Huzzah! What's interesting here, as evidenced below, is that MJC is talking out both sides of his mouth. It is what it is, I ain't skurred!
Let me repeat myself, aside from those cases where we appear to have additional validation, how do we know how many of these bluff and bolster type MOUs, JVs, ad naseum are still at play?
Regards,
Julia Gulia
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From the 10k
NOTE 11 - Joint Venture
As previously reported in our Form 8-K filed with the SEC on July 6, 2015, we entered into an Operating Agreement and Statement of Work with Arete Innovative Solutions LLC (“Arete”). The Operating Agreement and Statement of Work govern the operations of Arete-Sigma LLC (the "Joint Venture"), a joint venture formed by us and Arete for the purpose of pursuing business opportunities related to AM utilizing our EOS M290 or like machines, including enabling and implementing sales and manufacturing transactions. Under the Operating Agreement and Statement of Work, among other matters reported in our Form 8-K and set forth in the Operating Agreement and Statement of Work, (i) each of Sigma and Arete hold a 50% ownership interest in the Joint Venture, and (ii) the Joint Venture is managed by William F. Herman, President of Arete, subject to certain limitations. Based on the Operating Agreement, the Company holds the non-controlling interest in the Joint Venture. Therefore, the Joint Venture has not been consolidated, but rather is accounted for on the equity method of recording investments. During the year ended December 31, 2015, net operations resulted in a loss on the investment of $778. The Company intends to terminate the Joint Venture in the first half of 2016, but is continuing to pursue business opportunities related to AM utilizing the Company's EOS M290 or like machines.
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From the Q4 earnings call transcript:
Operator
[Operator Instructions] Okay, we have one more question coming from Tim House [ph], a private investor. Please go ahead.
Unidentified Analyst
Hey Mark, thanks for the call. I just had a question about Arete. Is that producing any fruit, is there any revenue or pipeline or anything like that that's filling up with those guys and your machine that you have it in house?
Mark Cola
Yes, so great question. Arete Innovative Solutions and our resulting joint venture Arete Sigma was an opportunity for us to explore the contract AM side of it. We continue to remain active with Arete. Majority of the interest, and again this is more reflective of the state of the industry at the moment, the majority of that activity seems to be on the design frame in front right now, and so it hasn't resulted in contract AM revenues for us yet, but we anticipate that the changes we move through 2016.
