EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

I think the digester has or will be paid for (more likely has by now). The question is whether ECOS made nay money on the digester. Here is a way to think about it.
- They has $595,815 invested in the digester as of 9/30/17 (see inventory account on 3rd qtr 2017 10Q)
- We know they continued to invest in the digester in 2018 to make it work to LRS expectations before acceptance.
- The purchase price for the digester was about $680k.

If you take $680k less the inventory cost and a reasonable estimate of the costs to complete, they likely made no money or cash flow on the digester. Chalk that up to R&D.

From the proceeds from the digester they need to pay back Kwak/HanscomK since they financed the construction. They owed HanscomK $629k as of 9/30/17. That number is likely higher now. My guess is all of the proceeds from the digester go to Kwak.

I don't think the byproduct sales have been that much. They may be enough to keep the lights on, pay rent and some other bills. They haven't paid the Nevada Secretary of State for their corporate registration or their public accountants for the audit. If the sales were going gang busters you would pay those bills (they are the lifeblood of a public companies existence).

Their annual bill for salaries is about $400k. My best guess is that they haven't paid the salaries in cash so they either paid them in shares or more likely they will show up as accrued liabilities.