People deserve a self-controlled supply of pure water. So how can we help them gain access? In this briefing we demonstrated just how Water on Demand can do so! And why the exodus of "Ex-Urbs" is booming off-grid housing developments… Could this exploding trend be our own "killer app?" Find out in the replay!
Transcript from recording
News Show Host: OriginClear is a company that focuses on wastewater treatment.
CEO OriginClear — Riggs: And hello everyone. Welcome to the Water is the New Gold CEO briefing.
Riggs: Our mission is to transform the water industry.
OriginClear Chief Engineer: Decentralization offers us this opportunity.
CEO Manhattan Street Capital: The plan that you've built here is super impressive.
Investor: The world is experiencing a crisis in regards to water. It's a great opportunity that you're giving us investors.
Riggs: Decentralization of water treatment means that we no longer need to establish giant water treatment plants.
OriginClear VP Development: Let them fight over the 20%. Let's work with the 80% that's untreated.
Investment Advisor: Over 21 thousand unique alternative investments.
Riggs: Three million jobs in the US alone.
Investor: Making it easy for the regular investor.
Riggs: All the old trends just accelerated.
Investor: It's lucrative and fulfilling.
OriginClear Chief Engineer: The vision I've got is to standardize these products. Design, Build, Own and Operate.
Riggs: We have 65 people in the room.
CEO AGM Agency: We've got an important message to give to the world.
CEO PhilanthroInvestors: We can put a guy on the moon but our water is horrible.
Pool Cleaning Technician: Recycling all that water, it's a huge impact for the environment.
COO OriginClear: Bringing new infrastructure in drives the growth in America.
Riggs: That's a critical part of the picture.
Progressive Water Engineer: It's a twin 125 gallon per minute RO (reverse osmosis) system.
Riggs: I don't think we're talking about a 10 Million dollar fund, we're talking about a series of 10 million dollar funds.
Overseas Partner: The opportunity itself is very big.
International Investor: You want to live? Take care of the water.
Investor: Not too many CEOs do a weekly briefing and are willing to talk to individual investors.
Well, hello everyone and welcome to the OriginClear CEO briefing. And I notice that I'm showing a little bit of my of my slip here. See that? I better fix that. Otherwise you'll think that I'm using a green screen, and that wouldn't be good. Oh, no. There we go. All right, that's better. So, everyone, it's the first May briefing and it is so exciting. You're going to love every bit of it. And here we go. Welcome aboard, everyone.
So Water on Demand, clean water available for us all? And it is, of course, the May 5th briefing now clean water for us all. That's got a very special meaning that I can explore in this briefing, and you'll see exactly what I mean in a little bit.
But of course, before we move on, we're going to go ahead and tell you the basics, which is we always want to qualify our statements, but we do our very best to correct them as soon as we know what's going on. And I think we do a pretty good job of predicting the future. All right.
So if you noticed in Facebook or in in today's CEO update that your CEO yesterday was patiently signing a series of certificates and letters, 500 sets. And these are very, very interesting.
Let me show you a zero in on the certificate here. So the person receiving this and who received it was all of the investors who have invested privately. That is as accredited investors in the company and this person has first rights to the spin off bonus issuance of $20 million in anti-dilutive shares.
Up to $20 Million
Now to explain this, I'm going to go to a chart that was created for the Manhattan Street Capital portal, which, yes, it is being launched very shortly. So this shows the Water on Demand offering. On the left, you have, of course, that 25, the investment in water equipment, which is you get a royalty, 25% payment of these profits enforced by your uniform commercial code rights on the water assets that are in there. And also that founders share, which is what I just showed you.
So up to $20 million of investment. Remember, we've got we've raised over $2 million. So roughly 17 and one half million dollars to go. And of course, the two and half million dollars that have been invested already automatically get this share that there's no question about it.
What Anti-Dilution Protection Means
And these are dilution protected. What does that mean? That means for as long as you own preferred shares, your relative portion of Water on Demand Inc is protected. Once you convert to common, then of course it's just common stock with no further anti dilution. Now it's granted in proportion to investment. So if you were to invest $20 million, you would get 10% of Water on Demand Inc. Now notice founders share ratio will reduce over time. What does that mean? That means that it's just like the book Animal Farm.
Some people are more equal than others. If you're an early bird, you get a, let's say one for one, but maybe a bit later it becomes 0.9 for one. Right? And that's really to incentivize early investment and to get people in as fast as possible. Ken will have further information as we develop that table. We have not issued these shares yet with the board, as you saw last week when we when I showed you the board consent, the board has approved this, but we are still in the middle of putting it together with all the certificates of designation and so forth.
