RCEM - Rochem Environmental, Inc. has been treating waste water generated by a
hydrodrilling process at the Chevron refinery in Pascagoula, Mississippi.
Another contractor has provided the hydrodrilling service. In order to
streamline their contracting, Chevron decided to combine both of these
activities under one contract and offered it for bids. The Company was
notified on July 2, 1999 that it was not selected as the final contractor
for both the hydrodrilling and waste water treatment service. Therefore,
as of August 1999, the Company will no longer provide these services,
which has been a significant source of revenue for the Company.
For the fiscal year ended September 30, 1997, the Company's revenue
totaled $1,427,202 of which $768,738 was generated by service work at the
Chevron refinery. For the fiscal year ended September 30, 1998, the
Company's revenue totaled $1,427,257 of which $772,539 was generated by
service work at the Chevron refinery. For the six months ended March 31,
1999 revenue generated by the service work at the Chevron refinery was
$400,777 of the total revenue of $1,083,482.
The Company is in negotiations for several contracts that range in value
from $250,000 to $4,500,000 that the Company believes will be finalized in
the near future and which are expected to generate sufficient cash flows
to continue to fund operations and meet working capital needs during
Fiscal 1999. Management can provide no assurance these negotiations will
result in firm contracts. |
