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Starts to make sense who all the bashers were thru out the last year. Professor Swift and his class of no-class idiots.
LOL to tears.
Someone just shot their wad.....4,100,000 shares!!!!
Yep....they're growing pains are painful but sufferable IMO. They have something to show for the progress up to this point. Maybe not income (YET)! but innovation and endurance is what this company is all about. The income will happen and it will never be too late. IMO If your in this then your a gambling man like I am. The hole cards may look dismal but I'm playing to win.
Form 10QSB for INTREPID TECHNOLOGY & RESOURCES, INC.
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14-Feb-2008
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion contains forward-looking statements that involve known and unknown risks and uncertainties which may cause actual results in future periods to differ materially from those indicated herein as a result of a number of factors, including, but not limited to, those set forth under Legal Proceedings, and the discussion below. When the Company uses words like "may," "believes," "expects," "anticipates," "should," "estimate," "project," "plan," their opposites and similar expressions, the Company is making forward-looking statements. These expressions are most often used in statements relating to business plans, strategies, anticipated benefits or projections about the anticipated revenues, earnings or other aspects of our operating results. We make these statements in an effort to keep stockholders and the public informed about our business and have based them on our current expectations about future events. Such statements should be viewed with caution. These statements are not guarantees of future performance or events. As noted elsewhere in this report, all phases of our business are subject to uncertainties, risks and other influences, many of which the Company has no control over. Additionally, any of these factors, either alone or taken together, could have a material adverse effect on the Company and could change whether any forward-looking statement ultimately turns out to be true. The Company undertakes no obligation to publicly release updates or revisions to these statements. The following discussion should be read in conjunction with audited consolidated financial statements and the notes filed thereto on Form 10-KSB with the U.S. Securities and Exchange Commission for the year ending June 30, 2007.
RESULTS OF OPERATIONS
Revenue
Revenue for the quarter ended December 31, 2007, decreased 52% to $22,843 compared to $47,310 for the same period in 2006. Revenue for the six months ended December 31, 2007 decreased 75% to $48,819 from $196,563 for the same six months ended December 31, 2006. This decrease was mainly the result of decreased sales of contracted "work for others" over the corresponding periods of one year ago. The quarter ending September 30, 2006 also included a $50,000 grant from the Idaho Department of Water Resources.
The Company's first biogas plant in Rupert, Idaho, is producing 99+% purity natural gas on a consistent basis; and the independent, third party gas sample testing phase was completed in December. The second plant in Wendell, Idaho, is in the start-up phase and will produce gas of the same quality and approximately 30% more volume than the Rupert facility. The Company has a 15-year Supply and Purchase Agreement in place with the local gas utility for the balance of gas being produced at the plants. The utility is currently making necessary arrangements to receive this gas into their distribution system for commercial sale.
Direct Operating Costs
Direct operating costs for the three months ending December 31, 2007 and 2006, were $453,077 and $28,113, respectively. For the six months ended December 31, 2007, direct operating costs increased to $878,405 from $89,396 for the same period in 2006. The direct operating costs increased due to costs for operating the Company-owned plants. Revenue and operating costs will both increase (though operating costs will decrease as a percentage of revenue) once the Company is able to start consistent delivery of gas, horticultural fiber, and carbon offset credits to the marketplace. Gas sales revenues should start in the 3rd fiscal quarter of FYE 2008, and should significantly increase during the 4th quarter as the second production plant achieves full production capacity.
Gross Profit
The Company had a gross profit (loss) of ($430,234) for the quarter ended December 31, 2007, compared to a gain of $19,197 the prior year. For the six months ended December 31, 2007, the Company had a gross profit (loss) of ($829,586) compared to a gain of $107,167 for the same period in 2006. The decrease in gross profit resulted from the direct operating costs associated with start-up of Company-owned production plants without corresponding revenues.
General and Administrative and Research and Development Expenses
For the three months ended December 31, 2007, General & Administrative and Research & Development expenses were $247,545 compared to $568,015 for the same period ending December 31, 2006. For the six months ended December 31, General & Administrative and Research & Development expenses were $446,932 and $955,885 for 2007 and 2006, respectively.
Over the last two fiscal years, the Company incurred large costs for the construction, start-up, and operations of the Company's Whitesides Biogas Plant; and over the last fiscal year for the design, permitting, and construction of the new WestPoint Biogas Plant. Only those costs allowed by generally accepted accounting principles have been capitalized in that effort. All other costs have been expensed for establishing the biogas business operating plan, including research in the biofuels markets, development of operations, maintenance procedures, process improvement measures, and seeking investment capital and source financing. Research and development costs have reduced significantly as we have shifted from R&D and construction to plant operations.
Interest Income
For the three and six months ended December 31, 2007, the Company received interest income of $11,555 and $32,670, respectively. For the three and six months ended December 31, 2006, the Company received interest income of $3,568 and $7,578, respectively. Most of the 2007 interest income was on restricted cash bond funds.
Interest Expense
For the three months ended December 31, 2007, the Company had interest expense of $559,822 compared to $12,997 for the same period ending December 31, 2006.
For the six months ended December 31, 2007, the Company had interest expense of $1,088,098 compared to $13,001 for the same period in 2006. Of the expense for the six months ended December 31, 2007, $682,191 is amortization of historical costs and will not involve future cash outlays. The 2007 expense was for interest accrued on the bonds and the YA Global debenture.
Gain on Embedded Derivative Liability
For the three and six months ended December 31, 2007, the Company recognized gains on the YA Global Embedded Derivative Liability of $494,618 and $904,824, respectively. The Company recognized no gains or losses for the same periods in 2006.
