Our Core Business Takes Off
[Music] well hello everyone and it is the 19th of august getting close to labor day when we technically get back to work but wait a minute we've been working all summer what's up with that [Laughter] tom marchicello in the house how you doing my friend good good i'd like to say i want a tropical beach but it's just a bad guy well you actually do live pretty near a tropical beach i mean there is yeah i passed by it that was a problem with it we have red tide right now and it's bad dude it's like oh my gosh it's stinky and bad news i know that's really really gnarly i know it is uh is not great but it is a fact well you know here's the problem it's all the nitrates falling into the ocean the bay in the ocean right well we talked about that piney point stuff it's like you can't continue to pollute with you know all this extra phosphates and nitrates and stuff and think you can just dump your garbage in the oceans and the waterways and you know it just doesn't work you overload the system and it doesn't have its ability to oxygenate so you take your nice anaerobic uh aerobic systems and you make them anaerobic which means they're starving for oxygen and things die algae does its job that's right right it's actually very good well people are coming on board i'm going to go ahead and do the honors here and then we're going to step right into your report so let's just um do some of the so it is water what what wing as we call it water's a new gold and it is the world's only vital why because without water where are we scarce because fresh water is a tiny percentage of the world's water and we keep wrecking it and finally recession proof water never fails to go up because the worse things get the better it is for water and it is unfortunate fact but it is what makes water such a really interesting asset so uh of course we have heather on the other line interpreting and in live in real time and you just click on that globe symbol and you are listening to this show in spanish all right and then we have the usual safe harbor which says you know we're doing our very best just tell you how it is this is a very frank briefing every week i tell you exactly what's going on and more than any other public company i believe in the world nobody else tells you as much as i do and of course i have to say all kinds of disclaimers uh we think it's very healthy but at the same time we have to tell you that well sometimes we just have to correct ourselves that's how it is so uh with that i'm going to move into tom martillo's quick update on operations now as as you recall ba-boom we had some things but a ban yeah so we're doing good the team is really uh putting it putting in the work and uh recently as you can see by some of the press announcements that regularly share we had uh had a really successful modular water system sales sequence where we finally got past a million bucks on that first half and then progressive order then came in screaming with a bunch of really good wins and then we inked a very strong contract with three segments to it that allows us to basically hit uh quite a significant number uh of on our sales and it's 5 million bucks plus worth of equipment for different power plants with a very high quality client and we are very very proud to be able to do that project i did not know that um before we acquired pwt mark stevens did this a project for the same power company back in 2015. yeah they've been long-standing customers uh we've had a quite a number of long-standing customers of this caliber and so they've uh you remember pwt under mark's leadership's been around for 25 years and i had had it you know for about almost 20 years before that so there's a long history of us doing a lot of work with a lot of great great clients now this was a while ago and and tom you know i had this conversation today about what is going on that all of a sudden we're getting all this business what's what's your take on that yeah i think you know it's it's like the perfect storm in a couple different ways you know one of the ones where uh you know we we were doing well personally executing to get ahead on our sales we purposely went out and stuffed the channel in our pipeline with more sales so we went into a different mode where we presented to much more engineering firms and design and build firms and architecture firms and we went to different partner firms and we presented our capabilities we did a lot of meetings a lot of education that then turned into some longer lead time type sales that we matured and nurtured longer and they then started kind of coming in and closing off so that was the number one best thing that we did that was directly our responsibility and the team really you know stood up on that um we talked all the time about you know covid was kind of a weird change and there was in our benefit because people wanted to do business with american-made american companies and then now we have this infrastructure bill that's coming on the heels of that as well and that's another another positive i was looking at just even the growth rates of our industry our industry traditionally you know used to track along at like three four percent growth rates last year clocked 7.5 growth rate this year and next year on track to do eight to nine percent growth rates so we're just seeing acceleration just in our category for water wastewater and that's i think you know rising tide lifts all boats so and but then they got along with that seem to come these supply chain issues yeah yeah we are definitely seeing supply chain issues you know it's a it's a fact of life in a lot of different industries but you saw basic material issues hit in steel aluminum copper then you saw supply chain now then impacting finished goods so pumps valves hoses things of