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CEO

Water Scarcity and a DIY Market?

Dec 14, 2020 1:52:28 PM

Insider Briefing of 10 December, 2020

Helping you thrive in the world’s ONLY vital, scarce and recession-proof market

Last week you told us what you care about in the post-briefing survey... What's happening with the economy and how can you stay ahead of inflation?  Is there a way to increase your investment value 100 fold? Can we really build a DIY market and put millions of COVID-hit entrepreneurs back to work? And what do Water Futures have to do with it? Find out here!

 

 


FEATURED OR COVERED IN THIS BRIEFING — QUICK LINKS


Transcript from recording:

Water is the New Gold title 10 Dec 2020


Introduction

Riggs Eckelberry:

Good evening everyone and it's a pleasure having you on board. With me is our COO, Tom Marchesello, who's going to have quite the presentation. So, we're going to get on with it because lots to go through. Water Is The New Gold™.

Now, so many of you have sent me articles about the trading in the Water Futures, and we'll be discussing this at length, but basically what's happening is that water is turning into a traded market and this is super exciting with futures and so on. And of course, at our level with the decentralized water treatment. It too is a market that we're growing.

 

Disclosure about forward looking statements

 

Safe Harbor

So, December 10th, briefing number 90. And of course, as we always do, we warn you that we're doing our very best to tell you what's going to happen, but we are not prophets, we believe these things will happen. And of course they're not blessed by the Securities and Exchange Commission.

 

Stephen Eckelberry videographer

 


So, I have a couple of really cool clips here shot by my brother, Steven, the man with too many cameras. 


 

Documentary Title screen


Video Presentation 

 

20201210 Ken Berenger presentation


Ken Berenger:

My name is Ken Berenger and I'm VP of Business Development at OriginClear. The water market, the way I saw it as an outsider, was kind of everybody bumping into each other, all trying to sell what they do to the handful of folks that had tons of financing on hand were ready to pull the trigger.

 

20201210 Muni Treatment Plant

 

Financial Pain Point

But that's not the market, 80% of water isn't treated. So, let them fight over the 20%. That's cool. Let's work with the 80% that's untreated because that's the real vital need there. So, why aren't they treating water? There's financial pain point? What if you remove the financial pain point?

 

COVID closed businesses


COVID-hit Entrepreneurs

COVID took some of the smartest entrepreneurs in the country and physically forced them out of business. Now, these guys are not out of business because they don't know how to run a business. They don't know how to do service.

The government said, "You can't operate." Well, they didn't stop being smart. They maybe had to have closed their restaurant, or their coffee shop, or their laundromat, but they still have what it takes to run a successful business.

 

Water As A Career

So, what we're going to do, is we're going to provide them everything they need to service 11 million pools. Each pool has about 20,000 gallons. These things have been just getting drained, dumped away. Now, here in beautiful Western Pennsylvania, it rains every 14 minutes.

 

20201210 Rising groundwater floated swimming pool

 

Risks of Draining

So, maybe it's okay here, but in Arizona, in the Sunbelt, in Southern California, not a good idea and in places like Florida, you drain your pool, it floats away. The financial need for this is the reason they do it, but the pleasant consequence is, it has a tremendous environmental impact.

 

20201210 Ryan Kooistra and Pool Preserver trailer

 

Environmental Impact

Ryan: The environmental fact of saving and reducing or recycling all that water, it's a huge impact for the environment, especially here in the desert, where there's always a constant drought.

Ken: A hundred of these Pool Preservers™ will be able to prevent the dumping of, or in fact, save a hundred million liters a month. Look at it like this, a hundred Pool Preservers will be able to save a billion liters of water a year.

End of presentation

 

 Water as a Career Training video

Career Training

Riggs: There's a very tantalizing sneak peek, for sure. And so, what's happening next? Well, we've been building the Water As A Career training. I think we're calling it The Waterpreneur University™.

There's various schools of thought inside the company, but what's been happening, and I want to do a full report on this probably next week, and we'll bring on our VP marketing, Alan Wallace, to report on it but what we've been doing is building a whole lineup of videos and also going into the market with Ryan, the guy you saw on screen there and building marketing programs, using Facebook and physical stuff like door tags and so forth, all that's has been packaged.

So, I'm going to play you a little, the training video just for fun to show you the kind of a material that's been produced here. It's a whole series, but this is just one of them. I'll give you a quick sneak peek here.

