Integral Technologies' (ITKG) CEO Doug Bathauer on Q2 2016 Results - Earnings Call Transcript

| About: Integral Technologies, (ITKG)

Integral Technologies Inc. (OTCPK:ITKG) Q2 2016 Results Earnings Conference Call February 16, 2016 5:30 PM ET

Executives

Doug Bathauer - CEO

Bart Snell - CFO

Eric Daboling - IR

Analysts

Operator

Greetings, and welcome to the Integral Technologies Inc. Second Quarter Conference Call and Corporate Update. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I will now turn the call over to Integral Technologies to read the safe harbor statement.

Unidentified Company Representative

This conference call contains forward-looking statements within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. These statements include, without limitation, predictions and guidance relating to the Company's future financial performance, and the research, development and commercialization of its technologies.

In some cases, you can identify forward-looking statements by terminologies such as, may, should, expects, plans, anticipates, believes, estimates, predicts, potential, continue, or the negative of these terms or other comparable terminology.

These forward-looking statements are based on management's current expectations, but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements, as a result of such factors, risks and uncertainties, as competition in the markets for the products and services sold by the Company, the ability of the Company to execute its plans, other factors detailed in the Company's public filings with the SEC, including, without limitation, those described in the Company's Annual Report on Form 10-K for the year ended June 30, 2015, as filed with the Securities and Exchange Commission and available at www.sec.gov, and the parties maybe unable to agree upon definitive agreements. You are urged to consider these factors carefully in evaluating the forward-looking statements.

Doug Bathauer

Good afternoon, everyone. This is Doug Bathauer and I have Bart Snell along with me. Just to give you a brief insight, so everybody for your time, being on here and spent some time with us, we'll start the call off with Bart giving a brief overview of the past quarter financials, followed by me giving a brief outlook on what’s transpired over the last two to three months and then a bit of a forward-looking and then we'll have Q&A following that.

And with that I'll turn over to Bart.

Bart Snell

Thanks very much and good afternoon to everyone. First, I am going to get to the results of our operations for the six months ended December 31st compared to the six months of the prior year ending December 31, 2014, starting with the income statement.

We recorded revenue during the first six months of $42,443, which was a combination of the ongoing Hanwha deferred revenue recognition and revenue derived from the shipments of ElectriPlast. This compared to the revenue in the first six month of the prior period which included the same level of Hanwha deferred revenue; it included $120,000 for engineering services during that prior six months and about $7,700, $7,800 of ElectriPlast manufacturing product revenues in that period.

Operating expenses were approximately $1.8 million for the first six months of this year, the decrease year-to-year of about $210,000. Consulting fees decreased by $187,000 for the first six months, R&D expenses increased approximately 77,000 related to additional application development resources and increased manufacturing activity. Interest expense increased during the period by $187,000 for the first six months due to the convertible debt transactions that we had in place. Our net loss for the first six months was about $2.1 million compared to a loss of almost $2 million for the prior period, an increase of about $123,000. Other reductions and consulting expenses were offset by increases in R&D associated with those prior levels of activity. And we had an increase in interest expense over the comparable six-month period as we had a larger mix of short-term borrowing.

For the six months ended December 31st, our cash used in operating activities was $1,463,000 compared to about 1,508,000 in the six months of the prior year, so it was down year-to-year. And for the first six months of this year, our cash provided by financing activities was about $1.6 million compared to $1.4 million for the same six-month period in prior year, up about $200,000. We ended the quarter with $281,000 of cash on hand, an increase of about 164K from the prior period.

As we pointed out in our disclosure in the 10-K, we have a continuing need to raise capital. We have a significant potential source of cash associated with warrants previously issued to shareholders, which we estimated to be approximately $6.1 million at current price levels. We trust our continued actions and the adoption of ElectriPlast will continue to increase the attractiveness of ITKG as an investment.

We also took other actions during the most recent quarter or actually following it, which we reported in subsequent events. On February 11th of this year, the Company's management and the board unanimously adopted the following policies. We adopted an entire trading policy and an FX policy. In addition, management and the board unanimously adopted the following board committees, an audit committee charter, a nominating committee charter, and a compensation committee charter. We have been operating with an audit committee now for the last three quarters. The Company took these actions to improve corporate governance and to move in alignment with major stock exchange requirements. Also during the quarter or subsequent to quarter, we approved a change of the corporate head office to Evansville, which is where we do conduct our manufacturing activities.

To summarize the operating activities, we saw a modest increase in the sales of ElectriPlast during the first six months. We trimmed some of our expenses, reduced our use of cash and we took some steps to improve our corporate governance activities.

Doug?

Doug Bathauer

Alright, thank you Bart. Anything else you’d like to add?

Bart Snell

No, I think that’s got it.

Doug Bathauer

Alright, very good. And just to give an expectation for you Adam and for everybody on the call, you can probably start line up for Q&A probably in about five minutes or so. I’ll be speaking for the next 10 minutes something to that effect. So Adam, you would give the instruction on how people -- the prompt that’s necessary to do that.

Operator

Yes, sir. [Operator Instruction]

Doug Bathauer

Great, thank you Adam. This survey has an expectation going forward to this call. We will start as often times as I’ll start with the macro trends, things that are affecting the conductive plastics market and things specific to Integral and ElectriPlast. I’ll then dive a little bit deeper into some of the specific business activity that’s going on right now and then how we see that playing out going into the future and then we will follow that all up with some Q&A as well.

First of all from a macro trend basis, I would say probably the primary question we get from people is do the petroleum prices impact our business at all. And I suppose that question is driven from the fact of one, obviously plastic is made as a byproduct of petroleum, but also is, is the right lesser need for lightweighting out in industry. And actually what we're finding is there's really no impact of petroleum prices on the conductive plastics market whatsoever. The trend towards the lightweighting is a actually increasing if anything. The CAFÉ standards are still set at the same target they have been for several years and the Paris [ph] agreement signed late last year has actually seen a much greater move towards energy efficiency in lightweighting. We've really seen a -- for lack of a better term, a bit of a surge in interest from that side of the market. So, certainly from a macro level, we're still very much in the right space and we're seeing on negative impact from anything. The only impact from -- again from a macro standpoint, we do have some European dealings with some companies in Europe and we have seen a little of bit of a maybe backing off of expectations from what we see from Europe.

But broadly speaking, macro trend is very much in place. Carbon fiber prices continue to be on the decline, not as rapidly as what they were the previous five years but carbon fiber does continue to be a -- very much commoditized in pricing and more suppliers continue to come on line. So, macro trends are still very much in our favor.

And since our last call -- actually let me start with 2016; really started with some significant advancements. And I'll first start from a technological standpoint. We would have what I would term, a breakthrough on one of our applications we've been working on for the last several years, which actually sets a bit of a table for that particular application, as we move further towards commercialization and more shorter term as we move closer to that commercial partner for that particular application. The application I'm referring to we've really been in -- it's been in R&D for six or better years but much more focused the last two to three years and some of the trials that were ran the second week of January with one of our partners, provide the results, positive results we've not seen for the previous six years.

