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ckopf: not to put too fine a point on it, but please note that receivables are "booked" or posted when possession of the product is transfered; i.e. when shipped. . .
Regarding your comment:
"Once the product goes out the door, payment will not come in to RPI/DTE for 3-6 months. That means that most of our receivable income has not been posted yet or is just starting. So at this time we need more product out the door while every day or overall situation looks better and stronger"
I agree with your statement that payment (cash basis) might not be received for several months, but this doesn't mean that the receivable isn't reflected in financial reports. I also agree that we "need more product out the door!" But, I am a bit more fuzzy about the statement that our "overall situation looks better and stronger." :(
Regards,
Steve
Did anyone listen to the Business Update yesterday, the 21st?
I have listened and was under-whelmed. No real clear picture emerging about profitability, which is what I am concerned about. When does management project that Earthshell will be able to free itself from debt and equity funding for survival? . . . In the meantime, existing small shareholders are continually exposed to dilution or diminishment of value in their stock positions. What changes here?
Please help me see the silver lining in this cloud! Just seems to me that management is asking for patience and more time, like they have always done . . . which would be understandable if they had not already burned through so many millions of our dollars! Once again, love the product (in principle); loath the management (in training).
Anyone care to comment? :)
-Steve
KP: Even I am encouraged by the latest developments! No word yet on financial operations, production utilization rates, or how well the product is selling vis-a-vis the competition, but one has to be impressed with penetration at the retail level. They certainly have been aggressive with making the product available. Maybe small accumulation of shares wouldn't be such a terrible idea at this time. Believe me, it's been a long time since I've thought this positively about ERTH.
Regards,
Steve
Well stated, Sangwynn, and good point! The glass is half-full.
Steve
What about this merger thing? Doesn't seem like a good move to me for existing minority shareholders. Won't we be "merged" right out of existence? Dilution of ownership ( a chronic problem with this bunch) is my concern. If it is done on a one share of old for one share of new then maybe okay, but I suspect that isn't the way this will play out. Any of you have thoughts about this?
-Steve
Thanks for confirming availability in S&F. That is a relief, at least. Think you are right about waiting to see how things go with sales and penetration in the market. Still, this confirms what I was told several weeks ago, and that is positive news (for a change).
-Steve
I've received a reply from one of Smart & Final's customer relations personnel. I inquiried about availability of Earthshell's 9-inch plates and 12 oz bowls through them. I was told that they currently have these items in the stores, available for purchase. I also asked if one could order these items on-line and was told that S&F doesn't offer this service at this time. They didn't provide pricing information.
Isn't this good news? Why so quiet about this?
They operate 249 non-membership warehouse stores for food and foodservice supplies and are in California, Oregon, Washington, Arizona, Nevada, Idaho and nw Mexico (that's northwest Mexico NOT New Mexico) lol!
Is there anyone in these areas that could check on this information? I, for one, would like to know if product is being delivered.
Haven't heard anything from Schnucks Markets yet but will inform the board as information becomes available.
All the best,
Steve
KP, I've emailed S&F and Schnucks about Earthshell availability as you suggested. I'll advise the board with respect to their replies.
-Steve
I have been more alert of late with respect to what is happening with Earthshell. I don't usually follow the Raging Bull board either, but have been a little more attentive lately to all avenues of information. It bugs me no end to have no information with which to make informed decisions regarding this company - especially since management chooses to remain silent. Still, I sense change in the air and want to watch this company a little more closely now. Call it intuition!
My sense is that we MAY be in for some good news soon, but have nothing to base this on. I agree that fantastic claims have been made by others trying to play this game of environmentalism and the ADM release could be another in a long series of such announcements. None the less, it is of interest.
I agree that WalMart doesn't figure into the equation much at the moment. It would be more psychological for the market than tangible. IMHO, the MacDonald's affliation would be sweet. I considered it a body blow a long time ago when that business never developed its potential. Now, I turn my attention to the Smart & Final or Schnucks Markets relationships. I'd love to find out if they have product on their shelves. I've checked the web sites of each and can find nothing about Earthshell.
-Steve
This news release from the Raging Bull board should be of interest to those of us watching Earthshell. Comments?
Best to all,
Steve
Press Release Source: Metabolix, Inc.