 

Waterpreneur Instruction video Quoting the Customer


Sneak Peek Video Presentation

 

20201210 Dwight Barber OriginClear Partner


What to Charge

Somebody gives me a call, they want to know about the process. I explain the advantages, here's the advantages of doing it. I don't know the cost difference because I don't know what that person is going to have to incur, cost-wise to drain the pool themselves, hire someone to drain it, I don't know what their water costs are from the city or for wherever the municipality, the water company, whatever it is. So, I don't know what their costs for that, but I do know what I'm going to charge them once I do a site visit with the client.


Site Visit - Measure the pool


Exact Quote

When I go there, I measure the pool, get the size of the pool, I test their water, make sure it meets the parameters that I want to work with. At that point, I can give them an exact quote and if they want to proceed, then I'll go over the logistical side of it, where we're going to park. Here's where the hoses are going to go. Here's what you can expect. Here's about how long I'll be there.

 

Contaminated Water Sinks

Don't get in the pool. Some companies advertise, you can swim when we're doing that. No, I do not want you to swim. I want the water as calm as possible because that's how the process works. The heavy contaminated water sinks to the bottom of the pool. Purified water stays on top, it stratifies. So, we're constantly pulling the worst water in the pool, so the water is not sanitary.

End of Sneak Peek

 

Development status of OriginClear Financial fund building


Our First Signed MOU

Riggs: So, that's just enough to tease you guys. Now, I got another huge, huge announcement here. So, we've got our first MOU (Memorandum Of Understanding) signed. And so, let me give you some feeling of what's going on here. As you know, last week, I told you about good faith discussions in progress for the fund development.

So, update of 10 December, we got our first MOU in hand and I am going to show it to you now. So again, we've got two prospects for 1 million each. One has the first MOU in hand. The other one, we are in discussions, he's traveling, so I didn't actually write that down here, but that's going on there.

And then, the $12 million one is active discussions right now. Those are going well. And the $6 million one is not active at this time. So, depending on how you cut it, it's maybe 14 million, it's maybe... Who knows? But it's a nice range of prospects.

Now, the $6 million one we believe would follow the 12, he's kind of not a leader, a follower, so that's kind of the status there. And remember that, even though we believe it's a valid program, there are no guarantees.

 

1M Dollar MOU

 

Special Direct Investment

Now, let me show you that MOU, which is kind of fun. So, this was signed on the seventh and in fact, I'll put it in full screen, it'll be even easier to see.

So, what we have here is the MOUs that we are signing, we basically say that we're going to build this internal fund to finance these water equipment rental programs. I've shown you the spreadsheets, I'll go through them again.

What we'll do is we'll offer a special direct investment, which is a minimum of $1 million with various dividends, et cetera, as you know. But the additional twist of 25% of net profits from the financing of water equipment systems by the fund. So, that's really interesting to these investors.

 

Security Interest

Also, bolded here, investors shall have a security interest in all equipment rented or provided as a service. So, that means that the investor has quite a degree of protection in this, so I'm not going to go through all the details here, but basically that is... Oh, and the cool one here, "D. In the event OCLN is listed on a National Exchange, offer investor the right to ring the bell at the time of listing."

This is something that is just super cool. Everybody is up there, high up above the trading floor, "ring, a-ring,a-ring,a-ring," and it's super fun. Now, again, we're not telling you we're going to go on the NASDAQ very, very soon, but we believe this is a key step.

So blah, blah, blah, all the usual boilerplate, but we're essentially going to work together to make this happen. And it essentially was signed on the seventh. So that's really, really fun and I'm not going to name the investor, but we... He's probably listening to us right now and I greatly appreciate it. So, thank you for that.

 

The Economy - Your concerns

 

We Read Your Answers

The next topic is, what about the economy? So, basically the feedback I got from the briefing last, at the end of the Zoom briefing, there's a survey and we read your answers. So, please do tell us what you think.

So, here's some of the things you brought up, the concerns were basically having to do with, first of all, the current economy. So, I'm going to share with you what's going on with the current economy.

 

Dollar collapse review

 

Inflation is Back — Big Time

DollarCollapse.com has some great set of charts here, so let's take a look at these things because they're pretty intense. And here it is. All right, inflation is back big time. Now, people believe that inflation is dangerously low. That is becoming harder and harder to defend. Look at iron ore, it's gone, in five years, less than five years from about $40 to 130. Copper, this is this year.