So get your best ratio now, now. Plus, the shares which convert to 150% of your investment and for a short time 165%. Remember, that does go away because that was a special ratio for normally for people investing $5 million or more at a clip. And we are have been giving it to everyone that will go away. So then it will go to 150 and 140, 130, etc..
So to recap, you'll get royalties on your entire investment for the duration of the Water on demand fund that you get put in. And when it gets wound up, then you get 25% of the net profits coming out of the winding up of the fund. You'll get this pro-rata ownership in Water on Demand Inc with anti dilution provisions and this is only for people in this offering. And then you get the common stock which converts at 1.5 times your investment or actually 1.65 times right now, plus double warrants for five years at $0.25 each.
And that is a pretty intense package. But you notice how this is basically what we call the series Y offering with the combination of the series A allocation. So it does some wizardry to combine stuff because we did not want to change the series y offering that's been in place. We simply packaged it in a way that really puts the emphasis on what we think is the real value, which is the Water on Demand ownership and income.
So all those went out today to the printers, all signed and every single existing investor will get one of these. And what will happen is this is a reservation certificate. Those who invest will then get a beautiful signed certificate of being a founding investor in Water on Demand. And you will be proud of that. So you don't have to wait to receive the priority mail. You can go ahead and contact Ken now. All right. So this is at the top. You see income plus assets plus equity. That I think is the magical trio.
Clearly, A Time of Change
All right. Now let's take a wider look at what's going on in the world. The economic picture is pretty intense. I'll just show you one stat. This is freaky. 34% of retailers could not make rent in April. Oh, my God. That is so meaningful because it's not just landlords that are in trouble. It's also, of course, jobs, consumption is down, etc., while at the same time we have inflation. So this is a very you know, it's sort of a perfect storm.
Prices going up while demand goes down. This means that you'll see a lot of drop off and is much, much more we can show. I mean, you've seen in Germany huge rises in producer price index and so forth. Just I know that, my wife has a diesel and in Florida, she was paying $5.69 a gallon yesterday. In Florida, never mind California.
The question is what now? What now indeed? Well, I think we have to think outside the box here. We have to think, okay, what is going to replace a model that is clearly falling apart and it's falling apart for a variety of reasons? We won't get into it. But basically we've had a lot of hands in the till, a lot of and this is Republicans and Democrats alike. Everybody's been flinging money around for all kinds of purposes, wars and entitlements and this, that and the other thing and fraud, you name it. Right. But the bottom line is, is that we have a pretty broken conventional system.
So where do we go now? Well, a few days ago, in fact, this weekend I was noodling around and there's a very good channel called Jerm Warfare, Jerm, that's the name of the guy in South Africa. His name is Jerm and he fabulous, fabulous channel. You can get him on jermwarfare.com, but also you can get him on Telegram. And he featured a very interesting person, Robin Monoti and the piece there that was done and this is one of the pieces that Robin has designed to give you an idea of the man's excellent taste and his he's talking about bio urbanism versus the smart city. What is that? What does that mean?
Well, explains it a little bit. So he is an architect. Of course, he has made a film. He's talking about bio urbanism, which is basically self-sustaining, clusters of communities. Right. And it's already happening naturally. People are tending to move away from the big cities and towards less expensive places, places where they can have maybe better access to resources, produce, etc. than us. So dependent upon technology, which I think we're going to find with the predicted cyber attacks that. This kind of Zoom session may be very hard to do this fall.
So bio urbanism is basically a form of community surviving by getting together as communities. The importance of local produce, why parallel societies matter and returning to traditional tools and utilities. So to illustrate what he's saying, I'm going to play a short excerpt from the video on this blog and feel free to watch the whole thing. It's truly fascinating. It's amazing, man. But let me go ahead and tee that up. And I think you'll be very interested in what this is about.
Start of video presentation
Robin M.: And so I think a parallel structure at this stage is the form of resistance that is more likely to lead to a positive outcome than a full on let's go and in a way serve them, which is let's go and break a few windows of a few shops so that they're scared of us. No, they're not going to be scared of you if you do that. Actually, you know, either either you are completely organized at a level that you've got very big elements of society backing you. And that would probably be the police, the military, the judiciary, or, you know, you're just going to be ignored.
So you might as well create an alternative, an alternative system that is the foundation of what I see as being the future, maybe not the short term, but the mid to long term future. I see it as as one in which we do not believe the top down centralized form of control, government and rule. Now, you may call it Facebook, you may call it European Union, you may call it CIA, you may call it Microsoft, you may call it any of these things. But I think we I believe we will come to see these as become obsolete. And the why they're obsolete is because what has happened and what is happening now is the is the swansong of that system.