that nature uh and we also saw some impacts from you know just like weird stuff you know shifts in the way the manufacturing happening plus you know some changes to who's who's able to deliver so there's just longer lead times we have to be a lot better and a lot tighter about ordering in advance try to get some something in our favor you know oh yeah and we've been this is where some of the capital that we're accumulating we should be able to use it to um talk a little bit about that that special plastic we use and how we can get some control of that yeah so it's an interesting thing so we we have like a really incredible capability with our special plastics where we use these you know tough thick plastics that are super durable and that's a replacement for the old steel you know fiberglass type tankages and so you know we have different vendors for this type of material but one of the places that we were able to source the material and get it to us um you know there's a couple different vendors we were purchasing more of our stuff kind of more just in time and it was okay while we were operating you know in the past but now those lead times have gotten so long and we have such a big pipeline of projects we have to deliver it's easier for me to buy a bulk of the plastic material coming from the factory rather than the middleman and then i can have it sent in a container put it on site so that i just open the doors and pull all the material out as i need it and build my tankage materials and we'll actually end up saving ourselves you know 20 percent just in the material itself i buy in bulk so that's kind of stuff that we're finally able to do because we have a nice backlog we know who we're doing business with and if we order properly i'll also reduce my cycle time by about a month to a month and a half which allows me to turn over my accounts receivable quicker which brings in our cash faster so that's the stuff we're working on well that is super um thank you for that update and i'm loving how you know we we did all all this work in the last year almost two years now to to find ways beyond our core business to take off and other core business takes off which is great i mean it's great well what you want to say okay i'll take that too well you were in the industry a long time you were out there early saying hey water is the big deal like it's quite thing and then ken and you really crafted a good message around the fact that you know we hit a big trend it was a big trend it's it's a very big mega trend and it's not something that's just going away it's actually really driving into many many decades of of need you know i i do dabble every now and then in kind of the esg kind of aspects of the conservatorship and the environmental stuff as well as you know some of the issues of you know dealing with under underserved communities and there's such incredible demand for water everywhere you look let alone the stuff we're doing for industrial commercial right it's not letting up anytime soon it's it's amazing and i love the fact that we are in that segment that the big large water companies just can't get down to and i think a lot of the business we're getting at in texas is being delegated by some of these companies that just yes too much right well that's what we saw like as you see things like uh the infrastructure will come along we know some of the bigger contractors are certainly well positioned to earn that business first because that's they're just more politically connected which is great but then they sub it out right and we're always great as part of the people who eat on that subcontracting plate right so we've been around a long time we have good capability as long as we perform and you know we make sure we put our hand in the pie you know we take what we need to do and participate with everybody fantastic well tom thank you i'm going to continue feel free to stick around i'm going to get to another very interesting topic that you know about but in the meantime um let's go ahead and discuss the next little topic here which is we got some some press uh bankless times in phoenix now both of these stories are crypto stories um let me start with bankless here it is um [Music] origin clear wants to solve our water treatment problems and it really gets into you know everything all the cool stuff we do but then talking about um how we are you know building this water demand and the decentralized source solution so it's a nice good general article which is great and then um over here is one that's directly on cryptocurrency um project phoenix which is a very cool um publication and it gets into this whole story and this is written by me about what we're doing so that's kind of cool so that's the latest on on our in the news and more to come now i wanted to give you a quick excerpt from a new podcast appearance that's occurred and i'm going to go ahead and change over to the optimized video optimized mode to play that and i think you'll enjoy it so here we go yo this is doc g and today we're talking water with riggs echo berry on the earn an invest podcast rigs welcome to the show let's get really blunt here right from the beginning when will the world run out of clean water well you you might say that it's uh basically already done so we have these terrible droughts in in california happening there's uh water disasters happening on a regular basis throughout the world and only 20 of the world's sewage is actually treated so we have a real problem not so much of completely running out of water but the water being tainted increasingly the aquifers being messed up increasingly you just can't just take water from the tap we know that and i like to say that in america which is relatively okay the water will not immediately kill you so in other words you