Lithium-Ion Battery Recycling: American Manganese Is Carving Out A Niche In One Of The World's Fastest-Growing Industries

Summary

• The growth of the Electric Vehicle industry continues to gain momentum as more countries embrace "Green Energy" policies, to help reduce carbon emissions and foster eco-friendly environmental policies.
• While EVs help in solving the problems related to greenhouse gases, they also create a potential environmental hazard, as it relates to disposing of spent Lithium-ion batteries and their components.
• Early developments for Li-ion battery recycling were costly, burdensome, and inefficient. These methods also used a great deal of energy due to the high heat and chemicals required for their extraction process.
• A revolutionary new patented technology, called RecycLiCo, developed by American Manganese, offers a low-cost method that removes 99% of these critical materials, thus allowing them to be reused in the manufacturing of new batteries.
• Next month, a 6,700 square foot RecycLiCo pilot plant is preparing to become the first hydrometallurgical demonstration facility in North America for lithium-ion battery recycling and upcycling.

Petmal/iStock via Getty Images

A $38 Billion Global Opportunity in The Lithium-ion Recycling Industry

Let's start out this article with the primary reason for our bullish opinion on the Lithium-Ion battery recycling industry and American Manganese (OTCQB:AMYZF).

Big News Network

Our History of Finding Mega-Trends & Micro-Caps in the Early Stages

Most of our micro-cap investment ideas begin with the early discovery of a mega-trend; one with a long runway ahead of it, offering many years to build and gain momentum while, at the same time, providing some very exciting growth prospects for micro-cap companies looking to capture market share within that mega-trend.

This criteria provided us with the starting point for discovering our first two 100-baggers, Celsius Holdings, Inc. and Glucose Health, Inc.

Seeking Alpha Article on CELH - Jan. 2015

Seeking Alpha

For Celsius Holdings, (CELH) it was following a well-timed trend of shifting consumer sentiment away from traditional sodas, loaded with unhealthy high-fructose corn syrup, and towards more functional and healthy beverage alternatives.

Screenshot of GLUC Article on Google Blog

Google Blogspot

In the case of Glucose Health, (OTCPK:GLUC) it was the frightening growth in the trend of worldwide obesity (cause) and the accompanying rise in the number of cases of Type-2 diabetes (effect). Following the global diabetes epidemic is of particular interest to us, since our GLUC investment thesis is dependent on that trend continuing higher, or at least leveling off.

Of course, it should be understood that investing very early in a micro-cap company, that is just starting to build a business within a new mega-trend, generally means that they are at the high-risk developmental stage of their lifecycle.

We believe that we are somewhat unique in our approach to investing in two ways. First, we find micro-cap special situations that provide exceptional returns; and second, we have the conviction to take extremely large positions in them.

The Next Mega-Trend and How We Are Participating in its Growth

The next mega trend that we envision, with a very long runway, is the shift from continued emphasis on fossil fuels, as a primary source of energy, to one of finding more environmentally friendly ways of providing power and energy without the accompanying negative impact to the environment.

Some call it the green energy, or alternative energy movement, but whatever you want to call it, this sector of the stock market has attracted billions of dollars in capital.

It includes things like EVs, fuel cell technology, whether it be hydrogen-based or Ethanol-based, SAFs (also known as Sustainable Aviation Fuels) for air travel, and a host of other applications that are being worked on and funded with the aid of the U.S. government, through the awarding of federal research grants and appropriations.

We have made a major equity investment, representing over 5% of the outstanding shares, in a company which we featured last year on Seeking Alpha as our #1 best micro-cap idea for 2021; Blue Biofuels (OTCPK:BIOF).

We believe that given the exponential growth being forecast for the Lithium-ion recycling industry, we needed to have exposure to this mega-trend. Our investment choice in this sector is a Canadian company: American Manganese, Inc.

Electric Vehicles Are The Main Driver Of Demand (no pun intended)

Before we dive into the nuts and bolts of the company, let's first explore the big picture for Lithium-ion recycling.

It's no secret that the Electric Vehicle market continues to grow and expand its environmental footprint, thanks to the modern evolution of Lithium-ion battery technology.

Forecasts made by Bloomberg New Energy Finance, show the increase in Electric Vehicles sales are expected to rise at a rather dramatic rate through the year 2040. By then, Bloomberg NEF estimates that 2/3rds of all passenger vehicle sales will be EVs.

