The entire staff at APS are ardent supporters of Algae and its potential to tremendously benefit mankind. Having said that, in order to make those benefits become a reality and to make possible the development of new uses for algae, we need to put the equipment for algae production into the hands of as many people as possible and let them discover the best applications for algae products.

As with most business ventures, the initial problem is always the money. It doesn't matter that the venture may have a high profit margin. Regardless of how high the profit margin may be, it's the cost of entry that is the barrier. In most cases, you can't start a multi million dollar business for the price of a hamburger. Also, there is a certain level business expertise required just to get a business up and running. We at APS have found a solution to both the "Cost of Entry" barrier and the business expertise requirement.

The price of an APS system has always included the cost of on-site setup of the equipment, the initial start-up of operations and the training for the clients operations personnel. Additionally, APS has developed a cost recovery program to fully recover the cost of the start-up effort, effectively reducing that cost to Zero! This can be explained further by using a hypothetical example.

For our example, lets take a situation where a family wants to have a house built for them and their two children. They have special needs for their family and are going to go to an architect to have a home designed for them. There will be a fee for these architectural design services, but they can be assured of getting a home that will suit them.

They acquire a piece of suitable land and then contract with a builder to construct their house. By contracting with a build that is associated with the architect, they find that their entire cost of the architectural design work will be rebated to them as a reduction in the cost of building the home. This effectively reduces the design cost of their custom home to Zero.

After moving into the new house, they find that they will be expanding their family. The house that they had designed and built will no longer be large enough to meet their needs. They then go back to the same builder and contract for the construction of a larger home. They find that the cost of the original home they had built can be fully applied to the cost of the new home, by trading in the original home to the builder. They end up with exactly the home that will meet their needs well into the future. All of the cost for the original home, as well as its design cost, being effectively reduced to Zero!

APS has a program that will basically do the same thing with an algae farm. We will provide the expertise and service of delivering a business plan, proforma and all of the necessary documentation required to set up an algae company.

Business plans come in many forms and formats, however any business plan needs to clearly address exactly what the business is about, how it will be successful in accomplishing its goals and how it will make a profit. The business plan has a main purpose, which is to facilitate the raising of capital to fund the business. Business plans that are clear, concise and fully understandable to potential investors are the ones most likely to attract capital investment.

A fully developed business plan is important to the project, but even more important, is a well developed proforma that supports the business plan. It is essential to show the economic viability of any project. Some of the things that need to be addressed in the proforma are equipment cost, land cost, installation cost, start-up cost, labor cost, operating expenses, revenue by product category, and profitability.

These basic business documents come in all shapes and formats and vary widely on their level of detail. In the final analysis, the documentation presented to a potential investor should be a comprehensive, fully researched, carefully prepared, and represent the best efforts of those individuals seeking funding. The purpose of these documents is to attract funding. However, there are a number of other business details that are almost always required.

Some of these are, the establishment of a legal entity (the Company), a bank account associated with the entity, the services of a registered agent, legal council and an accountant. While any one of these tasks is not particularly difficult in and of itself, in total this can be a significant amount of work. APS can accomplish not only all of the efforts listed above, but also provide a number of additional services.

APS can tailor a chart of accounts for the company. APS can establish a mailing address and mail forwarding, establish and monitor Corporate email addresses, establish and monitor phone numbers and provide necessary legal resolutions for the corporation's structure and operations. APS can also provide initial oversight of the corporate bank accounts, to include establishing on-line access to the accounts.

Our goal is to provide a cost effective and efficient way to create a successful business venture. As illustrated in our hypothetical example, the cost for all of these set-up services is fully recoverable with the purchase of any APS algae farm.

Once a corporate framework is in place, APS can produce a small PILOT farm which will further assist a client in obtaining ongoing capitalization. This farm would be of minimal configuration, but fully functional. The PILOT farm serves as a transitional step from a small, fully operational algae farm to a standard size farm. However, there are certain restrictions, one of which is that the PILOT farm must be located in the Houston area. The PILOT farm is a "non-standard size" APS farm and is only being made available to assist with efforts to raise the capital required to purchase a standard size farm. Its primary purpose would be the demonstration of a working example of an algae farm to a potential investor.

Standard APS farms are sold in 10 acre increments. As with the start-up cost, the cost of a PILOT farm can be fully recovered by trading in the PILOT farm to APS for full credit of its' purchase price toward the purchase of any standard size APS farm of 10 acres or more.

APS provides turn-key installation and start-up with all of its algae farms, to include the PILOT farm. APS also offers contractual services for the ongoing operation of a farm. APS can also broker any of the products from an algae farm.


Start-up Services

The purpose of all of these efforts is to provide a client with a cost effective and efficient process for attracting funding for a project. This is accomplished by the creation of a complete set of documentation for the proposed project, and by establishing a fully operational corporate support structure along with a corporate bank account. This program offers the advantage of being able to recover the initial outlay for the start-up services by purchasing any APS algae farm.

The PILOT Farm

The cost of the PILOT farm can also be fully recovered. If a standard algae farm of 10 acres or more is subsequently purchased from APS and the PILOT farm is returned to APS, the purchase price of the PILOT farm will be credited toward the purchase price of the standard farm.

This program effectively reduces the initial cost of entry into the Algae industry to Zero.


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