AbTech Holdings' (ABHD) CEO Glenn Rink on Q1 2014 Results - Earnings Call Transcript

|
 |  About: Abtech Holdings, Inc. (ABHD)
by: SA Transcripts

AbTech Holdings, Inc. (OTCQB:ABHD) Q1 2014 Earnings Conference Call May 14, 2014 4:30 PM ET

Executives

Yvonne Zappulla - IR, Grannus Financial Advisors

Glenn Rink - Founder, President and CEO

Lane Castleton - CFO, VP and Treasurer

Jonathan Thatcher - COO

Bjornulf White - EVP of Corporate Strategy and Business Development

Analysts

Brian O’Connell - Prosdocimi

James Manfredonia - Barclays

Jay Harris - Goldsmith & Harris

Jim McIlree - Chardan Capital

Peter Okin - Stifel Nicolaus

Sam Sunmonu - Chesapeake Advisory Group

Operator

Good afternoon and welcome to the AbTech Holdings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today’s presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Yvonne Zappulla. Please go ahead.

Yvonne Zappulla

Thank you. Good afternoon and thank all of you for joining us for AbTech’s First Quarter 2014 Financial Results Conference Call. I’m Yvonne Zappulla of Grannus Financial Advisors, AbTech’s Investor Relations Consultant. The first quarter financial report press release was issued today, just after the market closed. The press release is available on the Company’s Web site, on both the homepage and the Investor tab at www.abtechindustries.com. And a copy of this call will be available for review after -- about an hour, after its completion through the webcast link on AbTech’s homepage, as well as on the earnings press release.

One quick additional note, AbTech is continuing to build its social media presence and we encourage you to follow the Company on Twitter and Facebook.

So before we begin, I would like to state the following. During this call the management and representatives of AbTech Holdings Inc. may make comments that may be deemed to be forward-looking statements which are not purely historical and include many statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, cost and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors.

Such factors include risks associated with the Company’s business involving the Company’s products, their development and distribution, economic and competitive factors and the Company’s key strategic relationships and other risks detailed in the Company’s filings with the Securities and Exchange Commission. AbTech assumes no obligation to update any forward-looking information with respect to the announcements described herein.

With us today is Glenn Rink, Founder and CEO of AbTech Holdings, Inc.; Jonathan Thatcher, the Company’s Chief Operating Officer, Bjornulf White, Executive Vice President of Business Development; and Lane Castleton; AbTech’s Chief Financial Officer, who will review the first quarter 2014 financials. However, before doing so, Glenn would like to make a few opening comments about -- and after Lane’s financial review, Glenn will provide an overall business update. Following these prepared remarks Glenn will be joined by Lane, Jonathan, and Bjornulf for a Q&A period.

I’d now like to turn the call over to AbTech’s Founder and CEO, Glenn Rink.

Glenn Rink

Thank you, Yvonne, and importantly thank you each of you very much for your interest and support of AbTech. I would like to take a few moments today to highlight very recent developments in two areas before handing the call to Lane to review last quarter figures. Following Lane’s remarks I will you update you on the progress made in each of our business verticals which we believe is very exciting. The stormwater market is finally receiving significant capital more now than ever before from governments in the private sectors for new and rehabilitated stormwater management infrastructure. The billions of dollars in mandated spending on the federal consent decrees have started to flow to municipal coffers through stormwater utility fees and we observe those municipal agencies now transitioning to its execution mode.

Beyond this, municipalities throughout the country especially in the Northeast are pre-emptively addressing stormwater infrastructure issues even without consent decrees. We are focused in particular on pursuing opportunities from the Mid Atlantic up to New England. As one example, I would like to focus your attention on the state of Maryland which has mandated a stormwater fee that many of the counties have started to collect from property owners in the summer of 2013. In one just county alone, they’re expecting to spend more than $1.2 billion on stormwater treatment. This is truly unprecedented significantly for AbTech is the very-very recent development in Maryland’s eastern shore just last week we shifted initial order for AbTech’s Ultra-Urban filters. This order, albeit a small order totaling approximately $70,000 will be used in the project which will help prevent pollution into the Chesapeake Bay. AbTech places strategic importance on seeing its products used to protect the Chesapeake Bay as this is a federal government priority area. The Chesapeake watershed opportunity represents enormous 64,000 square mile territory across six states.

The addition of Chesapeake Bay watershed area to our pursuits in the tri-state area is evidence of an expansion of AbTech’s reach and increasing penetration into its addressable market. Our opportunities in the tri-state region anchored by our project in Nassau County already in execution continue to expand as we advance our pursuits there, expand personnel including on the ground presence and gain creditability from regional work in progress.

Turning to our oil and gas business vertical, we have significant news to report and once again I consider most exciting. At the end of March, we began processing water for the first time using our commercial system at a site in the Eagle Ford shale play in Texas. We deliberately chose the site where we were able to bring third-parties ranging from exploration and production companies also known as E&P companies or operators to oil field services companies to other synergistic water treatment companies. Moreover, to maximize benefit from the demonstration we chose a challenging site where we could process a variety of flow back and produce water from throughout the Eagle Ford shale play. The particular site is actually a disposal well where water arise daily from throughout the shale formation by truck destined for disposal. AbTech system intercepts the water prior to disposal in order to demonstrate a water treatment alternative.

At a disposal well typically water is collected from a number of different produced water or frac ship sites from different operators. This water is hugely inconsistent not only since it is coming from a variety of production wells but mostly because it’s a variety proprietary chemical formulations that you unique to each operator. The results of AbTech’s technology have been impressive. After five weeks and more than 800 hours of processing up to 10,000 barrels per day of contaminated produced water, our produced -- our pre-treatment mobile unit averaged 60% to 80% of hydrocarbon removal. AbTech’s pre-treatment system consistent of an oil recovery, solids removal and hydrocarbon polishing phase, all meant to sit in front of the typical produced water treatment system such as membrane or electro-coagulation system. So we’re truly agnostic actually to what that downstream system is.

With AbTech system as the frontend of a treatment train the entire water treatment process is made more efficient and economical. The total treatment cost is less than the current truck cost and disposal cost thus this represents a new pathway for the entire industry to pursue that it is not only more environmentally friendly but by reducing freshwater consumption and disposal well injection but in fact would represent a cost savings for the operators. After a month of operation actually more than a month, we began hosting site visits with potential customers, which include water service companies, the E&P operators, major oil companies from public to private to independent oil and gas companies. These customers are interested in observing the processing of large amounts of water with the deployable and commercially viable system, effective recovery of free oil and removal of hydrocarbons to increase the efficiency of a final stage water treatment device to enable the recycle and reuse of produced water. Again recycle and reuse of the produced water.

