-----Original Message-----
Sent: Wednesday, February 17, 2010 12:59 PM
To: info@amsrcorp.com
Subject: ARSC
Good Day.
Congratulations to the company and all involved for your successes thus far. You guys have come a long way and seem to be getting close to achieving your greatest goals of certification and commercial production of the HydraStax fuel cell.
I was just wondering if you had the time to answer all or some of these questions for me?
1. Is it still safe to assume that the company is on schedule with
regards to the 2008 financials being filed in the first part of March '10 and the 2009 financials being filed in April '10?
So far. / Auditors are in our office now; expect to file 2008 next week; 2009 by 4/15 which will be on time.
2. Is it still safe to assume that with Comentum Capital's funding
sources, ARSC will be able to begin production of the fuel cells within the first quarter of 2010?
Yes. We hope to close soon. / Comentum expects to be able to fund in March. Production can begin after that.
3. Does it seem the negotiations with the New York broker dealer to help fund the spinoff of Hydra will be successful? If so, what is the expected time frame?
Waiting for an appointment soon. We hope to successfully conclude negoiations then. Probably 90 days to complete.
4. Is ARSC current in its payments to use the patented catalyst
from Ohio University? Is ARSC still pursuing this method?
We are going to use a natural gas reformer/purifier because of the
significant improvement in the dynamics of gas pricing and availability in the last two years. / 70% of US homes have NG.
5. In May, July and Sept. of '09 the authorized shares was
increased by 1 billion each time bringing ARSC to 5 billion. However in Dec. '09 the authorized shares was increased by 5 billion bringing ARSC to 10 billion. What was the reasoning behind the larger raise in Dec. '09?
The increase was required as part of the settlement and agreement for new financing.
6. What would you say the majority of the shares being issued is
going towards? Is it mostly repaying previous loans/debt?
The share issuances are for financing (previous and current) and
payments to contractors and other creditors.
7. Is it safe to assume that the authorized share count will not
need to be raised for the first quarter of 2010 given the size of the latest increase? First half of 2010? Throughout 2010?
We don't intend to increase the authorization again. When we have
settled the debt obligations we will hopefully reduce the authorized.
8. Is it safe to assume the outstanding share count as of Feb. '10
is approx. 6,129,249,100? What is the restricted? What is the float or what percentage would you say is being held in tight hands?
Restricted is appx. 800,000,000. thightly held maybe 1 bil / Don't really know the % in hands other than O&D which is approximately 8%.
9. Has a reverse split ever been considered by management? Is one
expected in the foreseeable future or with the spinoff?
No
10. The company historically has been good at keeping shareholders
informed by releasing news approx. once per month. Is it safe to assume that as we get closer to the projected dates of production and having the financials completed, the market will begin seeing increased PR and awareness from the company to help bring the true value back to its price per share?
Yes
11. Is the company currently working with any investors or promoters to help bring awareness to the company in the near future?
No.
12. What type of valuation would you put on ARSC once the HydraStax has been fully certified and in production given the current $21 million purchase order backlog?
Can't answer that. Your guess is as good as mine.
13. Other than the '08 financials which are currently expected in
March '10, should the markets expect any significant updates from the company within the next month?
Yes.
14. Is there any other information you are able to share that may
not be related to any of the previous questions?
I will answer specific questions as long as I don't reveal insider secrets. SEC says I cant do anything else.
Thank you very much for your time and response. It is greatly
appreciated.
Have a wonderful day.