Bloomberg NEF Total EV sales through 2040

AMYZF Investor Presentation 12/2021

It is difficult to measure the volume of Lithium-ion batteries entering the global market but research and consulting company Circular Energy Storage estimated in a 2021 report that the market had grown by 720% since 2009.

Source: Investment Monitor

However, Lithium-ion batteries can be found in many places other than EVs.

They are used in a whole host of today's electronic devices and have broad applications among numerous technologies, some of which include:

• Bluetooth Headsets and Headphones
• Cellular Phones
• Computer Peripherals
• Digital Cameras
• E-Readers & Tablets
• Game Controllers
• Laptops
• Smartwatches
• Smoke/Fire/Carbon Monoxide Detectors
• Uninterrupted Power Supplies & Emergency Backup Units
• Solar Energy Storage
• Wireless Security Cameras and Systems
• Electronic Toys
• Handheld Portable Power Tools
• Small & Large Appliances

Battery technology has evolved to a point where a Lithium-ion battery not only makes it possible for cars to travel longer distances, on a full-charge, but the cost to produce these massive battery packs has come down substantially over the years; over 89% from 2010 through 2020, according to research firm Bloomberg New Energy Finance, and prices are expected to continue declining even further in the years ahead.

These advances in modern battery technology have not come without their share of associated challenges.

These include the somewhat limited availability of many of the rare critical components which go into manufacturing these highly-prized power sources, along with the environmental considerations regarding the safe and secure disposal of Lithium-ion batteries once they have outlived their usefulness and are no longer needed.

Some of these raw materials, used in the production of Li-ion batteries may include lithium, copper, mercury, cadmium, hexavalent chromium Cr6+, nickel, graphite, lead, cobalt, and manganese. A few of these critical materials are not necessarily among earth's most abundant resources.

Here is a breakdown of Li-ion battery components and their associated costs in percentage terms.

Li-ion battery components and their associated costs

AMYZF Investor Presentation 12-2021

Combine that with the ever increasing demand to produce a new supply of Li-ion batteries, and you can imagine how it could place a strain on both battery suppliers and end-users, thus exacerbating what is fast-becoming a growing worldwide global supply chain problem.

The Environmental Impact of Producing Lithium-ion Batteries

Aside from the obvious problem of disposing of the massive amount of spent, Li-ion batteries into landfills, where they can eventually find their way into contaminating the groundwater, there are other, more serious environmental issues when it comes to the mining of critical component materials such as lithium and cobalt, as it pertains to the potential depletion of these natural resources.

Batteries can have negative environmental effects not just at the end of their lives but also long before they are manufactured. As Argonne's Gaines points out, more recycling means less mining of virgin material and less of the associated environmental harm. For example, mining for some battery metals requires processing metal-sulfide ore, which is energy intensive and emits SO_x that can lead to acid rain.

Less reliance on mining for battery materials could also slow the depletion of these raw materials. Gaines and Argonne coworkers studied this issue using computational methods to model how growing battery production could affect the geological reserves of a number of metals through 2050. Acknowledging that these predictions are "complicated and uncertain," the researchers found that world reserves of lithium and nickel are adequate to sustain rapid growth of battery production. But battery manufacturing could decrease global cobalt reserves by more than 10%.

Source: Chemical & Engineering News

There also are other environmental factors to consider when it comes to the mining of critical components and the materials used to build Li-ion batteries.

According to a report by Friends of the Earth, lithium extraction inevitably harms the soil and causes air contamination. In Argentina's Salar de Hombre Muerto, locals claim that lithium operations have contaminated streams used by humans and livestock, and for crop irrigation. In Chile, there have been clashes between mining companies and local communities, who say that lithium mining is leaving the landscape marred by mountains of discarded salt and canals filled with contaminated water with an unnatural blue hue.

Two other key ingredients, cobalt and nickel, are more in danger of creating a bottleneck in the move towards electric vehicles, and at a potentially huge environmental cost.

Unlike most metals, which are not toxic when they're pulled from the ground as metal ores, cobalt is "uniquely terrible," according to Gleb Yushin, chief technical officer and founder of battery materials company Sila Nanotechnologies.

Source: Wired Magazine

The soaring popularity of electric vehicles is generating enormous numbers of spent lithium-ion batteries and pushing manufacturers to make new ones. Industry analysts predict that more than 10 million metric tons of these batteries will reach the end of their service life by 2030. Due to technical and economic barriers, less than 5% of them are recycled today.

