Copied from Notes to Financials
In the first three weeks of the 3rd Quarter of 2010 the Company has invoiced over $165,000 in product
and currently has over $200,000 of cash on hand. Other activities underway to further the expansion of
MOP Environmental Solutions include the signing, on July 19, 2010 of a Letter of Intent for the forming
of a Canadian MOP Manufacturing and Distribution facility to produce products and services for the Oil
Spill Cleanup Industry. In accordance with the terms of the signed Letter of Intent, MOP Environmental
Solutions would have a 60% controlling interest in the plant and would share 50% of the net profits. In
addition to increasing MOP production capacity in anticipation of the ability to commit to and service
large accounts, this Canadian operation will be able to take advantage of Canadian Business Development
Programs such as those available through EDC Export Development Canada.
The Company also anticipates continual orders moving forward, related to the cleanup efforts in the GulfOil Spill, their distributor in Ecuador, ongoing efforts in Baku Azerbaijan, and the addition of distributors
within the United States and Internationally.
The CEO Charles Diamond believes whole-heartedly in his company’s commitment to the BP oil-spill
cleanup effort in the Gulf of Mexico, and is setting the example by committing all funds including
forfeiting 100% of his salary, plus factoring to obtain advance funding on every order, to maximize the
company’s response to the Gulf cleanup.
In an effort to provide a rapid payment turnaround for availability of working capital without dilution of
shareholder equity the company has entered into an agreement with Bibby Financial for receivables
financing at a rate of 1.25%. The contractual minimum commitment is $300,000 in monthly receivables
with a current maximum of $750,000 a month. This allows MOP Environmental to offer highly
competitive terms such as net 60 days to strengthen proposals to large accounts.