Look at that, from 2.2 to 3.4 of whatever, I don't know what these units are. I'm not that much up on it, but, and this is again, 2020. Look at nickel, look at aluminum, right? These things are just taking off, zinc.

Now, these charts are for industrial commodities that while not something individual consumers tend to buy, so they're not in the "cost of living", of course, people build things with them. So eventually the prices of cars, et cetera, go up. Speaking of buildings, U.S. Home prices are up and they're growing. In fact, you have a little, right here... I'll zoom this in some more.

Here we go. This thing here, look at the little tweak right here at the end, in the current latest period. So that tells us that in fact, we are above previous numbers. In fact that the zero hedge article that discussed this, has a better chart. They've done a better job of charting these things, but they based this on that dollar collapse article.

 

20201210 Home prices

 

Home Prices Accelerating

There we go, S&P Case-Shiller U.S. Home Price index. Whoa, look at that. Home prices are now higher than they were during the previous decades housing bubble and they're accelerating, which is crazy. So that is a really, really interesting indicator.

Trade-weighted USD Index


Lost Confidence

Here is a shocking one, the trade weighted U.S. dollar index. It basically says the dollar, which was in March, almost $100, $101, something like that, 101 it's an index.

So, 100 would be whatever the baseline is. We are crashing. So this is not a good sign, because look how we were from 2018 up, we were moving up. We were in a nice uptrend, and starting in February, things started crashing as you know, came back. But then, I think confidence has been lost. So, this tells us a heck of a lot.

So I'm going to come back here. So all these... When you start seeing commodities take off and you start seeing home prices take off and the U.S. dollar falling as a trade indicator, you've got a problem. And in fact, we have a very, very good writer, he or she, I'm not sure who, because they're not identified in these things.

 

Input from our listeners


Dollar Devaluation

(Riggs commentary included parenthetically)

"I believe we are entering a time of dollar devaluation, absolutely, that may also result in high to hyperinflation." (Personally, I think hyperinflation is a few years off, perhaps 2025, but it's something to really think about.)

"Several disruptive technologies may affect job growth and result in recoveries without new job additions. IIOT (which is industrial internet of things, those are all the machines that automate industry) and also the internet of things (which is home appliances and so forth), Skynet, (which is this writer's term for... That was from the Terminator, Skynet became aware. We have an aware network, for sure) Robotics, machine intelligence and advanced, artificial intelligence will become normal. I also see the growth of blockchain and cashless monetary societies, gaining steam. China's already, essentially cashless, Euro is heading in that way."

And finally it says, "Globally, I'm not sure yet how the new trade Alliance between China and Asian countries will affect the U.S. economy." (China made its own separate deal with other Asian countries.)

 

Real Value Goods will be Affected

Riggs: Okay. So I think this is very accurate. Combination of dollar value, believe me, you think a lot of money has been put out in 2020 to save the economy, wait for 2021. It's going to be amazing.

So the dollar is going to be handed out like popsicles and it's going to affect the things that have real value, hard goods, real estate, anything that goes into manufacturing, commodities, of course, right?

 

Joblessness

So somebody is chatting to me... And Darrell Polson says, "Interesting book by Martin Ford, Rise of the Robots, The Threat of a Jobless Future." [Rise Of The Robots. Technology And The Threat Of A Jobless Future]. Very interesting, very well said.

So, there are jobs in the future with all these technologies, but you have to be technology trained. Not only do we have a broken education system, we just spent the entire year in not training our kids.

So we've seen 400%, 600% drops in tests on math and so forth, it's been very radical. So when you have an untrained society, you have a lot of joblessness. Okay, I'm not going to belabor this, but you see what's going on here. 

 

Topics being covered by Tom Marchesello in this briefing


Here's Tom Marchesello

Tom will cover these. These are questions.

Tom: A tall order.

Riggs: Ensuring the ability of USA organizations, design plan, build, test manufacture, and deliver products to improve worldwide countries. So those are really trade concerns, but also do we have good U.S. organizations?

Another person said sees an opportunities market, great. But another one here, lack of local resources to fund infrastructure. I think this is a very important one. And finally, the incoming administration. With that, I'm going to turn over the podium to Tom.

 

20201210 OriginClear Insights from Tom Marchesello COO


Company Repositioned

Tom: Thanks. Appreciate it. Appreciate everybody tuning in tonight. Now it's interesting Riggs, I mean, we've been talking about where's water fit in the grand scheme of things as far as the economy and what trends we've been watching. And that obviously has a lot to do with how we position our business along the curve.

