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An Asset Class for Safe Investment

Apr 29, 2022 3:09:12 PM

We met Mr. Spinoff, our very own Andrea d'Agostini!  And learned how he will accelerate Water on Demand's blastoff. Current events have made that target become totally vital…
With analysts proclaiming that commodities are the new currency, does WOD's fintech have the potential to become the "Alt Bank for Water"? Find out here in the replay!


Transcript from recording


News Show Host: OriginClear is a company that focuses on wastewater treatment.

CEO OriginClear — Riggs:  And hello everyone. Welcome to the Water is the New Gold CEO briefing.

Riggs: Our mission is to transform the water industry.

OriginClear Chief Engineer: Decentralization offers us this opportunity.

CEO Manhattan Street Capital: The plan that you've built here is super impressive.

Investor: The world is experiencing a crisis in regards to water. It's a great opportunity that you're giving us investors.

Riggs: Decentralization of water treatment means that we no longer need to establish giant water treatment plants.

OriginClear VP Development: Let them fight over the 20%. Let's work with the 80% that's untreated.

Investment Advisor: Over 21 thousand unique alternative investments.

Riggs: Three million jobs in the US alone.

Investor: Making it easy for the regular investor.

Riggs: All the old trends just accelerated.

Investor: It's lucrative and fulfilling.

OriginClear Chief Engineer: The vision I've got is to standardize these products. Design, Build, Own and Operate.

Riggs: We have 65 people in the room.

CEO AGM Agency: We've got an important message to give to the world.

CEO PhilanthroInvestors: We can put a guy on the moon but our water is horrible.

Pool Cleaning Technician: Recycling all that water, it's a huge impact for the environment.

COO OriginClear: Bringing new infrastructure in drives the growth in America.

Riggs: That's a critical part of the picture.

Progressive Water Engineer: It's a twin 125 gallon per minute RO (reverse osmosis) system.

Riggs: I don't think we're talking about a 10 Million dollar fund, we're talking about a series of 10 million dollar funds.

Overseas Partner: The opportunity itself is very big.

International Investor: You want to live? Take care of the water.

Investor: Not too many CEOs do a weekly briefing and are willing to talk to individual investors.


Riggs Eckelberry:

Good evening, everyone. Welcome to the CEO briefing of the 28th of April. And I just want to let you know that there will be a survey at the end. You get it by clicking on the link in the Zoom browser that opens when you join. So there's a browser page that's the launch meeting page, and you click on that link in the Zoom browser. And it's an important survey. We want to find out if you want this briefing to be one hour earlier, i.e. 4 p.m. Pacific, 7:00 pm Eastern. All right. So please try to fill out that survey which you get by clicking on the link in the Zoom browser that opened when you joined the meeting.


220428 CEO Title

Well, Water on Demand is the innovator in the emerging private water utility sector, so private water utilities is a concept we're working on where, yes, there's central water utilities. And it's true that there are private companies that help the cities run them, but those are centralized. We're talking about what some people call the micro utilities, the utilities that deliver water on the meter to users, business users, industrial, agricultural, commercial, etc..

So that's where we're innovating. And we have an amazing, amazing institutional presentation, which I will not show you today. It's not complete, but I will definitely show it to you next week. And our amazing analyst Dustin Muscato, has built just a fabulous deck.

I could not have done better. You know, that's the saying. You know, I always hire people who are smarter than you. And I think we've done that in this case, that's for sure. Actually, in every single case, everybody everybody who works for me is smarter than me, what they do.


Safe Harbor

All right. With that, obviously, we are always trying to get it right, but it is not guaranteed and there are risk factors. But we always work to get it right as fast as we can.


Meet Mr. Spinoff

So as I advertised in our CEO update yesterday, we have Andrea d'Agostini, who is our President and Chief Strategic Officer. I've asked him to join us as the Chief spin off officer or Mr. Spinoff, as I like to call him. And the reason is this we have a whole lot of people working to create Water on Demand vertically, but there's always a danger of silos. And somebody needs to operate horizontally across all departments to make sure that the spin off goes okay.

And we've now built one of those cool Gantt charts with the like little squiggly lines and so forth, and he owns that. I'm going to go ahead and play an interview that was done of Andrea when we convened that summit of about a month ago. So let's do that quickly and then we'll have the man himself. Here we go.