AbTech has demonstrated the capability and is already working on the deal terms for its very first commercial deployment of its system. Keep in mind that on average one AbTech mobile unit commercialized processing 10,000 barrels of produced water per day yields revenue to AbTech of approximately $1 million per year or more.

With that I would now like to turn the call over to Lane Castleton, Chief Financial Officer and Treasurer of AbTech Holdings for a review of the Company’s first quarter financials. Thank you, Lane would you join us?

Lane Castleton

Thank you Glenn and good afternoon everyone. Revenues in the first quarter for AbTech were insignificant as we focused our efforts on moving the Nassau County project ahead, lining up similar stormwater projects with other municipalities, field validating our mobile produced water pre-treatment unit and launching our sales efforts with the DieselPure products. We now see evidence that the first quarter will likely be our trough quarter particularly with more than 11 million of work yet to be completed and build on the project in Nassau County.

On mineral revenue AbTech reported a loss from operations of 1.3 million for the first quarter ended March 31, 2014 versus a loss from operations of 1.4 million during the same period of the prior year and the same amount for the fourth quarter of 2013. AbTech generated a negative gross margin of 28,000 during the first quarter reflecting the cost of excess capacity caused by operating in less than 1% of capacity during the quarter. At full operating capacity we expect to achieve gross margins in excess of 50% for Smart Sponge product sales. Furthermore, as we move forward we would expect to generate revenue from sources in addition to Smart Sponge product sales including design, installation and maintenance services as well as sales of equipment from other manufacturers which will likely generate a lower gross margin percentage than what we can achieve with Smart Sponge product sales alone. However, these additional sales offerings will likely allow us to generate higher revenues and higher gross margins overall.

To be specific relative to the Nassau contract, the lower gross margin percentages will be generated by the pass through of subcontracted portions of the contract where we may receive nominal mark-up. Better margins will be realized for fees charged for services related to engineering procurement and construction management. These fees are expected to be based generally on a multiple of our base labor rates or outsourced labor cost and we expect the gross margins on these services to vary from high single-digits to low double-digits.

At the high-end of the margin spectrum our sales of our proprietary products used in the project from which we could double or triple such margin levels depending on the quantity of AbTech’s technology ultimately incorporated into the project.

As a quick commentary on our operating expenses, the Company’s operating expenses for the three months ended March 31, 2014 totalled 1.3 million a decrease of approximately 96,000 or 7.3% over the same period of the prior year and a decrease of approximately $136,000 or 10.3% compared to the fourth quarter of last year. These decreases were primarily due to reduced legal fees compared to last year when we incurred significant costs associated with the S-1 registration statement filed with the SEC, our lower public relations and government affairs activity and a temporary small reduction in headcount which incidentally has already begun to reverse as the Company is hiring business development and engineering talent with specific expertise in target geographic areas.

These decreases in expenses in the first quarter of 2014 were offset by $164,000 increase in research and development expenses primarily attributable to costs associated with the oil and gas field validation work being conducted during the first quarter on the Company’s mobile water pre-treatment system. These field test costs are significant and are expected to continue into the second quarter of 2014. All-in-all as we map out our internal budget and assess our cost, we believe that the business model we’ve been developing can be highly profitable as we gain revenue traction and maintain strict cost controls.

Now a quick quote on interest expense before I move on to the balance sheet. Interest expense for the first quarter increased to $167,000 compared to just $12,000 in the same period of 2013 and $82,000 in the fourth quarter of 2013 as a result of the interest costs related to the $3.5 million 6.5% secured convertible notes issued by AbTech in December 2013 and the $875,000, 7.5% secured notes issued by AbTech in March of 2014.

Well, there is less than $200,000 of cash used to pay interest in the first quarter of 2014. The amount of interest accrued on outstanding debt increased by approximately $72,000 during the quarter. The remaining interest expense for the quarter includes non-cash items such as amortization of note discounts, deferred financing costs and accounting for beneficial conversion features.

Cash and cash equivalents at March 31, 2014 totaled approximately 650,000 from December 31, 2013 to March 31, 2014 total assets declined by approximately 542,000 due entirely to the drawdown of cash during the quarter for working capital and importantly for field deployment and validation of AbTech’s first oil and gas mobile unit.

At March 31, 2014 the face amount of the Company’s outstanding short-term debt totalled 1.625 million or approximately 1.5 million net of discounts. With the face amount of the Company’s long-term debt totalling 3.5 million or approximately 3.1 million net of discounts. The monthly cash burned during the quarter averaged approximately $475,000.

We expect to have additional capital needs in 2014 to fund operations until revenues increase to provide the working capital fulfill orders and contracts such as the Nassau County project and to build equipment such as mobile water pre-treatment unit similar to the one that has recently been deployed in field test for the oil and gas market.

And now as we are achieving some degree of tangible business traction we continue to be presented with several advantageous financing options. While our financing preference continues to be straight debt to fund large contracts as they are won there are other funding alternatives that we will consider as needed to fund operations, including the untapped $2 million equity line of credit and the $100,000 bank line of credit that are currently in place.

In March 2014, we raised $875,000 in a private offering of short-term 7.5% secured promissory notes which were non-convertible. With 20% warrant coverage, we are authorized to raise an aggregate of 2 million in this offering. Also the Company has approximately 18 million shares subject to outstanding options and warrants with an exercise prices ranging from approximately $0.40 per share to $0.90.

If all of these options and warrants were exercised an additional 11.4 million of capital could be available to the Company. As of March 31, 2014 AbTech had total federal tax loss carry forwards of approximately 40 million and state tax loss carry forwards in excess of 20 million. As of today and consistent with year-end 2013 AbTech has approximately 67.9 million shares of common stock outstanding. The fully diluted share account totals 100.6 million shares, an increase of 1.2 million shares during the quarter. To further discuss our business opportunities I would now like to turn the call back to Glenn Rink.

Yvonne Zappulla

Operator, we’ve gotten silent on our side?

Operator

Mr. Rink’s line is still connected and open to speak again may be he has his phone on mute.

Glenn Rink

No, I apologize we had a technical gauge. Thank you very much, Lane. I am sorry to have delayed my response. It has been approximately six weeks since our last conference call my objective today is to provide an update on the activities that have occurred over the past few weeks.