Certainly, and I can't get too application-specific just because of who we're dealing with and NDAs that are in place but that certainly was something that was obviously great for us from a development standpoint on the application side of things.

Secondly, and I did reference the Paris agreement -- and macro trends. The other thing that we've seen and I've been here three years now, something I haven't seen for the three years that I've been here, has certainly been an increased interest on a larger scale. And I refer particularly to 11 [ph] companies, larger plastic suppliers. What we’re seeing and I've been -- we've been talking about this for the last two or three years, the real gap in conductive plastics has been the ability to produce applications and have that knowledge to how do you take this material and then apply it to applications. And that really -- and again maybe to the Paris agreement, maybe it’s just for the trends have been. But that's what we're starting to see as some of these larger plastics companies we’ve been in dialogue with since early January. It's actually been them coming to us. And at this point in time, I don't know whether anything is coming to that or not but I really say that from the standpoint of this, and if you really look into a deep dive on what's going on in the conductive plastic space, the tsunami I spoke about, actually it was two years ago, is starting to form very close in the horizon. I'm talking about the industry as a whole. It's very much growing and it's coming very quickly to shore.

Again, I'm not saying we're capturing all that. I'm just saying that conductive plastics is very much a very real thing, particularly as it applies to some of these higher shielding things and the opportunity that's been afforded to us that wasn't even there the last half of last year. There's opportunities that were not available to us six months ago that now are opportunities for us. And it's largely based on number one, the IP portfolio because as you all know, our application patents and by that I mean applications utilizing conductive plastic, it covers a pretty broad area, lots of applications and it’s fairly general as far as what type of conductive plastic is used. So my point is, in many cases you have to come through Integral in order to apply conductive plastic. And we still to this day, we still have the most applications knowledge of anybody out other. And that’s not hyperbole, that’s me here in a first stand from some of these other companies.

And I would be remiss without mentioning the off talk about global commercialization agreement. And I can really kind of settle a mystery here. I am very transparent on calls, probably too much so. What I relay on the conformance calls for the most part exactly what's going on and how we're progressing and various things, and global commercialization is exactly one of those scenarios. And I think we're almost something like one year, if I am not mistaken, give or take some time, we’re -- actually given that now, and from the three to six-week timeline, and at that time we were on the verge of an agreement with that particular company. And at that time also it was very specific for a given geographical region. And as things progressed and as things continued to nurture with that particular company, that region expanded rather substantially. So, if you’re wanting to really know where delay had come, it really had come in -- we had started off at one level and is increased rather dramatically on what the scope of that agreement was going to be. So that's really what the reason for the perceived delay. And certainly that wasn't something I was able to share very openly because there were ongoing negotiations; ongoing business transactions that were taking place, just couldn't be that way.

So, as every update was given, I was just telling you guys exactly what was happening. And I say that in the context of where we are now. And I haven’t given a timeline on that in quite some time, very much ongoing with that dialogue. The only thing that I would say has changed in that scenario is there is greater opportunity for Integral now than where there had been six months ago and there are other people involved now that were not involved six months ago. So that's very much intact, so what we've been talking about for the last 12 months. But the scope of it has increased rather dramatically. And I won't say the players have changed but more people have come into landscape which has changed the dynamic of things just a little bit. So, I think that’s very much on a bigger partner, on a global scale; that really has nothing to do with the things that -- the day to today things that we're continuing to do. And hopefully through Q&A there is probably little bit more that we can -- I can add a little bit more color to that as times moves on.

Secondly, I do want to talk a little bit more about batter technology. And I'll just give an update from when the last phone call took place; last conference call took place until now. And I'll just talk very specifically about business things that took place in the last three months as well as technological advances that have taken place. As I’d mentioned out last newsletter, we're very active in multiple sectors of the battery space. Our plate as well as the patents associated with it are not only good for bipolar, they're also good for flow batteries, multiple types of batteries, those are -- our plates can be used for. And it can actually transfer into fuel cells and things like that as well.

And when we first announced this and when this first came out, we really had -- we really knew this was a great solution for bipolar, we really didn't know until request started to coming in just how big of an opportunity there was in flow as well. So, in the last three months since our last call, we've met with three separate flow battery companies as well as three separate bipolar companies and all varying in size from small to as big as you can get. And the whole purpose behind those is we want to make sure we have the right technological partner and we also have right business partner, as we forged through this. As I mentioned the last time we spoke, we’re a little bit further along than what I thought we would be at this point in time from a technological standpoint and we want to be very methodical and strategic as we move through this battery landscape. I couldn't be more excited where we're with batteries at this stage of the game; don't have an expectation on when something may come to pass or come fruition on that.

We certainly have had some opportunity but we are just -- we’re continuing to move forward technologically speaking. And we have multiple things from a business perspective that will be taking place here over the next two to three months as well. I don't know that there is anything that is going to come out as far as fully monetizing that just yet because quite frankly the opportunity has -- it’s a little bit bigger than we’d originally thought but we want to be careful about how we approach that and not, for lack of a better term, sell out too soon. So, where we are right now, we’ll be making more bipolar batteries similar to what we had at the battery show but there is tooling in place right now in process. We'll actually be producing several new bipolar batteries for the purposes of the benchmarking, the testing and all those things and that’s on the bipolar side. And then we are very active with two separate flow companies right now. And it really just depends on how the prototyping goes on the flow battery side as to how quickly things come to fruition there. So, there is two separate things go with battery, actually three. One, technologically we are moving along, we are doing further R&D; two, we have commercial opportunity on the flow side right now; and three, we are actively meeting and talking with potential partners in that business.

So, I think the advancements continue to go. And back to Paris agreement, it's a really good space to be in right now with the R&D, the funding, the grant all those things going on with it; there is a lot of momentum behind the energy storage space right now. Anything to add to that Bart, did I miss anything or..?

Bart Snell

No, I think that’s pretty thorough. Thanks.

Doug Bathauer

And actually to that point too, I mean the interest is coming -- it's not just North America, we've been in the Germany -- this is very much a global effort on energy storage and where we talk with various companies from all those areas at this point in time. So, that’s where we are on the battery side of things.

And we’ve had the question, are we focused on automotive with battery? And actually we are not. Certainly automotive would be a space we wouldn’t mind being in but if we are really focused on anything specific, it would be more grid storage on the bigger side on flow batteries, grid storage for things like solar, wind those kind of things. Those are things where lightweighting is not so much an advantage but they are very large batteries. And that’s the focus on the flow. And on the bipolar, it's really going to be things that are much quicker to market, golf carts; motor cycles. You are probably aware of how rapidly the growth is on electric motor cycles, bicycles and the like in Asia. Such the focus is much more on those more tangible items right now and wheelchairs, rather than it's on automotive. Because automotive is as all we know, it’s a tough market to crack, takes a long time to get in and margins are small. So, we're actually not focused on the automotive on the battery side of things. I won’t say all things but automotive but that’s really our focus is more away from automotive and more towards the tangible.