Robin M.: It may even win in the short term. It will never fully win because there's enough of us that will resist. We may never fully win. But the the belief, the societal belief that we give into the system, which is similar, is what you do with fiat currencies. It's a system of belief. This will not last for so much longer because the lies ultimately will come out and enough of society who is not benefiting directly will say enough of that system. The new system needs to be local. We need to know each other face to face, not just through clicking a button and similar in elections. How long can we believe an electoral system in which it's all done centrally and digitally? We've already lost a lot of belief the recent events in digital elections.
So there's almost we almost need to find a different way, which is a face to face, bio urban way of living. We have to have local health services where people are locally accountable and where people make local decisions. And and in a way, that's what happened when I talk about the parallel structure. That's what happened in Italy when the 100 doctors through WhatsApp started WhatsApping each other,You know, "I treated my patient. I gave my patient this antibiotic. I gave them this other other medicine. I give him that, and it worked."
End of presentation
Riggs: Well, it's such a fascinating interview. I was actually riveted to it until I realized that he it was the end of the excerpt. But he goes on to make some very good recommendations at the end of this hour long interview, which I won't get you into, I strongly recommend going to it and simply go to, as I was saying, the Jerm Warfare website and www.jermwarfare.com and they, that is very very interesting.
Water and Self-Sustainability
But there's a reason why I'm playing this for you and that is how it relates to water because we have to think about water in relation to survival water and self sustainability, because already we know that there's real trouble with water.
Water for Humanity
We've got here's my little position paper on the subject, Water for Humanity. Now the thing is this, many, many people tell me how much they care about water, but they don't much care about city sewage. This idea like, yeah, yeah, I guess. So what they really care about is their own water, the water that they are trying to drink and use. But because we're not purifying the water, because there are droughts, because of the waste, there's more and more scarcity. You saw this chart a while ago.
Lowest Water Levels
And here this just came in today. The Colorado River reservoirs are so low that the government is going to hold back water in the Arizona area and Lake Powell, instead of releasing it to Lake Mead, which is the Hoover Dam.
Well, this is catastrophic, really. It's the water levels are at the lowest point since the lake was filled in the 1960s. It's not going to get better. So things don't they either get worse or they get better. And if they're going worse, and your not doing anything about it, they'll keep getting worse. Is sorry is simply what it is. Right. So we know that we have a problem and we have to do something about it. And unfortunately, what's being done at the central utility level is not enough. So what do we do?
Well, the water rates are rising fast, but these city water systems are not funded well. And we live beyond the network. Increasingly, people are living, they're moving to places that are not near sewage or that are in a rural sewage system that is completely overwhelmed. All of a sudden, all these people move from the city and there they are. And so this migration from the big cities, which are not self sufficient to rural or semi rural areas where you can be more self-sufficient.
And as Dr. Monoti said, where you can be a community, rely on each other, know each other. One of the reasons that I moved to Clearwater, we moved the company is because there's a whole community here of people who are here to help each other. Right. So this is going to be more and more the rule.
So what our mission here is to assure clean, pure and abundant water for all. Serving the needs of people. Now they're living away from big urban centers. They want their own pure water. They want to take care of their own sewage, and they want to get more use out of the water, meaning more recycling. Because of shortages they keep using the water they get. Right. So any time people need access to their own water.
We are serving new housing developments that can't be connected to sewage lines and need their own fresh water, potentially. Mobile home parks, hotels, and I've been telling you about this this luxury hotel, where now I'm told that the public launch is in July. The testing, the final testing of our water system is in June. But we've provided super pure water to the entire hotel. And finally, campgrounds and travel stops. We have a very good relationship with one of the biggest truck stop chains in the country where we've become, we're becoming a preferred vendor.
So this all serves people and it's self-sustainable water. What we call the idea of going back to local, right? So we're here with capital and expertise to fund and manage these simple modular systems that people can pay for by the gallon, just as they always have but increasingly cannot. But because their water is independent and recycled, they don't pay as much for it as they would. I believe that this is a massive trend.
Here's a picture of those water rates. It's time for everyone to have access to clean, abundant, affordable water. So Water on Demand is the simple solution to water sustainability. And we invite you to find out more. So that's the sort of big picture here. This is our big picture of what we think. Keith Roeten says, "Bio urbanism sounds like the wave of the future makes a lot of sense." You're so right.
Returning Independent Availability of Water to People
I mean, look, I've been thinking so hard about, well, why? What do we do here where we've made this total reliance on, we're 100% reliant on technology, and yet it's not so sure that technology is going to deliver always because of, frankly, a lot of greed and imbalances. I'm not going to get into the reasons why, as Dr. Monoti said, the the fiat system is a reliance on belief. Well, if that belief system goes away, what do you have? Well, you have communities and you have real estate, you have self self-sustainability, you have water that you can rely on that you don't have to pay an arm and a leg for. Right.
