ESFS shareholder meeting report.
I attended the shareholders meeting, but have not posted my thoughts because my day job and life keep getting in the way, and I too, thought that we'd see a video show up, and this would not be necessary. Anyway, forgive the delay and recognize that the following is just my thoughts on what I think I saw and heard. Also know that much of what I'm conveying here was in the discussions following the meeting.
The meeting was attended by a dozen to a perhaps 15 shareholders, and several representatives of Eco Safe including another new Doctorate who has recently been added to the staff.
In order of the Good, the Bad, and the Ugly.
The good.
The new marketing plan for super markets wherein the stores would lease the machines at $500. / month was discussed and it was conveyed that the initial responses to this plan seemed favorable from the clients perspective and was good for Eco Safe as well.
There was discussion about modifications to the Md 1500 machines in order to conform to the specific requirements of some of the clients, resulting in the creation of new models. It was noted that the ability to provide units with the specific requirements of the client was one of the things that sets Eco Safe apart from the competition. There was an example of one customer who cold called Eco Safe after dealing with another company and finding that they could not meet that companies requirements.
Eco Safe apparently has a customer list of some 14 very recognizable names who are either implementing or are about to implement the Eco Safe units. Michael Elliot stated that he was disappointed in that he thought that he'd have at least one name that he could have brought to the meeting as having committed to the purchase of enough product that Eco Safe would be well on its way, or words to that effect. Of the 14, these names were mentioned in some part of the discussion, In & out Burger, Soup Plantation, Seafood City and Whole Foods.
There was a report of the successful installation and testing in a large Los Angeles area hotel laundry of an Eco Safe system. Apparently the hotel is saving money in that it is washing with water that goes through the Eco Safe unit rather than the hot water heater, it is using a fraction of the soap and chemicals it had prior, and it is realizing a 200 to 300 percent longer fabric life on the towels, sheets and the other fabrics.
A representative of The Green Baron .com was at the meeting and stated that that on line publication is closely following Eco Safe. He also brought the contact information of a large uniform and linen rental supplier that he gave to Mr. Elliot as a likely lead to a company he thought was or would be very receptive to the services of Eco Safe .
There was a report on the possible investment from The Water Fund of some $8 million. Mr. Elliot conveyed that this could be used in a number of ways that would be helpful in getting ESFS from the pinks and on to the Bulletin Board where the stock would enjoy more favorable treatment and consequently a better price per share.
The dairy potential was also discussed in the meeting, but in the follow up later, it was learned that New Mexico Governor Bill Richardson is a very strong proponent of Eco Safe, and is very interested in doing what ever it takes to avoid the inevitable contamination of the dairy farm lands there. I was told that the State of California has recently spent 1.5 billion dollars on the clean up of the former dairy lands in the inland empire (Riverside San Bernardino County areas) where the herds that are now in New Mexico came from.
There was discussion concerning desalination and dye water operations as well. Mr. Elliot explained that the cost of disposal of dye water amounts to 125% of the original cost of the water. So this is an area where there is potential for Eco Safe. Also mentioned, but it may have been in the follow up, was the use by seaside resorts in the third world, of units to desalinate seawater resulting in potable water as opposed to the questionable water available from the local utility at a fraction of the cost. Unfortunately with the current worldwide economic conditions this market seems to be on the back burner.
There was a brief discussion about how the company has a manufacturer lined up and capable of producing units if and when the demand comes. Mr. Elliot was convinced that they would and could meet any demand should the time come when Eco Safe needs offsite assembly.
The Bad.
The financial numbers for this year were reported as being just a little less than last year, or was it the other way around, I can't recall with certainty as I was in mild shock at the time. However my notes say that Mr. Elliot is hoping for 100% growth in the next year.
The Ugly.
The new marketing plan for the supermarkets, to me indicated the complete failure of the old marketing plan. And , this is just my opinion, based on what I think I heard, but it seems that the company may have made a mistake in putting so much of its effort into the marketing to supermarkets. I think, and this is not based on anything that anyone said specifically, that the thought was that by marketing to the supermarkets they could very easily show the advantages of investing in the Eco Safe units. With a 1% profit margin and the readily identifiable savings from reduced slippage in the meat, seafood and produce departments, then how could the markets not invest in a unit or two? In fact the prospect of raising the figure from 1% to 1 and a quarter percent was mentioned repeatedly, as was the added benefit of reduction in loss due to reduction or elimination of claims resulting from consumption of spoiled foods. Somewhere there is a disconnect. A few possible explanations were bandied about, such as in the case of Ma and Pop type stores not getting a high enough return on investment in part because they don't show a column for loss from such claims. On the other extreme it seems that the really big chains have trouble committing for reasons ranging from its next to impossible to find out who actually makes these types of decisions and or is willing to risk his position on a new untried technology, to a very deeply entrenched status quo with the current chemical suppliers even being so determined to keep their foot in the door that I heard of an instance where one larger company will not change because a bribe was used to influence the V.P.
It was also indicated that the company does not have the resources to pursue a lot of the other identified markets, but is planning on pursuing them when they are established in the restaurant, supermarket and/or dairy markets.
The general consensus from the Eco Safe representatives , and this is just my interpretation from the several conversations I had or heard, is that Eco Safe has the right products for a market that will require them. The problem is that it's still to soon. There was discussion as to how the prospects are no longer asking the question, What is Ozone and isn't it dangerous? Instead they're getting questions like, How does it do what it does?, and What else can I use it for? It was also explained to me that part of the problem has been getting the governments to approve not only the concept but in some cases the specific applications. As with any new technology there is an implementation curve, unfortunately we're not yet to the tipping point, but the consensus is that we're getting close to the point where the early implementers will begin to commit in earnest.
And the other,
During the follow up conversations a few notable stories and or tidbits came up that I thought may be interest.
I was informed that LA Mayor Villaraigosa is very pro Eco Safe and has taken an interest in finding appropriate uses within the city.
There were also a few stories illustrating how effective the Eco Safe units are. I think it was a Seafood City store that no longer needs the air conditioning unit it had bought for the sole purpose of keeping the "fishy" smell out of the mall where it's a tenet and is required by its lease to maintain an environment free of such odors. Then there was the one about the market in the less affluent section of town where each morning the employees take the hose connected to the Eco Safe unit to the sidewalk outside the store to remove the smell from the urine left there by the transients from the night before. Then there was the neighbor of one of the employees who couldn't figure out why the chickens she'd been buying from the same store for years were suddenly healthier looking and now last two or three days longer in the fridge after he'd installed a unit in that stores meat department.
Disclosure: My son and his wife have presented me with four children and one. great grand child wrote this report
AI
