The Olmito Agriquatics project will treat wastewater from Olmito and Los Fresnos, Texas to produce high quality treated effluent. It will use an innovative system to produce biogas, harvested duckweed, and fish and prawns through aquaculture. The project is expected to generate $3.5 million in pre-tax profits in 2016 from sales of over 1,000 tonnes of tilapia and 100 tonnes of prawns. It will seek $1.3 million from third party investors, offering a 22% dividend on the investment after 4 years along with an option to convert to company shares.

1. Olmito Agriquatics
Treating Wastewater to Produce
Macrobrachium
&
Tilapia
Some “Numbers” and Graphs

2. The Project Context

3. A Close-up of the Olmito WWT Plant site

4. Olmito Agriquatics Project Abstract
The Olmito Agriquatics project will treat the wastewater now collected by the Olmito Water Supply
Corporation (OWSC) to a fully recyclable condition – achieving the highest quality treated effluent in
the state of Texas. It will also desludge and formally decommission the two lagoons that now serve as
OWSC’s wastewater treatment plant. The project will also treat wastewater now being produced by
the neighboring town of Los Fresnos. It will continue, in the future, to accept and treat wastewater
flows originating in the existing Olmito Water Supply Corporation service area, as well as adjacent
neighborhoods currently served by the City of Brownsville and the community of Rancho Viejo.
Production is expected, in future, to expand to the North Alamo Water/Wastewater district, a region
having the potential to treat approximately 10 times as much wastewater as is now received in the
Olmito district.
In addition to treated wastewater, the principal byproducts of the Agriquatics System are a superior
quality biogas and harvested duckweed. The former will be used in a combined heat and power
context to produce thermal energy and electricity for local consumption as well as peaking electricity
for export to the grid. The latter will be solar dried (gas assisted) blended with corn and milo
carbohydrates and fed to Tilapia fish and Macrobrachium prawns grown onsite using the Company’s
innovative dome-housed, intensive, recirculating aquaculture system. Fish will be harvested
daily, filleted onsite and packaged for shipping to clients: Sysco Foods, Whole Foods and HEB.
Olmito Agriquatics is expected to generate pre-tax profits of almost $3.5 million in 2016 on a projected
sale of 1,054 tonnes of tilapia fillets and 105 tonnes of whole macrobrachium prawns.

5. Duckweed Aquaculture Scenario
Scenario-Specific Notes
In this scenario, with minor exception, the entire 1,200+ tonnes (dry weight) of duckweed produced annually as a
byproduct of the Olmito Agriquatics wastewater treatment process is committed to supplying internal
aquaculture of Tilapia fish and Macrobrachium prawns. The system is unique among intensive aquaculture
systems for it’s ability to remove all wastes – including residual nitrates and phosphorus – from the water the fish
are grown in. It is also unique in that it captures these wastes – both solids and dissolved solids -- leverages
them with photosynthetic energy (sunlight on duckweed), and then feeds the product back to the fish. By
slaughtering and processing fish onsite, the project is also able to recycle as feed, 100% of fish discards
(skin, head, guts, bones and fins). This brings feed costs for the Agriquatics system to the lowest among all
global aquaculture systems/technologies.
This scenario presumes a cash investment of approximately $1.3 million by third party investors. The cash
investor is being offered a first-in-first-out return on his/her investment (year 4) and a convertible B preferred
share/unit that will pay dividends equal to 22% of the invested amount in circumstances where post-tax net
earnings permit (presumably year 5, going forward). The preferred shares/units are convertible through the end
of year 5 to 20% of the company’s then outstanding shares. The conversion is presumed to allow the investor to
share, proportionately, in the company’s future growth in the South Texas Valley. These shares/units are
projected to have obtained a value of $4.36 million within 5 years – just as the company begins a rapid expansion
phase by taking in wastewater from the City of Brownsville.
While, in this circumstance, guarantees are presumed to be provided by The Olmito Water Supply
Corporation, were they to be offered to third party investors, they would be valued at 50% of cash. $3.0 million
in guarantees would, therefore, obtain an equivalent share/unit value (20%) as is here offered to the cash
investor – presuming the cash investor opts for conversion.

6. Income Statement

7. Cash Flow Statement
Note under “Dividend Paid” in 2015, the Investor is fully reimbursed for his capital investment. Dividends paid in 2016,
equal to 22% of the original cash investment, will be paid to the investor continuously thereafter, or until such time as the investor
makes a decision to convert his preferred “B share/unit to a common A share/unit.

8. Balance Sheet
Note: Project partner, The Olmito Water Supply Corporation, is presumed to retain ownership of the project’s land and existing
Lagoon facilities. As such, the “Land and Improvements” line shows a zero value across the board. This circumstance is
considered “open” to further clarification and interpretation.