won't get typhoid and dysentery but you can get long-term disease from from just drinking the unadulterated tap water so yes water is broken and there's a good reason for it the first water revolution was big systems like the famous new york delaware system which is vast from the adirondacks on down and amazing clean water it really created new york and a lot of that stuff was done right up to world war ii since then we've had almost no infrastructure projects at all there's a backlog that by 2025 will be a hundred billion dollars a year of under investment in our infrastructure the answer of course is decentralization if businesses the businesses creating the dirty water treat it themselves then it takes a load off the central the municipality and allows for the current infrastructure to survive if a business you know did its own water treatment it can reuse it even if it's only to wash the equipment that's in that game but let's have the basics in place let's clean what we make dirty let's treat the waste water i mean come on that's the fact that we only treat one-fifth of the dirty water in this world means four-fifths are ending up in lakes rivers and oceans and that i'm sorry we're living a goldfish bowl who are origin clears customers what is the technology you're using the big water companies violia american waterworks and so forth they like to work with the big projects because it's the same amount of trouble for me to do a small city as a brewery so right away you have a separation and a market opportunity but here's the big problem that brewery is in the business of making beer not cleaning water it does not have the capital to treat that water it's it's like what am i doing what i don't want to i just want to pay my water bill can i just pay my water bill right and so that's we realize wait a minute why don't we simply provide metered water don't make these people pay up front we call it water on demand and now becomes water as a service so now you simply sign up with origin clear to have your water treated over a 15-year period let's say and you pay on the meter that is the new era which is people are very excited about it we call it total outsourced water why because not only do they pay by the gallon but we also take care of the filter maintenance just don't have a problem so we really think that we have almost complete ownership of this lower segment i mean as things stand now don't the municipalities doesn't the government kind of take care of it for you at the moment no the share of water a federal contribution to municipalities has gone from 76 to 9 either they will not accept it or they will charge very high rates for punitive tax tariff rates the inflation of water rates far exceeds the the core inflation index tell me about that phrase water is the new gold you say that it's the world's only vital scarce and recession proof market tell us why well first of all water's new gold we don't claim to be creative this is a term coined by fortune magazine and repeated by market watch and others so water is the new gold is the idea that it is becoming into in the new in this 21st century is becoming a tradable asset year in year out water just keeps getting more and more valuable because it's perhaps less of it perhaps it's getting dirtier etc one of the problems with waters is there's no water market water is local you can't move the water that's in clear water to atlanta but if you abstract it into a financial vehicle now you can enable trading and that starts to become really interesting for people to hedge their water costs and so forth what are the current opportunities for an individual investor you said that there are some capital opportunities if i am an accredited investor out there and i'm hearing what you're saying right now and saying wow i really want to get in on water well speaking strictly about us we we have private placements that enable us to develop all this stuff because we basically had to start from scratch it's almost like a biotech play in terms of duration the good news is that we we feel we're at the end of that death march and that we're actually getting some the numbers are starting to kick into gear so people can invest in origin clear i know part of your dream is that there'll be more of a global water market and i think that gets us into this issue of cryptocurrency and non-fungible tokens and how that can play into this market tell us what you've been working on right so the beauty of course i'm talking about water decentralization and the whole crypto world is decentralized finances basically the same thing but applied to money the beautiful thing about and people say well what's this blockchain thing crypto block change just software just say okay you know blockchain is very very good software that's highly decentralized it enables it all fine let's just put that aside we say cryptocurrency why crypto because it's secure currency because it is a money it is a coin and we think that increasingly the the world is going to create a coin for each specialized type of asset there'll be there'll be coins for everything there already are there's a very good solar energy coin for example it's worth spending the time and energy to represent water with a coin in order to be able to have a currency you got to have a connection between the actual commodity and the money so this advent of water on demand water as a service now enables us to go guess what when you invest in water on demand you will get a predictable return and it can be expressed as a coin which is really just a little smart contract that says i'm going to pay doc g x amount of profits for the next 25 years and because it's a coin and there's a market maybe he can sell that for cheaper and get it earlier and i like this stuff so it creates a market and and