UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended DECEMBER 31, 1996
Commission File No. 000-21325
MANSUR INDUSTRIES INC.
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(Exact Name of Small Business Issuer as Specified in its Charter)
8425 S.W. 129th Terrace
Miami, Florida 33156
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(Address of Principal Executive Offices)
(305) 232-6768
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(Issuer's Telephone Number, Including Area Code)
Florida 65-0226813
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(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE EXCHANGE ACT:
TITLE OF EACH CLASS
Common Stock, $.001 par value
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in PART III of this Form 10-KSB or any amendment to
this Form 10-KSB [ ]
As of March 3, 1997, the number of shares of the registrant's Common Stock
outstanding was 4,601,309. The aggregate market value of the Common Stock held
by non-affiliates of the registrant as of March 3, 1997 was approximately
$34,092,630, based on a closing price of $13.75 for the Common Stock as reported
on the NASDAQ Small-Capitalization System on such date. For purposes of the
foregoing computation, all executive officers, directors and 5% beneficial
owners of the registrant are deemed to be affiliates. Such determination should
not be deemed to be an admission that such executive officers, directors or 5%
beneficial owners are, in fact, affiliates of the registrant.
DOCUMENTS INCORPORATED BY REFERENCE:
The information required by Part III (Items 9, 10, 11 and 12) is incorporated by
reference from the registrant's definitive proxy statement (to be filed pursuant
to Regulation 14A).
<PAGE>
ITEM 1. BUSINESS.
GENERAL
Mansur Industries Inc. (the "Company") has developed and obtained patent
protection with respect to a full line of self-contained, recycling industrial
parts washers that incorporate innovative, proprietary waste minimization
technologies and represent a significant advance over currently available
machinery and processes. Focusing on waste minimization rather than its removal
and recovery, the Company believes that its equipment will have a major impact
on the industrial parts cleaning industry and will have a broad appeal to
customers, because its equipment, unlike the machines now in use, facilitates
efficient and economical compliance with environmental regulations, minimizes
waste disposal requirements, enhances cleaning solution utilization, and
increases worker safety and productivity. The Company anticipates that the
product should be able to achieve fairly rapid market penetration because of its
technological, economic and environmental advantages and its relatively low
price point compared to competitive equipment.
Most machinery and equipment require oil lubrication to function properly.
Removal of lubrication oils from tools and parts during automotive, aviation,
marine and general industrial maintenance, service and repair operations is
typically effected through the use of mineral spirit solvents which become
contaminated in the cleaning process. Under the most common current practice,
the solvent becomes more contaminated (and less effective) with repeated use,
and, when it is saturated with oil, sludge and other contaminants as a result of
the cleaning process (and frequently classified as a hazardous waste under
federal and state regulations), it must be stored on site until pick-up, when
pure solvent is delivered and the contaminated solvent is, generally, shipped to
regional refining facilities. This off-site recycling program is typically
scheduled on four to sixteen week cycles and involves both the utilization of
progressively more contaminated solvent for cleaning operations until the
solvent is too contaminated for use, and thereafter, the on-site storage of the
hazardous solution until the periodic waste recovery service. By contrast, the
Company's products allow the use and re-use of the solvent by removing all the
contaminants from the solvent within the cleaning unit itself, minimizing the
volume of waste by-product and providing pure solvent to the customer on demand,
without the costly and dangerous storage and transportation of hazardous waste.
Moreover, the small amount of waste by-product yielded in the distillation
process utilized by the Company's products can typically be recycled and/or
disposed of together with the customer's used motor oil, which is generally not
classified as a hazardous waste.
In January 1997, the Company entered into a strategic alliance with First
Recovery and Valvoline Oil Company, two affiliates of Ashland Inc., a
multinational oil refiner and distributor of automotive related products,
including Valvoline Oil and Ashland 140 Solvent, one of the brands of mineral
spirits solvent used in the Company's SystemOne(R) Washer, and commenced a
national expansion program pursuant to which First Recovery will be the
exclusive sales representative of the SystemOne(R) Washer in 14 major
metropolitan markets across the United States.
In order to raise capital, in September 1996, the Company consummated an
underwritten initial public offering (the "IPO") of 1,100,000 shares of its
common stock, $.001 par value (the "Common Stock"), resulting in net proceeds to
the Company of $6,034,660 after deduction of underwriting, legal, accounting and
other offering related expenses. The proceeds of the IPO have been and will be
used primarily for, among other things, the development of manufacturing
capacity, marketing, research and development, sales and service centers,
corporate headquarters, and for working capital and general corporate purposes.
<PAGE>
INDUSTRY OVERVIEW
The Company believes the chemical industrial parts cleaning industry has grown
primarily in response to the demand for means of removing lubrication oils and
other contaminants from tools and parts during automotive, aviation, marine and
general industrial maintenance, service and repair operations. Based on
financial and trade journal reports, the Company believes that in 1996
businesses in the United States incurred more than $1 billion in expenses to
clean industrial parts using chemical cleaning techniques. Industrial parts
cleaning machines are used by automotive, aviation and maritime service, repair
and rebuilding facilities, gas stations, transmission shops, parts
remanufacturers, machine shops, and general manufacturing operations of every
size and category requiring parts cleaning.
The Company believes that the level of demand for the different types of
industrial parts cleaning machines and services is and will continue to be a
function of, among other things: (1) the effectiveness of the technology; (2)
the cost of the machines and services; (3) the time and costs associated with
documenting compliance with applicable environmental and other laws; (4) the
safety and environmental risks associated with the machines and services; (5)
customer service; and (6) the difficulty in handling the regulated substances
used and/or generated by competitive machines.
PRODUCTS
The Company's product line includes a variety of self-contained recycling
industrial cleaning and washing equipment, all of which incorporate proprietary
waste minimization technology with respect to which the Company has obtained or
applied for patent protection. The Company expects that all of the products
listed below will be available for commercial exploitation at various times
prior to December 31, 1998. All of the Company's products utilize technology
that (i) provides continuously recycled cleaning solution during the cleaning
process, (ii) eliminates the necessity for continual replacement and disposal of
contaminated cleaning solution and residues and (iii) facilitates practical and
cost effective compliance with environmental laws and regulations. The Company
offers its various parts washing products to commercial users at prices which
range from $2,000 to $25,000 per unit.
SYSTEMONE(R) WASHER.
The first of the Company's products to be available in commercial quantities is
the SystemOne(R) Washer. The SystemOne(R) Washer line provides users with pure
mineral spirit solvent, on demand, for parts and tools cleaning purposes,
utilizing a low-temperature vacuum distillation process to recycle the used
solvent within the SystemOne(R) Washer, so that the solvent may be used and
reused without any need for off-site processing. The SystemOne(R) Washer
minimizes the volume of waste by-product and eliminates the need for storage and
disposal of the hazardous waste solvent necessitated by the most widely-used
current treatment method. The Company has obtained patent protection for the
SystemOne(R) Washer.
The Company's SystemOne(R) Washer consists of one or two washing sinks mounted
at standing level on top of a metal cabinet; a hinged lid on top of the washing
sink to minimize evaporation of solvent; a five gallon primary solvent holding
tank; a distillation unit which contains a residue reservoir; and a 30-gallon
secondary solvent holding tank. The SystemOne(R) Washer utilizes a manually
operated hose and scrubber which directs the flow of solvent to the part being
cleaned.
The distillation unit separates the solvent from the contaminants that
accumulate in the solvent as a result of use by heating the solvent solution in
a vacuum to a temperature at which the solvent, but not the residue, vaporizes;
<PAGE>
and then, cooling the solvent vapor so that the vapor condenses and is converted
back into a liquid. The distilled solvent is channeled to the secondary solvent
holding tank for future use. Accordingly, the solvent may be repeatedly used,
distilled and reused without need for off-site distillation or processing. The
residue is collected and held in the residue reservoir until final disposal. If
used in accordance with the manufacturer's instructions, the Company believes
that the residue generated by its SystemOne(R) washer may typically be legally
recycled and/or disposed of in the same manner that used oil is recyled and/or
disposed of.
The Company has also developed and obtained patent protection with respect to a
general parts washer which utilizes an aqueous based cleaning solution. The
Company is in the process of evaluating when it will commence the commercial
production and marketing of its aqueous based parts cleaner.
The target market for SystemOne(R) Washers are automotive, aviation and maritime
service, repair and rebuilding facilities, gas stations, transmission shops,
parts remanufacturers, machine shops, and general manufacturing operations of
every size and category requiring small parts cleaning. The SystemOne(R) Washer
will generally require service approximately four times a year for replacement
of solvent lost to evaporation or spillage and general maintenance requirements.
SYSTEMONE(R) SPRAY GUN WASHER is scheduled for commercial introduction in
the fourth quarter of 1997. It incorporates the Company's recycling/reclamation
capabilities for paint thinner recovery. The target market for spray gun washers
are automotive, aviation and maritime paint shops and all general manufacturing
operations that incorporate painting operations. The Company anticipates that
the auto paint industry will represent a substantial market. The SystemOne(R)
Spray Gun Washer facilitates compliance with rigorous environmental disposal
regulations for the paint industry.
MULTIPROCESS POWER SPRAY WASHER is currently manufactured and
marketed on a limited basis, and integrates three processes in one
self-contained machine; a power spray wash process, a recycling/ reclamation
process and a thermal oxidation process. The Power Spray Washer is able to
accommodate large and bulky parts or units that are too large for the
SystemOne(R) Washer. The target market for power spray washers are automotive,
aviation and maritime maintenance, repair and rebuilding facilities, parts
remanufactures, machine shops, transmission shops, and all facets of general
manufacturing requiring maintenance and repair of mechanical equipment.
MULTIPROCESS IMMERSION WASHER is scheduled for commercial introduction in
the fourth quarter of 1997. It integrates an immersion wash process, a
recycling/reclamation process and a thermal oxidation process in one
self-contained machine. The MultiProcess Immersion Washer is designed for the
cleaning of complex parts containing substantial integral and highly
inaccessible passages requiring a total immersion washing. The primary target
market for immersion washers are radiator rebuilding shops as well as
automotive, aviation and maritime maintenance, repair and rebuilding facilities,
parts remanufactures, machine shops, transmission shops, and all facets of
general manufacturing requiring maintenance and repair of mechanical equipment.
MINIDISPOSER is scheduled for commercial introduction in 1998. It is a
compact and portable mini-thermal oxidizer developed as a practical and
efficient means for the disposal of contaminants by thermal oxidation within a
unit measuring only one cubic foot. The MiniDisposer will be marketed both as
optional equipment with the SystemOne(R) Washer and as a stand alone
mini-thermal oxidizer. The Company believes that the size and scope of the
market for the MiniDisposer is substantial and diversified and includes
industrial, commercial and consumer applications that generate small waste
by-products. The Company continues to explore potential markets in medical,
restaurant and other commercial and consumer applications.
<PAGE>
COMPETITION
The industrial parts cleaning industry is highly competitive and dominated by
one large competitor, Safety-Kleen Inc. ("Safety-Kleen"), which has
substantially greater financial and other resources than the Company.
Safety-Kleen services the parts cleaning industry through a "closed-loop"
recycling system in which contaminated solvent is removed for recycling at
regional refining facilities and fresh solvent is delivered on a periodic basis.
There can be no assurance that Safety-Kleen will not develop or acquire
technology similar to or different from the Company's that would allow it to
provide an on-site recycling service. To the best of the Company's knowledge, no
other company is currently commercially marketing a recycling parts washer with
comparable characteristics to those of the Company's products. If the Company's
competitors are successful in acquiring or developing patent rights for a
recycling parts washer competitively superior to the Company's, the Company's
ability to compete may be adversely affected. There can be no assurance that
Safety-Kleen or other competitors will not acquire or develop patent rights with
respect to a recycling parts washer which are competitively superior to the
Company's patent rights. See "Patents, Trademarks and Proprietary Technology."
The Company believes that certain of its target customers have attempted to
enhance the capabilities of their existing industrial parts washers by acquiring
machines capable of distilling solvent with machinery removed from the parts
washers. Although there are a wide variety and types of such machinery currently
available to the public, the Company believes its SystemOne(R) Washers provide
superior service at a lower cost.
The Company believes that Safety-Kleen services a significant portion of the
parts washing machines currently in use. The Company believes that no other
competitor accounts for more than 2% of the industrial parts washer market in
the State of Florida or the United States.
The Company believes that its SystemOne(R) Washer competes favorably with its
competitors on the basis of, among other things, (1) the effectiveness of the
technology; (2) cost and productivity savings; (3) reduced time and costs
associated with documenting compliance with applicable environmental and other
laws; (4) elimination of the safety and environmental risks associated with the
competitor's machines and services; (5) customer service; and (6) the difficulty
in handling the regulated substances used and/or generated by competitive
machines.
GOVERNMENT REGULATION
Federal and state laws and regulations have been instrumental in shaping the
industrial parts washing industry. Federal and state regulations dictate and
restrict to varying degrees what types of cleaning solvents may be utilized, how
a solvent may be stored and utilized, and the manner in which contaminated
solvents may be generated, handled, transported, recycled and disposed of.
Although the federal and state laws and regulations discussed below regulate the
behavior of the Company's customers, and not the Company, the Company believes
that customer demand for its SystemOne(R) Washer is partially a function of the
legal environment in which the Company's customers conduct business. The
Company's SystemOne(R) Washer was designed to help minimize the cost of
complying with existing federal and state environmental laws and regulations.