9. Start-up Costs & Sources of Financing

10. Investment Scheduling

11. Labor and Wage Summary

12. Product Gross Margins

13. Breakeven Analysis

14. Ratio Analysis

15. Shareholder Value Calculations (A)

16. Shareholder Value Calculations (B)

17. Shareholder Value Calculations (C)

18. Olmito Agriquatics Stock / Units Matrix

19. Olmito Agriquatics Key Parameter Value Assumptions (A)
Note: The only product assumed to be manufactured in this scenario is the “Milled to <10 microns” duckweed powder. All
Other products may, however, be produced under differing, feasible scenarios.

20. Olmito Agriquatics Key Parameter Value Assumptions (B)

21. Olmito Agriquatics Key Parameter Value Assumptions (C)

22. Olmito Agriquatics Capital Structure
Olmito Agriquatics
Capital Structure
Cash Invested,
$1,300,000
Working Loan,
$ 1,500,000
Term Loan,
$ 5,142,247
NOTE: OWSC contribution of land, lagoons and developed infrastructure are assessed to have a
present value of approximately $3.0 million

23. Olmito Agriquatics Capital Allocations
Tissue Culture Lab - AD and Stevia
$0
$ 1,050,000 WWT (series of 22 l/s units - including fish,worms &
digesters)
Local Hydraulics & Sludge Mining
$ 300,000 Roads
$ 150,000
Security
$ 100,000
$ 30,000
Electricity and Backup Power Units
$ 129,718
$ 80,000 Phase II Park Project Landscaping
Phase II Park Construction
$ 300,000
$ 4,544,386 Non-Farm Rolling Stock
Miscellaneous Equipment + Spare Parts
$ 325,000 $ 480,000
Closing Costs
Preliminary Expenses
Initial inventory
$ 72,676
Initial accounts receivable
$ 85,845
Initial operations, admin & sales costs
$ 337,324

24. Olmito Agriquatics Year 1. Cost Distribution
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Debt Service Depreciation General & Admin. R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution Production Costs Production Labor Raw Material

25. Olmito Agriquatics Year 1. Cost Structure
Production Labor, $21,326 Production Costs, $21,326
Raw Material, $684
Sales, marketing, &
distribution, $1,500
R&D/Quality Assurance & Prelim
Expenditures, $28,000
Depreciation, $332,296
General & Admin., $170,103

26. Olmito Agriquatics
Year 1 Cash Flow
$ 1,600,000
$ 1,400,000
$ 1,200,000
$ 1,000,000
$ 800,000
$ 600,000
$ 400,000
$ 200,000
$0
Mon01
Mon02
Mon03
Mon04
Mon06
Mon08
Mon09
Mon10
Mon12
Mon05
Mon07
Mon11

27. Olmito Agriquatics Olmito Agriquatics
Year 1. Assets Year 2. Assets Cash & short-term
investments, $ 416,446
Cash & short-term
investments, $ 678,212
Other Assets, $ 0 Accounts
Other Assets, $ 0
receivable, $ 0 Accounts
receivable, $ 541,732
Inventories, $ 62,314
Inventories, $ 50
Plant & Equipment, $
5,714,854
Plant & Equipment, $
5,917,794
Olmito Agriquatics Olmito Agriquatics
Year 1. Liabilities Year 2. Liabilities
Short-term debt and
notes payable, $ Short-term debt and
1,304,025 Equity, $ 742,029
notes payable, $
1,279,741
Equity, $ 416,913
Accounts payable, $
14,197 Accounts payable, $
148,443
Long Term Debt, $
4,565,133
Long Term Debt, $
4,860,921

28. Olmito Agriquatics Year 2 Cost Distribution
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Debt Service Depreciation
General & Admin. R&D/Quality Assurance & Prelim Expenditures
Sales, marketing, & distribution Production Costs
Production Labor Raw Material

29. Olmito Agriquatics Year 2 Cost Structure
Taxes, $195,171 Raw Material, $939,738
Debt Service, $1,237,164
Production Labor, $546,491
Production Costs, $546,491
Depreciation, $316,794
Sales, marketing, &
distribution, $223,516
General & Admin., $605,535
R&D/Quality Assurance & Prelim
Expenditures, $82,694

30. Olmito Agriquatics Year 2. Production (tons)
250.00
200.00
150.00
100.00
50.00
0.00
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Aquameal Macrobrachium Tilapia

31. Olmito Agriquatics Year 2. Sales ($s)
$ 600,000
$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Tilapia Macrobrachium

