Typical caveat: Please do your own investigation of Bioponic before you buy or sell. Do not buy or sell based on what I say. The following information may not be correct. I have not been compensated by anyone for writing the following. I'm not related to Meyers group, Bioponic, or any other I/R firm. I've attempted to verify all company claims through independent sources (metal brokers), etc.
I've been following this company for the past 6 months. It appears they're near a break-through in their development, so it seems to be the right time to fill in the details.
Background: Bioponics was a closely held private company, that went public via a 15c2-11 in 1998. They started trading at $8, fell to $.75 on no volume, and have been there ever since. They have a unique metal reclamation process that I will get into later. They have been in R&D mode for the past 2 years, and now have an operational plant. I was intrigued that 90% of BPON was insider held, and that Bioponic felt that they were worth $8/share when they first started trading. Those 2 factors started this DD into BPON.
Company Details:
· Name: Bioponic International
· Address: 767 Lincoln Ave., Suite 3, San Rafael, CA 94901 USA.
· Phone: 415-460-1994
· FAX: 415-460-1996
· E-Mail: info@bioponic.com
· Web Site: bioponic.com
· Description: R&D company, moving towards production of various products.
Officers:
· Randall S. Reis, Chairman and Co-CEO
· Steven M. Schorr, President and Co-CEO
· Irving W. DeVoe, Ph.D., Vice-Chairman and Chief Science Officer
· Felecia Vernon-Chancey, C.P.A., Chief Financial Officer
· David B. Blythe, Vice President, Engineering and Manufacturing
Stock:
· Symbol: BPON, OTCBB
· Shares Outstanding: 18.3 M
· Insider Shares 12 M (Reis, Schorr, DeVoe)
· Float: Approx 6.3 M
· 144's: Andrew Joel filed a 144 to sell 180,000 shares. Should be through shortly
· Transfer Agent: American Securities 303-962-4284
· In process of producing audited financials to become fully reporting
· Any funding will be non-dilutive
MR3 Product Details:
· Description: Because of its unique ability to separate metals from alloys, Bioponic International's MR3 TECHNOLOGY allows greater recovery of payable Metals including: gold, silver, platinum, copper, tin, lead, zinc, nickel, Aluminum and iron. The proprietary process makes it possible to recover Literally all of the available metal present in any metal-laden feedstock, Selecting for up to five different metal types in one automated pass through the system. Full production has successfully demonstrated that the final product in sulfate of chloride form is "ultra pure" with among the lowest Residuals in the industry.
· On October 21, 1998, Bioponic International opened its first MR3 Metals Reclamation Plant in Butte, Montana, processing Zinc Sulfate Monohydrate as its first product (widely used as a micro-nutrient in the agricultural and animal feed markets).
· The Company is actively seeking to recover valuable metals from metal-laden feedstocks and other sources such as mining tailings and mineral reserves. As such, the primary products of the MR3 Process consist of the valuable metals which are selectively recovered and returned to pure forms for resale as commodities. Or, these metals can be used again (recycled) in the same industrial process from which they were extracted as manufacturing effluent, i.e.: Aluminum bronze grindings, ball mill dust, brass mill dross, brass shells, circuit board trim w/Pb, cupro-nickel turnings, contaminated nickel silver, contaminated monel chips, copper ash, copper muds and slimes, diecast tng, EDM, floor sweeps, flue dust, gold finger, manganese bronze chips, mixed brass turnings, mixed metal skimmings, plated brass clips, plating solutions, plating wastes, red brass grindings, tin-plated chops, tin sludges, zinc dross, zinc diecast, zinc dust... and other manufacturing metal by-products.
· The MR3 System generates little or no waste of its own, and so it is as environmentally beneficial as it is economically sound. It is essential to note that the low capital, operational, and maintenance costs, in conjunction with innovative state-of-the-art engineering, can mean significant profits from applications previously considered cost-prohibitive. In this way the MR3 System can help transform hazardous environmental liabilities into profit centers virtually overnight.
· Strategic Advantage: "MR3 is the only known process to recycle metals from mixed metal waste streams producing pure streams of individual metals."
· Metals can be contaminated with water or oil.
· Resulting product has extremely low residuals.
· A number of different metals can be captured in a single pass.
· MR3 is a closed-loop system.
· MR3 process uses acid which is completely consumed in the ZSM production process.