Any changes, relaxation or repeal of the federal or state laws and regulations
which have shaped the industrial parts washing industry may significantly affect
demand for the Company's products and the Company's competitive position.
REGULATION OF SOLVENT TYPES. Federal and state regulations have restricted the
types of solvents that may be utilized in industrial parts cleaning machines.
Prior to December 1995, methyl chloroform was a widely
<PAGE>
used cleaning solvent. The Clean Air Act of 1990 mandated the elimination of
methyl chloroform by December 1995.
REGULATION OF HANDLING AND USE OF SOLVENTS. Stoddard solvents, more commonly
known as mineral spirits and solvent naphtha, are the cleaning solvents
typically used in the industrial parts washers of the Company's closest
competitors. The Company intends to use mineral spirits with a minimum of 140
degrees fahrenheit ignitable limits in its SystemOne(R) Washer. Such mineral
spirits do not exhibit the ignitability characteristic for liquid hazardous
wastes as defined in the Resource Conservation and Recovery Act of 1976, as
amended, and the implementing regulations of that statute adopted by the United
States Environmental Protection Agency (the "EPA") (collectively, "RCRA").
Certain machines of the Company's competitors use mineral spirits with lower
ignitable limits, which may, after use, render such mineral spirits subject to
regulation as a hazardous waste. The Company believes that the ability to
recycle the mineral spirits used in its SystemOne(R) Washer provides an economic
benefit to the Company's customers by allowing them to avoid the expenses and
potential liability associated with the disposal of such solvent as a hazardous
waste.
Federal, State and many local governments have adopted regulations governing the
handling, transportation and disposal of such solvents. On the federal level,
under the Hazardous Materials Transportation Act (HMTA), the United States
Department of Transportation has promulgated requirements for the packaging,
labeling and transportation of mineral spirits in excess of specified
quantities. The Company does not intend to transport mineral spirits in
quantities that would trigger the HMTA requirements.
Relative to the handling and disposal of mineral spirits, many states and local
governments have established programs requiring the assessment and remediation
of hazardous materials that have been improperly discharged into the
environment. Liability under such programs is possible for unauthorized release
of mineral spirits in violation of applicable standards. Civil penalties and
administrative costs may also be imposed for such violations.
REGULATION OF GENERATION, TRANSPORTATION, TREATMENT, STORAGE AND DISPOSAL OF
CONTAMINATED SOLVENTS. The generation, transportation, treatment, storage and
disposal of contaminated solvents is regulated by the federal and state
governments.
At the federal level, the Resource Conservation and Recovery Act authorized the
EPA to develop specific rules and regulations governing the generation,
transportation, treatment, storage and disposal of hazardous wastes as defined
by the EPA. The EPA's definition of hazardous waste appears under Chapter 40 CFR
Part 261. The Company believes that none of the residue by-products, the used
solvent before distillation or the solvent recycled in a SystemOne(R) Washer
used in accordance with its intended purpose and instructions is subject to
regulation as a "hazardous waste." By contrast, the Company believes that the
mixture of solvent and contaminants which is periodically recovered from the
machines of many of its competitors is subject to regulation as "hazardous
waste."
The Company believes that the ability to recycle and manage its residue
by-product as used oil rather than as a hazardous waste is economically
attractive to the Company's customers for a number of reasons. The Company
believes that substantially all of its target customers currently have
established systems for the handling, transportation, recycling and/or disposal
of used oil. Accordingly, the classification of the residue as used oil would
enable the Company's customers to: (1) dispose of or recycle the residue at no
significant additional cost; and (2) avoid certain costs associated with
establishing and disposing of wastes in compliance with a hazardous waste
disposal system.
<PAGE>
Even if the residue by-product was required to be handled, transported, recycled
and/or disposed of as a hazardous waste, the fact that the SystemOne(R) Washer
effects a substantial reduction in the volume of waste product requiring
disposal would still serve to minimize disposal costs.
The Company believes that solvent which has been used and is being held in a
SystemOne(R)Washer prior to distillation is not a "waste" and is not subject to
regulation as a hazardous waste.
The Company believes that the demand for its SystemOne(R) Washer is enhanced as
a result of certain federal and state environmental laws and regulations.
Although the demand for industrial parts cleaning machines and services may be
substantial in certain international markets, the level of demand for the
Company's SystemOne(R) Washer may not be substantial in certain countries as a
result of permissive regulatory systems which allow the use of less
environmentally stringent cleaning and waste disposal methods.
MANUFACTURING AND SUPPLY
On May 7, 1996, the Company entered into an agreement (the "Supply Agreement")
with a supplier (the "Supplier") pusuant to which the Supplier agreed to supply
to the Company, at the Company's election, between 3,000 and 5,000 SystemOne(R)
units per year at established prices and in accordance with a delivery schedule.
During the fourth quarter of 1996, the Company terminated the supply agreement
and entered into a mutual release agreement pursuant to which the Company paid
$139,673 to the Supplier for amounts outstanding under the Supply Agreement,
inclusive of a $50,000 advance.
The Company currently manufactures its SystemOne(R) Washers at its 20,000 square
foot manufacturing facilities located in Miami, Florida, at which all
manufacturing operations, including design, metal cutting, bending and welding,
painting and assembly can be performed. The Company has acquired all of the
machinery necessary to manufacture SystemOne(R) Washers. The Company believes
that it can produce up to 400 SystemOne(R) Washers a month at its current
manufacturing facility. The Company intends to secure additional manufacturing
capacity as the need arises.
The SystemOne(R) Washer is an assembly of raw materials and components all of
which the Company believes are readily obtainable. The Company does not believe
that it is dependent upon any of its respective current suppliers to obtain the
raw materials and components necessary to assemble and manufacture SystemOne(R)
Washers.
The Company is capable of manufacturing its other products in the amounts
required for testing and test marketing in its own manufacturing facility.
DISTRIBUTION
In January 1997, the Company entered into an agreement with the Valvoline
Company and First Recovery, both affiliates of Ashland Inc., to serve as the
Company's exclusive sales representative in a territory comprising 14
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major metropolitan markets across the United States (the "Territory"). The
agreement has a term of one year. Either party may terminate the agreement at
any time, with or without cause, upon 90 days written notice. Pursuant to the
terms of the agreement, Ashland receives a commission on all units sold.
The marketing program with Ashland commenced in January 1997 and replaced the
Company's limited original pilot program with Valvoline and First Recovery
covering the Dallas and Houston markets. To assist in the marketing and support
of this agreement, the Company plans to open support centers in each of the
metropolitan areas comprising the Territory. Since the Valvoline Company and
First Recovery have extensive sales forces, the Company does not plan to hire
additional sales staff at this time. Although this program to date is proceeding
as planned, there can be no assurance of the success of the program. The Company
may market and service the SystemOne(R) Washers outside the Territory with its
own marketing, service and technical support personnel.
In addition to its sales and service operations in Miami, during 1996 the
Company established sales, service and technical support service centers in
Orlando, Tampa, Jacksonville and West Palm Beach, Florida in order to support
its operations in Florida.
The Company intends to continue to generate consumer awareness of its
SystemOne(R) Washer through internal marketing efforts, general advertisements
in trade publications, and participation in trade conventions.
SALES FINANCING AND SERVICING PROGRAMS
To date, the Company has made its SystemOne(R) Washers available to the public
through a third party leasing program. The Company entered into an agreement
(the "Product Financing Agreement") with Oakmont Financial Services ("Oakmont")
on May 28, 1996 pursuant to which Oakmont agreed to provide third party leasing
services to customers leasing SystemOne(R) Washers. Oakmont may reject a lease
application if, in its sole discretion, the proposed transaction does not comply
with Oakmont's then applicable criteria. If Oakmont elects to provide lease
financing, Oakmont purchases the SystemOne(R) Washer from the Company at an
agreed upon price.
The Product Financing Agreement provides that, upon the customer's satisfaction
of all of its lease payment obligations to Oakmont, the Company may, at its
option, repurchase the subject equipment from Oakmont at a cash purchase price
equal to the fair market value of the subject equipment plus applicable sales
tax. The Product Financing Agreement states that the fair market value of a
SystemOne(R) Washer shall be determined by the mutual agreement of the Company
and Oakmont or, if such an agreement is not reached, by an appraiser selected by
mutual agreement of the Company and Oakmont.
Under the Product Financing Agreement, the Company has agreed, for a fee, to
utilize a reasonable and non-discriminatory approach to assist Oakmont in
reselling any SystemOne(R) Washers with respect to which a customer has failed
to discharge its payment obligations to Oakmont. The Product Financing Agreement
states that Oakmont does not have recourse against the Company for customer
failures to discharge their obligations to Oakmont unless the Company has
breached and failed to cure certain warranties, including warranties related to
product use and performance, as well as warranties relating to information
provided by the lessee. In the event the Company breaches its warranty and fails
to cure the breach, the Product Financing Agreement requires the Company to
purchase from Oakmont the leased equipment and Oakmont's rights under the lease
agreements with the customer for an amount equal to the sum of all lease
payments then due and owing under the lease, all lease payments payable from the
date of default to the end of the lease term, less any applicable deposit which
may be retained by Oakmont.
The Product Financing Agreement has a term of one year, which term automatically
renews for successive one-year terms. Under the Product Financing Agreement,
either the Company or Oakmont may terminate the
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agreement with or without cause upon 60 days notice, without affecting the
rights and obligations of either party with respect to previous sales. In
addition, if Oakmont declines any five lease applications within a 30-day
period, which lease applications are accepted and funded by a third party on
terms declined by Oakmont, the Company may, upon 10 days notice, terminate the
Product Financing Agreement.
PATENTS, TRADEMARKS AND PROPRIETARY TECHNOLOGY
The Company holds one or more United States patents relating to its SystemOne(R)
Washer, Power Spray Washer, Spray Gun Washer, Immersion Washer and Thermal
Oxidizer and anticipates that it will apply for additional patents it deems
appropriate. The Company has applied for international patents in Canada, Japan,
Europe and Mexico.
The Company's patents with respect to its SystemOne(R) Washer were issued on
September 27, 1994 and August 27, 1996 and will expire on September 26, 2011 and
August 26, 2012, respectively. The Company has four additional patents pending
with the U.S. Patent Office with respect to its SystemOne(R) Washer. The
Company's patent with respect to its Power Spray Washer was issued on January
11, 1994, and expires on January 10, 2011. The Company's patent with respect to
its Spray Gun Washer was issued on February 14, 1995, and expires on February
13, 2012. The Company's patent with respect to its Immersion Washer was issued
on May 21, 1996 and expires on May 20, 2013. The Company's patent with respect
to its MiniDisposer was issued on December 3, 1996 and expires on December 2,
2013. The Company believes that patent protection is important to its business.
There can be no assurance as to the breadth or degree of protection which
existing or future patents, if any, may afford the Company, that any patent
applications will result in issued patents, that patents will not be
circumvented or invalidated or that the Company's competitors will not commence
marketing self-contained washers with similar technology. It is possible that
the Company's existing patent rights may not be valid although the Company
believes that its patents and products do not and will not infringe patents or
violate proprietary rights of others. It is possible that infringement of
existing or future patents or proprietary rights of others may occur. In the
event the Company's products or processes infringe patents or proprietary rights
of others, the Company may be required to modify the design of its products or
obtain a license. There can be no assurance that the Company will be able to do
so in timely manner, upon acceptable terms and conditions or at all. The failure
to do any of the foregoing could have a material adverse effect upon the
Company. In addition, there can be no assurance that the Company will have the
financial or other resources necessary to enforce or defend a patent
infringement or proprietary rights violation actions. Moreover, if the Company's
product or processes infringes patents or proprietary rights of others, the
Company could, under certain circumstances, become the subject of an immediate
injunction and be liable for damages, which could have a material adverse
effect on the Company.
In December 1996, the Company received a federal trademark with respect to the
mark "SystemOne" and design.
The Company also relies on trade secrets and proprietary know-how and employs
various methods to protect the concepts, ideas and documentation of its
proprietary information. The Company has entered into confidentiality agreements
with its employees, suppliers and appropriate vendors. However, such methods may
not afford complete protection and there can be no assurance that others will
not independently develop such know-how or obtain access to the Company's
know-how, concepts, ideas and documentation.
RESEARCH AND DEVELOPMENT
During the years ended December 31, 1996 and 1995, the Company expended $684,467
and $393,874, respectively, on research and development of its various products.
The Company plans to continue to focus significant resources on research and
development of existing and future product lines. The Company recognizes that
the industrial parts cleaning industry may be entering a phase of rapid
technological change and progress and the Company will seek to retain what the
Company perceives as its technological superiority over its competitors'
products. In order to keep pace with the rate of technological change, the
Company intends to devote considerable resources in time, personnel and funds on
continued research and development for its products. Accordingly, the Company
anticipates that its research and development costs will continue to increase
for the foreseeable future.
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EMPLOYEES
As of March 1, 1997, the Company employed 47 employees, of whom 6 were in
corporate management, 2 were in research and development, 11 were in sales and
marketing, 25 were in manufacturing, and 3 were in administration. To date, the
Company has had no difficulty attracting and retaining qualified employees. The
Company considers its relations with its employees to be good.
ITEM 2. PROPERTIES.
The Company maintains its corporate headquarters, research and development
laboratory and manufacturing facilities in two 10,000 square foot buildings
located in Miami, Florida pursuant to leases which expire on December 31, 1998.
