Insider Briefing of 23 April 2020
Helping You Thrive in the World's ONLY Vital, Scarce and Recession-Proof Market
In This Insider Briefing CEO Eckelberry demonstrates just what Investor Water™ actually is with a long-time company investor interview, a presentation of the company's first proof of concept rolling water system, and a comprehensive look into how the company connects investors together with water projects, showing why the company believes Investor Water is, The Water Company For The New Economy™.
Transcript from recording:
Riggs: Hello everyone. The first big piece of news, and I am going to share the screen so that we can get into it. So here is... I just had an interview a couple of hours ago, so let's play it and see what we get.
Longtime Investor Interview
All right Bob. And it is a pleasure being with you this afternoon. It's a Thursday afternoon, and we are about to get going with the briefing in about an hour-and-a-half, so I'm happy to be talking with you. You have been with the company for quite a while.
Bob: Yeah, I just looked it up. My very first investment, I bought stock over the counter in February of 2009.
Riggs: Wow. That makes you truly one of the oldest ones. And of course, you were able to reprice your shares through the…
Bob: Not those shares unfortunately. Those shares were done over the counter, so not directly with the company. And I didn't learn about the company investments for a number of years. It makes a lot more sense, because the money goes to you instead of somebody else.
Protection For Investors
Riggs: Right. And we've also learned to put in protections for our investors. I mean, certainly for the accredited investors, but now for what I call the water crowdfunding, which is this new unaccredited investor round, which it looks like accredited high net worth investors are, they also like it. And why do you like this particular new route?
Bob: You're talking about the series A?
Regulation A Offering Advantages
Bob: Well first of all, it's a more immediate return. Okay? The dividends are paid monthly, and it's 10% instead of 8% and well for me, it's not tying up quite as much money right now because I’m waiting on some things to sell, like a house.
Riggs: Be nice if the realtors were able to get out and about, wouldn’t it?
Bob: You know, it makes a lot of sense for me to do it. And then there's the option of converting to stock. Because I do believe that the share price is going to go up.
Investor Water Initiative
Riggs: Well patience, I think, will be rewarded. I guess you have been hearing about the Investor Water™ initiative, which is intended to short circuit the whole funding problem. What is your feeling about that?
Bob: I'm sorry, what's the question again?
Riggs: Well this thing called Investor Water that I have been talking about, which is this way of connecting investors with water projects.
Bob: Okay, yes. I think it's a great idea. I think you've hit the nail on the head with coming up with money that's not from the big capital companies, and I think you'll get a lot more and people will feel more connected to it. You've got your loyal cadre of investors that have hung in over the years.
Riggs: Yes. We are blessed, by the way. It's pretty amazing. I think we have the most loyal investors in the world, but it's a good thing that now the water projects... See we were always raising money for the company, but the water projects had this incredibly long, torturous financing process. And here we are now, we've sort of connected the two where investors can invest directly in water projects.
About Swimming Pools
In fact, this afternoon I'll be presenting a quick video of what happened in Phoenix when we launched the first pilot program. So that should be fun.
Bob: I'm anxious to hear that, because I think it's a really cool idea, and I know... I used to have a swimming pool and that's a lot of water to throw away.
Riggs: Not only that, I understand that when you do drain a pool, you run the risk of cracking it, right?
Bob: Yes. You could. The biggest thing is if you leave it empty too long, and the groundwater starts going up, it will list the pool.
Riggs: Well that happens almost right away in Florida, because they have their water tables almost right at the surface, right? So that can happen very easily. But anyway, thank you for that. So, what would your advice be to people who are listening to this program right now, concerning OriginClear?
Small Bites Produce Better Reward
Bob: Well, take it in small bites, you know? I mean, that's the other beauty of the program, is that $500, it's a good chunk of change but it's not impossible. And put that in, and you know, they've shown over the years that small consistent savings produces a much better reward than trying to chunk away a sum on occasion. Because it seems like the occasions just never quite come up as much.
But if somebody decided that they wanted to get serious, $500 a month, put away every month, I mean, okay, it's $50 for the first year, then it becomes a hundred, then it's $600 for the year, and pretty soon a monthly check, it's going to be pretty good, and you can plough that monthly check back in to the next. After a couple months you'll have a significant boost, so you wouldn't even have to come up with the whole $500. Or, you can add to it. So, compounding.
