CEO

Reviewing the Palestine, OH toxic chemical spill really pointed up the frailty of clean water resources and urgent need for action, and the footage we played from our CEO's appearances on Real America's Voice and NASDAQ Marketsite demonstrate that we aren't waiting around for government or Big Water to solve the situation! The precision and relevance of the OriginClear strategy and Water On Demand™ make it crystal clear they should be supported… But is there any big benefit to taking a founder's role while they're still aspirational? Find out in this replay!

Transcript from recording

Opening

Dan Early: The drive behind this has been our focused and deliberate promotion and marketing campaign. We started in 2019 with the EveraMOD™ product line. We developed the product line. We promoted it to specific regions. We promoted to the consulting and the specifying engineering world. They are at the tip of the spear. We're working with their customers and clientele. The product is geared towards them. It makes their lives easier and with use comes familiarity. And the engineering world really likes the ease of which they can take our product and implement it as a solution for their customers.

Now what we are seeing a similar series of events and experiences with respect to the EveraSKID™ plug and play wastewater treatment system and the EveraTREAT™ direct burial, packaged wastewater system that we have. That is what's driving this. It's a very deliberate, very focused process. You know who your end users are, who your stakeholders are, and you have to promote to all of those and you solve a problem for all of these stakeholders that are a part of this process. As you do that, this thing scales and grows very rapidly.

Introduction

Riggs: Welcome, everyone to the briefing and it's a great pleasure being with you. Keith Roeten, "An easier life is what everyone wants." Well, we do make it much, much easier to have world class water systems. We'll be covering that in detail right now. So without further ado, let me let me get it on here. With a screen share. Here we go. Water — The Blue Gold™. Thursday, February 16th. Briefing, we're getting up to 200 briefings. These are just the Zoom briefings. We used to do them before. It's been four or five years or these briefings. But right around, just before, literally like a month or two before the pandemic started, we started with the Zoom briefings and it proved to be the thing everybody does, didn't it?

All right. Quick disclaimers.

PhilanthroInvestors® Ambassador Briefing

And let's get it on with, on the ninth, I did a briefing to the PhilanthroInvestors® Ambassadors as to basically what's going on. So let's take a look.

PI CEO Arte Maren: Welcome, everyone. So this is the Riggs interview, right? I've known Riggs for quite some time. At one point, he was actually a relative. That was exciting because my daughter was married to his brother. Whatever that is, I don't know. That's like an uncle in kind. I don't know. So when you're able to observe somebody kind of up close, you get to see not only what they're producing, but what they care about, what they're producing. And that's something that's always stuck with me, with Mr. Eckelberry.

And the experience of the evolutions. You know, I think it's very rare that somebody jumps into a game and hits it first shot out of the box. That's it. I think you find most entrepreneurs, successful entrepreneurs, they've failed two or three times. They've won two or three times. And all that enriches the final product. And I think that's where we are now. By statistics and by input and everything else. So Riggs, what would you say is the carry your wave now for the increasing success of Water On Demand™ and the opportunities that you're presenting?

Riggs: Well, thank you, Arte. Of course, when you guys came along in mid 2020, we were in the middle of repositioning ourselves completely away from what we had been, which was, okay, we have great technology, we're going to take it to the market. Everything's going to be great. What we learned was that technology is commercialized extremely slowly in water. Literally, they say in the business it takes 12 to 15 years to commercialize a technology, but the world doesn't have that kind of time.

And so we decided to completely change the way we did business. And so now here we are with a a new model, which is an acceleration model. And so we're taking these amazing businesses that were growing and we're accelerating them into the marketplace. So really the key really here is to move much, much faster than people are accustomed to in water. And we need to because only one gallon out of five in the world of dirty water is treated and the other four gallons are thrown away. And, you know, they come back to you, right? Everything comes back to you. Everything you throw in the river or the ocean comes back. So it's high time that we do something about it.

Now, I wanted to tell you that we have some great news. We have some updates on our own. This graph here shows the revenues that we had through 2021. Now, this revenue in a public company includes delivery. In other words, you brought in the money. And until you deliver that money is a liability. You actually, you owe it to people until you deliver. You either either deliver them the money or the product, right? So revenue in the public company means that you have actually taken the money in and you've delivered the product.

So we were running about $4 million a year for a long time, and that was what we were dealing with in 2020. Like it kept it stretched back in time, the same level, same level, $1 million a quarter, endlessly. As a result of our efforts, you can see that in 2022, Actually, I can share with you right now that the actual number is in excess of 10 million for the year. That's an unofficial number that we will be reporting in April when we report our final numbers.

As a result, we think that 2023 is going to be much more than 12 million, etc.. So that's great news. In addition, I wanted to show you how it breaks down where we have some events that have occurred here. That green line is Progressive Water Treatment. That is a company that does very large custom installations. For example, they have one client, prominent car manufacturer. We have a prominent online marketplace. We have a prominent power plant in the southwest. These are all driving very good revenue growth as you can see. We went from, they basically doubled their revenue based on tripling their orders in 2021.

A company that we that we created in 2018 called Modular Water Systems™, as you can see, and still in 2019, it was only, it was generating less than 500,000 a year. It was very slow and it was very painful. But finally it started growing. And what you see now, the combination of the blue and the yellow, because what we've done is we separated out the line of pump stations. We now have two divisions where there was one. So it's gone from a million in 2021 to roughly 3 million forecasts for 2022. Really, this is very, very conservative. I think we'll be in excess of five or 6 million in 2023.

What are pump stations? What is Modular Water? First of all, Modular Water Systems, it's a product line of what we call Water Systems in a Box™. The water industry builds things by hand, like houses. They put them in the ground, they [use] lots of concrete, etc. This is a different system. This is built in the factory, shipped out on a semi truck, drop in the ground or just left on the floor, plugged in. It's called, so it's a highly standardized product line, which is meant to accelerate the adoption of water treatment systems by businesses.