At this point in time we have a contracted backlog of over $11 million due to the Nassau Project and initial order in Maryland with additional significant short-term potential opportunities in the oil and gas sector as I’d mentioned earlier.

Despite a minimal revenue core, we have accomplished a great deal during the quarter and AbTech is in a very exciting position that I am pleased to discuss in this segment of the call. Our strategy since the start of 2013 has been to focus our resources both financial and personal, on very large opportunities in which we believed we had a relatively high profitability of achieving success within a relatively short period of time.

Now let’s drill down and take a look at what’s been accomplished. Stormwater Nassau County we have heard a lot about it is one of the country’s first designed build to operate stormwater infrastructure projects. First in the country we won the initial contract of not to exceed 12 million on October 2013 and fully believed these model will be replicated through the country starting in the Northeast, so what is taking so long and why have the revenues thus far being insignificant. Well the work on the Nassau project over the last five months has encompassed the early design phase for which we generated just 55,000 in revenue in the fourth quarter of 2013. Activity on the project slowed in the first quarter of 2014 with approximately $11,000 of revenue being recognized for the engineering work being conducted.

During the second quarter we expect to confirm final site collection and best management practice, and selection to enable subsequent phases, those are design, procurement and ultimately installation and construction. The first two phases, site selection and solution technology selection of the combine lump sum maximums of about $331,000 and the funds are set aside by the county itself. The subsequent phases is planned to be paid by both State and Federal reimbursements for infrastructure building.

Assuming reasonable timing with respect to the availability of State and Federal funding permitting and other variables outside of AbTech’s control, completion of the installation and construction and ultimately moving into operation and maintenance and site monitoring should occur over the next several months. We would anticipate that the groundbreaking will be an interesting press event, and one we would like to invite many to attend. In fact, all members of our advisory board including Robert F Kennedy Jr., Governor Rendell and governor Glendening will be invited to attend. In addition, a number of investors and analysts of requested notification, in an order to attend as well.

We suspect the timing will be in the third quarter which is consistent of what we talked about in our last earnings call. But we are at the mercy of others as to the exact timing. There is however a new sense of urgency gripping the administrators as the federal government has recently stated that money’s that have been allocated towards Sandy and not used in a relatively short time could, I say could, be relocated to other disasters throughout the country. Several local TV interviews of county executives just last week, noted their plan is to spend every penny for the benefit of New York residents. So, to sum up Nassau County, we continue to expect to complete the installation of the initial 10 stormwater outfall pipes, which would constitute our $12 million contract during 2014. Of course the sooner the outfall pipe discharge is being treated especially if it’s so be seasoned, the sooner everyone sees the benefits.

The contract also makes note of operation and maintenance, slide and water quality monitoring equating to approximately $575,000 over the course of years 2015 and ’16. Under the terms of the contract operation and maintenance is actually extendable and this project is viewed as the first stage in a larger effort to address stormwater management problems across the hundreds of stormwater outfall pipes in Nassau County. The county, as some of you may recall, had initially identified 60 outfall pipes to be addressed which for a little bit of clarity, is over $70 million in overall opportunity based on the calculation methodology used for the first 10 sites, of which the first tranche of the 10 pipes have been chosen as the priority sites under the current contracts.

We have hopes to hear upon completion of our first completed pipe installation in mid-year, that our opportunity has expanded to address a portion if not all of the remaining identified pipes. So we continue to be excited and optimistic and we look for you to continue to monitor what we’re doing in our activities. Other municipalities in the Northeast throughout the country as I’ve addressed on previous calls, there are major metropolitan areas under consent decrees, consent decree is primarily with the EPA, with the federal government, to improve their stormwater and combined sewer overflows infrastructure. Since we first started talking about these consent decrees, those municipalities have gone on to structure stormwater utilities in order to fund the work that was mandated and now we’re moving into execution mode.

Not surprisingly, many-many municipalities especially in the Northeast are now pre-emptively addressing stormwater infrastructure issues even without the consent decrees and we see abundant new tangible opportunities continue to develop. AbTech has broadened its offering to address the needs of its customers and as most of you know capture a larger part of the market opportunity. In the Northeast shore lines, our opportunities indeed tend to focus still on stormwater outfall pipe upgrades that incorporates a Smart Sponge Plus technology. However, in the major consent decree cities and in municipalities pursuing broad citywide stormwater management programs, we are also seeing opportunities to provide stormwater engineering services through our subsidiary firm AEWS.

Opportunities for new green infrastructure design such as enhanced bio-retention cells using a heavy metal removal technology and an evolution to move to more enhanced treatment systems that include additional capabilities such as sediment removal, traction debris capture and even flood prevention systems. Recently we stated that for the first time, to our knowledge, there is over $100 million in stormwater treatment projects pending that have already gone through the RFP and award stage and are in the process of moving to contract phase.

Two months ago we received letters of intent from two municipalities in the Northeast and are in discussions with dozens of others now. We anticipate that responding to several RFPs in the Northeast over the coming months that will transition to awards and execution thereafter. It should be noted that each opportunity typically would be several million dollars. It’s important also to know, as we indicated there are already RFPs in other states that have gone to award stage and are now in the contract stage. As we already reviewed what we believe is a solid opportunity in oil and gas, as we provided earlier in this presentation. Happy to answer further questions at the end of this regarding oil and gas but let’s move along to an update on other initiatives in industrial.

Our most notable opportunity in this business segment is our signed agreement with DieselPure which we signed in September of 2013. As governments are mandating increased amounts of biodiesel added to diesel fuel, the risk of mission critical engine failure increases dramatically. In the case of backup generators, the failure rate of using today DieselPure fuel is the 100%. It’s not treated or changed out after just six months left in the tank. DieselPure is currently and excitingly and I am very excited about this, this is the only certified filtration process that can effectively remove free water and emulsified water from ultra-low sulphur diesel also known as ULSD and biodiesel blends. As all diesel fuels are moving towards biodiesel blends, the problem of water build up which causes the critical issue and the high operating failure rate. Just to confirm to you and restate our relationship with DieselPure is twofold, AbTech Smart Sponge’s technology is embedded into all DieselPure filtration systems to safely remove any hydrocarbons from the extracted emulsified water for a simple and easy disposal.

