**ENVK DD**, part II
Please read disclaimer at end of part IV
FAQ continued
Q:When will ENVIROKARE have product ready to show the market?
A:Based on recent in house testing ENVIROKARE believes that it can now enter into the final stages of product development reducing the weight of it’s current prototypes and making the general appearance of the pallet more acceptable for display purposes in retail situations. The current timetable calls for market ready samples to be ready late March early April 2001.
Q:How much will the pallets weight?
A:It is believed that the final weight of ENVIROKARE’s “E” Pallet will be in the range of 57 to 60 pounds while the smaller beverage pallet will weigh less than 50 pounds.
Q:How much will an Envirokare pallet cost?
A:The final purchase price has not been established for any of the ENVIROKARE pallets. It is felt that given the TPF Process’ ability to significantly reduce the manufacturing costs for thermoplastic composites that the pallets will be positioned approximately 20% to 25 % below comparable plastic pallets.
Q:How long-will an ENVIROKARE Pallet last?
A:It is expected that the ENVIROKARE pallets will last as long as their’ plastic counterparts or approximately 100 trips. A more definitive answer will be available in the near future after the final pallet design has been approved.
*******************************
Envirokare-> News excerpts
enhancementcapital.com
Envirokare-> In the news
enhancementcapital.com
******************************
Review of EDGAR filings
Form: 10QSB Filing Date: 11/15/1999
freeedgar.com
Nothing really significant but this:
"NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Envirokare Tech, Inc., (hereinafter "the Company", was incorporated in June 1998
under the laws of the State of Nevada. In December 1998, the Company acquired
the property, assets and undertakings of a business manufacturing and developing
a rubber mold technology and rights to a pending patent for the development of a
pallet made of recycled materials."
And this:
"As shown in the accompanying financial statements, the Company incurred a net
loss of $34,427 for 1998 and a net loss of $167,664 for the first nine months of
1999. At December 31, 1998, current liabilities exceeded current assets by
$61,267 and at September 30, 1999, current assets exceeded current liabilities
by $119,765."
And this:
"As of September 30, 1999, 5,141,070, shares of common stock were issued and
outstanding and 500,000 preferred shares were to be issued (See Note 9).
On February 22, 1999, the Board of Directors authorized a 2-for-1 reverse stock
split of the Company's $.001 par value common stock. As a result of the reverse
split, 5,000,000 shares were cancelled and additional paid-in capital was
increased by $5,000. The financial statements have been adjusted to reflect the
reverse stock split as 5,000,000 shares issued at $.002. All references in the
accompanying financial statements to the number of common shares and per-share
amounts for 1998 have been restated to reflect the reverse stock split."
And this:
"The Company filed a Certificate of Amendment of its Articles on October 12, 1999
designating 10,000,000 of its shares to Series A convertible preferred stock
with a par value of $0.001. Each preferred stock shall be converted at the
option of the holder into ten common shares within two years of the date of
purchase."
They started from:
"On or about December 15, 1998, the Registrant purchased certain assets,
including, but not limited to, all of the equipment, rubber molds technology and
the rights to a pending patent for the development of a pallet made of recycled
materials from Real Morel, a businessman operating International Pallet Control
Systems Inc., a private Canadian company ("International Pallet") and The Pallet
Company, a private Canadian company ("Pallet Company"). Mr. Morel accepted a
position with the Registrant as a consultant to provide knowledge and expertise
for the development of the Registrant's anticipated pallet manufacturing
activities."
Also:
"Currently, the Registrant's only source of liquidity is through the sale of its
common stock and through loans. However, as discussed above, the Registrant
believes it will begin realizing revenue from its operations in or around the
second quarter of 2000. "
The company is at this time working on the rubber-based pallet and has and will conduct more testing on it. They are a couple months away from actual production and sales. Here, EPS basic= EPS diluted = (0.033) loss, for a 9-month period.
Form: 10KSB Filing Date: 4/7/2000
freeedgar.com
Included in this filing is:
"On November 16, 1999, the Company and Thermoplastic Composite Designs, Inc.