Compounding Your Return
Riggs: Yeah, it's a kind of compounding. Well, reinvesting dividends is very cool too. And eventually we'll get that program done. We are about to move. Right now the platform is a vanilla platform that we are using, FundAmerica. They're very good, but we are about to move to our own custom program and then we can do all kinds of interesting things, potentially, such as dividend reinvesting, et cetera. That should be a lot of fun. I mean, what the beauty of the Regulation A funding is, we no longer are trying to find those elusive, one in a thousand people out there who qualify. Of course, there would be everybody and his brother marketing to them.
Rather, everybody else who really didn't have access to these great offerings until these unaccredited programs came about. So, I'm just tickled pink. I love the flow of it, it's great, and I love that you're involved with it, Bob, so thank you. Also, not only your financial involvement, but your advice and popping into my inbox with some information or a though, I like that and we appreciate it. So, thank you. Carry on.
Bob: Well, yeah, I'm happy to do it. It's kind of fun. I don't mind surfing the web and seeing things that look out of sorts, and I'm especially enjoying it when people respond and say, "Oh yeah, we'll fix that." Versus, "Nah."
Riggs: Well, isn't it funny that I've noticed when I go look at e-commerce offerings, where people are asking questions and then they're answered. For me it's huge. So, I as a consumer, I feel the same way.
Bob: No, I think you guys are doing a great job. It's why I've hung in here since, well, 2009. We're looking at about 11 years.
Riggs: Well you know heck of a lot of our stories, so thank you. And I'll be seeing you, what? About an hour and-a-half now and we'll have some fun with that. Feel free to pop in and chat and you'll probably see yourself, if I can get this edited down real fast, you'll probably see yourself on the show.
Bob: Thank you very much, and I look forward to seeing more information about the swimming pool project. I think that's cool.
Riggs: Thank you, Bob. Well you will see more, and I'll talk to you a bit. Thank you so much.
“Two Million Pools”
So, Bob was talking about a number of things, and I'm going to jump right into the last thing he discussed, which was this Arizona project. Here is the first cut of that. This just came. In fact, my brother called it a teaser, so feel teased.
Mr Barber: When I brought this to Phoenix, the vast majority of pool guys called me an idiot, a fool. “It'll never work.” I'm just the kind of guy that's like, "Tell me I can't do something, and I'm going to figure out a way to make it happen." That was three years ago, almost 15 million gallons ago. It became apparent to me that there had to be a better alternative than just draining a pool. Any time you drain a pool, you inherently put some things at risk. They're designed to be full of water, the surface to be wet.
It becomes extremely problematic as the temperatures rise and summer sets in, because of a natural occurring thing called expansion. When things get hot, they expand. There's no expansion joints in a pool. They create their own by cracking. And it may be just a hairline crack, but it's still a crack and your pool is going to leak and you're going to have issues.
Another Elegant OriginClear Solution
The potential for this is huge. Maricopa County here in Phoenix has, I think, three hundred seventy-five thousandish pools. And each purification unit can do one pool per day. Now that's just Maricopa County. When you take it clear across the Sunbelt, there's millions and millions of pools.
Riggs: So now I'm going to play one more video and then we're going to discuss more news. All right, here we go. This was recorded the other day and it is interesting also.
Investor Water – The Breakthrough
Hi. This is Riggs Eckelberry. And I want to talk to you very quickly about Investor Water. Investor Water we think is a breakthrough concept to solve a specific problem, which is how to get water projects done where there's a lack of capital.
Capital IS A Problem
And guess what? Capital is a problem in this economy. It is what it is, which is kind of what accelerated us into finding this model and we have tested it and it works.
A New Way To Fund Water Projects
Number one is a way to get funded because the number one way that water projects gets slowed down is funding. Right. Capital. So, we figured out a way to get these things funded and that's key.
They Do The Job
Number two is we're keeping the scale modest. These are solutions that are elegant, that are relatively inexpensive, that do a good job.
A Mobile Rental Fleet
And then the third piece of it, of course, is the projects themselves. These are packaged system that roll out on truck, drop in, plug them in and you're set. And they can be taken away just as easily. So, that creates a mobile rental fleet of water systems.
A Model That Works
Thank you and I'll be looking for you on my weekly briefing, 5:00 PM on Thursdays, 8:00 PM Eastern. And just go to originclear.com/ceo to sign up.
