Time is slipping away ahead of our Independence Day so the update today is brief with details to follow on Tuesday. Without reservation I can say June has been a good month for the Company even with the challenges we face coming out of a bad year. It’s the end of a month and a quarter with good progress, surprises, challenges, and hard work ahead. We didn’t accomplish everything we wanted, but we can see we will get there.
At the suggestion of an investor, we are also going to start putting out a score card starting in July that will give everyone more of a glimpse of the day to day work, goals, and progress of the Company. We are still working on how best to do that and will be open on suggestions to make it clearer.
What follows is a brief overview of where we ended the month of June on our larger activities. It is not an inclusive listing.
Projects and Contracts
Cameroon: As we have previously discussed the Pesticide Sampling project is now in the data assessment phase of work. For the CAMWATER contract, work is underway on the Feasibility Study and Environmental Studies related to the sites for the installation of the patented Red Bird Systems, tanks and piping. On the main $28.8 million contract we will be flying to Cameroon in July to meet with the Minister of Economy, Planning and Regional Development, Minister of Water and Environment, the Prime Minister, and Director General of CAMWATER to kick off the next stage of the project. This step will result in systems being delivered under the contract beginning in the 3rd Quarter of 2016 and continuing over the following 15 months. We will also be discussing other, smaller projects for delivering clean water to the people of Cameroon.
China: The first Mobile Red Bird System is on its way to its pilot demonstration in Northwest China. This rural site was selected to demonstrate the capabilities of the system in an area with a growing need for robust water treatment systems. Our partner HSVW continues to develop new opportunities in China and this demonstration will also be used to further the market development. Immediately following the Cameroon trip our team will be in China installing the Mobile Red System to move this market ahead.
Nigeria: The surprising re-birth of our contracts and opportunities continue to move forward in two states in Nigeria. This will continue to be a slow steady development timeline through the first new systems. Once the new rate recovery approach is solidified then the rate of work will increase. We will recognized limited revenue on the project in the 2nd quarter and expect slow growth from the project the rest of the year.
Arizona: The services portion of the work, Feasibility Studies, Environmental Assessments and Permitting is continuing. Sites have be prepared for the Red Bird System and work is underway on the supporting infrastructure. We anticipate work accelerating in July and continuing to ramp up for the remainder of 2016.
Upper Midwest Remediation: This project is now in the reporting phase of work. The clean-up, which was more extensive that originally projected, was successful and the client now has a site that can be brought back into use.
European Project: This is a moderate sized time and materials contract that was briefly mentioned in a previous update. Under this contract we will be consulting with an EU based chemical company on water, remediation and sustainability issues on an on-going basis over the next 18 months. This work, will be completed from the US office as well as a few trips to locations in Germany, France, and Belgium.
Opportunity Pipeline
We are seeing a growing interest in our systems and services. Key areas where we are pursuing specific opportunities outside of our current markets include India, Kenya, DRC, South Africa, and the Philippines. Our representatives continue to work throughout Latin America.
Financials
Filings: We are still behind but making progress on this critical area. First in the pipeline of filings will be the restatements reported in our previous 8K. These are a necessary first step as we finalize the 10-K to be closely followed by the 1st Quarter and 2nd Quarter reports. Now that we have independent accounting in place, we are gaining on the backlog of work and increasing our efficiency on the monthly closing. This is all part of our commitment to get through this road block and remain current going forward.
Debt Reduction: We have paid off, with cash, over $950,000 in mature traditional and convertible debt.
Stock Repurchase: We have repurchased stock in the public markets. As presented in the 8K discussing this program, the amounts will be reported in the next financial filing.
Forward-Looking Statements
Certain statements in this presentation constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business and political conditions in the geographic areas in which we sell our products, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which we are engaged.
The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this presentation and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company¹s expectations.
Company Contact:
Kevin Jones, CEO
412-374-0989
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