Replies to post #4123 on First American Scientific Corp. (fka FASC)

[TRCPA]

Jagman....if I may follow-up on your post.

You said......

1)"unfortunately the progress appears only to have kept even with the dilution."

If what you are saying is that the company's progress has been dependent, to date, on share issuance, you are correct to a degree. But you ignore all of the items below....that did not require dilution.....and that have contributed to the company AND the technology's progress.....

2)"You should also consider, the more irons in the fire, the more dilution required."

Not really. The grant monies received from the Canadian government, as well as the US DOE Phase I and II STTR awards AND this latest Biomass Initiative award do not require "more dilution" at all. In fact, the opposite effect occurs, as monies that may have otherwise been dilution-related for ongoing R&D now get shifted over to the various government agencies.

What other irons are in the fire? KDS sales. And where inventory is existent for such sales as there has been, those sales do not contribute to more dilution, but again provide the opposite effect when monies are received on these sales.

What does create more dilution......at least until revenues from the above sales can cover it.....would be monies required for JV development. But here again, we know the Princeton plant is in progress, but we haven't seen a direct correlation to more dilution due to it. There has been some speculation on that situation, as to where the funds may have/will be coming from.

And then there is the Malaysian JV, which clearly indicated that the Malaysian partner would provide the financing for the plant. Again, no dilution due to an "iron in the fire'.

3)"Grants alone do not make a successful business."

Absolutely correct. Revenues and earnings will do that. These grants CAN certainly provide leverage in obtaining the revenues and earnings, however.

4)"I think AGES found that out."

Actually, I don't know of any grants received by AGES. Hydro Quebec made an investment in the company, to the tune of 20% of the company's stock. This was not a grant.

[techisbest]

Jagman: Can't blame you for wanting to see the dilution end. AgES has obviously learned that it takes a certain level of operation to make the types of sales it is trying to make. Hoping they get a chance to build a machine that meets the requirements of its customers.

Grants alone do not make sales. But they do validate the potential of the technology. Referring to those that continue to believe that the potential can be realized as "blind believers" was without cause.