So it's good to see we're always on top of it. I like the moves that we've been making as a company. I like how you've repositioned us, bringing in guys like Ivan and the team, for water entrepreneurship and Philanthroinvestors® has been really cool because you guys have been looking ahead.

And then ironically, it's like every single week, it just feels like another piece of news comes out that just keeps validating all this stuff that you've been doing for the last decade and especially the last couple of years. So, it's a very interesting time.

Riggs: These are fast moving times. So you've got some macro trends for us.

 

Not Regulated

Tom: Yeah. It's interesting, we talk about what trends are going because we obviously want to position on the curve, make sure our business is positioned properly. And one of the ones that's like the biggest macro trend we keep tapping into, as we keep tapping into the concept that water becomes a commodity. But one of the most important bullet points about that is, do you realize that over the last 10 years that the price of water rates has risen over 80% nationwide?

Riggs: Yes. Yes. And it's not regulated either. That's a very important point.

Tom: Completely unregulated, so, when you look at the rates of water all over the place, you start talking about the difference between water for residential versus agricultural water versus wastewater, processed water.

And then in that one way, the water you're buying in your house, so you can drink it or the water you're using for your industries or your commercial enterprises are paying one rate, which typically maybe comes down to they're paying a couple of pennies per gallon, like fractional pennies per gallon, technically when you really get down to it. I think I calculated it, 2/10 of a penny is probably what you're paying for a gallon of water at your house, right.

 

Treated Water Costs More

Versus if you start treating that water, what does it cost to have treated water, which is really where we're at, right and how expensive really could that be? And the truth is sometimes it could be as much as twice as expensive for the treated water or sometimes 10 times as expensive for the treated water.

So when you bring that up, the point is a lot of these infrastructure projects around the country on governmental dollars have fallen behind because the actual costs of treating the water became so exorbitant. And they couldn't make the infrastructure work at those centralized locations anymore.

 

Top trends influencing water industry future

 

Macro Trends

And you can just easily see that in how far behind we fell, infrastructure wise. And so when we talk about trends, we've been playing on this big macro trend, obviously taking place with the need for infrastructure and the fact that they've been behind and we're putting in onsite stuff.

And at the same time you have political change that always puts pressure on us, right. And now we're always trying to say, well, are these two things going to match up? Are we going to have somebody who's in our favor? Or are you going to have something that falls out of favor?

So I think we're heading into an interesting time right now, just in this political transition, right? Whether Trump stays or Biden comes in, either way, you have seen a lot of talk about bringing new infrastructure in as one of the main planks to drive growth in America and boost our own economy and drive American excellence. So I think that's an interesting trend that's going to happen.

 

Infrastructure Projects and Green New Deal

If Biden comes in, we see that concept of that green new deal that they've been talking about merging with this concept of the infrastructure rebuild projects. And you've already seen them starting to talk about it just in the last couple of weeks, since the election, which I think is interesting.

And that plays into the other issues of people talking about why certain neighborhoods get hit much more hard than others. And they typically try to address that by saying the economics aren't fair. Certain States or certain cities are falling behind because they were economically disadvantaged.

 

Old vs Newer Infrastructure

That's not exactly accurate. What you're really seeing there is a difference between old cities and old infrastructure that was maybe put in a long time ago versus new cities and new suburban areas that were coming online, newer, where the infrastructure was put in place that was more in line with the more modern technologies that should be deployed

And what you're now seeing is those old places and old towns where maybe they have things like septics. They're rotting in the ground and they're leaking into-

Riggs: People are moving to those locations.

Tom: Yeah. But they are not allowed to keep that same dirty old septic system now. So if you're going to go do that rebuild and that redevelopment in those cities, you're going to have to put in some new infrastructure.

 

Biden talks on his infrastructure plans


Presidential Plans

Riggs: Let's catch that slide. We've got a slide coming up on that. So, we were obviously talking about the presidential transition, how might it affect it? And last week I showed a slide, the tech crunch article, that was talking about how there is very high on the list to "build back better" and to be completely apolitical, in a previous coverage, I showed what the Trump administration has got going as well. So what are your comments, your feelings about that?

Tom: Well, Trump had, for a long time, talked about an infrastructure bill. I was actually disappointed he didn't do it, because he should have. Biden actually talks about really pushing the envelope towards infrastructure plans and the build back better concept.