Start of video presentation

Andrea Summit thumb

Andrea: If you look at the market right now, you have real estate, you have the stock market, you have crypto. You can invest in many places. But if you look at where I'm going to get the best return on my money and what is the risk that I am running? Well, you know, what's happening in the stock market, if you pay attention, you know that real estate to multifamily and so on an all time high, you know what's happening with the cost of money. So what are the interest rates and so on? And you can easily determine that real opportunities are not yet available on the market and who knows when they will be again. But water right now is something that has not been yet occupied by the big money.


Decaying infrastructure

It's actually an infrastructure. There is decaying with a rise in demand for solutions. It's the perfect storm and we are a bit ahead of the curve. There are places, in Compton and in other locations where you open the faucet of the water and the water comes brown. You already know that you don't drink tap water. Why? Because it's not good. Well, you know, it's an accepted truth, but it shouldn't be. The businesses have sometimes difficulties interacting with the various utilities to clean their water, and that's because the capacity cannot sustain the demand. Our approach in Water on Demand is to come in, deploy investors money, providing infrastructure, and create sort of a distributed utility that earns by the gallons. Pay by the gallon.


Delegate manufacturing

We do the investment the client pays by the gallon. We own the asset, we own the contract, and we delegate the construction, the maintenance and the design of those technologies using our own systems. What are we doing with Water and Demand is truly addressing a market need. A society necessity that is perceived, is known, is measurable, is there. And we found a way to make it extremely profitable for our investors and extremely advantageous for our clients whilst providing a true service to society. And if at all these resonates with you is because your person wants to deploy money creating a positive effect, not just making ungodly returns. But also creating a positive effect. And that's that's what we are here for.


OriginClear team

We have assembled an incredible team. I have personally supervised the addition of a few key members and a restructuring of how the team is working. We are experiencing an evolution in OriginClear is really is really a quantum leap in OriginClear's approach. We needed to be in the same room together for hours, all the execs, all the top execs to really strategize and really create harmony and together we can make it happen. This is a purpose driven company. There is a mission and the mission involves you. It's not just us working on our own. It. It really is with you.

End of presentation


Andrea & Riggs

Riggs: Well, that's a beautiful thing. And with that, I want to invite Mr. Andrea d'Agostini on stage to say hi to us all.

Andrea: One. Hi. It's a pleasure to be connected with. Thank you for inviting me. Thank you, Ken. Thank you, Riggs. It's a pleasure to be with you guys.

Riggs: We were doing background commentary on on Andrea's eighties, eighties hair.


Becoming a Fintech

Andrea: Yeah, we were laughing about it. But jokes aside, I think it says a lot, the fact that the company decided actually, Riggs decided, the CEO decided to post someone to make sure that the execution takes place. In terms of the spinoff that we're talking about, it's quite something. And I really think that it's a beautiful, pure play.

And also, I think it's important that people know that. I mean, we have a lot of experience in water, in deploying systems. Like I don't remember the latest figure, but correct me if I'm wrong, please. Riggs We have about $12 million production already in place that is happening and grew three times like three X. So we are just basically putting the turbo on a technology that we deeply understand. You're putting, we're becoming a fintech on a technology that we really understand. So my job will be to basically deploy all these knowledge with the new model, which is incredibly advantageous, obviously.

Riggs: Yes. And so you're working on the critical issues. For example, I have a note from Mary Cain. Mary Cain-Murphy here, who a long time investor, "Please give us an update on Water on Demand. Is WOD close to having its first customer order?" So I think you're working very closely with Manuel on that, right?

Andrea: That is correct. As a matter of fact, I had my first meeting today. I am collecting the data and making sure that this happens. And, you know, it's. It's a very, very interesting evolution in the market that we can do for big size, obviously, but also medium size businesses and projects. So and it's a growing market like crazy. So I'll definitely have updates and I'm going to try to send out updates frequently through our CEO communication lines so that people know what's happening.


Weekly Update

Riggs: Right? So Andrea is going to own the sort of the Water on Demand update each week where we go into here's the the rollout of how much capital, did we get some institutional funding? Did we, and you know, I am being pushed hard to get institutional funding for us because it's considered so much cheaper, which is true. But we love our, the people we came to the dance with, and we want to give you guys, you accredited investors first shot, so there'll be that.


Launching a Reg A

Also we are launching that Regulation A offering and week to week Andrea will update us on that. I've, I went ahead and paid the retainer to the attorney to get that started. And it's going to be relatively easy because it's based on the annual report that we, that we put out already. So it's not very old. There's that.



And then there's, of course, the production and there's really two varieties of production that we're looking at right now. One is the pure pay per gallon model, and you'll be able to update further on what we're doing with Enviriogen®. They're helping us with the fee, the fee structures, with the agreements to make sure that everybody is protected, especially investors, all these things. And so it's going to be a lot more updates about that.

