While our technology can operate on open & closed landfills that are already largely permitted for composting or even brownfield sites, there are no guarantees that counties will approve the lease of these properties.
The receipt of waste tipping fees is contingent on government regulations. Landfill fees in California average $48 per ton, which could change up or down.
California has fertilizer labeling and definition regulations that could impact the company's ability to market it's products.
Our facilities require solid waste composting permits which are not certain to be approved and could take several years.
The state of California or federal government could enact regulations in the future that could impact the profitability of the enterprise negatively or positively.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity.
The Securities have numerous transfer restrictions and will likely be highly liquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
The initial $1,000,000 offering is insufficient capitalization to reach 600 tons per day capacity which will be dependent on securing anticipated additional capital through renting, leasing, debt and perhaps, equity.
There is no guarantee that NaturSoil California will be successful in raising additional capital, securing contracts or be capable of growing up to the 600 ton per day capacity.
Jim McNelly continues to work as the Managing Partner of Renewable Carbon Management LLC, (RCM) manufacturer of the NaturTech Composting System and agent of the McNelly patents. While RCM is in a relative hiatus, not actively marketing its equipment, he is only committing a majority of his time to NaturSoil California.