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Message: PyroGenesis Announces 2017 Results: Revenues Increase 38%; Gross Margins Increase to 44%; Gross Profit Increases 258%; EBITDA (Mod.) Improves ...

Tom, 

They do not say the same thing.  They give results for the year and they speak to the event that generated that result.  Our Press Releases are clear on the matter.  As I mentioned before, the annual reports are summaries of these events.

Be that what it may, let me help you work through this.  With a little explanation it should be a lot less complicated than it seems.

First, a demonstration of the DROSRITE™ System uses a smaller “demonstration” unit running at the potential client’s facility for a relatively short time.  It is used to demonstrate its advantages with the exact dross a commercial sized system would use.

Second, so far, all demonstrations have been paid for by the prospective clients

Third, for our discussion we are talking about a Middle Eastern entity, and a Mexican Facility of a North American client.  We also have on going demonstrations in India.

So:

We had a successful demonstration in the ME in 2016 which resulted in the unsolicited request to exclusively market

In 2017 we noted that the activity in the ME is summarized by the potential to sell the equivalent of three (3) systems…there is no longer a mention of an exclusive marketing discussion.  This we now consider to be significant interest.  Real contracts, not marketing proposals.

So : 2016 demo----> request to exclusively market---->potential sales

With respect to the NA client there was a successful demonstration whitch lead to a commercial contract which lead to a reorder.

Successful demonstration means that we successfully demonstrated the ability for the demonstration unit to process the client’s dross at their premises using their dross to their specs. This can be described as “proved out” when in the context of describing demonstration trials.  Proved out can also have different meanings depending on other contexts  (ie when a commercial system is said to be proved out it means it might mean that it met all the acceptance tests).

The meaning of Commercial Acceptance can also have slightly different meanings depending on the context. When used to describe a system it usually is referring to a commercial system, and not a demonstration system, and that the client has “accepted” it; ie signed off on it and will make the last payment with no further obligations on our part.  When used in the context of the market in general, commercial acceptance, might be referring to additional orders beyond the initial commercial order and is then referring to the general acceptance and applicability of the technology. 

Hope that helps,

Peter

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