So I think sometime in this next four years, you're going to see this thing happen. It's a no brainer. It becomes very similar to how, like when the troops came back from World War II and they build a lot of roadways and bridges and infrastructure type projects, that's the kind of thing you could really use to boost the economy, and it drives a lot of boost.

 

Sniffing Dogs

Riggs: COVID-19.

Tom: Oh man, I'm still disappointed that we've had to deal with this thing for so insanely long. But we did learn a lot, obviously. I was thinking about, what were the lessons learned here, obviously. Aside from personal lessons of being satisfied and staying close to your family, which is good stuff. I think our industry, however, learned a lot. And one of the things that we did learn was our industry was really good as an early detection system.

Riggs: Yes.

Tom: We were like the sniffing dogs of COVID through the sewer systems. And they found that there was obviously a connection between people's waste and the virus being within it in a live status. And they said they have new monitoring systems actually really going into place now because of it.

 

New infrastructure bill and our products


The Breaking Point

Riggs: So true. So on the infrastructure bill, like you said, I like that we touched. Now, how does it relate to us?

Tom: Well, I think actually this is really good because we have noticed many times ... As a matter of fact, I was on an engineering call yesterday and today with more than a dozen different engineering firms. And in those plans, they all are calling for new infrastructure. One area where they're failing, for example, is a simple lift station. Many cities have them, the lift stations are old, 30/40 years old, they're corroding, they're made from concrete or whatever. And the truth was, they kept pushing it down the road, pushing it down the road, pushing it down the road, and they have to do it now, they have to do it.

Riggs: They're losing so much water.

Tom: They're losing a ton of water. The water is getting more expensive. They're having all sorts of EPA problems because of the fact that they're not doing the work. So now they're at the point of the breaking point. You're actually breaking. You're breaking, you're flooding your streets. You're breaking, you're letting septic live out into communities. They just had one the other day where basically they were having a big contamination down in Miami, as a matter of fact.

 

Contamination and Septic Systems

Riggs: Speaking of contamination, septics.

Tom: Yes. Now this is an interesting thing. So take states in the Southern States like Carolina, Georgia, Kentucky, all the different places where you had some older communities. But in those areas which were fairly rural for a long time, you'd have septic. You'd have a lot of septic up in Pennsylvania as a matter of fact, Ohio. Now you're getting to the point where you're not allowed to do these things anymore. You cannot build a new house with septic in.

 

FHA septic construction requirements


FHA Requirement

Riggs: Here's the FHA requirement. In fact, look, you have to have such a huge lot. I mean, 100 feet, 100 feet. You start looking at something that's going to require, I don't know, half an acre at least. So that you can't build the subdivisions with septic, it's just not going to work.

 

OSS — The Interim Solution

Tom: So here's the interesting thing. So Dan Early and I spent some time trying to figure this issue out, because we know that there's the difference between I have a septic, I'm supposed to connect to city sewer systems and municipal, and there's a time gap. So, what happens?

 

A Modular Water Systems closed loop zero liquid discharge  system

 

What you're watching happen now is you're watching an interim step coming into the market of Onsite water treatment [Sewer] Systems (OSS) for these localized solutions. So what they're suggesting happen is, you take the old septic, you upgrade it using an onsite treat environment and you use it for a certain period of time to bridge you into the point at which you can finally connect into a more standardized municipal system.

Riggs: And here's the one we built in Pennsylvania.

Tom: Yeah. Yeah. So this is becoming very common now. So we're seeing that there's an entire industry of supply chain, which we connect to, which is a little downstream from us because it's more of the commercial side, but it's at these nice footprints and good price points where there's a bunch of pump and haul guys out there and septic providers and well drillers who all need these products to go into the ground at all these residential commercial locations.

 

Rise of Modular - "Lego Blocks"

Riggs: Why do you say OTS (Onsite Treatment Systems)  is the next new old thing?

Tom: Because it's not like it hasn't been out there. Onsite septic and water treat's been the original. You dug a well in your backyard, you drilled down a bunch of hundreds of feet and you pulled some water out. There was your first on-site water that everybody used to have before you basically connected yourself in.

But now you're dealing with, now I got to do water supply and I got to do wastewater treat all in my location. But I'm going to use all this modern technology, which is all industrialized, stamped out using our modular concepts, but safe because we're using the heavy plastics and the non-corrosive materials.

Riggs: Lego block, like you were saying.

Tom: Lots of Lego blocks. Yeah, because I really think about it. It's like, the Lego block concept extends beyond just our version of let's do Lego blocks for what we're doing. What you've been watching ... and I watch a lot of TV shows on house building and industry.