that's the interesting part about it is is to encapsulate the actual revenue that's coming from this new breed of of paper gallon water systems because the water and the money are connected and we can do a simple abstraction or packaging of it into a coin now that's very nice but it's also still elite it still only helps the investors there's a second part of it which i've been working on which is called clear aqua and clear aqua is the coin the water coin for the world whatever the rules are we're still working them out but you get into the community and you can start to say hey guess what i'm in south bend indiana and the water's crappy here can we do something about it and then it uses this very well vetted delegate system that coins like eos and steemit use to then aggregate and filter these these community concerns and turn them into proposals and on the other side we have the financing coin so it's a it's a dual token universe it's moving quickly by quickly i mean that we may have something perhaps by the end of the year because the good news about crypto these days is a lot of pre-built stuff there's a lot of white what we call white label i see it as the way to scale up why crypto has no boundaries it's frictionless a grandmother in korea can invest in a trailer park in alabama so it widely democratizes the water investment process it eventually creates a world market and it most importantly of all it involves everybody and in the developing world they've told us please don't give us free stuff anymore we want entrepreneurial opportunities and so that too will help in that area it seems to me what you're saying is crypto allows for the buying selling trading and funding of decentralized water in such a way that something like the stock or bond market never could because of the decentralization so you can invest in quote-unquote smaller projects in disparate places through crypto whereas up to this point all we can really invest in are these incredibly big projects from companies that are public and in the stock market or from bonds or whatever huge vehicles that have already been created crypto really gets lets you be much more granular and fund these smaller decentralized projects is that is that am i understanding correct that's correct now it's not to say that over time you couldn't do a similar thing with equities but it would take 20 or 20 years or more because you would have to establish so much infrastructure whereas you know crypto is much lighter that way you know it's good it's got this great intelligence you can program and what these cryptos represent is almost like you said these small payment contracts based on an initial investment they have to represent it's like pork bellies they have to represent an actual valuable thing you can say bitcoin doesn't represent anything but a coin a water coin would the investment grade so there's two toke remember there's two the investment grade one which we call dollar h2o is is the one that is like a bond and it's the one that pays you out for your investment and then the other side is clear aqua which is pure community coin it's not intended to be a security it's basically uh combined for water right but it's a way for people to push concerns up and have them eventually turn into proposals so i want to pivot for a moment you mentioned philanthro investors before talk to me a little bit about water philanthropy what is happening is origin clear involved in that what's fascinating because last year when we were starting to to develop this whole concept of water on demand this gentleman ivan anz came along to one of my briefings and he had built a real estate play called equity and help into i think it's number 85 on the fortune on the inc 5000 so it's incredibly fast growing what he managed to do is put a lot of people into houses they could not otherwise afford because they didn't have good credit because they were broke whatever and they were able to buy a house for less than the cost of renting it and then he called that concept philanthropy investing because the investors make double digit returns and they're doing good at the same time so then he broadened it he said well i want to do the same thing in water i want to do it in energy et cetera et cetera we very quickly got into a relationship and what they did was they basically leveraged their big real estate investor base and said started giving them choices right hey you can you can do a water thing and that really transformed us and they're in 19 countries a lot of them in latin america we've gotten investments already from argentina because we will accept real estate as investments and and we will we'll monetize them ourselves well let me tell you something people don't mind going okay i don't have to go through the trouble of selling this i'll just go ahead and deed it over and get a bunch of stock and get it up so yes we are strongly you know dedicated to water fillings from investing through our partners doc it never happens that a partner comes along and does this match how many frogs do i have to kiss but there is a prince once in a while this has been the earn and invest podcast on behalf of myself doc g i'd like to thank riggs eckleberry that's a wrap thank you now i want to make it clear that this is not a video podcast it's an audio podcast but uh doc chi was kind enough to let me have the tape and so um uh my brother stephen the man with too many cameras went ahead and turned it into a show and i hope you enjoyed it i think it was a good little interview and it worked well so um let me just check out there's some um there are whoa there's some great stuff here from ivan um one with all kinds of good stories about how the world is running out of water and now um i'm happy to say that that equity and help made it the third