$33.2M Valuation l Priced Round
$2.50 per share. Non-Voting Preferred Equity with Qualified Dividend. Early Bird Bonus Shares: 10% bonus shares - first $500,000 raised or any higher amount raised in the first 10 Days of the offering
IX Water is helping solve the global water crisis. IX Water machines treat unconventional and waste waters from groundwater, industry, mining, landfills, and hydrocarbon recovery. This provides more water exactly where it is needed, and helps industry dramatically lower the cost of dealing with their wastewater.
We Sell Water Treatment MachinesEach year trillions of gallons of water go to waste because it’s too contaminated to be used for much of anything. This includes water generated from oil & gas wells, as well as wastewater from manufacturing, industry, refining, and urban runoff. Leveraging tech licensed from the New Mexico Institute of Mining and Technology, Los Alamos National Laboratory, and the University of Texas, we manufacture machines to treat that wastewater at a fraction of the cost of other methods—making recycling industrial wastewater a reality.
Our competitive advantage is a set of cold reactors that utilize a series of unique filtration media that can be recharged in the field and used hundreds of times before replacing the media. This saves our users 50% or more on the cost of dealing with their wastewater.
We Treat & Recycle Water as a ServiceIn addition to building and selling IX Water Machines, we’re forming a new service division to treat wastewater at the source. IX Water Reclamation is launching in Kern County, California—home to one of the biggest agricultural centers on the planet, but also suffering through the worst drought in 1,200 years.
California produces roughly one third of America's vegetables and two thirds of the country's fruits and nuts. The central valley alone produces more than 8% of America's entire agricultural output by value and produces roughly a quarter of the nation's supply of food. More than 250 different kinds of crops are grown by farmers in California
Oil & Gas, manufacturing, and industry produces tons of unusable water, but up until now it has been expensive to treat & difficult to dispose of.
The process of mining for oil and gas leaves behind incredible amounts of water. This water, due to its contamination with toxic pollutants such as heavy metals, hydrocarbons, and sulfur compounds, is useless and presents companies with the expensive and energy-intensive task of disposing of the wastewater.
As much as 99% of what an oil well brings to the surface is this "produced water."
Manufacturing and industrial processes also generate similarly contaminated wastewater.
Current methods of disposal include deep well injections and open pit evaporation, both of which are very expensive, land intensive, and can cause environmental damage, as well as other costly and energy-intensive approaches.
Traditional industrial water evaporation pit, used to separate sludge from water.
IX Water has created a way to recycle this contaminated water.
We've developed machinery to treat water that is at least 50% less expensive than other methods or of disposal. With the enormous amount of industrial wastewater in front of us, we believe our cost-effective and environmentally friendly solution will be a market winner. On top of all of this... we're hoping to keep this leg up because our technology is already patented.
$280 billion annual market opportunity
In 2021, the global oil & gas and industrial process community generated a $280 billion per year problem: their wastewater.
Patents acquired and first purchases received!
The technology was invented by scientists and engineers at the world-renowned Los Alamos National Laboratory in a unique collaboration with the University of Texas and New Mexico Tech, and then productized and commercially tested by the IX-Force.
After acquiring our patents, we spent years designing, developing, and testing our commercial products.
We’ve won multiple grants and competitions in the startup and produced water worlds, and after validating our product with industry, we began our commercial sales program in the summer of 2019.
Since then we’ve received initial orders, begun the services division, and made strides in the industrial and oil and gas spaces by landing key partners in the industry.
IX Water portable demonstration units (1/5th scale)
We make recycling produced water both economically and environmentally feasible
We manufacture and sell multiple products predicated on our proprietary technology. Our systems remove 99.81% of all contaminants from water (meeting US EPA, European Union, and Chinese regulations standards) at less than 50% of the cost of traditional treatment methods — all the while minimizing waste.
The proof is plain to see
Below is a chart showing a typical IX Water pre and post treatment analysis.IX Water does the job!
Sale of Treatment MachinesGas and Oil, manufacturing, and industrial process companies buy our machines
Each one of our modules costs around $450,000, and can be connected in a system with up to 25 modules — meaning sales can range up to $12 million per order.