And then finally, there's the impure version, shall we say. We have somebody who wants a fully managed system, but they happen to have capital. And that is very often the cities, the cities are not going to want pay per gallon. Why? Because they have budget, but the budget takes forever.



So it's sort of a hybrid. In other words, okay, we'll give you a managed system. And we're going to go ahead and launch it now. And but you're going to and you'll pay a monthly fee until you actually pay the capital, which will be six, eight months, 12 months out. That's a hybrid, which is also going to be very, very popular, because a lot of cities really need to solve a problem. But they've got a budgetary, they've got to wait until 2023 or whatever. And they can guarantee this business. I mean, they have the ability to do that. So this is an interesting hybrid which will allow us to do the design and build pure thing without the pay per gallon.

Andrea is very correct. We already are very good at decentralized, privatized water treatment and we our sales, our booked orders tripled last year to 12 million. We're now absorbing that. We've got, we got the president of sales of Progressive Water working weekends on the floor to deliver this stuff. It's amazing what's going on in McKinney, Texas. We're going to get some video on that and because the whole team is going to meet there shortly. So all of this is going to be pulled together into a quick and brief capsule that Andrea will give us. But the good news, Mary, is that we are in actual negotiations for one or more of these pure pay per gallon water treatment systems. And we will get it done soon. And I think we may also get one of the acceleration deals done soon. So that's where that stands. And I know everybody is very excited to do that.


WOD and Offering

So the other things that Andrea will be will be reporting on will be the new website, the creation of of the spinoff company, the new series A in the spinoff company, which gives every single investor in series Y... Well, basically, here's the idea, up to now, we're saying, "Well, you're investing in OriginClear, which gives you a piece of the Water on Demand." We're flipping that around. We're saying, "You're investing in Water on Demand. You're getting a 25% net profit. You're getting automatically a grant of stock which will add up to 10% non-dilutive in the company, $20 million worth of investment, 10% of the company locked, not dilutable. Right? And as a bonus, you get 150% of your investment in OriginClear stock and 200% warrants coverage." So that you get a publicly tradable stock.

Now Water on Demand will eventually, we believe, become a public company. But it could take a while, which is fine because you'll have a bunch of OriginClear stock as well. So it's the best of both worlds and we're kind of turning that around. And literally right now the corporate development team is getting Water on Demand.net email addresses, we'll start playing the part. So it's my pleasure, Mary. Thank you. We love our loyalists. So with that, I'm going to actually, I'm going to invite Ken to come on board because we're going to jump into the free wheeling discussion. But I have a bunch of slides to go over and a video, but I wanted.


The Terrible Trio


Ken like Casper

Ken: Okay, so weird when I do that, right?

Riggs: It's like Casper the Friendly Ghost.

Ken: It's just glasses. It's just.

Riggs: Oh, Andrea, you got to stay. This is the, the terrible trio. You know what I'm saying.

Ken: Can we just say terrific trio? Is that so bad? Terrible trio. Okay. All right. It's kind of like the Beatles, man. I don't know without Ringo, because who the heck is Ringo?

Riggs: Well, wait a minute. Ringo is pretty cool.

Ken: No, I know.

Riggs: But mysteriously, Andrea has disappeared. But what I'm going to do right now, it doesn't require you guys immediately, because I'm going to show you some of the things that we are going to be talking about, which are more in the free wheeling zone. Let me tell you what I mean.


Where do we Find Value?

First thing is, there's an asset bubble and we want to know where do we find value, huh? Well, let me tell you something. That's a really good question. And I'm going to jump into a quick video grab that I did. And here is Steven Van Metre.


Start of video presentation

Steve Van Metre

Steve: Mortgage layoffs have started and it has dire consequences for the economy. I'm Steve Van Metre and thanks for joining me today. And I've been warning that this rapid rise in interest rates would lead to a collapse in lending demand and ultimately layoffs across the mortgage industry. And now we find out that Wells Fargo is laying off and that's just the beginning. Let's pick this story up where Wells Fargo starts layoffs in home-lending unit. Wells Fargo haS begun laying off an undisclosed number of its home lending employees. A little more than a week after reporting, mortgage origination volume has dropped 33% year over year that the bank confirmed on Friday.


Result of Cyclical Changes

The home lending displacements this week are a result of cyclical changes in the broader home lending environment and they are committed to retaining as many employees as possible and will do everything they can to help identify other opportunities within Wells Fargo. And on this post on the discussion board, the layoffs indicate job cuts hit at least five markets Phenix, San Antonio, Minneapolis, Charlotte, North Carolina and Des Moines, Iowa.

