Dear FTW101,

Thank-you for posting.

Regretfully I cannot go into more detail than I have with respect to torch deals without coming out with a press release.  However, at the risk of confusing you more, I will try and answer your questions in red below the context of what we have already press released.

At first, it was anticipated that contract discussions with client A would be completed by the end of August. I understand that you received a draft contract from the client shortly after this. Shortly afterwards, you press released an update that calmed the worried investor sentiment and expressed that you anticipated closing 1-2 torch deals within 3 months. Finally we recently received the latest update which completely changed the outlook on these deals

I am not sure I would agree with you. I am not sure my reading of the update you refer to would have me conclude that the outlook on these deals completely changed.  We have been extremely clear as to what we want from these negotiations and why. I have said it many times before; we are here for the long term. We build and operate the company with that in mind. We do not play for a press release with a view of leaving shortly after.  That’s where we and some investors have different objectives.  My goal is to build an empire that will last, not one to sell out of.

 Can you provide an update on how the new leasing model might affect the ongoing contract negotiations?

Let me answer your question with a question: How many negotiations have you been in where one party will propose something to slow down a deal (unless in that weird one off deal that was the objective)? Now I am not inferring that leasing has anything to do with current negotiations. I am just asking because that seems to be the current thinking…that this leasing concept is bad in any way. It is simply a financing mechanism which should increase the pool of potential cleintes and speed up discussions with those that may not have the cap budget yet allocated.

And I have been very clear that leasing by a third party does not affect how we account for the revenues.  We account for them as we would in the past.

 Are you still expecting to close 1-2 torch deals by mid December? Because as of right now it seems that Robert Mcwhirter was more accurate in his short term outlook.

I am not sure the two statements are contradictory, and to answer your question, I am still confident we will do as we said we would do.

However, I am not sure the market fully understands the impact of what our press releases are announcing.  The market size has been discussed and the fact that we have patent protection has been reviewed as well.  What we have are multiple, independent clients, all coming to the same conclusions from independent directions, roughly all at the same time, and all with the view of replacing fossil fuel burners with plasma torches.  Each step we take closer to that goal is significant.  Any order would be a significant step towards realizing the goal of addressing that market with our patented technology.

Also, in the below interview with Proactive around the 4 minute mark, Christine asks if you expect the share price to continue to rise and you suggested that it should continue if you are doing your job correctly. I would like to know if your views have changed since this interview seeing as the stock price is down 30% since then. Are things moving slower than you had originally expected? If not then can you provide your insight as to why the stock price performance has not matched your expectation.

I am not allowed to talk about share price, give insight on it, where it is, where it is going etc. etc. …  and I will not… however, for the record, technically, she did not ask me if  the stock would rise…she noted that the stock price had consolidated at its high and asked if I expected THAT to continue.  However, that aside, I get your point. In a back handed way you might be asking me if I think I am doing my job. Are things moving slower than expected? You cannot be serious, can you? We have surpassed any expectation any reasonable person could have had for us a mere 9 months ago:

Backlog increased from $7MM to $40MM,  

we are profitable,

no debt,

cashed up,

stock up over 1,750% since its year low posted at the end of March,

about to uplist on the back of an oversubscribed bought deal, and

a nice solid series of negotiations going on for torches,

all with Covid-19 in the background? 

Are you serious? Do I think things are going slow? What drugs are you taking that you think this is slow? Sorry for taking a tone with you but give a guy a break and lay off that crack pipe.  This is not slow my man.  This is warp speed ! ...sorry to disappoint.

(tone aside) Hope that Helps,

Peter