here's the last of it...enjoy.
i got my trooper 1/4ly yesterday. does this say anything about omreht's
commitment to prompt reporting? Nothing else to add since I haven't been diggin'
the past few days...
Halifax Bio Conversion. Demand and need for a Thermo MasterT Plant in Halifax
has the Company placing high priority on development of this project. The
Company has placed a deposit on a plant site and is working through
Metropolitan Planning and Engineering to secure permitting. The Company is in
negotiations with a major local business entity which may become a joint venture
partner in this project. Nova Scotia is a leader in environmental legislation and
has made a strong commitment to environmentally sound management of
organic waste materials. Company representatives are working with authorities
from the Ministry of the Environment in order to complete siting and develop a
Thermo MasterT Plant near Halifax.
Washington State. The Company believes Washington State represents a major
opportunity for placement of Thermo MasterT Plants. Since the Skagit Bio
Conversion project has become known to other counties, the Company has
received regular contacts from other counties, municipalities and cities that
understand the importance of a Thermo MasterT Plant to their region.
Development activity is moving forward on individual opportunities for Seattle
(King County), Olympia, Vancouver and in Yakima County Washington.
New England States. The Company believes New England is a highly attractive
market for Thermo TechT with high population density and very attractive
tipping fees. With the powerful endorsement from the Devens Enterprise
Commission, the Company sees this as its next regional market for development.
International. The Company is awaiting the definitive report it has commissioned
through BDO Dunwoody, through its Warsaw offices, to complete on the
feasibility of siting a plant in Warsaw, Poland. The Company wants to ensure raw
materials are available and all other key business matters favor establishment of
a plant. Feasibility must be verified before the Company can commit to
construction of a Thermo MasterT Plant. Upon completion of the BDO review
and confirmation of availability of raw materials at attractive tipping fees as well
as affirmation of other key details, agreements will be concluded for construction
and operation of Thermo TechT's first offshore Thermo MasterT Plant.
RESULTS OF OPERATIONS
Three months ended July 31, 1997 and 1996
The Company continued its significant growth recording a gross profit of
$248,390. This represents an improvement of $360,745 over the same quarter in
the previous fiscal year. During the first quarter of the last fiscal year, the
Company recorded a gross loss of $112,355. Revenues increased to $985,945 for
the first quarter, in comparison to $729,215 for the first quarter of the last fiscal
year. The increase is attributable to increased raw waste processing volumes at
the Company's Hamilton plant. Operating costs decreased to $737,555 for the
first quarter, in comparison to $841,570 for the first quarter of the last fiscal year.
The decrease in operating costs is attributable to increased operating
efficiencies at the Company's Hamilton plant.
The Company recorded a net loss for the quarter of $1,226,959. This net loss is
before non-recurring, non-cash and research and development items. The net
loss, before non-recurring, non-cash and research and development items
decreased by $178,239 from the net loss recorded for the first quarter of the last
fiscal year.
Selling, general and administrative expenses increased to $1,405,198 for the first
quarter in comparison to $1,387,487 for the first quarter of the last fiscal year.
The increase of only $17,711 was incurred at a time when the Company steadily
increased its activity in the area of plant construction, acquisition of key staff,
aggressive marketing programs and establishment of new headquarters. The
Company has been able to maintain its selling, general and administrive
expenses by implementing cost reduction measures.
The Company's assets increased to $32,279,631 for the three months ending July
31, 1997, representing an increase of $1,046,626 from July 31, 1996. The increase
in assets was primarily due to the increase in the Company's engineering design
package and pre-construction costs.
The Company's long term liabilities decreased to $799,295 for the three months
ending July 31, 1997, representing a decrease in liabilities of $204,201 from July
31, 1996. The decrease in long term liabilities was representative of the reduction
in the amount of outstanding equipment loans and obligations under capital
leases.
Liquidity and Capital Resources
The Company had a working capital deficit of $306,107 as at July 31, 1997 in
comparison to a working capital deficit of $469,933 as at July 31, 1996. The
Company had cash at July 31, 1997 of $367,458, in comparison to a cash deficit
of $224,051 as at July 31, 1996.
The Company has received US$1,750,000 pursuant to a previous financing, which
financing did not complete. Due to certain defaults by the purchaser, the
Company has taken the position certain conversion provisions and registration
rights are not effective. The Company anticipates concluding the financing on
acceptable terms.
The Company expects to be able to employ debt financing for future plant
construction based on the performance of its Hamilton plant and written
assurances of waste supply. The Company intends to negotiate joint venture or
similar arrangements with waste management industry participants in selected
markets for financing, construction, and operation of Thermo MasterT Plants.
Cash proceeds from joint venture agreements are expected to finance a portion
of the cost associated with the construction of additional plants. The Company
is enacting a strategic plan to secure debt financing from a wide range of
sources.
The Company expects its needs for capital to increase as it proceeds with its
plans for the construction of additional Thermo MasterT Plants.
PART 11
OTHER INFORMATION
Item 1. Legal Proceedings
Various lawsuits have been filed against the company for incidents which arose
in the ordinary course of business. In the opinion of management, the outcome
of the lawsuits, now pending, would not be material to operations. Should any
loss result from the resolution of these claims, such loss will be chareged to
operations in the year of resolution.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
THERMO TECH TECHNOLOGIES Inc.
DATE: By:
(Rene J. Branconnier, President
and Chief Executive Officer)
DATE: By:
(Daniel B. Cumming, Director)
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