Management report and analysis of the financial situation and operating results

Caution Regarding Forward-Looking Information

This Quarterly Report on Form 10-Q, including, without limitation, statements containing the words “believes”, “anticipates”, “expects” and words of similar significance, constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company, or the results of the industry, to be materially different from the results, performance or future achievements expressed or implied by these statements. forward-looking statements.

These factors include, among others, the following: general economic and market conditions at the international, national and local level; demographic changes; the Company’s ability to support, manage or forecast its growth; the Company’s ability to successfully complete and integrate acquisitions; existing government regulations and changes to or failure to comply with government regulations; negative publicity; competition; fluctuations and difficulty in predicting operating results; changes in business strategy or development plans; business interruptions; the ability to attract and retain qualified personnel; and other factors referenced in this and previous filings.

Given these uncertainties, readers of this Form 10-Q and investors are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these factors or to publicly announce the outcome of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.


The Society was organized on August 13, 2014 like a Nevada corporation under Chapter 78 of the Nevada Revised Statutes. The registered address of the Company is 3773 Howard Hughes Pkwy STE 500S, Las Vegas, Nevada89169, UNITED STATESand its head office is located at 1111 West 12th Street#113, Austin, TX 78703.

The company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act which came into effect in April 2012. The definition of an “emerging growth company” is a company whose initial public offering of common equity securities occurred after December 8, 2011 and has less than $1 billion of the total annual gross income during the last completed fiscal year.

Overview of the Business

Since April 27, 2021, the Company changed its business with the acquisition of intellectual property assets related to a new membrane-based ion extraction process (“membrane technology”), which is capable of extracting ions exiting in weak concentrations of liquid solutions. The membrane technology is now being used in pilot laboratory tests to enable the company to produce its first commercial prototypes using the new extraction method. The Membrane Technology allows ions to be removed from the solution without concentration by evaporation (significant preservation of water resources), without additional pressure or heating (reduction of energy costs) and targets specific ions to be extracted (reduction of the need for operations later and increasing the potential to sell other ions in the solution). Due to reduced interference with the environment, lower energy costs and no need for large evaporation ponds, management considers membrane technology to be environmentally friendly and sustainable compared to alternatives. .

The membrane technology has been demonstrated in the following applications: to extract lithium from brine solutions or mining leach solutions; extracting fatty acids from vegetable oils as a superior refining process; to extract glycerols from biodiesel as a superior purification process; extracting radioactive ions from nuclear wastewater; to extract specific metal ions from mining leach solutions and waste effluents; and to remove ions from seawater for desalination, among others.

Current activity is mainly focused on: the continuation of the organization and the recruitment of targeted expertise; on the protection of the Company’s intellectual property assets; and the configuration of the most successful commercial pilot plant for lithium extraction, followed by the extraction of radioactive ions from nuclear wastewater and the refining of vegetable oils by removal of fatty acids; on the elimination of glycerols for the purification of biodiesel.

Impact of Events in Ukraine

The Company’s activity and its basic research are carried out in United Stateshowever, the Company has offices in Ukraine and was implementing programs with some Ukrainian partners to test membrane technology as a way to extract certain radioactive contaminants as they might be found after a nuclear disaster or as a byproduct of nuclear reactor operations. Plans to test the use of membrane technology to refine sunflower oil have also been arranged with crude oil producers. Due to the current conflict in Ukraine these programs have been suspended. It is not certain that they can be implemented in Ukraine. Consequently, the Company may be forced to perform these tests elsewhere and under different circumstances, which could delay or increase the cost of this direction of development of the Company’s technology.


In addition, the Company operated offices in Kyiv containing certain assets, such as computers and printers as well as administrative documents. These assets and files may be lost because it is not known which part of the city was destroyed. Upon abandonment of our office, however, all confidential technology information and sensitive computers were removed and transported out of the country. There is nothing left that could harm the value of our main asset.

Although the Company may rearrange some of its plans, it is not expected that the conflict in Ukraine will have a significant effect on the business of the Company.

Results of Operations

The following table summarizes the results of our operations during the three months ended March 31, 2022 and 2021, respectively:

                                             Three Months Ended
                                                 March 31,
                                             2022          2021          Change

Revenues                                  $        -     $       -     $        -
Operating expenses                           374,109        16,650        357,459
Other expense                                 13,781             -         13,781
Net profit (loss)                           (387,890 )     (16,650 )     (371,240 )

Earnings (loss) per common share (0.01) (0.00) (0.01)

The increase in operating expenses is the result of the new orientation of the Company’s activities following the acquisition of the Membrane technology on
April 27, 2021. This development has led to an increase in payroll, rents and consultancy expenses, in particular with the costs of protecting intellectual property.

Cash and capital resources

From March 31, 2022we had total assets of $3,190,040 and a cumulative deficit of $2,336,823.

Our operational activities used $110,661 in cash for the three months ended March 31, 2022while our operations used $27,795 cash for the three months ended March 31, 2021. Attention should be drawn to the fact that this considerable difference is the result of the changes in activity which took place April 27, 2021 and the new direction of the company in the future. We had no income in the three months ended March 31, 2022or during the same period of the previous year.

Our cash requirements are mainly for the continued development of the commercial pilot plant with the purchase of equipment and materials as well as operating expenses for the development of the pilot plant systems and its demonstration to customers. potential, as well as our payroll costs. Over the next 6 months, the Company is expected to open new head offices and begin organizing its initial production tool.

Management believes that the Company’s cash will not be sufficient to fund all of the Company’s obligations and commitments for the next twelve months. The Company has reached the stage of its development where it needs significant additional financing to be able to bring the first of its extraction processes into a marketable form. Management believes that the minimum funding necessary to achieve this is $1.5 million. The Company has already received a firm pledge of $400,000 to this amount. Historically, we have depended on loans from our major shareholders and their affiliates to provide us with necessary working capital. There can be no assurance that such financing will be available on a timely basis and there can be no assurance that our shareholders, or any of them, will continue to make loans or advances to us in the future.


Off-balance sheet arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity or our capital expenditures or resources that are important to an investor in our securities.


Our operating results are not affected by seasonality.


The Company has relied on convertible debt financing as its primary source of funding. In the event of a high inflationary environment, this method of financing may become more expensive and may be less readily available. Our core business and operating results are not materially affected by inflation.

Critical accounting policies

Our financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare the financial statements. Estimates are based on historical experience and assumptions believed to be reasonable given current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed material to our results of operations or financial condition. Our critical accounting estimates are further described in Note 2 to our unaudited financial statements contained herein.

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Luisa D. Fuller