We're in the middle of a major shift from government monopoly of water treatment to businesses doing their own treatment. Why? Because water treatment and infrastructure is falling apart. Government is failing at its job. I'm sure that's a surprise to you. Government I'm sure is perfect in everything else. But in water, it's a disaster. We are falling behind every year by at least $75 billion. The end result is, of course, as things fall apart, people start doing their own thing.

So businesses are increasingly doing their own water management, recycling, etc. and it's a very good thing. Why? Because they save money. They do well. So that's that Modular Water Systems technology miniaturizes these large government systems into systems that are small enough for a business. They can fit on the floor of a brewery, for example. So that was critical and that has become a new standard. Most of the jobs that Modular Water does are what we call designed to build, meaning that no one else can do it. The client has said your design is what we will build. So that is the technology side.

Then in 2020, as already remembers, we were faced with a problem that we were still not getting enough growth. As you recall, I mean, I was literally showing you this graph where whoops, 2020 for Modular Water was ridiculously low. It was 232,000. So we had to figure out what the problem was. And the problem really was that many, many businesses don't have capital. And so we created a way that businesses would not have to pay up front for the system and just pay by the gallon the way they used to do it with the government. They just do it with us. And we call that Water On Demand.

Water On Demand now is becoming a major startup, and I'm happy to announce that very shortly will be launching an offering for unaccredited investors because when you market only to accredited investors, which means people who are making at least 200,000 a year or with their spouse or cohabitant, 300,000, that restricts your marketing tremendously. This regulation A offering, will be shares in Water On Demand that anyone can invest in, up to 10% of their annual income for the minimum of 1000.

You will be hearing about that shortly. And what we've learned is that in that flow, we find the people who are willing to invest more as big investors. So it's much more, it's much more efficient marketing when you're able to market to everybody and just find from your pool of investors the people who might want to pop up. So we're moving to that phase and it's very exciting. There's other things going on with Water On Demand with respect to it's perhaps moving much, much faster to become a major public company. But unfortunately, I'm unable to comment on it. You can go to www.originclear.com and check news. The last few announcements will tell you what you need to know. I'm very restricted what I can say.

And I also finally want to say that I'm blown away by the amount of support by PhilanthroInvestors the amount of investments that have come in through PhilanthroInvestors has been booming. And this is important because remember, it's to put capital into water treatment systems that are paid by the gallon. So that investment goes directly into water systems. Currently, at least 50% of it, and soon it will grow to 100%. So I'm super happy with how we've been doing. We've got a lot of things going in the background. And I want to thank everyone for your help.

PI CEO Arte Maren: I know that there's a lot of exciting activity right now, and I know you're not being a tease by not telling us. What can you say that will give everybody, because these are our ambassadors, they're going to be bringing this data to others. What's the message you would want to give to them that they can carry forward?

Riggs: Here's the story. Right now in the world, we have a very difficult economic situation. I myself sit there and I try to invest in the market and I don't know what to do. I have no idea what to do. You know, oil should be going up, but then it goes sideways and gold should be going up, but it's not doing it. And then real estate should be doing great. But then weird things happen with interest rates. So what we have is, we have a lot of asset classes that are at the end of their life span, and so they're behaving weirdly and governments are doing strange things and we have wars and all that stuff.

Water is at the beginning of its cycle. Why? Because it's been governmental. It's being liberated. It's kind of like when AT&T got broken up and it became MCI and the Baby Bells and the Internet and everything else, right? I mean, everything just exploded once it got out of the the monopoly of AT&T. So we have a similar situation where it's coming out of a monopoly. It's a clean asset. It's not political. Nobody is really paying attention to it from a political point of view. And we have created a way to for people to get royalties from this asset.

The world is moving from currency based finance to commodity based finance. What does that mean? Currency, dollars and other currencies are being inflated like crazy. You know that. You can see that in the price of eggs. You can see that in the price of orange juice. I just saw orange juice skyrocket. I don't know. Who knows? So all these prices are going crazy. Why? Because currencies are being inflated, hyper inflated, and we're moving to more and more in the world is everything based on commodities.

If a country has good commodities, it will survive well. Which, by the way, is very good for certain countries like North America. I talk about the Union of Canada, US and Mexico. Argentina, by the way, is a very good place in terms of resources, for example, and that is going to be the strength of a country. And so if you can invest in a commodity, you will do well. Well, water is a commodity and we've made it so that you can get revenue from it. So when you invest in Water On Demand, you have a secured relationship with the hardware that we buy. So, to enforce your royalty.

So it's a good, stable revenue stream. And it goes on for ten, 15, 20 years. And of course, you get stock in both the parent company, OriginClear, and in the subsidiary Water On Demand. And so you're in at the beginning of it. Now, we are being incredibly generous with our offering. Why? Because it's still early. This is the beginning of Water On Demand. We don't have an installation yet. We're still negotiating with several parties for the first project. We raised the money. Now we have the money. Now we're working on investing it. While it's still aspirational you have an opportunity to offer your network an amazing founder's role in both OriginClear and Water On Demand. And that's why it's a great time and that's why really there is no better asset, in my opinion, in the world today.

PI CEO Arte Maren: That's pretty straightforward. I think it's a very good answer as anybody, any of the Ambassadors have any questions for Riggs?

Ron: I have a question for Riggs. Riggs You mentioned before that you were doing a regulation A offering. I'm just curious, is that doing a tier one or two on that?

Riggs: It's A regulation plus tier two. Yes. $75 Million for Water On Demand. It's very simple. It's $5 a share in Water On Demand Inc, the new company. We're going to do a maximum of $25 Million. Basically, this describes the offering, describes the company. it's got a very good description of the company. The problem, where water rates are going, the solution. I won't bore you, but basically we'll be funding Water On Demand customer projects and acquisitions. We plan to acquire companies as well.

Mbuotidem: I want to know, because of the way you talked about the Water On Demand thing, is it like when you have a community, like a community could look for water or want to break away from the government. Will you still use the pipes of the government or do you have a new circulation? How does it work?

