First American Scientific Corp. (fka FASC)

[TRCPA]

4tj.....

As of now, AGES will be responsible for manufacturing its own KDS models, as will FASC-Malaysia, and now the Japanese group JP Steel Plantech........so there won't be a need for any upfront manufacturing costs from FASC on each of those.

We'll have to wait and see what happens with regard to manufacturing for the WRAP and U of Tennesee/Oak Ridge projects....which would appear to be slightly longer term than the above, particularly in the case of U of Tenn/Oak Ridge.

As for any other KDS sales in the meantime, it looks like FASC has been taking down payments of various amounts in the past. Some have been enough to cover manufacturing costs, others not.

For now and the future, however, that would appear to be a good policy for FASC to follow (getting enough money down to cover mfg costs). An alternative would be the use of short-term debt financing, which would be tied into the sale, as collateral.

Given the current pps among other circumstances, the other alternative discussed of equity financing (more shares) of manufacturing costs would appear to be the least desirable option.

And not a necessity, given the other two possibilities above, IMO.