The Company has entered into a new lease with respect to a 30,000 square foot
facility located in Miami, Florida which will become the Company's primary
manufacturing facility commencing on or about June 1, 1997. The lease for this
new facility commences on or about June 1, 1997 and expires on or about July 31,
2002. Branch support center leases have been entered into in Florida and Texas
to serve those markets. Such leases have terms of one to two years and require
monthly rental payments ranging from $450.00 to $862.50. Several additional
support centers throughout the United States are planned in order to serve
additional markets. The Company believes that its current manufacturing
facilities, including the new facility, are suitable for their intended purposes
and have capacities adequate for the current and projected needs for the
Company's products. The estimated future minimum lease payments for 1997 under
non-cancelable operating leases are $143,752.
ITEM 3. LEGAL PROCEEDINGS.
The Company is not involved in any litigation.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No matters were submitted to a vote of the Company's security holders during the
fourth quarter of the fiscal year ended December 31, 1996.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.
The Company's Common Stock has traded on the NASDAQ SmallCap Market System under
the symbol MANS since September 27, 1996, the date of the IPO. The following
table sets forth, for the periods indicated, the high and low per share bid
prices of the Common Stock as reported on the NASDAQ Small Cap Market:
HIGH LOW
--------- ---------
Third Quarter 1996 (beginning September 27, 1996) $ 9.25 $ 8.13
Fourth Quarter 1996 $ 8.63 $ 7.00
First Quarter 1997 (through February 28, 1997) $ 16.00 $ 7.69
No cash dividends have been paid to date by the Company on its Common Stock. The
Company intends to retain all future earnings for the operation and expansion of
its business and does not anticipate the payment of dividends in the foreseeable
future. Any future determination as to the payment of cash dividends will depend
upon a number of factors, including future earnings, results of operations,
capital requirements, the Company's financial condition and any restrictions
under credit or other agreements existing from time to time, as well as such
other factors as the Board of Directors may deem relevant.
<PAGE>
As of March 1, 1997, the Company had approximately 59 shareholders of record.
There are in excess of 250 beneficial owners of the Company's Common Stock.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
GENERAL
Since its inception in November 1990 the Company has devoted substantially all
of its resources to research and development programs relating to its full line
of self contained, recycling industrial parts washers. The Company was a
development stage company through June 30, 1996, and commenced its planned
principal operations in July 1996. The Company has been unprofitable since its
inception and it anticipates that it will incur losses until such time as the
Company is able to generate sufficient revenues to offset its operating costs
and the costs of its continuing expansion. In light of the material
uncertainties in connection with the commencement of the Company's operations,
the Company cannot reasonably estimate the length of time before the Company may
generate net income, if ever.
The Company has made its SystemOne(R) Washer and services available to the
public through a third party leasing program. The Company recognizes the revenue
from the sale of a machine at the time that the equipment is delivered either to
the third party lessor or directly by the Company to the lessee. A portion of
the revenue (currently estimated at 10% of the sale price per machine) is
accounted for as deferred revenue, and recognized as revenue with respect to the
service portion of the agreement over the term of the underlying lease.
RESULTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996 COMPARED TO YEAR ENDED DECEMBER 31, 1995.
The Company was a development stage company and did not generate any operating
revenues prior to June 30, 1996. Therefore, comparison between the periods
presented is not meaningful in certain instances.
The Company generated revenues of $735,745 for the year ended December 31, 1996
in connection with the sale of the Company's SystemOne(R) Washers. During 1996,
the Company sold 287 SystemOne(R) Washers, substantially all of which were made
under the Product Financing Agreement with Oakmont.
The Company's cost of goods sold for the year ended December 31, 1996 were
$581,261, which, as a percentage of net sales, represented 79.0% for the year
ended December 31, 1996. Cost of sales is comprised of direct material cost,
direct labor cost, and manufacturing overhead expenses. As the number of units
produced increases, the Company anticipates that the cost of goods sold as a
percentage of sales should decrease as a result of achieving economies of scale.
The Company's research and product development expenses for the year ended
December 31, 1996 increased by 74% to $684,467 from $393,874 for the comparable
period in 1995. This increase is primarily related to the Company's accelerated
development of the SystemOne(R) prototype during 1996, as opposed to the basic
and applied research conducted during the earlier period. During 1996, the
Company manufactured and delivered SystemOne(R) Washers to various potential
customers in order to test market receptivity.
The Company's selling, general and administrative expenses for the year ended
December 31, 1996 increased by 84% to $1,670,383 from $907,393 for the
comparable period in 1995. The increase in selling, general and administrative
expense is due to the hiring of additional marketing staff. The Company
anticipates that its monthly general and administrative expenses will continue
to increase over the next twelve months as the Company expands in accordance
with its proposed business plan. However, a portion of the selling, general
<PAGE>
and administrative expenses are considered fixed; therefore, the Company
anticipates that selling, general and administrative expenses as a percentage of
revenue will decrease as the fixed costs are spread over a higher volume of
sales.
The Company recognized net interest income of $46,345 for 1996 as compared to
net interest expense of $(17,878) for 1995. The Company's interest income for
the year ended December 31, 1996 was due to the decrease in indebtedness of the
Company and from the investment of the proceeds from the IPO in interest and
cash equivalent instruments.
For the year ended December 31, 1996, the Company incurred an exchange expense
of $344,631 in connection with the conversion of all outstanding shares of
Series A Preferred Stock into shares of Common Stock.
For the year ended December 31, 1996, the Company paid dividends on redeemable
preferred stock of $147,000 compared with $222,067 for the year ended December
31, 1995.
As a result of the foregoing, the Company incurred net losses of $2,498,652 and
$1,319,145 for the years ended December 31, 1996 and 1995, respectively. The
Company's net losses to common shares for the years ended December 31, 1996 and
1995 were $2,645,652 and $1,541,212, respectively.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1996, the Company had working capital of $6,089,346 including
cash and cash equivalents of $5,320,608. In connection with the IPO, the Company
received net proceeds of $6,034,660 and retired $500,000 in principal amount of
short term notes. The IPO proceeds were invested in an institutional money
market fund and will be used to finance the Company's business plan as required.
The capital requirements relating to implementation of the Company's business
plan will be significant. Based on the Company's current assumptions relating to
implementation of its business plan (including the timetable of and the cost
associated with development of manufacturing capabilities, a service fleet, a
corporate headquarters, and research and development facilities), the Company
will seek to develop additional service centers as part of its product rollout.
The Company believes that its ability to generate cash from operations is
dependent upon, among other things, demand for its products and services and the
Company's third party leasing arrangement with Oakmont. If the Company's third
party leasing arrangements with Oakmont prove to be unsuccessful, and the
Company is unable to locate another third party willing to provide comparable
third party leasing services, the Company believes that it will be substantially
dependent upon the proceeds of the IPO to execute its proposed plan of
operations over the next 12 months. If the Company's plans change, its
assumptions prove to be inaccurate, the capital resources available to the
Company otherwise prove to be insufficient to implement its business plan (as a
result of unanticipated expenses, problems or difficulties, or otherwise), the
Company has plans to restructure its operations to minimize cash expenditures
and/or obtain additional financing in order to support its plan of operations.
In order to reduce certain of the Company's up-front capital requirements
associated with service center and service fleet development, the Company
intends to lease service center sites and may seek, to the extent possible, to
lease rather than purchase certain equipment and vehicles necessary for service
center development. There can be no assurance that the Company will have
sufficient capital resources to permit it to fully implement its business plan.
The Company has no current arrangements with respect to, or sources of,
additional financing. There can be no assurance that any additional financing
will be available to the Company on acceptable terms, or at all. If adequate
funds are not available from additional sources of financing, the Company's
business may be materially adversely affected. In addition, any implementation
of the Company's business plan subsequent to the 12 month period immediately
following the IPO will require capital resources substantially greater than the
proceeds of the IPO or otherwise currently available to the Comapny.
Aside from meeting SystemOne(R) Washer purchase and lease orders, the Company's
material commitments principally relate to its obligations to make lease
payments pursuant to certain real property and equipment leases (currently
approximately $13,061 per month), and make installment payments pursuant to an
equipment purchase finance agreement (currently approximately $5,690 per month).
The Company anticipates that its
<PAGE>
material commitments will increase significantly over the next 12 months as a
result of the Company's planned expansion.
In August 1994, the Company acquired a Trumpf Model 200 TC Computer Numerical
Controlled Punch Press (the "Punch Press"). The Company financed the acquisition
of the Punch Press pursuant to a finance and security agreement with The CIT
Group/Equipment Financing, Inc. ("CIT"). Pursuant to the terms of the finance
agreement and security agreement, the Company has agreed to pay CIT an aggregate
of $341,397 in equal monthly payments of $5,690 over five years. The Company's
obligations to CIT are secured by a security interest in the Punch Press.
As of December 31, 1996, the Company's accumulated deficit totaled $4,729,866.
Since its inception, the Company has financed its operations through a variety
of stock and debt issuances and conversions and the sale of property, some of
which are described below.
In November 1994, the Company borrowed $500,000 pursuant to a 12% Secured
Convertible Promissory Note (the "Secured Note"). In April 1995 the Company
issued 490,000 shares of 12% Cumulative Convertible Preferred Stock (the "Series
A Preferred Stock") in exchange for $1,950,000 in cash and the satisfaction of
the Secured Note.
In May 1995, in order to minimize the Company's dividend obligations, the
Company converted 580,000 shares of First Series Preferred Stock, and
subsequently, all of the outstanding shares of First Series Preferred Stock and
accrued interest thereon were converted into an aggregate 656,729 shares of
Common Stock.
In May 1996, the Company issued 20,000 shares of Common Stock in satisfaction of
a promissory note in the principal amount of $100,000.
In June 1996, the Company issued 628,180 shares of Common Stock in exchange for
all of the Series A Preferred Stock and accrued dividends thereon.
Pursuant to a revolving line of credit dated June 1, 1990, Mr. Paul Mansur, the
Company's Chief Executive Officer and Director, advanced the Company an
aggregate of $150,000 (the "Debt") between June 1, 1990 and May 31, 1996. On
December 31, 1994 and December 31, 1995, the Company paid Mr. Paul Mansur
$34,814 and $12,000, respectively, in satisfaction of interest owed with respect
to the Debt. On May 31, 1996, the Company paid Mr. Paul Mansur $150,000 and
$5,000 in satisfaction of the outstanding principal balance of and the interest
owed with respect to the Debt.
In June 1996, the Company issued (the "Private Financing") $1,012,500 in
principal amount of Convertible Notes, bearing interest at the rate of 4% per
annum through September 30, 1996 and thereafter until maturity at the rate of
12% per annum, and convertible into Common Stock at a conversion price of $6.75
per share. Pursuant to the provisions of the Convertible Notes, the entire
outstanding principal amount was converted into 150,000 shares of Common Stock
in connection with the IPO.
As of September 9, 1996, the Company issued $500,000 in principal amount of
Short Term Notes, bearing interest at the rate of 4% through September 1996 and
12% thereafter. The Short Term Notes were retired in connection with the IPO.
The Company's cash and cash equivalents balance increased by $4,404,225 during
the year ended December 31, 1996 to an ending balance of $5,320,608. At December
31, 1996, the Company had working capital of $6,089,346.
<PAGE>
CAUTIONARY STATEMENT RELATING TO FORWARD LOOKING STATEMENTS.
- ------------------------------------------------------------
The foregoing Management's Discussion and Analysis contains various "forward
looking statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which represent the Company's expectations or beliefs concerning future
events, including, but not limited to, statements regarding growth in sales of
the Company's products and the sufficiency of the Company's cash flow for its
future liquidity and capital resource needs. These forward looking statements
are further qualified by important factors that could cause actual results to
differ materially from those in forward looking statements. These factors
include, without limitation, increased competition, the sufficiency of the
Company's patents, the ability of the Company to manufacture its systems on a
cost effective basis, market acceptance of the Company's products and the
effects of governmental regulation. Results actually achieved may differ
materially from expected results included in these statements as a result of
these or other factors.
ITEM 7. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
This item begins on the next page.
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Mansur Industries Inc.:
We have audited the accompanying balance sheets of Mansur Industries Inc. as of
December 31, 1996 and 1995, and the related statements of operations,
stockholders' equity (deficit) and cash flows for the years then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Mansur Industries Inc. as of
December 31, 1996 and 1995 and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
KPMG PEAT MARWICK LLP
February 10, 1997
Miami, Florida
<PAGE>
<TABLE>
<CAPTION>
MANSUR INDUSTRIES INC.
BALANCE SHEETS
December 31, 1996 and 1995
ASSETS 1996 1995
------ ---- ----
<S> <C> <C>
Current assets:
Cash $ 5,320,608 916,383
Accounts receivable 569,926 --
Inventory 617,465 193,838
Other assets 29,700 18,290
----------- -----------
Total current assets 6,537,699 1,128,511
Intangible assets 46,166 --
Property and equipment, net 373,513 324,431
----------- -----------
Total assets $ 6,957,378 1,452,942
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses 297,747 219,477
Deferred revenue 95,160 --
Due to officers/shareholders -- 250,000
Current installments of long-term debt 55,446 45,846
----------- -----------
Total current liabilities 448,353 515,323
Long-term debt, excluding current installments 118,432 154,165
----------- -----------
Total liabilities 566,785 669,488
----------- -----------
Convertible redeemable preferred stock, $1 par value.