And I do want to talk on Korea just a little bit too. Since last call, we did announce that Chang Rim that actually manufactured the first parts and those have gone out to customers. I can't be super detailed on the exact application, only because Mr. Kwon or Chang Rim has been -- has asked that not be disclosed, not talked about; it's his IP and until he really has that out and circulating, he doesn’t really want people to know about it yet. But what I can say is it is a consumer product and it's a really more -- I won’t call it low tech but it's more low tech than what's traditionally associated with ElectriPlast product. It doesn’t require months and years of testing. It's truly something that can be manufactured and sold direct to the consumer. And Chang Rim has a lot of those distribution relationships already. There has not been a subsequent supporter since then yet, past that first one that we shipped, whatever that was, late last year, but we are still awaiting that second one. And we do not have any further update with him on the motor casing. He’s not heard back from the auto manufacturer. So, currently I know he is working with absolutely no time table associated with this but he is working with defense as well as automakers over there. And just to clarify, not North Korea defense. So, we can all feel better about that.

And then Hanwha, as I mentioned on the last call, they were out of -- the line was not up and running for a period of time, as they physically moved locations post restructuring for them. The line is fully operational. And they’re within roughly six to eight weeks at any given point in time to be able to expand their capacity to fully take care of anything that Chang Rim may need. So, that was part of their move with making sure they’d be able to satisfy what Chang Rim would need. So, Hanwha is in a position where they can easily expand their current capacity from what it is right now. And actually, there are several lined up for Q&A. I am actually -- I think it might be more efficient just to jump straight to the Q&A. And probably, I’ll cover more ground that way rather than me ramp [ph] on.

So, first question is Keith Miller. [Ph] Keith?

Question-and-Answer Session

Q - Unidentified Analyst

Hey, I’ve been a stockholder for seven to eight years I believe and I think your Company has been around for 20 years. And as my frustration is growing, I feel like there is just a lack follow through in some areas. Wondering and to be honest, I’ve never participated in Q&A. But again, due to my level of frustration that’s coming to the point where I just want to hear it from you. For instance, whatever happened to Boeing and Tesla, I thought there was something that works there?

Doug Bathauer

Okay, couple of things there, Keith, right?

Unidentified Analyst

Correct.

Doug Bathauer

Couple of things, Keith; one, absolutely 20 years, and if I am not mistaken, the 20-year anniversary of Integral been incorporated just took place two or three days ago. And to be perfectly candid with you Keith, I have been the CEO for three years, I don’t own the first 17 years of that. I do understand the frustration, I was a shareholder were 17 or 18 of those 20 years. So, I really do understand how long in the tooth it’s been, and how frustrated can be after that longer period of time. So, I won't make excuses but I’ll say the prior 17 years, it is unfortunate that it has taken that long to get there. But certainly from the last three years going forward, I own all that and own any of frustration you have at any lack of follow that you may have. But to your direct question and this is -- it's interesting the question you asked, I get fairly frequently about Tesla and I get Boeing and I get several other names out there. The fact of the matter is I’ve never spoken about Boeing publicly. And actually my only experience with Boeing, it was three years ago at the visitor center. So, it -- so I have never spoken about that and I think there is often times that the company gets -- that’s an interest where I [indiscernible] because I’ve never talked about it; there is nothing going on with Boeing. And for the record as long as I’ve been with the Company, I’ve never spoken with them, okay?

Unidentified Analyst

I guess maybe I found that on the Yahoo! I’ll follow that from time to time and I may have…

Doug Bathauer

Fair enough. The thing is and this is --the conference calls we’re actually relatively new for the Integral shareholder. And we have been doing these for a little bit over two years. The one thing that there is a benefit of and again, you may or may not be familiar with this, but I mean there are transcripts of every conference call. And that means absolutely feel free, go back, look at the transcripts, look at them. And if there is something, we are not following through on, if there is something I am saying and I didn’t do, absolutely call me out on it and I’ll be more than happy to say why we did or why we didn’t do it. But the whole intent to try to create an atmosphere of one where I try to disclose as much as I possibly can, and I do that. And when things don’t work out the way I expect them to, as was the case with the global commercialization agreement, I come out and tell you. I am certainly inviolable far from it but I am always going to make the effort of telling you everything that’s going on as best I can. But with that I am also going to wrong from time-to-time.

Unidentified Analyst

But what about -- I do follow newsletter also but these don’t tend to get out at least in a timely fashion.

Doug Bathauer

Yes. And that’s an instance that’s something that I own, Keith. I think two newsletters ago I came out and said hey, look, there is really no excuse for this and there is not, and the tardiness on those is a 100% on me. And there is really no reason for it, other than they are not getting done. But I can say going forward I mean the one that came up this weekend was on time and going forward they will be. But again that’s something I do apologize for because we can control when a newsletter goes out. I can't control when a multinational decides to say yes, or we can’t. So you have some of those simple things we can control, we will do that.

Unidentified Analyst

Well, I guess a lot of this again is just due to my frustration over the -- when the stocks drop, I do wish you a good time however.

Doug Bathauer

Understood.

Unidentified Analyst

Thank you very much.

Operator

Thank you. Our next question comes from the line of John Harold. [Ph] Please go ahead.

Unidentified Analyst

You guys were just discussing the Company's anniversary, and I just noticed in the 10-Q few minutes ago that it was actually four days ago, 20 years of the Company being in business. So, just a quick couple of observations…

Doug Bathauer

Just another observation is the first time you haven't been the first caller, so [indiscernible] jeopardy.

Unidentified Analyst

Well, I wanted to browse through that 10-Q and just pick up from that what I could as quickly as I could. And I just noticed something, there is one sector that I've written articles about and I followed diligently, has invested very well and that’s the biotech sector. And I noticed that Integral's 20 years being in business, I don’t know why it is but I would have expected the accumulated deficit or loss to have been much greater than what it actually is. It’s $55 million but that's over 20 years. And for me that tells me -- I see biotechs lose that much money every single quarter in hopes to see a drug get approved years down the road. So, all in all, and especially for an OTC company, Integral's signature over this 20-year period certainly seem to me well-managed when you think about a revolutionary product that's finally entering into the commercialization phase, delayed or not.

Doug Bathauer

I understand the viewpoint there and again I don't want to take the devil's advocate or the other side of it. I certainly understand where you're coming from there and I do share some of that but on the flip side I think it has -- it does get a little frustrating from an investor standpoint, from the guys who invest in it on the 20-year anniversary, you know what I mean. So but anyway, I do understand what you're saying is from a biotech standpoint, you may not have that quarter to quarter return initially but when you do get it, you do have the big drug release, so that's when things happen so.