Net Loss
For the three months ended December 31, 2007, the Company had a net loss of $731,178 compared to a net loss of $558,247 for the same period in 2006. For the six months ended December 31, 2007, the Company had a net loss of $1,426,872 compared to a net loss of $854,141 for the same period in 2006. The change is due to start-up plant operating costs without corresponding revenue and increased interest expense.
MANAGEMENT'S PLAN OF OPERATION
In the past, providing engineering and technical services has been the primary source of revenue. The Company expects to continue providing such services in the future, but with a shift in emphasis toward providing consulting services to 3rd party developers of biofuels projects. In FYE 2008, the Company will expand its efforts to become a significant producer and distributor of biogas products and a facilities service provider. The following discussion provides an overview of our progress in making the transition.
The fundamental aspects of the Company's business model are:
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Utilize cutting edge, but established, technology for the production of biogas from large animal operations;
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Maintain equity positions in biogas projects; †
Begin operations in known territory (Idaho), and expand into other western states as resources permit;
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Maximize the utilization of our public company status in the financing of our projects;
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Market biogas products to local gas utilities, industrial users, and transportation users;
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Team with experienced companies for the marketing and distribution of biogas products.
DEVELOPMENT PLAN
The Company will design, construct, own (and in select situations, co-own), and operate production facilities consistent with the business model described above.
The centerpiece of this development plan is digestion technology that produces biogas with a higher concentration of methane than competing processes. This technology has a successful 7-year operational history and has been demonstrated with both cow and swine waste.
Our goal is to become the premier biogas company in the United States. Our approach is to use superior technology and know-how to convert manure waste from dairy and feedlot operations into high BTU biogas and high quality horticultural-grade fiber. The biogas is further processed to produce (1) pipeline quality gas for sale to a gas utility, marketing and distribution company, or industrial end user; (2) combustion gas to fuel boilers for processing materials; (3) liquid natural gas for transportation fuel, peaking, and/or remote community service; and, eventually, (4) hydrogen to energize fuel cells for transportation and distributed or non-distributed energy sources. Our range of services include:
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designing, building, and operating biofuels facilities;
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performing value-added processing of raw biogas and residual products of digestion for various applications;
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marketing, transportation and sales of those co-products.
The Rupert plant recently underwent a 5-fold expansion to accommodate a corresponding expansion of the diary upon which it is located and has been designed with special features that allow it to serve as a test platform for the Company to continue its research and development activities. The gas from both plants is under contract for sale to the local gas utility via a 15-year Supply and Purchase Agreement. A small portion of the gas is used on-site for plant process heating and for heating water for dairy operations.
The Development Plan involves discrete projects that will ultimately bring 250,000 Magic Valley dairy cows under production to create the "Magic Valley Biogas Field" in the Magic Valley area of south-central Idaho. The first project is essentially complete with the two plants described above. The total combined capital investment for this first phase of the project was $11.5 million and was financed via a combination of 50% debt (tax-exempt municipal revenue bond) and 50% equity (public shareholder). The second phase of the project will be phased and ultimately involve 60,000 cows.
Future projects will be financed through a combination of debt and equity. As with our first project, we anticipate that the debt portion will be financed through the sale of bonds. The equity will come from equity partners that will include dairymen, equity capital group(s), or other private investors and from retained earnings generated through building biogas plants for third parties.
These funds will provide for anaerobic digester plants constructed at participating dairies, gas conditioning clean-up equipment for processing the raw biogas to pipeline quality standards, and a supporting gas line gathering system to transport the clean gas to the gas utility distribution system. A majority of the costs (approximately 70%) is for construction of the digesters.
Additional Information
The Company plans to increase sales and expand its engineering and scientific services into the biofuels area. Revenue generated will be used to meet cash flow requirements with any excess being used to support and develop the Company's biofuels production initiatives.
At the present time the Company does not anticipate paying dividends, cash or otherwise, on it's Common Stock in the foreseeable future. Future dividends will depend on earnings, if any, of the Company, its financial requirements and other factors. The Company believes that the terms of the Settlement Agreement relative to divestiture of its mining and mineral rights of the Garnett mine in Montana have the potential to provide moderate future working capital. The Company was able to successfully obtain bond financing under a State of Idaho approved bond inducement resolution during the past eighteen months; conclusively demonstrating its ability to attract outside investment capital.
The Company continues to seek other investment capital to support future projects and the existing and ongoing Company operations.
CAPITAL RESOURCES AND LIQUIDITY
As the Company expands into the biofuels business, it will face continuing challenges to finance growth. This is particularly true of further development of the Magic Valley bio-gas field. In addition to capital expenditures for the first two digester facilities, financing resources are needed to support operations. The Company has made reasonable efforts to meet cash flow demands from ongoing operations but the Company may not always be able to obtain sufficient funds to satisfy the Company's working capital or other capital needs. The Company finished the six months ended December 31, 2007 with available cash of $275,754 and restricted cash of $779,319 compared to available cash of $1,414,831 and restricted cash of $1,767,290 at June 30, 2007. The Company believes that it will be necessary to continue to supplement the cash flow from operations with the use of outside resources such as investment capital by issuance of debenture notes and stock. The Company plans to use any additional funding to cover operating and developments costs.
As of December 31, 2007, the Company had negative working capital of
($2,516,959) and a current ratio of 0.13:1 compared to a deficit of ($11,269)
and a current ratio of 0.99:1 as of June 30, 2007.
During the six months ended December 31, 2007, the Company used net cash of $1,046,162 for operating activities compared to $616,619 of net cash used in operating activities for the 2006 period.
