Insider Briefing of 26 March 2020
Helping You Thrive in the World's ONLY Vital, Scarce and Recession-Proof Market
In this Insider Briefing CEO Eckelberry shares the most recent company accomplishments, provides a focused look at the water industry legacy operating basis and trends and why though OriginClear is capturing steady business from these, the company's strategy is moving toward a faster disruptive direction. Learn in this briefing about an incredible online marketing opportunity and resource that will help any business survive today's challenging times, and about OriginClear's new investor backed water equipment rental plan. The Insider Briefings deliver you accurate and practically useful insider knowledge.
Transcript from recording:
Riggs: OK, So I’m going to jump right into it. Of course, Facebook and LinkedIn and everything are like all virus all the time, but let's take a look again. We like to go beyond the public health issues and look at the economic issues specifically as they relate to water and the water situation is as follows.
Projects are being green-lit by the cities. Our Progressive Water team
got this purchase order approved for a city reverse osmosis system
Municipal Business Is Funded
The municipal business is going to be funded, no problem. Why? Because the government is throwing money at everything and I think we will see a tremendous amount of projects green-lit by the cities. Sure enough this week, we got a purchase order approved for a city reverse osmosis system.
This OriginClear advanced purification system, build by its Progressive Water Treatment division for a Texas industry incorporates Reverse Osmosis (first unit above) as part of a larger advanced treatment system
That means you are reducing the minerals, salts and water. This is not ocean water. This is a Texas city after all, but the water that comes out of the ground is going to be brackish, high mineral, et cetera.
So, there are reverse osmosis arrays set up for this and also, we sold as part of that a clean in place membrane cleaning system so that all those reverse osmosis membranes don't have to be sent out for cleaning and refurbishing which is easier all around. If people can afford it, it’s a solution. Well, that is a great sign.
From The Old To The New
I am going to back up just a little bit. In every industry where we have had a move from the old to the new, we have had tremendous disruption and upset. For example, hotels to Airbnb. Now, there are still hotels, right? Hotels exist. Way back when mainframes went to PCs, networked PCs and so forth. Well, we have still got mainframes. Landlines to cell phones. Landlines still exist. So, it's not that these old businesses go away. In fact, here's a crazy thought. Do you realize that most of the cloud storage in the world depends on these antiquated 50-year-old technologies?
One company makes these tape drives and all of the data that you are saving in the cloud is being saved on these tape drives in deep archives. There is the stuff you are using all the time which is on the big disc drives and memories and so forth, but then the stuff that gets sort of older and older, it gets put eventually on these tape drives, can you believe it?
Right in front of us is great new technology. I've got my iPhone which has more power than a whole mainframe computer used to have and so forth. This is a recurring thing that happens which is the old does persist. Now, is it growing anymore? No, it tends to be static, but it is still a huge market.
Manufacturing Sales Reps
So, what we did in December, January, February, March of last year, of 2019, is we went after recruiting a number of manufacturing sales reps. These organizations, that often have 30, 40, 50 people on the phone, they go after a lot of that municipal business, large companies, municipal, the big stuff.
Why? Because big stuff gives big commissions and who wants to sell a $50,000 deal when you can sell a five million or a 20 million dollar deal. So they tend to specialize in this stuff that is higher ticket. We started working with these and there's always attrition, the ones that really produce for us is maybe half a dozen, but they really have started to feed us a lot of businesses.
OriginClear's Texas subsidiary Progressive Water Treatment. http://www.progressivewater.com/
Beneficiary of Government Business
So here was a city deal and it's a beautiful thing. Progressive Water Treatment™, our Texas manufacturing operation and increasingly our global headquarters is the beneficiary of a lot of government business which is a good thing. This is what we call a base load, a base load of business that is going to come in and pay a lot of bills, but we have a major problem with these equipment sales. Years ago, I learned when we first got into the water industry that equipment sales are low margin.
Speed & Margins
I'm like, "How could this be that margins are so low?" Well, the margin is consumed by overhead, is consumed by endless meetings with consulting engineers, endless meetings with the permitting authorities, back and forth and then somebody comes in and tries to take the client away and you have got to do stuff to bring it back and this goes on for months and then you get the deal and then of course, it takes months to do.