The second is we have agreed to act as a distributor of the DieselPure filtration system for the Western half of the United States. During the first quarter in addition to a commission-based sales person, we also hired a full-time sales manager for DieselPure. He joined us from the renewable energy industry. Direct sales activities and proposals to hospitals and first responder organizations are ongoing. We actually have several proposals pending with customers real-time. Internationally, we see both stormwater and industrial opportunities. 2015 is fast approaching as we all know this will be the first year that the European Union Water Framework Director required an all inland and coastal waters within defined areas to achieve what’s called good status water quality standards. This is truly going to impact every aspect of water usage, domestic, industrial, agriculture, leisure, environmental and conservation.

We are seeing an escalation of business opportunities internationally and consequently during the last quarter of 2013 we formed a new subsidiary AbTech Industries UK Limited through which we intend to handle certain industrial opportunities related to various projects the Company is pursuing in the United Kingdom and potentially other European countries.

Let’s drill down again on another exciting opportunity that we have mentioned in the past and are still pursuing a technology to treat landfill leachate. In the past we referred to this as an evaporative technology but a better description is really a technology for separation of liquids and solids, it’s also easy to say. We have been discussing for just about a year now the enormous opportunity to address landfill leachate with a liquid-solid separation technology using Smart Sponge where indicated. That opportunity incidentally exists both here and abroad and we have opportunities in both markets.

In the United Kingdom dealing with the landfill leachate represents a significant cost of landfill operators. Many landfills pipe the leachate to holding tanks and then truck the leachate for offside disposal. Sometimes travelling great distances add significant expense. These costs continue to rise each year even if operations at landfills are discontinued the responsibility continues to maintain regulated standards rest with the operative the -- for an additional 60 years, amazing 60 years. Our proposed separation process could immediately save landfill operators up to 40% of their cost of their current disposal process. In the EU, there are approximately 2,000 target landfills.

A large FTSE 250 company has received the approval of its Board to perceived and commit the funds to significantly offset installation costs for our initial unit and work with us to collect all the required verification data. We expect to dispatch the first full scale of the unit by the third quarter of 2014. During this verification, installation and data collection process, we will be paid on a per cubic meter of metric tonne basis per leachate processed, and so less to say but let me just say it again, we will be paid on a per cubic meter of metric tonne basis per leachate processed. In the UK, we will then file for best available technology also known as BAT certification from the environment agency and apply for local counsel permitting.

We anticipate three to six months of data collection in the UK for the placement of subsequent units only local counsel permitting would be required using the existing data. Patents have already been filed or had been filed on news separation technology specifications are being provided to our partner for filing a permit variation prior installation. We’ve also identified an in-country manufacturing partner to produce the initial units, because currently right now they are made in the United States or would be made in the United States.

The economics are worth waiting for though and the UK evaporator market units are expected to be provided under commercial services agreement for 10 years at a charge based on a fee per cubic meter leachate processed. To give a general idea this would equate to approximately $200,000 per unit per year on average two evaporators would be required at each landfill.

We also anticipate a segment of the market will simply want to purchase the equipment. Anticipated purchase price would be between $200,000 and $325,000 per unit depending on its configuration. In the United States units are anticipated to be primarily equipment sales at approximately $600,000 per unit. Currently, our total project pipeline interest for the units is 20, so currently our total project pipeline, interest is for 20 units.

Crossing into research and development now, AbTech has always had a fairly active and ongoing R&D effort, not only for in design and engineering systems like our recent mobile treatment unit, pre-treatment unit I should say, but also in advancing the Smart Sponge. We have often noted that Smart Sponge can be viewed as a platform, should be viewed as a platform, which we increase -- we can increase its capabilities to filter out additional contaminates, part of the reason why it’s called Smart Sponge.

Smart Sponge’s sponge for example is quoted and processed such that an antimicrobial agent is permanently bound to the Sponge. We have continued to progress our program into heavy metals, having now completed successful bench scale laboratory tests. These trials, laboratory trials continue to provide impressive test results and we are now moving forward to secure the intellectual property in our key markets. Fully develop the business phase for each target containment and industry and move quickly to field trials.

Moving into regulatory, AbTech recently -- AbTech received approval from the U.S. environmental protection agency of a time limited registration for its antimicrobial Smart Sponge material under the Federal Insecticide, Fungicide and Rodenticide Act, also known as FIFRA, or FIFRA, which is conditioned upon AbTech Industries submitting an additional data set regarding the active ingredient in Smart Sponge Plus to the EPA by July of 2011. The Company had asked for several extensions from the EPA which they granted to allow time to determine the process through actually accumulating the additional data.

The current time limit registration currently expires on May 31, 2014. While the third-party laboratory which by the way is an EPA approved lab contracted to conduct these additional required studies has made significant progress on a very complex and novel analytical method, we require to conduct the biological portion of the studies.

In January of 2014 it became evident that the request of laboratory test will provide data of no significant value. AbTech therefore requested a waiver from the EPA of the data requirement and requested that the time limited condition of the registration be lifted and the registration be made affect without time limitation.

EPA is considering our request and has requested additional data which is not unusual, from the laboratory that are performing the work for us. In light of this in May of 2014, we filed a request for an additional extension of the time limited registration. In the meantime we continue to work with the EPA to meet the conditions to achieve a permanent registration.

Before turning the call back to the operator I would like to say that we at AbTech are very thankful for everyone’s patients, I am -- we realize patience is the good work for this and support. And look forward to what we expect to be an amazing 2014 and an even better 2015.

With that I would like to open the conference call up to questions. And operator would you assist me with that please.

Question-and-Answer Session

Operator

Certainly. (Operator Instructions) And our first question will come from Dorian Prosdocimi from Prosdocimi.

Dorian Prosdocimi - Prosdocimi

Hey, Glenn it is Dorian here.

Glenn Rink

Hello, Dorian how are you?

Dorian Prosdocimi - Prosdocimi

I am very well. Thank you. And apologies to the operator, I have a complicated name. And so a couple of questions if I may, the first is with regards to Maryland order you’ve secured what was the selling cycle like before that, it appears to be much shorter than what you have experienced with municipalities in the past? And on the same lines can you give us a sense on the DieselPure filtration system and how is that being received in the marketplace I mean what is the feedback that you’re getting on that?

Glenn Rink

Thank you for the questions Dorian. And I know it’s late there in the UK so we appreciate you calling in. Well, I am going to ask Bjornulf White to please begin the answering regarding Maryland if I could.

