Rolling Out Prefunded Water Equipment
and good evening everyone another amazing briefing as we roll fast through uh a super exciting 2020 and i'm so happy to have you on board we're going to start really fast here um as we're starting just a few minutes late thank you for your patience i'm just so excited uh before i get too much more excited let me get started okay february 18th and it is briefing number 98 there's actually many more briefings but this is the first we've had almost 100 briefings that were in this cool webinar webinar format we used to do these cool like literally casual telephone briefings as i was driving on my way through los angeles driving through los angeles yes that's an old old game since i'm in florida now okay of course as you know safe harbor statement means that we're not here to predict the future except to the extent that we believe it's going to happen and of course the you must rely on the information in our filings i was on a podcast appearance uh with gresham harkless and this is ceo blog nation and i'll give you a very short snippet from this just for fun so here we go if you're a brewery and you have to do your own water treatment now because you got stuck with it well that wasn't on your capital plan you were not going to spend two million dollars in a water treatment system you were going to spend it on better beer it kind of sounds like you're partnering with these organizations these businesses breweries for example that maybe didn't have to solve a problem initially when they started but now they have to do that and not sure how exactly to make that happen we realized that we had to solve the problem of funding self-treatment localized treatment we eventually realized wait a minute it's the funding stupid if you can fund these systems and just here sign here mr brewery and you'll just pay on the meter like you always do and they go okay number one number two because we have role in rollout systems we can always take them back if the guy stops paying would just rent you this system the same way that someone might run a tv awesome no i definitely appreciate you for sharing that and breaking that down because i think so many times in you know businesses and organizations sometimes we can get so focused on the thing we're doing rather than the the pro the true problem that we're actually solving if you're in this intractable situation invent your way out find people who are willing to help you figure it out utter persistence but you've got to reinvent the water industry it is said we will run out of water in less than 20 years by 2040 there will be major major major problems in the water in the world with water availability the gap is where i'm trying to to come up with these novel solutions another novel solution that we're working on is desalination right now desalination is not logical nobody there's we should recycle water we should do better wastewater treatment we should do all kinds of things but this 97.5 of the world's water is saltwater and you know 40 of the world's population lives within a hundred kilometers of coastlines therefore desal and desalination is super super energy intensive fossil fuel process very expensive blah blah blah we're now doing a project we're about to recruit a university and you're actually the first to hear this this is the first time i've discussed this publicly um we're about to to launch a skunk works project to do something about the next generation of desal because the technology is already in universities to do this wide availability of cheap sustainable desalination we want to use our platform as a public company to bring this up and roll it out the same way we're doing it with decentralized water treatment nice well i definitely appreciate you for sharing that with us and i think so many times as you said so well it's not just about having that persistence but it's also about pivoting and understanding that hey you know i'm trying to break through the window but there's a door right over here that everybody's walking through and that might be a potential opportunity and so i wanted to ask you for what i call your secret sauce and this could be for you personally or the business or a combination of both your own best resources is you at the end of the day and you have to make sure that you're in a place where you don't feel horrible about what's happening or let's say some somebody's taking advantage of you financially or whatever's going on and you can't just go oh my god and so the other world and and i'm to blame and i'm no good right well sure we all got to improve ourselves but at the end of the day we are our own best resource you yourself remain peaceful you yourself remain untroubled go crazy deal with the problems solve them fix them do whatever you got to do but you yourself remain an oasis of of peace in a way that people can then go oh riggs isn't too worried i guess it's going to be okay yeah and that's extremely powerful because i think so many times we don't realize the impact that we have by the what we're giving off if you show yourself as worried then everybody else becomes worried right and of course it also helps to be competent right in other words it helps for the the ship not to hit the rocks yeah so that's good too yes so rich truly appreciate you again my friend and i hope you have a phenomenal day gretchen thank you for your work and i appreciate the opportunity wow a lot of people tonight thank you for joining us really exciting in the future we're also going to add a facebook watch that's one of my plans this week something cool happened in norwegian clear finance what happened well we signed a definitive agreement to acquire a company that has two million dollars in proven u.s real estate it's actually in port st lucie which is a very good market northern end of the miami corridor so really exciting and it's intended to fund what we're calling our prepaid water projects you can accelerate water projects by of course funding them up front and just having somebody sign a dotted line just like i was talking about in this video so what does that mean of course the big work starts i want to thank phil and throw investors for having brought us