And what you notice is this move towards the Model T Ford assembly line of construction. So you're having construction of modular concepts. You can buy an entire bathroom, completely modularized, pick it up on a trailer and install it in your house. You could do an entire kitchen, completely built at a factory, and install it in your house.

You can get a small, small home or a small addition to your home and snap it onto the back of your house now. There's all these crazy, cool concepts that are all modular now in their design and build. So architects and engineers have really caught onto this. It's a really cool commoditized way of doing really cool stuff fast.

 

Much More Sophisticated

Riggs: So is that really what Dan is pushing in the webinars that he's got and so forth? Is this concept?

Tom: Well, Dan's really pushed it into a whole different area, because Dan is so much more sophisticated than that stuff. It's just more of like, there's a trend that's been taking place that people are catching onto.

So as we're talking about things that Dan's done for over a decade now, of bringing the Modular Water™ treatment concepts forward and these onsite treatments, he's meeting a world where the consumer market and the building markets now also has their concepts of modular. And so people are looking at you going, oh, I get that. I understand that now.

Riggs: Right. He's been preaching in the wilderness for so long and now it's kicking.

Tom: Yeah. And now he's got something that people are like, oh, I get it. It totally makes sense. You're smart. I'm like, yeah, this is exactly right, we're totally smart.

Riggs: It's great to be right in the end, but here is a big, big trend.

 

Water Futures - the biggest thing to ever hit the Water Industry

 

Water Futures

Tom: Oh my God, it's so big. So big. So I love the water futures market. I'm so ecstatic because I'm like, my gosh, this is a decade, two decade big monster, big thing. Because I used to work with the Chicago Mercantile Exchange, that was one of my career moves some years back and I was involved in some different commodities markets and futures markets and so forth.

 

Bringing Futures into the market


Big, Big, Big Stuff!

And one of the things I loved was there was always discussion around bringing water into the commodities market. And now it's taken a while, they've had a couple of failed attempts at it, but this one's a real one where they're really bringing it in. And when you're talking about the commodities trading market in Chicago, you're talking about a quadrillion dollars worth of money that's flying around the markets there. This is big stuff folks. Big, big, big stuff.

 

Water Futures contract


By the Acre-Foot

Riggs: Fantastic. And in fact, we have here the specifications of the actual futures contract. And it's essentially an acre-foot, and everything's done by the acre-foot. Now, an acre-foot is basically one acre of water, one foot deep. And depending on the location, it's basically two to four homes per year is one acre-foot usage.

Tom: Just give them an idea there. An acre-foot, because it's like, what's an acre-foot? So there's a dollar per acre-foot, is the way they do this calculation. So for us it's 325,851 gallons. There you go.

Riggs: There you go.

Tom: There's the number.

Riggs: And this is the price.

Tom: Right. So $490 will get you 325,000 gallons of water for agriculture.

Riggs: Now this is interesting because there are people in California, for example, still paying $25 an acre-foot from old, old contracts. And meanwhile, you've got the city of San Diego paying as much as $1500 with the desalination plant down there. And somewhere in the middle here is this futures market and it's, I mean, it's trading. It's not trading a lot, but it's trading and this is very meaningful.

 

Water futures trading graph


Why It's Meaningful

Tom: It's very meaningful. Because for us, one of the things that we've always talked about for years is, how do you price water? Because pricing water was very arbitrary, versus, this will give you at least a baseline that we can all look to and we can understand together collectively. Because obviously now they've scaled what they're talking about.

California water use for agriculture in this volume. But now I have metrics. I have the amount of water, acre-foot, I have location, I have a situation, I understand what they're using the water for, so use case, and I understand the condition of that water. I know what agriculture water is because we treat that kind of thing as well.

So now if you want to understand $480 worth of agricultural water versus when I want to now take water and make it drinking water, or I want to take water and clean it to make it reusable water, or recycled water, at least I understand where that comes into when I want to pay extra money to make it drinkable, potable versus dealing with blackwater. And this gives us a nice middle ground to point back to.

 

Building A Water Marketplace

Riggs: And also, I think it socializes the idea that we've had all year about building a marketplace for the actual water treatment systems. The water equipment market, tying it into this water itself. So I think it builds acceptance for the idea. I think it was very bullish, I agree with you there.