We also generate revenue through the sale of replacement products and maintenance of our machines.
Our new service division is starting out in Bakersfield, California to service Kern County.
IX Water Reclamation is created to meet the following objectives:
· Operate IX Water wastewater treatment systems as a service for industry and charge for industrial wastewater treatment on a volume basis.
· Provide a showcase for IX Water wastewater treatment systems.
· Provide immediate and on-going revenue to the Company.
· Enable a new source of water for agriculture.
· Provide a model for how industrial wastewater can be treated and deployed to water stressed regions around the world.
Initial Location for IX Water Reclamation
The initial location of the Reclamation division will be in Bakersfield, California to serve the Southern Central (San Joaquin) Valley, including Kern County.
Kern County is home to $8 billion of annual agricultural production and 119 million bbl (42 gallon barrels) of oil and 129 billion CF (cubic feet) of gas annually from some 47,750 wells. The oil wells in the region are in many cases integrated within farm acreage or in a nearby field, providing a natural place to discharge treated oil & gas produced water.
Tens of thousands acres of farmland amidst tens of thousands of water producing oil wells.
Management has taken a conservative approach to our operating plan.
Given the very large market for our products, sales projections take into account many factors. This includes the size of the market, geographic proximity of targeted customers, the number of IX Water machines that can be built using existing our resources, supply chain, and sub-contracting capabilities, the number of units that can be reasonably sold per salesperson per year, and the “contact to contract” steps and time required.
The use of authorized representatives, marketing partners, as well as formal manufacturers' reps provides IX Water with a “force multiplier” for its internal sales team and marketing efforts, greatly expanding our ability to sell our products world-wide.
Overhead may appear low, but that is because Management includes the cost of manufacturing labor in Cost of Goods Sold (COGS) given our “just in time” manufacturing model.
IX Water product manufacturing relies on many out-sourced components. These include reactor casks, pumps, piping, as well as control and monitoring software and hardware. The Company has a supply chain where at least two sources within each geographic market can supply our components and raw materials.
Adequate cash flow is achieved because industrial customers are used to paying 50% of the cost of such products as a down payment, and international customers normally provide a letter of credit through an internationally recognized bank with which IX Water’s bank can determine credit-worthiness and milestone-based payments.
Below is the updated four-year projected business plan, commencing 1 December, 2022 (see the section of Offering Memorandum included in the Form C titled "The Company and its Business: Updated Projected Operating Plan").
**For the above chart, please see the forward-looking statements disclosure in Part I of Addendum 1 to the Offering Memorandum included in the Company's Form C.
We reduce the complexity of traditional water treatment while lowering the cost
We believe that traditional water and sewage treatment methods just don’t cut it when it comes to industrial wastewater. Large construction and service firms have been trying to solve the problem of oil & gas produced water for years, and in our opinion they have failed. The reason these other companies have failed in our view is because they bring to bear traditional water treatment tech — lots of land, chemicals, additives, and old fashioned methods. In fact, some of our competitors literally bid plant cost based on how much concrete they can pour, and how many of their people they can sell to operate the plant.
IX Water is different. Our machines provide real-time treatment in a modular fashion, that integrates with existing equipment, are easily scaled, and can be operated by a single person.
Our systems are much cheaper to buy and operate, and leave a dramatically less amount of waste than our competitors.
We Use our Own Products
In addition to IX Water Reclamation, as part of our commercial testing and product refinement, we processed millions of gallons of water at a facility near Denver. The water intake was the nastiest produced and industrial water imaginable.
IX Water machines worked at such a high efficiency and efficacy that we secured a permit to put the treated water back into the South Platte River Basin.
Once the industry catches wind of us, there won’t be another choice
Since we believe our product to be superior to our competitors on both the grounds of environmental sustainability and economic efficiency, we believe we will become the default choice for produced water treatment of companies within the gas and oil extraction industry.
We know how to solve big problems
Our team has over 25 years of success commercializing Department of Energy innovations.
We are a group of innovators with experience commercializing solutions for some of the world’s most intimidating problems, such as pandemic modeling and safer nuclear reactors.