During the six months ended December 31, 2007, the Company used $974,236 in investing activities, primarily in biogas generating facility construction costs, compared to $1,779,130 used in the prior year period.
During the six months ended December 31, 2007, financing activities used $106,650 in net cash compared to $5,885,799 provided during the six months ended December 31, 2006.
Seasonal Changes.
The Company's operating revenue is generally not affected by seasonal changes.
RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109" ("FIN 48"), which clarifies the accounting for uncertainty in tax positions. Under FIN 48, the tax effects of a position should be recognized only if it is "more-likely-than-not" to be sustained based solely on its technical merits as of the reporting date. FIN 48 also requires significant new annual disclosures in the notes to the financial statements. The effect of adjustments at adoption should be recorded directly to beginning retained earnings in the period of adoption and reported as a change in accounting principle. Retroactive application is prohibited under FIN 48. We adopted FIN48 as of July 1, 2007.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (SFAS No. 157), which defines fair value, establishes guidelines for measuring fair value and expands disclosure regarding fair value measurements. SFAS No. 157 does not require new fair value measurements but rather eliminates inconsistencies in guidance found in various prior accounting pronouncements. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, on a prospective basis. The Company does not expect the adoption of SFAS No. 157 to have a material effect on our financial statements.
In September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) No. 108, Financial Statements - Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. SAB No. 108 provides interpretive guidance on how the effects of prior-year uncorrected misstatements should be considered when quantifying misstatements in the current year financial statements. SAB No. 108 requires registrants to quantify misstatements using both the income statement and balance sheet approach and evaluate whether either approach results in a misstatement that, when all relevant quantitative and qualitative factors are considered, is material. SAB No. 108 is effective for years ending after November 15, 2006, and the impact of adoption had no effect on the Company's consolidated financial statements.
RISK FACTORS
The Company's current and primary focus is obtaining permits and developing favorable properties for alternative and renewable energy production, and providing the associated engineering design and construction management services required to support the construction and operation of related facilities, and cannot provide any guarantees of profitability at this time. The Company will continue to expand its engineering services base, "work for others" to generate additional revenue to augment working capital requirements in support of its alternative and renewable energy efforts. The realization of profits is dependent upon successful execution of new business opportunities and the development of prototype digester models and implementation of the digester project for renewable energy. The Company is dependent upon inducing larger companies or private investors to purchase these "turn-key" alternative renewable energy generation and production facilities. These projects when developed and depending on their success will be the future of the Company. The Company may not be successful in these efforts.
Our operating results are difficult to predict in advance and may fluctuate significantly, and a failure to meet the expectations of analysts or our stockholders would likely result in a substantial decline in our stock price.
Factors that are likely to cause our results to fluctuate include the following:
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the gain or loss of significant customers or significant changes in engineering services market;
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the amount and timing of our operating expenses and capital expenditures;
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the success or failure of the biofuels projects currently underway;
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the timing, rescheduling or cancellation of engineering customer's work orders;
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our ability to develop, complete, introduce and market biofuels and bring them to volume production in a timely manner;
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the rate of adoption and acceptance of new industry standards in our target markets;
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any other unforeseen activities or issues.
There is a limited public market for our common stock. Our common stock is listed on the OTC Bulletin Board, and there is a limited volume of sales, thus providing a limited liquidity into the market for our shares. As a result of the foregoing, stockholders may be unable to liquidate their shares.
We are subject to various risks associated with the development of the biofuels and alternative energy market place and if we do not succeed our business will be adversely affected.
Our success will largely depend on our ability to develop and implement the anaerobic digester biogas projects and generate energy and gas for sale. We will respond to technological advances and emerging industry standards and practices on a timely and cost-effective basis. However, we cannot predict if we will be effective or succeed in the development of the biofuels and renewable energy markets. If we are unable for technical, legal, financial, or other reasons, to adapt in a timely manner to develop and operate in the biofuels market, our business, results of operations and financial condition could be materially adversely affected.
If needed, we may not be able to raise further financing, or it may only be available on terms unfavorable to us or to our stockholders.
Available cash resources may not be sufficient to meet our anticipated working capital and capital expenditure requirements if the biogas facilities do not produce sufficient revenues for at least 12 months. It may become necessary to raise additional funds to respond to business contingencies, which could include the need to:
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fund additional project expansion for the biofuels production;
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fund additional marketing expenditures;
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develop additional biofuels projects;
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enhance our operating infrastructure;
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hire additional personnel;
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acquire other complementary businesses or technologies.
If we raise additional funds through the issuance of equity or convertible debt securities, the ownership of our current stockholders would be diluted, and these newly issued securities might have rights, preferences or privileges senior to those of existing stockholders. Additional financing might not be available on terms favorable to us, or at all. If adequate funds were not available or were not available on acceptable terms, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our products or otherwise respond to competitive pressures would be significantly limited.
Liquid, your a hoot.....was CKYS one of your high end stocks....what's up doc!? Been about a year since I posted here, but watch daily. Hang in there XKEMers. Liquid, leave these good people alone or they will banny your fanny. GLTA
You want to see a typical pinky that I got caught up in look at XKEM. No PR or finacial report in over a year. If this one ever goes pink I'll take my chances with my expendable resources and hit the casinos. Since the bird flu I have been knocked in the head with pennies from hell. I have no problem sitting on this one as long as it stays over the counter and the new management keeps laying the cards on the table. GLTY too.
I was unaware that this is a pink.....IESV.OB. Is that not correct??