Tom: I think it's super cool. It's just like, oh, this is cool. I can track this just like mortgage rates or just like any other commodity concept. It gives me a financial baseline to really attach.

And really, I mean, when you really, you throw it out there, because I'm going to go there, it gives a real value to the work we're doing every day. So when I'm talking about like I'm putting together a 50,000 gallon per day system that's going to treat water, I understand why that's so valuable. Why that helps somebody so much.

Goldman moving to Florida


Companies Relocating to Florida

Riggs: Yeah. So with that, I think I'm going to move on. And I think that you've really pointed to some great trends, so thank you.

Tom: You're welcome.

Riggs: And I wanted to keep you around, because guess what? Once again, who's moving to Florida?

Tom: Who's coming? Who's coming? It's not Elon Musk, he went to Texas.

Riggs: Goldman.

Tom: All right. Woo hoo.

Riggs: Goldman decides to go. And of course, it's not just, it says in the bottom here how many others are interested in this. And there's Elliott Management Corp., Blackstone, Citadel. There's just a lot going on here with this Florida move. And it's really, I have to say, we think New York is in a hell of a bad spot, but certainly it's good for Florida. So I'm not going to get into further on that because the next piece of news is, of course, that we're back at the LD Micro event.

 

20201210 Back at the LD Micro Event

 

Reporting on Breakthroughs

Now, LD Micro for years, and years, and years has been held in Los Angeles at the Luxe Hotel. The Luxe Hotel, of course, is not open, and so LD Micro was purchased by SRAX, a public company that does shareholder tracking and so forth. And so, we'll be presenting at the 13th Annual Main Event.

 

LD Micro event with unlimited attendance


Unlimited Attendance

We presented, as I said, at the Luxe years ago and it was very good. This is going to be a much larger event because it will have unlimited attendance and the SRAX people get to literally two million people in their database.

 

Reporting on breakthroughs


These are the shareholders of the companies that they track and we'll be reporting on breakthroughs. So to register, just go to ve.mysequire.com and it's going to be fun reporting on this, 10:40 AM EST on the 14th. So be there or be square.

All right, moving on here, I've got a nice little report. This is a very good video by Ken that's been updated. I played it before, but this is an updated version


Start of video presentation

 

Ken Berenger presentation video

 

Biggest Wealth Creation

Ken: Hi, Ken Berenger from OriginClear. You know, we think the biggest wealth creation event in the past 25 years has been unlocked. And we think it's going to unfold very similarly to the telecom boom of 20 years ago. Here's what I mean.

Okay. So if you could recreate the telecom boom from 20 years ago today, which company would you buy? Which one would have been the best? The great answer is it really didn't matter. Any one of those companies that were involved at the dawn of that innovation really did phenomenally well and now are part of a $2 trillion telecom market.

 

All early telecom companies did well


Rough Years

Now, of course we know today that everybody who invested early killed it, but in the beginning, the first two years were very rough for investors. Right? Perfect example, AMT in 2000 you bought, you were down big by 2002, and then of course, a hundred fold rise in the next 15 or so years.

Again, Crown Castle in almost identical situation and oddly enough, the turnaround happened almost to the day as it did with AMT. And rounding up the top three is SBA Communication. Yep, the chart is almost identical.

 

20201210 Sold into the weakness

 


So what can we learn from this? So if you really knew in your gut, that cellular telecom was the future, you just didn't have the benefit of timing the market. How do you avoid selling into the weakness too soon and avoiding the 100 fold increase you would have seen?


 

Hold for the miracle


Get Paid to Wait

We think the attitude of getting paid to wait for the big thing to happen really solves the problem. Most of the early pioneers cellular telecom investors, if they were getting paid to wait, probably would not have sold too soon. We think the investment structure getting paid double-digit yields to wait, could make all the difference in the world.

So changing everything takes time. Fortunately Einstein said that compound interest and time are the most powerful forces in the universe. We offer a 10% corporate bond that compounds annually. Your principal will double in seven years.

Now, if you want to redeem it earlier than that, you can at any time at 200% in stock and that's priced at the time of conversion, but you'll also get up to 400% warrant coverage, which you'll exercise only after you're already in the money.

20201210 Telecom analogy comparative scenario


Investment Structure

Here's what our structure would have looked like for an early telecom investors. As you can see, the first seven years, early equity investors made no money. With our structure, they would have already been up 100% on their money in the first seven years. They could then convert into 400% of their original investment. Instead of seeing a hundred fold return, had they had this structure, it would have been a 400 fold return.