These two videos are some of the videos in production for the new Investor Water website. And so we have a concept of Investor Water, which brings together, obviously, investors with water projects. So let's take a look here at the announcement this week. So OriginClear moved its headquarters to Texas, McKinney, Texas.
And here you see the Facebook posting. On the top left you have Marc Stevens who is the President of Progressive Water Treatment, the company at bottom right that we purchased in McKinney, Texas back in 2015. In the middle of that top left picture is Ken Berenger, the guy that you speak to when you want to get the real story. And then to his left in the right of the picture, is Tom Marchesello, our President and COO, Chief Operating Officer.
And this was a few months ago when we were touring and we are now located there. Now physically, I'm not going to Texas and a couple of us people are still left behind in Los Angeles, but we really realized a couple things. First of all, that we're mostly operating virtual in California anyway.
Secondly, that the whole, really the Texas market, is an incredibly strong market for water treatment and it is where it's actually at. California does happen, but it's no question that Texas, and of course the Eastern seaboard, are very strong for us. So that's really our regional area of strength. It's where we actually build systems. You can see in the bottom right, it is not a glamorous site, it is a working location. And we just felt that it was more honest and appropriate for us to be based where we make these things.
So I'm still in Los Angeles and operating from remote as are a couple of other people. Bill Charneski, our Senior Vice President, Eric Sandler, our Controller, Jon Peraza, Director of Administration. And then Tom Marchesello, Chief Operating Officer who is already in Florida. Ken Berenger is in Pittsburgh and then we have Dan Early and Robb Litos, the Modular Water people are in Virginia.
So, we are pretty spread out. And it as the truth that we're simply a very virtualized company, but this is our home. So, that's the story there because people are like, "Riggs, you're moving to Texas." I'm like, "Yeah, that'd be wonderful idea. I love Texas." But it's not going to happen. I will keep you guys updated about my personal plans, but that's where it is at.
Without further ado, I'm going to stop the share, cover a few more things here. All right. So, what I wanted to do was to actually bring up this website that we are building and talk a little bit about Investor Water while touring the website. And that's going to be productive. So, let me just pull up that site map. This is just content.
So, obviously, there's no visuals. The web designer, a company called Studio98, are putting this together.
Investor Water Website
Investor Water, what's it about? Well, investors want to know, “How can I get great yields in this new market?” Now, with our water crowdfunding offering, you get great yields, you get 10% of the 0% market. But, what if you wanted more for yourself? And that's where we get into Investor Water. Water users ask, "How can I get funding for my “must-do” water project?" Well, we have the answer and here's how it works.
Why The World Needs Investor Water
First of all, why does the world need Investor Water? Well, it's a poorly kept secret that most of the water in the world is actually never treated and dumped. It's a horrible thing. We have a trillion-dollar global market that only grows 3% to 6% per year, which is slower than population. Meanwhile, and this is a new thing that relates to the economy, is that people are looking for work and there's permanent unemployment being created right now.
By the fourth quarter, when things have chilled out a bit on the virus front, we are going to have a lot of people who will be looking for work. If we can ramp up to many, many water projects, many water projects, then we're good. Now, if you want to ramp up, you don't want to try and do it all yourself. That doesn't work. So, the key is how can you create an environment, a marketplace, where it happens?
Problem Was Money
The problem was always money. We've always been waiting. I look at these forecasts and there's millions, tens of millions of dollars in the forecast. This permit is happening, and that is happening, and this is going. There's always something happening, and these things are bumping along to completion and finally get closed like that city deal that I showed you the other day. But in the meantime, your margin is being eaten up.
This is why I could never understand because remember, I did not come from the water industry. I came from tech. And they kept saying, "Oh, the water industry has very low margins." I'm like, "How could that be?" Well, it is not the equipment that's particularly low margin. It's that it is eaten up in overhead, and consulting, and permits, and this and that. So now, even worse, is that investors are very, very, very flighty. Very concerned about security as they should be. You should be looking for investments that give you returns, but that you have some recourse, you have some control. So, what is that?