President’s Message
5 Feb 08
I’d like to address a few issues that I understand may be making some of you a little uncomfortable. The first has to do with the impacts on gas production of the monensin-based additives (like Rumensin®) that are being fed to both beef and dairy cattle – including at both dairies on which we operate. The second is what cold weather does to our operations, and the third has to do with our recent shift in fiber sales strategy.
As I’ve said in a previous message, monensin definitely does have a negative impact on gas production on ALL digesters, not just ours. We recently spoke with the manufacturers of that product as we had heard a rumor ourselves that an FDA ban on its use may be in the offing. That rumor is NOT true. The product is here to stay. But because it is in such wide use (and growing) throughout the entire dairy industry now, and because there are so many digester systems either already installed or going in, the manufacturer recognizes a real need to be part of the solution. They have commissioned a well-known University to try to come up with an “antidote” that can be fed into digesters to reduce or reverse the impact of the monensin once it leaves the cow. No telling how long that may take or if they will be successful, but at least we know that we are not totally alone in trying to solve the problem. Meanwhile, we just have to keep improving efficiencies everywhere else we can to counterbalance the impact. The good news is that we may have opportunity to sell our gas to certain industrial propane users at a much more favorable rate, which will help with that counterbalance.
Regarding cold weather, I think there is a misconception that snow is the problem – that it gets into our feed system and upsets the bacteria or process somehow. That is not the case at all. Snow is a nuisance to be sure – for the same reason it is a nuisance in your driveway or on your sidewalk – but it is not the problem. The true culprit is the cold.
For the past 2 months we have been running about 10° lower than the historical averages for this time of year. We have experienced a lot of frozen pipes and such in places we did not expect, but have been able to thaw those fairly quickly and provide proper heat tracing and protection to prevent reoccurrence. Those events have been frustrating, but temporary.
The real impact of the cold has been the freezing of the manure to the concrete feed aprons and in the barn collection troughs, making it extremely difficult – and on some of the colder days, impossible – to collect and feed into the digester. When you can’t collect and feed, then gas volume drops off because the bugs don’t have as much to eat. When we hit that situation, we automatically go into a recirculation mode where we recycle the hot effluent off the tops of the tanks back through the system both to help retain heat and to give the bugs a second chance to pick through what they may have missed on the first pass. It’s not an ideal situation, but it keeps the colony viable. Some have suggested a massive effort to heat the manure collection areas. That is neither practical or rational given the huge cost that would be involved (6000+ cows take up a LOT of concrete when the feed wagon rolls down the alley), and the fact that in a NORMAL year, this problem only exists for a week or two during the coldest part of the winter. This year is an anomaly.
As to our fiber, most of you are aware by now that we are “going it alone” as far as branding and marketing our fiber. That decision came after a LOT of soul-searching and financial modeling by the Board and Management. In the end, we applied a very simple formula:
Profit = Sales Price – Cost to Produce
We looked long and hard at the production and operational costs of the two processes we have used to produce similar, but slightly different, fiber products. These include actual labor and equipment hours, costs of supplies, fuel burn, utility costs, maintenance issues, etc. We then factored in the impact of revenue splitting if a 3rd party were involved. We also looked at the prices we could obtain for each of the products both currently and with a pragmatic eye to the future. We then plugged the numbers back into the formula above and determined that the greatest return to the shareholder was to follow the path we are now on.
While we regret the loss of an otherwise positive relationship with our potential fiber partner, it is ultimately my responsibility to ensure that we maximize the profit potential of all three of our revenue streams. This was purely a business decision, but it was nevertheless a very painful one because of the close personal relationship developed over the past couple of years as we jointly struggled to find a way to make the pie big enough to share.
This is very much a part of the “counterbalancing” effort I mentioned above in the monensin discussion.
Meanwhile, I think we are beginning to win the cold weather battle, thanks to the hardest working team with which I’ve ever been privileged to work – and the fact that the thermometers are starting to bump up against the 32° mark (0° for the metric fans). If any of you can do anything to warm things up a little faster out here, we’d welcome it – just don’t stop the moisture from coming because we really need it!
I got the same vib. To protect a price per unit or the amount sold is vaguely understandable. But the total gross or net on this order or future orders over time seems non-secretive unless, again, they "jumped the gun" and additional negociations are involved in final delivery. Seems we can't get the right ingredients for a solid PR. Still, I like hearing from the company.
Press Release Source: Intrepid Technology and Resources, Inc.
Intrepid Makes First FiberBlend(TM) Sale to Major Soil Amendment and Aggregate Company
Monday February 4, 3:04 pm ET
IDAHO FALLS, Idaho, Feb. 4 /PRNewswire-FirstCall/ -- Intrepid Technology and Resources, Inc. (OTC Bulletin Board: IESV - News), a renewable alternate energy and soil amendment company, announces that they have received their first purchase order for their branded FiberBlend(TM) soil amendment product from a leading aggregate and soil amendment products company.
The customer will use the FiberBlend(TM) product, which has excellent moisture holding properties, with other products packaged by the firm and distributed nationally. Price and quantities were not disclosed at the request of the client. Initial shipments from Intrepid's plants will begin shortly.
FiberBlend has the physical texture and resemblance of peat moss and the fertilizer nutrient characteristics of animal waste compost, but with much less bulk than animal compost. FiberBlend(TM) improves soil tilth and increases drought resistance of the soil as well as increases plant resistance to disease as it develops and maintains the soil structure. It also can serve as an excellent base for blending of specialty application products through the addition of other amendments. FiberBlend(TM) is produced in a process that reduces carbon emissions and generates renewable "green" pipeline quality methane (natural) gas.