("TCD"), entered into a product/technology development contract in connection
with TCD's assisting the Company in modifying earlier versions of the Pallet
design. TCD is a composite systems engineering and design corporation."
The company is still looking at replacing wood pallets by an other material, and know considering plastic and rubber together as materials. They repeat here:
"The Company believes that its new molded-plastic/rubber technology may
capture a small but significant portion of the North American pallet market
during the next few years. The Company believes that there is an increasing
demand for alternate material pallets because, as discussed above, traditional
wood pallets are expensive, and currently used alternative materials such as
metal, wood derivatives and plastic, are expensive, present operating problems,
or both. "
Letters of intent:
"In December 1999, the Company
announced that it had received a letter of intent from Cultech International
Corporation to manufacture and market the Pallet in Asia. Cultech intends to
obtain exclusive manufacturing and marketing rights to the Pallet for all of
Asia. The terms of the letter of intent provide that the Company will deliver to
Cultech a manufacturing system that will enable Cultech to produce one million
Pallets per year."
"In March 2000, the Company announced that it had received a production and
marketing letter of intent from Bryan Container Company, located in Bryan,
Texas. Bryan intends to become the first U.S.-based licensee to market the Company's Pallet.
Bryan, which manufactures large container lids among other container products,
plans to modify its production site to accommodate the necessary changes to
incorporate the Pallet manufacturing system, using the Company's custom Pallet
molds. Also in March 2000, the Company announced that it had received a
production and marketing letter of intent from International Pallets of
California. The letter of intent provides for the parties to enter into a formal
agreement that will allow International Pallets to produce, market and sell the
Pallet in California and Nevada."
Why they have an interest in rubber as a material:
The Company anticipates that its manufacturing processes will utilize
significant amounts of crumb rubber and plastic, differing in grade and price
per pound. The major producers of crumb rubber in the United States are Baker
Rubber, EnviroTire, Rouse Rubber and Recovery Technologies. Licensees, with the
Company's source of supply assistance, will be responsible for establishing
purchasing commitments and cycles with raw material suppliers. The Company
anticipates that with the cost of rubber increasing during the past few years,
the demand for crumb rubber will increase. Crumb rubber is currently used for
the construction of athletic fields, road fill, landfill, filler in new tires,
engineering applications and agricultural applications. The Company anticipates
that new and innovative uses for the world's excess of discarded tires will
continue to be developed. Current indications are that there is adequate raw
material supply to meet currently projected domestic finished product Pallet
program requirements.
The risks involved with current materials are listed, and the company stated where they are with rubber in the corporate profile on the website:Although still, high on the company’s
priority list the high content rubber pallet would be impractical from a
business standpoint, to introduce at this time.
About competition:
"The Company currently faces significant competition with respect to the
Pallet, and this competition may increase as new competitors enter the market.
Competition consists mainly of small, single-location pallet companies with
limited resources; however, there are several large pallet manufacturing and
distribution companies."
And one of the big ones is Chep Pallets, who George Lois and Gary Garkowski worked for, as stated in sept 7 PR.
Patents:
"Jeannie Runnalls and Greg Andrascik recently applied for patent protection
in the United States and have been issued a Patent Pending status on the Pallet
design which includes the combination of substrate components that comprise the
Composite Pallet. "Composite" is defined as the basic Pallet materials or
constituents that are combined to form the finished product."
Ms. Runnalls has sold for $19390 between sept 13 and nov 28 of this year and has a proposed sale for $19200 more. Not aware of her reasons yet.
biz.yahoo.com
Dynamics of the stock related info, and f/s:
"In September 1999, by written consent in lieu of a meeting in accordance
with Section 78.320 of the General Corporation Law of the State of Nevada, the
shareholders approved the amendment of the Company's Articles of Incorporation
to authorize 10,000,000 shares of Series A Convertible Preferred Stock, par
value $.001. Each preferred share is convertible, at the option of the holder
thereof, into 10 shares of the Company's common stock. Each preferred share
carries ten votes. (Following the Company's 2-for-1 stock split payable March 6,
2000, each preferred share is now convertible into 20 shares of the Company's
common stock, and each preferred share now carries twenty votes.)"