year in a row on the inc 500 all right so um they they are a number 374 on the inc 5000 and um they're but they're on the smaller group which is inc 500 and i believe they're very very high up in the florida group so my congratulations to ivan who's um along with bella his wife artie the ceo uh vendi uh who's a vp of expansion george mentis who's joined as a cmo and all the other team that are helping us you are amazing so that's greatly greatly appreciated so we're now going to quickly move on and wow third year on the 500 so cool of course we don't qualify because we're public but nonetheless it is an amazing amazing thing so i'm going to try not to well actually wait i got to fix this because the thumbnails it can't be optimized for video so let me just turn off the video optimization and share the screen again and here we go and that was doc g an internal medicine physician who um moved over interestingly enough to uh conversations about money and life so that was a really cool little um podcast much appreciated much more coming from that direction um and you'll be seeing my podcast bookings start up again okay quickly news from the crypto verse what's going on well it turns out that the nft world is taking off so nft search is peaked in march but then interestingly enough the actual sales on open c which is the largest nft market after a considerable lag have taken off now what does nft mean and it's a word i wish they didn't use because nobody understands it fungible means you can switch it a gallon of gasoline is a gallon of gasoline whether you buy it in new york or florida a dollar bill is a dollar bill they may have they have separate serial numbers but you can switch them they're fungible so non-fungible means they're unique you cannot switch them and this could be the tech we use for our dollar h2o dividend packaging and as you see nfts are really happening these nfts that we have are intended to be the lifetime value of these interesting contracts that we have coming out of these water on demand things and they get issued as tokens and each of these tokens holds the entire future value of dividends that's great it's future marketplace as i discussed with talk g but first we are doing this it's clear aqua network because we want to empower communities to solve water problems and so we're just doing the left hand side here which is you know alerts bubbling up through the clear clear aqua community to delegates and also there's something called validators it's all very cool and then eventually ends up with proposals where clearaqua.org funnels them over to the capitol to solve the problems status update well we have an updated proposal as you can see now we're going to have them involved we're going to have them build in a very flexible environment called flow track and they're also going to get involved with the origin clear website to make that very sexy and cool and in the sort of 75-day timeline we also will be focusing on building launch resources etc so we're on the verge of doing this deal uh we're just doing some of the little back and forth so that's where that's at and um new development planning for acquisitions and uh that is something that is near and dear to my heart as you know 2015 we acquired progressive water uh and in 2018 we uh did an aqui hire you might say we brought in a guru from um who creates these modular water systems and we got his patents and so forth under master license and so that was our second big quote-unquote acquisition but now we've received some term sheets to finance acquisitions now these are non-binding term sheets and this early stage but i wanted to share with you because um and again financing in the acquisitions may not occur so don't bank on it nonetheless um i'm very excited about the potential partners here and um it does seem feasible so the first thing is i really want us to be able to manage water on demand systems what do you mean by that well that's this stuff down here where you have sensors it goes into a database performance and you build by the gallon all that capability is stuff that is actually fairly sophisticated and we have a partner in india permianix one of our top licensees who has that capability uh and they've offered it and we'll be using that for sure but ultimately it's best to own a company in the space isn't it so that's that part and then the second big part is to acquire profitable industrial water companies for their revenue their profits their capacity right because back in water and demand we start getting bringing you know a lot of money on the capital side um we need to have the ability to deliver now the fact that we don't own a company is not going to stop us from giving them business but you make more money when you give business to your own companies so a little bit of a little bit of empire building going on here and finally a lot of them have great technology so again um don't back on it yet but it's for real and it's one of the most exciting things i'm doing tom and uh tom of course is a you know he's been around the block he's he's represented funds on the buy side and he is going to be teaming up with we have another exec consultant who works on a due diligence and so we have a team ready to go so that is really really cool um moving on here because um we are um we don't want to keep you too long but there's been some updates on our fundings and that is you know the series u which is basically 150 uh redemption of the public stock four potential warrants which means you get to have a guaranteed low price for four times in a row which is super cool um and then but the series v that is the thing that builds the water on demand program and now the redemption is 150 into public stock with uh two times leverage now you think well that's not as good as series you