Unidentified Analyst

Yes, it's tossed away; it's likely previous callers say, can sometimes be frustrating but when a drug gets approved and products finally does make it to market, I mean it's just everybody's doing high fives. Do you think that due to this commercialization phase, even though it's been delayed, I'd think you’d probably think that this is one of the reasons that the stock has actually held up pretty well for the last year. And considering that the stock is basically trading today where it was a year ago especially in the phase from a delayed global commercialization announcement expected about this time last year, or could the strength be coming from the reduced quarterly expenses as people start to see that you're always spending what you have to but there's no waste in pork [ph] out there because it looks to me like in this past Q that you guys spent nearly $300,000 less on the expense side in past quarter year over year.

Doug Bathauer

And like without a go down but I'm not going to sit here and say I'm happy that the stock is flat year over year. It's okay, I won't do that. But I will say given the things we're -- I’m pleased about, obviously I wish the revenue were higher but the fact that we're able to start having regular revenue, albeit at small but we shipped out more ElectriPlast last month than we did any other quarter. Again, it's not the numbers that we want to be at yet, but we're starting to see those regular sales go out the door now. And I do think to some degree, again, I can't read the mind of investors out there and some people I don’t have to read their mind, they speak it. But I think the fact that you're starting to see some revenue, I mean I think we've had it for two straight years; is that right Bart, at least some level of revenue every quarter?

Bart Snell

Yes, that's true.

Doug Bathauer

It's becoming a little bit less of a pie in the sky a little bit, at least we know there's some acceptance and there some people buying this and put it into product. So, I won't say we're GE or anything like that from a predictability of earnings standpoint, but I think we've crossed that threshold oh, nobody wants us and nobody's buying it at all. Revenues are actually starting to turn. So, I don’t think it's as theoretical as what it was five years ago for example.

Unidentified Analyst

Okay, thanks for all that info. And I've got one last question and this is big one, and then I'll get back in the queue. But did I hear -- it sounded to me like just a few moments ago, you made introduction you were talking about -- it sounded to me like, tell me if I'm totally wrong but it sounded to me like one of the reasons for the delay is that there's another possible tier one partner bidding against the expected tier one partner, as far as global commercialization. I'm asking that right or am I just making that up?

Doug Bathauer

I think that's a good example of putting words in my mouth, which happens very frequently by the way. No, I wouldn't necessarily characterize it that way but I think what I said was opportunity now exists over the last two months that have not existed before, which certainly does potentially change --- potentially changes the dynamic of how that relationship may look and potentially how some of those terms may look. So, I don't know if that answers your question. And if we were bidding more of -- it’s not actually something I'd be telling you right now anyway.

Unidentified Analyst

Okay. That's the first I've heard from you that somebody else was really looking at commercialization besides the [Multiple Speakers] the company you’re referring to.

Doug Bathauer

To your point on a macro level and this isn’t in defense on my tsunami statement, it’s just the fact. The tsunami is heading guys, okay. And I am not saying we're capturing all of that wave but it really is here and it really is coming. So, there are -- you will see conductive plastic and multiple applications in multiple sectors from multiple companies five years from now. And so, it's no shock that there is other opportunity for us for the reasons that I stated.

Unidentified Analyst

And Doug, one fine final thing, it looks to me like your CapEx needs are actually less year-over-year, is that correct or was I reading that wrong?

Doug Bathauer

Yes, I mean Bart would probably speak to that little better but we have been -- expenses have been going down. There is few reasons for that. One, certainly when we brought manufacturing in-house that changed things quite a bit because that really greatly reduced some manufacturing costs. Secondly, Bart has mentioned earlier in the call that headquarters is now Evansville, there is no -- we'll no longer be having a presence in Bellingham at all. So, we had some duplication of offices and things like that which no longer are there. So, I would -- and you're starting to see more dollars go towards R&D side of things. So, I would anticipate CapEx probably remain in the ballpark, in the same neighborhood if not a little bit lower. Actually in the short-term, I don't see them increasing dramatically for any reason.

Unidentified Analyst

Well, I appreciate the answers, all of it. I’ll get back in queue.

Doug Bathauer

Alright, sure enough.

Unidentified Analyst

Thank you.

Doug Bathauer

And just as a focus, fulvous, I'll do my best to take all questions but there are -- and we don't screen calls, we don’t do any of that, but there are eight people in queue right now. And we'll do our best that but in the interest of time; I don't want to go way-way over. So, I'll try to shorten things up as best we can here.

Operator

Our next question comes from the line of Aaron Lincroft, [ph] a private investor. Please go ahead.

Unidentified Analyst

I’ve got a question, you guys spoke about, given everything that’s done to eventually get the Company’s output into the major exchanges. Are we going to try to do the share price organically or is there a thought that doing a reverse split 5 to 1; 10 to 1 in the near time future?

Doug Bathauer

Yes, and I think really the thing on that Aaron what we're -- the whole goal -- I think what I've said in the past is we'll do all the things that we can do internally to be ready for that. A lot of things that we've done just in the last couple of weeks so far is the various committees and boards and the things like that are in place. But, I also think when you do move to an exchange or certainly up-list, it is all about -- it's about timing as well. If we were to just magically be on NASDAQ tomorrow, it may or may not help us.

Unidentified Analyst

You know what I mean. So, as [indiscernible] we should caution before doing it [indiscernible] we don't have the market cap to back it up or revenue have the same share price of that magnitude that we love.

Doug Bathauer

Yes, so your question on price actually little bit too -- I am not -- what I just totally bent on, we have to be on NASDAQ two months from now, it's actually much more of a fluid thing. So, as corporate events and things dictate, we’ll do that. So, it's -- I can't really directly answer you price question because it's not really anything that's part of the current dialogue right now. But we're doing all the stuff that we have control of, we're doing all those things right now. And aside from an up-list, it is good governance, having a compensation committee, having an audit committee, having insider trading policies in place, all those things are just good for a company, regardless what exchange you’re on. And actually you can get along Bart, but I think for the most part from a corporate governance standpoint maybe give or take a couple of minor things or subject to the same corporate governance in almost any exchange where we're right now, is that about right, Bart?

Bart Snell

Yes, I don't want to put a percentage on it. Of course that's exchange as well as the SEC. We certainly are facing the same SEC, so clients on certain exchanges; we would possibly face some internal controls related factors that we would need to address. But our disclosure, how we communicate with shareholders is I would say identical to what it would be whether we were up-listed or not. And to the caller's question, yes, exactly it's not -- we're not looking for a financially engineered stock price. There’s got to be a substantive ongoing continuous news that you the shareholders who want to see to sustain that stock price otherwise it's one-off event; we don't want to do that.

Unidentified Analyst

Absolutely. And another part of the question, we thought -- you spoke about the tsunami coming in next year, and we are capturing some of that or obviously not all of that; is that for future tens? I mean talking about the present and the revenue we currently have, I wouldn’t say we are really capturing the tsunami; is that our front step, so talking about the future?