this uh this opportunity we got i've got a list of all the things that have to happen so it's not a done deal by a long shot but uh i'm very grateful to the gentleman and the team as a set of partners that decided to commit to this as opposed to continuing to develop their multi-home development what we're really talking about is what is a service already being a winning model now that registered trademark is not ours it is actually belongs to a company called aquaventure holdings which pioneered these long-term water service contracts waters of service and they were acquired last march for 1.1 billion dollars all cash and went private so aqua venture holdings was public culligan bought them and took them private and that is the model we are implementing basically you're like pay as you go it's an outsourced model in high tech we used to call these service level agreements meaning that if you are you know if you have an internet service provider they will guarantee 99.99 whatever uptime and that's called as sla or service level agreement well imagine a similar thing happening in water well that's becoming more and more of an uh of a fact of life in in the water industry and it's how we're accelerating our business now what do you get out of it long customer life cycles you know i'm i've been an earthling customer since 19 well since 1994 really since uh before the web so this this is some exciting stuff also you get a continuous revenue situation another another player is cambrian now cambrian is a private company and they raised a ton of money about 18 million dollars most recently in 2019 and here's an example of what we're talking about i'm not the only person talking to you about companies have to decentralize this is a story about the russian river brewing company which was doubling their production and they had a problem because it was going to cost them so much money and they went ahead and did a deal with cambrian where they would get this a very similar system to ours except that we have a better package we think that would continuously clean the the beer water and allow it the wastewater allow it to be reused and a brewery can reuse about 50 of its waste water even if it's not using the water for beer which i not everybody's going to love so but nonetheless it's a big gain now this is a sir it's a i think a 15-year contract that the russian river owners have made with cambrian but here's our secret sauce this is where we take it we're this is our gen 2 model because we have roll-in roll-out prefab systems we have a major risk reduction because the client stops paying he pulls out the system and secondly because of that it's more of a rental model therefore stellar credit not needed and that is a major improvement over competitors this is that amazing technology that we acquired in 2018 which was the five patents dan really brought us and a bunch of software and stuff and here's the key it's called basis of design meaning you see all these jobs on the right-hand side that are current jobs we're bidding the great many of them we are basis of design which means that they have to use our or dan early's proprietary design which of course we have we are the exclusive global licensee for so that is very powerful in addition last year as you know we piloted the whole waters of career program and we were we had a meeting last week with ryan kustra who was our first waterpreneur and he's very happy and it's going very very well for him so this lets us kind of send out you know one man or one woman sales a fleet of sales people that can sell pre-funded system so for example i discussed this premium hotel system took us a year and a half to close it but now with pre-funding a waterpreneur can go out and sell it and not have to demand 143 000 up front very important so that's our that's our tweak on it we'll continue to tweak it so building this origin clear financial means that obviously we'll accept cash but also what's going on is that real estate investors are diversifying here the potential tax benefits we're still working on that um and we may not have to sell the property we may be able to leverage it all kinds of details there and some may want to also get involved in the actual water systems that are put into operation and as various um elements as a share of the net profits they have secure security right they have the right to put a lien on the equipment that goes out there and where we're at of course as i told you we have this definitive agreement for two million dollars and a million dollars preliminary uh commitment and more in the works uh the same gentleman who did the two million dollar package is uh putting together one million dollar package with some other people so important to remember this is not a done deal but it's moving along at the speed of light all right of course we're grateful to ivan ounce and artie marin who are the philanthropic investor people i'm told that they are uh this is going to be their third year in the inc 500 i think that's still a very informal status shall we say but they are certainly k uh you know really rock stars in real estate and now they're introducing investors for this fund which is key and they like to use this rule of thumb of for every 100 000 invested you're getting a million liters per month which is a good thing and that's why they call it philanthropy investing so thank you gentlemen now maybe you caught my email late this afternoon it came out of a meeting i was having where i really had to tell the gentleman good friend of mine that i've known for many years dude we have to stop because i gotta send out the update and get ready and that is what about crypto now does crypto have a place now we know the crypto's hot and you know everybody's you know um going nuts and and i think that it's no longer what it used to be it was a tough very immature space i think it has matured but i wanted to take you a little bit down memory lane and a little over a year ago i started this process by sketching the water chain universe in my backyard on my wife's school whiteboard and this was the beginning of it all right there and to give you more of that complexity here you have a you know all the potential