Blockchain Technology Enters Water Treatment

Cryptocurrency is so ‘last year’ for OriginClear, Inc. (OCLN:  OTC/PK).  The water treatment developer has filed a patent to use blockchain technology and non-fungible tokens (NFT) to distribute payments for outsourced water treatment.  The company develops, manufactures and markets a portfolio of water treatment and distribution equipment such as water purification, filtration, softening, and disinfection systems.  Its engineers are skilled in reverse osmosis, ion exchange and electro-deionization. 

OriginClear’s systems are configured as modular, prepackaged units that can be deployed onsite for closed-loop systems.  Such distributed systems can benefit through a reliable method to track, bill, collect, and distribute payments on a pay-per-gallon basis.  Blockchain technology can eliminate the problems of conventional email or snail mail methods.

The company’s leadership sees a huge opportunity in water treatment.  The advent of environmental, sustainability and governance (ESG) priorities for corporations is expected to drive decentralization of water management and treatment.  OriginClear management believes its systems are vital enables of ESG goal achievement for corporations that are taking their water problems in hand.  The company’s modular treatment systems allow a company to plug in a system demonstrates ESG goal accomplishment, at least as far as water is concerned. 

The projects are made even easier by adding a simple and highly reliable payments feature based on blockchain technology and using NFT.  OriginClear has measured market for commercial water projects at $20 trillion.

It is a huge market opportunity.  Certainly, OriginClear should be able to grab a bit of the lowest hanging fruit.  The company is a bit behind in reporting financial results, but the report for the period ending September 2020, disclosed the company had $757,945 in cash on its balance sheet.  In November 2020, OriginClear sold preferred stock shares to raise an additional $200,000.  Since it takes about $830,000 per quarter to keep operations going, the company does not have abundant resources for market penetration programs.

Instead, OriginClear supporters have stepped to promote the company entrance into the commercial water treatment market.  In February 2021, the company agreed to acquire a collection of real estate assets preliminarily valued at $630,000 for stock and warrants.  The seller of the real estate assets has also agreed to invest in a fund for development of pre-funded commercial water projects. 

More recently OriginClear created a new subsidiary, Water On Demand, to contract with private business for outsourced water treatment.  The company blockchain and NFT solutions expected to help speed up interest in its new water treatment as a service.

 

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.