Back in January of last year, we announced an $800,000 project for a university water cleanup system and it was still being completed and commissioned in October. So, these are very long cycles and that tends to create a very slow-moving organization. This is why the water industry has been slow.
So we've always been looking for ways to speed it up because I came from high tech, I understand how high tech works and it is all about moving fast and disruption and speed of cycles, So how do we do it? We've really, I think, solved the problem.
The Facebook Ninja
Before I go into the solution, which is becoming more and more exciting, I wanted to mention something really amazing. We have a friend, my personal friend - Manuel Suarez, he is known as the Facebook Ninja, and he has become amazingly famous in the last 24 hours.
He’s known for what is called The Facebook Masterclass. He has a 60-man agency in Florida and they manage sales of a $2,000, 38-lesson Facebook Master Program.
"Manuel Suarez Facebook Master Class teaches you everything about Facebook, Amazon, all that good stuff."
It teaches you everything about Facebook, Amazon, all that good stuff. Well, the big news yesterday was, of course you may have heard about it, but he decided to give away that program for free. No strings attached, nothing. Just, it's free.
The “New Starbucks”
Why did he do it? Because he said, "Listen, what is going to happen in this economic crisis, the way I see it is, we used to go to Starbucks to hang out in Starbucks and that was our third space. Home, work and then Starbucks. Well, now the third space is social media. It's Facebook, LinkedIn, WhatsApp, et cetera."
What he predicted was that digital marketing is really going to become essential to all companies and so he made his master class free and that is a brilliant thing because it's going to empower so many people to really take advantage of digital marketing. Well, he said as part of that, our paying clients are going to get the extra, the more, the new stuff.
We have long known this in the high-tech world where you have an earlier version of something and that is what you give away for free, but the newest stuff, that is what gets paid for. So Manuel, has done an amazing thing for the world by giving away a $2,000 product and by the way, sacrificing a tremendous amount of current revenues.
But by exercising creative destruction, he has actually gone ahead and created a future market from this install base. I strongly recommend that if you are interested in digital marketing and if you want to know more about it, go to manuelsuarez.com and there is an offer there to get it for free. Absolutely free, no strings, but you have to do it. That's the bottom line and I admire Manuel tremendously.
"I strongly recommend that if you are interested in digital marketing and if you want to know more about it, go to manuelsuarez.com"
Now, why do I mention him? Because Manuel Suarez's agency, AGM, is the agency that is helping us really boom the organization. He has a link for these free things which is manuelsuarez.com/expansion. Manuel is so bought into our success that he has really personally invested a lot of himself. In fact, he has agreed that he will be joining me next week on the webinar and we will be co-panelists.
Digital & Water
We will be discussing something very, very exciting which is digital and water, digital and water. How does that work together? That's really fascinating. Obviously, water isn't digital, right? But there are ways to use the digital marketing channels to get deals done. Well, I don't know about you, but I don't do many million dollar deals on Facebook or LinkedIn. That is not how it happens.
So, the key then is how do you get your business out there and get many hundreds and ultimately thousands of deals done rapidly? Well, just do like what Manuel did, don't charge for it. Now, I am not saying give it away for free. This is actually hardware, it's got to cost something somewhere but this is how we are developing the whole offering and this is super exciting.
So the first step is to develop cool solutions to a problem, right? That are inexpensive, elegant, strong solutions to a problem. I am not going to talk about a couple of these because it's still confidential, but I'll talk about the one that we have talked about a lot before and I'll show you how that fleshes out. The trailer park we've been working with in Alabama has had this problem. These trailer parks, tens of thousands, maybe more trailer parks, dump their poop in a sewage lagoon. Literally like a pig farm. It is beyond incredible.
Municipality Says No
So naturally the state department of environmental protection, the Alabama, EPA basically came down and it said they were trying to sell their property and they said, well, before you sell it, you've got to deal with this problem. And as they tried to connect to the city, it was only going to cost $500 to connect to sewage, the city would not do it. The city would not accept to connect a residential complex to the sewer.