Doug Bathauer

No, that’s actually a fair question. And I -- just so I was making sure I remember correctly, I read the transcripts from two years ago and the context to tsunami really was making sure should we -- making sure we as a company are prepared from an infrastructure standpoint to be able to handle all those things from the tsunami. And right now across the conductive plastics industry, and again, I am speaking towards the higher lever EMI type shielding things in battery those kinds of things. There is not a lot of revenue being derived there across the industry. So, when I say we are capturing part of that, I am not referring to capturing part of that via current revenue; it's really as far as where we are at in process. Like when I talked earlier on the call about one of our [Multiple Speakers]

Unidentified Analyst

Candidly speaking? Okay.

Doug Bathauer

Yes, because particularly in this automotive stuff, I mean it takes forever but once you start getting into those applications, you can project one, two, three years out on some of these things. So, we are plugged in; and the people we are plugged in with that’s actually what's securing our place. I won’t say in line but that’s really what's securing us on being prepared for all that. Because again my fear has been seeing the conductive plastics industry growing out there in the ocean, seeing that wave build; my concern was being when it finally hits land, we were totally underprepared for that and we just become another company with a superior technology that somebody else ended up when that on.

Unidentified Analyst

Are we built currently now to actually be hit as tsunami and it's not going to hit another competitor?

Doug Bathauer

No, and here -- and I have said this several times and it's exactly the same thing. We two -- three, we actually have three big advantages right now. Number one, we have IP. And we not only have IP on our pallet, we also have IP on applications utilizing conductive plastic. Number two, which is a huge advantage right now and will be for a while but not forever is we have the applications engineering expertise to apply this technology. Right now that isn't out there, it’s just not out there, and this we know because we bumped into those people. And regardless of what material are you using, if you don’t know how to use it, it just doesn’t do you any good. So, my point is we are still in that spot; we are technologically, from engineering application side of things, we are still well beyond anybody else that’s out there. But we won't be well beyond everybody else two or three years from now. They will catch up to us. That’s again I am back to the business plan for three years ago. That’s why we are making sure we find the right partners to be with now where you marry up with somebody who has the breath on the material side of things and then we have the application side to them come in there. That’s why it is really that perfect marriage.

I am telling Aaron, we would have a hard time building all the infrastructure that we would have to have to totally support what's really coming in. I just don’t see any other way around that other than the partnerships we are engaged in. You would see -- to John’s question, see CapEx that will go up by multiples, it's just not we [Multiple Speakers.]

Unidentified Analyst

Absolutely.

Doug Bathauer

We don’t have time to do that.

Unidentified Analyst

I was trying gauge how much time is necessary to do all this because I was under my own impression that from just yours from a couple of years ago and last year at conference call, I thought on the horizon and then we're speaking of it now.

Doug Bathauer

Yes. And, if you were to ask me five years ago, I would have thought it would have happened sooner. But now that it’s gotten much closer, it's far more tangible. Obviously, I know the competitive landscape out there, I know who is entering in and who is coming in and what's going on. This is where things are in a different place than they were even a year ago. So, it's as far as the now, it's very much a now; and I don’t mean now firm will be $1 billion dollars of revenue next quarter, I don’t mean that.

Unidentified Analyst

Okay. Awesome call, thank you Doug. And keep it up. And I look forward to optimistic and eventful coming up conference calls.

Doug Bathauer

Alright, thanks Aaron. Next question?

Operator

Our next question comes from the line of Robert Monahan, [ph] private investor. Please go ahead.

Unidentified Analyst

So, I’ve got a couple of different questions here, one of them is going back to the battery environment. And I just wanted to try to touch base a little bit here, as far as understanding from my perspective what it is that you are trying to accomplish from a structural standpoint. The idea or just of what it was that I was getting was that we are going to be kind of taking a backseat, if you will, that we are going to try to partner with someone that have significant presence and one that could go ahead and take care of things from the productive -- production standpoint et cetera, maybe you are marketing entire across the board. And we would had some type of revenue stream, based on whatever agreement you guys would have from per unit or royalties or whatever that maybe. Is there a competitive environment from the standpoint as far as first of all, they’ve got to go through all their testing and so forth? And then are the people that would be a different entity from the flow side versus the bipolar side? Could you just enlighten me a little bit more as far as that goes?

Doug Bathauer

No, all good questions, if I don’t catch all of them answered, just come back to me. That’s still the same thing. And I wouldn’t characterize it as back seat. But there are people out there right now making bipolar batteries and making flow batteries. That is not our desire. We do not want to become a battery company. If we were to become a battery company, it would be at least a six, seven-year cycle. To that point, so it's not back to infrastructure to prepare for a tsunami; it's a same thing with the battery. We don’t want to be a battery supplier. But what we are able to do is improve people's current batteries.

I’ll speak theoretically on flow battery, and this is real world, okay? The reason there is an interest on the flow from a -- the flow battery people we have talked to it's because of how those plates are manufactured. And the ones we work on the big like are three feet by three feet, so these are massive plates from a battery standpoint. Those plates actually are -- they’re all machines; it is a very expensive process to do that.

Unidentified Analyst

That’s interesting.

Doug Bathauer

Yes, because they are made out of hard metal and there is literally the way they’re made, but they’re machined. By using ElectriPlast, you are able to mold them. Totally changes things and it really dramatically proves it's not a weight advantage. There is a lot lighter but these big flow boundaries going to be stationary anyway, so it doesn't really -- that doesn’t really come into play. So, like there is a potential partner, right, there is somebody on the flow side.

On the bipolar side, same thing we are working with -- and I know working with is a vague thing but we are working with two or three different companies on the bipolar side. There is a lot of momentum and a lot of R&D, a lot of money government and other ways going into bipolar development right now. We are talking with the company in India, we are talking with the company in North America, we are talking about the company in Germany. Quite frankly at this point, Bob, I don’t know who the best partner is going to be for us. We have been down that path with partners before and it all sounds great and good. So, next thing you know, they take forever to get something done.

So, we are really approaching this much more -- we are approaching this methodically and strategically the way we go about this. But at the end of day, just so more thoroughly answer that question, our goal number one is to sell ElectriPlast. And number two, and this really gets in more to monetization or something, and this has been a bit difficult for people to understand, I probably just not articulated it correctly. We will be putting our battery technology into wholly owned subsidiary. That’s not a scary thing. We are not selling off part of the Company and cutting shareholders out. That’s not how what that is. We really have that opportunity to do that. So, how that would work Bob, battery technology goes into a wholly subsidiary called Integral Batteries, I am making a name up, okay? What then allows us to do is then sell part of that to a partner.

Unidentified Analyst

Sure, okay.

Doug Bathauer

They now are an equity partner in the battery business. The money that they spend on that, goes directly to Integral and their shareholders. So that’s how we are able to monetize this without actually happening to see sales.

Unidentified Analyst

Yes, and also then gives them a vested interest in performance?