Short Term Rentals
The solutions like this. Literally, we gave this to the website company today to work on. So, let's take a look. Our concept was short term rentals. Because initially, we were like, "Well, okay. What about if we allowed a water user to rent or lease equipment and we put a trust deed on their land?" The problem is, guess what? Real estate is in a tough place right now and there's going to be just waves of foreclosures and bankruptcies in the real estate space, so we want to stay well clear of that. And what we realize is, you know what? Even in the worst kind of economic environment, rentals work. If you look at poor communities, the Rent-A-Center model where you can rent a TV, always works because people want a TV but they don't have $400 but they have $12 a week or whatever it is.
And so, their short-term rentals model always works and it works very well in a recession environment. Now, to make that work though, the water equipment has got to be portable. Because if you're going to rent it out and the renter stops paying, you better be able to take it back. And that's that concept of these things being able to roll in and out. This way they can just sign on the dotted line.
Rental Profits Are High
Now, for the investors, rental profits are high because it's short term. It's just like Airbnb is short-term rentals. And you can make several times as much from renting out on a two or three-day basis, than by the month or the year. Of course, we own the asset and can take it back anytime. That's key. Now we're piloting in the field, and I'll talk a little bit about our first one, and we're expanding it into an industry marketplace, which we call Uberizing Water™. I don't know if we can trademark that, but sounded good at the time!
So, “Water Needs Cleaning, American Needs Work, We Connect The Two™”. And then there's a mission statement which is very clear, but it basically repeats what I've just said. So, the top video was the one that I just played to you. And this one gets into how it works and it really gets into the nitty-gritty. Well, let's just discuss it right here. First of all, technology. It would not be possible without the breakthrough that we had when we brought in Dan Early to create the division called Modular Water Systems, because he specializes in these. He's been doing it for 15 years, long before people cared, he was doing it.
So, we jumped on it back in 2018. It is now fully integrated into the entire company, and it's now a cornerstone of Investor Water. Investor Water could not work without these elegantly, relatively inexpensive, I'm talking in the hundred-thousand-dollar range, modular systems that can be put out and pulled back.
Like Renting An Apartment
I was talking to a proprietor the other day, and they say, "Well, okay. What do I have to do?" I’m like, “No, don't do anything. Just first, last, and security. Just as if you were renting an apartment.” You move in and you're not a murderer or whatever, you pass basic know-your-customer type checks, we won't even worry about your credit particularly because we still own the product. And of course, the end-user is paying a lot, but that's okay because anytime they can have a buyout option. And we're now working on the financial model where every month that they rent is credited towards that buyout. So that'll all be worked out, and the nitty-gritty.
Management Fee & A 15% Credit
We get a straight management fee. We get a percentage of everything no matter what. So, everything is at cost for the investor, plus our straight management fee. Now, how does the funding happen? What we learned was that investors who have been investing in OriginClear for a long time, people like Bob Roos, there, let's say that Bob Roos puts in $100,000. Now he receives 15% credit towards a participation in that. So, a machine that might cost $100,000 for him to help build, which again is the raw cost of the machine plus our management fee, he'll only have to pay 85,000 and that is paid for by OrignClear. Essentially, it incentivizes Bob to invest. So, Bob has all these good reasons to invest 100,000. He has full return of principal, he has this, that, and the other thing, is on our accredited investor program, and he then gets this credit to participate. And we're getting investors who are very interested, ready to do deals. OriginClear itself can invest. Now that's where this pools thing came in. I'll tell you about that in a second.
And finally, the SBA is looking for ways to lend money right now to restart the economy that is tied to assets and tied to employment. So, you roll out these assets, small SBA funds them, and it gets employment so it's a win - win from the government's point of view. And we have already put in a very large seven-figure request to the SBA on the 7a program, based on this stuff.
Now, who do we work for? Obviously, we work for you, the investor. Why? Because we'll go to OriginClear and say, "Hey can you build this?" But if there's a better price somewhere else, Investor Water is an independent operation and is there to get the best deal possible. Why? Because we want to minimize the cost to get more investors in. Our job is to try and get investors and not to make these things more expensive. That would work against our benefit. So, we go to anyone in the market and look for the best price.
And, if OriginClear is investing, it gets treated the same way as any other investor. It's an arms-length relationship. We work for you, obviously, the company with a water challenge, because we're going to make sure it works. If you don't like it, return it. If you can't pay for it, return it, no big deal. And then we're ready for the long-term financing when you are. And finally, we work for you, the water companies. This is interesting because we want to move beyond us looking for funding on projects, into other water companies.