ADM and Metabolix Announce First Commercial Plant for PHA Natural Plastics
Monday February 13, 12:01 pm ET
CAMBRIDGE, Mass., Feb. 13 /PRNewswire/ -- Archer Daniels Midland Company (NYSE: ADM - News) and Metabolix have announced that ADM will build the first commercial plant to produce a new generation of high-performance natural plastics that are eco-friendly and based on sustainable, renewable resources. The plant will have an initial annual capacity of 50,000 tons per year and will be located at a major ADM North American site and serve the joint venture being established by the companies.
The plant will produce PHA natural plastics that have a wide variety of applications in products currently made from petrochemical plastics, including coated paper, film, and molded goods. They are produced using a fully biological fermentation process that converts agricultural raw materials such as corn sugar into a versatile range of plastics that have excellent durability in use but are compostable in both hot and cold compost and are biodegraded even in the marine environment.
"The plastics created from PHA polymers are natural, biodegradable and renewable, and we are pleased to begin their commercial production," stated G. Allen Andreas, ADM Chairman, Chief Executive and President. "As the world's demand for petroleum continues to increase, ADM believes that this facility is a positive step towards producing renewable plastics that offer the global marketplace an alternative to traditional petroleum-derived plastics."
"A broadly useful family of bio-based, biodegradable natural plastics will be commercially available for the first time," said Jim Barber, President and CEO of Metabolix. "Consumers and users concerned by the negative impacts of persistent petrochemical plastics on the environment and their dependence on volatile, non-renewable resources from unstable regions will now have a practical alternative."
In 2004, ADM and Metabolix announced a strategic alliance to commercialize the Metabolix proprietary PHA technology, which is protected by over 130 issued and pending US patents.
PHA natural plastics are a broad and versatile family of polymers that range in properties from rigid to elastic, and they cay be converted into molded and thermoformed goods, extruded coatings and film, blown film, fibers, adhesives, and many other products. They have excellent shelf life and resistance even to hot liquids, greases, and oils, yet they biodegrade in aquatic, marine and soil environments and under anaerobic conditions such as found in septic systems and municipal waste treatment plants. They can be both hot and cold composted. They are made using proprietary processes developed by Metabolix from renewable and sustainable agricultural raw materials.
Good discussion, guys- one of interest to me and for this board! KP, I too, have been kicking myself for not unloading around $3. I sold some at $3.30 last summer but was foolish and held on to the balance thinking this might turn around. I'm concerned about the latest dip substantially below $2.
Here's some of my concern; why haven't we heard a word about the product launch at Smart & Final, Inc (235 non-membership stores) or at Schnucks Markets, Inc (102 stores and 99 pharmacies)? If you recall, in December we were told that product would begin to flow to these outlets in January. Earthshell's US licensee Renewable Products (RPI) was ready to go with 9-inch plates and 12 oz bowls. At least that is what the announcement stated.
I want desperately to believe in this company, but the track record has been pathetic! I don't need to remind members of this board about that. I'd feel a whole lot better if there was finally a substantiated delivery of product to Smart & Final or Schnucks Markets. (I won't even question the claim about the company's investigate of other potential retail outlets)!
-Steve
Thanks for your viewpoint, investorsa. We are basically in agreement, but I guess I'm a bit more cynical about Simon. Long ago, I began to question the validity of Simon's judgement and business acumen - and found it constantly came up wanting!!!
I think there should be news coming shortly, too. I'd like to hear about product shipments. Does anyone have access to the retail centers that are supposed to be selling Earthshell products? I'm curious if product is on the shelves yet. We were told that January would be the milestone. These retail outlets are not in Ohio, so I'm unable to check on them.
Vacation in Maui, cool! You've picked a great time to spend there. I'm sick of our winter already and it has been a mild one! Let's hope there's good news coming soon out of Earthshell for all of us. Then, instead of a plastic palm tree, a blow-up kiddie pool and a heat lamp, I can enjoy the "real deal" just like you and vacation in Hawaii!!
Best to all,
Steve
Don't know what to make of this latest development, but I do know that Simon Hodson didn't add ANYTHING of value for individual investors in Earthshell! For those of us that have been following this company for years, I can assure you that Simon was expert on empty rhetoric, but never able to execute on any strategic initiative, despite his "reassurances" during stockholder's meetings, that "this or that" was just about to turn things around.
If Earthshell's ship of state is rudderless at the moment, perhaps they can do better without this expensive piece of furniture as "Chief Executive Officier."
This begs the question, however . . . what level of commitment will EKI exhibit towards Earthshell into the future? Seems that the bonds are being dissolved bit by bit. Hummmmmmmmm
Your thoughts?