Authorized 1,500,000 shares, issued and outstanding 0 and
490,000 shares at December 31, 1996 and 1995, respectively -- 2,573,863
Stockholders' equity (deficit):
Common stock, $0.001 par value. Authorized
25,000,000 shares, issued and outstanding 4,601,309
and 2,673,129 for 1996 and 1995, respectively 4,601 2,673
Additional paid-in capital 11,115,858 438,132
Accumulated deficit (4,729,866) (2,231,214)
----------- -----------
Total stockholders' equity (deficit) 6,390,593 (1,790,409)
----------- -----------
Total liabilities and stockholders' equity
(deficit) $ 6,957,378 1,452,942
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MANSUR INDUSTRIES INC.
STATEMENTS OF OPERATIONS
For the years ended December 31, 1996 and 1995
1996 1995
---- ----
<S> <C> <C>
Revenues $ 735,745 --
Costs of goods sold (581,261) --
----------- -----------
Gross profit 154,484 --
Operating expenses:
General and administrative 1,670,383 907,393
Research and development 684,467 393,874
----------- -----------
Total operating expenses 2,354,850 1,301,267
----------- -----------
Loss from operations (2,200,366) (1,301,267)
Interest expense (41,432) (63,528)
Interest income 87,777 45,650
Exchange expense on redeemable preferred stock (344,631) --
----------- -----------
Net loss (2,498,652) (1,319,145)
Dividends on redeemable preferred stock (147,000) (222,067)
----------- -----------
Net loss to common shares $(2,645,652) (1,541,212)
=========== ===========
Net loss per common share $ (0.78) (0.66)
=========== ===========
Weighted average shares outstanding 3,378,008 2,335,140
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MANSUR INDUSTRIES INC.
Statements of Stockholders' Equity (Deficit)
December 31, 1996 and 1995
COMMON STOCK
----------------------------- TOTAL
PREFERRED STOCK ADDITIONAL STOCKHOLDERS'
------------------ PAID-IN ACCUMULATED EQUITY
SHARES AMOUNT SHARES PAR CAPITAL DEFICIT (DEFICIT)
------ ------ ------ --- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1994 580,000 $633,929 2,000,000 $2,000 ($12,257) ($912,069) ($922,326)
Issuance of preferred stock
in exchange for cash and
note payable, net of costs 490,000 2,374,596 - - - - -
Accrued dividends on
preferred stock - 22,800 - - (22,800) - (22,800)
Conversion of preferred stock
and accrued dividends to
common stock (580,000) (656,729) 656,729 657 656,072 - 656,729
Accrued dividends on
preferred stock - 199,267 - - (199,267) - (199,267)
Issuance of common stock in
exchange for services
rendered - - 16,400 16 16,384 - 16,400
Net loss - - - - - (1,319,145) (1,319,145)
-------- ---------- --------- ------ ----------- ----------- ----------
Balance at December 31, 1995 490,000 2,573,863 2,673,129 2,673 438,132 (2,231,214) (1,790,409)
Issuance of common stock in
exchange for services
rendered - - 30,000 30 104,970 - 105,000
Conversion of note payable
into common stock - - 20,000 20 99,980 - 100,000
Accrued dividends on
preferred stock - 147,000 - - (147,000) - (147,000)
Exchange of preferred stock
and accrued dividends to
common stock (490,000) (2,720,863) 628,180 628 3,064,866 - 3,065,494
Issuance of common stock
resulting from conversion
of notes payable and
interest 150,000 150 1,021,350 - 1,021,500
Issuance of common stock
resulting from initial
public offering
including conversion
of notes payable,
net of costs - - 1,000,000 1,000 5,875,560 - 5,876,560
Issuance of common stock for
underwriter overallotment,
net of costs - - 100,000 100 658,000 - 658,100
Net loss - - - - - (2,498,652) (2,498,652)
-------- ---------- --------- ------ ----------- ----------- ----------
- $ - 4,601,309 $4,601 $11,115,858 ($4,729,866) $6,390,593
======== ========== ========= ====== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MANSUR INDUSTRIES INC.
STATEMENTS OF CASH FLOWS
For years ended December 31, 1996 and 1995
1996 1995
---- ----
<S> <C> <C>
Cash used in operating activities:
Net loss $(2,498,652) (1,319,145)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation 48,172 42,404
Stock issued for services 105,000 16,400
Interest expense on notes payable converted to common stock 9,000 --
Changes in operating assets and liabilities:
Accounts receivable (569,926) --
Inventory (423,627) (95,245)
Other assets (11,410) (7,884)
Intangibles (46,166) --
Accounts payable and other accrued expenses 78,270 167,786
Deferred revenue 95,160 --
----------- -----------
Net cash used in operating activities (3,214,179) (1,195,684)
----------- -----------
Investing activities:
Purchase of property and equipment (97,277) (15,062)
Proceeds from mortgage note receivable -- 200,000
----------- -----------
Net cash used in investing activities (97,277) 184,938
----------- -----------
Financing activities:
Proceeds from notes payable and line of credit 1,512,500 --
Repayment of notes payable (176,110) (43,637)
Proceeds from issuance of common stock 6,034,660 --
Proceeds from issuance of preferred stock -- 1,950,000
Exchange expense on preferred stock exchanged for common stock 344,631 --
----------- -----------
Net cash provided by financing activities 7,715,681 1,906,363
----------- -----------
Net increase (decrease) in cash 4,404,225 895,617
Cash, beginning of period 916,383 20,766
----------- -----------
Cash, end of period $ 5,320,608 916,383
=========== ===========
Supplemental cash flow disclosure:
Interest paid $ 41,432 63,528
=========== ===========
</TABLE>
Supplemental disclosures of noncash investing and financing activities:
During 1995, convertible preferred stock in the amount of $580,000 and
related accrued dividends in the amount of $76,729 were converted to
common stock [see note 6(b)].
During 1996, the Company exchanged 490,000 shares of preferred stock in
the amount of $2,374,596 plus related accrued dividends of $346,267 for
628,180 shares of common stock. In connection with this transaction
the Company recorded an exchange expense of 12% in the amount of
$344,631 [note 6(a)].
In connection with the Company's initial public offering, $500,000 in
notes payable were converted to common stock.
<PAGE>
MANSUR INDUSTRIES INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
(1) THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Mansur Industries Inc. (the "Company") is primarily engaged in
research and development, marketing, and production of industrial
parts cleaning equipment for use in automotive, marine, airline and
general manufacturing industries. The Company's focus is on the
design, development and manufacture of industrial cleaning equipment
which incorporates continuous recycling and recovery technologies
for solvents and solutions, thereby reducing the need to replace and
dispose of contaminated solvents and solutions.
(A) OPERATIONS AND LIQUIDITY
The Company has been primarily engaged in research,
development, marketing, and initial production of its
products. The Company's ultimate success is dependent upon
future events, including the successful commercialization
of the Company's products. The Company was considered a
development stage enterprise until it realized its first
product sales during the third quarter of 1996.
As indicated in the accompanying financial statements as of
December 31, 1996 and 1995, the Company's accumulated
deficit totaled $4,729,866 and $2,231,214, respectively. In
past years, the Company has financed this deficiency
primarily through additional debt and private placements of
convertible redeemable preferred stock. On September 27,
1996, the Company filed a registration statement with the
Securities and Exchange Commission (the "SEC") in
connection with an initial public offering ("IPO") of
1,100,000 shares of its common stock. The IPO was
consummated on October 2, 1996 [see note 7(b)].
(B) CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, demand
deposits, and short term investments with original
maturities of three months or less.
(C) INVENTORY
Inventories are stated at the lower of cost or market. Cost
is determined using the first-in, first-out method for all
inventories. Inventory consists of the following at
December 31, 1996 and 1995:
1996 1995
---- ----
Raw materials $355,690 55,738
Work in progress and
finished goods 261,775 138,100
-------- -------
$617,465 193,838
======== =======
<PAGE>
(D) PROPERTY AND EQUIPMENT, NET
Property and equipment are stated at cost, less accumulated
depreciation. Depreciation is calculated using the
straight-line method over the shorter of the lease term or
the estimated useful lives of the respective assets.
(E) INTANGIBLES
Patents, patent applications and rights are stated at
acquisition cost. Amortization is recorded using the
straight-line method over the legal lives of the patents,
generally for a period ranging up to 17 years. The carrying
value of intangible assets is periodically reviewed by the
Company and impairments are recognized when the expected
future cash flows from operations derived from intangible
assets is less than their carrying value.
(F) FINANCIAL INSTRUMENTS
In assessing the fair value of financial instruments at
December 31, 1996 and 1995, the Company has used a variety
of methods and assumptions, which were based on estimates
of market conditions and risks existing at those times. The
carrying amount of long-term debt approximates fair value
at December 31, 1996 and 1995, respectively, based on rates
currently available to the Company for similar debt. For
certain instruments, including accounts payable and accrued
expenses, and short-term debt, the carrying amount
approximates fair value due to their short maturity.
(G) RESEARCH AND DEVELOPMENT
Research and development expenses consist primarily of
costs incurred in connection with engineering activities
related to the development of industrial parts cleaning
machinery and are expensed as incurred.
(H) INCOME TAXES
The Company accounts for income taxes based on the
provisions of Statement of Financial Accounting Standards
No. 109, "Accounting for Income Taxes" ("SFAS No. 109").
Under the asset and liability method of SFAS No. 109,
deferred tax assets and liabilities are recognized for the
estimated future tax consequences attributable to
differences between the financial statement carrying
amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities
are measured using enacted tax rates expected to be applied
to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Under
SFAS No. 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in
income in the period that includes the enacted date.
(I) NET LOSS PER COMMON SHARE
The computation of net loss per common share for each year
is based on the weighted average number of common shares
outstanding. When dilutive, convertible preferred stock and
convertible notes are included as common share equivalents
using the "if converted" method. As these instruments have
an antidilutive effect for the years presented, they are
not included in the weighted average calculation. Primary
and fully diluted earnings per share are the same for each
of the years presented.
<PAGE>
(J) USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities, if any, at
the date of the financial statements and the reported
amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
(K) NEW ACCOUNTING STANDARDS
In October 1995, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards
No. 123, "Accounting for Stock-Based Compensation" ("SFAS
No. 123"), which becomes effective for fiscal years
beginning after December 15, 1995 and permits entities to
recognize as expense over the vesting period the fair value
of all stock-based awards on the date of grant.
Alternatively, SFAS No. 123 also allows entities to
continue to apply the provisions of Accounting Principles
Board Opinion No. 25, "Accounting for Stock Issued to
Employees" ("APB Opinion No. 25") which allows an entity to
measure compensation costs using the intrinsic value method
of accounting and provide pro forma net income and pro
forma earnings per share disclosure as if the
fair-value-based method defined by SFAS No. 123 had been
applied. The Company is currently accounting for
stock-based compensation under APB Opinion No. 25 and has
opted to continue accounting for stock-based compensation
under this method.
In June 1996, the FASB issued Statement of Financial
Accounting Standards No. 125, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of
Liabilities", which becomes effecitive for transactions
occuring after December 31, 1996. The statement provides
accounting and reporting standards for transfers and
servicing of financial assets and extinguishments of
liabilities based on consistent application of a
financial-components approach that focuses on control. The
statement provides consistent standards for distinguishing
transfers of financial assets that are sales from transfers
of financial assets that are secured borrowings. The
Company has not determined what impact, if any, this
standard will have on its results of operations and
financial position.
(2) PROPERTY AND EQUIPMENT, NET
Property and equipment as of December 31, 1996 and 1995 was as
follows:
1996 1995 USEFUL LIFE
---- ---- -----------
Furniture and equipment $ 90,711 20,433 5 years
Machinery and equipment 380,582 353,606 10 years
Leasehold improvements 10,852 10,852 -
-------- -------
482,145 384,891
Less accumulated
depreciation 108,632 60,460
-------- -------
$373,513 324,431
======== =======
Depreciation expense was $48,172 and $42,404 for the years ended
December 31, 1996 and 1995, respectively.
<PAGE>
(3) DUE TO OFFICERS/SHAREHOLDERS
The balance in due to officers/shareholders at December 31, 1995
consisted of notes payable in the amounts of $100,000 and $150,000
to a shareholder and the chief executive officer, respectively.
During the second quarter of 1996, the note due to the shareholder
was converted into 20,000 shares of the Company's common stock at a
conversion rate of $5.00 per share. The note payable to the chief
executive officer was paid off in its entirety in May 1996.
In June and September 1996, the Company issued cumulative
convertible redeemable notes payable, with interest of 4% per annum
until September 30, 1996 and 12% thereafter, in the aggregate amount
of $1,012,500, of which $303,750 was due to certain directors of the
Company. These notes were automatically converted into 150,000
shares of common stock at a price of $6.75 per share simultaneously
with the IPO of the Company.
