I'm kind of reading it a bit differently than most.
1. EES licenses their technology to a soon to be named company for a flat fee. Exclusive distribution agreement means exactly that. If someone wants our technology they will only be able to get it from this undisclosed company. ESPH collects 52% of the licensing fees.
2. EES sells an EF60 to this soon to be named company for $2,757,000 each (X 16 initially). EES pays ESPH to build the unit. ESPH's cost is around $850,000 or so (TBA). ESPH collects 52% of the $2,750,000 minus cost to build.
3. Soon to be named company takes the machines and deploys them to industry. They now own the equipment, operate the equipment, they hire the personnel to run the equipment. The equipment is theirs as long as they pay our licensing fees and royalties. We may have a roll to play in tech support out in the field and spare parts but other than that.....we are out of it.
4. Royalty payments; The soon to be named company will pay EES a per barrel fee for every barrel of liquid the passes through the units. The fee per barrel will most likely be cents per barrel. ESPH will collect 52% of the royalty payment.
5. This is NOT a joint venture. The soon to be named company will have EXCLUSIVE DISTRIBUTION rights for our technology in the oil / gas industry domestically. We are out of it. We are basically the supplier of the technology and not the distributor.
Just my take on the speculation.
AI
