Question 1

Thank you for what you do for the environment, although a small part for now. What are your current revenue streams, and how is this raise going to increase or expand that stream? Are you also considering copying and pasting the same model into different counties and states? W...

Accepted Answer

Hi Stephen, thank you for your question. To answer simply, yes, this raise will help to increase and expand our revenue streams. The main way we'll accomplish that is through compost production. Right now our revenue comes almost solely from collections and hauling and we pay other companies to process the material into the finished product, compost. Through this raise, we'll be purchasing equipment and hiring staff to build and operate our own compost facilities. In this way, we'll be turnin...

Question 2

I very much look forward to your growth Blue Earth Compost, as this is an area that we can fairly easily do much better. You obviously have a head-start in the food scrap composting space, however do have other technologies or business practices that would be hard/not possible...

Accepted Answer

Hi William, Part of the funds for this raise will to R&D tech and processes in the compost hauling and processing industry to provide us more of a competitive advantage in this market. Our advantage right now is reputation and the value of our brand. We also have extensive relationships in our market. Some of the clearest routes for an investor ROI are through M&A or a stock buy back.

Question 3

What percentage of your revenue is from subscriptions versus selling compost? How does that compare to incumbent services like Waste Management?

Accepted Answer

Right now subscription revenue is about 40%, contract revenue is 55% and compost sales and other revenue is about 5%. I don't know how that compares to WM.

Question 4

Hello, I want to invest but I haven't seen either the financials (burn rate, etc..) or questions from potential investors answered here.... When that happens, I will revisit a possible investment. Best regards, Miguel C

Accepted Answer

Hi Miguel! Our financials are going to be independently audited and that's why they are not available to be seen. They'll be available before the close of the campaign. However, we've been profitable for 2+ years. We made $800K last year and are projecting $1.25M in revenue this year.

Question 5

Hi Samuel, I really like the green idea, it's environmental friendly. However, I noticed that you don't have process equipment yet, which raises a question, why wouldn't those processing facility absorb your business? I guess, the main questions here are: how do you profit by ...

Accepted Answer

Hi Chen, thanks for the question. Here's my responses: 1. Why wouldn't those processing facility absorb your business? If by absorb you mean "take" competitively, we have found that the processors in our region have little to no interest to be in the hauling industry and are happier to work with us than against us. If you by absorb you mean M&A, this could be a possible exit strategy and payout event for our investors. 2. How do you profit through scaling? We are scaling by growing our cu...

Blue Earth Compost, Inc.

Blue Earth Compost is changing the way that people think about food waste

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Blue Earth Compost, Inc.

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