 

20201203 Water goes local

 

Income Generator

We finally built the ability for investors to own these micro utilities everywhere. Recession, no problem. Inflation, no problem. You want to depreciate it. We can do that too. But you're not banking on real estate and you're not banking on the oil commodities market.

Now, we're going to own these at first. We're going to build a fund. We'll launch it. We'll figure out what we need to know. We'll have this great income generator, which is great for the investors. And then when we're ready, we'll launch a worldwide marketplace.

 

20201203 Water companies speed up


No Selling Necessary

So the launch of the marketplace was created to solve water company problems that we were experiencing we think everyone will join. Why? Longterm service contract income from water companies, dramatic increases in margins, and the ability to simply build and place systems anywhere they're needed with no selling necessary.

 

20201203 New asset class

 

Water As A Service

And the reason it's easier for water companies is there's no more selling. You're simply supplying a need. Everything's turned into a very manageable, operational expense. They can start with short term rentals, they can finance it later. We can handle it all. The really exciting part longterm is that these assets will be available to simply pay the meter by the gallon or the ton very much the way you pay for electric service now.

 

20201203 Four Steps

 

Building a Micro Utility Asset Class

So let's look at the next couple of years and where you come in. So step one, invest in a brand new kind of water company. Have all of the unlimited potential this presents, but get paid the entire time.

Step two, launch the fund. We've got numerous investors standing by who really want an alternative to commercial real estate next year. We'll split the very generous yields with them, but we'll keep the asset with the hopes of utilizing that to help us up-list the company to NASDAQ.

So step three, a little bit longer term is launch that Airbnb for water, just connect water companies investors, and kind of perform more of a managed services model, which becomes just a cash cow that Wall Street absolutely loves.

So what we build in the end here is a worldwide micro utility asset class. Metered billing means that the more water that is treated in the world, the more money is made. That's the first time that's ever happened.

 

Attractive to ESG Funds

We also think that, that could make us really attractive to ESG funds in the future. So this is why we think we can do to water what cell towers did to telecom. We can change everything and we'd love you to join us. Would you book a call with me? And of course, I have to mention our Safe Harbor Statement, which is here, and once again, the disclosures for this specific offering.

 

20201203 Transform - join today

 

Call Me!

So now you see why we're so excited. So if you're an accredited investor and really want to drill down and talk to me directly about how you can get involved in this, call me, 1-800-445-7427, or just set up a Zoom call on my calendar, oc.gold/ken. Now, if you want to join us on our CEO briefing, we hold them every Thursday night, oc.gold/ceo. We hope to hear from you soon.

End of presentation

 

Get paid to wait offering

 

Get Paid to Wait Offering

Riggs: This is the get paid to wait offering. And the reason why it's important to bring this up today is we were talking about hyperinflation. We're talking about the rise of various asset classes, and now you've got to get way ahead of it. How do you get way ahead of it? Well, you got to try and get the hundred times growth, right, Tom?

Tom: Yes. Sorry. I was like, yes.

Riggs: Thank you. Because look, that's the problem is how can you stay ahead of inflation and even hyperinflation, is by getting paid enough to overcome what is going to be... It's not going to go 200% inflation immediately, but you need to plan to have some big hits, get paid along the way for the big hits eventually. We won't go into it, but the cashless warrant is now one year, which is very, very good. And that's been revised.

 

Talk to Ken

 


And contact us again, oc.gold/ken is the fastest way to get there.



Next Week

What we're really going to do next week is we're going to dive into the Waters As A Career model. Tom, I'd like you to work with Alan to organize something we're going to show off... the University Academy, whatever we're calling it as it's being packaged up, as it's being based on actual successes. And that's going to be very helpful.

 

Chats

Well, it's been a long briefing, but I do want to take a look at some of the chats. Let's take a look. Wow, there's been some interesting chats. Darrell Polson:  "Parker County, Texas will not allow developers to have less than five acres if they're on well water." 

 

Thank You!

So with that, I want to thank you all for your patience. We've had a lot of people stick around and I appreciate your patience. Tom, it's been a pleasure having you on board. Next week, we're going to have a very exciting look at how we're building the career builder systems. And I hope to have more updates on how things are going with building the fund and so forth. It's really happening at lightning speed. We're getting ready for the Holidays, but we're going flat out here to finish the year and hopefully we'll also have some updates about our business. So thank you all. It's been wonderful. Enjoy your weekend and see you next week.

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