Saturday, October 25, 2008

The Official Business Plan

Corporate Directory

Liquid Asset Development, LLC
EIN 26-3598820

Gregory Michael Majersky

Karen B. Frye

Senior Advisory Staff
Dr. Randall Tagg, Physics Chair, University of Colorado Denver

China Advisory Staff
Larry Sather
Sophia Wang

Legal Counsel
Jamie Sheridan, Holland and Hart, LLP (US)
Jeff Bergmann, Solubility Pty. Ltd (Australia)

Registered Address
777 Ash Street
Suite 307
Denver, CO 80220


This work is copyrighted intellectual property and all technical material is under patent pending protection with the US Patent and Trademark Office. No part may be reproduced or disseminated by any method or process, written or verbal, without prior written permission from the President of Liquid Asset Development, LLC. All inquiries concerning use of any part of this document should be addressed to:

The President

777 Ash Street
Suite 307
Denver, CO 80220


Every part of this report must be treated as confidential. Much of the information contained within this report, and used for the underlying analysis, is of a commercially sensitive nature. This report may not be released or circulated in any form without the express written permission of the copyright owner. Being in receipt of this report you must be aware that release of this report without permission could cause Liquid Asset Development, LLC and related parties material damage and you may be held liable if your actions have caused this report to be circulated without permission.


Liquid Asset Development, LLC does not accept responsibility for the accuracy or completeness of the contents, and shall not be liable for any loss or damage that may be occasioned directly or indirectly through the use of, or reliance on, the contents of this publication. Liquid Asset Development, LLC has made its best endeavours to ensure the accuracy and reliability of the data used herein, however makes no warranties as to the accuracy of data herein nor accepts any liability for any action taken or decision made based on the contents of this report.

Executive Summary

Liquid Asset Development, LLC is the result of nearly two years of EPA funded research on turning pervious concrete (concrete without fine particles such as sand) into a water filter that can utilized for hygienic applications, low cost recovery of metals from mine waste, desalinization, ocean mining pre-treatment, and removal of phosphates from agricultural runoff. The listed utilization of the filter is not inclusive of all commercial uses indicating extensive potential for financial and humanitarian returns. Additional advantages of this filter include the infrastructure for design, production, and distribution of this technology already exists around the world.

Operational Objectives:
2009 - 2010: Build upon previous research, increase product and business plan visibility, engage potential partners for commercial use.
Mid 2011: Negotiate first IP transfer contract, receive payment as negotiated.
2011 – 2013: Work with client while using publicity from the first deal to drive future contracts.

Based on research, identified the initial industry and humanitarian uses of the filter are:

Mining - chemical and metal processing for economical waste water treatment and metals recovery, sea-bed mineral extraction pre-treatment.
Governmental, Commercial, and Industrial – Desalinization, removal of toxic manufacturing wastes, and hygienic pre and post treatment of drinking water.

The demand for clean water for drinking, hygiene, and irrigation will grow with necessity as resources become limited and overused. Economical metals recovery can be a revenue generator for companies and nations as well as improving overall economic development. Sustainability is becoming a demand and a necessity for local and multi-national businesses and governments.

Revenue streams potential identified are:

Acid Mine Drainage (AMD) Metal Recovery - The estimated value of metals lost to AMD in the US at $200 million and globally at almost $40 billion per year (based on a 2004 Pennsylvania DEP study by Joe Rathman).
Desalinization – Expected global investment in reverse osmosis desalinization is $25 billion USD by 2010 and over $56 billion USD by 2015 and with an estimated yearly operating cost of $17 billion USD. (

The market value of clean water for hygienic/potable use is more than the value of human life. Without sufficient clean water death occurs. Global GDP is dependent upon clean water because without it productivity drops significantly. No geographical limit exists in the market of producing clean water because it is a global necessity for economic development and life.

Liquid Asset Development will gain shares in the AMD market within 1-2 years and the desalinization industry in 2-3 years. Negotiated contracts will involve a complete but specific use technology transfer with a defined period of support, similar to how open source software is sold and supported. The revenue structure will depend on the following:

Within the United States, Canada, Western Europe, and Australia, the legal system allows a negotiated payment structure between Liquid Asset Development and private parties. Anticipated potential of $10 million in contracts is projected for the third year of market development.

Potential Negotiated Payment Structures:

1. Upfront payment and annual installments or,
2. Large percentage of future royalties from reselling an improved/integrated version of the filter into other technologies.

Payment would occur up front when licensing the filter to non-US based entities or entities not based in countries with a developed English legal system and NGOs. In return, the foreign/NGO entities enter into the agreement with Liquid Asset Development in the US giving jurisdiction within the United States.

Liquid Asset Development’s exit strategy recognizes that market saturation for the filter technology may occur in 10-20 years. It is the intent of Liquid Asset Development LLC to use assets and cash earned during licensing to evolve into a sustainable holding company of green/clean technologies surviving market saturation of the initial filtration technology.

From pure research into business...

Ok, putting up graphs would be alot of work for the blog. Alot of cutting and pasting anyways. The following link will take you to the results and important details of both the 2007 EPA P3 experiment and my 2008 master's thesis research:

Now, after returning from the EPA conference in Washington DC in April, I went ahead and applied for a US patent and an international "pre-patent" under IPT rules. Basically an IPT application is necessary before applying for a patent in countries that have signed the IPT. And of course you pay an extra couple of thousand for the convenience.

Despite what you think, the review process does not begin right away. Your application sits in queue for "a while". I applied for my patent in July 2007 and the USPTO began officially reviewing it in December 2007. They do send you a letter telling you that the official review process has begun and they also post your application, including your claims, drawings, etc up on the internet. Fortunately, my formulas aren't up on the internet.

Unfortunately, in August 2008 our hero did get word that his IPT application was rejected. But that doesn't mean that the US patent gets rejected automatically. Sometimes the same person reviews both apps, sometimes not. Either way, I know some of the criteria that they may be using as a gauge to determine how patentable my idea is.

What is also fortunately for me is that I applied when I did. The U. of Alabama Tuscaloosa expressed their intentions at a NCIIA conference a few months after I filed my application to look into filing their own application for a pervious concrete water filter.

So the patent pending status of my filter will drag on at the speed of bureacracy. Oh well, no news is good news, right?

On the business end, back in the fall of 2007 I had my first crack at a "non-disclosure act" (NDA) with an incubator in Highlands Ranch, CO. Unfortunately, when it came down to the details of the NDA, my attorney and I only had two questions and they wouldn't even address those two questions.

BIG RED FLAG !!!!!!!!!

No one doing a deal with you should be so resistant to answering a few questions.

But I did manage to score a NDA through an old China contact who lives in Australia. He is associated with a guy named Heinz Dahl, who apparently is a pretty big name in Australian and now global wind power. He was even a keynote speaker at the most recent World Wind Energy conference in Toronto, Canada and is currently the President of the World Wind Energy Association.
Not too shabby for a snowboarder, eh? So Liquid Asset Development LLC has a toehold in Australia. This icebreaker has segued into interest from Doug Cisneros, who deals in the food trade between the US and the Middle East and a VC representative in Shanghai, China named Larry Sather who I also met while living in China.

So while no money has been made yet, contacts are being made and interest is being expressed.

This interest has required me to come up with a business plan and revenue projection. I'll post the biz plan in a seperate blog entry, but due to many zeroes and minuses on the revenue projection, I'll keep that to myself ;-)))))