· Bioponic has focused on Zinc first, in the form of Zinc Sulfate Monohydrate (ZSM)
· Other metals to follow are Copper, Nickel, etc.
· Competition: Competitors are typically producing one type of metal stream, at a much lower quality
· Can use ZSM as a micro-nutrient or reduce down into base Zinc metal
· Can use a dryer to remove water from ZSM product. Buyers interested in both wet- and dry-ZSM products. Wet product is cheaper, easier to make (no drying process).
· Quote: Customer called Bioponics ZSM sample a "Hollywood Sample". In other words, customer thought Bioponic passed them an ultra-pure, non-representative sample.
· Bioponics' ZSM contains no calcium, and can be used for water treatment purposes
· MR3 can use scrap metal, high grade ore, anything that contains a metal stock.
Pricing Structure:
· Company can make money on commodity pricing
· Company should be able to ask for premium ZSM prices, based on ultra pure product
· ZSM is currently in semi-tight supply
· $.25-.35/lb for Zinc Scrap
· $.20-.30/lb for ZSM ($600/ton for ZSM)
· Each pound of Zinc scrap produces 2.5 pounds of ZSM.
· $.25 in produces $.50 out, less operating expenses
· ??? Unsure if they're going to try to find business partners to fund additional MR3 plants, or use their own revenue streams and fund themselves.
Various unsubstantiated rumors:
· May be hiring a new COO or CEO. Someone to "Grow the company from a $1 Million to a $1 Billion company".
· Seemed to have some type of non-dilutive financing, for the Butte plant, perhaps $4M loan.
· May have a company interested in bulk purchases of their ZSM product, perhaps anywhere from 10K to 30K tons/year (1K ton = $600K revenues).
· Large Zinc manufacturer called to investigate their ZSM product
· Continuing to negotiate with several countries that have industrial waste problems (Taiwan, India?) to use MR3 to remove hard core industrial waste.
· Negotiating to lease another site in Montana, with large supply of Zinc ore nearby. Hard to tell what this would be worth, perhaps $50M/year or more.
Other correspondence with Bioponic follows:
· Comment: While the MR3 technology can easily handle the glamour metals, we've actually hit "pay dirt" by focusing on a relatively non-glamourous micronutrient to start with -- for the plant and animal feed industries: zinc sulfate monohydrate. It's the same stuff you take as a mineral supplement...at the highest purity known.
· Comment: Couple that news with the fact that we have an initial buyer (other buyers are being courted for the 120 metric ton/year market in the U.S.) who says he will "buy all we can ship". From processing brass waste we will also eventually be producing copper sulfate and tin oxide, other easily sellable commodities. There are competitors, but no one produces higher purity products thus far. Anyone can easily do a search on the net to find out who sells chemical products. We welcome any "competition" since our products are of such high purity and our pricing structure is basically the same as lower grades.
· QUESTION: Why such a lack of information on the company, to date? We believe there's been sufficient and complete information available on our website as well as through PR Newswire, and we are accustomed to sending out complete info packages to anyone who asks (such as your initial request!). Additionally, we have also found that promotional companies have proven themselves to be relatively ineffective (if not downright unethical).
· QUESTION: When you say insiders recouping their investments, was there upfront monies put up to join in with BPON, or are you referring to MR3 inventors and other getting reimbursed in BPON shares? Our early investors ('91-'96) had invested hard cash and were interested in recouping it.
· QUESTION: I presume that you, the CEO, and others feel confident of meeting revenue goals? Of course.
· QUESTION: Won't someone loan you the funds based on a customer's order to "buy all that you can produce"? It would seem logical. We're working on it!
· QUESTION: Is the material referred to in the "buy all that you can produce" produced in a cost effective manner? In other words, not the "We lose money on every ton, but we make it up in volume" approach. Based upon lengthy analyses and the fact that for every ton of zinc scrap put into the MR3 System, we realize 2.5 tons of zinc sulfate monohydrate...notwithstanding overhead and admin costs, our production is extremely cost-effective. We make money on every ton regardless.
· QUESTION: How will you ensure that JV partners do not steal your technology? Our strategy is to be the ONLY operators of our technology irrespective of the JV partners who will be limited in access to our technology and the proprietary inner workings.
· QUESTION: Does anyone within Management have any problems with lawsuits, SEC injunctions, etc? In other words, past history? No.