Riggs: Very good question. There's three phases to water management. The first phase is the incoming water. As you say, the the clean water that is supposed to be clean, that comes in. The second phase is treating the water that you use to make it clean. And the third phase is reusing it, recycling it. Now, typically, we're going to continue to rely on the government for the incoming water. Why? Because they have the rights.

Now, you can also build a well on your property for sure. And, you know, and treat the water that you get. That's perfectly okay. But, in general, we're using the government infrastructure for the incoming water. OriginClear is working to improve incoming water. We have a major client that we have not been able to disclose that is a premium hotel chain that is cleaning all the water that comes into the hotel and they have a location in a midwest country and one in a southern Florida, Midwest state and one in a southern Florida location. The best I can tell you, and they have many more. So it's a very good client. And so we're entering that space, but our strong area is treating the dirty water.

People always, when they think of water, they think of the clean water. But the problem is the dirty water. That's the problem. That's the thing that nobody's handling and that's what's destroying health in the world. So we want to move into helping not just one fifth of the water being treated, but getting closer to 100%. That's really our mission. And then the final thing, when you let businesses do their own water treatment, they will naturally recycle.

Why? They don't have to pay for the water. If I have the, I paid for the water one time, a brewery, for example, can reuse half of its water, 50% just for non beer purposes, right? Washing down vessels of steam, etc.. That means they're saving money on incoming water. And by the way, it relieves droughts, so it's a good thing. Centralized government does not recycle. Why? Because we built our water systems in the 19th century, and they only go one way from the city to the users back to the city and thrown away. Recycling is going to be done by businesses at their own location, and that's very powerful.

PI CEO Arte Maren: What is the one thing that is most important to get across to that potential investor?

Riggs: The most powerful message that we've found for investors is that we've made water so it's like an oil well, meaning that people can make money from production of the water. And investors get interested like, oh, because they know that you can make money from oil wells. Right. It's called limited partnerships, right? So you can invest in, there's I think, what is it about 60 partnerships out there where you can participate in an oil wells, revenues from production. A water system is going to treat water and create Water Like an Oil Well™.

And people like the fact that, oh, I can make royalties from water as opposed to oil. How cool is that? So it's a new way to make money in a very beneficial way. And it's continuing revenues. Plus, of course, all the stock. By the way, on our website, we have right here, we have the company presentation. You can always show it to anybody right here. This is our company presentation, which I won't go through, but it tells our whole story.

One last thing, PhilanthroInvestors is in the history of my working with Finders, the only truly productive finder network I've ever come across. It is a testament to both Arte and Ivan and of course, Vendy and now Sky. So you guys are super important to us. We'll do anything it takes to support you. It is a brilliant idea and we think that you're you're going to be absolutely essential to our future. So thank you.

Vendy: Thank you.

Ambassador: Bye bye.

Ambassador: Thank you.

Mbuotidem: Thank you. Bye bye.

Riggs: And continuing here, we're going to go right into a actual interview that was done. It's a great deal shorter. It should be interesting. Let's take a look.

Real America's Voice with Shemane Nugent

Shemane: You know, you have to have good water to make good coffee. California lawmakers are concerned about children in the state drinking lead contaminated water in their schools. Lead exposure is particularly detrimental for children who are still developing. Yet the water fountains and the faucets in the state schools have not been tested for those damaging contaminants. Assembly member Chris Holden is trying to fix that with a bill that would require water fountains and faucets at schools and private schools built before 2010 be tested every five years and cleaned up if tainted with lead. Hello. Joining us live, a man who knows everything there is to know about lead in our water. National water expert and founder of OriginClear Riggs Eckelberry. Riggs, welcome, I'm so glad you could join us.

Riggs: Thank you. It's such a pleasure.

Shemane: Now you've got your espresso, right?

Riggs: And it's from a triple-filtered water source.

Shemane: Here we go. Cheers.

Riggs: Now, I want to see the foam on your lip.

Shemane: Oh, I did. Yeah. I'm afraid that I won't be able to get it off. This is a cappuccino. And it was a heart shaped cappuccino. Riggs, according to recent NRDC polling data, access to safe drinking water is a top priority for America. You didn't have to pull anybody for that. How do we find out more about the quality of our water and what we do to ensure the water that we're drinking is actually safe?

Residents in Rio Verde Arizona recently had their water permanently shut off due to drought. And Jackson, Mississippi residents are preparing to go without water periodically for the next ten years. Beyond lead pipes, what other water issues is our nation facing and are we in a water crisis?

Riggs: Well, arguably, I mean, we've been in a water crisis for a while. It's finally coming to light with the scandals at Flint, Compton, California, Jackson, Mississippi. But even affluent areas like Fort Lauderdale and Miami Dade County have had their problems. So what's going on? First of all, I wanted to answer your first question, which is how do I find out about the water in my area? And I find that the best source is the Environmental Working group, www.EWG.org/tapwater. And you put in your zip code and oh you get the nightmare. It's pretty bad, right?

Now, virtually every single district in America is compliant with the law. The municipalities are doing their job. However, the standards are way out of date. And EWG will point out, by the way, this is 15,000 times below the standard of what science has learned. So we've got a big lag between science and the law. And part of the problem is that we've been neglecting our nation's water infrastructure, our costs of operation and maintenance, which is basically like letting your Toyota Corolla just get worse and worse, have been rising ever since 1961, which is longer than you or I have been alive. So it's really a long and sad story. Now we can get to what we do about it, but that's the situation.

Shemane: Not much longer. I was born in 62, but I was at I was at a very nice hotel in Fort Lauderdale about a year ago and I went to fill up the bathtub. The water was yellow. What does that mean about the quality of that water?

Riggs: Well, the same thing happened in Compton a few years ago, and the residents of Compton started seeing brown water coming out of their taps and they said, what's going on? And the local water district said, well, it's safe, it's magnesium. You're okay. So it can be basically minerals. But they said, No, no, no, we'd rather have clear water, that's okay. And that's when the water district kind of said, well, you've been voting down our infrastructure expenses for the last 15 years. Now you get what you paid for.