(4) LONG-TERM DEBT
Long-term debt at December 31, 1996 and 1995 consisted of the
following:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
12.5% note payable in monthly installments of $5,690, including
interest, due August 4, 1999, secured by equipment with a
depreciated cost of $216,034 $154,165 200,011
6.5% capital lease with monthly installments of $392, including
interest, due November 21, 2001 19,713 -
-------- ------
173,878 200,011
Less current installments 55,446 45,846
-------- --------
Long-term debt, excluding current installments $118,432 154,165
======== =======
</TABLE>
<PAGE>
The aggregate maturities of long-term debt for each of the four
years subsequent to December 31, 1996 and 1995, are as follows:
YEAR ENDING DECEMBER 31, AMOUNT
------------------------ ------
1997 $55,446
1998 62,561
1999 47,483
2000 8,388
--------
$173,878
========
(5) INCOME TAXES
Since the Company was in the development stage through September 30,
1996, all of its costs through that date have been capitalized for
tax purposes. Such amounts will be amortized for tax purposes over a
60 month period beginning with the month the Company commenced its
trade or business. The Company incurred a $14,280 capital loss on
the sale of real property in 1992. The capital loss may be carried
forward by the Company for up to five years and will expire at the
end of 1997. Capital losses carried forward may only be used to
offset future capital gains. The gross amount of the deferred tax
assets as of December 31, 1996 and 1995 was approximately $1,755,000
and $840,000, respectively. These deferred tax assets consist
primarily of net operating and capital loss carryforwards, start-up
costs, and research and experimental costs capitalized for tax
purposes. The net operating losses of the Company will expire in
varying amounts through the year 2012. Since realization of these
tax benefits is not assured, a valuation allowance has been recorded
against the entire deferred tax asset balance. In addition, if
certain substantial changes in ownership should occur, there would
be an annual limitation of the amount of tax attribute carryforwards
which can be utilized in the future.
(6) REDEEMABLE PREFERRED STOCK
(A) SERIES A PREFERRED STOCK
In April 1995, the Company issued 490,000 shares of 12
percent cumulative convertible redeemable preferred stock
(the "Series A") as part of a second private placement
within the meaning of Rule 144 of the Securities Act of
1933 (the "Act") at an offering price of $5 per share. The
issuance raised $1,950,000 in cash and converted an
existing $500,000 unsecured convertible promissory note
into Series A shares. The Series A were convertible into
common stock, one for one, at any time during the first 18
months following the issuance of the stock at the option of
the stockholder. All then outstanding shares of Series A
were to be redeemed no later than June 30, 1996. Dividends
were payable at the time of conversion or redemption.
On April 27, 1996, the board of directors of the Company
approved an offer to exchange all of the Series A plus the
aggregate amount of dividends accrued through June 30, 1996
in the amount of $346,267 for 628,180 shares of common
stock. In June 1996, 100% of the Series A shareholders
accepted the Company's offer to exchange all of their
preferred shares together with their dividends. As such,
included in the accompanying statement of operations for
the year ended December 31, 1996 is an amount of $344,631
relating to the expense recognized by the Company in
connection with this exchange.
<PAGE>
(B) FIRST SERIES PREFERRED STOCK
In the fourth quarter of 1993, the Company issued 580,000
shares of 12 percent cumulative convertible redeemable
preferred stock (the "First Series") in a private
placement. The stock was convertible into common stock, one
for one, at any time during the first 18 months following
the issuance of the stock at the option of the stockholder.
Dividends were payable at the time of the conversion or
redemption.
On May 30, 1995, the board of directors of the Company
approved the redemption of all of the First Series
outstanding at the redemption price of $1 per share plus
dividends accrued through June 30, 1995, subject to the
preferred shareholders' prior right to convert such
preferred stock into common stock of the Company. In June
1995, 100% of the First Series with cumulative dividends
thereon was converted into common stock on a one-for-one
basis.
(7) STOCKHOLDERS' EQUITY
(A) CONVERTIBLE NOTE PAYABLE
In May 1996, the Company converted a $100,000 note payable
into 20,000 shares of common stock at a price of $5 per
share pursuant to an amendment to the note signed in
January of 1996.
(B) COMMON STOCK
As discussed in note 1, on October 2, 1996, the Company
consummated an IPO whereby it made available to the public
1,100,000 shares of its common stock at a public offering
price of $7.50 per share. The Company received proceeds of
$6,034,660, net of underwriting discounts and other direct
IPO costs. In addition, notes payable in the amount of
$500,000 were converted into common stock in connection
with the IPO.
(C) STOCK BASED COMPENSATION
In 1996, the Company adopted an executive compensation plan
(the "Plan") pursuant to which the Company's board of
directors may provide grants of stock options, stock
appreciation rights, restricted stock, deferred stock,
other stock related awards and performance or annual
incentive awards to officers and key employees. During
1996, the Company granted 10,000 options to purchase
common stock at $7.50 per share and 5,000 options to
purchase common stock at $8.125 per share. All options have
10-year terms and vest over a 3-year period from the date
of grant. At December 31, 1996, the total number of common
shares available for grant under the Plan is 375,000. The
weighted-average remaining contractual life of outstanding
options is 9.83 years at December 31, 1996. There were no
exercisable options outstanding at December 31, 1996.
As discussed in note (1), the Company applies APB Opinion
No. 25 in accounting for its Plan, and, accordingly, no
compensation costs have been recognized for its stock
options in the financial statements. In connection with the
disclosure requirements under SFAS No. 123, the Company
estimated the weighted-average fair value of options
granted during 1996 at $5.67, using the Black-Scholes
option-pricing model. The following weighted average
assumptions were used: no expected dividend yield, risk-
free interest rate of 6.85%, expected volatility of 55.26%,
and an expected life of 10 years. The impact on the
Company's net loss and loss per share for 1996 of applying
the fair-value-based method of accounting in accordance
with SFAS No. 123 is not material.
<PAGE>
(8) COMMITMENTS
(A) LEASES
The Company leases operating facilities under fixed rent
operating leases. The facilities have lease terms ranging
from nine months to five years. Subsequent to year end, the
Company entered into an operating lease for its new
corporate headquarters. As such, future payments are
included in the future minimum lease payment schedule
herein.
Total rent expense was $85,327 and $55,572 for the years
ended December 31, 1996 and 1995, respectively.
At December 31, 1996, the estimated future minimum lease
payments under non-cancelable operating leases are as
follows:
DECEMBER 31,
------------
1997 $143,752
1998 113,815
1999 19,018
2000 19,875
2001 20,770
-------
$317,230
========
(B) EMPLOYMENT AGREEMENT
On September 1, 1993, the Company entered into an
employment agreement with the president of the Company.
Under the terms of this agreement, the Company agreed to
pay the president a salary of $66,000 per annum for two
years from the date of the agreement. In September 1995,
this agreement was renewed for an additional two years. In
August 1994, the Company amended the employment agreement
to provide for a $500 per month car allowance and a $50,000
net after tax bonus for each patent issued or allowed by
the United States Patent Office, both on a going-forward
basis and retroactively, in consideration for the
president, as inventor, assigning his rights under such
patents to the Company. As of December 31, 1995, four such
patents had been granted and as a result, an amount of
$179,350 was accrued at December 31, 1995. In December
1996, the Company amended the employment agreement pursuant
to a Board of Directors meeting held December 1996 to
provide for an annual salary of $120,000.
<PAGE>
In September 1995, the Company entered into a two year
employment agreement with the Chief Executive Officer of
the Company which provided for an annual base salary of
$48,000 and discretionary bonuses, based on performance, as
determined by the Compensation Committee of the Board of
Directors. In December 1996, the Company amended the
employment agreement pursuant to a Board of Directors
meeting held December 1996 to provide for an annual salary
of $120,000.
(C) SUPPLY AGREEMENT
On May 7, 1996, the Company entered into an agreement (the
"Supply Agreement") with a supplier (the "Supplier")
pusuant to which the Supplier agreed to supply to the
Company, at the Company's election, between 3,000 and 5,000
SystemOne(R) units per year at established prices and in
accordance with a delivery schedule. The Supply Agreement
delivery schedule provided for the monthly delivery of a
minimum of 100, 200, 300 and 400 SystemOne(R) Washers in
the quarters commencing August 1996, November 1996,
February 1997 and May 1997, respectively, for the monthly
delivery of a maximum of 500 SystemOne(R) Washers after
December 1996. The Supply Agreement provided for
adjustments in the established pricing schedule based upon
certain reductions in the cost of production and/or
increases in the cost of sheet metal. During the fourth
quarter of 1996, the Company terminated the Supply
Agreement. In accordance with the termination of the
Supply Agreement the parties entered into a mutual release
agreement pursuant to which the Company agreed to pay
$139,673 to the Supplier for amounts outstanding under the
Supply Agreement, inclusive of a $50,000 advance.
(9) PRODUCT FINANCING AGREEMENT
In May 1996, the Company entered into an agreement (the "Product
Financing Agreement") with a leasing company which agrees to
purchase machines produced by the Company and subsequently lease
these machines to customers for 60 month terms. The Company will
market the machines and provide the leasing company with credit
information on potential customers which they may either accept or
reject. The Product Financing Agreement states that the leasing
company does not have recourse against the Company for customer
failures to discharge their obligations to the leasing company
unless the Company has breached and failed to cure certain
warranties.
Under the Product Financing Agreement, the Company has agreed to
provide periodic service for the machines including solvent
requirements. Revenue from providing such services is deferred and
recognized over the lease term of the machine. In addition, upon the
leasing company's request, the Company agrees to assist, without
obligation, the leasing company in remarketing any repossessed or
surrendered equipment for a fee. At the end of each customer lease,
the Company has the option to purchase the machine from the leasing
company at its fair market value.
<PAGE>
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
Not applicable.
PART III
ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
The information set forth under the caption "Management" contained in the
Company's definitive Proxy Statement for its 1997 Annual Meeting of Shareholders
(the "Proxy Statement") is incorporated herein by reference.
ITEM 10. EXECUTIVE COMPENSATION.
The information set forth under the caption "Executive Compensation" contained
in the Company's Proxy Statement is incorporated herein by reference.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
The information set forth under the caption "Security Ownership" contained in
the Company's Proxy Statement is incorporated herein by reference.
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
The information set forth under the caption "Certain Transactions" contained in
the Company's Proxy Statement is incorporated herein by reference.
ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
(A) EXHIBITS
EXHIBIT DESCRIPTION
3.1 Restated Articles of Incorporation of Registrant (1)
3.2 Bylaws of Registrant, as amended (1)
4.1 Certificate for Shares of Common Stock, per value
$.001 (1)
4.3 Proposed form of Representatives' Warrant Agreement
between the Registrant and the Underwriter with form
of warrant attached (1)
10.1 Registrant's Executive Incentive Plan (1)
10.2 Master Lease and Distribution Agreement, effective
August 1, 1996, among the Registrant, The Valvoline
Company and First Recovery (1)
10.3 Form of Indemnification Agreement between the
Registrant and each of its directors and executive
officers (1)
10.4 Employment Agreement between Pierre G. Mansur and
the Registrant dated September 1, 1995 (1)
10.5 Employment Agreement between Paul I. Mansur and the
Registrant dated September 1, 1995 (1)
<PAGE>
10.6 Employment Agreement between the Company and Charles
W. Profilet, dated as of November 27, 1995 (1)
10.7 Vendor Lease Plan Agreement between the Registrant
and Oakmont Financial Services, dated as of May 28,
1996 (1)
10.8 A Manufacture Agreement between the Registrant and
EMJAC Industries, Inc, dated as of May 7, 1996 (1)
10.9 Lease Agreement, dated October 29, 1994, between
Registrant and Marvin L. Duncan (1)
10.10 Security Agreement between the Registrant and The
CIT Group/Equipment Financing, Inc. for one (1)
TRUMPF TC 200 CNC Punching Machine, Serial No.
070080 with tooling package dated as of October
25,1995 (1)
10.11 Term Life Insurance Policy for Pierre G. Mansur with
the Equitable Life Assurance Society of the United
States, dated as of November 9, 1994 (1)
10.12 Term Life Insurance Policy for Paul I Mansur with
the Equitable Life Assurance Society of the United
States, dated as of May 24, 1996(1)
10.13 United States Patent No. 5,277,208 for Multi-Process
Power Spray Washer Apparatus dated January 11, 1994
(1)
10.14 United States Patent No. 5,349,974 for
SystemOne(R)Washer dated September 27, 1994 (1)
10.15 United States Patent Application No. 08/394,290 for
Improved SystemOne(R) Washer allowed April 2, 1996
(1)
10.16 United States Patent No. 5,388,601 for Spray Gun
Washer dated February 14, 1995 (1)
10.17 United States Patent No. 5,518,013 for Immersion
Washer dated May 21, 1996 (1)
10.18 United States Patent Applications No. 08/364,785 for
apparatus for disposal of refuse by thermal
oxidation allowed June 26, 1996 (1)
10.19 Short Term Note, dated as of September 9, 1996,
between Maria G. Jackson and the Registrant in the
principal amount of $100,000 (1)
10.20 Short Term Note, dated as of September 9, 1996,
between First Malro and the Registrant in the
principal amount of $250,000 (1)
10.21 Short Term Note, dated as of September 9, 1996,
between Martin E. Samy and the Registrant in the
principal amount of $50,000 (1)
10.22 Short Term Note, dated as of September 9, 1996,
between Crestwell Corporation and the Registrant in
the principal amount of $100,000 (1)
10.23 Employment Agreement, dated as of July 31, 1996
between Richard P. Smith and the Registrant (1)
10.24 Lease, dated as of September 1, 1996 between Y.F.G,
Inc and the Registrant (1)
10.25 Lease, dated as of September 15, 1996 between
Business Enterprises of Pinellas Limited and the
Registrant (1)
10.26 United States Patent No. 5,549,128 for improved
general parts washer dated August 27, 1996
10.27 United States Patent No. 5,579,704 for apparatus
for disposing of refuse by thermal oxidation dated
December 31, 1996
10.28 United States Patent Application for floor washing
apparatus dated December 3, 1996
10.29 United States Patent Application for system and
method of vapor recovery in industrial washing
equipment dated December 19, 1996
10.30 United States Patent Application for a process for
integrated recycling of cleaning solution in
industrial washing equipment dated February 26, 1997
27 Financial Data Schedule (For SEC Use Only)
(1) Incorporated by reference to the exhibit of the
same number filed with the Registrant's
Registration Statement on Form S-1 (File No.