I think it is a scandal myself because why - trailer park is trash? No, these are good people. They pay their taxes, so why shouldn't they have services? But the fact is that the municipality refused and so this trailer park operator, Steven and Claudia, good friends of ours had to find a solution.
A complete line of factory prefab modular water treatment and conveyance products. www.originclear.com/modularwater
Dan Early’s Elegant Solution
They came to us and Dan Early came up with a brilliant, brilliant, brilliant solution, which is very simple. Imagine this lagoon and let's say it is a quarter of an acre and is sitting there and it's gross. You build really what is like a diving platform, like a floater that goes out in the middle of that lagoon, and underneath it is a whole bunch of what we call biofilm, which is this nubbly stuff that looks like coral.
Well, acts like coral, looks more like a ceramic film, but it acts like coral because it has got all these surfaces and the beneficial bacteria basically eat up all of the poop and you get a dramatic reduction of ammonia, of phosphorus and increase of oxygen take up capability. In other words, the ability of the pond to eat things up using oxygen.
Those three things basically solved the problem and now the water in that pond can be sent to the city as untainted water. It has still got solids, but it is untainted. It's not messy. So that is a great solution.
Financing “The Bobber”
We call it the bobber. That is our term for it. Now we sent a quote to them, here is the price of the bobber and they didn't come back. Once again, long sales cycles of equipment. But this time we didn't do it that way. I had a conference call today with Steve and Claudia and we were doing screen shares and with us was Michael Mann was our VP sales.
We said, you know what, that bobber, don't worry about it. We'll take care of everything. We will deliver to you a working system and all you have got to do is start paying by the month. It's going to be first, last and security. And then you are going to have a short term rental of this thing. It is going to be a bit more than the usual but it's short term. You can walk away from it at any time. You can say, “Take this thing away.”
We Own The Equipment
What's great about this is it is a rental. In other words, we don't give up title to the piece of equipment. We own the equipment. It's like a TV rental. We all know that you shouldn't rent your TV, you should buy one. But there are still people who rent TVs and they pay a high premium for that. Well, it's a similar model.
So, we take the bobber and it has a given price and it is not expensive. That is the key, it can't be expensive. This thing is, I won't say exactly, but it's between 50 and 100 thousand dollars. We take that and we say, okay, Steve and Claudia, you can rent this and we will deliver it fully working.
We will deal with all the delivery issues. We'll make sure it is permitted and all you have got to do is pay three months. First, last and security. Just like renting a house and it's month to month. Very simple. How are we protected? Well, it is ours. We can come in and grab it at any time. It's our property. We never give up title to it.
Assume The Rent or Take it Away
All right. Now they're going to sell this thing [trailer park]. Let's say that they said, well, what about the next owner? Do they get title? I go, no, it is ours. Now the next owner can either assume the rent or they can say, take it away. That's their problem, right?
We take it back and we refurbish it. We put it out again to the other trailer park because, guess what, in the middle of the conversation Steve started talking about all the other trailer parks in his town, this town, of Troy, Alabama and he started saying there are so many others that have problems with water.
So plenty of demand for this. If you have these machines, well, they're not really machines, what they are is very simple. A floater of basically buoyancy tanks and a platform like a diving platform and a bunch of material underneath that looks like an iceberg and a pump that draws 20 amps. So, you have an extension that goes back to the circuit breaker and it draws 20 amps and that is it.
That thing is easy to refurbish because you just basically replace the biofilm. No moving parts. It's a very low-grade pump. So, this is very low-tech stuff and now you have a growing fleet of these, you are constantly putting out on a very profitable basis.
Who Pays For The Bobber?
Well who pays for the floater? Who pays for the bobber? And that is the genius. Here is what we realized is that investors will come in and they will supply that five figure, high five figure amount as an investment and we will take a percentage, a small percentage, for managing the whole thing. So, they don't have to worry about a thing. They just put in the money and we take a percentage for managing it.
