Raw from SEC EDGAR 10q 05 04 99 for FASC
During the six months ending December 31, 1998, the Company
incurred an operating loss of $34,842. This compares favorably with
operating results for the previous fiscal wherein the loss for the year
amounted to in excess of $1,000,000. The company continues to expend
funds on research, $25,575 for the year to date, primarily in the
sludge process that affects every municipality in North America. The
Company is optimistic that the processing of sludge can be done
significantly cheaper as well as creating a marketable by-product. It
will continue to seek financing to complete this aspect of the
technology.
The Company has reconfigured the machine for biowaste and
completed an onsite-testing program for biowaste. Test results from the
biowaste test site are very positive and the Company was very pleased
with the Pathogen count and the moisture reduction in the test site. It
is expected that a more extensive test will be conducted in the next
three to six months prior to proceeding to its first commercial
application.
The Bakersfield plant suspended operations on July 1, 1998 as the
company lacked sufficient working capital to operate the plant
effectively. The company is currently seeking a joint venture partner
capable of operating the plant facilities. Discussions are in progress
with a prospective partner.
INFLATION
Inflation has not been a factor in the six months ending December
31, 1998. This is consistent with the fiscal year ending June 30, 1998.
There are no capital projects underway and the only expenditures are
operational, which are not adversely affected by inflation.
QUARTER ENDED DECEMBER 31, 1998
In the fall of 1998, the Company reached agreement with Greenleaf
Fibre Company Ltd of Northern Ireland to conduct research and
development on the commercial viability of the KDS as it relates to the
disintegration of rubber and rubber related products. A KDS system was
shipped to Northern Ireland and installed on their premises. After
studies of the basic technology are completed and any modification of
the basic technology completed, Green Leaf intends to commence pilot
plant testing and it is expected that testing will be complete by the
end of June 1999.
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The Company also shipped a KDS unit to a military site in Utah,
to be used by the U.S. military as part of a system for disposal of
contaminated wood products. The unit exceeded the standards for
throughput and particle size during acceptance testing. Installation of
the complete system is scheduled by June 30, 1999.
All operating results are reflected in U.S. dollars and any
foreign exchange loss or gain is nominal in that the value of the
Canadian dollar to the U.S. dollar has only changed moderately and most
expenses and funds and funds raised are in U.S. dollars. The conversion
rate over the past quarter has varied between US$0.64 and US$0.66 to
CDN$1.00.
FOREIGN OPERATIONS
The Company is conducting its biowaste testing in the state of
Washington, having moved its equipment from Chilliwack, British
Columbia, Canada. The Company is currently testing a KDS machine near
Tonasket, Washington. The focus of the testing, in the quarter ending
December 31, 1998, is biowaste and the preparation of the machine for
commercial applications. Corporate and administrative offices are
maintained in Vancouver, British Columbia, Canada.
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