Intrepid is producing the unique fiber product from their two operating anaerobic digester plants in Idaho along with the Methane gas that is sold to industrial customers and carbon credits that are being sold to an International Emissions Reduction Trader. The new sales effort has been led by Intrepid board member John Brockage of Oakland California who stated: "This is the first sale in what we believe to be a trend among many users particularly in the drought-prone western US where water retention is a critical asset for maximum production of food products and gardens".
About Intrepid Technology and Resources, Inc.: We are an application innovator in Alternative Energy technology and production and of biogas products and services designed to assist in worldwide energy independence, reduce pollution and carbon emissions from renewable agriculture feedstock and industrial and agriculture waste materials.
Statements released by Intrepid Technology and Resources, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
For additional information contact,
Steve Ellis (208-529-5337)
sellis@intrepid21.com
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Source: Intrepid Technology and Resources, Inc.
Excellant discription for "jumping the gun".
"The combination of big dreams and bad business skills produces undeliverable promises and dishonesty--even in people who obviously wanted to be honest."
I'm glad to finally be a part of some savy shareholders that don't just call and email to nag the company about every little thing. Making adjustments in the mechanics of the company is the only way to fly.
You musta experienced some of the same no count companies that have gone pink or worse because they didn't give a hoot about shareholders. I agree with you 100%. I know ITR has jumped the gun more than once. Gotta look at the inventive stuggle they suffered trying to get to this point. Cudos to ITR for not giving up.
Nothing that I've read says that Intermountian had a monopoly on ITR's sales...maybe the only available pipline geographically...but there are longs here that are much better informed that I. I think it's that hoopla that Intermountian would take what gas was produced if it passed the rigorous testing. Made for good PR material and ITR may be changing their minds now that they are finally ready to go late in the game and the overhead of commerical sales is more in line with doable business plans. IMO of coarse. Please correct me if I'm wrong, tho.
I think we're going to get a delayed kick in the PPS at closing and then tomorrow. Let's see if we can start floating our boats again....I kinda like the option of selling directly to the commerical user...but dont know the difference in overhead from using the pipeline vs gas, labor, and maintance of trucking the gas directly to clients. In any case, much welcomed news for sure.
TODAY'S THE DAY!!!!
Press Release Source: Intrepid Technology and Resources, Inc.
Intrepid Completes Formal Gas Quality Testing Program
Thursday January 24, 1:00 pm ET
IDAHO FALLS, Idaho, Jan. 24 /PRNewswire-FirstCall/ -- Intrepid Technology and Resources, Inc. (ITR) (OTC Bulletin Board: IESV - News), a renewable alternate energy company, announces that it has completed an extended formal gas quality testing program performed by the Gas Technology Institute (GTI), headquartered in Des Plaines, Illinois.
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This rigorous testing program began in July 2007 and continued through December 2007. During that period real time in-line gas quality was remotely monitored at the GTI laboratories and physical confirmation samples were drawn weekly and overnighted to the GTI labs where they were analyzed for gas purity, heating value and the presence of microbes that could cause internal corrosion of commercial gas distribution lines and valves.
Jake Dustin, President of ITR said, "This is a highly significant and important accomplishment. By electing to subject our gas to such scrutiny in advance of placing it into existing pipelines we can provide independently verified assurance to pipeline owners and operators that our gas can be safely injected, transported and consumed in any commercial system in the nation. No one else in our line of business can provide such assurance at this point in time. This was the most comprehensive testing ever performed on a new gas source and ITR met or exceeded the Federal Energy Regulatory Commission (FERC) standards for pipeline quality gas in every category. ITR is the only biogas producer in the nation to have achieved this critical milestone and in so doing has set the benchmark for the rest of the industry".
While awaiting completion of the testing, ITR has been trucking its gas from its Whitesides Facility for use as start up fuel for its new WestPoint Facility at a cost savings of nearly 80% over propane. That startup process is nearly complete and, once finished, the way will be clear for ITR to begin delivering commercial gas to either a commercial customer or the local gas utility. The extensive testing makes it more likely that Intrepid can sell directly to commercial customers at much more adventitious prices and terms than to the gas utility.
About GTI: GTI is the leading research, development and training organization serving the natural gas industry and energy markets. GTI is dedicated to meeting the nation's energy and environmental challenges and for more than 65 years, has been meeting the nation's energy and environmental challenges by developing technology-based solutions for consumers, industry, and government.
About Intrepid Technology and Resources, Inc.: We are an application innovator in Alternative Energy technology and production and of biogas products and services designed to assist in worldwide energy independence, reduce pollution and carbon emissions from renewable agriculture feedstock and industrial and agriculture waste materials.
Statements released by Intrepid Technology and Resources, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
For additional information contact,
Steve Ellis (208-529-5337)
sellis@intrepid21.com
--------------------------------------------------------------------------------
Source: Intrepid Technology and Resources, Inc.
I'll darn sure be a buyer at subpenny
Been awhile since I posted but since I bailed out because of the sloppy financing and my posting of "Most popular CEO" cartoon (that was a joke so I thought a cartoon was appropriate), I have been following the PPS closely since it went subpenny. I went back into my files and found this Q&A that Pandey (supposedly...don't think he had commmand of the English language to be his responces). At one time they did have a business plan and that was the main reason some of us invested for the long run. The business plan seems to be on its death bed. But all things may not be what it seems since we know little about recent internal progress or disasters. Anyway, here is part of a better time inside XKEM.