· QUESTION: I presume that all attempts will be made to secure financing that is NON dilutive to the stock? Yes. In fact, based upon the current price of shares, equity financing is really not an option at this time, and we are completely committed to debt- and/or JV-financing arrangements.
· QUESTION: There's a lot of interest in Tungsten recently -- lots of the old Chinese mines are being retired, and new mines are not coming on rapidly enough. I presume that the process is metal independent? While we currently do not have a tungsten reclamation model amongst the 35 metals we do have reclamation methodologies for, if a significant opportunity should come before us we would look at developing applications for it.
· QUESTION: Why did you go public through a Market Maker, instead of an IPO? We were unable to attract an underwriter because our revenue track record was not in place. Desiring to become a public company at the earliest opportunity, to attract additional financing, and in order to honor our commitment to our shareholders as promised, we chose to file a 15(c)2-11 document with the NASD under the sponsorship of an NASD member-broker (EquiTrade Securities, Inc.) in order to begin trading.
· QUESTION: How do you plan to manage the revenue growth from $146,000/1998 to $24,400,000/1999? Is this type of revenue growth too optimistic? It is our intention to manage our growth by focusing on our ability to expand our MR3 and AGS production capabilities. Through rigorous budgetary planning, managed by our CFO, we intend to limit unnecessary overhead and focus on our core business enterprises. Also, we do not believe, based upon our current analysis, that our revenue growth is optimistic. The revenue projections were determined by conservative research, taking into consideration our ability to manufacture, install and ramp-up production for anticipated, relatively unlimited sources of feed-stock, measured against a commodity-based market ready to purchase all that we can produce.
· QUESTION: ARE THERE ANY ORDER FOR PLANTS, NEGOTATIONS UNDER WAY, ETC? IN OTHER WORDS, CAN THE COMPANY MEET THE EPS ESTIMATED FOR 1998/9? DW: We have every reason to believe we can meet the figures you mention in the time period stated.
· QUESTION: WILL THE PLANTS CAUSE A DILUTION IN SHARE VALUE? DW: Not really, because we are positioning our business relationships in such a way as to have our JV partnership fund the capitalization of any new plants to be built."
· QUESTION: CURIOUSITY: THE STOCK OPENED AT $7, AND THEN HAS FALLEN TO $.75 LATELY. IS THIS DUE TO INSIDERS SELLING (UN)RESTRICTED SHARES? I NOTICED THE FLOAT INCREASING FROM >500K TO 1M IN 1999. ANY COMMENTS ON THE DIRECTION OF THE STOCK? DW: We actually opened at $8. Naturally there were some early stockholders anxious to recoup their investment, but the main problem occurred with what we view as "unscrupulous" short-sellers who have made their transactions completely "under the radar." This problem is being rectified as quickly as possible. Keep watching the ticker. The float increase is due to our successfully locking up the grand majority of shareholders, allowing only 10% of total holdings to be sold in the first 90 days of trading, and another 10% in the subsequent 90 days, after which all holdings are freely tradeable. The float numbers increase as "eligible" shareholders' eligibility dates come up, thus freeing their shares for trading.
· QUESTION: WHY DID YOU GO PUBLIC THROUGH A MARKETMAKER, INSTEAD OF AN IPO? DW: Apparently to save a dime. Not my bailiwick. SS: We were unable to attract an underwriter because our revenue track record was not in place. Desiring to become a public company at the earliest opportunity, to attract additional financing, and in order to honor our commitment to our shareholders as promised, we chose to file a 15(c)2-11 document with the NASD under the sponsorship of an NASD member-broker (EquiTrade Securities, Inc.) in order to begin trading." RR: If we had to do it all over again, we would have IPO'd.
· QUESTION: WHEN YOU SAY INSIDERS RECOUPING THEIR INVESTMENTS, WAS THERE UPFRONT MONIES PUT UP TO JOIN IN WITH BPON, OR ARE YOU REFERRING TO MR3 INVENTORS AND OTHER GETTING REIMBURSED IN BPON SHARES? SS: Our early investors ('91-'96) had invested hard cash and were interested in recouping it."
· QUESTION: DO YOU NEED FUNDING TO BUILD/TEST THE MR3 FACILITIES? SS: No, see above.
· QUESTION: IS THERE ANYONE COMMITTING TO THE MR3 PRODUCT? IS THERE A PILOT ANYWHERE? DW: While our first MR3 plant is actually up and running (press release on website), we are seeking funding for expanding operations of that plant, even as product is "moving through the tube" being readied for delivery to our first customer."
