My observations (or lack thereof) on the 10Q:
There was one sale in Malaysia to date, but the equipment was recovered when payment was not forthcoming. Two new projects are at the quotation stage.
The last 10Q read there were two projects in the negotiation phase. Is this progress? Or would a quotation come before negotiations ensue? I would have thought the latter...coincidence then? Or have these negotiations progressed to the next stage, which is the quotation stage?
On April 18, 2006 the company announced the signing of an Agreement in Principle to form a joint venture to be named First American Scientific Brazil Ltda. with South American Bio-Energy Corp Ltda of Uruguay and Bruno Industrial Ltda of Brazil for the manufacture, marketing, and operation of KDS equipment in Brazil, Uruguay and Argentina generally in, but not limited to the sugar industry. Under the proposed agreement, FASC will receive a royalty for each machine manufactured and sold in the territory and will share 50 % in any excess profits from the operation. The first machine has been ordered with delivery expected in February 2007.
Ordered by whom, and delivered from where? Ordered by our potential JV partners for demonstration purposes, or ordered by a customer? And will it be built by FASC Brazil Ltda, or will it come from B.C.? Last 10Q mentioned finalization of the JV agreement was expected in November, this time no mention of that, only delivery of a machine.
FASC has signed a Memorandum of Understanding with the City of Prince George, BC, Canada to assist them at their Waste Water Treament Plant in solving their environmental cleanup process of sewage sludge using the KDS Micronex System. This will be the first operation of its kind in the worls where strictly regulated Class B municipal sludge can be cleaned, bagged, and profitably sold to the public as a soil amendment. The initial runs are being monitored and evaluated by the University of BC, and if acceptable, the City will establish a permanent facility utilizing up to four KDS machines. To date all trial runs have been satisfactory and many adjustments have been made to accommodate the efficient processing of the City's sewage sludge. To date, all preliminary results have been positive. The expected date for completion of the final evaluation has been extended to February 2007.
Last 10Q the expected date for completion of the final evaluation was extended to November 2006. Fortunately for us, this time there isn't testing going on the early part of this month.