Also, if the thing eventually gets sold, I like giving people an option to buy it out, because you don't want them stuck with these endless rental payments, right? So, one day they say, “Listen I want to buy the darn thing.” So you let them and we share that too with the investors and everybody is happy.
Now that works. We have people who are very excited about doing that already. Now we could cash flow that. We could cash flow that high five figure amount. We could take care of it ourselves but let's make the model work in a way that we can scale it up, that we can involve investors, right?
Because what's the toughest thing in this new market? There's a huge $2 trillion giveaway by the government to everybody. Everything's 0% or very low percentages, right? The SBA loans that are being handed out or are liars loans really, just kind of sign there and you get it at 3.75%, which is a great rate for borrowing.
But guess what, if you were trying to make money from your investments, it's really hard to make 10, 20% a year and we can show how you can do that now with those investments. So we got people excited about that.
Rental Property - Not Great
By the way, what is also happening in this market, despite the bailout, landlords are going to have a hell of a time with their rent rolls. People are going to say, “I'm not paying.” Do you think the government is going to evict these people? No, no, no. There is going to be forgiveness. So rental property is not great. Fine, we are not going to do any of that.
A Profitable Low-Risk Investment
All we do is supply a piece of equipment. We are supplying the water equipment, basically connecting investors with these very profitable, low-risk things because the investor will have a security agreement against that piece of hardware.
So as a piece of hardware is, call it $75,000, it's not exactly the price, but let's say it's $75,000. Okay, invest your $75,000, it remains the property of OriginClear, the investor has a UCC-1, a universal commercial code paper against that. So, the investor can recall it anytime. It is not going anywhere, it's staying under our control.
We put it out and we rent it out and we have a fleet of these over time. That turns into a business of cleaning up the trailer parks and solving their problems. By the way, they have other problems related to water, but this is the number one.
A Rebate Plus Rich Stuff
Okay, so how does this connect to people investing in OriginClear? And that is where it gets really exciting. We have, as you know, our private placements, where people come in - they have to be accredited, and they invest, let's say $100,000. We allow people to invest less, but let's assume a $100,000. Well, on that $100,000 if you put that in, we as a company will give you a rebate of $15,000 on your first [UCC-1 secured, water equipment] investment.
Now, that $75,000 fictional investment that I'm talking about, you’d only come up with $60,000. We will carry the other $15,000 if you [previously] invested the $100,000. And by the way, that hundred is full return of principal, 8% every year plus a stock grant.
You're doing great with that investment and now you are getting this 15% bump from the water [equipment] investment in addition to the very rich stuff [full principal return, 8% dividend plus stock grant].
High-Yield, Asset Backed Deals
I’m looking at what Ken Berenger wrote just now, “What if you had a guy who could provide you insider access to incredibly high-yield asset-backed deals that could return 10 to 20% annually? Well, now, you've got that guy. Now, the major differences between this and real estate is there are no vacancies and there are no delinquencies. This is superior in every way.”
Thank you, Ken. Ken and I have been designing this at high speed. Bottom line is that we believe we have found a way to scale up our water equipment deals. How? By not charging for them upfront, and I am not talking about somebody doing, like the solar deals, that are 15, 20 years long. No, no, no. This is month to month. They deliver you the thing, it goes to work, stays in there, and it keeps working. 90% of them will just leave it there.
Maybe they will come to their senses one day and buy it out, which is great too. So, that is a win-win for everybody because they are not paying upfront. We are not selling. We're prescribing. We are coming in there. "You need this solution. It's fully approved by the State of Alabama." Jump in, plug it in, you're off and running.
Cross-Market Applications – Becoming The Vendor
So, that is also being applied in a couple of other spaces, and I'll just hint to you the other space, which is really exciting. This week, we had a meeting with a licensee in Wisconsin, going after all the dairy farms, and sure enough, this licensee has a problem. How do we get people to put up $500,000 for a zero-waste solution that creates fertilizer and clean water? Well, guess what? That's not what you go for upfront.