Bjornulf White

Sure, well regarding the Maryland order that we referenced the sales cycle was a few weeks of maybe 30 to 40 days these smaller orders, once the money is available it has moved or been allocated it is a very quick sales cycle. And this particular one was handled by a third-party that did the installation. But I think what I’d like to point out to is from a broader observation point is that historically AbTech was in a situation where the sales cycles when dealing with municipal agencies was very long and indeed that was because stormwater was an unfunded mandate. And so the funds were often coming from grants that were from the state or the federal government and the process was very long and protracted. Now what we’ve seen is the collection of stormwater fees by agencies as we’ve referenced actual budgets on an annual basis that are set and recurring and funds available for spending on stormwater and this has reduced the sales cycle dramatically.

Glenn Rink

Thank you Bjornulf and then Jonathan Thatcher would you please assist us in answering the DieselPure question please.

Jonathan Thatcher

Sure, we on boarded or brought on a sales manager who joined us late March as Glenn mentioned in his remarks we initially identified four segments to target we’ve actively marketed to two of those four segments at this point with one of those segments which is the diesel generator service provider and manufacturers being one of the two segments that we targeted the other one was a first responder group. The first responder group response has been and this is hospitals in particular has been very positive in particular facilities where they are replacing fuel on a regular basis which does happen with a segment of that particular market.

So that response has been very positive, we also have two other first responder segments on our list fire and police are the other two which we have not actively marketed to yet but do anticipate doing so this year. The fourth segment is the emergency generator segment which we have had some and this is the manufacturers and the service providers. We have had some conversation with them and don’t currently have them as a first tier market for us because the technology in some cases is disruptive to their current service agreement type business model and/or is perceived in that way.

Importantly through the conversations with hospitals primarily we have also identified two additional sources of potential value for the end customer and we’re right working with a consulting firm to understand the economics better and if those workout obviously we’ll present them to you but we also will be very excited to add that to the value proposition for an end customer, and they have to do with meeting higher or the ability to meet without additional significant infrastructure investment, higher emission standards and or being able to see value and power management approaches that’s until we have more analysis on that that’s probably where we’ll stop with that.

Glenn Rink

Thank you very much I appreciate that Jonathon. Dorian was that helpful for you did you have any follow-up questions?

Dorian Prosdocimi - Prosdocimi

Yes. That’s great. Yes, I did have one quick question. With regards to the financials and I know you have got a lot of moving parts but having listened to Lane earlier on and -- I am sort of wondering what level of revenues would you guys have to achieve approximately to achieve breakeven? And if I may just add to that, I missed a part of the call before as I apologize if anyone has had this already. With regards to the Nassau County contracts the $11 million remaining out of the trial. Am I right in saying that most of that will be booked in the remainder of this year?

Glenn Rink

Yes I am going to let -- thank you for both of those questions Dorian. Lane would you begin by answering the question regarding, Lane Castleton our Chief Financial Officer would answer the first question regarding the breakeven and then I’ll finish off with the Nassau question with Bjornulf.

Lane Castleton

Yes Dorian I think in the past we’ve talked about breakeven revenue amount of about $1 million per month and that was based on our ability to achieve 50% gross margin with product sales. Now as we have expanded our revenue model to include services and projects with lower gross margins obviously if our margin averaged say 25% that would mean that the monthly revenue amount would have to double to about 2 million per month. But we have about 1.4 million of operating cost we think are going to be pretty consistent quarter-to-quarter that we need to cover and just depending on what kind of revenues we’re able to generate and what the ultimate margins will be on those revenues we’re looking at a monthly breakeven of about $1 million to $2 million of revenue per month.

Glenn Rink

Thanks, Lane, and obviously that depending on the growth and the expansion of the Company and projects that are happening, you’ll start to see the higher end of what Lane was describing. Dorian the last quarter you had asked was regarding the Nassau County project and the finishing of that or completion of the majority of that in 2014. The part you may have missed in the beginning of the call, there is a portion of that that is for maintenance and operation for which we will go into ’15 and ’16, but we do expect the large majority to be completed as been stated on the last couple of calls. In 2014, the contract as represented as you should note that it’s estimated there from the day we actually put the first shovels in the ground 10 to 12 weeks could do about 75% of that project revenue in about 10 to 12 weeks the 10 pipes that are required to be installed could be completed and that would when the start shovel goes in the ground. So we fully anticipate that other than operation maintenance it will be completed in 2014 as has been stated. If there is no -- if we have covered that properly Dorian and we’ll move onto the next operator. Thank you, Dorian.

Dorian Prosdocimi - Prosdocimi

Right, thanks Glenn.

Operator

Thank you. And the next question comes from James Manfredonia of Barclays.

James Manfredonia - Barclays

Hi Glenn how are you?

Glenn Rink

Very well thank you James thank you for calling in I appreciate it.

James Manfredonia - Barclays

My pleasure, you spoke a little bit before about some cities throughout the country but California has been in the news a bit lately, could you just touch upon I guess the politics in the state and say are any of the initiatives being driven by the state or they’re being driven by cities municipalities, is there difference between northern and southern and anything to do with the water issues in the state et cetera, et cetera?

Glenn Rink

Sure, I am going to let and thank you, James, Bjornulf would you please respond to James Manfredonia from Barclays.

Bjornulf White

Sure, I would be happy to. Hi, James, the reason that California has been in the news a lot is primarily because of a Supreme Court case which is the first time stormwater has reached the Supreme Court. And with the court’s ruling, it wasn’t that one direction versus the other would have much of a material impact on AbTech, but what it did do is it provided clarity as to responsibilities of counties versus municipalities. And now that that clarity has been given, we and the market know where money needs to be collected where money needs to be spent. So we have of course been active in California and have relationships with at least half of the municipalities in southern California and the LA area and now that this ruling gives clarity to the market, we can begin to pursue projects with these municipalities and everyone will know what it is that they’re supposed to be doing.

Glenn Rink

James was that helpful for you?

James Manfredonia - Barclays

Great. Thank you very much Bjornulf.

Glenn Rink

Yes, I would like to just put a little bit further clarification also in general terms, the municipal market which the company has spent a great deal of time up until the last year or so 9 or 10 months really has been focused largely on the municipal market which has enormous potential but is a very slow moving and clearly unpredictable from a timeline standpoint and so politics like you described James get in the way sometimes and the projects can be slowed because of that but the belief is that once the engine starts to move in like a locomotive it starts to move it picks up energy and will be then therefore difficult once the trend is created and moved forward, it should be hard to stop and that’s what we’re expecting to -- and what we hope to see in this -- particularly in this northeast as it’s moving along and the money has already funnelling down or being collected. So California is both exciting and a lot of opportunity there particularly in southern California is exciting, but the lower hanging food for us really is in the northeast right now because of the money already being there or the process being there. So with that operator, if you could move to the next question, I would appreciate it.

