Equitech Quarter 1, 2022 Financial Report
Dear Equitech Shareholders,
I am happy to report that during Q1 2022 Equitech made significant progress on all fronts and continued to position itself as the leader of Innovative Opto-electronic Solutions for In-line Process Management.
During this quarter, Equitech became a Pink Sheets Current Information company, and it is now complying with the requirements of the over-the-counter (OTC) markets for this tier. This is an important step for two fundamental reasons: it increases credibility in the vision of the company and our business plan and helps us attract new investors.
We will continue to work on the elimination of the stock restrictions that exist to meet the requirements of Rule 144 during the following months. Once we have achieved this objective, we will seek to move to the middle tier (the OTCQB). This tier was created in 2010 and consists mainly of early-stage and developing U.S. and international companies that are not yet able to qualify for the OTCQX but are not as speculative as the lowest-tier Pink Sheets.
Our expanding color-measurement knowledgeable sales network is beginning to bring important opportunities to our attention. To this end, I am happy to report that during Q1 we increased the sales of systems, probes, and OEM products resulting in sales of $323K (69% of our entire 2021 revenues!). On the balance sheet, you will notice that we doubled our assets, and continue to decrease our liabilities. We have begun negotiating with our ex-employees a debt-to-equity exchange and expect to see Q2 a significant reduction in accrued compensation.
We understand that customers want to try our technology before they purchase. During this quarter, we had extended and very successful trials with two different customers considering purchasing multiple systems for their facilities. We hope to capitalize on these efforts later this year.
Determining which probe to use for a particular application is critical because of the role they play in color measurement. Succinctly, fiber optic probes carry light from the system to the sample and transport the reflected light back to the detector. Equitech has invented a myriad of probes since the company’s inception. Our scientists are redesigning some of our probes to improve manufacturability and serviceability. The new probes will begin shipping once they pass QC tests.
We have been consistently adding resources to marketing. We began a collaboration with Plastics Technology (https://www.ptonline.com/zones/extrusion) a year ago and continue expanding on it. New ads are being designed that will appear in the magazine this year. In addition, we have contracted with Plastics Engineering, the Society of Plastics Engineers (www.4spe.org) magazine where we are planning to have extensive coverage of Equitech in the issue commemorating the society’s 80th anniversary later this year.
We are looking forward to a great 2022!
Jaime A. Gómez, PhD
President & CEO