Xechem Chairman Responds to Shareholder Questions Regarding NICOSAN(TM) Progress and Sales Forecasts
The Chairman of Xechem International, Inc. (OTC BB: XKEM), Dr. Ramesh C. Pandey, responded today to a number of questions posed by investors and others in the business community concerning the status of its operations in the aftermath of the approval of NICOSAN(TM), its sickle cell drug, by Nigerian regulators on July 3, 2006 . Some of the questions posed to the company and answered by Dr. Pandey are the following:
--------------------------------------------------------------------------------
Status of Production Facility
Q1: Xechem has reported that its Sickle Cell Drug, NICOSAN(TM), is
being produced in limited quantities at its pilot scale facility
in Abuja, and that construction has now begun on its full scale
facility at the same location. When do you expect the full scale
facility to be completed and at what cost?
A1: We estimate that the construction of the new facility will be
completed in approximately nine to twelve months, subject to
timely receipt of the required funds, and the facility will be
fully operational then. Our current estimate is that the total
cost of the new facility, including the cost of the required
machinery and equipment, will be approximately $12 to $15 million,
of which over $5 million has already been invested by the Company.
Expected Sources of Funding
Q2: What are the sources of the expected funding to finance the
capital expenditures?
A2: In the past several weeks, we received a loan from NEXIM Bank of
Nigeria for 150 million Naira (USD $1.2 million). The bulk of
those proceeds have been earmarked for the initial phase of
construction, and that work has recently begun. NEXIM has been an
extremely supportive lender that likes very much what Xechem is
doing in Nigeria and has expressed a strong interest in investing
significantly more money into Xechem's operations there. In fact,
advanced discussions are now underway with NEXIM officials
concerning a substantial new loan, the proceeds of which would be
used primarily for constructing the buildings for the new
commercial scale facility. We are also continuing to aggressively
pursue an approximately $8 to $9 million loan through the U.S.
Export-Import Bank Loan Guarantee Program.
Q3: Can you provide a report on the status of the Ex-Im loan and the
likelihood that it will close in the near future?
A3: As with any significant commercial loan to a company at our stage
of development, issues arise during the course of negotiation and
due diligence that can affect the timing of any proposed
transaction. This was especially true prior to July 2006, when we
received regulatory approval from Nigeria's National Agency for
Food and Drug Administration and Control (NAFDAC). That approval
added quite a bit of credibility to our efforts, particularly in
procuring the required local Nigerian bank guarantee, and has
seemed to accelerate the pace of negotiations with the various
parties involved with the Ex-Im guaranteed loan. Although
certainly there are no assurances as to when or if this loan will
close, I believe we have satisfied all of the statutory and other
requirements for the transaction and my sense is that this loan
has an excellent chance of being approved in the near future.
Q4: Do you believe the government of Nigeria may step up and agree to
provide financial support to Xechem in one form or another?
A4: In my judgment, the government of Nigeria has an incentive to
offer financial support to Xechem for at least three important
reasons. First, we have licensed our product from Nigeria's
National Institute for Pharmaceutical Research and Development
(NIPRD), which stands to benefit directly from our financial
success through the gross royalty they will receive from the sale
of our product. Second, there is no place in the world where
NICOSAN(TM) is more desperately needed than Nigeria and I believe
that the government has a strong incentive on humanitarian grounds
to help insure that the drug reaches as many of its citizens as
can be accomplished. And third, Nigeria is working very hard to
improve its image internationally and to promote corporate
investment, especially by American companies. The government of
Nigeria knows that Xechem is being closely watched by investors
and others in the business community who want to see if an
American company like Xechem can be truly successful in Nigeria.
For all of these reasons, I believe that the government of Nigeria
would consider offering Xechem substantial financial support in
one form or another under the right circumstances .
Q5: Has Xechem already approached the Nigerian government about the
possibility of providing Xechem some form of financial
accommodation?
A5: As with many aspects of the development of our business, until our
drug was formally approved by the regulators in Nigeria, it was
impossible to have meaningful dialogue concerning possible
governmental support for Xechem in whatever form. Now that the
drug has been approved, those doors have been opening, in some
case widely, and that has been the case concerning possible
governmental support. While I cannot speak to the details of those
discussions or comment on the possible timing or likelihood of
working directly with the government to support our operations
financially, I can say that we are having high level conversations
with government officials concerning a possible pre-purchase of
large scale quantities of our product for distribution by the
government in the country's national hospitals.
Current and Projected Sales Activity
Q6: Turning to the drug itself, have sales of the product begun and,
if so, how is the drug being distributed?
A6: We have begun sales of the product on a limited basis in Abuja.
Because we are producing pilot scale quantities which are
insufficient to meet the expected demand for the product, we have
strictly limited distribution of the drug so that, at present, it
can only be acquired at Xechem Nigeria's headquarters at Sheda
Science and Technology Complex (SHESTCO), Abuja. Soon, we expect
to open three to four satellite offices in Abuja. These measures
will last until the full scale facility is completed when we will
turn to more traditional avenues of marketing and distribution
throughout Nigeria and beyond. Keep in mind that once on the
medicine, a patient must continue taking it on a daily basis
without interruption in order for the drug to be effective. One of
our big concerns is making sure that once a patient begins taking
the medicine, that person will have uninterrupted access to the
drug going forward.
Q7: How many patients do you expect to serve before the completion of
the full-scale facility?
A7: Based on the quantities of the finished product now on hand and
our current small-scale production capability, we project that we
will be able to meet the needs of approximately 20,000 patients
per month on an annualized basis pending completion of the
full-scale facility.
Q8: What is the current price for the drug and what sales volume do
you forecast for this initial period prior to full-scale
production?