Operator

Certainly and up next we have Jay Harris of Goldsmith & Harris.

Jay Harris - Goldsmith & Harris

Glenn we’re getting closer to what should be eventually say very significant revenues for the Company. How much cash do you think you’ll need to get to breakeven?

Glenn Rink

Well, that’s a great question Jay. Thank you for joining us. Lane would you like to begin that and then I’ll finish.

Lane Castleton

Sure. Obviously it’s a very difficult question to answer for a Company that’s just really striving to gain traction in a variety of new markets and so there is so much that just depends on how quickly we’re able to gain traction, which markets we gain traction and just the timing of some of those major events. But we clearly recognize that it’s going to take additional capital this year to execute on our business plan and just depending on how those revenues come in. We expect that we could need between $3 million and $5 million of additional capital this year.

Jay Harris - Goldsmith & Harris

Okay.

Glenn Rink

So, Jay, just one other if I may, if you recall the last round of the convertible notes that we did, it allowed us to bring up the $5 million worth of debt in senior to that last 3.5 million because we have been pretty consistent on a 3 million to 5 million in operating cost and the need for that and so that’s what why we are working on debt wise.

Jay Harris - Goldsmith & Harris

Okay, so that’s a good answer. I noticed that over the last few months, several insiders have been buying stock and I wonder if you could provide a little color as to what’s going on there?

Glenn Rink

Well, I can provide, I will try to provide you as much as possible. I can say to you that window really for the first time I believe in, since we were a public company, opened up in November of last year and it only was opened for a few days because we were, some developments occurred that we knew that we were going to be doing a financing and that was for $3.5 million I believe. And so, it was only opened for a few days. More recently because of some information that the Board holds regarding some technology advancements in some other areas that we are working on, so it has been a very limited opportunity and each Board member have to assess its ability to determine if it has confidential information or not.

I can say to you that one Board member did make some purchases of stock but Steve Kohlhagen who stepped off the Board very recently and onto the advisory Board, that was one of the recent announcements. He had been in our Board as most of you know for about a year, transitioning to the advisory Board. He’s no longer required to file a Form 4 but he did become a purchaser of stock as he stepped off the Board for several days. I am not sure what position he required in that but I can tell you that it’s been a limited opportunity and as a Company that’s got so many things developing sometimes at a more rapid pace and sometimes as you know at slower pace. There is often limited times for insiders to buy but we are hoping those opportunities will open up again. I hope that was helpful for you.

Jay Harris - Goldsmith & Harris

It was. Is the Company going to be in a blackout period between now and well once per three days that normally have to pass when a company reports before people buy, is there a blackout period that’s going to extend that?

Glenn Rink

Jay and then Lane you can clarify if you like after I am done. Jay, we have quite a few things that are in process right now that the Board is aware of. If it was just related to financials and numbers then that would not be an issue but because of developments in other areas that we are working on that we are engaged on, if they are all made public and then no longer in possession of material information that the public does not know about then they would be prohibited. But if there is no information and the public is totally have been made aware of all the details that we have ongoing then it would be a different situation. Lane, would you like to bring any clarification to that or clarity to that?

Lane Castleton

No, I think that’s good. The blackout periods don’t necessarily just follow dates obviously, it follows when our insiders are in possession of material non-public information and any time that occurs there is going to be a blackout period and right now that black period will extend until we feel that there is no material non-public information that our directors and officers are in possession of. But I couldn’t say specifically what those dates might be.

Jay Harris - Goldsmith & Harris

I don’t have the press release in front of me but I believe in the press release you referred to a line of credit that you were not using that was I think significantly larger than this 3 million to 5 million that Lane indicated was possibly all you needed between now and getting to the next stage. What would you need to do with anything to start to draw that down?

Glenn Rink

You are talking about the equity line that we have I believe, Jay, we have. So, we -- there’s two items that you see we aware of that we received approval to bring in up to $2 million at a 7.5% interest rate with 20% warrant coverage up to $2 million and we have drawn down 875,000 of that. As far as the $2 million equity line that we have, we have not done anything to draw down any of that at this point. And there is a process in which we would move forward on that which a certain amount of notification I think five days perhaps and that process could be initiated. But it’s something that I don’t, Lane you want to clarify if I have stated that incorrectly?

Lane Castleton

No, that’s correct. We entered into the equity line of credit back in 2013 and have never drawn on it yet actually in 2012 and have not yet drawn on it. We can do it at any time we want but there is a process to certain amount so we couldn’t draw it all at once we would have to do it in tranches.

Jay Harris - Goldsmith & Harris

And Lane does the day go out that’s available to us to 2016?

Lane Castleton

Yes.

Glenn Rink

So it’s helpful, Jay?

Jay Harris - Goldsmith & Harris

Very much so thank you.

Glenn Rink

Thank you, sir. Next question operator is there?

Operator

Yes, the next question is from Rick Palmer of Stifel Nicolaus.

Rick Palmer - Stifel Nicolaus

Hi, Glenn, I appreciate you taking my call, a couple of quick questions for you. As you look at your cap spending for 2014 and with all the good news so far in oil and gas side of the business, approximately what does the unit cost us to make and then how long does it take for us to build a unit and then what’s your best guess estimate and what you’re seeing on how many units that we would probably build this year in 2014?

Glenn Rink

Thank you, Rick. I appreciate the question. Thank you for joining us for the call. I will ask Bjornulf White to initially respond to that question. Thank you.

Bjornulf White

Sure, well, with the current unit that’s in Texas and perhaps for the next unit or two as well. We’re pursuing a rental strategy because a lot of this equipment it can be rented for a long periods of time and that’s just to reduce the upfront capital expenditure on our part. So all of the components and equipment in Texas in the first system are rented, so we would continue to optimize how much we can rent and that would certainly include things like the trailer bed itself. We are able to construct units for between $250,000 and $400,000 and the timeline to construct them ourselves would be between two and three months. In response to your last question how many units this year we’re not prepared to answer a specific number. We would be responding on based on a contract basis especially since these things can be procured and put together so quickly.

