Question-and-Answer Session
(Operator Instructions) Your first question comes from Robert LeBoyer - Aurora capital.
Robert LeBoyer - Aurora capital
I actually have two questions for you. The first one was on the bad debt write-off related to the South American territories that you mentioned. I was wondering if that affects the licensing or anything going forward other than the accounting for the fiscal year, and second I would like to elaborate on what you mean by the incentive to disrupt after they’ve made investment.
It sounds as if they are almost getting right to the product to keep it off of the market and basically do some anti-competitive would be the right term, but things to prevent this technology from reaching the market when it back I thought this was something that would make each product competitive and they could maintain their position that way?
Michael Krall
Well, I mean, there are several parts there, speaking to the large brands. I can only say that we have personal knowledge that several of the large brands have developed platforms of products, as far as we know they are ready to go through regulatory. We’ve actually seen the first ones pass through regulatory and that get to launch. Their launch plans are basically they’re kept to themselves.
We don’t interface with marketing in these companies. So as far as launch dates, we just have no idea. I think it’s safe to say though with if we’re talking about the large brand companies that sell chlorine-based products for example, they would actually prefer that PURE go away and they be allowed to continue to sell those products the same chlorine-based products forever.
I think, bringing the Richmont group in, I think with this disrupted technology, I think we actually have a chance to push them into releasing these brands or bringing them to market quicker. That’s our strategy and that’s what we intend to employ.
With regard to your question, South America, there are actually several parts and make sure I understood it completely, if it was the bad debt with the Columbian partners, their contract is null and void. There is no extended licensing to that group. There is a new group that is negotiating in Columbia right now for rights and we’ll entertain those as it develops.
With regard to the group in Brazil, Brazil was an interesting example. They have spent significant money, constructed facilities, have equipment in place, we have been to Brazilian to train their people. A fine group of employees working in this facility. They’ve received the two regulatory approvals that they needed to move forward.
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