Doug Bathauer

Well, I’d say that’s exactly it too. It gives them a vested interest; it's not a vague; if it works whatever, it really gives them a vested interest. But again part of that whole process is we are still supplying the ElectriPlast. So again, it's a win all the way around. But it allows us from a public and from a Company standpoint, it allows us to short circuit if you will, get a short term around, how do you monetize the business. And that’s how we are able to do that.

Unidentified Analyst

Okay, good deal. While one other thing along that line, just a quick question because you’ve vocalized Germany and the Far East and the United States as far as potential partners. Is it viable to have all three in a partnership? And will they move out [ph] as they don’t perform?

Doug Bathauer

It actually is possible. And again, we are not to that point yet. And that’s really why -- the first few months on this and the battery show was a big deal for us because it really just opened us up to a whole another audience as well.

Unidentified Analyst

Okay.

Doug Bathauer

It's really the point where we are talking to lots of different people and starting to work with various companies to see who maybe the right one. But, like flow batteries and bipolar battery, you really don't compete with each other. So, there's very much a possibility there could be multiple, I fully anticipate there being multiple agreements that come forward from this. It's a little too early to tell how that's going to work or do. But I wouldn't anticipate, again I'm guessing here, I wouldn’t anticipate it's one partner that might move on. The technology is too diverse to just confine ourselves to that.

Unidentified Analyst

Alright. Well, I appreciate your upfront diligence as far as that's concerned and not a lot of things go too quickly without really having a good handle on this. So, thanks for your efforts there. My other question had to do with your projects that -- having a breakthrough if you will. I don't know if I can ask you outright but is that in the cable industry, is that the cable environment that's finally coming to fruition there?

Doug Bathauer

I can't really speak to that specifically. As far as cable goes, I can say we're still working with Delphi, still have a good relationship there. I would like to say more than that and believe me with all the companies I'm working with I try to get permission to say more than what I'm able to say; I'm just not at that point yet. But last call, I did address; I would be just remiss in bringing this up earlier in the call. I did talk about last call with Delphi where we've done two or three trials, end of last year and we've continued to do more this year as well. But I mean we’re real pleased with that. I mean obviously that relationship is -- I think we're three years into it and of course I would have loved if had something happened in month six but it is progressing real nice.

Unidentified Analyst

Well, from an overall standpoint, I'm sure you're still pretty excited about everything going on here and so forth. If you were to gauge yourself from last call to this call as far as excitement level and anticipation whereas in the last earning, you had a lot of the new stuff out as far as battery and everything else. And where you are today regarding to do -- rate both of those, as far you're excitement level on a 1 to 10, where were you last call and how are you this call?

Doug Bathauer

From a corporate -- sometimes it is difficult to parse away the public side and the real company side. I'm sorry for using that term real company. From the corporate side, in a real good place and feel much better than what I did the quarter before. From a public side, I don't feel as well because the share price hasn't done what we needed to; actually the share price has declined and that always weighs on you because obviously it weighs on the investor base as well, no question about it. But from a corporate side, I feel -- I actually feel much better just because of all the things we talked about earlier in the call. And knowing that we're to the point we can pretty well bring things to the close and fruition, obviously just feel a lot better about that so. But I’d rather have multiple things signed and in place and it’s much more tangible and everybody understands that, absolutely I'd much rather be in that position. But we’re just not there yet. We’ve got to stick with the plan we put forth two or three years ago, and execute it. That part of it I just can’t control.

Unidentified Analyst

So under the corporate umbrella and corporate side, if you will, one of the fundamental objectives from my understanding is to capitalize monies back from exercise on all the warrants that we've had had over the years and obviously to facilitate that or make that happen, there needs to be some tangible increases as far as the stock price itself to make those things attractive, et cetera. Do you foresee you being able to ride pretty easily through on the cash and the things that you have going right now until that can occur?

Doug Bathauer

Actually Bob, ride easily through has not been in my vocabulary. Obviously we try to -- we’ll get through and obviously market -- current market environment doesn't make things as easy as you'd like. We'll just keep growing it there and get there. And certainly with some of the other things on the horizon, I wouldn't anticipate all of our money happen to come from the capital markets, so.

Unidentified Analyst

Well, I've monopolized a bunch of your time here. Thank you very much for taking my call and listening to me and thanks for your candor.

Doug Bathauer

Alright, sure enough. And next call, and we'll try to rush through here, we still have a few on line. So, I don’t want to go past seven.

Operator

Our next question comes from the line of John Quackenbush [ph] from Integral. Please go ahead.

Unidentified Analyst

Well, you covered motorcycles and wheelchairs, now let's see when I first invested that was more invested in motorcycles, now I've to got to start thinking about wheelchairs. But you brought those in the pictures and wheelchairs, I was just thinking the battery, there is such a large portion of the weight of those, and with the relationship with East Penn and I was little surprised that we’re not with Mozaiden [ph] that we’re not more tied into the auto industry. And I don't understand all the business and how that goes. But, I mean I can see going where the money is, but it seems like the bipolar battery with even our demand is actually if we're selling ElectriPlast to another battery maker with bipolar technology that -- wouldn't that go into automobiles pretty…?

Doug Bathauer

John, I am here to tell you regardless of how good a product you have and how good the application is and how revolutionary it is, it is years before you get it in an auto. So, if we had that -- if we had the perfect bipolar plates sitting on the table right now, it'd be three to four years before we're in the first car.

Unidentified Analyst

Okay.

Doug Bathauer

It is how that's frustrating endeavor but it's just the world we live in. So, it's not really a market I want to be overly focused on just because it will take forever. I mean it will be a byproduct eventually but that's not where -- we're not focused on that at all. And all the battery people end up supplying to them as well, but that's not where our heads at. And again, back to macro level, grid storage, things like that is really where there is a lot of momentum. I mean even down the level of the drones and things like that, so there is a lot of opportunity that you don’t traditionally think about probably.

Unidentified Analyst

Yes, the lightweighting in drones, aircraft and such, but the aircraft, then you got TSO regulations and all that. So, I know how hard it is particularly with aircraft. And I was going to ask about Delphi, and you touched on that and how we are summing those layers. So, I'll just leave the rest of my time, because you [Multiple Speakers]

Doug Bathauer

I appreciate it. And I've got two more there. Frank Cocks [ph] I believe is next.

Unidentified Analyst

Yes, hi Doug. I've got a couple of quick questions here for you. Would hedging carbon costs be a good idea at this point or since they’re not really very expensive, but potentially they could go and cut in through profit margins. So, if we're closer to commercialization that maybe something we need to look at or…?

Doug Bathauer

It's possible right now. I don't -- because carbon prices and carbon fiber prices don’t run in line with one another. So, for the foreseeable future, I would not think that something that we want to do only because of the trend that's in place. But at some point in the future, yes, that would certainly be the case where would be the -- I don't know what vehicle it could be used in order to do that right now. Bart?

Bart Snell

It's probably more of a higher manufacturing volume discussion right now.

