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Polymer Research Corporation of America (PROA) |
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CEOCFO CEOCFO Monthly Analyst |
"To print this page go to file and left click on print" The Art of Chemical Grafting Bio
of CEO, Their
Chemical Grafting process involves activating a substrate (or material) and subsequently
attaching monomers. "Grafting" by definition, means to attach and grow a new
material onto an existing backbone or substrate. PRCA has the capability to permanently
improve or add positive properties without altering the substrates' inherent
characteristics. The chemicals used to perform grafting are safe, nontoxic and
non-polluting and can be applied very easily, because everything is done in one step. In
most cases, application of chemical grafting is through basic dipping, rolling and
spraying techniques. The chemical process of grafting involves the activation, attachment
and polymerization of new desirable properties into a backbone substrate using a specific
graft-initiator-monomer system. PRCA will select the best combination of
graft-initiators-monomers for a clients application depending on your specifications for
desired properties and performance criteria. CEOCFOinterviews: Dr. Horowitz, please tell us about Polymer Research Corporation of America. Dr. Horowitz: “Polymer Research Corporation of America is a
company devoted to research in the area of polymers, plastics, resins and any related
fields such as electronics, where the polymers and plastics appear. Polymer Research
Corporation is the holder of numerous patents in the area of chemical grafting, which
consists of taking any substrate (or
material) from the client or product that he is
selling, and attaching to it under the mild conditions of temperature pressure and new
properties that the substrate didn’t have before. This
is done without detracting from any existing properties that the substrate has. CEOCFOinterviews: Give us an example of what somebody might come
and ask you to do, and what you actually are getting ready for them. Dr. Horowitz: “A good example is that a company came to us and
asked us to produce for them a sulfur and ash-free coal; the cheap bituminous coal cannot
be used in the utilities because the emissions of sulfur and ash are very high. By
utilizing our method of chemical grafting, we modify that low-quality coal into
High-quality coal, which is free of sulfur and ash. As a result, a project is going on
now, whereby we have such a procedure for our client and we are preparing to go into a
large-scale production, which may involve millions of tons of coal that can be converted
from low-grade to high-grade. By doing these experiments, we have observed that we can
liquefy coal by producing something similar to diesel or fuel oil and can be liquefied to
produce gasoline. Further, by doing this we will be able to contribute to the lessening of
the dependence of the U.S. on foreign oil because the United States has large quantities
of coal but not all of this coal can be used because of high sulfur and ash. CEOCFOinterviews: How were these products developed? Dr. Horowitz: “They were developed as a side benefit while
working in our laboratory and utilizing our method of chemical grafting.” CEOCFOinterviews: Tell us about your revenue model. Dr. Horowitz: “Usually the clients who want to have their
products improved constitute a large portion of our income. One client bought a process
for three quarters of a million dollars and another client pledged to give us a contract
for a quarter of a million dollars recently; he is about to send the money so he can start
working. In certain periods-of-time there is more interest for the clients to improve
their products. While our scientists are working utilizing our unique method of chemical
attachment, or grafting; we also develop our own products and when the client comes
around, and that happens numerous times, then we will arrange with the client whereby he
pays for the right to use this product for his area of development.” CEOCFOinterviews: You say you have a unique method of grafting;
tell us a little about the industry, and your position in the industry. Dr. Horowitz: “We are the only company in the world that I
know, that can do the chemical grafting by this process. There are other very large
companies, which use the method of attachment and grafting by atomic energy, and similar
processes. How this came about was that in the final stages of the second world war, it
was observed that molecules and almost all the objects are torn apart by atomic explosion,
but then they re-combine in a different way, because once the bond was broken it attached
itself in a different place and formed a different material. What sets us apart is that we
were able to repeat the process by utilizing a non-irritating, non-polluting method, which
does not require pressure or elevated temperatures and no atomic energy but mild chemicals
and chemical reactions.” CEOCFOinterviews: How do you market your products and services? Dr. Horowitz: “We have several methods of marketing, the first
and most important is we have a website, which can inform the clients. We also have e-mail
and get requests through the Internet; this is one method, which is very successful.
Another method is that we send out letters to carefully selected clients that could be
interested in our process. It is a short letter explaining what our process can do, but we
leave it to the client’s imagination to decide what this product can do for him. When
the client shows interest, then we invite him to our company and give him a presentation
at no obligation, whereby he is shown different parts of our company, what type of work is
being done and samples of the different work being done. When the client is interested,
then we conclude with the client a working arrangement and we start working with the
client.” CEOCFOinterviews: Have you experienced a great deal of repeat
business? Dr. Horowitz: “Clients for whom we worked before, based on the previous good experience with us are coming to us again-and-again. We have some of the clients that came back to us five to ten times in the period-of-time after we started with the relationship. CEOCFOinterviews: You have been at this for quite some time, are
there new techniques and technologies that you are able to utilize now? Dr. Horowitz: “We experimented in the proper area, and
protected everything with new patents. We have patents that are only one or two years old;
the new patents have a lifetime of seventeen years so we are well protected. As the
microwave technology became popular, we utilized it and included it; the laser technology
we utilized and any new technology that appears on the market we utilize and that includes
our methods of attachment.” CEOCFOinterviews: What future product collaboration can we look for
from your company that would be a big difference for you? Dr. Horowitz: “What is needed now is the permanent killing of
fungi. The Aspergillus Niger fungus is a black fungus that appears in the bathrooms,
behind the wall paneling or underneath the floor. With our product, a spray can be made or
it can be sold to companies that would make a spray from this. We can sell millions of
pounds of this product and then the profit on this is 50% so we would make 5 dollars clear after all the expenses. The
insurance companies are very interested in this also, not only the manufacturers. CEOCFOinterviews: You have a lot of things going on there, how do
you manage all of that? Dr. Horowitz: “We have a staff of thirty seven people and 20
are scientists, which is a very high percentages of scientists considering the total
number of our employees. Our scientists are led by me; I am a graduate of professor Herman
Mark of Polytechnic University in Brooklyn, New York. Professor Herman Mark is the father
of polymer chemistry, he died recently but his name is all over the world; he was my
tutor.” CEOCFOinterviews: Have you been affected by the economic slow-down
of the last year? Dr. Horowitz: “Yes, we have been affected by the economic
slow-down of last year. Our work continued the same way and our scientists were paid for
the work, which they performed as always. However, our clients due to the economic
situation were paying very slowly. The auditors became very cautious and did not take into
consideration the work we have done even though we possess signed research contracts. They
did not recognized $1,500,000 in the invoices, which we usually recognized and
which were sent out to our clients. They only recognized the invoices, which were paid to
us. CEOCFOinterviews: What should shareholders and potential investors
remember most about your company? Dr. Horowitz: “The most important thing about our company is
that we can solve the problems of every manufacturing company, whether it is in connection
with government regulations or non-flammability or whether it is a question of demands for
coal, high quality, or whether it is reverse osmosis; so called membranes which convert
brackish water into “sweet” water. They can come to us and we can solve their
problems quickly because we have the technology already and we start working immediately
for the client. We can send samples that are better and cheaper than anybody has. I would like to say to our investors and future investors, that we have wonderful products here in all of these areas that we have mentioned and they should call us. There is no obligation if they visit us here in our company; we will allow them to get a lot of non-confidential information. They will be able to see samples and discuss with us any arrangement that is suitable for both sides. We have highly trained scientists here, which will explain to them many things that the client will find very useful.” disclaimers |