Processing, underwriting and credit administration teams were notified that their position would be eliminated because of the changing mortgage market. They were given a mere two week notice. And this is what's important to understand about the mortgage industry. It's boom or bust, and during boom time they are hiring like crazy, bringing people in and moving big volumes of loans. And when it's bust, they lay people off and they do it very, very quickly or else they go down with the ship and they don't want that.

And this was blamed as a decrease in refinance activity, along with higher interest rates for what the CEO called the steepest quarterly decline in the mortgage arena since 2003. The average interest rates accompanying 30 year fixed mortgages have risen above 5% in recent weeks, a figure not seen since 2010.


Mortgage refi index

And here you can see the mortgage refinance index is absolutely collapsing as we've been watching every week now. And as I pointed out, that this collapse in demand will ultimately lead to layoffs, which are seen now. And it is very rare.

There have been other times where they've seen steep drops, but this one may be for the record books. And we still expect to have decent volumes in the purchase market, but our gain on sale margins will definitely be impacted. Given that there's still a lot of excess capacity in the system, well, I'm not sure there is going to be a big demand in new, new mortgages, as they suggest. Let's take a look at the data and see what it says.


MBA purchase index

And here you can see the MBA purchase index also comes out every Wednesday along with the refinance index. And you can see that it has peaked back here 2021 and has been steadily heading lower.

End of presentation


The terrible trio


Alt Bank for Water

Riggs: I'm not going to belabor the the story. We were predicting this, Ken, about a month ago. We were saying, you know, which, with the Fed pushing interest rates up, which I believe ultimately they will actually back off from because to horrible, but nonetheless it's doing damage. Now, real estate is totally dependent on lending. And so here we have, you can't invest in real estate right now and you do need to diversify out of it. So that's the problem that I've been talking about. We've all been talking about, which is this story about trying to get assets at a decent price. Right. So that is the issue.

Ken: I had a thought, We're essentially becoming an Alt. Bank. Right. So we won't be, Water on Demand essentially becomes an alt bank, right, in other words,

Riggs: We are the water bank.

Ken: We are the water bank. Well, the investors are the the lenders really, is what they are. Investors become money lenders in a very well controlled environment. So this is really we won't be subject to the kind of the daily drama with international events and of course, interest rate changes, which I think just add that to the velocity of money that can be generated through fintech. As my friend Andrea said, it's a very exciting place to be right now.


Disasters Create Water Demand

Riggs: Hundred percent. Now, other factors involved in bullish situation for water is a video I grabbed off of Weather.com, which is interesting. It's kind of crude, but you'll see the point.


Start of video presentation



Commentator Ari: A UN report said that the world can expect disasters to increase in the coming years, mostly due to climate change. Now the UN's Office of Disaster Risk Reduction expects about 560 disasters per year by 2030. That's up from about 400 per year back in 2015. And climate change has a big impact. The report predicts about three times as many devastating heatwaves and 30% more droughts and impacts from climate change reaching places that aren't fully prepared as part of the problem.



For example, extremely strong tropical cyclones in northern Africa or an expanding wildfire season in the American West can compound with other factors like the COVID 19 pandemic and economic woes.



Now, in the past, disaster deaths were steadily decreasing because of better warning systems and prevention methods. But the report says over the last five years there have been more deaths due to disasters and the cost of disasters is climbing as well. An estimated $170 Billion goes toward disaster recovery each year. The report is seeking new approaches and budgeting for these events.


Disaster recovery

Currently, about 90% of the funds go toward recovery and only a small percentage to prevention, according to the UN. If governments focus more effort on prevention and smart reconstruction, a lot of disasters could be prevented.

End of presentation


Lew Rockwerll-1

The Commodity Currency Revolution

Riggs: The last thing I'm going to do and then we're going to get into our actual conversation about it is a piece that was published on Lew Rockwell, but it's actually by a gentleman named Alistair McLeod, who is a publication called Gold Money, and he writes has some very interesting points of view here. Let's take a look. Basically, he's saying that the world is moving from a currency based system to a commodity based system, as he says here at the bottom. Pure finance is being replaced with commodity finance.

Now, that's really interesting because it means that now you automatically think about gold, but you also have to think about all of lumber, wheat, various metals, lithium, etc.. And now that we've enabled it, water will enter the scene. But let's continue a little bit further. All right. And so those of you who don't know Bretton Woods was a conference that was in 1944 that created the postwar monetary system. President Nixon destroyed it in 1971, and basically he got rid of the gold standard. And from there, it was Bretton Woods II, until very recently. And now this writer, the analysts are Zoltan Poser at Credit Suisse, says that we're now entering Bretton Woods III.