Doug Bathauer

Yes, that's true too.

Unidentified Analyst

And then another question here and then I just want to quick follow up there, ElectriPlast. Can you give me some examples of how we could help the solar industry?

Doug Bathauer

Pretty much every application that we've developed for automotive, particularly on the electric car side of things, and by that I mean invertors, power boxes things like that they all require the heavy level of shielding, almost all of those devices are inside of solar and wind as well. So, the most obvious ones are going to be in closures for the power electronics inside of those industries, it's transfers over almost exactly from electric vehicle over to those industries.

Unidentified Analyst

And one more thing -- and I don't want to touch on the spot in anyway. So, if you don't feel like you want to answer it, but I was wonder if you could share with us some of your goals for this year without of course giving a timeline, you know what I am saying?

Doug Bathauer

No absolutely, yes. The real goals are to at least partially monetize the battery business without question and have fully in place the partner or partners that we need on the very large scale. And that's really more from a supply distribution that side of things. And then to -- once a couple of things start falling in places to at least modestly start expanding are engineering.

Unidentified Analyst

And just one more quick question. Do you still have the engineering department in [Multiple Speakers]

Doug Bathauer

Yes, we don't anticipate that change neither.

Unidentified Analyst

Okay sure. Okay, thank you Doug.

Doug Bathauer

And then one more question, and I am sorry if I’ve let you be off, I am going to try to -- one, maybe two and then Jason Lamp.

Unidentified Analyst

Hey, Doug, how are you doing?

Doug Bathauer

Doing well, how are you doing?

Unidentified Analyst

Pretty good; I appreciate your time. Just curious, I don’t know if you can answer this or not but have you had a chance to sign a contract to-date for anything?

Doug Bathauer

In relation to what?

Unidentified Analyst

Into commercialization or just anything with the business side of it -- or with the batteries or anything like with batteries, do you have a chance with the battery side?

Doug Bathauer

And stop me if I am speaking out of turn here, Bart. We've had opportunity in both scenarios to do something and put something in place on an agreement level. And I don’t want this to sound wrong or like or too secular or anything like that. But the numbers that were in place, particularly on the battery side of things, it came on very early in the process and the rights that were had to be given up were way to me rights give up for a low 7-digit figure. So we really fell like and it's given that naïve. We’ve got all kind of thing. It really just as this has continued to grow, we really felt better to continue building out the battery technology a little bit more before we actually took -- before we did something pretty materially just because we are so hungry for revenue, if you will.

And then certainly on the global commercialization, I mean you heard an update, there was an opportunity for us to do something. But certainly our responsibility from a management standpoint obviously is to -- it's protect the Company and the shareholder. And whatever we do -- there is certainly things we can do product, probably counter to how most microcap think, there is business decision we make that would absolutely have an impact on the stock on a short term basis. A positive impact, the six, nine months, 12 months later, you’d be wondering what the wrong we did, you know what I mean? So, our vision remains the same as it was three years ago. We're looking at the long term viability and profitability of the Company and that’s really the whole thing. So, I answered that more thoroughly than what I should have.

Unidentified Analyst

So, is the long story, what I understand is you have an opportunity to sign contracts and come out with a revenue and like you just said that at the end of the day it's not what we want as -- we can't see everything, we are not supposed to see everything. So, we trust you to guide us down that path and make sure that we are doing all right?

Doug Bathauer

Yes. Again, there are some words to put in my mouth. But there has certainly been the opportunity to enter into some agreements, so there would be some monetization of the business.

Unidentified Analyst

Thanks Doug, I appreciate. Alright, good night.

Doug Bathauer

So, we got time for maybe -- I am going to make a hard stop at 7 o'clock. So, I'll try to go quick on this. Greg Cowen? [Ph]

Unidentified Analyst

Yes, you had 8-K filings that you had a contract you get board try to sign off them recently?

Doug Bathauer

No, we did not actually said we had a contract. We actually said there were business terms in read in the 8-K. And the reason we said that as mentioned on the last call that was there because, if it were up to us we wouldn’t have done it but it really had to do. It involved our IP which potentially turned into something of a disposable amount. There was an agreement in place, so it is business terms arrived at and that involved our IP.

Unidentified Analyst

But you had board approval to do something with it that was supposed to be -- that was a question on internet, was board approval?

Doug Bathauer

Yes, I can guarantee you this. Any agreement that we enter into that involves license in our IP is going to require board approval. I am not going to…

Unidentified Analyst

Even on the other side. It sounds like -- and next question is you had articles outs.

Doug Bathauer

In some cases, yes. What about an article?

Unidentified Analyst

An article that you tweeted about a couple of times stating -- made it sound like production levels have been raised but it didn’t and the article said you had few more parts to do; what is your current production and are you in the mid-term; have you finalized the additional production or is that still pending.

Doug Bathauer

Good question; it's yes. It’s yes and yes. We have increased our capacity and we are waiting on trying to think of how far I go into this. We do have new toolings that were put in the place that would significantly increase our capacity with -- actually without, I know it's hard to believe, but without any increase in expense, we are not done thoroughly trialing this yet. That part is not ready.

Unidentified Analyst

Okay. So, in the near term, I think the article mentioned five times the previous production?

Doug Bathauer

Yes, but what I am talking about on the going forward but we’re -- the tooling changes we need to make now which is kind of a normal thing that would put us into the six to 10 times, once we get that tool fully operational. I can't give you the timeline on it because I really don’t know yet because we are in that work, so little stage and we’ve got to do some thinker relative to see how much it further goes beyond that.

Unidentified Analyst

Really, I mean it was just minor expenses to get 6 to 10 times production?

Doug Bathauer

Yes. And it gets technical beyond that. If you want to ask me offline, I can be more happy to go into detail on that. But yes, absolutely because right now we are -- but yes absolutely that’s the case. It’s just change in the a little bit of the method of manufacturing but still stays within our team. If you knew it's not that far reaching, actually it’s just more of a common plastics manufacturing method that we are utilizing.

Unidentified Analyst

Yes, any extruders you can extrude one stream, you can extrude [Multiple Speakers]

Doug Bathauer

And with actually with minor changes, so that’s actually part of what we are doing is instead of one stream, we’re moving it to six.

Unidentified Analyst

Okay thank you.

Doug Bathauer

Alright, we have nine minutes. So, let's do our best here. Jim Finstorm. [Ph]

Unidentified Analyst

Doug and Bart, a quick question about share dilution; clearly our only realistic source of revenue to keep the doors open is share dilution and we have diluted share roughly 17 million a year for the last three years. My question is how many more years can we dilute shares from 16 million to 24 million shares a year, until we’re either -- either where the shares are worth nothing and we’re bankrupt or we have monetized the business and we don’t need to do that anymore?