Source: Chemical & Engineering News

There are also humanitarian issues associated with the mining of certain materials, and the associated labor challenges.

A series of stories published in the Washington Post focused attention on the humanitarian and environmental fallout from the manufacturing of lithium-ion batteries. They found links to human rights abuses and environmental pollution in cobalt mines in the Congo, the negative effects of lithium mining on indigenous communities near lithium deposits in South America, and tracking the environmental pollution coming from graphite factories in China.

This is where the recycling of these critical components becomes so vitally important; not only for the reclamation of these natural resources, for use in the future manufacturing of new batteries, but also as a way of providing solutions towards mitigating many of the environmental and humanitarian issues facing the world's mining consortiums.

The Scope of Planned Battery Production Globally is Staggering

The number of planned global giga-factories to produce Lithium-ion batteries, in order meet the projected industrial and consumer demand by year 2025, is shown on the map below. There is over 800 giga-watts of planned production on a worldwide scale, and all of these factories are going to need to obtain the critical materials that go into the assembly of these Li-ion batteries.

Planned global battery production by 2025

AMYZF Investor Presentation - 12/2021

At some point, given the growth projections for EV passenger vehicle sales, and the number of Lithium-ion batteries that will need to be produced for OEMs (Original Equipment Manufacturers) to power those vehicles, we anticipate that the demand for manufacturing and production of these Li-ion power sources will rise exponentially.

The giga-factory map above, which shows the planned global Li-ion battery production going out to 2025, should give you some idea as to the magnitude and strength of the expected demand, not only for the batteries themselves, as finished products, but also for the materials that go into the assembly of these units.

Remember, also, that as older batteries outlive their usefulness, and begin to deteriorate, they will need to be replaced with fresh new batteries.

But what happens to these older, spent Lithium-ion power packs?

The obvious answer is that they can be recycled, the critical materials extracted, and re-used to produce new Li-ion battery inventory for OEMs.

American Manganese's RecycLiCo™ Process is Poised to Capture a Large Share of the Market

Just as there are different types of batteries, that use different materials in their production, there are also different methods and processes for recycling.

We are looking for the processing method that will result in the lowest cost and most efficient way of recycling these Li-ion batteries and their critical components.

Depending on battery chemistry, the lithium-manganese oxide segment held highest position in lithium-ion battery recycling market share of about 32.2% in 2020, and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for lithium-manganese oxide battery from applications including electricity, gas & water meters, fire & smoke alarms, security devices, and other energy storage applications. In addition, it possesses advantages such as long-term reliability, high life span, high temperature handling capacity and others is anticipated to fuel the growth of the market during the analyzed time frame.

Source: Big News Network

On the basis of recycling process, the hydrometallurgical process segment held the largest share, in terms of revenue, and is expected to grow at a CAGR of 39.7%. This is attributed to advantages associated with hydrometallurgical recycling process such as treatment of low-grade materials, easy control of waste, low energy consumption, and lithium & aluminum recyclability compared to other battery recycling processes.

Source: Big News Network

In 2020, the lithium-manganese oxide segment accounted for majority of share of the global lithium-ion battery recycling market, and is expected to maintain its lead during the forecast period. In 2020, the electronics segment accounted for about 67.5%, and is expected to maintain its dominance till the end of the forecast period. The hydrometallurgical process segment accounted for 64.8% in 2020, and is anticipated to grow at a rate of 39.7% in terms of revenue, increasing its share in the global lithium-ion battery recycling market. Electric vehicle is the fastest-growing source segment in the lithium-ion battery recycling market, and is expected to grow at a CAGR of 46.1%.Asia-Pacific is expected to grow at the fastest rate, registering a CAGR of 40.8% during the lithium-ion battery recycling forecast period, In 2020, Europe dominated the global lithium-ion battery recycling market with more than 35.7% of the market share, in terms of revenue.

Source: Big News Network

The Three Primary Reasons We Are Bullish On American Manganese

Our favorite company for investing in the promising future of Lithium-ion battery recycling is American Manganese.

We have chosen AMYZF as our way to play this mega-trend for three primary reasons:

1. The company's patented RecycLiCo™ method of Li-ion battery recycling offers the potential advantage of being able to take the current traditional lithium-ion battery supply chain platform and transform it into one, simple closed-loop process.

Complex & Linear Battery Supply Chain

AMYZF Investor Presentation 12/2021

American Manganese's patent portfolio, represents a formidable challenge to other companies, who are looking to compete with AMYZF. The patents create a global moat around the company's intellectual property.