333-08657).
<PAGE>
(B) REPORTS ON FORM 8-K
(1) Commission Sales Representative Agreement, dated January 16,
1997, among the Valvoline Company, Ecogard Inc. and the
Registrant.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Mansur Industries Inc.
Dated: March 31, 1997 /S/ PAUL I. MANSUR
-----------------------------
By: PAUL I. MANSUR
Chief Executive Officer
(Principal Executive Officer)
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1934, THIS REPORT HAS BEEN
SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND IN
CAPACITIES AND ON THE DATES INDICATED.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
---------- ----- ----
<S> <C> <C>
/S/ PIERRE G. MANSUR
- --------------------
PIERRE G. MANSUR Chairman of the Board and President March 31, 1997
/S/ PAUL I. MANSUR
- --------------------
PAUL I. MANSUR Chief Executive Officer; Principal Executive March 31, 1997
Officer; Director
/S/ RICHARD P. SMITH
- --------------------
RICHARD P. SMITH Chief Financial Officer; Principal Financial and March 31, 1997
Accounting Officer
/S/ ELIAS F. MANSUR
- --------------------
ELIAS F. MANSUR Director March 31, 1997
- --------------------
DR. JAN HEDBERG Director March 31, 1997
/S/ JOSEPH E. JACK
- --------------------
JOSEPH E. JACK Director March 31, 1997
</TABLE>
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
10.26 United States Patent No. 5,549,128 for improved
general parts washer dated August 27, 1996
10.27 United States Patent No. 5,549,704 for apparatus
for disposing of refuse by thermal oxidation dated
December 31, 1996
10.28 United States Patent Application for floor washing
apparatus dated December 3, 1996
10.29 United States Patent Application for system and
method of vapor recovery in industrial washing
equipment dated December 19, 1996
10.30 United States Patent Application for a process for
integrated recycling of cleansing solution in
industrial washing equipment dated February 26, 1997
27 Financial Data Schedule
EXHIBIT 10.26
BAR CODE NO US005549128A
UNITED STATES PATENT (19) (11) PATENT NUMBER: 5,549,128
MANSUR (45) DATE OF PATENT: * AUG. 27, 1996
- --------------------------------------------------------------------------------
(54) GENERL PARTS WASHER
(75) Inventor: PIERRE G. MANSUR, Miami, Fla.
(73) Assignee: MANSUR INDUSTRIES INC., Miami, Fla.
(*) Notice: The portion of the terms of this patent subsequent to
Sep. 27, 2011, has been disclaimed.
(21) Appl. No.: 394,290
(22) Filed: FEB 24, 1995
(51) INT. CL. ............... B08B 3/10
(52) U.S. CL. ............... 134/104.1; 134/104.4; 134/108; 134/111
(58) FIELD OF SEARCH ........ 134/104.1, 104.4, 134/105, 107, 108, 109,
111; 202/170
(56) REFERENCES CITED
U.S. PATENT DOCUMENTS
1,697,767 1/1929 Hirst
2,070,204 2/1937 Hetzer
2,243,093 5/1941 Flahive
2,352,356 6/1944 Albertson
2,682,273 6/1954 Rosch
2,698,288 12/1954 Dinley, Jr.
2,834,359 5/1958 Kearney ............... 134/108 X
2,924,557 2/1960 De Furia
3,011,924 12/1961 Rand
3,070,463 12/1962 Barday
3,177,126 4/1965 Charreau
3,598,131 8/1971 Weihe, Jr. .............. 134/107
3,610,260 10/1971 Kearney
3,707,404 12/1972 Carlson et al
3,718,147 2/1973 Laroche ............... 134/108 X
3,771,539 11/1973 De Santis
3,915,808 10/1975 Wilcox
3,996,949 12/1976 Boynton ............... 134/108 X
4,008,729 2/1977 Chizinsky ............... 134/107
4,051,858 10/1977 Mele
4,101,340 7/1978 Rand
4,122,861 10/1978 Lee
4,141,373 2/1979 Kartanson et al
4,170,240 10/1979 Gentry
4,223,140 9/1980 Hirdler et al .......... 544/192
4,290,439 9/1981 Charpentier ............. 134/107
4,299,663 11/1981 McCord
4,353,323 10/1982 Kobienzer ............. 134/107 X
4,433,698 2/1984 Blaul
4,443,269 4/1984 Capella et al
4,451,298 5/1984 Yagishita et al
4,505,284 3/1985 Kyatt
4,581,133 4/1986 Tomes
4,596,634 6/1986 McCord ................ 134/107 X
4,616,377 10/1986 Urbani
4,707,878 11/1987 Urbani
4,715,868 12/1987 Kennedy ................... 95/94
4,755,261 7/1988 McCord ete al
4,770,197 9/1988 Prisco, Jr. et al
4,771,503 9/1988 Urbani
(List continued on next page.)
FOREIGN PATENT DOCUMENTS
662742 3/1929 France .............. 134/105
2394334 2/1979 France .............. 134/109
369641 12/1958 Switzerland
290285 12/1928 United Kingdom
PRIMARY EXAMINER--Philip R. Coe
ATTORNEY, AGENT, OR FIRM--Robert M. Downey, P.A.
(57) ABSTRACT
An apparatus for washing automotive, aviation, marine and other general parts
with a cleaning solution during maintenance, repair and rebuilding operations,
includes a solution holding reservoir, a wash basin with a drain to facilitate
return of the cleaning solution to the holding reservoir, and a pump in the
holding reservoir for recirculating the cleaning solution through a discharge
spout and into the wash basin for washing parts therein. A first valve assembly
between the drain and the cleaning solution holding reservoir closes during
periods of non-use to prevent vapors from escaping to the atmosphere. During a
recycling process, a second valve assembly releases used, contaminated solvent
from the holding reservoir into a distillation chamber where the solvent is
heated to produce vapors. A condenser cools the vapors to a liquid state,
yielding non-contaminated cleaning solutions, which is directed into the holding
reservoir for future parts washing as demanded.
12 CLAIMS, 3 DRAWING SHEETS
(SCHEMATIC DRAWING)
<PAGE>
5,549,128
Page 2
U.S. PATENT DOCUMENTS
4,785,836 11/1988 Yamamoto
4,865,061 9/1989 Fowler et al ............. 134/108
4,874,472 10/1989 Kohler
4,879,004 11/1989 Ocsch et al
4,929,312 5/1990 Westcott
5,069,755 12/1991 Durr et al
5,095,925 3/1992 Elledge et al
5,141,009 8/1992 Morantz .............. 134/104.1 X
5,180,438 1/1993 Hockh et al
5,193,561 3/1993 Robb et al
5,232,299 8/1993 Hiss
5,318,056 6/1994 Kusz et al
5,349,974 9/1994 Mansur ................. 134/108 X
5,357,771 10/1994 Schaal
5,377,705 1/1995 Smith, Jr. et al
5,402,806 4/1995 Hakeem et al
5,415,193 5/1995 Taricco
<PAGE>
U.S. PATENT AUG. 27, 1996 SHEET 1 OF 3 5,549,128
(SCHEMATIC DRAWINGS)
<PAGE>
U.S. PATENT AUG. 27, 1996 SHEET 2 OF 3 5,549,128
(SCHEMATIC DRAWINGS)
<PAGE>
U.S. PATENT AUG. 27, 1996 SHEET 3 OF 3 5,549,128
(SCHEMATIC DRAWINGS)
<PAGE>
5,549,128
1
GENERAL PARTS WASHER
BACKGROUND OF THE INVENTION
1. Field of the Invention
This invention relates to an apparatus for washing articles with a liquid
cleaning solution, and more particularly to a general parts washer providing for
recycling of contaminated, dirty cleaning solution during a recycling process
to produce fresh, non-contamined cleaning solution on a regular basis for use
in washing parts during maintenance, repair and rebuilding operations.
2. Description of the Related Art
During maintenance, repair and rebuilding operations in virtually all
industrial and commercial environments, it is necessary to wash a wide variety
of parts and articles in order to remove grease, oil, dirt and other
contaminants. Typically, volatile solvents or aqueous solutions are used in
small parts cleaning operations, as they have been found to be most effective
in removing grease and other accumulated residue from metal parts and other
articles.
In order to facilitate washing of various parts with a cleaning solvent, such
as a hydrocarbon or halogenated hydrocarbon, there is presently available a sink
which is removably supported on the top of a 55 gallon drum filled with cleaning
solvent. A pump is provided which pumps the solvent from the drum to a spicket
in the sink where it is used to rinse parts. From the sink, the sovlent is
drained back into the drum. During washing operations, the solvent becomes
immediately contaminated after the first use. However, the contaminated solvent
is continuously used during cleaning operations until a next scheduled solvent
replacement, which is usually on a monthly basis. The regular replacement of
contaminated solvent is ordinarily provided by a service, which also supplies
the washing apparatus, on a service contract basis. To replace the solvent, the
sink is removed from the drum containing the contaminated solvent and is placed
on another drum containing fresh solvent. The contaminated drum of solvent must
then be taken away and disposed of in a manner complying with EPA contaminant
disposal guidelines. This procedure is inefficient, costly and time consuming,
leaving a busy manufacturing or repair facility with no other alternative than
to perform parts cleaning operations using dirty, contaminated solvent between
scheduled solvent replacement dates.
The present invention improves upon my previous parts washing apparatus as
set forth in U.S. Pat. No. 5,349,974, the subject matter of which is
incorporated herein by reference. Specifically, the present invention provides
for the optional elimination of a vacuum pump during the distillation process
if the atmospheric vaporization temperatures of the cleaning solution being used
is not dangerously high, and thus safe distillation at atmospheric pressure can
be achieved. Also, the present invention eliminates the need for a removable lid
on the distillatin chamber due to the sloping bottom configuration of the
distillation chamber which is specifically structured to centrally gather
contaminants which remain in the distillatin chamber. To gain access to the
distillation chamber and remove the contaminants, a small port with a threaded
cap and seal may be provided on the lower front of the distillation chamber, the
cap being exteriorly accessible on the front of the apparatus. This structural
modification provides for easier cleaning of the distillation chamber, in less
time, and substantially reduces the cost of production of the apparatus.
Further, in instances where it is desirous to distill under a vacuum, or
<PAGE>
2
partial vacuum, the present invention provides for the use of a liquid ring
vacuum pump. A primary advantage of liquid ring vacuum pumps is that they have a
substantially longer operating life than other vacuum pumps due to their nature
of operation, using liquid, as the means for creating a seal, eliminating
friction and wear. Further, the liquid ring vacuum pump used in the present
invention operates on standard 110 volt power, providing for greater efficiency.
To accommodate a liquid ring vacuum pump, and prevent damage thereto, the
present invention employs the use of a secondary reservoir, enabling the vacuum
pump to operate using non-contaminated cleaning solution.
SUMMARY OF THE INVENTION
The present invention is directed to an apparatus for rinsing and washing
(cleaning) articles such as general machine and engine parts, which provides
pure, fresh cleaning solution on demand.
More particularly, the present invention provides for the recycling of
contaminated, dirty cleaning solution (including solvents and aqueous cleaning
solutions) on a regular basis to provide fresh, non-contaminated solution for
cleaning, and thus eliminating the need for regular replacement and disposal of
contaminated cleaning solution. Accordingly, the present invention provides a
practical and economical means for complying with contaminant disposal
guidelines of the Environmental Protection Agency (EPA).
In accordance with the general parts washing apparatus of the present
invention, there is provided a wash basin including an at least partially
surrounding wall structure defining a splash guard, an open top and a removable
front wall portion. The wash basin further includes a floor which slopes
slightly downward from the sides, front and rear towards a centrally disposed
drain to facilitate recovery of cleaning solution after use. Once the cleaning
solution has passed through the drain and a filter, the cleaning solution
returns to a holding reservoir. A pump recirculates the cleaning solution from
the holding reservoir to a spout which discharges the cleaning solution into
the wash basin for rinsing articles during what might be termed a wash cycle.
During a recycling process, a containment valve assembly is opened, releasing
the cleaning solution from within the holding reservoir to a distillation
chamber. Once the cleaning solution has drained into the distillation chamber,
the containment valve assembly is closed and the cleaning solution is heated to
a boiling point resulting in vapors entering a condenser. In the condenser, the
vapors condense to a liquid state, producing fresh, recycled cleaning solution.
This fresh cleaning solution is then lead into a holding reservoir for
subsequent use during the wash cycle.
A vacuum pump may be used to create a vacuum in the distillation chamber,
thereby lowering the cleaning solution boiling point temperature. In a preferred
embodiment, a liquid ring vacuum pump is used to provide extended pump life and
greater efficiency to the apparatus. In this instance, the condensed, purified
cleaning solution is directed from the distillation chamber to a secondary
holding reservoir, enabling contaminated cleaning solution in the primary
holding reservoir to be dumped into the distillation chamber. In this manner,
the fresh cleaning solution, once transferred from the secondary holding
reservoir to the primary holding reservoir, can be used to operate the liquid
ring vacuum pump which requires solution free of sediment and contaminants in
order to prevent damage thereto.