So that's the idea here. And I think it's, I find it so, so interesting because for a long time, I've been keenly interested in watching what's been happening for a long time, but really, really became a big thing since COVID, where the central management of our centralized systems is not that great. I don't think that politicians are doing a great job with the money supply, for example, so things like this and then but of course I have been in water, so I kind of stay in my lane. It's about the water, water treatment, etc..
What's happened as Ken and I have developed this this Water on Demand concept is we're actually returning independent availability of water to the people, and that from here on out is our mission. And now I believe that we're going to be part of the answer to all these terrible problems, and that's so amazing and exciting. So with that, we've already started having discussions.
Our good friend Ivan Anz, who's an OriginClear advisor, and he has been 15 years in real estate. And what he does is he puts investors together with people who could never otherwise get a home. And they get that home. It's not a big home. And they have to often put some some elbow grease into it to improve it. But they can have it for less than they would pay in rent otherwise.
So it's been highly successful. And now he's exploring doing so with housing clusters. Philanthroinvesting self sustainable developments. Self controlled supply of pure water if needed. And I think you always want to have that treated sewage. So you treat it yourself. You're completely independent, which we've already proven we can do very well. And finally, full ability to recycle.
Good Clean Water
So this will move very quickly because, you know, one thing about we know about Ivan is that he is extraordinarily dynamic and he moves as fast as we do. And so we're going to be able to put something together very quickly. And I think that you'll see in these categories, as I was saying, housing developments, mobile home parks, these RV campgrounds, these travel stops, various places that are off grid that need good clean water and that are going to be clusters for people surviving. We'll have the solution. And again, the capital will be provided by Water on Demand.
It does not mean we're not going to do the the big office buildings or we're not going to do the pig farms and all that is. Absolutely. So those are totally essential. But. It's a funny thing, but you talk about pig farms and people. Yeah, yeah, yeah, yeah. But they want to know about their own clean water and its right. That's what it should be. Right. So we've heard that and we plan to do something very specific about it and make that a focus. I think that personally I think housing developments, off-grid housing developments is our killer app. That's my personal opinion.
Well, with that I'm going to open up. We have our young man Ken Berenger. Unfortunately, Andrea d'Agostini is still stuck in LA traffic and we keep telling him like, Dude, don't be in this...
Ken: Move out of LA. Oh, that's not what you said. OK.
Riggs: Before I go on, Bob Roos says he wants to know first quarter financials. We are on track. They are due ten days from now and it looks like we will be on time. I'm not even interested in taking the regulatory grace period. I think that's kind of a dog ate the homework thing. It's there if we have to because sometimes to get, like last, for the K for the annual report, we had to take a little bit of the grace period because we decided to bite the bullet and account for warrants that had not been done that way before. We said, okay, fine, bite the bullet, but that's over. We want to be there's no reason not to be on time. We have an excellent team. They've been doing wonders.
End to End Self-Reliant Water
Ken, let's talk a little bit about this bio humanism, the self sustainability. And you know, you and I have been like our gut is we got to become self, self independent, right.
Ken: End to end self reliant water. So but so part of this, you know, a lot of Water on Demand is a concept actually arrived to us through the subconscious. You know, we didn't go, I have it, let's do this. It evolved in a series of conversations, but it was really what was going on subconsciously after COVID. So I have family in New York. We'll be visiting this week, and when I would call home and find out what was going on during COVID, it was like it sounded like out of the book of Eli, you know, it was this dystopian nightmare.
And here I am in Murrysville, Pennsylvania. I go to my local farmer, I buy a half a half a cow for $5.99 a pound, organic grass fed beef. I go to my local farmer, I get my my vegetables and I go to my office building. My life was almost completely unchanged during COVID. So when I hear these horror stories, it really is. It was the urbanization. So much, so much of the the worst affected areas was in these highly urban areas. Right. I'm in what you'd call the Ex-burbs. Right. I'm kind of right on the edge of the city, right on the edge of the country, rather.
Riggs: Ex-Urbs is a very good word. Yes.
Ken: X burbs. Yeah. Ex-burbs.
Riggs: Exurbs. Exurbss. Yeah. Ex-suburbs. Exurbs.
Ken: Right. I mean, like in the Exurbs. Right. So knowing what I know, I know a guy. Right? So what I didn't mention to you and I wanted to do it live is I looked at a 48 acre parcel today in my town like one of the last 50 acre lots around, and I could buy it very, very inexpensively. This is where you could build million dollar homes. And the guy goes, you know this the reason I said, why is it so cheap? Reason so cheap Ken is you're never going to be able to get sewage in there. I went, I know a guy. I know a guy. It's all good.