Glenn Rink

This is a further detail a 10,000 barrel well site would utilize a piece of equipment that would cost approximately $250,000 and that’s just to give you an idea and it as was described earlier in the presentation has the ability to generate approximately or in excess of $1 million annually based on 10,000 barrels per day. So that’s just an example of the economics, Rick, I hope that’s helpful for you.

Rick Palmer - Stifel Nicolaus

That is. Thank you. And can I ask you one another quick question?

Glenn Rink

Sure.

Rick Palmer - Stifel Nicolaus

Could you give us the latest update with waste management? How long does our contract last with them and just basically the state of the union with how our relationship is going with waste management?

Glenn Rink

Well I thank you again for that question. I will take that one myself. The contract with waste management goes till 2016 and I believe it is April 2016. And as Bjornulf indicated earlier in the conversation, we have great relationships with the large majority of the southern cities in California and a lot of that is because of waste management. They’ve done as a company a tremendous amount of opening doors and introducing us to a lot of cities and towns and even counties and I can say to you that obviously the relationship does not economically demonstrated value to us at this point.

We have high hopes that it will, we believe Rick that having a site where we can bring people where we actually show the first completed site or the first site that’s turnkey like the Nassau Country project extends huge credibility but also leverage for other cities to view and we’re hopeful that will be a turning point where the relationship with waste management will have greater value and revenue to the Company at that point, but I will be candid with you that because of the publicity around waste management it’s opened doors to even their competitors who have then reached out to us looking to pursue opportunities and to see what maybe happening in their area of the country.

We obviously taking notice of all that but at the same point in time waste management has been is a green company has a green model and good intentions and so we’re doing everything possible to continue that relationship in a positive way and hopeful that it will turn once we have the first couple of pipes installed in Nassau Country that they can see, touch and feel. So we still have high hopes but we’re guarded and being very carefully but again many of the cities that we know in southern California where two introductions made by waste management and they have made a lot of them and opened a lot of doors. So I would rather not go into much more detail than that right now until we have greater clarity and wouldn’t want to offend anybody.

Rick Palmer - Stifel Nicolaus

Perfect. Thank you for that Glenn.

Glenn Rink

Thank you.

Operator

And our next question comes from Jim McIlree of Chardan Capital

Jim McIlree - Chardan Capital

Yes thank you good evening. The oil and gas commercial order that you referenced early in the call is that for a pretreatment system or is that for a recycling system as well?

Glenn Rink

Hi Jim how are you thank you for the question thank you joining us also for the call, Bjornulf White I am going to ask to respond to that as well.

Bjornulf White

Yes well the AbTech scope would be the pre-treatment which includes oil recoveries solids removal and hydrocarbon removal. But that would be going into a fuller treatment train that is recycling water for reuse.

Jim McIlree - Chardan Capital

So that would therefore utilize the Smart Sponge’s complete treatment or not?

Bjornulf White

Yes for hydrocarbon removal, correct.

Jim McIlree - Chardan Capital

Just wanted to clarify.

Glenn Rink

Jim was that helpful for you in answering your question or did you want to…

Jim McIlree - Chardan Capital

Yes, no that’s helpful. And then you spoke about the systems generating upwards of $1 million in revenue per year. And I am just trying to understand if that is for the pre-treatment part or if that’s for the pre-treatment as well as hydrocarbon removal?

Bjornulf White

It’s actually it’s going to be $1 million plus, there are locations where we would see higher than that. And that is the revenue for the complete oil recovery and hydrocarbon removal with Smart Sponge treatment and it does not assume any share in revenues of the recovered oil, so it’s a base case scenario for us.

Jim McIlree - Chardan Capital

Okay, great. Thank you. And then one more if I might. So you have also referred to in the stormwater market a number of municipalities or counties already going through the RFP and award process. And my question is how do you get involved in that? How do you get a piece of that contract that’s already been awarded or how do you get a piece of a contract that is in RFP stage, if you’re not bidding on that RFP. Doesn’t the prime contractor need to have a system build that kind of have you designed it from the beginning?

Bjornulf White

This is Bjornulf White I’ll take that one as well. The answer is well a couple of things first of all AbTech positioned itself to offer these design build operator public private partnership programs really before anyone else in the market did we created an engineering subsidiary specifically to support these types of programs. So we have a leg up on the competitions and we’ve had folks say that we’re two years ahead of any one and we’ve maintained that position. So a lot of times when a municipality is putting an RFP out they will put it out generally for stormwater management in their territory or they might carve out a geographic area and say they’re looking for a party or a team of parties to handle stormwater management in a turnkey fashion and you’ll see a large prime with experience in program management and civil infrastructure go after that figuring that they’ll fill in the pieces later and that filling in the pieces later is the opportunity for us from both an engineering perspective, a technology perspective. So we can then go to the prime and bid as a sub-contractor. And in some cases we already are in dialog at the time that the prime is putting in their bid and it’s a strategic decision on AbTech’s part to refrain from actually bidding as a prime, knowing that other players are better positioned but we’re envisioned by perhaps the most likely winner to be a sub-contractor.

Jim McIlree - Chardan Capital

And so in those cases where you are in dialog with the prime or is that a contractual relationship or is that something where the prime is in dialog with you and number of other potential vendors and at some point down the road the prime will choose which vendor it wants to use?

Bjornulf White

We actually see both, there are cases where we will have a teaming agreement and so that is -- then it is contractual. There are also other cases where we’re in dialog with more than one prime and we can only assume that they are in dialog with more than one sub.

Glenn Rink

Is that helpful for you Jim?

Jim McIlree - Chardan Capital

That’s very helpful. Great, thank you very much.

Glenn Rink

And for those on the call, so Jim from Chardan was kind enough to come and visit one of our mobile unit and we thank you very much for coming out to see it. Operator is there another caller before we close this out.

Operator

Yes our next question is from Peter Okin of Stifel Nicolaus.

Peter Okin - Stifel Nicolaus

Hi guys. A lot of my points were talked about but I like to know because I have been a shareholder for over a couple of years now and when we could start to see consistent orders, is that the only thing that is going to get your stock price moving above $0.50 which is unable to do. And to reiterate the other person’s call for some sort of consistent insider direct buying that I am sure there are opportunities for you guys to show some faith in this Company where you expect shareholders and the public too, I just don’t understand why there is not more of that? And as I have listened to call after call there is always opportunities there is always discussions but we don’t hear announcements about new contracts and that’s the thing that’s going to get this Company going and just how far are we from seeing multiple contracts coming for fruition?