A8: We are currently charging 3000 Naira (USD $23) per month for adult
patients and 2400 Naira (USD $18.50) per month for children. If we
meet our target of supplying 20,000 patients per month on average
during the first year, this will result in annual sales of
approximately $5 million during this period of limited production
capability. That number could be significantly higher if, as we
expect, we are successful in achieving some incremental increase
in capacity between now and the time the full-scale facility is
completed.
Q9: Once the expanded production facility is completed, what do you
feel is the market potential for this drug?
A9: There are approximately 4 million people in Nigeria alone
afflicted with Sickle Cell Disease, of whom we believe upwards of
50% live in urban or quasi-urban areas where average income levels
are believed to be sufficiently high to absorb the retail cost of
the product. Realistically, we believe we should be able to
penetrate more than half of that segment of the market over a five
year period, which would result in estimated annual revenues to
Xechem Nigeria of approximately $200 million at today's prices.
And that is for Nigeria alone. Needless to say, down the road, we
expect to generate additional revenues from sales of the product
throughout Africa, not to mention India and the Middle East and,
of course, Europe and the United States. Also, these figures do
not take into account additional sales that may be possible to
poorer segments of Nigerian society as part of a pre-purchase or
other support program with the government of Nigeria.
Q10: Can you speak to the substantial decline in the price of Xechem
stock that has occurred since the launch?
A10: There are many theories on that, and it's probably best for me
not to address them directly. What I do feel comfortable in saying
is that we have something very special going on in Nigeria right
now and have unquestionably accomplished a great deal in getting
to this point in spite of the many obstacles in our path. I am
confident that as we secure one or more traditional bank type
financings and move forward in the implementation of our business
plan, things will change markedly for Xechem and its shareholders.
My message to our shareholders is this: the patient investor will
be rewarded as we progress toward full scale production of this
historical drug.
Say fishhead....Ive been in this before when .06 was support. Sold on the spike....and have been watching this stock for several years. One thing I'm feeling good about is that there are many followers (IMO of course) that are waiting for the goals that this company has to materialize. It's been a long road from the idea that they are going to be the largest distributor of biogas in the northwestern US. In short, several of the eggs are about to hatch and many will want a piece of the chicken coop. BUY down here as much and as often as possible and get yourself setup for some substancial profits next year.
At least I should know what stock I'm investing in...."Doh"....and to address gte_gold's signature...IESV to da moon. Jk
I think so too...I'll be diverting funds into IESD again. It's been a while but I think the time is right.
From: "Vicky E. Kenoyer" <vkenoyer@intrepid21.com>
To: vkenoyer@intrepid21.com
Subject: Intrepid Technology and Resources Inc. President's Message 12 Dec 07
Date: Thu, 13 Dec 2007 13:02:38 -0700
PRESIDENT’S MESSAGE
PRESIDENT’S MESSAGE
12 Dec 07
A MAJOR MILESTONE !!
We have been notified that yesterday’s (11 Dec) gas samples will be the last required by GTI to complete the gas testing protocol. These should arrive in the GTI labs in Chicago today for analysis and once those results are compiled, GTI will produce a formal report for Intermountain Gas Company. We expect that with the holidays fast upon all of us (including GTI and IGC), that official report will not be ready until after the first of the New Year, but we have already been told on a 3-way call among ITR, GTI and IGC that we have not only met, but in fact, exceeded the Federal Energy Regulatory Commission (FERC) standards for pipeline gas quality and have done so consistently since the first physical sample was drawn and shipped on 24 July.
We are very pleased – deservedly so – and this marks a tremendous accomplishment that needs to be appreciated in its true context. No other biogas producer we know of anywhere in the country – or elsewhere for that matter – has ever completed such a rigorous and thorough testing protocol, let alone come through with such flying colors. We have just set a pretty high benchmark for others to attempt to achieve and have rightly earned the bragging rights of being “the first”. But beyond bragging rights, this now opens the door to our being able to sell our gas to virtually anyone without restriction and without question as to its purity and acceptability as fully-qualified natural gas.
But before you ask the obvious question, let me answer it by reminding you that in my Nov President’s Message I said we made a business decision that while awaiting formal certification by GTI we would start trucking Whitesides gas over to the WestPoint plant for use in the heat exchange system during start-up operations in lieu of bringing in much more expensive propane. This would also allow us to avoid the expense of having to switch out burners to accommodate the propane. We have been cycling our two gas trailers between the two plants for the past 3 weeks; one filling at Whitesides and one emptying at WestPoint. It’s been working out very well and we are learning a lot about loading, transport, and offloading in the process – knowledge and experience that will pay dividends once we start doing this for a living.
We will need to continue this process until early February when WestPoint gas production levels should be high enough that we can “wean” the trailers away and the plant will be self-sustaining.
Speaking of production levels, I understand that there are rumors and even suspicion about production levels at Whitesides. Some have even accused us of willfully withholding information. I am sorry that such a misperception exists. I will tell you that we are currently at about 65% of where we hope to be based on our experience with the original 2-tank system at Whitesides and that the trend is continuing to rise, albeit slowly. At the same time, I will once again remind you all that we have been trying to get the message across that these bugs we are dealing with are not exactly your “A” students and they do not fit the “now-generation’s” immediate gratification mold. They, in fact, occupy the last three slots on the food chain and if their energy levels were any lower, they wouldn’t even be on that chain. As I also shared with you in an earlier message, we brought in expert microbiologist consultants who did a very thorough evaluation of our system and bugs and their take-home message to us was that our biggest problem was our lack of patience.