Needless to say, they were, that water district was quickly absorbed by the the larger metropolitan district. And I'm happy to say that the problems largely handled. But we have an endemic problem that most people are just not aware of. Now, when you or I were growing up, and I have to say today is my birthday and I'm literally ten years older than you was that we had a big problem. You know, the came to light recently. But when we were growing up, we drank the tap water. We didn't worry about it.

Today, I don't think anybody does so with any kind of, they'll drink the tap water if they have to, you know, you and I, if we have the funds we install under sink systems and at the at the very least, one of those countertop water filters that are very good. But so many people can't do that. And frankly, they shouldn't have to and I've gotten kind of passionate about it because what I learned, you know, I came from high tech into the water industry and expecting to find an industry ready to be transformed. It was not.

Okay, what I did learned was that 90% of the demand on the cities for fresh water and water treatment is from industry and agriculture. Only 10% is the humans. Well, I think that's wrong. First of all, the system was built for humans, it was not built for industry. And secondly, it's overwhelmed. There's not enough funds. The Biden administration allocated $1.2 trillion for infrastructure, of which only 55 billion went to water, and we're falling behind by almost 100 billion every year. So we have a solution, but it is a dire situation.

Shemane: The American Society of Civil Engineers gave the US a C-minus overall for its drinking water systems. Is our current administration doing enough for water infrastructure? And, I don't think they are, but what would you recommend that we do?

Riggs: Well, clearly not. I mean, compare 55 billion to 1.2 trillion. And arguably clean water is more important than rural bandwidth, for example, which was a big deal in the infrastructure bill. But I wouldn't entirely blame the administration. I think it's a problem with all of us because first of all, we don't love sewage. I mean, this is not, we think water is important, but sewage is not so much, right? But secondly...

Shemane: No, we don't love sewage.

Riggs: I'm just trying to be delicate because I'm in the water industry. But where are you going to put the sewage plants? I'm here in Pinellas County, Tampa Bay area. It's full of houses. There's no room. And who's going to want a sewage plant next to where they live? So budget room and the NIMBY problem means that there's not going to be a lot of building new facilities centrally. And so we've got to do something else. We are fulfilling the definition of insanity right now.

Shemane: Yeah. We saw in Flint, Michigan, exposure to lead can seriously harm a child's health, as you mentioned, including brain damage and to the nervous system and slowed growth and development and learning and behavior problems and hearing problems and speech problems. How can we fix this? And why are kids under six most at risk?

Riggs: Well, I have to say, you know, there's the saying, mad as a hatter, because hatters used to make hats with lead. And that's how they started looking kind of crazy. So it's all ages. It's lead is a terrible problem. But I agree that the developmental stage is the worst. We've got to allocate massively more priority. And I have to say that that's where the Biden bill did allocate that 55 billion. A great deal was allocated for lead remediation. So, you know, again, I want to be fair to say, you know, there is a lot of attention on that by the federal government. The states have awakened. The Flint example was a clarion call like, okay, enough already. And I think that we've, look, it's not just let it's arsenic, it's those forever chemicals we're hearing about. It's the roundup.

You know, that farmers who use Roundup get elevated levels of brain cancers, right? Well, that can so that's the high level exposure. But even the low level exposure is bad that we get every single day. So we need to think about a range of chemicals. And the key here is we've got to free up the municipalities to do their job with humans, with residents. Right now, they're overwhelmed serving the industry and agriculture because that's what they're being thrown all this toxic waste from those industrial and agriculture users. If we somehow were to alleviate that, then the cities would have more money, more resources to take care of people. Do you know that in Ireland water is free? Why isn't it free here? Because of the overload from industry.

Shemane: Yeah. When I was growing up, we never had to be reminded to drink water. And when we did, we drink it out of the water faucet at school or the hose, you know. Now, I told you when we were, when we were talking, I have a she-shed in southwest Florida. One of the big issues there is red tide. Can you talk about that.

Riggs: Red tide come from algae.

Shemane: Cheers by the way.

Riggs: I'm draining it rapidly, I'm going to have to get some more. Okay. But hopefully you're going to keep getting supplied. And by the way, initially I thought a sea-shed like at the sea, but now I know it's a she-shed, I've been educated.

Shemane: She-shed.

Riggs: Anyway, red tide, noxious algae. Sometimes it's black, sometimes it's green. We see that a lot down, downstream from agriculture, because what we have is we have phosphates and nitrates being dumped into the rivers. Happens a lot, for example, in the Carolinas, coming out of the chicken farms and algae is doing its job. It's eating up those nutrients. It's trying to clean things up. Unfortunately, in the process, it's taking all the oxygen out of the water and killing the fish. It's not good.

We have to do a better job. You know, I summered twice in Italy when my son was growing up and we were by this beautiful crater lake and all these fields went down into the lake, and yet the lake was limpid and you could drink from it because the Italians would do such a great job of cleaning that agricultural runoff. We've got to meet the same standard. So there is a solution, but it's called self-help by industry and agriculture. And I can get to that.

Shemane: When also when I was growing up, I lived in Michigan and I remember when Lake Erie caught fire, You remember that?

Riggs: Absolutely. Absolutely. Oh, my God.

Shemane: And we found out that Canada was pouring its sewage into the Great Lakes. I mean, it's not just us, but it's other countries and what's going on in our water system around the world. It's all meshing into our agriculture as well.

Riggs: It's so bad that worldwide only 20% of sewage is actually treated. 80% is dumped into the ground, into the rivers, into the ocean. That's a lot of sewage. Now in America, the ratio flips. It's more like 80% treated but places like Bangladesh. I mean, I'm not blaming Bangladesh, but they're a poor country and they just don't have the infrastructure. And so virtually everything is dumped. India, same problem. Many, many countries, Mexico, just south of us, has a big problem and they're well aware of it. They're trying hard to do something about it.