Glenn Rink

Peter, thank you very much for your questions and thank you for your support, longer than I am sure you would have like to other than the delays haven’t been nothing that we have enjoyed, but regardless to that I couldn’t agree with you more, it’s going to be multiple contracts. One of the things that the Company has that I was touching on earlier, is a large majority of our business was based on municipal market segment. And what we’ve done as a Company is diversified the technology and applied it to commercial sectors.

Commercial sectors like oil and gas in the industrial markets what we’ve talked about, which have much more consistent timelines, much more predictable timelines, so that one is not dependent upon the municipal market segment solely or public sector market which has low -- slow sales cycle times and can be very unpredictable. And I have seen it’s taken a lot longer than we would like. So we believe the diversification is going to help with consistency and we believe it’s fast approaching right now. And we’re particularly pleased about the oil and gas sector and where it is and where we believe it’s going to go over the near -- very, very near-term. But we do completely agree with you that is what is needed to change the dynamics.

With regards to the -- question about insider buying and what’s happening, one of the things that we tried to do, and very carefully is that in October of -- I am sorry, July of last year we announced our first award for the $12 million and then it wasn’t until July -- until October before we actually got the contract. Now we didn’t put the name of the company out that was in the award, because we didn’t want to have anything go wrong with the award while it was in process. We didn’t want to create any confusion. We didn’t want them to be inundated with calls. So we strictly put out the award notice. And so as a Company policy now -- and then by the way as when the award finally turned into contract it was less then -- there was not much enthusiasm about it, it didn’t affect very much.

And so we’ve made a decision as a Company that we’re not going to be announcing RFPs or awards we will only be announcing contracts. And so because of that there’s information that the Company holds within its structure that knows about projects that are in the queue or that are in process. And that complicates things a lot more for us, as a developing Company. And so we are really trying to retain the information and not go out with half baked press release that puts data out there that would free up quite frankly insiders a lot more by putting some of that information out, but then the market looks at it and says where is the revenue, where is the revenue? So we really want these releases to come out that are concrete, that have commercial contracts associated with them or and so until that comes out where we could start releasing that data which -- I don’t want to say cleanses the confidential nature of the Company’s insiders there. But it allows management and insiders to take a different position on things. So I could assure you from the standpoint of the Company’s position that we’re very excited about where things are going and we look forward to the day that the market knows all of the details that insiders know.

So with that, I again thank you for your commitment to the Company and your time. And unless there’s any operator, I think there was one of the questions it was one other person that was in the queue that we promised to let come in.

Operator

Yes. Our final question will come from Sam Sunmonu of Chesapeake Advisory Group.

Glenn Rink

Yes Sam we wanted to make sure we got you in. We saw you were on the queue and there’s a long list, but we wanted to make sure you got in.

Sam Sunmonu - Chesapeake Advisory Group

Hey, Glenn, thanks, I appreciate that. So my main question is in regards to the financing, I guess of the Nassau contract, so I guess the question is how much money do you guys need to actually execute on that contract or you know left the remaining $11 million? How do you plan on financing it, because we’re assuming that 25% profit margin and I would have thought about 9 million in costs and kind of the way I think about, is that the correct way to think about it?

Glenn Rink

I am going to let Bjornulf initially respond to that and then I also want to touch one of the other thing you have brought up after the last call the last time. Could you Bjornulf touch on that?

Bjornulf White

Yes. Well, the way the contract is structured, we are issued progress payments on a monthly basis and to eliminate the need for us to have ambiguity or potentially DNA short positions on a cash perspective. The county will issue progress payment with an assumed $10 million final cost and then at the end of construction installation that 10 million for construction installation and procurement of materials, if we have gone under or over that will be rectified in the final month of construction and installation. So in terms of financing that work, we are only putting cash out, at any given point for 30 days. And I think Glenn or Lane can answer to that…

Lane Castleton

Yes. And then the part of that which is a great question, Sam is that we also know that that’s part of what we’re working on with the bank line. We originally – we were able to allow for up to $5 million in senior debt on the Company’s book as long as it did not have a conversion feature. And so the Company got the approval to brining in $2 million the intent is to secure up to $5 million through bank financing that would be available for us to be able to use for that. Along with that we’ve had a strategic that has benefits to us outside of the bank that could offer preferred terms that we are in discussions with this as well.

And so all of those components are debt financing, debt financing, debt financing, because that’s what we want to pursue in light of exactly what you’re describing. So that’s really the answer to the question. And then the other part of this is Sam, I also want to bring up for those listeners who are still on the phone call. The last earnings report there have been some issues with posting information on the Web site and how quickly that was posted and also the timing of calls and the Company is trying to get information out as quickly as possible and one of the things it was requested was that we not put out information on the very last day. So we’re really trying to give as much notice as to shareholders to review information, if we have not given you enough notice and there’s a desire to go over additional questions we are available to answer additional questions please feel free to contact the Company or Yvonne Zappulla and we will get those questions anyway we can improve that including getting stuff on the Web site today with numbers properly being posted without having glitches and things of that nature. We’re working to do all of those things. And we’re working on the revenue and we’re very appreciative of everyone’s support. So I just want to make sure I thank everyone and I recognize those issues.

Glenn Rink

So operator, I think we’re good for today. Thank you, if there’s nothing else.

Operator

No, there were no further questions. I was just going to turn it back to you for any closing remarks you may have.

Glenn Rink

Great. Thank you everyone for taking your time and interest in our Company. A quick couple of housekeeping notes. We are holding our Annual Shareholder meeting on July 14th at 10 AM Mountain Standard Time. In our offices in Scottsdale, Arizona. Candidly you know we’ve had the last three or four meetings in New York we feel that every three or four years we should do a meeting in Arizona that people become familiar with our offices out there, operations, some of our staff. All shareholders that are welcome and we ask you to please confirm your attendance should you have an interest and be able to attend.

We have already received a number of RSVPs also in just a couple of weeks we will be presenting at the LD MICRO invitation on June 4th in Los Angeles. We are scheduled to present from 12:30 PM, this event will be webcast the following week on June 12th we’re presenting at the Green Capital a European global resource and infrastructure conference in London. And I look forward to our next conference call when we will review our second quarter 2014 financial results in Mid August. And in the meantime, again if you have any additional questions comments or thoughts please feel free to contact me or Yvonne Zappulla at 212-681-4108. And with that I again thank you all. And I wish you all a great evening.

Operator

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!