So to the property developers, for the people who really, I'm up in the hills, I'm up in the Laurel Highlands, which is the Laurel Mountain foothills, and it's just rolling hills and just thousands of acres of property. There's this magnificent property to build on, but you're never going to get any connection to water. And you know, how many how many septic systems can you put in? I believe that this end to end kind of multiple home units that could be basically brought in, I believe that as a is a land, it is manna from heaven, from a land developer.
It will enable land developers and property developers to capitalize on property that was previously. I can't use the word because it wouldn't be proper. You would have no ability to monetize it, right? It was cheap for a reason. It was like that car dealership we did up in Cranbury, right? It was up in the hills. So I believe that bio human, bio urbanism, as he described it, is really it's bio sub-urbanism. It's bio Ex-urbism..
Developing Exurb Enclaves
Ken: It's going to be enclaves escaping the chaos. And look, let's face it, when your entire existence is dependent upon a broken and corrupt bureaucracy, and that doesn't matter where you live, by the way, that's everywhere. Right? When your entire existence, including the quality of your drinking water, as well as having access to food, you know, people like, oh my God, steak is $29 a pound. Like, no, it's not. No, it's not.
You know, it's because you're trapped in these you're trapped in these in these kind of traps really is these urban, urban areas. And what'll happen is here's what's good as this process takes place and we trigger it, we trigger the capacity for hundreds of thousands of people to move out of these. It's you're not going to have overcrowding.
We're talking about millions of people living in an area of the size of a donut. Now we're talking about a quarter of those moving out to an area that's ten times the size. I say they won't. It's not you're not crowding the country. Right. The reason they're in the cities is because that's where all the services were. That's no longer necessary. And we're going to lead the charge in being able to develop really wonderful exurb enclaves, totally self reliant from end to end.
Clean Water and Local Communities
People will have a better quality of life. They will be connected to community. You know, I've been on Earth now for 55 years next week. I've never had a greater sense of community than in the five years that I moved out of, out of Long Island, I live in this little town and I know my monsignor and I know my I know my priest. And I know my, I know the schoolteachers. And I think that there's a thirst for that to return to the old, like you said. But what's odd is we're actually using the very, very latest cutting edge technology to return to the old right. But the accessible market for this is unimaginable, and I'm really excited about it.
Riggs: Well, for example, I mean, you say we're going to be doing it. In fact, we already are. We're just not doing it in the Water on Demand format. Right. For example, we just signed a contract for the KOA campground to make it do its own self. In fact, this new case study that we'll be publishing soon. Do its own blackwater recirculation right and it's very simple you know that concentrate of sewage concentrate goes into a tank that gets pumped out once a year and that's it. I mean, because most human sewage is 99.999% water. Right? It's very thin and because of the way we flush, etc..
And so you can concentrate it quite a bit. And so it's very easy to do. It's just a matter of making that decision. And believe me, if you're going to, if a housing homeowner's association is going to save $5 million of sewage connections and then not have to pay for the machine because they go to the meter, it's a no brainer. It's like, thank you very much, right?
Ken: Right, exactly right. And when you think about, you think about the exodus from the cities. Right. Where did they move? They. Well, yes, I got a lot of moving into the neighborhood. They drove my price house. My my housing price is up quite a bit. Thank you. But the reality is that there is no more places to build right now. So I'm buying this 50 acres. I'm going to put a ten, I'm going to put one house on ten acres that will be mine. And then I'm going to do like 20 homes, you know, kind of around it. And it's up next to a national park. So it'll be no more building, right? They can't build there right now because it's, it's several miles, It would be a multimillion dollar job to connect to the city sewer.
Riggs: And the time it takes.
Ken: Well, but here's my point. We can create a gold rush in exurb property. Right. You can create a real gold rush and a real incredible opportunity for a whole cottage industry of kind of like quasi urbanizing the country a little bit and in little enclaves. But they'll still have that that kind of country feel. And I think that is really going to be attractive. The fact that this now can be done by essentially just asking. I don't have any money, but I do need it. Sure, no problem.
Ken: That is, I mean, this is like you said, we've been doing this quite successfully for a decade. The problem was, okay, you're all set to go. It's a half a million dollars. Well, there's your problem. I don't have a half a million. You're right. That's a problem. Now, it's basically, like we say, from selling to blessing. Here you go. Just. Just pay the meter.