Best to all,
Steve
KP, I couldn't have said it better myself. You stated my position with precision! We've seen all this before. Still, I'm hopeful, but less than totally optimistic.
Good luck to all of us longs!
-Steve
Just received notice that the web-cast shareholder's meeting has been canceled due to . . . "technical difficulties". They are supposed to notify us when it is rescheduled.
I don't know about what you folks think, but as for me, do these buffoons ever get anything to execute? It is pathetic.
Best to all,
Steve
Current report Form 8-K
Well, Sangwynn, this is certainly timely regarding our latest inquiries about the Meridian deal. Guess it puts to rest your question about "What happened to Meridian?"
Item 1.02 in the 8-K notifies about the termination of the sublicense agreement with Meridian Business solutions stating, "MBS had not yet implemented the sublicense granted to it under the MBS Sublicense agreement."
I'm unclear on the exact meaning of the statement, "The effectiveness of such sublicense agreements is expressly conditioned upon the satisfaction of certain conditions before July 31, 2005, including the receipt by the Company of $2.6 mm in technology fees and other payments." Does this infer that Earthshell must receive the fees from MBS or other entities?
For more details, check the Earthshell website for company SEC filings.
Regards to all,
Steve
Excellent questions, Sangwynn. I, too, was wondering the same. We all may recall the following from a "news release" in Dec 2004:
"MBS is anticipating initial equipment delivery of eight modules from DTE by the end of
January. Installation and debug of these eight modules will take approximately 45 days
and be ready to ship EarthShell plates and bowls to the marketplace in late March."
No word from Earthshell about the status of the Meridian alliance since the March date, despite the above. Now these guys release news of another relationship, with no mention of previous agreements? I'm happy for today's run up in the stock's price, but gosh these guys are criminal in their governance!
Holding, but disgusted,
Steve
It's so bad that we're not even sure there's anyone left in the office to file the 10K's. What was all that XXXX about Mexico several months back? That really went far, didn't it?
Thanks, investorsa for posting. Will there be anyone left in EarthShell's office to turn out the lights? Geesh, this is pathetic!
Regards to all,
Steve
I'd like to echo investorsa's sentiments. Happy New Year everyone. I'm feeling a little bit more positive about Earthshell's possibilities for the coming year. Of course, experience has taught that a little skepticism is in order for any news directly attributable to Earthshell spokespersons. But, there are some great developments in store, let's hope! Execution will be particularly important this year.
All the best to everyone.
I agree that "the debenture thing" is a good development since it saves the company to fight another day, so to speak. Don't forget, however, that in settling this, Earthshell just throws more stock out there - following an all too familiar pattern. The 1-for-12 reverse stock split some time ago was a real lesson to me- and I'd feel a lot more comfortable if management indicated an alignment with shareholder interests. I'm not happy with anything that furter dilutes our position, but if it saves the company I reluctantly accept it.
Don't get me wrong, I think there is great potential for this company, but what torques me most is the blatant lack of regard for good corporate governance. Management didn't "pare down" their resources by choice in some strategic action plan -they squandered them recklessly and speculatively! Now they don't have the resources to even respond to shareholder questions? Oh, please! They owe us all an honest response about Hood and recent business developments - the good and the less favorable. I suspect we'll continue to wait.
Sangwynn, thanks for your message. It's reassuring to know that at least a few of us still demand that this company backs up its news releases with actual execution. Of course, management's credibility has long ago been shot, but a guy can dream, can't he?
I've sent an email request for information regarding the status of the Hood agreement to the investor's relations dept at Earthshell, but won't hold my breath. If they respond with anything of interest or importance I'll be sure to share it with this board.
Does anyone know what ever became of Hood Packaging and the "agreement" signed for the food wraps? A release on Feb 10, 2004 stated that Hood would start production of food service wraps "beginning early in the next quarter." A quick review of Hood's website reveals that it doesn't yet mention the new (for them) product. Of course, in typical fashion for Earthshell, we are long overdue for any kind of a production event - and yet no word from management.
Then, what about DTE's planned shipment of 8 modules to MBS, which were to be "ready to ship in early October?"
Is management still awake (or even alive)? What's up?