You go for the simple solution of throw a buoy in the lagoon, and it will stop your ammonia pollution, which is the number one problem and your phosphorus levels, and it is also going to restore the oxygen levels in that lagoon. Now, the state EPA won't be all over you. You buy time, and by the way, you don't have to pay for it upfront. We'll take care of it. Just rent the darn thing.
So, now, you are putting these things in one after the other. Bang, bang, bang, bang, bang, and there will be the upside of, down the road, that dairy farm will be ready for the big half a million dollar upgrade, financed, whatever. Not a problem. We are not in a rush, and we will get the business because we are their vendor. That's the key. We are their vendor.
I want to answer a couple questions. We have a question from JL:
Riggs: No, no, no. This is not a royalty deal. This is a deal where you are renting the equipment, okay? Now, the percentage we are getting is not a royalty percentage. It's an operator's percentage.
Here is how it works. The end user, the trailer park or the hog farm or whatever starts with first [month], last [month] and security [deposit]. So, let's call it for the hog farm. It is going to be more than, say $5,000. Let's call it monthly it’s $5,000 times three is $15,000, put you into the solution, and all you do is pay by the month. Return at any time, no liability. It remains our property. The 5,000 is gross.
The Numbers Are Humongous
We think the number is going to be 25%, a quarter of that for our work. We do all the work. The investor just takes 75% of the money. When you put that out in a spreadsheet, the numbers are humongous. They are fantastic, so everybody is happy.
The dairy farm gets its problem solved not for half a million dollars where they have to go borrow it or go to their executive committee and get approval. No, they just put it on their operating budget. Now, guess what? The manure lagoon is no longer a problem, so that's wonderful.
We maintain these things if this 25% number holds, which is a pretty good number. It's great for us because we make it on every single monthly payment. When the units come back for refurbishment, usually, the security deposit pays for that refurbishing.
When it's not being rented, let's say the trailer park or the hog farm buys it out in the end, well, they'll have to continue to pay us for maintenance. They'll be on a maintenance contract. We'll replace the biofilms and so forth.
Not A Royalty Model
So, that is not a royalty model. Here is the problem with royalties: Number one, it is very hard to get paid. Let's say you are supplying 10% of a million-dollar system. Are you going to get paid a royalty on the million-dollar system? No, you are going to get paid on the 100,000 portion of it, but is it really 100,000? You get in fights with licensees about which part is 100,000? And then [number two], it's only 5 to 8%. Here is the third problem, hard to collect.
Which is why we kind of de-emphasized China in the recent months. You haven't heard much about China. We kind of pivoted to India because India has the rule of law, and they are wonderful people, and they give, give, give. I love the Chinese, but they are not about give, give, give except to their families and their community. They're not about give, give, give to the Americans.
The Indians have given us months and months of work. They are wonderful. Every single Indian partner that we have thinks only of giving to us, and of course, we give in return, so, very happy. Now, a couple more questions.
Riggs: Well, that depends on what you are talking about. We have innovative solutions. This solution I was telling you about, the bobber, depends on very specific proprietary material that we have the inside channel on. I can't even get into what it is, but basically it has tremendous surface area. It is a ceramic that has tremendous surface area.
That one array under the bobber probably has as much surface area as the entire coastline of the Eastern seaboard. It's like 2,000 miles of surface area all in this one thing. That means it is extremely efficient. We have an edge there because others can't do it.
Now, others have different approaches. For example, aeration. In aeration basically, you get air into it. You've seen these fountains. Fountains is a great way of doing it, but it is not complete. It doesn't solve the entire problem. It does not, for example, nullify the ammonia.
The ammonia pollution is a big, big problem. I'm not going to get too deep into that, but that hopefully answers your competitor question. Furthermore, nobody is giving these zero-money upfront deals, these rent the equipment things. Nobody's doing that. It's brand new.
A NASDAQ Listing?
Riggs: All right. I'll tell you very quickly. We could get listed on the NASDAQ today. Why? Because we have backers who are holding paper. They are holding debt of ours that they are willing to turn into equity. They would, as we say, securitize it, and that then turns into the shareholder's equity required because NASDAQ requires, first and foremost, that you have at least $4 million worth of shareholder's equity. The stock price, that can be handled, and also we have got plenty of shareholders, but the problem is we'd get there, but we wouldn't stay there.
