Statement of intentions of the company:
In 2014, the company had large settlement costs the large negative interest expense in 2015 is a result thereof the company had to strongly reduce the fixed costs including the sales costs. No business can survive by just reducing fixed costs back, but this is a necessary and logical operating liner as revenues remain behind.
The licensees are realizing the final P/O, the sales organization of Hydrophi closing licensing deals. The royalties of this are increased. (greenmachine2 post # 5924)
The oil price unfortunately is at a record low since 2009 however, there are some bright spots:
1) The Chinese Government wants to stimulate Chinese exports on which the central bank has devalued the Yuan. This provides an incentive for the Chinese business and so for the oil demand.
2) The trade embargo with Iran has been lifted and partly caused an oversupply of oil. Even Saudi Arabia is drilling currently no new oil wells because the benefits at this time outweigh the costs. It is subject to a lot of oil pumped out of the ground. The same is true for the US. on the long run this causes higher oil prices.
3) In the 70's an oil boycott was introduced by OPEC countries. In response, the US had done something similar this trade barriers seem to be more flexible. Better geological distribution between supply and demand causes higher oil prices.(greenmachine2 post # 5909)
4) Also the obsolete nuclear power plants in Japan (59 plants) and Germany (22 plants) delivers an increased demand on fossil fuels while only stricter environmental regulations will be implemented.