Most recently, in early November of 2021, the company received a Notice of Allowance from the Canadian patent office for approval of the company's proprietary RecycLiCo™ Lithium-ion battery recycling process.

This Canadian patent now joins patents already issued in the United States, Korea, Japan and India. The company has also submitted applications, which are currently pending, for patent approval in China, the EU and Australia.

It took a total of only 81 days from the initial filing date with the USPTO to approve AMYZF's patent application on June 5, 2019.

We should note that American Manganese announced in May of last year that Dan McGroarty, a member of the company's Advisory Board, was appointed as one of only three private-sector members of the U.S. Department of Energy's Critical Materials Institute Advisory Board.

2. The RecycLiCo™ process offers the flexibility to adjust the ratio of cathode metals in the pregnant leach solution to the desired composition.

Today's lithium-ion battery cathode chemistries typically contain less concentrations of cobalt and more nickel or manganese materials. This ratio does reflect the older cathode chemistries found in previous generation Lithium-ion batteries.

The RecycLiCo™ process, offers the flexibility to adjust this concentration ratio of the leached metals in older batteries, thus allowing the direct up-cycling of older cathode chemistries, into today's more modern electric vehicle cathode chemistries.

3. Competing recycling technologies may require multiple, additional refining steps before they can produce cathode materials. These may include complex processing and purification steps, large consumption or reactants and energy, extensive liquid and waste production and low lithium recovery resulting in low-value and intermediate-grade products.

Hydrometallurgy Advantages

AMYZF Investor Presentation 12/2021

The tremendous opportunity that lies in front of the Lithium-ion recycling industry is plain to see. The question now becomes, how does American Manganese take advantage of that opportunity?

The Technical Picture Comes Into Focus

American Manganese and its predecessor company, Rocher Deboule Minerals Corporation, have been around for over 10 years.

A 10-yr Chart of AMYZF

Fidelity Active Trader Pro

As you can see from the chart, like most micro-caps, AMYZF plodded along, without much fanfare until late 2020, and early 2021.

In late December 2020, the price of AMYZF took off in price, with a massive increase in daily trading volume.

The company indicated that they were unaware of any material change that would suddenly attract investors' attention. However, experienced traders and investors know that a volume spike and a huge increase in price doesn't just happen without a good reason.

The unusually large volume and the subsequent increase in price continued until February 17, 2021.

A 1-yr. chart of AMYZY

Fidelity Active Trade Pro

A few days ago, we wrote a piece on our Google blog which discussed the current technical picture, along with the recent development of a bullish Cup and Handle pattern.

The Road to Commercialization and Related Business Opportunities

An investor presentation found on the American Manganese website provides a good overview of the growing Lithium-ion battery market, the company, the recycling business, the patented RecycLiCo™ process and, most importantly, the revenue opportunities that are in front of this decade old company.

We have reproduced a few of those pages already in this article. We now ask for your indulgence in allowing us to use a few more of them to discuss the company's future prospects regarding the commercialization of the RecycLiCo™ process and the business opportunities that await AMYZF.

AMYZF - The Road to Commercialization

AMYZF - Investor Presentation 12/2021

In terms of American Manganese's commercialization path, the bulk of the R&D to develop and refine the RecycLiCo™ process has already taken place, resulting in multiple global patents issued by the United States, Korea, Japan, Canada, China and India.

Preliminary testing results for the company's patented RecycLiCo™ process have demonstrated the successful production of lithium sulfate (Li₂SO₄) with 99.99% purity.

More importantly, these results were validated by an independent third party, a company that is also an international lithium producer.

The company's 6,700 square foot pilot program demonstration plant is nearing its anticipated February 2022 operational start-up date.

During calendar year 2021, the company successfully raised $C20 million in capital through a private placement. This capital raise resulted in the company issuing up to 20,000,000 additional common shares, at a price of $C1.00 along with warrants exercisable at a price of $C1.25. The company also received approximately $C6,000,000 from the exercise of previously issued warrants and options.

The company now sports a balance sheet with over $C23,000,000 in cash & cash equivalents, and a mere $C180,595 in current labilities. Looking at the balance sheet, and doing the math, the company has a current ratio of over 127:1.

AMYZF Balance Sheet as of 10/31/2021

OTC Markets

As we indicated earlier in this report, AMYZF is a developmental-stage company and as such is currently not generating any revenues.