Two Million Pools Program
Now the first thing we did was roll out the Two Million Pools program, and there's going to be a separate website on that. Now, in short, once in a while, you're going to have to recycle the water in your pool. You can drain it, but then you've got problems with potentially cracking it, hairline cracks, et cetera. In places like Florida, literally, the pool can float up if it's empty. So, you have to keep the pool full. But then once in a while, the water just cannot be shocked. It has too much minerals, it's foul.
Well, guess what? Run it through a desalination system. Reverse osmosis, RO. And that veteran pool operator, Mr. Barber, what he was doing was he was using the system you saw, it was taking the water through the trailer, running it through these membranes, it was coming out just like that under sink water treatment unit that you have in your home which you use for that little tap that gives the drinking water.
Crystal Clear Water
Well, that's the water that enters your pool, so it's crystal clear water that's been replaced. Essentially just rinse it, rinse it, runs it, and until the point that water is completely pure. Now what's great about that is you didn't have to get rid of the 15, 18, 20,000 gallons of water, which in the hot states, that's a lot of water. Number two, you didn't run the danger of the cracking or the floating and there's no muss, no fuss.
Additional Line Of Revenue
Now, for the pool cleaning company, it's an additional line of revenue. It's around 600, 700, $800 a day per job. I don't know the exact price, but it's in that range. So, they get an extra line of revenue. But even more importantly, many, many owners do their own pool cleaning. And as they say, this gets the pool cleaner into the backyard doing that job. And then, of course, you can talk about the cleaning service. This unit that you saw is called the Pool Preserver™, like life preserver, but it's a pool preserver. And Dwight Barber is in operation right now, and that is our machine. Now, what's interesting is we built the machine at Progressive Water Treatment a couple of years ago.
Dwight bought it, and then we essentially made him a partner, took back the machine, and then he is operating through this program. Essentially, it's kind of a circular deal, but it's good because this now has our branding on it, we branded the whole trailer, and we now have our first system out there making money for Dwight but also making money for us through the rental program. We funded it, we made it happen, and Dwight is very happy because he wanted to start to slow down his business, his career. This allows him to consult and to be building the market for Two Million Pools. So, that's the first proof of concept of this.
Now, what are some of the other pilot programs? Well, there's a problem with mobile home parks, I've spoken of that before, where these... what I call poop-lagoons. Poop-lagoons, there's thousands of them in the South, mostly the South, and they're just not okay. We put together a solution for this, which is, I'm not going to get into it because we're running out of time, but very inexpensive, very effective, and solves the problem. Now, [they] were also driven up to manure lagoons in dairy country. We're working with partners on that, and that's very interesting.
Future Market Place
Okay. Future marketplace. Alibaba for water, where water companies can upload their own deals, outside investors can browse and participate, leasing companies can list themselves. Of course, we plan to oversee this marketplace, for both technology, make sure it works, and integrity: no fraudsters, et cetera. Also, we want to launch syndicates so that, let's say it's a million-dollar deal, then you can get a bunch of smaller investors in. Or even a $100,000 deal, get a bunch of $5,000 investors. So, those are investor syndicates, and that will be a lot of fun.
Zillow For Industrial Water
Imagine a Zillow that unites investors with water projects. Pretty cool. There will be a Zillow-like map, et cetera. This talks about the concept, which is basically to address the impact of the coronavirus slowdown to give investors yield while making more water clean, proving it with a one investor per project, soon syndicates, Zillow for Industrial Water™, et cetera.
So, that's the rough draft of the website. Hopefully, it got cleared up in terms of blurriness, but you will see the website within days. It's being rapidly produced. That is kind of a quick look.
Oh, yes. One big point. It's really interesting because I was talking to my wife this week and we were talking about this offering, and she kind of liked it. So, long story short, we invested in this unaccredited investor round. Generally, I mostly loaned money to the company, of course, with no interest to me, but this time I went ahead and invested and I'm really excited about doing that. Not a big investment, but it was more than the minimum, let's put it that way. It was $1,000. That's what it was.
Okay, let’s answer a couple of questions. Is this technology for third world countries? Absolutely, Marquette, but one step at a time. Now, here’s my plan. We have, for example, remember, this animal farm technology.