· QUESTION: ARE YOU A REPORTING COMPANY? IF NOT, WILL YOU BECOME ONE? WHEN? DW: We are not yet a Reporting Company, but expect to be in early 1999. SS: by 2Q99"
· QUESTION: DO INSIDERS HOLD THE PREFERRED SHARES? DW: No "insiders" hold our Series A Convertible Preferred Shares.
· QUESTION: HOW DO YOU SEE BPON TURNING THE CORNER IN REVENUE-VS-EXPENSE? DW: The "corner" must be viewed as that point in time when we receive payment from our first customer for the first product delivered. The fact that we have "unlimited source material" going to a customer who has declared they will buy all we can produce, this is a good thing as far as I can see. And that's just ONE metal product for ONE customer...
· Question: WILL YOU RUN THE MR3 UNIT YOURSELF ON SOMEONE ELSE'S PROPERTY TO RECLAIM METALS, OR WILL YOU SELL THE MACHINES OUTRIGHT? DW: Yeah, we're quite jealous of our technology, so we're setting up any new JV partnerships in a way that allows us complete autonomy in that regard. Otherwise, it's generally a 50-50 on profit-sharing deal from there.
· Question: WHAT IS THE MARKETING PLAN FOR MR3? WHAT IS THE FEEDBACK FROM POTENTIAL CUSTOMERS? DW: The MR3 "marketing plan" is fairly wide-ranging from this office, while also being handled by one of the Company Directors personally (negotiations currently in final phases with Taiwanese firms seeking MR3 partnerships).
· Question: WILL THE MR3 UNIT WORK WITH TUNGSTEN? DW: While we aren't currently set up for tungsten (lots of others currently have tested out and are ready for extraction), should a market present itself such that it would become financially attractive to pursue it, of course we would consider it."
· Question: WHY SUCH A LACK OF INFORMATION ON THE COMPANY, TO DATE? SS: We believe there's been sufficient and complete information available on our website as well as through PRNewswire, and we are accustomed to sending out complete info packages to anyone who asks (such as your initial request!). Additionally, we have also found that promotional companies have proven themselves to be relatively uneffective (if not downright unethical).
· Question: HOW WILL YOU ENSURE THAT JV PARTNERS DO NOT STEAL YOUR TECHNOLOGY? SS: Our strategy is to be the ONLY operators of our technology irrespective of the JV partners who will be limited in access to our technology and the proprietary inner workings.
· Question: WHO WILL PROVIDE THE FUNDING FOR THE [BUTTE'S] PLANT'S EXPANSION? SS: Funding is being sought even as I speak.
· Question: IS THIS FUNDING ALREADY IN HAND? SS: Not yet, but close. We're working hard on it.
· Question: HOW WILL THE MATERIALS BE TRANSPORTED TO MARKET? SS: Primarily via contract trucking; rail when appropriate (we have a rail siding).
· Question: WHEN WILL THE BUTTE PLANT BE ON-LINE? DW: The plant is probably a little off-schedule due to the way that nothing ever happens as fast as you want it to happen...leasing, equipment suppliers, insurance...it's a regular 3-ring circus on the administrative end, while at the same time Butte is in the grip of an early winter with a recent record snowfall...pipes freezing...etc, etc. BUT... persistence is perhaps the most telling variable in all of this, and we know that "Rome wasn't built in a day." SS: Financing is being sought for expanding the current operation. The plant is currently producing ZSM and expect to ship the first product shortly.
· Question: DO YOU DO ANY PRIVATE PLACEMENTS? SS: Our last PP brought in about 1.5 mil, and I don't really know whether the BoD would consider another in light of the fact that we're now trading.
· Question: HAS ZINC SULFATE MONOHYDRATE BEEN PRODUCED BY MR3 BEEN SHIPPED TO ANY CUSTOMERS YET? SS: First shipment expected shortly.
· Question: WHO'S PROVIDING THE "INDUSTRIAL PROCESS STREAM" THAT FEEDS MR3? HOW ARE THEY PAYED? OR IS THIS BASICALLY FREE SCRAP MINING MATERIALS? SS: We have a relatively "unlimited" supply of zinc waste from one source, and naturally I'm not at liberty to divulge what amounts to "confidential information." Suppliers, however, are paid through a negotiated contract. We expect some raw material may be virtually free for the taking, but "free" always come with a price... and free materials would most likely be less valuable than higher concentrate of valuable metals...SO...we're interested in developing joint venture business relationships with partners who have materials sufficiently valuable enough to process and share in the profits, rather than spin our wheels with less-concentrated "free" waste
· Question: ARE ALL SHARES FREE TRADING ON 3/1? SS: Essentially yes; there will be a few thousand more coming available through June 99.