But, you know, it's a catch up process. And again, you have to look at how is India going to solve its problem with water? It's not going to solve it with giant, you know, trillion dollar projects. Where's the money? Where's the time? Where's the space? They're going to have to do it in a very simple way. And that is through water independence by promoting businesses and farms and eventually homes doing their own water treatment onsite so that the central facilities are not so overburdened.

Shemane: Are there any legal resources for those who have been affected and hurt by the lead poisoning? Where could they go?

Riggs: Yeah, that's a really good question. I suspect. Wow, that's a, NRDC is a great organization. They are really proactive in the area. So, and environmental working group www.ewg.org. I would go to one of the nonprofits like them to ask for help, you know, because these lawyers are passionate, right? And they often do it as part of their mission, as working for a nonprofit. So I think that government is overwhelmed, doesn't know what to do. And again, it's not their fault, but they're just not equipped for it. I think that this is where the nonprofits are going to have to step in.

Shemane: Yeah, well, Riggs, thank you so much for joining us. I really appreciate your time.

Riggs: It's such a pleasure to meet. And any time I can help. This is a thing I'm passionate about. And, you know, with this good coffee, we end up on a nice note.

Shemane: There you go. Cheers.

Riggs: Well, that was super cool. And by the way, Bob Roos has correctly stated it was Mercury that drove the hatter's mad lead was the Gremlin in gasoline manufacturing. Lead was a problem right into our century, the 20th century, with leaded gas. And that caused a lot of behavioral problems. Mercury also a bad chemical.

All right. So an a quick hit we got in LiveStrong about how to remove sodium. Some people have a problem with sodium. And what do we do about it? Well, I got quoted right here, which is very cute about how you should probably use reverse osmosis. And they go on to do a lot of review of some of these water filtration solutions. I won't get into them, but it was a good little article. We like helping out there.

Peter Zeihan's Presentation

All right. Now, I wanted to cover a very interesting gentleman, Peter Zeihan. I've featured him before. He's a geopolitical strategist who is really interesting. Why? Well, he lectures to the CIA. He, as he says, "They ask me questions, but I can't ask them questions." So obviously he's, in a way, part of the establishment, but he's also got some, I think, some novel ways of looking at things. Now in his presentation, which is you can just go ahead and Google. Peter Zeihan, Shreveport, Louisiana. Very good. It was done eight days ago, nine days ago. So what did he say?

Well, first of all, he says, listen, you think your natural gas prices are high. That blue line is us. Right? And we have. And as you can see, if you look around 2000, those peaks, year 2000, you're 2005, you're 2008. Those were when there were hurricanes. But starting in 2009, we started getting most of our gas from shale, which of course is not in the Gulf, therefore not vulnerable to hurricanes. And so we had a nice flat period, a beautiful flat period for a long time.

But look what's happened since 2020 to both Asia and Europe. Their costs have skyrocketed. So they are not in good shape. We continue to be relatively excellent shape. We've gone from 3 to $4 per MCF, thousand cubic feet to nine. Not great, but it's nowhere close to what's going on outside of the US.

The other issue that he brings up is food insecurity. The blue are the exporters, but the exporters also need something very important, which is fertilizers. And so the Xs show the countries that are vulnerable because they don't have their own supply of certain fertilizers. Russia is on that list because they have a lot, but they don't have enough of certain kinds. The point I'm making is that there's only certain countries that are in good shape. North America very definitely. And Mexico, I think, can rely on the US and Canada to supply it. As I mentioned before, Argentina is in good shape, but not Brazil because they have very poor soil quality and they have to have fertilizers.

And this is, of course, because of the the war situation. And Australia is in good shape, Malaysia is in blue. So but in general, there's a lot of food insecurity in the world. Notice that France right there in the middle there are green exports and is also not in trouble. It's got decent supplies. So Zeihan singles out North America, Argentina and France.

But oddly enough, in the middle of all this, we have a big problem, which is that kids are living with their parents in record amounts. Look at how it jumped during the pandemic to record highs not seen since the Depression. And I think that's hopefully it's a it was a transitional thing, but we're going to see that play out over time as the young struggle with the readjustments that are going on, 18 to 29 year olds.

Now, let's take a look at inflation from his point of view. And by the way, this kids living with their parents did not come from Zeihan, but I thought it was interesting.

A Look At Inflation

Okay, now, here he is saying this was inflation. Now the war and post-war industrialization had inflation related to the buildup of our infrastructure. And then we saw a lot of consumption based inflation. Those of you who were active in the late seventies or early eighties remember that very well. Jimmy Carter, very tough time. Globalization took off in the early nineties and really kept prices low. Why? Because we were using very cheap labor countries and that continued all the way until very recently.

Deglobalization

But the point he's making is that we don't like inflation, but we've been here before and there is a positive to this because what's happening is the globalization. So what can we expect, in his words, 9-15% of inflation for the next five years because the supply chain is going to be very weird and messed up. But then we will see 20 plus years of a huge boom. Why? Because de globalization. De globalization means we're not going to have, you know, a 10,000 mile supply chain. We're going to have a 800 mile or 1000 mile supply chain, and that is going to make vast difference.

North America would be very blessed with both excellent resources in America and a very smart and inexpensive labor force in Mexico. And so the combination is very powerful. So we'll be rebuilding US manufacturing, and we're looking at a major boom. Now right away, like, where does the water come from? You're not going to be build, as I mentioned to Shemane there, where do you build water systems and who wants them? Not in my backyard. And there's no time. We don't have 20 years to build a bunch of these big centralized systems that take forever to get permitted. There's litigation. It goes on and on. And of course, capital. We know that water is being starved for capital all the time because of poor priorities in Washington.

So as a result, water infrastructure is going to be a major issue. What's the solution? Very simple. Integrate water management into the all new industrial development. This makes sure that literally clean and brown water. Do you know that a chip fabrication facility can shut down with a single hair in the incoming water? That's how pure it has to be. So industry needs very clean water and we have to make sure that of that.