Commoditizing Currency

Now, what this says is that Russia has effectively commoditized its currency, particularly for energy, gold and food and is following China down a similar path. So what these two players have done, but not just them, is they have... Look at the Mexican peso, Brazilian rial and the South African rand are strong against the dollar. Why? Because they have resources behind them. It's, this is wild. But these countries have commodity resources and therefore their currencies are more valuable than the dollar because of that.


SVM first graph

30% Lower than 1950

So the problem that America has, of course, is it's staying with the currency thing. But let's take a look. For example, if you had priced crude oil in gold, that's that red line at the bottom there it is actually. Crude oil today is 30% lower than where it was in 1950. Why? Because of better production. Right. So we're much more efficient with oil production. And so in real terms, in gold gram terms, as they call it, where actually oil is dropped. Whereas if we look at the British pound, the US dollar, we're looking at skyrocketing rates here. So that tells you everything you need to know. I would say the British pound is a really, really weird place right now.


SVM 2nd graph

Oil Could Double

Okay. So so we might expect these commodities to rise together. And it's a direction of travel shared by China. Also, oil in this chart could double to 200. Think about what consequences that would have for all kinds of monetary activities, economic activities.



ETF Triples

Look at this. Now, this is this is a commodity tracking trading fund ETF. And just two years ago, it was just above $10 and now it's almost hit 30. That's tripling. That's a major ETF tripling in two years. Yes, I think everybody should be in this. Of course, I'm in a similar one. But what I'm saying, you should want, you should try to catch the bottom, right. So try and catch a bottom here because it's going to be very hard. Look what's already happened in real estate where we've now hit a top. We want to go at the beginning of these commodity trends. And really what this means is oil is not doubling. It's actually just the dollar is being cut in half.


Without Gold Link

Now, while Russia has tied our currency to gold, China has done it, done it with commodities, but without the gold link. So but the universal factor here is commodities is the new currency. So Bretton Woods II is indeed over. That being the case, America will find it very impossible to retain capital flows. And here, unless the US government takes a very sharp knife to its spending at a time of stagnating or falling economic activity, the Fed will have to step up with enhanced quantitative easing. That is going to be interesting. I do believe that's going to happen. I believe that the federal government is going, Federal Reserve, is not, they're not going to have the support by the US government to truly cut expense.


Bound to Lose

And one of the things the US government does not do. We saw that in 2008, is they don't cut government spending. They don't. Not a single government employee lost a job in the 2008 recession. Why? It was considered to be productive activity, which it's not. It's parasitic activity. So you have a problem where the government is going to keep spending and it's going to go into a flat out spend its way out of this, which is going to do even more damage.

And we're going to be replaced with people who are smart, staying with assets. And China played along with the Keynesian game while it suited them. And whatever happens with Russia's military fate, we don't know. But the West seems bound to lose the financial war against those two countries and we are indeed transiting into Bretton Woods III. So that is really, really, really interesting. And of course, our thesis is we're building a brand new asset that is priced super low. Why? It's never had a price before. It's a first. Right.


Finding the Bottom

Ken: Right. So before anybody jumps out the window on these news. Right. Because this is this is tough stuff to watch. You showed the chart and you mentioned, you know, you really got to try to time the bottom. Then you become a prognosticator. So, you know, smarter men than you and I have failed at guessing, finding bottoms or guessing bottoms. But here's the thing. There's no better time to find a bottom than in something that has yet to be monetized. Right. In other words, there's no better bottom than something before it's even begun. So this is a kind of a unique and almost a once in a, I guess, lifetime, but once in a, once in a century type of event. I mean, you know, this is the first real asset created since Bitcoin.

Riggs: And it's the first real hard commodity created perhaps since solar power. I mean, you know, these these are new, new elements. And so, I do think that the stock market will continue to rise. Why? Because it will reflect inflation, right? Mm hmm. And here's what's going to happen. The big corporations are solving the problem of inflation by raising prices. And, you know, if Procter Gamble raises the price of soap, what are you going to do? You're going to buy soap. So I think that I don't see a major stock market crash. I see just an erosion of the dollar value and a flight to safety by smart investors.


Building a New Asset

So you all are helping us build an amazing new asset. And we want to get, Ken wants to get the accredited investors in before Riggs, Andrea, Dustin and Manuel go off and get some institutional funding. Right. Because quote unquote, cheaper funding, cheaper money. And but we want our people in there now. Become a mini Jeff Bezos, quote unquote, that way.