· Question: HOW CAN YOU PREDICT THAT FLOAT WILL INCREASE FROM 500K TO 1M SHARES BY 3/1/99? DW: I can predict because I have a spreadsheet detailing when every shareholder's UNRESTRICTED shares become ELIGIBLE for trading... with a running total on each shareholder's eligibility date and stock availability by date.
· Question: WON'T THE ADDITION OF 500K SHARES TO THE FLOAT HURT THE STOCK'S PRICE? SS: Nope. The dilution is already set, and we don't expect further sales for quite some time...at least until the stock makes a rally with subsequent production and sales reports on MR3.
· Question: DO YOU ANTICIPATE HAVE A RUNNING PLANT BY THEN, SO THAT THE ADDITIONAL FLOAT DOESN'T DROP YOU STOCK PRICE? SS: Ipso facto.
· Question: CAN I GET COPIES OF ANOUNCEMENTS PRIOR TO GOING PUBLIC, BEYOND WHAT'S ON YOUR WEB SITE? PAST HISTORY WOULD BE VERY HELPFUL IN TERMS OF UNDERSTANDING BIOPONIC. ESPECIALLY MR3. DW: I am attaching a Word document that should help. Let me know if you can't convert it and I'll just paste it into an email message. We didn't have a lot of PR happening during the MR3 development process due to the fact that we were focused on getting the puppy trained before taking him to the Big Show... and then the process of going public tied our hands due to the SEC regulated "quiet period".
· Question: "BASED UPON LENGTHY ANALYSES AND THE FACT THAT FOR EVERY TON OF ZINC SCRAP PUT INTO THE MR3 SYSTEM, WE REALIZE 2.5 TONS OF ZINC SULFATE MONOHYDRATE". THIS STILL DOESN'T TELL ME EVERYTHING I NEED TO KNOW. WHAT IS THE PURCHASE PRICE OF ZINC SCRAP, WHAT IS THE SELLING PRICE OF ZINC SULFATE MONOHYDRATE, AND WHAT IS THE PROCESSING COST TO PROCESS THE MATERIAL -- E.G., BUY FOR $1, SELL FOR $2, PROCESS $.25, PROFIT=$.75. WHAT PROFIT % DO OTHER PEOPLE IN THE INDUSTRY HAVE? WHAT IS YOUR PROFIT % AS COMPARED TO THEIRS? DO YOU HAVE THIS TYPE OF BREAK-OUT FOR EACH MATERIAL YOU PLAN TO PRODUCE? 400 TONS OF ZINC PRODUCTS PER MONTH = $NET/MONTH? DW: I see your point, but it's a question that borders on "confidentiality", so I'll have to refer you to Steve on that one. He's somewhat skeptical over a person's need-to-know weighed against "what am I going to get out of it?" way of thinking, so perhaps when you two finally speak maybe your answer regarding the "prom" will stimulate more openness on his part.
· Question: HOW MUCH MATERIAL CAN A MR3 PRODUCE? OR FROM #3 ABOVE, HOW MUCH PROFIT WILL EACH MR3 GENERATE? DW: We have projections based on a "typical" 140,000 square-foot plant costing $25 MM: Project Description -- The manufacture, installation and operation of an MR3 metals extractions plant designed to extract Tin, Copper, Zinc and Lead by processing the sludge effluent waste from computer circuit board manufacturing activities (utilizing six MR3 modules: Two 4M5000 and four 4M6000) Calls for the refining of these metals into specialty chemical products and their sale as Zinc Oxide, Copper Sulfate Pentahydrate, Zinc Sulfate Monohydrate, and Lead Oxide.
· Annual Pro Forma Project P&L
· Gross revenue: $ 849,641,896
· Costs: (231,745,536)
· Net Pre-Tax Profit: $ 617,896,360
· Plant Description
· Plant Size: 140,000 sq. ft.