There are also a lot of rumors circulating about a cattle feed supplement based on an ionophore called “monensin” being the reason our bacteria growth is so slow. Monensin is the active compound in Rumensin, a more familiar brand name of one of the feed supplements available. I will not attempt to explain how it works, but if anyone is interested, you can google it up. The bottom line to this story is that it is frankly immaterial at this point as to whether monensin is the cause of our slow increase in production or not. This product is in WIDE use throughout the dairy and beef cattle industry and its popularity is most definitely on the rise. And no wonder. With the potential to increase milk production by 1-4% and reduce the overall feed bill by as much as 6%, it is likely here to stay. However, if it is affecting us in that way, then it is affecting ALL anaerobic digestion processes – regardless of technology employed – in the same way. We can cry about it, or we can learn to deal with it. ITR has chosen the latter path – all the more reason to concentrate on developing as many different product lines as we can off the digester residuals.
That’s the gas situation.
Regarding fiber, you already know we sold our first load at $16 per yard – a better price than our initial proforma were based on. We continue to stockpile and cure fiber during this low demand season in anticipation of more attractive marketing opportunities after the first of the year when nurseries begin ordering in their spring stock.
Carbon offset credits are a hot topic of late, and we have attracted considerable interest in the form of several competing offers for those we have accumulated to date and those we will generate going forward. The protocols used to “verify” such credits are tightening up under increased scrutiny and the desire for US generated credits to be competitive in the global carbon trading market place. As a result, if you qualify under the tighter protocols, the numbers of credits go down, but the price goes up. During this time of flux in the ongoing protocol refinement period, we continue to document methane burned at our plants (credits can be sold retroactive) and work to negotiate the best overall “deal” among our various suitors. Once we select the best horse to saddle, we will move forward with the verification process and get on with selling the credits. Verification will be done by the eventual buyer and is a much shorter and less painful process than what we had to do for gas testing – but still takes a little time to get done as it requires a physical on-site visit by an independent verification team. Meanwhile, the credits continue to build.
With the above in mind, we are, in fact and at last, producing saleable commodities and revenues are in sight on all three fronts: gas, fiber and carbon credits (or Voluntary Emissions Reductions or “VERs” in the still evolving vernacular).
Best wishes to you all for a wonderful Christmas and New Year Season…and here’s to 2008 being a great year for us all!
Jake
Intrepid Technology and Resources
501 W. Broadway, Suite 200
Idaho Falls, Idaho 83406
Phone: 208-529-5337
Fax: 208-529-1014
Looks like a good time to get back in...Xkem needed to make some changes and looks as tho they are moving foward toward the light. Onward thru the fog....I'm back in...morning all.
And, again, I have an on going respect to you and the others here that refuse to give up and give the board all the research possible as to what happens to a seemingly failing disaster as the powers that be try to bury it. It's still a learning process and will be for quite a while, I'm sure. I will continue to read the posts here. I guess I answered my "why" post. Fancy that.
Waiting on me?? I'm just curious about those that haven't moved on...accepted the loss and moved to greener pastures. (tho, I would never sell down here...even if I could.) I will admit that I have stuck my head in every once in a while to check on the level of drama.
Since this is the first trading day, that I know of, that has shown no trading at all for this epic stock....I'm assuming that this chapter is coming to a close and that there is only lessons that will be formulated to learn from. I think the results of any litigation are fruitless weighed agianst past actions and dreams of this company and it's shareholders. I've had many that I came to know that are still holding the bag....and I hope that all are never subject to this kinda experience again. Those who carry on here have my respect as I have learned much, I hope, thru their research and persistance.
Does anyone know why we're going down the drain here....back down to ye ol .04 support.
7 posts today....say goodbye to a legendary board.
Just thought I'd drop by the room and pick up a dounut...looks like an up day...have a good weekend all.
Hey there Ralphy....getting in as much doomsayer time as possible before they ban you again. Your adding nothing new and chastizing the bagholders, just like before. Your something else Ralph.
Very brave and level headed post. One of the only ones that will be posted in an even light....while the viruses of IHUB will forever look for hosts. Gives me hope as that is what I have left. Oh yeah, and a gun and some bullets. So.....hope or dispare. It's that simple.
Your ability to get yourself banned is, I think, a personal gift. The condesending rudness that permeates your posts. But I think your just that kinda person. The person that banned you before should be the expert on specifically why. Just keep on being that poster we all know and love. Look foward to your next "time out".
Headed for the 'ol ban box again, Ralphy. Smart.
NICE...you hit the center of the target with that post.
I see your back to save us from ourselves....same ol Ralph. Anything original to contemplate?...or just the same dribble?
"Sort of like CKYS" by brentjanice:
Well said, brentjanice, and easy to understand for those that can't grip their place as a poster. I'm one of those that have a ticket but am happy to quitely sit back and see what transpires. I'm put off by the naysayers, interested in the positive side of THIS one because there's nothing much I can do about the present situation, and tickled by the ones that can make light of a less than perfect situation. It's all theater. The agony and the ectasy. Bring on the popcorn.
What does ya say we kick this ralph guy to the curb for repeated conjecture. (baseless, factless, not bashful but full of bash).
Gosh Jeany...you get any more positive and I might lick my monitor.
Hear, hear. I sure wouldn't. And his silence gives me hope.
BEWARE
Always be wary of someone on a stock board that spends an inordinate amount of time trying to help you "correct" your investing mistakes.
These stock manipulators are either all the same person and, or working together, associated with other bashers.
The birthdates of their handles, the timing of their arrival on the board, the relentless repetition, trying to save us from ourselves.