Doug Bathauer

First of all, I don’t want to dilute Jim, obviously, there is certainly some things that necessitate that. The thing we really have going for us, I mean there is multiple things beyond the technology, but it is the fact that really from an expense standpoint, we don't really have a huge part to get over to reach profitability. So, I don’t -- certainly our plan is not to continue to burn 17 million shares [indiscernible]. The whole goal going back to three years ago when we laid out the plan originally, it is to get this thing into the state where we’re -- current revenues hit profitability and we don’t do that anymore. The best answer I can give.

Unidentified Analyst

Do you see that that’s years away? I mean because in truth, it doesn’t appear -- I mean these conference calls are really -- it sounds really nice and there is whole bunch of carrots out there. But those carrots are going to dangle for years before they come to fruition. I don’t really see -- are we going to have a $3 stock this year, no because we are not going to have the revenue for it. And I doubt we will have $1 million in revenue this year or next year.

Doug Bathauer

That maybe the case but it may not, I can’t really speak to that.

Unidentified Analyst

Well, I am not putting you down. It's [Multiple Speakers] I am just wondering if you have any idea, how long we are going to be doing that.

Doug Bathauer

I do but it's certainly not. The one thing I won't do is step back into something that I did a year ago by putting some expectations out there from a timing standpoint.

Unidentified Analyst

That would be a bad idea.

Doug Bathauer

It would. So, certainly from an internal standpoint, we have a pretty decent idea of where things are headed and kind of what our game plan is. But I have actually made the mistake of being a little bit too transparent in the past. And to answer your question, no, I am not going to do that again. So, but, that’s the feel I can give. But no, the plan is not to continue to do this forever and ever. And there is a plan in place to get to profitability.

Unidentified Analyst

Then my other question is since a lot of us are long term shareholders and we have been waiting for years for this happen to but nothing really happened till you took over three years ago. Would it be smart to actually try to sell the business and sell the battery business separately now while we still have some values than waiting years to have $5 or $6 stock? We could sell each business for $2 per share or $3 a share.

Doug Bathauer

That’s actually a little bit further down the line. And that’s -- I don’t know how far I want to go into this. By taking the battery business and creating a wholly owned sub and monetizing that that’s a relatively quick way to monetize the business. That’s not the only way you can monetize the business, it's not the only application. So, do we think that’s a something we are going to repeat, yes we do. It won't be batteries; it will be some other application down the road. Now would not be the time to sell Integral or ElectriPlast, this would not be the time to do that from a -- how long you’ve been invested Jim?

Unidentified Analyst

Over 10 years.

Doug Bathauer

Yes, I mean you’re going to want to a number commensurate with how long you have been investor I would assume.

Unidentified Analyst

I don’t expect that number anymore.

Doug Bathauer

You’re right. But there is a lot of people self included have an expectation in mind. And for us, it's a little bit -- for me it's a little bit different because I did step to the other side as far as on this side of the business. And my perspective has changed. I mean absolutely I want the stock to go way up and we are happy one day. I absolutely do, but I also want to make sure it's a kind of -- I think the right word here without stepping on it, we want to make sure it’s a well put together profitable company then we can start realizing all those other things too. And the opportunities expand dramatically, which by the way answers your original question. When you create a wholly owned sub for batteries and cell part of that, how much dilution is created? None. But we're very mindful of that going forward and that actually goes back to 12 month or 18 months ago when we started, actually more like 12 months ago started talking about that; so, very mindful of that and entirely on the same page as you.

Unidentified Analyst

Okay, then thank you. Other than I would like to say, if it weren’t for you taking over this company three years ago, I believe this Company would be bankrupt right now. So, thanks so much.

Doug Bathauer

I don’t know. But we're working hard at it -- not going bankrupt, but things are moving, so.

Unidentified Analyst

Well, yes getting things moving because nothing was happening before other than carrots that were dangled and never went anywhere.

Doug Bathauer

All right, I appreciate it Jim. And actually we only have three more minutes. And I do have Eric Daboling on the line with shareholder relations and there's a few questions. There were just a couple of people who’d emailed some questions in. And Eric, we're not going to be able to go through all of them, but if you would just read the first one or two, and then we're going to close the call. Keep that hard close at 7 o'clock.

Eric Daboling

Good afternoon, ladies and gentlemen. The first question is, please address the communication blackouts that seem to exist leaving shareholders to hang in the wind praying for something to happen as opposed to waiting on given timelines to measure performance by.

Doug Bathauer

These aren’t Eric's questions; these are the ones he read from shareholders, just so you understand. I actually feel like we do a decent job in communicating with shareholders. We have a -- it's never enough from a shareholder perspective to understand that, but there's quarterly calls I can tell you there was not one single call that we screened today that's why it's taken 90 minutes. I personally don’t always respond to emails the way I should. It's difficult because any given day I get tons of those. But at the very least, you’re going to get quarterly responses and it's never our intension to keep people hanging in the wind. And if you have questions, we have two people at shareholder relations, Eric Daboling and Scott McArthur; call them, they’ll be more than happy to answer your questions. Okay, one more Eric.

Eric Daboling

Why do you keep paying for these useless media articles that you put in the newsletter?

Doug Bathauer

We don’t -- we don’t pay for any of the media articles we put in the newsletter. As with any company, you want exposure to your product and to your company. And contrary to all of us who have been around Integral and ElectriPlast for a long time, there's maybe 1% of the world that’s ever heard of ElectriPlast. So, I do -- I want our name out there, I want to be in the media. I'll do about any interview that you ask me. But we don’t pay for those. And if you know this, there are almost all in trade publications. And just to give you a quick example, there was one recently in the UL, something rather. And we had multiple inquiries that resulted from that. That is our advertising in many respects. Sorry, I got to cut you off with that.

Eric Daboling

No problem.

Doug Bathauer

And then there was one other question I think that I had sent to you in regards to Doug Mathias, I do want to take that one out.

Eric Daboling

Why was Doug Mathias the right person for our independent Board of Directors? Isn't there a conflict of interest there?

Doug Bathauer

And I did want to address that because a couple of people who’ve asked that. Doug actually is a great person for the Board of Directors, because at the core, we're a plastics company and it's really important to have somebody within the plastics industry on our Board from a relationship standpoint, from having been there before and knowing how things operate within the plastics industry. He is a great one to have in there. And of course he knows the history a little bit, although Jasper hasn’t really been involved with us for the last year that does more than happy to help out. And there really is no conflict because Jasper is not doing the manufacturing for us -- we're doing ourselves. We have no formal -- Jasper hasn’t been paid any money in probably a year or better. So, anyway, I appreciate you reading those questions. I appreciate everybody's time. I appreciate the support, taking the time to be on this call, all your questions. If there are further questions, please give Eric or Scott a shout. Feel free to shoot me an email. Those of you who know, I maybe not be that quick in getting back to you but I eventually will. And we'll talk again, that'll be three months from now, unless business activity dictates something sooner. Thanks again, take care.

Operator

Thank you, ladies and gentlemen. This does conclude our teleconference for today. You may now disconnect your lines at this time. Thank you for participation and have a wonderful day.

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