We have a plan. I can't promise it because this is a public forum. I can't promise we'll get there, but this is my personal ambition, and I believe we can do it, is to get a head of steam and get on the NASDAQ. What will it require?
It's not going to be about doing onesie-twosie deals with municipalities and so forth. It is going to be done by ramping up these white knight deals where we help people out, and all they have got to do is just start paying their monthly fee. That, we believe, is a huge model.
How It Works
Here is how the domino works. An accredited investor comes in on the front and invests in a private placement. They don't have to [invest], but they get that 15%, $15,000 down [on a water equipment investment] from the 100,000, right? It's a less percentage when they invest less, but they can still do it.
Then, they get access to the [water equipment] investment. The investment itself is very, very rich. They get given the chance to look at, what about this one? What about this one? What about this one? We keep presenting them with first looks at investments. They eventually do it. They make money. They are very happy. They will do more. If they succeed, everything's great.
We make our money, and here is what happens. We're not greedy. We are not trying to take half of the money. We think that a quarter or something like it is a fine percentage for taking care of all the noise. It's not a huge one, but we will ramp it up.
We can ramp it up because we don't have a long sales cycle. This is a short sales cycle, and word will spread like wildfire just like Manuel Suarez is giving away his masterclass for free. Again, we can't do things for free, but we can take away that capital investment upfront, and we don't have to stick people with a big commitment on the backend. So, we think that is amazing.
The key here, and this is again Ken [Berenger] telling me things that he thinks, he and I are on the same wavelength for sure:
Ken: “The key here and what sets us apart is most traditional water companies still install water systems as construction projects. We have productized so that we can repossess and reposition because it's modular. Remember we’re a Modular Water Systems™ company. The stuffs on a trailer, prefabricated in the factory. It gets taken out, dropped in, plugged in, goes to work. Oops, you don't want it. Here comes the pickup truck, plugs into the trailer, takes it away, not even a fifth wheel trailer. It's small. So that's a beautiful thing.”
Regulation A Offering
Riggs: I wanted to cover a couple more things and to circle back and that is that we are expecting very soon to be effective on our regulation A offering. Now, why is that great? Again, I'm not marketing it in this presentation because we are not effective, but I believe we will be soon and it's the best thing I can say. What I can tell you is that this is a great vehicle for unaccredited investors.
You have been hearing all about the people who have $200,000 a year and expect to keep making that or where they are making 300,000 a year with their spouse or they have a million dollars net worth not including their home. We know how it is out there and a lot of us just don't have that money. So how does this work?
Well, you can be an unaccredited investor. What we give you is the chance to invest in what is basically a bond. It's a $25 special share, think of it as a bond, meaning it is a company obligation and we pay 10% per year, payed cash every month through direct deposit into your bank account for as long as we hold the paper or redeem it, whenever we want. How do you get out? Because again, redeeming is at our option.
Well this preferred share, this bond will be listed on the stock exchange on the over-the-counter stock exchange as OCLN series O, or OCLN series M I think it is. So, you'll see our regular stock and then you will see OCLN series M.
Stable Price Tendency
Now will that one tend to go down? No, it won't. Why? Because it pays that 10%. Let's say it goes down to 12 and a half dollars. Well now that that note is making 20% if you bought it for 12 and a half dollars, right? So, it will tend to keep the price stable right around $25 which is what bonds do. They tend to be stable right at their principle price, and then people then have the 10%.
Now, why is this so important? Because we know that 10% dividend, stable dividend with a possibility when we go to list it on the stock exchange of trading it, and again I'm not making promises, but that is our intention. Well, then you have got something that you are making really good money because nobody is doing 10% yield on anything that is backed by corporate good faith. Everything is going to go to 0% and you are not going to make money from your certificate of deposit in the bank account, you're not going to make money on anything.
US Dollar Devaluation
The dollar, by the way we are giving away $2 trillion to save people, and I'm glad we are, I'm not against it, but it's going to devalue the U.S. dollar. What does that mean? It means that things in America are going to become more expensive. Your dollar is not going to go as far. Sure, you'll get bailed out and it is a good thing, but now you will be running in place even more.