Closer to Friends
Riggs: So we become the micro utility, as you like to say it. You know, we were, we were in Los Angeles. I, I met my late wife and my current wife, Sigrid. And LA is the kind of place where you can just, you have the money. You. I'll take this. I'll take this. You just, you just point your finger and you get right. And it worked fine. We didn't have to know anybody. And we have to know some people in the neighborhood. Only because, I don't know, it was very random, mostly because they walk their dogs. But other than that, we didn't care.
Like, so what? Who cares? We're not going to have an emergency. And then and here's the other thing, we relied on, oh, we have a friend in Topanga Canyon. It's gonna take us 45 minutes to get there, so. But, you know, so our friends are all over town. So there's all this driving required and so forth, and all that is going to be scrunched in and made very local, very clustered. And so we made a decision to move to Clearwater, Florida, because a lot of like minded people did the same thing.
Ken: And all your friends are 5 minutes away now. And then 5 minutes away and you can see them.
Riggs: Right there, actually the same complex. And on top of it, they're like minded. They think the same way, right? Sure. Sure. So, they're on the same page. And I've got a really good friend of mine who's one of the parents of two kids that my wife teaches. And he's an actor, well-known actor. But he went ahead and is building a rural plot that's next to a canal here in Largo. And so he's got water access.
He can go he can leave any time. And he's got he's building up. He's this beautiful garden, victory garden we used to call them in World War Two, I guess. And so he's he's like he's he's doing it and and he's got three acres. That's plenty. Doesn't need more than that, right? Sure. With water access, you're good. So that's really where it's going. And of course, yes, I think I should have a garden. But meanwhile, I can always go see Jason. That's the worst case scenario. We can go see Jason, right?
Becoming the Micro Utility
Ken: Right. If you don't. If you don't, it's like if you don't if you don't have a pool, you have a friend with a pool. Growing up, when we didn't have a pool, you had to have a friend with a pool. So if it was hot on a summer day, you could just go over to your buddy's house. This is the same thing here I have. All my friends are 5 minutes away. Right? And we all are, you know, roughly, right? No one's quite. I'm a shade a little bit just a shade beyond. But that's okay. It's really it's part of it's part of my charm, they say.
But it's it is. You're finding that people are going to tend to gravitate and providing an avenue, providing an entire micro infrastructure that allows this to take place anywhere. It's good for people. Remember, people were very restricted, you know, and they had they moved to these places because this is where you the only place you could get vital services, right? Sure. That technology is freeing humanity in many ways.
But with with respect to for respect to where people were forced to live that had that, it really hadn't changed up until a couple of years ago. People were still kind of bound to these centralized urban areas. And I believe that by just simply telling the story that we're going to create a complete end to end total water autonomy, total water self reliance for any home community or even or even slightly larger than that. I think that's going to be irresistible.
Riggs: Okay. So Bob Roos, the eternal optimist, says, what about publicity for the things that are happening, like the KOA system and others? The stock price is reflective of the idea that, OCLN isn't doing anything. Okay, so this comes back to the problem that we had in the beginning. Ken and I started working together in 2018 and we're like, rah rah and we're taking off or taking off or taking off or taking. We're I remember going through 2019, fourth quarter, 2019. We were like, What? What's going on here? The problem is take a look, for example, at this this hotel, this luxury hotel that we were putting in a system. That was over two years ago. I remember meeting with the chief engineer of the chain in LA at one of the hotels in early 2019.
Ken: No, we've been talking about this for two years, for real, two and a half.
Riggs: Right? And and the things in place and, of course, is now going to finally launched in July, the campground thing where we just got the contract for it. Well, now it's going to have to be built. They're not going to let us do a big rah rah about it until it's a big success. Similarly, there is a travel stop player that I can't get into that we're doing very well with. But again, these things are sensitive and they also take forever.
What we're doing with Water on Demand is we're speeding it up. It's not about the clients. We do wonderful projects. For example, we are helping to build a housing development for the homeless. Tiny homes. This is the new trend because they can't keep living on overpasses like they're in LA. I'm sorry. So some smart people are putting together these these tiny homes and this is what Ivan Anz is doing, but we can't talk about it.
Ken: I was about to say, Bob, I promise you, I see the sheet. There's three dozen of these things that if I told you about any one of them, they'd be like, That's fabulous. When can you talk about it? We can talk about it. When they say we can see the slow, the torturously slow sale and install cycle is what kept us kind of in this in this in this loop for a while. Water on Demand will allow us to globalize and actually be able to talk about dozens or even hundreds of operations because they're happening in real time and they're in different stages of their development. Right.
So this will dramatically accelerate. Look, here's the thing. You talked about the KOA campgrounds. You talked about the homeless place. You talked about the truck stops. We could never build, we could never get enough of those deals to be $1,000,000,000 company. It just couldn't. Right. You'd be butting up against everybody else anyway, right? So that never. What is it? Never compete with your natural ally. Water on Demand makes the entire water industry. Bob, I'm speaking directly to you, Bob.