KP- I couldn't agree more with Tim. Only revenues (and I don't mean the POSSIBILITY of revenues) are of importance to me now. After all the hype, EarthShell must tangibly deliver. Though I'd entertain the notion of additional purchases, they would be merely what I consider to be opportunistic short term plays - because my "long-term" money has been sunk in this company already - I will not consider putting in anything more for the long haul. Besides, I have little confidence that Simon and his gang have the skill sets to nuance their way out of this latest challenge without sticking it to existing shareholders. History has proven his track record to be less than stellar.
Best to all
Steve
Isn't it time to purge this Board of Directors? IMO, selling this stock doesn't answer our questions nor solve the company's problems, even though, on the individual level, it is the rational thing to do! Disney should be a leason to us all. Simon Hodson must exit as Vice Chairman of the Board, and again I ask the question . . . what does Layla Khashoggi bring to governance of this company? This Board has failed the shareholders miserably, but of course, the Board is stacked with insiders. Are there any attempts by management to explain the current situation to shareholders? . . . NO! Let's just hope there is something left of this company after Simon finishes "experimenting" with shareholder funds!
I hope that 20% remains the royalty figure we are dealing with, but considering ES's situation, don't you think it is reasonable to assume that that number will be revised downward a bit? Perhaps because this is an exclusive agreement for the wraps, things will remain the same. Let's hope so! Any thoughts on this?
Hi KP and all - I'm holding a little too but not overly enthusiastic about Earthshell anymore. I agree with TFO, if Huhtamaki was still truly interested in producing as a licensee in the near future, it would have kept the line around. Which begs the question, isn't it unlikely that EarthShell will be able to re-negotiate royalties approaching anything near to their previous "pie in the sky" demands on licensees? Since ES is not in a very strong position, all of the "break-even" assumptions that we've been going on are out the window. At this point, nobody knows how many lines it will take to keep this company around. It's a little un-nerving! But then again, even ONE producing line would be an enormous improvement!
Best to all,
Steve
KP - you're not the only one holding long. I'm in partially because it will be too painful to exit and since ERTH is down so much already, I may as well hold to see what happens. But, it is getting harder every day NOT to feel like a fool! Gosh, I wish this company would get its act together with the licensees! Someone needs to start producing (and selling) something -
ANYTHING!!
Steve
KauaiPi - we are of like minds on the CC. I too, am holding at the moment because I see a little more wiggle room for this company although I've lost all respect for its management. How pathetic is this "new format" approach for the CC?!!! The sad truth is that this team knew in advance that their shameful record would be attacked by disgruntled shareholders calling in, therefore Simon didn't want to be confronted in public nor put on the spot. Better for him to organize his feeble thoughts beforehand and spin this as positive and "responsive" to shareholders concerns. It is shameful and doesn't fool anyone.
That aside, I thought the CC provided some (at least temporary) relief since it provided some information about the status of the business situation. There are gapping holes in this story, however!
For example, what are we to believe about WalMart's committment to this product if supply is not assured? At current stocking rates, what is the estimated time that inventory will last? It is pathetic that ERTH tells us in one breath that production has stopped and in the other that WalMart is being serviced out of inventory! How long will this last?
Also, I'm sick of hearing about the strong committment that SweetHeart has shown. Are they or are they not buying lines? If we believed PR from over a year ago, SweetHeart would have been producing months ago. More and more, I believe SweetHeart is playing this company. It's been a concern of mine for some time.
Mickey Dees was thrown out there to keep investor interest, but realistically, what is the likelihood that ANYTHING will come of it anytime soon?! Zero to none. Earthshell couldn't produce in sufficient quantities if it wanted to!
I am glad that the cash burn rate has been greatly reduced. But, of course, this was an absolute necessity for these guys to continue playing the game.
I, too, will let management know that IMO the new format falls far from the mark. They need the discipline of responding directly to shareholders!
Steve
I, too, see no earnings from product sales. In fact, after an admittedly fast review, I don't see anything that hints at any substantial product sales in the near future. What's the deal with the German operations? Seems like an inordinate amount of time to "adjust for a few bugs!" This is so frustrating.
I noted with interest, the report of votes cast at the stockholder's meeting. This, too, is hard to believe.
Best to all,
Steve
KP, the only thing I can add to our calculation is that we'd probably have to adjust for some percentage of loss due to normal waste, breakage, etc. Even if production runs 24/7 and full-bore, there would be some loss to breakage or inferior quality. I believe ERTH has targeted 90% efficiencies for the equipment. Thus, if we just multiply .9 X our earlier calculation, I think we arrive at a pretty good theoretical number!
regards,
Steve
Thanks, Earthdream. We're on the same page.