stakeholders in the middle you have that capital pool which of course is origin clear finance right water exchange and now here's important what's important it's about the contracts it's about the contracts and that we had a big problem in 2018 which is how do you track the generation of clean water well if you have the service contracts you don't have to have go people go out there and check meters and stuff like that you already have the thing in place here's the the website it's still up to this day and it's a little bit out of date but it still tells the story the idea here is to harness the power of crypto capital to meet the growing water crisis and with that i'm going to play you a little clip and also try and fix for some reason my video went crazy but i'm going to go back into share mode and you'll be able to see a speech that i made at the time and i think you'll find it interesting here we go the world will run out of water there'll be 40 more demand for water than there is supply just 12 years from now half of the world's citizens will live in water stressed areas and by the way if you think you're in the midwest you've got a lot of water think again the ogallala aquifer is running dry so we have a problem and we have an industry which is a trillion dollar industry which needs to accelerate to cope with that crisis but now it's a trillion dollar industry but it's also old school one of the biggest problems we've got is that the infrastructure is broken america for example is going to take a quarter trillion dollars to fix the water infrastructure and i don't think that's going to be done anytime soon so what's happening is that municipalities the sewage plants are refusing the sewage like no you give us treated water they're requiring treated water from the factories the schools the agricultural farms everyone's got to treat their own water it's called forced decentralization ironic given that we're at a decentralization conference this is exactly what's happening in the water industry now if you're intel you don't want to clean the water you're going to delegate it to someone else and you're also going to delegate the capital problem your intel you can afford a 5 or 10 million dollar water system but now you delegate it to a water service company that's harder for them to do so that's a real problem for the industry but there is a trend towards and this is the opportunity there is this trend towards outsourcing towards modular systems iot devices and that's really the the nexus where we find ourselves i have a uh i'm the ceo of a public company that's been 10 years commercializing a technology in a water industry and i'm told we're getting to the end of the path because it takes 12 to 14 years apparently to commercialize water technology so i know the problem intimately uh we've been a public company for all this time and now we see this chance to make a change i'll talk some more about this so one of the things we we faced when we looked at doing a blockchain initiative was how do we bring it about we don't have 12 to 14 years for a water chain for blockchain technology to take root in other words we can't go to the water industry and go please adopt this please do the blockchain with us and they'll go what it's all good and and i say this with all the love for the water industry because they've got public health requirements to deal with they they have huge liability issues it's natural that they would be conservative but if we're talking about putting blockchain in how we're going to do it and then we suddenly realized that we could simply fund our own ideal systems using the power of crypto funding and fund these special purpose vehicles that would attack initially just one water treatment project and do it perfectly at the speed of the tech industry i came out of the dot com we know how to move fast so we make it happen fast we use the best practices the best real-time devices we use the blockchain where appropriate and offline technologies off-block chain technologies married into it for perfect implementations of real-time distributed modular water treatment systems starting with one and expanding from there now very simple how do we do it again coin offerings that people everywhere if you reply to one of my newsletters it will come into my inbox and i get a lot a lot of people saying rigs i really care about what you do please change the world can you do better and you know the hurricanes oh my god there was all these people so concerned about the water quality and my friend enrique was all about that from puerto rico and you know there's such a desire to change the world by fixing the water that people can actually participate directly in water treatment systems that are ideal rapid and expanding hopefully in a geometrical progression right we're going to set up first one treatment facility funded by crypto investors it's going to generate electoral property learnings that we will roll into the next and the next and the next and the water users i mean let me tell you you go up to a water user and you go just sign here let's negotiate a price per metric ton of water treated and we're rolling they will do it they will do these deals so the water user gets the benefit no capital cost just operating expense very efficient and then we go to number two number three etc etc simply a growing progression of perfect systems now what drives the water industry more than anything else what drives you money if the water industry sees capital flowing into water treatment systems they will put up their hands and participate as opposed to us saying please use the blockchain instead we create the shining house on the hill and they come to us because the capital is there the use cases are fantastic their concerns about public health and liability are satisfied we've run everything you know proper you know regu securities regulated the whole thing so this is a properly done rollout of this new technology so our mission is very simple we're gonna you know create a decentralized water treatment system using the the great technology that's out there we're not replacing existing players there's some great device manufacturers who are already cloud enabled there's every single player is out there people who make these drag and drop water treatment systems that just drop in the ground and put into work these people are out there and the people who are going to fund it are every single person who cares about water in the world so this is really not just about the u.s