Number two, we have to treat the wastewater. And if the cities won't do it, the industry has to do it. And thirdly, recycling means we're not as vulnerable to droughts. And also we have better water rates for the users. The key here, if we're going to integrate water management into all the factories and all the farms, then we need to be able to mass produce water systems, which means Modular Water Systems™. That's what we do. The clip that I played when we started was all about that and Water On Demand, of course facilitates it so that we can provide private water management for industry. Meaning they just pay on the meter, but they pay us. And this is so exciting. I'm so blown away with this opportunity.

East Palestine Chemical Spill

Okay. I wanted to quickly cover what's going on in East Palestine, Ohio, and you know, many of you saw the mushroom cloud. Unfortunately, this is being played down by government. I'm not exactly sure why, but there's a lot of minimizing of the problem.

A very good thread by the Twitter user KenakoaTheGreat gets into this. And what I'm going to do is I'm going to quickly jump over to his thread because I think it's worth covering. So here this thread is very good with photos of the disaster and what happened when they burned off the hydrogen chloride and the phosgene, phosgene being a very toxic chemical that was actually used for chemical warfare in World War One. And goes on to talk about hydrogen chloride, which is terrible stuff. Vinyl chloride. Another problem with vinyl chloride, of course, it goes straight into the water table. It just literally leaks right in.

And I'm going to show you some stuff. Now here, look, so that red dot is where it's located. Look, it's upstream from all this whole watershed. This whole light blue watershed is affected.

Here is a bigger picture all the way down the Mississippi.

And there is the poor Governor White, trying to make the best of it. He's not getting a lot of support. FEMA, I just heard today has refused to offer emergency assistance. Why? I do not know. Dead fish, etc. Okay, so you get the idea. So go to KenaKoa.Substack.com and you will get this whole thing. Kenakoa The Great on Twitter.

Another News Clip

Quick clip here is an interesting one.

Senator: Hey, guys. I'm here at Leslie Run. And they're dead worms and dead fish all throughout this water. So something I just discovered is that if you scrape the creek bed, it's like chemical is coming out of the ground. Can each should we come here and let me just show this to people? I didn't see this in the camera, but watch this. You see that chemical pop out of the creek? This is disgusting. And the fact that we have not cleaned up the the train crash, the fact that these chemicals are still seeping in the ground is an insult to the people who live in East Palestine. Do not forget these people. We've got to keep applying pressure. That's how we're going to fix this problem. Thank you.

Riggs: Is a senator who is on site. Here's another one.

Guy: Wow.

Girl: Look at all that.

Guy: Look at it.

Girl: It's all in the bottom of the creek bed.

Girl: Now look at it.

Jane King — New To The Street Interview

Riggs: Well, I covered that in an interview that I gave at the Nasdaq marketsite just a couple of days ago. Here I am. Very cool location. We do this once a month. And let's take a quick look at a very short interview that I did. It's going to be featured on Newsmax Fox Business Bloomberg. This is a paid promotion, but it's very well syndicated and not this weekend, the weekend of the 25th, actually. And so 3:30, Newsmax is 3:30 On Saturday, Edward James says, "I was thinking of the video I saw where you assisted a mobile home park." Very true. All right.

Jane King: East Palestine, Ohio has seen a train derailment. It's led to hazardous waste for miles around that area. And there is a possible solution that could help with these kinds of things. So with me is the CEO of OriginClear Riggs Eckelberry to talk about this situation. I mean, it's just so in the news now. How would what your company do prevent or perhaps change the situation that we're seeing in Ohio?

Riggs: Well, Jane, it's a pleasure being on board again. And I wanted to say that East Palestine is an illustration of how fragile our lives are with respect to water. Water, we can't go three, four days without water. So any time it could happen, it happened to East Palestine, but frankly, it could happen anywhere. So the problem really is, is that our infrastructure in America is $1,000,000,000,000 behind in accumulated deficit since 1961. We just haven't kept up. As a result, it gets more and more overburdened. And it's not the cities fault. They're just underfunded. The solution, we believe, is to radically decentralize water treatment so the businesses that generate all that dirty water treat their own dirty water, and it's a good thing for them, too.

Jane King: So basically what OriginClear offers is a way for an affordable way for small businesses, farms, things like that, to treat and recycle their own water so that relieve some burden off the municipalities, right?

Riggs: Exactly.

Jane King: And helps with some of these situations. And you mean you mentioned the debt. I mean, we're seeing so much government debt right now that, I mean, a lot of cities can't pay for what it takes to upgrade these systems.

Riggs: Well, let's even imagine that someone would write $1,000,000,000,000 check for water, which they're not going to. How do you do it? Who wants a sewage plant next to their home? That the giant sewage plant era is gone. Now, it's going to be small is beautiful, and the key is to downsize the big sewage systems. You see them on the Hudson River, right? Giant sewer systems.

Well, you've got to downsize them. And we have breakthrough patented technology for doing that. We call it Modular Water Systems™, it's part of the OriginClear suite, and we literally call them Water Systems in a Box™. So you're a brewer, you've got a lot of water needs. You make beer, you don't worry about waste water. So one of those things goes in the corner, takes care of it. And our new initiative, Water On Demand, enables them to do it without paying money up front. They just pay by the gallon like they used to with the city. We take over from the city.

Jane King: Yeah. So say I'm a small business and I want to use your services. How do I even start? Where does the water come from? I mean, how does it the whole thing begin?

Riggs: Okay, there's three phases to water. The first is the incoming water. Generally, it comes from the city. You're not going to dig a well usually, right? Secondly, is the treatment of the water you just made dirty. And third is recycling it for irrigation to wash down your equipment, whatever it is. Right. Maybe even make beer with, I don't know. So all that's good. Well, this is all good because we have these legendary droughts and we're not reusing the water.

