Replies to post #4702 on Bitech Technologies Corp (BTTC)

[trade4]

In my simplistic view, there are three (3) components, each feeding off the others, and contributing to the success of the others, which makes this business model particularly unique:

1. Collections
2. The affiliate network
3. Third party sales of the HALO technology

Clearly it has taken time to get all of the components into place, and the company's acquisition of the HALO technology somes years back, was a fortunate opportunity in retrospect, notwithstanding that the company incurred significant expense in its acquisition and development to its present state.

The collections appear solid, good return, and continued improvement. The HALO technology has matured into a solid product line, that has demonstrated its value to the company, in greater recoveries and a faster collection pace.

Dr. Donovan as CEO, has not successfully in the past, imho, executed adequately on #2 and #3 with regard to marketing, although I do believe the latest affiliate was largely as a result of his efforts. However, the recent hiring of the new chief operating officer (Jeffrey Cronk), who if he performs, I suspect will eventually end up as CEO, brings much needed marketing experience. He has substantial depth of knowledge in the medical field relevant to SPIN, the insurance claim process, and the attorney component, and his compensation package was arranged to act as an incentive for his success.

I will be watching in the coming months for indications that the marketing effort is taking hold, re #2 and #3. With the major development/patent expense of the HALO now in the past, and their success in reducing their overall business costs as reflected in the last earnings call, any incremental increase in #2 and #3, even small, will have a dramatic impact on the company's bottom line. I will also be watching for greater transparency re the company's business plan.

I like the fact that a significant portion of the outstanding shares, are held by insiders--officers and BOD members, and a handful of large shareholders outside the company who remain under the mandatory reporting requirement. I'm aware of significant accumulation over the past few years when the share price was pressured at its lows.

We'll see how this plays out. No reason to pound the table, but there is good reason to watch for further developments, especially given the COO's hiring. Per comments made on the call, it's likely we'll be hearing more news, soon.

[tchauncy]

gm- As mentioned on past Conference Calls, a "target" affiliate should be able to work his way up to an average of at least 25 Procedures (not cases which would likely be only 12-15) per month. But not necessarily until later in the first year. Not a big number when one considers Dr. D. alone has averaged between 50 and 75 procedures a month in past years.

Based on proforma, gross billings would likely average $6500 per case or just under half a million a quarter. Put a 48% hair cut on that to allow for expected discounts as SPIN has been doing for years and you get a reported net revenue of a bit over $250,000 per quarter or a million a year. With gross margins now up to 70%, thanks to the QVH, and Corporate G&A dropping due to better efficiency. (As Dr. D mentioned, a couple of years ago it would take around $900k in quarterly revenues to break even. That number is now under $600,000).

Overall, once an Affiliate is producing a consistent 25 cases per month, he should incrementally add around $.03 a share in annual net income to SPIN.

BTW, The company is still sticking with adding 10-12 Affiliates over the next 18 months.

This not that much different than what you estimated, but I did want to make clear not to expect that 25/mo to start in the first few months so expect revenue contributions to ramp up to that level until later in the Affiliates year.