Quoting on otcbb:
"The Company's common shares commenced
trading on the OTC Bulletin Board on December 1, 1999. From December 1, 1999, to
December 31, 1999, the high closing price was $3.125 and the low closing price
was $1.50. "
This doesn't reflect the f/s above. So they reversed 1-2 in Feb 99 and forward split 2-1 in March 2000, the latter being a 100% stock dividend.
Plan of ops:
"Since its inception in June 1998, the Company has
developed a single piece Pallet manufactured primarily from recycled plastic and
crumb rubber derived from discarded tires. The Company is currently in the final
stages of testing this product, and expects to begin generating licensing
revenues during the third quarter of 2000, as the Company's licensees begin
production of the Pallet."
They are now aiming for 3rd quarter 2000, with the rubber/plastic pallet. The delay follows more testing of the pallet, judged necessary by the company.
President resigns:
"Charles W. Thomas, president of the Company, tendered his resignation effective
February 1, 2000 due to poor health."
"At December 31, 1999, Jeannie M. Runnalls was Vice President of
Administration and a director of the Company. Effective January 24, 1999, she
replaced Mr. Thomas as President and Secretary of the Company. She has been a
director of the Company since March 10, 1999 and served as Vice President of
Administration of the Company from March 1999 until becoming President in
January 2000."
Mr. Thomas was compensated 150,000 stock options exercisable at $1.15 by sept 2009. Those options were subject to shareholders approval, like those other compensations:
"Mr. Thomas's compensation was disclosed above. The Company did not pay any
cash compensation to any other director for services as a director during the
fiscal year ended December 31, 1999.
The Company has no standard arrangement to compensate directors for their
services in their capacity as directors except for the granting from time to
time of stock options in accordance with the Company's 1999 Stock Plan. Such
grants are subject to approval of the Company's 1999 Stock Option Plan by the
Company's shareholders. The Company plans to request shareholder approval of the
Plan at its annual meeting of shareholders to be held in May 2000. During the
last fiscal year, the Company granted its directors, other than Mr. Thomas,
non-qualified stock options to purchase a total of 300,000 Envirokare common
shares. It granted 50,000 to Mr. Still, 100,000 to Mr. Zuch and 150,000 to Ms.
Runnalls. These amounts have not been adjusted to reflect the Company's 2-for-1
stock split, effected in the form of a 100% stock dividend, payable on March 6,
2000, to shareholders of record on March 1, 2000. These options are exercisable
up to the close of business on September 29, 2009."
The company has EPS basic and EPS diluted of (0.17) loss at the end of 1999, 12 month period. This is after the reverse split and before the forward split. Also, the share structure has now 10,000,000 preferred shares authorized, of which details figure in the filings:
"the capitalization of the corporation
be increased from 200,000,000 shares of common stock at $.001 par value to
200,000,000 shares of Common Stock, par value $.001 per share and
10,000,000 shares of Series A Convertible Preferred Stock, par value $.001
per share, said preferred shares shall be subject to those designations,
preferences, and relative rights, qualifications and restrictions as the
Board of Directors of this Corporation may designate from time to time."
Form: 10QSB Filing Date: 5/11/2000
freeedgar.com
A few numbers change, but the company's plans and products still look the same as the previous filings:
"The Company is not yet generating revenues. For the period ended March 31,
2000, the Company had a net loss of $87,489. The Company's net loss accumulated
for the period from June 15, 1998 (inception) to March 31, 2000 was $1,015,089.
The Company anticipates that it will begin to generate revenue during the third
quarter of 2000 upon the planned start of production of the Pallet by the
Company's licensees. At March 31, 2000 the Company had current assets of
$413,188, consisting of $321,898 in cash and $91,290 in prepaid expenses. During
the first quarter of 2000, the Company's cash resources increased primarily due
to issuance of the Company's common stock for aggregate proceeds to the Company
of $257,500. At March 31, 2000 the Company had current liabilities of $86,484.
At March 31, 2000 current assets exceeded current liabilities by $326,704."