The original lead inventor of our tech, Dr. Jeri Sullivan, remains on board as well. Dr. Sullivan is a giant in the wastewater management field, and her expertise and experience are considered world class.
Join us in the marriage between economic efficiency and environmental sustainability
We know that the best way to create real change in the way our private industries handle the environment is to make the sustainable solution the only economically viable choice. That is what we have done with IX Water.
You should invest in IX Water if you believe that we need to protect our planet, and one way to do that is through innovative and economically feasible market solutions.
Director, Executive Chairman & Chief Executive Officer
John R. (Grizz) Deal has nearly thirty years of experience in technology commercialization, tech-based startups, fast-growing ventures, and product development.
Grizz was CEO and a co-founder of Hyperion Power Generation, a Los Alamos National Laboratory (LANL) spinout developing a Small Modular Reactor (SMR). He has also served as the chief marketing officer for Space Imaging and was the founder and CEO of LizardTech, one of the more successful LANL spinouts. Additionally, Grizz has served as Entrepreneur in Residence for the U.S. Department of Energy (DOE) National Nuclear Security Administration (NNSA) at Technology Ventures Corporation and as Visiting entrepreneur at Los Alamos National Laboratory. Grizz founded seven firms based on U.S. DOE technologies and holds graduate and undergraduate science degrees in geography from Texas A&M University.
Grizz is on the Board of the Riga Innovation Centre (RIC) in Latvia, the former Product Development Sensei for GVA Launch Gurus in Russia and Kazakhstan, a former adjunct faculty member at the Moscow School of Management Skolkovo, a member of the Texas A&M University College of Geosciences Advisory Council, a Mentor at the University of Northern Colorado BizHub Collaborative, and a Steering Committee member of the JeffCo Energy Action Project.
An Eagle Scout, Grizz spent nine summers working at Philmont Scout Ranch in Northern New Mexico as a guide and conservationist.
Grizz is a frequent speaker and writer on energy technology and policy, product development, starting and growing advanced technology-based ventures, and issues in raising capital for such ventures.
Grizz is full time with IX Water.
Director & Chief Financial Officer
Randall Wilson is one of two key founders and was Chief Financial Officer/Chief Operating Officer of Technology Ventures Corporation (TVC), a private foundation funded by Lockheed Martin Corporation to commercialize national laboratory-developed technologies. He was instrumental in growing the business from a single-site, five-person enterprise into a multi-site, multi-funded operation with more than 40 employees. He served in this capacity from 1993 to 2011 and remains active in the technology commercialization community.
In addition to his work at IX Power, Mr. Wilson serves as the CFO and Secretary/Treasurer of the Sandia Science & Technology Park Development Corporation, chair of the Sandia Science & Technology Park Tenant Association, and Treasurer of the New Mexico Angels (a private investment group).
Mr. Wilson was named a Top Performing CFO by the NM Business Weekly and served on New Mexico Governor Gary Johnson’s Business Advisory Council. A graduate of Emory University, he also holds a Master’s in Business Administration from Rollins College, and has completed numerous C-level professional development courses.
Randy works mostly at IX Water until Company development requires his full-time attention.
Vice President and Chief Marketing Officer
Ms. Deal-Blackwell serves as the Vice President of Marketing for IX Power Clean Water and as the CEO of the IX Power Foundation. The sibling Deals have worked together as founders and executives of several firms over the last 20 years.
Before IX Power, Deborah co-founded Hyperion Power Generation. She served as the V.P. of Marketing & Public Relations for the company and as the top executive in Hyperion’s Washington, D.C. office directed interaction with the U.S. Congress and all other federal agencies. Prior to Hyperion, she served as the CEO of the medical transportation charity Angel Flight Southeast, and before that worked around the globe as a marketing executive in the computer software, real estate, and hospitality industries. Her degrees in journalism-public relations and radio-TV were earned at the University of Central Florida. She is an accredited public relations specialist (APR) and member of the Public Relations Society of America (PRSA).