Well, we have a partner in Spain trying to sell these wonderful systems that I featured on our website in October, that cleans these animal farms, et cetera. But guess what? They're a half-million dollars. So, what are you going to do? Again, long, slow sale; get a grant; this, that, and the other thing. Meanwhile, the animal farms are violating the law, especially in Europe with ammonia limitations. Ammonia gas is severely regulated in Europe.
Simple System For Animal Farms
So, what we've done here is put together a simple system that the animal farm owners can drop in their manure lagoon, you know that horrible pink lagoon, and it just starts taking care of itself through kind of a coral reef type of self-cleaning process. That's going to be relatively inexpensive in the rental program, so we'll start through our partners: Depuporc in Spain, Aqua D&P in Romania, Permionics in India, a couple of others.
We have one that we're going to soon announce in the Middle East. We're going to work through our partners and roll this out. But, frankly, we got so much going on in the US.
An App Like Airbnb
The important thing is, look: I like to say, and this may not be 100% accurate but I heard it once, I heard it once on the radio, therefore it's true, which is that the Airbnb founders started Airbnb with two apartments in downtown San Francisco that they ran themselves. Then they figured out the model, and then they created the app. So, as soon as possible, what we want to do is up to three pilots and we're done. With those in hand and rolling, we want to create this app because that's how we scale it up, and now anybody in the world can just join. Isn't that exciting? That's what I think is super. So, very excited about doing that.
Really Just A Marketplace
Personally, I think that the concept of having an app is what excites me so much as a tech guy. I saw Uber and Airbnb and Zillow all happen, and they never owned the underlying asset; they weren't trying to do the work.
The Uber guys weren't driving the cars, so it was really just a marketplace. Alibaba, eBay: marketplaces. I believe this is the first marketplace for water. Financially, I believe it has a potential to be a unicorn. I'm not going to say that we're going to be a billion-dollar company tomorrow, but that kind of structure works because it's fully scalable. Now you're in tech, you're not making water systems anymore. We will, we'll never stop, but you're actually helping the world make water systems and fund them. That's, to me, amazing. I get kind of excited about it, as you can tell.
So, thank you, Keith: "Pool Thing is cool. Like the pictures of the manufacturing facility." Well, we'll circulate some more on Facebook. Be on Facebook. I wanted to answer Byron's question: "The previous video had a pool company. You also have individual units for pool maintenance owners." That is a super-cool concept, which is these little reverse osmosis systems that stay at the pool and just do it continually. It's a whole market. We're not ready for that because residential markets, in general, you’ve got to have a partner for it, it's a whole different world, but technically it can absolutely be done.
Okay. We have a bunch of people interested in talking to us, so, Devin, go ahead and post the phone numbers. You can always email email@example.com. The number is 323-939-6645, 323-939-6645, extension 201 for Ken Berenger, and also extension 116 for Devin Angus. Please call Ken Berenger. He's extremely smart.
Byron wants to know about pool maintenance. No, we're here to help others get pool systems, so we don't enter the actual businesses ourselves. Remember, we want to pull away.
Next week we have one more of these Insider Briefings, no, not fancy and then we get into the first Thursday of the month, which is the 7th of May. That will be with the smart board and so forth, so I'll be rehearsing that.
Okay. Radford Fulton wants know, "What is the cost of starting to put money in your stock?" Start with $500. That's what Keith told us. Keith said, "Take it easy. Just do a little bit at a time. You can always come back and do more."
Guys, it's been a great pleasure, and I'm going to sign off now. Thank you very much. Have a great weekend. Stay safe and healthy all, and don't be a stranger. You can always reach me through firstname.lastname@example.org, and Devin will arrange to send it along and even for us to talk. Thank you again.
Register for next week’s Insider Briefing: HERE
SAFE HARBOR STATEMENT
Matters discussed in this message contain statements that look forward. When used in this message, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such statements that look forward. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the statements that look forward contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These statements that look forward 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: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company, except as may be required by applicable law.
Regulation A Disclaimer
An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement, which only means that the company may make sales of the securities described by the offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. Please read the offering circular here: Get Offering Circular
Ten percent per year refers to the dividend rate payable on the preferred stock and is subject to the terms, conditions, and risks of the offering. The term of the offering, including with respect to dividend payments, are described in the Company’s Offering Circular, which provides further information about the offering, including the risk factors associated with the offering, such as, but not limited to the Company’s ability to pay the stated dividend in the future.