Replies to post #171539 on DD Support Board and Research Team

[nodummy]

PCTL - Didn't PCTL originally license their disinfectant product from another company then run into problems with that licensing agreement?

According to their filings:

https://www.otcmarkets.com/filing/html?id=14071046&guid=OkmHUHAsner-g3h

On July 30, 2019 the Company accepted a settlement proposal from Annihilare, Inc. (a sub-registrant of the Company’s US EPA Registration No. 92108-1) and its affiliated company, Prime ITS (a prior owner of Annihilyzer Inc, which transferred previously noted intangible IT assets to PCT LTD for 2,250,000 shares of the Company’s common stock in November of 2016). The settlement agreement included credit to the Company by Prime ITS in the gross amount of $23,209 on the Company’s payable to Prime ITS for a combination of a portion of Marty Paris’ salary, a resignation from Marty Paris effective July 31, 2019, and equal valued amount of PCT’s inventory, for net credit to PCT in the amount of $13,939, which was received by the Company on July 31, 2019. The transaction was completed on August 1, 2019.

On August 8, 2019 the Company received notice from PRIME ITS that certain technology services utilized by the Company shall cease to be provided, effective September 8, 2019.

On August 8, 2019 the Company received notice from Annihilare, Inc. that certain intellectual properties developed jointly between the Company and Annihilare are to be discontinued from use by the Company and our customers. We dispute the claims from Annihilare that the intellectual properties are exclusively Annihilare’s and are in discussions with Annihilare on this point.

When PCTL filed it's 10Q on 4/13/20, it included no updated information on that dispute.

Does anybody know how the licensing agreement was resolved?

How is PCTL's Annihilyzer™ Hypochlorous acid product different than Annihilare's Annihilyte® product?

The image on the PCTL website which you mentioned
https://www.para-con.com/products.php


Matches the image on the Ahhihilare website
https://www.annihilare.com/


The easy answer is that it isn't different.

So what is the current relationship between the two?

The PCTL filings are unclear about how their dispute was resolved. The last mention was that Annihilare Inc had told them to stop using the product.

Annihilare Inc doesn't seem to be active any more. Their website and social media sites have all been dormant for going on 2 years. Maybe they just went out of business and PCTL gained control over the technology by default?


According to Annihilare Inc, the Annihilyzer™ Hypochlorous acid product was already EPA registered for use against other viruses going back to at least 2018.

https://www.annihilare.com/regulatory/

So the whole EPA approval for COVID-19 use was just a formality.


Also, it should probably be noted that since March 03, 2020, the FDA has awarded EPA approval to a hundreds of disinfectant products for COVID-19 use:

https://www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2

43 pages of products in all:

https://www.scribd.com/document/458301318/List-N-Products-With-Emerging-Viral-Pathogens-and-Human-Coronavirus-Claims-for-Use-Against-SARS-CoV-2Date-Accessed-04252020

So it there anything special about PCTL's product compared to those other 380 - 400 products?


Though I don't doubt that PCTL has received more interest in its product due to shortages of disinfectants in the market place as a result of COVID-19, the last PCTL 10Q showed only $6,600 in cash and $4,800 in inventory.

Financially, PCTL wasn't exactly in a position to scale up production quickly.

Besides the low amount of inventory, financial statements show that PCTL has struggled with expenses. It cost PCTL $1,956,000 to sell $534,000 in products through the first 9 months of 2019 (so they weren't making money). All total the company lost over $10,000,000 through the first 9 months of 2019 alone - not exactly a feasible business let alone one that can manage the added expenses of an increase in business operations.

Is it even clear that PCTL has the staff, machinery, warehouse space, and other necessary resources to meet the demand?


I wouldn't just put 100% faith in what a penny stock says in press releases.