yeah but you get 25 net profits for up to 25 years and we're expanding series v up to 300 million dollars because we uh our portal marketing firm which actually did impossible foods they're very very prestigious want to go after small funds in the hundred million dollar range so this is interesting 300 million dollars generates a lot of money two billion dollars forage and clear so really really interesting so be sure to get your personal briefing from mr ken ken b he is a busy man these days but he knows what's going on and i highly recommend that you click on oc dot gold slash ken please be accredited um if you are not accredited we still want to have you in the list uh why uh because we are restarting our unaccredited investor offering that is coming down the pike it's going to take a month or two to pull together um just because that's what it takes to get the sec to to review it and so forth um but it is going to happen and i'm quite sure personally sure that in q4 we'll have it together all right so we have somebody else with a little chat let's just check it out and um ken makes it very clear that you if you're non-us you can speak to him what does that mean that means if you are in canada mexico or whatever you are free to invest in origin clear um it's assumed you're accredited but we are not required to verify it in the us we are supposed to take and we do take reasonable uh steps to verify your accreditation if you're non-us you're expected to be accredited in the laws of your own country and you basically certify that you are and ivan tells us that we'll soon have our first investor from el salvador which is fantastic in central america that is super super cool so thank you ivan it's and we have um more to come in fact more more uh and oh yes yes yes this is cool ivan thank you we just opened a corporate um bit uh bitcoin account in on the kraken exchange because there is a potential hundred thousand dollar investment that's going to come in through in bitcoin so i guess i'm telling you officially that we will accept bitcoin or ethereum uh for investment so um why not that happened literally today so it's good news so um you know i do want to see you next week as you can tell these are action-packed lots to tell you and if you don't if you miss one don't worry the replays you know show up and you can always look on the website where we have a transcription you can read it and of course it's also transcribed and recorded in video in spanish but i love to have you guys and gals on the show with me because it's so much fun talking to you each week the most transparent company in the public company space anyway so much more to come and uh i'm super excited loving how it's going the team is really you know the big difference between let's say 2018 and today is that i have a real team i mean tom martillo is one of the best things that came out of the water chain experience and there is again because water chain you know attracted such good talent and uh and tom was there and and we had to close it down because a we couldn't figure out how to monetize the water which we figured out now and b crypto winter set in 80 losses etc and he goes well you need help with your modular water systems don't you i'll go i kind of do so we ended up with uh top exec uh at origin clear and not worthy not worthy and then of course this is fun remember we're having fun wait wait wait you're you're you're wait wait you you must be um i'm not hearing you you're not i'll just be quiet oh ellis it's me i'm not oh i said no it's we're having fun remember this is fun it's fun to actually do fun things so it's fun it's you know what it's exactly right this is becoming more and more you know it's trying to remind me more and more of whether these tech things we did in the 90s uh you were you were you know you did more things more in the 2000s but um for me the early days of dot com were like whoa oh my god you know and um that that was it feels like that now it's got that buzz that buzzy feeling to it and to think that would happen in water unbelievable right never happened i think it's like it's actually an interesting spot you know as you're seeing innovation wanting to take place and a lot of areas that were overlooked for so long because they weren't really exciting or people didn't know how to monetize them and then you see a lot of lessons learned from tech industry plus now the crypto industry saying hey you can make money and you know it's it's so much more opportunistic than it ever used to be because it's about somebody deciding they want to step up deciding they want to do the business and then just going after it you're not necessarily having to ask permission to go do this stuff around the world because the need's so great and there's really nobody standing in your way to do it the truth is they want you to do it it's true unlike energy where the utilities are fighting decentralization uh in water they're saying please go ahead treat the water we can't handle it so um that's and and it's interesting now that uh ivan is piping up here saying that we open kraken to convert decentralized money and decentralized water kind of funny that's kind of cute um but it is all kind of happening so um you came along ken behringer came along and transformed all our uh capital raising so that we literally are able to seriously raise capital and of course in 2020 the philanthropist team came on we have um just a great team and we need more um progressive water 2018 we had dan early come in i mean it's kind of cool it's kind of cool so with that i'm gonna wrap it up thank you all very much and uh it was a pleasure having you tonight do tune in next week and bye for now i'm going to switch off the video because heather needs to catch up so good night [Music] you
2021-08-24 02:33