The capital structure of the company is fairly straightforward with an outstanding share count of 244,894,030 and a public float of 178,167,823 shares. These figures were taken from the OTC Markets website and are Transfer Agent verified.

The company trades on the QB tier of the Over-The-Counter market; having uplisted on March 8, 2021.

Again, we would point out that American Manganese has no outstanding debt obligations, and no toxic financing for shareholders to be concerned about.

That brings us to our final discussion of the business opportunities for AMYZF to begin generating revenues.

We already know that based on projections, the Lithium-ion recycling industry is expected to grow at a CAGR (Compound Annual Growth Rate) of 36.0% through the year 2030.

Given that phenomenal growth rate, it is projected that the Lithium-ion recycling industry will cross the $38.21 billion mark in sales that same year.

Now, we're not going to put out a bunch of hyperbole surrounding potential revenue numbers, or extrapolate to an unreasonable conclusion, but if American Manganese can capture just one-percent of that $38 billion TAM (Total Addressable Market) we believe that AMYZF shareholders would be extremely happy.

There are a number of opportunities that the company has for future revenue generation. They include a possible JV (Joint Venture) arrangement with another industry player, licensing programs, royalty-based revenue options and revenue sharing arrangements based on a percentage split between AMYZF and any collaborator or partner.

AMYZF's Circular Supply Chain Business Opportunities

AMYZF - Investor Presentation 12/2021

Understanding The Potential Risks

As excited as we are about the investment opportunity in the long-term trend of the Lithium-ion battery recycling industry, we would be remiss if we did not point out that there are also a number of risks to consider.

Some of these risks are specific to AMYZF, while others apply to micro-cap investing in general.

As it relates to the risks surrounding American Manganese, we see the primary risks as falling into three categories: 1.) the competitive landscape, 2.) the future capital needs of the company, and 3.) the path to potential revenues and eventual profits.

There can be no doubt that, in an industry with a CAGR (Compound Annual Growth Rate) through 2030 projected to top 38% per year, and a TAM (Total Addressable Market) of similar magnitude, there will be a growing number of new players that will want to grab a piece of the pie, and stake a claim to that enormous potential market share.

Some of these new entrants, seeking to compete for market share, will have a bigger, and perhaps better war chest in terms of capital and other resources. What they will not have is the time advantage the AMYZF currently enjoys in terms of developing a patented, proven technology for Li-ion battery recycling.

Perhaps, to dispense with all of the R&D efforts and the accompanying costs and time required, they would simply find it easier to acquire a company that already has a history of operating within the industry.

While American Manganese did raise $C20 million of capital in 2021, additional financing activities may be required in the future. The company did file a base shelf prospectus to cover any future financing needs in July of 2021. Whether the company could do a future capital raise on favorable terms is an unknown risk, along with the accompanying dilutive effect that such financing would have on the existing capital structure.

As we have already stated in this article, AMYZF is currently a developmental-stage company and does not, at the present time, generate any revenues. Furthermore, there can be no assurances that they will be able to generate revenues and/or become profitable in the future.

There are other general risks of micro-cap investing which may include, but are not limited to, trading outside of a listed exchange, potential liquidity issues, dealing with penny-stock rules, lack of margin eligibility, a possible absence of transparency regarding BBBO quotes, a limited number of Market Makers willing to provide depth to the order book and failure to comply with SEC amended Rule 15c2-11, which went into effect at the end of September in 2021.

We encourage individuals to familiarize themselves with these new rules and only invest what they can afford to lose, up to a maximum of 100% of their investment.

Summary and Some Final Thoughts

In summary, we believe that the mega-trend of Lithium-ion battery recycling offers many advantages over mining for new critical materials and natural resources, not the least of which is the development of a closed-loop supply chain.

Other advantages may include potential cost savings, greater control over inventories, an environmentally friendly alternative to mining, safe disposal of end-of-life (spent) Li-ion batteries and a reduced need for the transportation to and from the various points along the supply chain.

We started this report by discussing our research process for finding value in the micro-cap investing universe. Our success with finding two one-hundred baggers, Celsius Holdings, Inc. and Glucose Health, proves to us that it is definitely worth the time and effort that we put into our work.