You know, the Israel recycles almost 90% of its water, America, 1%. Now, why? Because like, just like our energy grid, we have an old infrastructure. So it only thinks one thing treat and throw away three and throw away it disposable economy. We need to start thinking very sustainably. Now, for investors, it's a huge opportunity. Why? Because any time a monopoly breaks up, look at what happened to AT&T. Generated MCI, the Baby Bells, even the Internet today all came from that one breakup.

So you have a vast explosion of opportunity. And we believe that's going on right now in water. Today, OriginClear is leading the pack and we have our Modular Water Systems, which are the downsized systems and Water On Demand, which is this great way of financing it for people. So they pay by the gallon instead of the million dollars up front.

Jane King: Got it. So and I'm hearing recycling is a big part of what you're offering. So it's the same the same water is just being recycled and treated and we're using it over and over again at these businesses, right?

Riggs: And this is why the businesses like it, because they don't have to pay again for that water, right? They get more than one turn out of it and they get a nice, predictable service contract, fully managed, they don't have to worry a bit about. About it. And I mean, everything is going to services, right? Why not water? I mean, we're thinking like, oh, now you got to get a water expert and you've got to spend a bunch of money. No, just to sign a contract and we'll take care of it for you. So, in fact, Water On Demand is so powerful that we are planning to let everyday investors, unaccredited investors, because I think is a scandal that only the one percent get to. I hate that.

Jane King: I know, I've always hated that.

Riggs: Oh, my God.

Jane King: I understand the philosophy behind it I guess.

Riggs: Well, widows and orphans is a good reason. But, you know, the innovation of these unaccredited it's called regulation A is fantastic. There's so much more power in having an army of investors instead of a few, you know, deep pockets because it creates just like a political campaign does better with a lot of small donations. Right. It's a similar thing. So what are the men is going to be opening up for shares in this amazing new waters as a service, I expect pretty soon. And certainly I hope by the time we talk again.

Jane King: Yeah, well, and decentralization is a big kind of theme with your company, decentralization of water.

Riggs: Literally extreme decentralization, because the only way we can scale up is by doing it locally, not centrally. Look at India, for example. They have no infrastructure whatsoever. What are they going to do? They're not going to spend trillions. Not going to happen. Okay, but how about onsite water treatment for homes, housing developments for businesses, agriculture, and now it's manageable. You can scale up.

Jane King: Yeah. So this could be international as well. So now we've talked last time about how notoriously difficult it is to invest in water and water companies. How can somebody find out more about OriginClear?

Riggs: Well, I'm glad you asked. Yeah, we are a penny stock. We've been at penny stock for a long time. OCLN is the ticker, OCLN. And what I have been doing is with my team, we've been turning this into the water industry's first incubator. What industry doesn't do incubators? I came from high tech. They sort of, you know, you build a you build a company and you sell it to the big guy. That's well, the industry needs incubators for all that technology. That's OriginClear.

And so the companies were launching, including this Water On Demand are super interesting. So yes, you can invest in OriginClear the parent and get a piece of that launch pad and now you'll be able to invest in Water On Demand with that new unaccredited thing which will come along soon. The key is to go to www.originclear.com green button. Invest now and we'd love to have you.

Jane King: I can take a look at and read everything.

Riggs: Oh, it's all there.

Jane King: Okay. Thanks so much Riggs. I look forward to our next interview and you can update us then.

Riggs: I can't wait.

Jane King: Thank you.

Riggs: Thank you.

Freewheeling Discussion

Riggs: Yeah, she's super cool. Jane King is a great interviewer. So with that, the freewheeling wheeling discussion.

Ken: That that area that you see that kind of encompasses that valley from the spill actually just comes up against where I live.

Riggs: So terrible.

Ken: Yeah, it's you know, I'm 74 miles from East Palestine, Ohio.

Riggs: Palestine.

Ken: Do we say Palestine? Palestine. Tomato. Tomato. Yeah. So it's it's. I immediately delivered an edict. Yeah. So I'm just outside. I'm probably right about just to the right of. Yeah, kind of like right there, you know, right around there somewhere. I immediately issued an edict to my wife, Amanda. When the kids want to refill their water bottles at school, they come to you in the cafeteria. My wife works in the school. They come to you and they refill with bottled water. It's bottled water, right? So it's scary because you don't have any control over the toxicity of your environment.

Riggs: Well, that's the thing, is that first of all, I mean, obviously we can't we're not FEMA. We don't have the billions. But it's clear that it's such a fragile from one day to the next, something like this could happen. And again, the secretary of transportation pointed out there's over 1000 derailments per year. So, yes, this is the worst by far, but it happens constantly. And this is why we should have pipelines instead of train and truck.

Ken: Is another, that's another conversation for another day. I agree with you. The again, love Jane, she intuitively knows like the questions to ask. But I think here's the thing, you mentioned recently people don't think about water. They don't they turn on their tap... I think now they are.

So combined with the the intensity of people genuinely fearing, and that swath of that that Mississippi River and Ohio River Valley, that's 150 million people. You know, when you, that's 100 or 100 million people. Right. So it's something that that has to be considered combined with combined with the fact that we're so rapidly approaching maturity on what we do.

In addition, you know, what Peter Zeihan talks about is the largest economic boom in American history, like bigger than post World War two. You know, our greatest, you know, the middle class was built in post World War two. That's when Levitt built the Levitt homes out on Long Island for returning soldiers, right? It was the greatest economic boom. And, you know, it's the time where your dad, Mad Men, and it created all these millionaires, right? Multimillionaires. The economic boom that we can see over the next 20 years could dwarf it. And we're literally being born we're in the birth canal right at the moment when all of these convergences are happening. It's like, it's serendipitous and I'm really excited about the timing.

Riggs: Okay. So I'm going to connect this current disaster with the fact that we're about to reshore everything we exported. China is one big Superfund site. It's a mess. What they have, they have all that phosgene and vinyl chloride, hydrochloric acid. They have it in spades. The life expectancy in China is terrible. They have poor land. The list goes on. We're going to bring all that back. And we have poor systems. This derailment was a parade of errors. You know, I'm not going to get into it, but there was a lot of reduction.