Ken: Right. Or kind of a, you know, a Thiel or a Sequoia. And I've often and I've had a lot of conversations with our investors say, look, the first 20 million is actually a lot longer and a lot more arduous than the next 200 million is, you get in a room full of institutional investors and you say, look, I've got X amount of dollars of capital equipment throwing off X amount of dollars, which are mean huge numbers, hundreds of millions of dollars in revenue over the next 20 years. And this thing is going to work against inflation better than anything you've got.

So, you know, this thing can be $1,000,000,000 asset and I need X, I need X amount of dollars for that. These folks are used to taking an inordinate risk on these kind of startup ideas, startup fintechs or whatever, having their, having all of their money going into an asset and still having that really kind of cool upside that they only occasionally enjoy, I think is, is going to be an irresistible attraction to them. It would be a lot easier to get a lot easier to get $300 million than 30 million is what is basically what I'm saying.


Audience Input

Riggs: And a very good comment here by Darrell Polston. And first of all, James Wright, Thank you for picking up more OCLN stock, that's appreciated. "Waiting on another credit offering." And I appreciate your fine words. But Darrell says, "Enhanced QE would be a complete devaluation and high inflation." 100% true. But here's something else, "Consumers will shift to needs versus desires, as happened in the past." Guess what? Water is not a luxury.

Ken: Right


Preferred Vendor

Riggs: When water rates go up, people still drink water, right? They just pay more for the water. And so it's hard to even imagine they're going to take shorter showers, even that I mean, that's it's just not something that, water is water. And so us delivering a better water deal for businesses and protecting them from higher water rates. And also a major, major initiative that I want to tease you guys with tonight is that we are about to do a partnership with an organization that is building housing developments.

And we are going to be we believe, the, we're in the middle of negotiations, the preferred vendor of metered pay per gallon water treatment for those housing developments, so that these housing developments can be put anywhere without worrying about sewage. Right now, we're helping the consumer as well. So we're going to reach down to the consumer.

We can't do single family homes because it's too small and it's very commoditized. There's some great people installing whole home water treatment systems. We don't want to get in their way, but we can certainly help at the housing development level, 200 doors, 300 doors, even 100 doors.


Keep Rates Boxed In

And we will help keep the water rates boxed in. Think what a benefit that will be to have to be part of an HOA way that did a good deal on a private water utility treatment thing so that their dirty water is treated and they can even recycle it onto the lawns and the golf course. It's going to be a beautiful thing and I believe it's going to be a real tent pole.


Freewheeling Discussion

Darryl also says, "Reuse will become very important to California and other places that haven't done it before." Very true. Even places where there's no droughts, they still pay for the incoming water. They're paying for something, right? And so being able to reuse it is a fantastic asset. So that is, these are some of the thoughts that I have about that. And it's really, really interesting what we're doing here, because in order to monetize water, you have to create, look at it this way. Uber figured out how to legitimize Gypsy cabs. Before Uber you were getting an illegal ride from this dude driving down Lexington Avenue. Woo woo woo. Hey, man! Want a ride? Yeah, sure. 20 bucks. Take me to the airport. Right.

Ken: And they only take cash.

Riggs: And it was a big old Impala. Big old Chevy Impala.

Ken: And have you ever been in one that actually gets pulled over by a cop and gets ticketed? And you're sitting there late now? Now you're sitting in the back of the damn cab, and the guy's getting a ticket, and you're like, "Oh, my goodness." You know, because you couldn't get a yellow cab because there were only so many of them. Right.

Riggs: So that meant that the, this freelance gypsy taxi. (Bob says crowdfunding. Yes, we mentioned that earlier. I'll come back to it) There was the sort of freelance taxi thing was impossible, was not monetized and Uber monetized it they made it happen somehow, except in France, where they burned the Uber cars and they jailed the Uber guy. But elsewhere Uber got away with it. And because, the French, you know, they show their displeasure in very material ways. Here, we would call it terrorism.

But the truth is, is that water, in order to be monetized, has got to be taken out of the sort of central, who knows what the price is model, to a box where we know the price is protected, it is inflation indexed, but it's less painful than the inflation indexing, inflationary process of the city. Plus, you can recycle and reuse it again.