it's about solving water problems in every country in the world i'd like you to go to waterchain.io register this is the very first time we're really laying out this vision publicly so you're catching us right at the right moment i'd love to have your input and i think i have a few moments for questions are you limited to the us this is a global play all right um and one of the great ways we can get um into other countries some the who are the best early adopters it's the ngos it's the non-profits because their problem is they raise a million dollars for some project in central africa well they have huge transparency and corruption issues so they will like something like this because they can have this the use of the blockchain is perfect for for establishing trust if done properly so i see now origin clear the mat the the mother company we're primarily operating in asia already we're in china malaysia india thailand as well as in europe we're in spain north africa before the u.s we found adoption elsewhere because the u.s is very conservative what is the problem with the u.s okay
who recycles the most water in the world anybody know israel 80 of israel's water is recycled okay what's the number two country in the world spain spain 20 80 20. where's the us one one percent so what does what does that tell us it tells us that the early adopters are not in the u.s you know you don't want the most the most laggard culture to be your early adopters you want the most we saw that that life cycle graph with the early adopters that's where it's at so the early adopters are in south asia they're in africa they're in europe they're north africa algeria has has decreed that they're going to meet european standards or else right and they they can do it so i believe it's going to be international first but for purposes of control i think our first one would be in the us because we want to we want to do a really good first use case and really establish something fantastic for the future thank you so much thank you very much [Music] well that was a lot of fun and a very prophetic in many ways uh given what um you know happened down the road it was an idea ahead of its time decentralized finance of water right that's what this is all about and funding of clean water tokens of course we had great support from the crypto industry some of the best people in industry joined the group our group water chain but of course things hit the wall mid 2018 it was called crypto winter and we needed that use case that i just mentioned in that speech well now we've got the use case funded and we're doing it conventionally see we it was hard to do a pre-funded water systems and also the tokens it was just too you know just to mesh together so we were able to pull it apart and go okay let's do the pre-funded water systems which is origin clear financial get the use case and then we can look at tokenizing it right next steps we're staying focused on rolling out the pre-funded water systems that's what we are staying focused on i'm not going to jump around do other things for now but we are studying this idea it's in the lab please do not wager on how wonderful origin clear is going to be with a token i can just see it now so but it makes a lot of sense because the big problem with with tokenizing water is well where's the water right you got to send 10 people out to do audits and so forth instead if you have all these waters of service contracts the contracts are on the meter ethereum is a perfect coin for this because it has smart contracts so you just simply use something like ethereum as a backbone for this this coin and i'm just i'm just spitballing here because uh this is not a technical discussion and now you're able to trigger oh there's x amount of gallons being treated at this particular location and that turns into tokens that have value and then you can bring in a desalination plant you can bring in air harvesting plants you can do all kinds of players even virgin water generation can be put on this so this is a really interesting thing as long as there is a contract generating the water then it can be tokenized and then people can invest and the the capital pool becomes huge so very exciting as i say we're staying focused but we also think that this is a wonderful piece of the road map once again and i couldn't be happier that the all this 2018 activity is coming to fruition all right well you can help and ken behringer is the man he's been working with me uh doing amazing things to strategize this and uh really it's fun i mean i was just texting him a while during the video about how it's kind of you know it all comes around right it's kind of like you know bella bottom jeans are now coming back around uh in a way so now this crypto thing which we were leading with now of course is fully mature and everybody thinks it's great well back then believe me it was wild and wooly so uh with that uh just just to talk to ken just type oc dot gold slash can in your browser and you'll be talking to him he's got a very busy day but i think you'll find it very interesting well i'm not going to tell you the next exciting update because literally these uh the topics show up at the last minute but it's been really fascinating uh spending a little time with you on this and talking about it i appreciate your time uh spent tonight thank you all for joining us tom marchicello has is sitting in the in the gallery here and he was part of the water chain effort and wow it was wild and crazy i'm sure that he and i will be have a chance to discuss it on this show in the future but it is all coming together all becoming integrated and i couldn't be happier so with that i want to thank you all very very much for being with with me this evening uh we've had a record number of of um attendees so thank you thank you we really appreciate it and good night [Music] you
2021-02-24 10:04