Ken: You don't have enough fingers to point them all. I agree. Right.

Riggs: The point I'm making is it's going to get much, much worse. We need to think about the next 20 years in terms of putting in place safe, comprehensive water treatment that keeps our water clean, make sure that crappy stuff isn't put out there in the rivers.

Ken: Right, right, right, right.

Riggs: And that it's recycled. So we don't keep using it all up so that basically China comes back to the US we better have our water act together.

Ken: Now, and Everett James mentioned you know your drinking systems and household water. EJ, if you treat the water where it's being polluted, it actually ameliorates or even eliminates the need to treat it at the point where the consumer is taking it into their body. So the idea is treated upstream. So there are no more downstream issues right?

Now, you combine that, you combine with the age of technology that allows this to be almost instantly globalized right, through the flow of capital, Airbnb, Uber, all that stuff. That technology was developed for us, thankfully, you know, They paved that road for us. Now you bring in the on shoring, right? Is that the word we'd use on-shoring the on-shoring of American manufacturing.

Riggs: I was saying reshoring.

Ken: Reach the reshoring of American manufacturing. Our supply lines are going to go from 10,000 miles. They can go to ten. This these water treatment manufacturers can be dotting the map. Right. They could be 20, 50 miles away right? So you're talking about a job and employment boom. And you want to talk about high paying jobs, right? The guy welding these systems makes $85,000 a year.

Riggs: And water treatment, of course, as well, is also, and by the way, they have a desperate need for, I think, something like a million jobs already due to the aging out of the water...

Ken: Silver tsunami. Right.

Riggs: So here's the bottom line is that it's just like when you upgrade your fridge, you get a much more efficient fridge, it's more green, better energy efficiency, etc.. When we upgrade all of the water treatment systems and industry in America, as it grows up and expands, it'll be better for greenhouse gases, it'll be better for energy, it'll be easier to operate, and it will be made super simple with Water On Demand. I think we are. You know, when you come ahead of a trend and you're there to receive it. It's all she wrote.

Ken: So it's like with surfing, you know, if you have a surf. But, you know, but you're sitting here waiting for the wave, right? And now you're paddling like hell and it's way behind you. But you're trying to pick up speed, right? Once that wave gets you, you might be paddling for a while. And we you know, we were paddling for several months trying to gain momentum. But there is nobody that I speak to about what we do that doesn't say, why hasn't this been done before? Technology hadn't really existed, right? Only the confluence of Internet technology, kind of fintech. Right.

Riggs: And the Modular Water Systems.

Ken: I was about to say. Right. Yeah. So yeah, you had to shrink them down and say, okay, if you don't pay, we take it away. That was an absolute key ingredient, right? But combining that with fintech, right. And now Wall Street calling what we all of a sudden, you know, we have a name, we're aquatech, right? They gave us a name, right? So we're not that lone voice in the wilderness anymore.

You do that. And literally the rebuilding of America's water infrastructure will happen at the same time as the greatest manufacturing renaissance in American history. It's like a dream come true. I keep saying we have an angel on our shoulder. This is more proof. Thank you. Right.

Riggs: I would say so. And Brian Hallinan says, "Momentum!" And I couldn't agree more because now we've catching that wave and I have surfed. You get that feeling. You get like that rise as as that wave catches you. You've got from zero miles per hour to eight or nine miles per hour, vroom! Right. And that's fine feeling.

Ken: And the power behind you, you can feel the power behind you. And yes, Keith, good fortune is preparation, right? The old adage is preparation meeting up with opportunity. The opportunity hadn't existed for a long time. The world wasn't ready for it. The technology hadn't caught up to it. But all of that in a very short period of time has narrowed. We've gone from this very wide beam to a very, very, very focused laser, and it's an exciting time to do what we're doing.

Riggs: And thank you to Coletta Sharpe for a fine, "It's always a pleasure hearing measurable solutions from the Ocean Kings." Thank you. I want to tell you guys something that's brand new today. World Water Day is the March 23rd, and we are putting together a plan to do something really cool in New York combined with this Nasdaq thing. More to come. But I think that we'll have more details next week. This we plan to have a major media presence in New York City, of the media capital of the world, around World Water Day. So stay tuned to that. We're going to have to call it a day. Go ahead and talk to Ken because he knows we have to lead on it.

Ken: We got to put on, we got to call a lib.

Riggs: That hook. I've been hooked on.

Ken: That call. Lib. Yes. And please call me. You can contact me oc.gold/Ken. I have a dwindling window of availability, especially as we travel to New York. Doing this around by the way, doing this around World Water Day is an absolute it's a, it's like aah, so and I think it'll, I think it'll give us a massive megaphone, far larger than we ordinarily would. So great stuff.

Riggs: So it's all coming together. Thank you, everyone, for being here tonight. It's been wonderful. I know it's been a bit long, but so much good stuff. I'm super bullish about the I feel so much better, frankly, Ken, about the economy after this pandemic and all that crap. I feel better about the next 20 years. Right. And I plan to be there for those next 20 years. You know what I'm saying? I'm stayin, because I'm no spring chicken, but I plan to spend the next 25 years enjoying this.

Ken: Yeah, but what you spend on supplements alone, you'll be all right.

Riggs: I know.

Ken: Between the supplements and all the other stuff, I mean, please.

Riggs: And, you know, working out with the ballet bar workouts and skiing. Absolutely. Yeah. Anyway, thank you so much, Tom Liakos, "Will the production of equipment that are being built on and put in place, we'll keep up?" Yes. Oh, my God. We're going to cover that because we're out of time. But we are tooling up. Modular Water is booming. We're tooling up for the we're going to acquire. This is the plan with that regulation A we published, we're making acquisitions. We have resources that will help scale things up. Water On Demand is key. More next week about the regulation A. Tune in. It's going to be fantastic.

Ken: Good night, folks.

Riggs: Thank you all. Enjoy your weekend. Peace out.