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Wednesday, 12/16/2015 7:05:19 PM

Wednesday, December 16, 2015 7:05:19 PM

Post# of 37220
Synopsis of conference call - Those that were on it please feel free to fill in any gaps. I will do this in two posts.

First was a discussion of the Milling technology. The company currently has an order for 5 machines. They expect to fill this order 1st Quarter 2016 (I think he may have said late Feb. but not certain). Currently machines are being built in California. The first 5 machines are smaller basic models. They could have add-ons such has change in size of motor. Cost to produce the unit is around $2k and they sell for 12.5K to 15K. He expectation is that each unit will net about 10K. He also stated that it is not uncommon to get orders of multiple units at trade shows (he said 20) but I sure this is very variable. The current mills on the market have three major components and are subject breakdowns. These new mills have one and do not break down (gotta love Snaper!). He is confident this will be a productive business and believes they can do about 3 million in revenue first year. As they build the business he thinks it could grow to around 100 million market cap as a stand alone company.

Eventually they will look to go to a more streamlined production process. They can also build much bigger machines that might sell for as much as 100K to 300K.

Please feel free to correct of add to this.

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