Run in Parallel
Riggs: We're going to and we're going to go parallel also so that there'll be all of these things going at a snail's pace, but like a six lane highway. And so they'll be more coming through..
Ken: Right. Like the ocean just rolling in. Exactly right. So the point I'm making is, is that this can happen in parallel, simultaneous in many, many, many, many cases. So news will start to happen as these things develop. When you're working on two of them, it seems you're watching the what you're watching the pot boil. But because this will now be able to, you don't want to ever compete with your natural ally.
The entire water industry is our natural ally now because we're bringing the money and we're bringing a slew of patents which allow them to take advantage of a serious market advantage we've had for a long time, that we decided not to remain parochial anymore and hoard it. We want to hoard our market advantage so we maybe we can get this one deal from the guy. No, we're going to make it open source. Everyone can use it and that allows us to duplicate our efforts but 1000 fold right immediately through technology. So I hope that answers your question, Bob.
Riggs: No, this is exactly what the solution is. And I'm. Also going to be able to share. We actually have some very good stat trends that are going into our institutional deck and we're putting those together as fast as we can. But I have a big rule right now. Nobody in finance lets the quarterly filing be delayed. So no matter what the last ten, next ten days, they're the nose down, tail up doing that. However, we're going to have some very, very solid. For example, there's a beautiful net present value chart that I can show. It gives you an idea. And Bob, I will talk about the technology, which is absolutely of interest.
But let's take a look, for example, at here we go. And this is very, very simple, very simple graph, but it's demonstrative of the value of just our conventional business. If you look at 2021 actual revenues, which were disclosed at 4 million and now you make various assumptions. Right. And you say the cost of money is whatever, right? 5%, whatever it is, you know, right away, what is the present value of the company? So if you take on five years, a five years, you you say, well, the present value of the company is $26 million.
It should not sell for less than $26 million if we grow at the rate of 20%. But notice that we tripled our booked orders in the last part of 2021, which really means that it's not going to go three times in 2022, because, again, these things have to be built, but perhaps it's going to be more like 30% growth or 40% growth. Well, look what starts to happen. And you just and if the cost of money goes down, if it's 0%, that's a beautiful number.
Why would it be 0%? Well, that's if we don't have to borrow money. And here's the beautiful part. Our investors are coming in as profit, as net profit partners, which means below the line, below this gross profit line. So therefore, our cost of money is 0%. You know, people tell us, well, why don't you go ahead and go to Wall Street and get a 100 million dollar thing? Yeah, we can do that. What's it going to cost? It's going to cost money and shares that they will sell immediately. We've been there and done that.
So the cost of money is zero because we have equity partners. Now we're talking about a business that's as much as $50 million and that's not even including any of what on demand. This is only our conventional business.
Ken: And that's exactly the point. Right? So look at the effort, be the expression of effort here to get to a $50 Million net present value, whereas by raising $100 Million from people who want to protect their wealth and capture the inflation index by raising $1,000,100 million, you could create, what, three, $400 million worth of capital equipment that can throw off nearly $1,000,000,000.
Riggs: Well, leverage alone. Leverage alone.
Technology Standardization & Spinoffs
Ken: It's in order of magnitude increase. And to answer Brian Hallinan, I think it was Brian Hallinan, he asked a question on chat. Will we license the technology? The answer is yes, of course. What we're going to be able to do is we're going to be licensing. We have a slew of patents on the on these modular water casing technologies. Anything that you want to put inside that? Well, this will just improve its durability and improve its accessibility, its upgradeability, its.
Ken: Standardization ability, right? So if you have a better if you really have a better mousetrap, Brian, the stuff that goes inside, sure. Take our casing. Now, if they don't pay, we can take it away and we can actually, through Water on Demand, we'll give it to another guy. We'll give it to another guy who is a payer. Right? So the idea is, of course, we'll license that. And that actually creates a because that's another division of Modular Water. That's another potential. Do we do we use that word yet?
Riggs: Of course.
Ken: What? Another spin off?
Riggs: Of course.
Ken: I didn't know if we were talking about that yet.
Riggs: No, no. But here's the thing. Eventually we're going to spin off everything. Why? Because crowdfunding allows you to monetize these far better than trying to keep them all in one. But let me show you what we're talking about here. We're talking about, HTML typo there.
