Key Extracts from 2019 Annual Report – Filed May 6, 2020.
[compilation from both parts – additional carriage returns for clarity]
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Business Overview
Enviro-Serv, Inc is a Delaware Corporation seeking to build a portfolio of highly profitable enterprises that offer year-round services such as full-service pest control management with an emphasis on non-fumigation termite control and prevention.
The company already has secured many local municipal pest control contracts but in July 2019 secured a relationship with Native American Pride Constructors LLC to aggressively pursue Federal government business in the areas of pest control, landscape management and high-level environmental clean-up services.
The principle methods of competition in the Company’s pest and termite control business are quality of service and guarantees, including service quality, product availability, terms of guarantees, and reputation for safety, technical proficiency and price.
Enviro-Serv’s other business operates in Wisconsin and in May 2019 commenced a full-blown Hemp operation beginning with seed germination and then onto transplanting of over 12,000 hemp plants into 10 acres of farmland located in Beaver Dam, WI.
The company has not generated material revenue on this hemp operation harvest at the time of this report.
At the time of this report, our hemp biomass sits in queue at Mason Jar Organics a full processing facility located in Plymouth, WI.
The company spent about $7,500 monthly in cash in 2019 plus certain stock options for services rendered to operate the hemp initiatives in WI throughout calendar 2019.
The company does not expect revenues to be generated from the hemp harvest until late Q2 2020 or beginning of Q3 2020.
The reasons for this delay in hemp monetization were delays in processing equipment coming in from China and severely delayed due to COVID-19 shipment holdup.
The company will be making key decisions during this quarter regarding the processing of the hemp biomass for the usage of CBD oil vs smokable flower and what percentage will be used for both.
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Business – More Detail - currently has 3 subsidiaries: Pest Control (core business), Hemp and Hemp Oil Processing and Distillation.
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Pest Control – Core Business:
Full-service, licensed pest control operation in Tampa, FL.
Clients ranging from cities of Tampa, St Petersburg, Dunedin, Winter Haven & private housing unit of Macdill AFB, Harbor Bay Housing and both VA facilities - James Haley and Bay Pines.
Also a full commercial and residential pest management company handling the needs of both Hillsborough County and Pinellas County.
Patriot diversified and partnership with Native American Pride Constructors LLC was set up as a Disabled Veteran Subsidiary to capture the many needs of the US Government for contract procurement outside and / or the pest control space – such as: environmental clean-up, tree trimming, hippa dust collection etc.
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Hemp:
6,700 lbs of flower biomass in the processing queue at Mason Jar processing facility in Plymouth, WI.
Procured and paid for 15,000 CBD clones and 9,500 feminite CBD seeds for 2020 planting at 2 different farming locations in local WI area.
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Hemp Oil Processing & Distillation:
Through Joint Ventures with Canna Capital Holdings invested $250,000 with Mason Jar Organics for hemp oil processing and distillation to further vertical integration into the WI hemp space.
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Miscellaneous Extracts:
Accountant / Auditor: Frank Haas of Frank Haas & Associates, Deerfield, IL.
Gross Profits as at Dec 31, 2019: $281,784 (hemp not included) – compared to $272,989 as at Dec 31, 2018.
Cash Beginning 2019: $74,632 compared to $72,354 in 2018.
Cash End 2019: $271,916 compared to $74,632 in 2018.
Assets as at Dec 31, 2019: $541,055 – compared to $222,600 as at Dec 31, 2018 – broken down as follows:
Dec 31, 2019 [compared to Dec 31, 2018]
Cash: $271,916 [$74,632]
Accounts receivable: 14,921 [$0]
Inventory: $156,106 [$5,049]
Deposit: $2,500 [$2,500]
Property & equipment: $93,421 [$90,628]
Other assets: $2,191 [$2,191]
Franchise fee: $0 [$47,600]
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The TA last updated the Share Structure at the Verified Company Profile on April 30, 2020:
Authorized: 50,000,000
Outstanding: 6,439,255
Restricted: 2,510,003
Unrestricted: 3,929,252
Held at DTC: 3,891,661
Note: It is only the Outstanding Unrestricted Shares count that is relevant to current trading.
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Share Structure Analysis:
A/S reduced significantly to 50,000,000 from 4,950,000,000 since r/s.
O/S reduced significantly from a peak of 4,003,221,101 on March 31, 2017.
All shares issued in 2020 – except 10,000 to Michael K Seitz – are Restricted.
