Thanks for your very reliable information. I agree with the mark-up that should net $1 million plus for each manufacturing fee on each machine. The manufacturing fee alone on two machines puts Ecosphere at break-even.
I do believe you're a little light on the licensing fee. The twelve or six machine set now yields $700,000 per quarter in revenue. Now the 2 machine sets will yield $700,000 per quarter in revenue or $2.8 million per year per 2 machine set. The gross margin is in the 60% range, or $420,000 per quarter per six or twelve machine set. The two machine set is a little more efficient, only 4 workers on site rather than 5 workers the six and twelve machine sets required. That is a reduction of 20% in costs. We ultimately believe the gross margin rises to 70%, or $490,000 per quarter per 2 machine set. Reducing the $490,000 by 50% to the JV partner, still leaves a residual of $245,000. Of the $245,000, 50% goes to EES, WHICH NETS ECOSPHERE $125,000 IN ROYALTY FEES PER QUARTER PER TWO MACHINE SET.
On a PPS basis (including an additional 12 million shares that were recently issued) the 8 machine sets yield 3 cents per share in profit.