Accordingly, with the foregoing in mind, it is a primary object of the present
invention to provide a general parts
<PAGE>
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3
washing apparatus for use in cleaning pans during maintenance, repair and
rebuilding operations, and which includes means for recovering and recycling
cleaning solutions so as to provide a user with "on-demand" pure cleaning
solution on a regular basis for cleaning.
It is another object of the present invention to provide a general parts
washing apparatus, as described above, which eliminates the need for constant
replacement and disposal of contaminated cleaning solution while providing a
practical and economical means of complying with EPA contaminant disposal
guidelines.
It is a further object of the present invention to provide a relatively
compact and inexpensive parts washing apparatus adapted to recycle cleaning
solutions so as to provide fresh, non-contaminated cleaning solutions on a
regular basis.
It is still a further object of the present invention to provide a general
parts washing apparatus as described above which operates on standard 110 volts
and which further requires no special water or air requirements.
It is still another object of the present invention to provide an improved
general parts washing apparatus which may incorporate the use of a liquid ring
vacuum pump operating on 110 volts, and thus providing an extended pump life and
greater efficiency.
It is yet another object of the present invention to provide a general parts
washing apparatus as described above, including a distillation chamber having a
bottom structured and disposed to gather contaminants contained therein, thereby
enabling the contaminants to be removed through a small port and eliminating
the need for a removable lid and a lid lifting assembly, resulting in greater
efficiency and reduced cost of construction.
It is still another object of the present invention to provide a general parts
washing apparatus as described above which complies with all government imposed
safety regulations and requirements.
These and other objects and advantages of the present invention will be more
readily apparant in the description which follows.
BRIEF DESCRIPTION OF THE DRAWINGS
For a further understanding of the nature of the present invention, reference
should be had to the following detailed description taken in connection with
the accompanying drawings in which:
FIG. 1 is a front, top perspective view of the general parts washer apparatus
of the present invention;
FIG. 2 is a rear top perspective view, in partial cutaway illustrating the
primary structural components, in general form, contained within a cabinet
interior of the apparatus.
FIG. 3 is a side elevation, in partial section, illustrating the structure
and interconnection of the components of the apparatus; and
FIG. 4 is a schematic diagram illustrating the functional relationship
between the various components of the present invention.
Like reference numerals refer to like parts throughout the several views of
the drawings.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Referring to the several views of the drawings, and initially FIG. 1, there is
generally illustrated the general parts washer apparatus 10 of the present
invention. The
<PAGE>
5,549,128
4
apparatus 10 may be provided with a cabinet 12 including an upper portion
defining a wash basin 14 and a lower portion 16 including a base 17, side walls
18. 18' rear wall 19 and a front wall 20. The wash basin 14 includes side wall
portions 21, 22 and a rear wall portion 23 partially surrounding the wash basin
14, and defining a splash guard. A front wall panel 24 is removably fitted
within opposite channels 25, 25' formed in the opposite side wall portions 21,
22 of the wash basin 14. During washing operations, the front wall panel 24 can
be pulled upwardly and removed from a remainder of the apparatus 10. In this
manner, access to the wash basin 14 is unobstructed from a front of the
apparatus 10.
The floor 26 in the wash basin 14 is preferably sloped from the sides, rear
and front, downwardly from a central zone where there is located a drain 28
including a drain plate 29 through which cleaning solution drains after use for
washing articles in the wash basin 14. After passage through the drain plate 29,
the cleaning solution is directed through a filter 30 fitted directly below the
drain plate. From the filter, the cleaning solution is lead through a return
canal 32 which leads to a cleaning solution holding tank 40. A vapor
containment valve assembly 34 is provided at the connection of the return canal
32 to the holding tank 40. During periods of non-use, the vapor containment
valve is closed, thus preventing vapors from escaping to atmosphere from within
the holding tank 40. The holding tank 40 is sized and configured to contain a
predetermined amount of cleaning solution therein. The cleaning solution is
recycled and reused throughout operation of the apparatus.
A pump 44, supported within the holding tank 40, recirculates the cleaning
solution in the holding tank 40 through a return conduit 46 leading to a 3-way
valve 48 interconnecting between the return conduit and a spout 50 and a hose
52 having a wash brush 54 attached to an end thereof. A valve lever 56
facilitates operation of the valve to direct flow of cleaning solution to
either or both the spout 50 and hose 52 for subsequent discharge into the wash
basin 14 (see FIGS. 1, 3 and 4). The brush 54 attached to the hose 52 is
specifically designed to permit fluid flow therethrough so that articles may be
brushed and simultaneously rinsed with cleaning solution to remove accumulated
grease, dirt and other contaminants from the articles being washed. Once
discharged from either the spout 50 or brush 54, the cleaning solution returns
to the holding tank 40 through the drain 28 and return canal 32. An electric
switch is provided and is easily accessible on an exterior of the apparatus 10
(not shown for purposes of clarity) to facilitate deactivation of the pump 44
during periods of non-use. To this point, a wash cycle has been defined which
continues during parts washing operations.
After a period of washing operations, at such intervals as may be selectively
determined, the cleaning solution contained within the holding tank 40 (now
contaminated after being used for washing various articles in the wash basin) is
released into a distillation chamber 60. Referring to FIGS. 3 and 4, at the
initiation of a recycling process, the vapor containment valve assembly 34 is
closed by motor M1, or solenoid, which rotates a cam 36 moving lever 35,
resulting in spring 33 urging valve stem 37 upward and causing the valve head
38 to mate against valve seat 39, and thus preventing vapors within the holding
tank 40 from escaping to atmosphere. The vapor containment valve assembly 34 is
operated in a similar manner during all periods of non-use, as a safety measure
to prevent vapors from escaping. In the recycling process, motor M2 (or
solenoid) is activated causing rotation of cam member 64, thereby operating a
<PAGE>
5,549,128
5
cleaning solution containment valve assembly 66. Upon initiation of the
recycling process, partial rotation of cam member 64 moves lever 67 which
applies an axial downward force on valve stem 70 to release a valve head 72
from engagement with a valve seat 76. Upon opening of the cleaning solution
containment valve assembly 66, the contaminated cleaning solution is released
from within the holding tank 40 through transfer canal 58 and into the
distillation chamber 60. The bottom 41 of the holding tank 40 is specifically
configured to slope toward the cleaning solution containment valve assembly
66, as seen in FIG. 3, so that upon opening of the valve assembly 66, the
cleaning solution will readily flow through the transfer canal 58 and into the
distillation chamber 60. Thereafter, a small amount of purified cleaning
solution is sprayed onto the valve seat 76 as well as the bottom 41 of the
holding tank 40 (as described more fully hereinafter) in order to wash sediment
into the distillation chamber, leaving the now empty holding tank 40 clean and
generally free of contaminants. The distillation chamber includes side walls 80,
81, a front wall 82, rear wall 83, a bottom 85 and a ceiling 84. The
distillation chamber 60 is insulated on all sides, the bottom and top thereof
to maintain heat therein. The bottom 85 of the distillation chamber 60 is
specifically structured and configured to slope downwardly towards a lower
central zone 86 so that sediment and other contaminants will settle and gather
at the central zone 86, facilitating easier cleaning thereof. A removable cap 87
on the front of the apparatus removably fits in covering, scaling relation to a
port 89 formed through the front wall of the distillation chamber 60 near the
lower central zone 86. Removal of the cap 87 facilitates access to an interior
of the distillation chamber 60, enabling accumulated contaminants in the lower
central zone to be periodically removed. A tool, such as a spade on a rod, can
be used to reach through the port 89 and scrape the bottom of the distillation
chamber 60, pulling accumulated sediment out through the port. Once cleaned, the
cap is replaced in covering, sealed relation on the port so that liquid and
vapors do not escape therefrom during the distillation process.
A plurality of heating elements 90 are provided within the disstilation
chamber 60 to heat the cleaning solution to a temperature sufficient to produce
vapors for distillation. The heating elements 90 may be comprised of
electrically operated elongate elements each individually fitted within a tube
which extends within an interior of the distillation chamber 60, so that the
tubes are surrounded by the cleaning solution.
A condenser 100 is positioned and disposed within a cooling zone and is cooled
by a fan 102. The condenser 100 includes a first conduit 104 extending to and
terminating at an open distal end within an upper portion of the distillation
chamber 60. The open end 105 of the conduit 104 is specifically positioned and
disposed for receipt of vapors therethrough. The vapors are thereafter led
through the conduit 104 to the condenser 100, wherein the vapors are condensed
to yield fresh, non-contaminated cleaning solution. A second conduit 108 extends
from the condenser 100 to a second lower cleaning solution holding tank 110. The
distilled, purified cleaning solution is directed into the lower holding tank
110 for temporary storage. At this point there is a separate charge of cleaning
solution contained in the upper holding tank 40. When the charge of cleaning
solution in the upper holding tank 40 is contaminated from parts washing
operations, and recycling is needed, the charge of cleaning solution is released
from the holding tank 40 into the distillation chamber 60, as described above.
Thereafter, a small quantity (approximately one to two pints) of the
<PAGE>
5,549,128
6
purified, fresh cleaning solution in the second, lower holding tank 110 is
dispersed into the upper tank 40 from a transfer line 116 leading from transfer
pump 114. The transfer pump 114 is interconnected to the bottom of the lower
holding tank 110 by line 112 having a check valve 113 therebetween, to hold
vacuum, as described hereinafter. The small quantity of cleaning solution
dispersed on the valve assembly 66, removes sediment from the valve seat 76.
At the same time, a liquid ring vacuum pump 130 discharges a small quantity of
fresh cleaning solution contained therein, and within an output line 132, onto
the sloped bottom 41 of the holding tank 40 to wash the sediment through the
transfer canal 58 and into the distillation chamber 60. Once the holding tank
40 and valve assembly 66 are rinsed, the containment valve assembly 66 closes
to seal off the distillation chamber 60. At this point, the transfer pump 114
is activated, resulting in the purified, non-contaminated cleaning solution in
the lower holding tank 110 being transferred into the upper holding tank 40.
When the charge of purified cleaning solution has been completely transferred
from the lower tank 110 to the upper tank 40, liquid ring vacuum pump 130 is
activated. The purified cleaning solution is drawn through an intake line 134
from the holding tank 40 to the vacuum pump 130, where it is thereafter
discharged through output line 132, and through a second condenser 140 for
cooling prior to returning to the holding tank 40. Operation of the vacuum pump
130 results in a suctin through vacuum line 150 leading to an upper portion of
the lower holding tank 110. Continued operation of the vacuum pump 130 results
in a vacuum being formed in the lower holding tank 110, the condenser 100 and
the distillation chamber 60. In this manner, the temperature at which the
cleaning solution will vaporize is substantially lowered, resulting in greater
efficiency in the operation of the apparatus 10. To hold the vacuum in the
distillation chamber 60, and the lower holding tank 110, a second check valve
136 is provided along the vacuum line. Referring to FIG. 4, a solenoid valve
144 is provided in the fluid intake line 134 leading from the holding tank 40
to the vacuum pump 130. Once a vacuum is achieved in the distillation chamber
60, the solenoid valve 144 is closed and the vacuum pump 130 is deactivated.
Thus, the solenoid valve 144 prevents the cleaning solution from draining from
the holding tank 40 and backing up into the vacuum pump 130. The contaminated
cleaning solution in the distillation chamber 60 is thereafter heated and
vaporized, as described above, resulting in the distilled, purified cleaning
solution being collected in the lower holding tank 110. Subsequent recycling is
repeated in the same manner as described above.
While the invention has been shown and described to what is considered to be
a practical and preferred embodiment, it is recognized that departures may be
made within the spirit and scope of the following claims which, therefore,
should not be limited except within the Doctrine of Equivalents.
Now that the invention has been described,
What is claimed is:
1. An apparatus for washing articles with a solution comprising:
at least one holding reservoir structured and disposed to contain a
predetermined charge of the solution therein,
a wash basin including at least a partially surrounding wall structure, and
a floor having a drain means therein for draining the solution from within
said wash basin and into said holding reservoir,
means for discharging the solution into said wash basis,
means for recirculating the solution from said holding reservoir to said
discharging means,
<PAGE>
5,549,128
7
a distillation chamber being structured and disposed to receive said charge
of solution therein.
means for releasing and directing said charge of solution from said holding
reservoir into said distillation chamber, and including solution containment
valve means selectively operable between an open position to release
contaminated solution into said distillation chamber and a closed position
to either contain the solution in the holding reservoir or to prevent vapors
from escaping from said distillation chamber once the cleaning solution has
been released from said holding reservoir and is contained within said
distillation chamber,
heating means structured and disposed for heating the contaminated solution
contained in said distillation chamber so as to produce vapors, and
a condenser in fluid communication with said distillation chamber and
structured and disposed for receipt and condensing of the vapors to yield
purified, condensed liquid solution and being further structured and
disposed for directing the purified, condensed liquid solution into said
holding reservoir.
