Highlights of STRU Filing (previous INTRO box)
What follows are selected excerpts from the official SEC Filing by Struthers Inc, with certain items in bold.
Form 10-12G/A for STRUTHERS INC/SC filed on 28 Aug 2000
Principal sources of revenue are through the sale of gilts (young females that have not given birth to pigs), mature boars,
barrows (castrated male hogs), semen, artificial insemination supplies, embryo transfer services, including embryo transfer
equipment and training.
The Registrant began in 1998 developing a semen delivery system for use in artificial insemination which is now commercially available and a non-surgical porcine embryo transfer system which to date is not commercially available. Embryo transfer is the ability to remove an embryo from a genetically superior animal and introduce it into a surrogate host (mature recipient female). This has been done successfully, commercially in other large farm animals but has never been
successfully commercialized in swine due to the intricate nature of the swine reproductive system.
The Registrant believes that swine industry demands for accelerated genetic advancement and selection will be met by the safe and cost effective Struthers embryo transfer system and the use of the Registrant's superior genetic line (breeding stock, semen). The Registrant believes that embryo transfer and genetic implantation will become the principal commercial vehicle of genetic sales and exchange in the swine industry as seen in other animal husbandry industries (i.e., cattle) and will lead to new and innovative breeding strategies for the direct selection of lean high quality pork. Registrant believes by utilizing the combined benefits of Struthers superior genetic line and embryo transfer technology, profitability is increased while the risk of disease transmission is reduced.
The Registrant has perfected the surgical Embryo Transfer System and is currently improving the procedure to
include the non-surgical implantation of embryos. The Registrant anticipates including this technology into its
overall marketing plans during the fourth quarter of 2000.
LSG is currently able to supply seven superior lines of swine genetics. All genetic sales (semen, live animal sales, and
embryos) will occur through LSG.
The Registrant has entered into written agreements with 11 separate swineherd operators (gilt multipliers) consisting of
approximately 28,500 swine to provide breeding gilts and barrows which will be used to increase the sales of semen, embryos and gilts, as well as the sale of farm fresh pork products.
The Registrant currently has alliances with five swine producers for the rearing of our superior genetic line of hogs for market
under Registrant's specific developed programs in order to fulfill the needs of identified meat packers.
Currently, Elite Visions, Inc., a wholly owned subsidiary of Registrant, is constructing a meat distribution facility for the
Registrant's Tender Prime(TM) line of meat products in Waukon, Iowa. They are also, in the product development and testing phase of the Semen Delivery System and the Embryo Transfer System, incorporating the Gourley Scope (TM) in order to make implantation of swine embryos non-surgical.
Muller, A.I., Inc. a wholly owned subsidiary of Registrant, provides wholesale and retail marketing of artificial insemination (AI) supplies, and equipment. Provides boar stud and breeding facility-consulting services consisting of facility design, feeding and health maintenance, and AI training programs.
Registrant is a member of the National Pork Producers Council (NPPC) and the International Embryo Transfer Society (IETS) and utilizes resources made available by these organizations (i.e., training, education, and research papers).
At present, the Registrant must compete with both national and international swine genetic companies that are vastly larger in scope and resources. However, to date, these companies can only provide genetics via live animals and semen sales
to producers. However, to date, not one company alone supplies all of the services that the Registrant can and does supply, i.e., semen, gilts, boars, artificial insemination supplies, the reproductive technology of the semen delivery and embryo transfer systems, animal husbandry and facility design consultation and training.
Employees: The Registrant and its subsidiaries employ a total of 31 people.
The Company's current stud boar unit located in Bricelyn, Minnesota, with 206 Great Grand Parent boars that produce semen for sale, will be augmented by the addition of a new state-of-the-art stud boar facility also located in Bricelyn that will house 400 additional boars. To date, the new facility is not operational due to construction delays, but the Registrant believes that it will be operational during the fourth quarter of 2000.
Authorized to issue 906,520,000 shares of which 900 million shares are common stock and 6,520,000 are preferred stock.
369,969,921 shares are issued and outstanding as of August 15, 2000.
As of June 30, 2000, the Registrant had net working capital of $4,761,782
$305,715 in accounts receivable
$610,066 in inventories of animals available for sale.
As of August 15, 2000 there were approximately 1,503 holders of record of the Common Stock.
................................................................Jun 2000...............Dec 1999......................Dec 1998
TOTAL REVENUE................................... $1,783,059.............$1,278,712...................$1,447,284
NET LOSS.............................................. $ (784,954)..............$(597,861)....................$(524,129)
TOTAL ASSETS................................... $12,283,475..............$5,348,491.........................$2,278
TOTAL LIABILITIES..................................$4,176,755..............$4,756,817...................... $87,643
TOTAL LIABILITIES AND -
STOCKHOLDERS' EQUITY.....................$12,283,475............ $ 5,348,491........................ $2,278
The Registrant currently generates an average of 450 gilt sales per month with an average sales price of $195 per gilt gross.
The Registrant expects to generate approximately $1.25 million in gross revenues during 2000 from Gilt Sales
Each boar produces 1,200 doses of semen per year with a retail price per dose of $7.00. This equates to a maximum of $8,400 in gross semen available for sale per boar per year.
The Gouley Scope has been used effectively in semen dosages of 1/8 the original amount.
Boars - Boars are sold on an individual basis from LSG breeding stock at prices ranging from $500.00 to $5,400.00 depending upon lineage and quality.
The Registrant agreed to purchase animals based on the Iowa-Southern Minnesota Price Index commonly used at hog
processing plants on live animals based on per 100 lb. weight live - (example: 250 lb. live animal X $50 per 100 lb. weight =
$125 for the animal) on the day of purchase plus a genetic bonus of $13 per animal for A-B Duroc animals and $10 per animal for Fairmont Finishers animals. Only animals that after visual inspection meet desired requirements of weight (240-250 lbs.), muscle definition, and good visual and documented general health status (no coughing, runny noses, physical injuries or defects, veterinarian records, etc.) are selected.
Current premiums paid by meat packers for our top quality hogs range from $9.00 to $22.00 per hog. Percentages paid to
alliance hog producers vary on a per contract basis, but generally range between $4.00 and $5.00 per hog
Cheers