We hope that many of our followers on Seeking Alpha agree with us.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMYZF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: We are not responsible for updating this article, or our opinion on any of the stock(s) that are mentioned in our articles. We are not in the business of giving investment advice and ask that readers refrain from asking us for it. Please do your own due diligence before investing. We are not responsible for any actions that you take based on the opinions that we express on Seeking Alpha, or our Google blog. Please remember that this article reflects our current opinion on AMYZF. It is based on information that was publicly available at the time that we authored this article. Additional public information might have been available but was not brought to our attention at the time we began preparing this report. We provide sources and links to information that we include in our reports but take no responsibility for the accuracy of their content. An investor should consider that new information may become available regarding the company's business activities, financial condition, or corporate governance. It is the responsibility of each investor to make sure that they stay abreast of any new developments that could have an impact, either negative or positive, on their investment. AMYZF may need to raise additional capital in the future, to continue with its strategic business plan. There, however, can be no assurance that they will be successful in obtaining such financing, on favorable terms. If the company is successful in raising capital, it could result in dilution to existing shareholders, by increasing the total number of common shares outstanding. The company's financials are available to investors through publication in the company's quarterly and annual reports and SEC filings. We strongly encourage investors to read these financial statements and always take them into consideration when deciding whether to invest in the equity securities of any company. Altitrade Partners is not an investment advisory service and is not a registered investment advisor or broker/dealer. Investors should base any buy and sell decisions on their own due diligence and preferably with the advice of their own financial, tax and investment advisors. The views and opinions expressed in this report are purely those of Altitrade Partners. No views or opinions should be misconstrued as advice as to whether, or not, to buy or sell any securities. Altitrade Partners does not offer investment advice, or investment services, and is not compensated to provide opinions, write research reports, or to comment on news related to any publicly traded company. The recently amended SEC policy, known as SEC Rule 15c2-11, which became effective on September 30, 2021, has caused some OTC companies to be effectively downgraded to what is commonly known as the "Expert Market" or grey sheets. On this tier of the OTC markets, there are no market-makers quoting a bid and offer, and as a result market liquidity is virtually non-existent. Investors should be aware that this new rule has added another additional layer of risk when it comes to investing in these small Over-The-Counter companies. Investors should make it a point to read and familiarize themselves with these new SEC rules and regulations, to understand the potential adverse consequences that they present to investors in micro-cap securities and penny stocks. Each investor is responsible for making his or her own investment decisions, with the assistance of a licensed financial advisor, investment advisor or tax professional to determine whether an investment is suitable based on their personal financial goals, circumstances, and risk-profile. Readers must understand and acknowledge that there is a very high degree of risk involved in buying and selling securities, especially micro-cap stocks, and any investment decision should be based on a thorough analysis of a company, its business, its financial condition, and the securities of its capital structure. No investment decision should not be based solely on what is read in a research report, viewed on a web site, or seen on the Internet. The principals of Altitrade Partners may hold positions in the equity securities of companies or industries discussed in our articles and reports, including, but not limited to common stock, preferred stock, convertible debt, as well as listed put and call options. Any such positions are disclosed to readers, so that they may be aware of any potential conflicts of interest because of the author’s position (long or short) in a security which they are writing about. Understand that such disclosure is made at the time that the opinion is published and is subject to change. Such changes may include increasing or decreasing the number of shares held, increasing, or decreasing the number of options which may be exercised into common stock, along with hedging strategies designed around taking an offsetting position in the same security, or convertible securities, to manage risk. The information contained in this article may include or incorporate by reference “forward looking statements” including certain information with respect to business results, plans and strategies of publicly traded companies. For this purpose, any statements incorporated by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting or forgoing the words “should”, “could”, “may” “believe”, “anticipate”, “plan”, “expect”, “project” and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties, and assumptions about each company, economic and market factors in industries in which the companies do business, among other factors. These statements are in no way guarantees of future performance, and actual events, along with results, may differ materially from those expressed or forecasted by the companies due to many factors. The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company’s actual results of operation. Factors that could cause actual results to differ include the size and growth of the market for the company’s products, the company’s ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, pricing pressures, etc. Investing in securities is speculative and carries risk. Micro-cap stocks carry additional risks beyond those of higher classes of securities including, but not limited to trading outside of a listed exchange, potential liquidity issues, dealing with penny-stock rules, lack of margin eligibility, a possible absence of transparency regarding BBBO quotes, a limited number of Market Makers willing to provide depth to the order book, potential issues regarding financing activities, inadequate capital to execute on the company’s business plan, going concern caveats, and the potential inability to compete with larger companies due to limited financial and personnel resources. Please invest responsibly. We encourage individuals to only invest what they can afford to lose, up to a maximum of 100% of their investment.