Becoming a Verb

Ken: I wanted to add something, if I may. Kind of an observation off of what you mentioned with the housing project. So obviously, everyone's talking about commodities are the way to go. Scarcity creates higher prices. In the case of water. It's all life on earth. Putting these housing developments together, you know, 200, 300 homes, you would think that stretching out the water supply,  in other words getting, we talk about getting one or two or three turns on the water. Right? You're talking about massive level potential, massive scale water conservation. You think that actually kills your business model. It does not because water is this one thing that always must be consumed. So by conserving or by stretching out the amount of water that can be used globally, we provide a tremendous service, but we don't, we don't kill our customers. Right?

In other words, if you blow up a bunch of oil, right, if you get a bunch of oil, what happens to oil prices? They drop, right? Because there's more supply. With water that won't happen because it's basically, it's only the disposal and re-use. So we're actually we're not perpetuating our own hardship, by making more water available in all of these locations, we're actually globalizing the idea and making it kind of like, well, I'll give you an idea.

I'll give you, I'll give you, when something becomes a term, when something becomes a verb, it's a big deal. You know, we don't search anything's on, we Google things, right? We don't rent a house, we Airbnb it, right? So we could become prolific enough where this becomes the verb. And I think that these are the first steps.


WOD FInance Centers

Riggs: Well, that's a very you say, globalize. And that's where I believe. Look, if you're stuck with high water rates in northern California because of a drought, there's no way to offset that risk. And where we, we want to do is create regional finance, Water on Demand centers for finance. Remember, it's a pure finance play, so we can end up with a partnership. Again, we're not going to build an entire company in Singapore. We'll have a partnership with a Singapore financial player, partnership with a Dubai financial player, London, etc. And then that creates Water on Demand activities.

And now people can offset their Northern California water costs with a Singapore water costs all under the same umbrella, which is this Water on Demand concept. There's a very important axiom when something goes into this crazy tornado of adoption, a single company cannot meet the entire demand. Impossible.


Making Alliances

The key then is make alliances. Yeah. Everybody play, go big tent, right? Yeah. You want to be a Water on Demand partner? You got it. But you have to maintain standards and so forth. And so the idea of making it as inclusive as possible is going to make Water on Demand a standard. And then that way we'll have metered water being monetized worldwide eventually. That's super exciting.

Ken: Over and over and over again, which is super exciting. And like you said, the humanitarian and environmental benefits are incalculable.


About Crowd Funding and Regulation A Offering

Riggs: Exactly. Bob Roos wants to know about crowdfunding. I mentioned earlier, you might not have been here. I retained the attorney a few days ago for the Regulation A offering. He's working on it. Timelines, who knows? It's going to take a couple of weeks for us to put the thing together. Fortunately, we just filed our 10-K, so it's going to be relatively easy to use that data. We've already worked out all the, all the details of it. Actually, I do plan to cover it, but I would like to have a bit more certainty that it's okay before I start talking about that. And then it'll take, I don't know, three or four weeks for the SEC to approve it. If it works out, which it should.

We are not doing a Reg CF and the reason is that it's got a lot of weird speed bumps in it. And so we've been counseled just go straight for the Reg A. Reg A plus, 75 million, up to 75 million. Doesn't mean we'll do 75 million, but that's what we can do. And it will be in Water on Demand. Water on Demand shares. Nothing, No OriginClear shares whatsoever.

0h, "CF equals crowdfunding." Yes. Well, Reg CF was Reg Crowdfunding. That's why it was called CF. But you're absolutely right. So the crowdfunding is Reg A. Now, technically what we're doing, what Ken is offering every single day, is crowdfunding because it's, the reg, regulation D offering that permits open solicitation was created as part of the Jobs Act. So it's actually a version of crowdfunding because we're allowed to proudly publicize it. But now I'm becoming very geeky.


Going Fragmentary

Darrell says. "How does this fit into the move to 50% of the workforce being gig and contract workers?" Well, it's very good because the problem with central water is not just that they don't have enough money. They're losing people. They're 3 million people short in America already. It's called the silver tsunami, where people are aging out. And what is replacing it is local workers at water companies that are often contract workers. Right. So that's, there's going to be plenty of people, but they will work for the local water company that we will use to support those local businesses. Everything is going fragmentary. Everything's going atomic. Right.


A Financial Layer that Networks

Ken: And Water on Demand, essentially it's a lattice, so overall which actually networks them all, right? Because right now they are, they're kind of in islands of their own, right. They don't have that, this will be this, this will be the Internet of it, if you will, right? It will be able to kind of connect, connect them all through this platform.

Riggs: Global Water Intelligence back in 2016 said, and we had it on our website for a long time, said decentralization is driving business to these small water, these mom and pop water companies, and whoever unites them will create a pretty interesting business. Drop the mike. Thank you very much.