"To date, the Company has raised capital through private placements of
common stock and convertible preferred stock. The Company has budgeted
expenditures in 2000 of $504,282, and plans to raise $550,000 in the next
several months to cover its proposed expenditures. These funds may be raised
through additional equity financings, as well as borrowings and other resources.
The Company is currently holding discussions with potential investors. With the
capital it has raised to date, and the additional $550,000 it plans to raise in
the next several months, the Company now believes that it is at the point where
it can move forward with its production and marketing plans, which in the short
term include the start-up of Pallet manufacturing operations by Company
licensees, and in the longer term include adding additional licensees and
expanding the product line mix. Management of the Company believes that its
financing plans described above will enable it to meet its obligations including
cash requirements for at least the next twelve months to March 31, 2001."
Form: 10QSB/A Filing Date: 5/22/2000
freeedgar.com
Accountant's Review Report:
"The financial statements for the year ended December 31, 1999 were audited by us
and we expressed an unqualified opinion on them in our report dated March 31,
2000, but we have not performed any auditing procedures since that date."
In other words, the statements of financial position as of March 31, 2000 are unaudited. I found nothing changed of importance in the last 2 filings.
Form: 10QSB Filing Date: 8/14/2000
freeedgar.com
Short term notes:
"Short-term notes payable at June 30, 2000 and December 31, 1999 consist of
unsecured notes bearing 10% interest and are dated between August 18, 1998 and
December 16, 1998. The short-term notes are payable to Mr. Real Morel and are
due on demand. The principal amount on the notes is $63,965. Interest expense
recorded on the notes payable at June 30, 2000 and 1999 was $3,095 and $1,864,
respectively."
"In May 2000, Mr. Real Morel filed suit for payment of these notes in the Supreme
Court of British Columbia, Canada. Mr. Morel alleges non-payment by the company
of amounts due pursuant to demand promissory notes made by the Company to Mr.
Morel during 1998, after consultation with British Columbia legal counsel and a
review of the circumstances surrounding the issuance of the notes, the Company
has resolved to dispute liability. Management of the Company believes that the
outcome will not have a material adverse effect on the financial position of the
Company."
Plan of operations - overview
"The Company is currently in the development stage and has not yet generated
any operating revenues. Since its inception in June 1998, the Company has
developed a single piece molded pallet, E Pallet(TM), manufactured primarily
from recycled plastics and granulated rubber derived from discarded tires
(commonly referred to as "crumb rubber"). The Company is currently in the final
stages of testing this product, and expects to begin generating
licensing-related fees during the fourth quarter of 2000. Further, the Company's
management expects that the Company and/or its licensees will commence
commercial production of the E Pallet(TM) early in 2001."
There is a bit more delays for the production. Note that they are now talking of the E Pallet, and this still does contain rubber as a material.
Also this:
"The Company
expects to have potential customers evaluate the E Pallet(TM) through in-use
testing beginning in the third quarter of 2000. The Company believes that after
a final engineering analysis report is completed, the Company and/or its
licensees will commence commercial production of the E Pallet(TM) once
appropriate production facilities are procured and commissioned for production,
currently anticipated for early 2001."
The company still is in a development stage, but expects revenues:
"The Company is not yet generating revenues. For the six months ended June
30, 2000, the Company had a net loss of $249,260. The Company's net loss
accumulated for the period from June 15, 1998 (inception) to June 30, 2000 was
$1,176,860. The Company anticipates that it will begin to generate revenue early
in 2001, upon the planned start of production of the E Pallet(TM) by the Company
and/or its licensees. At June 30, 2000 the Company had current assets of
$86,432, consisting of $64,687 in cash and $21,745 in prepaid expenses. During
the six months ended June 30, 2000, the Company's cash resources increased
slightly, reflecting increased research and development costs and prepaid
licensing fees, offset by cash raised by issuance of the Company's common stock
for aggregate proceeds to the Company of $257,500. At June 30, 2000 the Company
had current liabilities of $71,856. At June 30, 2000 current assets exceeded
current liabilities by $14,576. "
Some more:
"To date, the Company has raised capital through private placements of
common stock and convertible preferred stock. The Company has budgeted
expenditures for the twelve months through June 2001 of $504,282, and plans to
raise $550,000 in the next several months to cover its proposed expenditures.