· Processing Capacity: 886 Tonnes per day
· Metals Processed: 4
· Water Consumption (est.): 500,000 Liters per day
· Question: I PRESUME THAT THE MR3 PATENT NUMBERS ARE 4626416, 4585559, 4530963? ANY OTHERS? DW: USA 5,066,371 November 19, 1991; USA 5,089,123 February 18, 1992; There are 17 other international patents issued to Dr. Irving W. DeVoe on this developing process.
· Question: WHAT HAPPENED TO YOUR RELATIONSHIP WITH STOCKSTOWATCH? I NOTICED >YOU'RE NO LONGER LISTED THERE. I PRESUME THAT THE DISSOLUTION OF THIS RELATIONSHIP WAS PROBABLY THEM SELLING THEIR SHARES, DROPPING THE STOCK PRICE? DW: I can't say for sure, but perhaps Steve can enlighten you if you're still interested when he gets back.
· Question: DO YOU MIND IF I TALK TO THE MR3 INVENTOR HIMSELF? DW: I am certain Steve wants to continue providing Dr. DeVoe with a "buffer" (at Dr. DeVoe's request) from the curious outside world. He loves to talk, but he also complains bitterly because he has so little time to do the things he desperately needs to do... so we're understandably guarding his flanks from interviewers of all sorts
· Question: HOW MUCH MONEY DO THE INITIAL INVESTORS HAVE INVESTED IN BIOPONICS? HOW MUCH FOR MR3? DW: I think the initial amount approaches $3 million or so.
· Question: WHY DID YOU PICK BUTTE, MONTANA FOR THE MR3 PLANT? IS THIS WHERE THE MR3 INVENTOR LIVES? DW: No... our VP Engineering, David Blythe (and Dr. DeVoe's son-in-law), lives there.
· Question: BEFORE MR3 CAME ON BOARD, WHAT WAS YOUR FOCUS, REVENUES, ETC? OR IS THAT PARTICULARY RELEVANT? DW: The focus had been on developing two aspects of the Airponic technology: (1) The sale of commercial-scale systems to potential clients, and (2) The development and scale-up of three consumer products: (a) the Bioponic Home Grower, (b) the Bioponic Wheatgrass Grower, and (c) the Bioponic XR-1 Research Grower. We sold a System-2 to a commerical grower in the Philippines back in '95 (approx. USD$105,000), and also intalled a System-2 on the Big Island of Hawaii in '96, now used as a production and demo lab facility.
· Question: HAS THE MR3 RECEIVED ANY NECESSARY EPA AND OSHA APROVALS? ESPECIALLY EPA WITH ANY WATER DISCHARGE? DW: Since the MR3 Process is also being marketed as an ideal method for WATER PURIFICATION and DECONTAMINATION, we'd have absolutely no problem working with a client or JV partner whose particular situation would require EPA or OSHA approval. BUT... even though the System has proven itself in the lab for the processing of hazardous materials, why deal with the EPA's red tape circus if you can avoid it by focusing on high-quality, non-hazardous source materials instead? At least until we get our bank account beefed up some, we probably will continue to steer towards non-hazardous profitable activities. Sooner or later we're bound to be noticed by people whose jobs involve decontaminating the nastiest of the nasty stuff, and when that happens we want to be able to respond like a BECHTEL rather than a "Mom & Pop's Sewer Service" if you get my meaning.
· Question: WHY BUILD A $231M PLANT FIRST? WHY NOT BUILD SMALLER PLANTS, WITH SMALLER >UP-FRONT COSTS TO GENERATE CASH FLOW? DW: There's probably an easy answer to this, but I don't have it. I do know there has been a good deal of number-crunching going on in recent months, and the resultant preferred start-up figures didn't come haphazardly.
· Question: DO YOU HAVE INSURANCE ON THE INVENTOR IF SOMETHING HAPPENS TO HIM BEFORE THE MR3 IS COMPLETED? DW: You better believe it! In fact, we could not have gotten this far in going public unless those kinds of details had been handled with a fine-toothed comb.
· QUESTION: When will they be reporting? 2Q99. Auditors start January 1999.
· QUESTION: Will you make your revenue estimate? Perhaps a little later than forecasted, unless individual deal comes through $200M, or larger. All contracts are front-end loaded, so revenues can be booked up-front.
· QUESTION: How will you get $200M financing for first plant? Will start with smaller plants, funded up-front by corporations, and work their way upward.
David Webb (DW), Stephen Schorr (SS), Randy Reis (RR)
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