They certainly swing a big stick and can easily carry the tech process back to China as well as US expansion. Here is a process for a big company to turn a profit internally from basically waste to recycle commodities ie steel, carbon etc that the company would otherwise have to buy on the open market. In this instance I would say chances favor no reverse split will happen. Hey, but what do I know. Strange things do happen in the pink zone. I expect an 8 K will be forthcoming.
Hitec Corp.
Balance Sheets
(Unaudited)
As of
As of
ASSETS
February 28, 2017
Nov. 30, 2016
.............
3. Property & Equipment
On March 28, 2016, the Company acquired equipment from a related party for $938,000
in exchange for an equipment loan for the same amount. The equipment is part of an
operating plant under construction pursuant to the Company’s business plan. The
equipment
has not yet been put to use, hence no depreciation was charged on the same.
4. Licensing Agreement
On March 28, 2016, the Company also obtained the exclusive right to certain patents for
use of a technology involving pyrolysis system. The Company obta
ined the licensing
agreement from a related party in exchange for the issuance of 20,625,000 shares of
common stock. The fair market value of the shares was $61,875. The cost of the license
to the related party was $10. Hence, the licensing agreement was r
ecorded at the
historical cost to the related party of $10 and the excess value of shares of $61,865 was
recorded as a deemed dividend to the related party.
Pursuant to the sub
-
license agreement, the Company obtained the sole and exclusive right
and lice
nse to purchase and operate processors for vapor distillation of tires, rubber and
other organic material which are made by or for licensor and covered by one or more of
the licensed patents until the expiration of the last to expire of the licensed patent
s or any
reissues thereof unless sooner terminated in accordance with the provisions of this
agreement. In the event that the Company shall fail to put into operation an installation
with at least five licensed products during the first eighteen (18) month
s of this
agreement, or if construction has not been substantially initiated at a site for the
installation of licensed products within one year following execution of this Agreement,
licensor shall have the right to terminate this agreement. Licensor shal
l also have the right
to terminate this Agreement if an additional installation of at least five licensed products
is not placed in operation in every two year period following the first installation. The
Company agrees to pay licensor a royalty of twenty
-
five thousand dollars ($25,000) for
each licensed products placed in operation and a running use fee equal to 2.5% of the net
collected revenues produced from all licensed products placed in operation of every
installation by the Company. As of
Febru
ary 28, 2017
, there has been no installation,
hence, no royalty has been paid to the licensor.
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