These funds may be raised through additional equity financings, as well as
borrowings and other resources. The Company is currently holding discussions
with potential investors. With the capital it has raised to date, and the
additional $550,000 it plans to raise in the next several months, the Company
now believes that it is at the point where it can move forward with its
production and marketing plans, which in the short term include the start-up of
E Pallet(TM) manufacturing operations by Company licensees, and in the longer
term include adding additional licensees and expanding the product line mix.
Management of the Company believes that its financing plans described above will
enable it to meet its obligations including cash requirements for at least the
next twelve months to June 30, 2001."
A bit on product testing:
"Additional E Pallet(TM) testing is
scheduled during August 2000 at Virginia Polytechnic Institute and State
University testing facility. The Company's development focus is to ensure that
the E Pallet(TM) meets or exceeds current performance standards for hardwood and
plastic pallets, and that the E Pallet(TM) will be superior in performance and
will be cost effective to produce and sell. In particular, the Company's
development focuses on the safety, structural integrity, reliability, and cost
effectiveness of the E Pallet(TM), involving in-depth analysis of compound
variables and strengths, extrusion methods and equipment modifications. The
Company believes that after extensive studies and refinement, it has minimized
or eliminated any concerns as to the E Pallet's(TM) design and ability to
perform. The Company plans to conduct further testing which it believes will
provide information as to the longevity of the E Pallet(TM) compared to other
materials and provide marketing strategies for the Company."
The company gives an update on the 3 letters of intent. As a restatement:
"In December 1999, the Company
announced that it had received a letter of intent from Cultech International
Corporation to manufacture and market the E Pallet(TM) in Asia. Cultech intends
to obtain exclusive manufacturing and marketing rights to the E Pallet(TM) for
all of Asia."
and:
"In March 2000, the Company announced that it had received a production and
marketing letter of intent from Bryan Container Company, located in Bryan,
Texas. "
And about the 3rd one:
"Also in March 2000, the Company announced
that it had received a production and marketing letter of intent from
International Pallets of California, providing for the parties to enter into a
formal agreement to allow International Pallets to produce, market and sell the
E Pallet(TM) in California and Nevada. However, in June 2000, the Company and
International Pallets decided not to pursue these contemplated arrangements and
are not negotiating any formal agreement. The Company currently plans to build
and operate a wholly owned operation for California and Nevada."
Recent developments:
"In July 2000, the Company announced that it had signed a letter of intent
with Electroship (NY) Inc. ("Electroship"), whereby the Company would acquire
all of the outstanding stock of Electroship in exchange for common stock of the
Company, with other terms and conditions to be agreed upon. It is currently
anticipated that the Company would issue approximately 2.5 million shares of its
common stock in exchange for the Electroship shares. Electroship, based in Long
Island, New York, develops wireless tracking technology for the shipping
industry."
As in the press release below (see part III).
Form: 10QSB Filing Date: 11/14/2000
freeedgar.com
Most recent # of shares oustanding:
"State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: The total number of shares of Common
Stock, par value $.001 per share, outstanding as of November 3, 2000, was
11,289,478"
Plan of operations - overview
"The Company had originally planned to have its licensees begin producing
the E Pallet(TM) in June 2000 but decided to conduct additional tests, which has
delayed the previously planned production start date by approximately nine
months. Significantly improved substrate technology caused the Company to
rethink their initial production start-up dates."
The previous filings state 4 months, not 9. The rest of this paragraph is about the same, with production to start early in 2001.
New officer:
"Effective September 5, 2000, Richard M. Clark was elected a Director of the
Company. He was also elected as President, Secretary and Treasurer of the
Company, succeeding Jeannie M. Runnalls in those positions. Ms. Runnalls is
continuing to serve as a Director of the Company."
Not much new other than that from the last filings. For the 9 months ended sept 30, 2000, the company has no revenue, a net income (loss) of ($476,880) and EPS basic and diluted of ($0.04) loss.
Review of news releases in part III |