It will really help to have something that makes 10% reliably and we believe you will agree once you see all of the reasons why in our offering, when it comes out, that this is a reliable way to go. We have been in business for 13 years, we have been public 12 [years] and we know how to stay in business and furthermore, we have lots of successes and it's our plan to continue.
Contact Investor Relations
So I'm going to wrap it up because again, and I'm not supposed to go much beyond half an hour, but Ken Berenger is the wisest man I know and he also, fortunately, does not have a lot of ego, so if you're able to do the accredited investment, dial (323) 939-6645, (323) 939-6645 and he is at extension 201. He will tell you about these inexpensive five-figure investments and how you can have access to discounts against them by investing in our private placement. That's number one.
Number two, if you're not accredited, stay tuned because I believe that next week I will be able to talk about that openly. That is not a prediction, it's a hope. I have to be so careful what I say, but we believe that the unaccredited investor will have a phenomenal offer that is very simple and very rich because it's that good old 10%, the only 10% in the market today.
With that, I'm just going to do a quick check. Okay, Eugene Greenstein, I'm going to give you quick, quick responses here.
Riggs: Zero. Zero impact. The bond is not OriginClear stock. It is the special $25 unit. $500 minimum. You can do, for example, a hundred shares and that's $2,500. And they earn you 10% and that itself, all by itself, is not stock, so that is wonderful. The second thing is from Galaxy Note10, I've got:
Galaxy Note 10: “Are the original stockholders still in the game with those OCLN shares?”
Riggs: Without getting into specifics because we're short on time, we have made sure that our early angels, the people that carried the load all these years, if they were accredited, and unfortunately we've not been able to help unaccredited investors, but if they were accredited, they were able to basically be preserved and we have their loyalty and I personally am super happy that we were able to do that for them. From here on out, it's not going to be about preserving a value. That is a defensive thing. We are going on the offensive.
Next Generation Water Company
I believe that OriginClear can be a major water company, as I call it the Next Generation Water Company™, because of this innovative business model tied to elegant proprietary water solutions and we can make a difference. I don't want to sell 12 systems a year that are a million dollars.
No, we want to do deals where we are a funnel for 100, 200, 300 inexpensive, five-figure deals that make investors very happy and that solve real world problems and get rid of poop in trailer parks, my God, or these horrible animal farms. Do you realize that 2,500 cow dairy farm puts out as much poop as the entire city of Miami with 400,000 people? That is a scandal in modern America. We are going to handle it. That is our mission.
Next Week’s Webinar
Next week, please join me for an amazing webinar with the God of digital marketing, Manuel Suarez, who we love like a brother because they're doing wonderful things for us on digital marketing. We're working out ways to market this incredible structure digitally. Investor backed real estate rentals - investor backed water equipment rentals is the new word of the day.
Is This Patented?
JL wants to know:
Riggs: Yes. We use a mix of off the shelf and patented, but the "bobber" is patented and it is not our patent. It's a patent of a partner that we are in a close relationship with.
Again, I have gone way too long. Any time you go to originclear.com/ceo, all of my briefings are available in audio and a full transcription with pretty pictures and everything, exciting times.
I wanted to thank you all for being here. It has been a great briefing. I'm super excited about this model, combination of stability for our existing business through the municipals and the growth through these-investor backed equipment rental businesses. I'm super excited and I think that we're going to do the equivalent, just me saying, of an Uber on the water industry because we're going to completely undo their capital problems.
Thank you again, all. It's been wonderful. I appreciate it and I'll see you next week, okay? For the big webinar. Thank you.
Register for next week’s interactive webinar Briefing: HERE
SAFE HARBOR STATEMENT
Matters discussed in this presentation contain forward-looking statements. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our history of losses and our need to raise additional financing, the acceptance of our products and technology in the marketplace, our ability to demonstrate the commercial viability of our products and technology and our need to increase the size of our organization. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason except as may be required under applicable law.
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