32. Olmito Agriquatics 5-Year Cost Distribution
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2012 2013 2014 2015 2016
Taxes Debt Service Depreciation
General & Admin. R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution
Production Costs Production Labor Raw Material

33. Olmito Agriquatics Year 5 Cost Structure
Taxes, $1,040,224
Raw Material, $1,677,788
Debt Service, $1,259,803
Depreciation, $328,062
Production Labor, $779,338
General & Admin., $725,622
Production Costs, $779,338
R&D/Quality Assurance & Prelim
Expenditures, $74,976
Sales, marketing, &
distribution, $199,587

34. Olmito Agriquatics 5-Year
Production tons)
3,000
2,500
2,000
1,500
1,000
500
0
2012 2013 2014 2015 2016
Macrobrachium Tilapia Aquameal

35. Olmito Agriquatics 5-Year
Sales ($s)
$ 8,000,000
$ 7,000,000
$ 6,000,000
$ 5,000,000
$ 4,000,000
$ 3,000,000
$ 2,000,000
$ 1,000,000
$0
2012 2013 2014 2015 2016
Tilapia Macrobrachium

36. Olmito Agriquatics 5-Year Cash Flow
($ millions)
3
2.5
Note: The pronounced dip in
Year 4 is a consequence of
compensating the Investor on
2 a first-in-first-out basis
1.5
1
0.5
0
2012 2013 2014 2015 2016

37. Olmito Agriquatics 5-year Pretax Profits
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2012 2013 2014 2015 2016
-$500,000
-$1,000,000
-$1,500,000

38. Olmito Agriquatics
Year 5 Assets Other Assets, $ 0
Cash & short-term
investments, $ 2,511,158
Plant & Equipment, $ 4,974,979
Accounts receivable, $
714,960
Inventories, $ 628,775
Olmito Agriquatics
Year 5. Liabilities Short-term debt and notes
payable, -$ 276,947
Accounts payable, $ 726,103
Equity, $ 4,989,656
Long Term Debt, $ 3,391,059

39. Fresh Tilapia Filets
Break Even Price ($/ton)
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Fresh Tilapia Filets
Break Even Volume (tons/yr)
1400
1200
1000
800
600
400
200
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

40. Fresh Macrobrachium Prawns
Break Even Price ($/ton)
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Fresh Macrobrachium Prawns
Break Even Volume (tons/yr)
120
100
80
60
40
20
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

41. Olmito Agriquatics
Current & Quick Ratios
25
20
15
10
5
0
2012 2013 2014 2015 2016
Current ratio Quick ratio

42. Olmito Agriquatics
Profit Ratios
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Gross margin Operating margin Profit margin on total sales Return on assets Return on equity

43. Olmito Agriquatics
Sales to Fixed Assets
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016

44. Olmito Agriquatics
Debt Ratios
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Debt to total assets Debt to total capitalization Debt to equity

45. Olmito Agriquatics
Efficiency Ratios
0.9
0.7
0.5
0.3
0.1
2012 2013 2014 2015 2016
-0.1
-0.3
-0.5
Production Sales, Marketing & Distribution R&D/Quality Assurance General & Administration

46. Olmito Agriquatics
Asset Turnover
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016

47. Olmito Agriquatics
Cost Structure
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2012 2013 2014 2015 2016
Total Variable Costs Total Fixed Costs

48. Olmito Agriquatics
Share Prices
$25.000
$20.000
$15.000
Series1
$10.000
$5.000
$0.000
2012 2013 2014 2015 2016 2017

49. Olmito Agriquatics Wastewater Treated
(cubic meters treated monthly)
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0.00
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
53
55
57
59
1
3
5
7
9

50. Olmito Agriquatics
Sales
$800,000
$700,000
$600,000
Dollars in Sales
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year
Macrobrachium Tilapia

51. Olmito Agriquatics Fresh Tilapia Filet Sales
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Year 4
Year 1
Year 2
Year 3
Year 5

52. Olmito Agriquatics Fresh Macrobrachium Sales
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Year 1
Year 2
Year 4
Year 5
Year 3

53. Olmito Agriquatics Accounts Receivable
$ 800,000
$ 700,000
$ 600,000
$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5

54. Olmito Agriquatics Finished Inventories
$ 700,000
$ 600,000
$ 500,000
$ 400,000
$ 300,000
$ 200,000
$ 100,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5

55. Olmito Agriquatics Capital Spending
$ 1,400,000
$ 1,200,000
$ 1,000,000
$ 800,000
$ 600,000
$ 400,000
$ 200,000
$0
Year 1
Year 5
Year 2
Year 3
Year 4

56. Olmito Agriquatics Outstanding Debt
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5