If I recall correctly, one "line" will accommodate up to 8 "modules". Was that everyone's understanding? From what I gather, ERTH is talking about 4 existing modules in Missouri. 2 plates and 2 bowls. Remember that management previously said that it will take 20 to 24 modules to generate enough royalty revenue to "break-even." (Hence, my concern about the still unachieved burn rate of half a million per month). So, at the moment we aren't even talking about one FULL line!!! There has to be some cost cutting and soon. (Along with a big increase in production volumes <g>)
I'm happy that DTE is shouldering support for ERTH. But, I'm not clear how this relationship is going to work. Simon tells us that the burn rate will be down to half a million soon. How is this possible? Where will the reduction come from if ERTH is assuming a new strategy (and I assume capital intensive) with respect to GEP? Will ERTH or will DTE assume the operating costs for the 4 modules running in Missouri? And for how long? Who handles the accounts receivable, accounts payable and other operating functions of a production manufacturing operation? Is ERTH leasing production floor space from DTE? How will revenue be booked and to whom? There's alot of unanswered questions. Least of all, where will ERTH get additional funding to support any further delays in the production rollout? The whole thing has me nervous because I have so little faith in Simon anymore.
Just finished listening to the CC. Much improved, but why no Q&A? Was there an announcement of the vote tallies or did I miss it due to muffled background if the speaker was not at the microphone? As far as I'm concerned, shareholders have a right to know how the final vote fell.
TFO, your perspective seems to echo my own. KP shouldn't worry about being misunderstood by the RB guys. It's probably a badge of distinction! I'll take increasing shareholder value any day. It would be rather refreshing if ERTH would follow this pattern for a change.
I also agree that at least part of the problem is the failure to execute the ramp up for actual production. We are already into the summer "picnic" season and I can't even find the products in the Columbus, Ohio area (a major market). I've said this before and I'll say it again . . . the partners can drag their feet nitpicking every little design or engineering challenge, coming to the table with a never-ending efficiency wish-list that costs ERTH valuable time. At some point partners need to start producing in volume and tweek the system as they go. Simon needs to show some backbone with the partners and candor with shareholders!
As for me, it is all about production and equipment orders. ERTH needs revenue desperately, nothing else will substitute. Best to all,
Steve
TFO, thanks for your posts. I, too, have just registered 36,200 votes against this board of directors and their proposals. IMhO, the r/s is a done deal. But, I'll resist to the end and hope others do as well.
This management team should be ashamed of their performance! $27,000 in equivalent royalty revenues for the first quarter, and Simon's salary alone runs us $41,667 a month! (Do the math). Need I remind everyone that their PROJECTED burn rate is $500,000 a month? It is an outrage that the compensation committee feels these salaries are justified at this time. I'd like to see a 25% reduction in salaries until they achieve profitability.
On another point, additional options should be out of the question. Authorization of 5m additional shares is a joke but one I hardly find humorous. Why don't they just begin to buy back shares at these rock-bottom rates if they want shelf stock for awards. At least this wouldn't dilute existing shareholders positions. (Of course, this assumes that they HAVE the money to buy-back shares and did not squander millions in manufacturing line prototypes that never seem to quite make the grade.) I still think that Sweetheart is stringing ERTH along. Something just doesn't seem right about their demonstrated level of commitment. Whew, I feel better! Thanks for letting me vent.
<grin>
KP, Indeed, I am withholding my director votes and hope that others will as well. I have no illusions that this will be anything but symbolic, but maybe it will give them something to think about, especially if enough of us act. Do you know if the final vote tally on all the propositions has to be announced at the shareholder's meeting? I'm curious to learn if they can skirt the issue of the vote by a simple announcement that each proposition "passed."
On a lighter note, your support for my "candidacy" for a seat on the board is much appreciated, but my position can be summed up as follows: " If nominated, I will not run. If elected, I will not serve!" My reasoning: It would kill me to play hall-monitor for this gang of self-serving thieves! <grin>
I called the ERTH office today to inquire about receiving our proxy statements and stockholders' reports. Though Scott Houston was not available (like, I should be surprised), the receptionist stated that the documents are scheduled to begin going out in today's mail. I thought, perhaps, this might be of interest to some. As for me, I remain long on Earthshell because the product is so good, but gave up long ago believing in this management team. Now it's . . (skip the dog-and-pony rhetoric) and SHOW Me The Money!
Best of luck with Earthshell.
Steve