MVTG revenue from Alstom deal
Post# of 848
Posted On: 01/05/2014 7:03:49 PM
$MVTG is already drawing revenue from Alstom. Which from my estimates is now cash going into the bank the current quarter at about $75,000/month, from work done and billed the prior quarter.
The MVTG accounting/auditor is a bit wonky, and leaves much to be desired IMHO as to how he reports this stuff (even though MVTG paid for and invested BIG $$$$$s in the MVTG patents and research, and even though the market value of the patents is in the 9 figure area (easily well over $100 MM), the auditor expensed the entire costs and valued them at ZERO, which is way too one sided IMHO). They are not even listed as assets yet, even though the patents are now issued. That is just insane nonsense, but that is the screwy GAPP nonsense we got stuck with.....Ecomike rant cont...... So the money Alstom is paying MVTG, I consider to be revenue. But here are the details.
Here is how it works. Alstom, per the MVTG SEC filings, agreed to pay MVTG 150% of the cost of the MVTG lab personnel costs (hourly salary). MVTG has 6 PhDs working full time on the MVTG staff, that are some of the top, in the world, fuel cell electrochemical engineers in the field of formic acid fuel cells, and the electro-reduction of Carbon Dioxide, CO2, to formic acid.
Alstom wanted to clear the field of any remaining R&D ideas for improving the MVTG fuel cell and ERC reactor that converts CO2 to formic acid, before ramping up the funding and building of the MVTG ERC pilot plant package at the Lafarge cement plant in Canada. LaFarge is providing the pilot plant site and some funding as is Alstom (about $1,000,000 by my count), and the Canadian government $-? pending), which has already funded parts of the MVTG technology development recently and funded it before MVTG bought the technology that was government funded initially at UBC University under my friend Professor Colin Oloman.
[color=red]So back to the revenue question[/color],
[b][color=red]Alstom agreed to pay MVTG 150% of the hourly rate for the R&D staff, which in my book is a customer paying revenue to a research firm at a 50% gross profit margin, to earn a stake in the results of the lab work[/color][/b]. Also MVTG is getting the remaining R&D done with out dilution!!!
So, while I have no idea how the bean counter/auditor that MVTG is stuck with will list the revenue, it is POSITIVE cash flow with a 50% margin over cost that is cleaning up the remaining R&D to optimize the Pilot plant design and testing at the MVTG-LaFarge Pilot plant, before it is built. There are already 3 issued patents, with many more expected to be issued and filed for and announced this year, many may be announced in January.
We have reason to believe the MVTG-LaFarge Pilot plant construction will start in Feb, and be built by Noram, one of the top electrochemical reactor design and build firms in the world. Noram has already been hired, paid nearly $250,000 for completing and delivering the final pilot plant design, that was all reported in 2013 filings.
Once the full scale plant design (not the PP, the full sized plant) is completed using data from the pilot plant, Alstom and Noram will design and build it at the Lafarge plant for Lafarge at LaFarge's expense, and MVTG will earn license revenue from every ton of CO2 converted into formic acid. Formic acid prices in recent years have been as high as $1500/ton. Lafarge has many of these plants world wide!!!! They are one of the largest in the world, and Alstom has other major cement manufacturing customers worldwide already, and Alstom has many power plant customers in 100 countries world wide, power plants that Alstom designed and built, that want to make a revenue producing product out of their CO2 emissions as well, before carbon taxes kill their profits. Power plants their pollution control is a key segment of world wide Alstom sales.
The MVTG Pilot plant will be mobile, and will be used for multiple site demos, such as coal fired power plants, and steel mills.
The MVTG accounting/auditor is a bit wonky, and leaves much to be desired IMHO as to how he reports this stuff (even though MVTG paid for and invested BIG $$$$$s in the MVTG patents and research, and even though the market value of the patents is in the 9 figure area (easily well over $100 MM), the auditor expensed the entire costs and valued them at ZERO, which is way too one sided IMHO). They are not even listed as assets yet, even though the patents are now issued. That is just insane nonsense, but that is the screwy GAPP nonsense we got stuck with.....Ecomike rant cont...... So the money Alstom is paying MVTG, I consider to be revenue. But here are the details.
Here is how it works. Alstom, per the MVTG SEC filings, agreed to pay MVTG 150% of the cost of the MVTG lab personnel costs (hourly salary). MVTG has 6 PhDs working full time on the MVTG staff, that are some of the top, in the world, fuel cell electrochemical engineers in the field of formic acid fuel cells, and the electro-reduction of Carbon Dioxide, CO2, to formic acid.
Alstom wanted to clear the field of any remaining R&D ideas for improving the MVTG fuel cell and ERC reactor that converts CO2 to formic acid, before ramping up the funding and building of the MVTG ERC pilot plant package at the Lafarge cement plant in Canada. LaFarge is providing the pilot plant site and some funding as is Alstom (about $1,000,000 by my count), and the Canadian government $-? pending), which has already funded parts of the MVTG technology development recently and funded it before MVTG bought the technology that was government funded initially at UBC University under my friend Professor Colin Oloman.
[color=red]So back to the revenue question[/color],
[b][color=red]Alstom agreed to pay MVTG 150% of the hourly rate for the R&D staff, which in my book is a customer paying revenue to a research firm at a 50% gross profit margin, to earn a stake in the results of the lab work[/color][/b]. Also MVTG is getting the remaining R&D done with out dilution!!!
So, while I have no idea how the bean counter/auditor that MVTG is stuck with will list the revenue, it is POSITIVE cash flow with a 50% margin over cost that is cleaning up the remaining R&D to optimize the Pilot plant design and testing at the MVTG-LaFarge Pilot plant, before it is built. There are already 3 issued patents, with many more expected to be issued and filed for and announced this year, many may be announced in January.
We have reason to believe the MVTG-LaFarge Pilot plant construction will start in Feb, and be built by Noram, one of the top electrochemical reactor design and build firms in the world. Noram has already been hired, paid nearly $250,000 for completing and delivering the final pilot plant design, that was all reported in 2013 filings.
Once the full scale plant design (not the PP, the full sized plant) is completed using data from the pilot plant, Alstom and Noram will design and build it at the Lafarge plant for Lafarge at LaFarge's expense, and MVTG will earn license revenue from every ton of CO2 converted into formic acid. Formic acid prices in recent years have been as high as $1500/ton. Lafarge has many of these plants world wide!!!! They are one of the largest in the world, and Alstom has other major cement manufacturing customers worldwide already, and Alstom has many power plant customers in 100 countries world wide, power plants that Alstom designed and built, that want to make a revenue producing product out of their CO2 emissions as well, before carbon taxes kill their profits. Power plants their pollution control is a key segment of world wide Alstom sales.
The MVTG Pilot plant will be mobile, and will be used for multiple site demos, such as coal fired power plants, and steel mills.
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