Andrea: Thank you. People do not appreciate the demand because it's something that they..

Riggs: Speak up.

Andrea: Oh, could not, could not hear?

Riggs: Yeah.

Ken: Better now.

Andrea: Okay. Now, I was saying that there is probably, people don't appreciate the demand that exist for it. So, so the delivery is the issue in our particular industry. So, you know. Yeah. Your idea Riggs of connecting and creating this network of provider is probably really one of the coolest ideas and a game changer, so.

Riggs: Well, we were we were forced to. To see that when we saw our own company blow up. And now, if you visit McKinney, Texas, the place is full of machines and people are working nonstop night and day. And that, that was only from 4 to $12 Million. We, it just, we just cannot be the the builders of everything. But there are wonderful builders out there. So, yes, Andrea, it's almost a forced realization we had. But so but we'll take it as genius like, okay.

Ken: Shhh! Don't talk about don't, don't listen. Pay no attention to the man behind the curtain. It was pure genius. One more thing that I get a lot of people say, you know, kind of talking about how Water on Demand is really a concept, how these, what we're doing. No, no, no, no. We have done over $10 million this year in tens of millions of dollars in decentralized private water utility treatment for the past decade. This is proven. The only thing Water on Demand does is rapidly accelerate it by providing the finances.

Riggs: Adds the financial layer.

Ken: Exactly. So, guys, we're pros at this already. All we're doing is taking technology that has been well developed by all of these forbears. You know, companies like Stripe, companies like Airbnb, companies like Amazon, they developed fintech, right? We're simply taking all of that work and just dropping it on the water industry and creating, almost like a supercollider. Right. Which just greatly accelerates the ability to transmit funds across a network and finance things in the virtual realm.

Riggs: It's going to be fun being financial people. I, I've always kind of disdained it, you know, like. But frankly, it is, is the juice that's going to make this work. You know, the analogy is we're, there's already gypsy cabs out there. We're just making it an industry, a business.

Ken: And if you can't beat them, join them.


Execution is Key

Riggs: Exactly. All right. Well, Andrea, you were about to say something. Did you have any more thoughts?

Andrea: No, no, no. I just was saying that people don't appreciate... Now the execution is the game. Now, now we need to, because that's the tough part. Like Riggs was saying that even the VP sales and all these people are actually there, on the floor, in the weekends to deliver. So that's really the game.

Ken: And just to add, I don't want to belabor the point, but that's exactly the point. So we would need to have 100 manufacturers fulfilling this dream. So the way to do that and to monetize what was, what was a competitor is now an ally here. Here's the money. Here's the ability to do it globally. Go have fun. Now, they're an ally. And that's exactly right. So you don't have people working 20 hours a day trying to manufacture and get stuff out the door. You simply magnify your manufacturing base.

Riggs: But Andrea is doing his job as Mr. Spin off, saying that the productivity of Water on Demand is a high priority getting those Water on Demand projects going. So thank you, Andrea. That is a correct focus. And with that, I'm extremely pleased that we agreed to deploy you very specifically in this area. Thank you. Already we're getting some action going. Everyone, I want to thank you for a very interesting briefing and I'm super excited about how things are going.


call Ken

Call Ken

Do stay in touch, as you know, just to talk to Ken. Okay, Ken or call him up. And talk to him and get in now! I'm not going to get dramatic about it because it could be a little while.

Ken: Not if I get my way.


Riggs: Exactly. Darrell says, "It will allow you to leverage MaaS to deploy the solution." Mobility as a Service. Absolutely.

Ken: Mobility as a service. Is that what he said?

Riggs: That's what he said, yeah. Okay. We've discussed that anyway. We've overstayed our welcome. I like to wrap it up before. Well, before. Okay. He said, "Manufacturing as a Service." Well, it's exactly right. Thank you, Darrell. It's a beautiful thing. Precisely right. What's happening is more and more, for example, we're building out one of our manufacturing centers for water, for Modular Water Systems™ to do everything related to, they're not just building, not just cutting plastic. They're also building control panels, etc.. So we're actually empowering all our production centers on Modular Water Systems so that they can be more productive. So. Thank you, Darrll. And I think it's a very good point.


Thank You

All right, everyone, I'm going to let it go and look forward to seeing you all next week. I'm going to show you this cool new institutional deck. It's going to be a beautiful thing. Thank you, everyone. Have a good weekend.

Ken: Bye guys.

Riggs: Thank you, guys.

Andrea: Bye bye.

Ken: Bye.

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