
remaining board members have not filled the vacancy created by Dr. Torbett's resignation.
(c) 1995-2002 Cybernet Data Systems, Inc. All Rights Reserved
Received by Edgar Online Apr 17, 2002 |