Deborah the founder and chair of the annual “Jeffco International Women’s Day” celebration, Vice President of the Foothills Art Center, and Chair of the Jeffco Library Foundation’s “Whale of a Used Book Sale.” She is also a graduate of the Leadership Golden class of 2015/2016 and the Leadership Jefferson County class of 2015/2016, and has served terms on a number of local government-appointed and chamber of commerce committees. She recently concluded her term as a Trustee of the Jefferson County Library.
Deborah has been recognized as one of the Denver Business Journal’s “Top Women in Energy in Colorado,” and with The Elena Joyce Grissom Lifetime Achievement Award from the Jefferson County Library Foundation.
Deborah is full time with IX Water.
Chief Technology Officer
As Chief Technical Officer of IX Water, Dr. Peterson supervises the review of all water and power technologies and the coordination of research efforts in the public and private sectors. Among his many career accomplishments, Dr. Peterson is the inventor of the original design for the unique Hyperion Power Module. He holds six patents including those for his inventions of the cw Dye Laser and Alexandrite Laser, which earned R&D 100 awards. In the 1990’s he served as science attaché at the American Embassy in London for environmental preservation and nonproliferation issues.
Dr. Peterson served as a group leader at Los Alamos National Laboratory (LANL) and held management positions at Eastman Kodak and Allied Chemical where he co-founded the laser-induced chemistry program. He was also a co-founder of the laser isotope separation program (AVLIS) at Lawrence Livermore Laboratory, which continued for 26 years. His inventions and many publications have been cited by other authors in the technical literature well over 1000 times. He is a fellow of the Optical Society of America. He earned his Ph.D. in physics at the University of Illinois.
Pete is full time with IX Water.
Director & Chief Product Strategist
Dr. Libutti is responsible for Market and product development planning of our insanely great products.
Dr. Libutti is a co-founder and the former VP of Engineering and Strategy for Hyperion Power Generation and for the software company LizardTech. He is the author of the book “IBM’s Systems Application Architecture.” After working in the industry as an electrical engineer and as an officer in the U.S. Army, Dr. Libutti began a 32-year career with the IBM Corporation. He held various positions ranging from the IBM Applied Science representative to NASA Langley during the Project Mercury space shots to IBM Group Director, holding executive marketing and executive product development positions in the U.S., Europe, and Japan.
Dr. Libutti created the corporate business case, led the development team, and introduced the personal computer in Japan. He has served on several corporate boards, including Sapiens International, a publicly-traded, Israeli software company where he became co-CEO.Dr. Libutti holds a BS in Engineering Physics from Lehigh University and an MBA and a Ph.D. in Business Administration. Dr. Libutti is also a graduate of IBM’s Systems Research Institute, earning the equivalency of a Master’s degree in computer science.
Bob is part-time with IX Water.
Dr. Sullivan-Graham is the lead inventor of the IX Water technology. She received her Ph.D. in Hydrology from New Mexico Tech in 1997. She also holds an M.S. in Geochemistry from UNC-Chapel Hill, and a Bachelor’s Degree in Chemistry from the University of Virginia.
Jeri’s entire career has been concerned with innovative techniques for cleaning contaminated water. Her current work includes the geochemical evaluation of water and media for growth of algae for biofuel production; experimentation for and design of water treatment methods for removing silica and organics from contaminated waters prior to use or desalination; and system model development for treatment and costs of water produced from Carbon Sequestration operations. She has over 12 years of expertise in adsorption and filtration water treatment methods for cleanup of oil and gas produced waters and the costs of treating these waters. Her other work includes statistical analysis of background groundwater chemistry on the Pajarito Plateau in northern New Mexico. She has worked as a chemist for radioactive waste characterization and disposal, hydrologic characterization and tracer studies, geochemistry of oil and gas industry disposal sites, saltwater contamination sites, and as an environmental consultant in characterization and remediation of air, soil, and water at hazardous waste and Superfund sites.
Jeri works on an as-needed basis with IX Water.
The links below provide information on IX Water and the enormous need for our products.
Michael Burry is Investing in Water
Why California is Running Out of Water
Southern California Drought • The End of Tomatoes?
Water: Last Week Tonight with John Oliver (HBO) (27 June 2022)
NSFW LANGUAGE WARNING — because it is John Oliver.