Product Lines & Licensing
EveraSKID and the EveraTREAT product line. There's EveraTREA. There's EveraSKID, EveraMOD, which is the lift stations, EveraBOX, which is equipment buildings. Now, what is smart for us to do is to delegate the building and maintaining these systems, but to standardize them across the whole fleet, which means that we have predictability on performance. And that's the key here, is to have that predictability. So, yes, we can and will license it. And by the way, people are keenly interested in it. They're like, "Will you license it to us?" I'm like, Yeah, sure, absolutely. Ken you were on that call.
Ken: That a buy in for them. Yeah, that's one of the buy ins for them, right? They're like, Can I use that? Yeah, of course. Well, yeah. Then what do you need me to do? Like that was literally the action on that call that day. Can I use that stuff? Sure. Okay. Well, then what you need me to do for it? You know, it was. It was beautiful. This is the answer.
Riggs: So we have the full picture. I strongly recommend that you speak to Ken get if you can, please get your series A and Water on Demand Because when that goes, we've already sold more than 10% of it. And when it goes, that 10% anti-dilutive is gone. So lock it in while you can. Right.
Ken: And now with the and now with the MSC edition, we're going to have kind of a.
Riggs: Oh, yeah, yeah. So I forgot to mention, the Manhattan Street Capital portal, capital portal is launching very shortly. We, you saw the chart that I showed earlier on is one piece of it. It's basically together. We're doing the last little bits of compliance on it. And also we will be having a Regulation A offering, up to $75 Million, in Water on Demand. So the people who actually get a cornerstone, 10% are very smart people just by the mechanics of it.
Ken: Right. And all that money is going to be coming in from different directions. Meanwhile, they're insulated in their own non diluting, primary ownership of the company and 25% of those pay streams, which is really extraordinary. That will be a, that will be a factor greater than the next wave of investors that what they will get. So I believe that when this goes up on the on the portal, we'll have an international worldwide kind of a global, we'll have a global audience for crowdfunding, accredited crowdfunding and family offices. Family listen, 34% delinquency, 34% of retailers couldn't make their rent payment in April. What do you think family offices and smaller institutions own right now? They own commercial real estate.
Riggs: Oh, that was super, super safe. It was so safe.
Ken: It was until it wasn't right. So being able to come to them with an asset class that will have vastly superior return, something that allows eco friendly money to invest and actually make money right now but still stay on mission. Right. They had to make a choice. Do I invest in hydrogen and solar and wind early? Not make any money for a decade, but stay on mission? Or do I make money? Now you can do both.
So this is we are now hitting an inflection point where I think this is going to this is going to expand very, very rapidly now with this MSC and then doing, of course, the Regulation A, you're going to have you're going to have that on several well known portals. I know we're going to be, I guess we're going to be putting that up on Manhattan Street Capital. And you're talking to another even more well known group to put that Reg A up on there as well. Am I right?
Riggs: Yes. Bob Roos says series A I have that from years ago. No, this is Water on Demand Inc Series A, not OriginClear Aeries A. Remember, Water on Demand Inc is its own separate company that will go public as its own company. We currently own it 100%, but we will be diluted out. Now he wants to know, "Well, what about my existing common stock that I'm holding on to? Can I convert?" Well, remember this Yahoo! Was saved by its 30% ownership of Alibaba, right? Saved. It had a billions of dollars of valuation just from that.
By us having a piece of every single one of our spinoffs, OriginClear common stock will be in fine shape. But what I'm talking about here is getting a piece, if you can, of each of the rollouts. And we understand if not everyone can but try to get a piece of it. We think that Water on Demand is going to be the jewel in the crown. Well, it's now a ten till and I and I promised that I would not go too long. And yes, Bob, you have. OriginClear Series M, which is the the 2020 Regulation A that we did. I'm planning to make that convertible into the new Regulation A stay tuned. At no cost. You'll be able to just convert out, but we will take care of everybody.
I think, you know by now that we are very good at taking care of our best people because we love you. Accredited investors are the best people in the world. And we've got we've grown to love you. And here's the reasons why that 0% cost of money alone is super. All right, so we will not be deserting you anytime soon. And, Bob, you're welcome.
Next week, I plan to review the new institutional deck, which is almost done, but the last few numbers are going in. So do join us. With that. I want to thank you all for having joined us. It gets more exciting all the time, and I love how we are potentially helping this new survival next phase for bio urbanism, as Monoti calls it.
That is where people are going to cluster in self help communities and water is going to be a critical part. Thank you all. Have a great night and do show up next week. And meanwhile, have a wonderful weekend. Peace, love, joy and happiness. Sharon says, Sharon Skonetski says, "So interesting and exciting and how it has changed over two years." Thank you, Sharon. You are so right. We love it. I get up every day with a zing, a zing in my step and Robert Baxter says, "Goodbye." And good night, everyone.
Ken: Good night now.
Riggs: Be well.
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