2. An apparatus for washing articles with a solution comprising:
a holding reservoir for containing the solution,
a wash basin including a floor with drain means therein structured and
disposed for draining the solution from said wash basin and into said
holding reservoir,
solution discharge means for recirculating and discharging the solution from
said holding reservoir into said wash basin,
a distillation chamber operatively associated with said holding reservoir to
receive contaminated solution,
release means for selectively releasing and directing contaminated solution
from said holding reservoir to said distillation chamber,
access means for removing accumulated contaminants contained within said
distillation chamber,
heating means structured and disposed for heating the contaminated solution
contained in said distillation chamber so as to produce vapors, and
a condenser structured and disposed to condense the vapors from said
distillation chamber to yield purified, condensed liquid solution and to
direct the purified, condensed liquid solution into said holding reservoir.
3. An apparatus as recited in claim 2 further including vacuum means for
creating a vacuum in said distillation chamber in order to lower a vaporization
temperature of the cleaning solution.
4. An apparatus as recited claim 2 further including means for rinsing said
holding reservoir after release of the contaminated solution into said
distillation chamber, said rinsing means being structured and disposed to wash
sediment and accumulated contaminants from an interior surface of said holding
reservoir into said distillation chamber.
5. An apparatus as recited in claim 2 wherein said drain means includes
filter means structured and disposed for passage of the solution therethrough
for removing sediment and particulate from the solution prior to entering said
holding reservoir.
6. An apparatus as recited in claim 2 wherein said solution discharge means
includes a pump within said holding reservoir and a conduit connecting between
said pump and a discharge spout, said discharge spout being structured and
disposed for discharging solution pumped from said holding reservoir into said
wash basin.
<PAGE>
5,549,128
8
7. An apparatus as recited in claim 2 further including a vapor containment
valve assembly structured and disposed to be operable between an open position,
permitting the solution to flow through said drain means into said holding
reservoir, and a closed position, preventing flow of the solution from said
wash basin to said holding reservoir and further preventing fumes and vapors
from the solution from escaping from within said holding reservoir to
atmosphere.
8. An apparatus as recited in claim 2 wherein said release means includes a
solution containment valve assembly selectively operable between a closed
position to either contain the solution within said holding reservoir or to
prevent vapors from escaping from said distillation chamber when said solution
is contained therein, and an open position to release the solution from within
said holding reservoir into said distillation chamber.
9. An apparatus for washing articles with a solution comprising:
a first solution holding reservoir structured and disposed to contain a
predetermined charge of the solution therein,
a wash basin including at least a partially surrounding wall structure, and
a floor having a drain means therein for draining the solution from within
said wash basin and into said first solution holding reservoir,
means for discharging the solution into said wash basin,
pump means structured and disposed to circulate the solution from said first
solution holding reservoir to said discharging means,
a distillation chamber being structured and disposed to receive said charge
of solution therein,
means for releasing and directing said charge of solution from said first
solution holding reservoir into said distillation chamber and including
solution containment valve means selectively operable between an open
position to release contaminated solution into said distillation chamber
and a closed position for either containing the solution in said first
solution holding reservoir or for preventing vapors from escaping from said
distillation chamber once the contaminated solution has been released from
said first solution holding reservoir and is contained in said distillation
chamber,
heating means structured and disposed for heating the contaminated solution
contained in said distillation chamber so as to produce vapors,
a condenser structured and disposed for receiving and condensing the vapors
from said distillation chamber to produce purified, condensed,
non-contaminated liquid solution,
a second solution holding reservoir structured and disposed to receive the
purified, condensed liquid solution from said condenser, and
transfer pump means for transferring the purified, condensed liquid solution
from said second solution holding reservoir to said first solution holding
reservoir.
10. An apparatus as recited in claim 9 further including vacuum means for
creating a vacuum in said distillation chamber in order to lower a vaporization
temperature of the solution.
11. An apparatus as recited in claim 10 wherein said vacuum means includes a
liquid ring vacuum pump.
12. An apparatus as recited in claim 11 wherein said liquid ring vacuum pump
is operable using the purified, condensed liquid solution.
* * * * *
EXHIBIT 10.27
BAR CODE NO US005579704A
UNITED STATES PATENT (19) (11) PATENT NUMBER: 5,579,704
MANSUR (45) DATE OF PATENT: DEC. 3, 1996
- --------------------------------------------------------------------------------
(54) APPARATUS FOR DISPOSING OF REFUSE BY THERMAL OXIDATION
(75) Inventor: PIERRE G. MANSUR, Miami, Fla.
(73) Assignee: MANSUR INDUSTRIES INC., Miami, Fla.
(21) Appl. No.: 364,785
(22) Field: DEC. 27, 1994
(51) INT. CL. .................. F23N 5/00; F23B 5/00; F23G 5/00
(52) U.S. CL. .............. 110/185; 110/192; 110/193; 110/211;
110/242; 110/250
(58) FIELD OF SEARCH ...... 110/241, 242, 110/248, 250, 211, 216
185, 192, 193, 229
(56) REFERENCES CITED
U.S. PATENT DOCUMENTS
2,711,139 6/1955 Martin ................. 110/211
2,905,115 9/1959 Kendall ................ 110/211
5,363,777 11/1994 Yoshimoto el at ...... 110/241 X
FOREIGN PATENT DOCUMENTS
3112976 1/1983 Germany ................ 110/211
PRIMARY EXAMINER--Henry A. Bennett
ASSISTANT EXAMINER--Susanne C. Tinker
ATTORNEY, AGENT, OR FIRM--Robert M. Downey, P.A.
(57) ABSTRACT
A unit for disposing of refuse and contaminants by thermal oxidation includes a
housing having a bottom, side walls and a top disposed in surrounding relation
to an interior thereof. A partial wall structure divides the housing interior to
define a first thermal oxidation chamber sized and configured to contain the
refuse and contaminants and a second flue gas burning chamber disposed in
air-flow communication with said first chamber. Heating elements are provided in
the first and second chambers to raise the temperature to a predetermined level
in order to induce thermal oxidation of refuse in the first chamber and the
resultant flue gasses passing through the second chamber. An exhaust stack
receives the flue gasses exiting from the second chamber and includes a filter
therein for removing remaining contaminants from the flue gasses prior to
entering the atmosphere.
12 CLAIMS, 2 DRAWING SHEETS
(SCHEMATIC DRAWING)
<PAGE>
U.S. PATENT DEC. 3, 1996 SHEET 1 OF 2 5,579,704
(SCHEMATIC DRAWING)
<PAGE>
U.S. PATENT DEC. 3, 1996 SHEET 2 OF 2 5,579,704
(SCHEMATIC DRAWING)
<PAGE>
5,579,704
1
APPARATUS FOR DISPOSING OF REFUSE BY THERMAL OXIDATION
BACKGROUND OF THE INVENTION
1. Field of the Invention
This invention relates to a unit for disposal of refuse and contaminants, and
more particularly, to a portable unit for disposing of refuse and contaminants
by thermal oxidation, producing close to zero emissions at elevated
temperatures.
2. Description of the Related Art
The disposal of waste material presents numerous problems of environmental
and economic concern. A common means of disposal of waste material, including
contaminants, cardboard boxes, plastic, paper and other wastes products employs
the use of incinerators to burn the waste material at high temperatures. While
this method of disposal is effective to some degree, incinerators are generally
large, cumbersome and costly to manufacture and operate. For this reason, most
manufacturing facilities, medical facilities and other businesses need to
transport waste material on a regular basis to a disposal facility having an
incinerator.
Another problem associated with use of conventionally known incinerators is
the difficulty in maintaining low emissions to minimize release of harmful
pollutants to the atmosphere. The need to adapt to increasingly strict EPA
disposal guidelines places an added burden on disposal facilities, and
businesses, significantly increasing the cost of disposing of waste material.
In the related art, there have been various portable refuse treating apparatus
developed which are suitable for use at a business facility having to dispose of
waste material. In particular, the U.S. patent to Mogi, U.S. Pat. No. 5,170,724
discloses a burning apparatus having a burn-promoting plate which is
specifically designed to burn fuel and refuse while giving rise to almost no
smoke. The Mogi device employs the use of a burn-promoting plate which is
designed to cause the refuse to be burned from top to bottom in a burning
chamber. The refuse thrown in the burning chamber is ignited using fuel and a
direct flame such as, for example, a match. Thus, the refuse is burned at
relatively low temperatures. While this device is suitable for disposing of
various waste material such as cardboard boxes, grass and bark, the burning
method does not employ high enough temperatures for properly disposing of
various contaminants, including sludge, grease and medical waste products.
The Dessi, U.S. Pat. No. 5,086,713, discloses a refuse-treating unit which
is adapted to hold a predetermined amount of refuse in a chamber for
sterilization by heat to convert the refuse into at least a partly converted
sterilized mass. The sterilized mass is then compacted to convert the mass into
a compact block. While the Dessi treating unit is particularly suited for
disposal of medical waste products, it is a significantly expensive apparatus
to manufacture and, thus, is primarily limited to higher end users such as in
the medical industry. Further, the Dessi unit is not particularly suited for
disposal of other contaminants and waste products such as those commonly found
in maintenance and repair facilities, including grease, sludge, oily rags,
contaminated absorbent materials and the like.
Accordingly, there is a definite need in all industries having to regularly
dispose of refuse and contaminants for a portable, low cost device specifically
structured to dispose of refuse and contaminants through thermal oxidation
while producing close to zero emissions at elevated temperatures.
<PAGE>
2
SUMMARY OF THE INVENTION
The present invention is directed to a device for disposing of refuse and
contaminants by thermal oxidation.
More particularly, the present invention is directed to a portable, low cost
device for disposing of refuse and contaminants such as, but not limited to,
contaminated rags or wipes, oil and grease residue, contaminated absorbent
materials and medical waste by thermal oxidation and including a housing
having a bottom, side walls and a top disposed in surrounding relation to an
interior thereof. At least one partial wall structure divides the housing
interior to define a first thermal oxidation chamber sized and configured to
contain the refuse and contaminants therein and a second flue gas burning
chamber disposed in air-flow communication with the first chamber. The partial
wall structure further defines a labyrinth to channel flow of flue gasses from
the first thermal oxidation chamber to the second flue gas burning chamber.
Heating elements are provided in the first and second chambers to raise the
temperature in order to induce thermal oxidation through convection. Baffle
means in the second chamber serve to interrupt the flow of flue gasses
therethrough, prolonging exposure of the flue gasses to the heating elements,
and thus heating the flue gasses to a predetermined temperature to ensure more
complete thermal oxidation and a maximum reduction of contaminant vapor
discharge. The flue gasses continue from the second chamber to an exhaust stack
having a filter therein for removing additional pollutants prior to the flue
gasses entering the atmosphere.
A blower introduces air from atmosphere to the housing interior, thereby
introducing sufficient oxygen to promote thermal oxidation.
Control means on the housing include a switch for actuating the blower and
heating elements. The control means may further include timer means for cycling
the heating elements between and on and off state in order to maintain a
predetermined temperature in the housing interior, while further preventing
damage to the heating elements. A portion of the top of the housing may be
defined by a movable lid or door to facilitate access to the housing interior.
A tank or tray, formed of a high temperature alloy material, may further be
provided for containing the refuse and contaminants within the first chamber,
the tray being removable from the housing interior through an access opening
exposed when the door is removed therefrom.
Accordingly, with the foregoing in mind it is a primary object of the present
invention to provide a portable, low cost device for disposing of refuse and
contaminants by thermal oxidation.
It is another object of the present invention to provide a portable, compact
device for disposing of refuse and contaminants by thermal oxidation, while
producing close zero harmful emissions at elevated temperatures.
It is a further object of the present invention to provide a device or unit
for disposing of refuse and contaminants by thermal oxidation and which employs
the use of high temperature heating elements to generate temperatues in excess
of 2,800 degrees fahrenheit within burning chambers of the unit, and including
means for cycling the heating elements on and off to maintain a predetermined
temperature and to prevent damage to the heating elements.
It is still a further object of the present invention to provide a unit for
disposing of refuse and contaminants by thermal oxidation, and wherein the unit
is portable and adapted to operate on common 110 volts.
<PAGE>
5,579,704
3
It is still a further object of the present invention to provide a unit for
disposing of refuse and contaminants and including high temperature heating
elements to induce thermal oxidation through convection while producing close to
zero emissions so as to provide a practical and economical means of complying
with Environmental Protection Agency waste disposal guidelines.
It is yet another object of the present invention to provide a unit for
disposing of refuse and contaminants, as described above, which complies with
all government imposed safety requirements.
These and other objects and advantages of the present invention will be more
readily apparent in the description which follows.
BRIEF DESCRIPTINO OF THE DRAWINGS
For a fuller understanding of the nature of the present invention reference
should be had to the following detailed description taken in connection with the
accompanying drawings in which:
FIG. 1 is a front, top perspective view, in partial cut-away of the refuse
disposal unit of the present invention;
FIG. 2 is a front elevation, in partial section, of the refuse disposal unit;
and
FIG. 3 is a schematic diagram illustrating the various electrical components
of the unit.
Like reference numerals refer to like parts throughout the several views of
the drawings.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Referring to the several views of the drawings, and initially FIGS. 1 an 2,
there is generally illustrated the unit 10 of the present invention for
disposing of refuse and contaminants. The unit 10 is comprised of a housing 12
including a bottom 14, side walls 16, 17, 18, 19 and a top 15 disposed in
surrounding relation to an interior 23 of the housing 12. The housing further
includes a movable door 20, defining at least a portion of the top 15 of the
housing 12, the door 20 being hingedly attached to a remainder of the housing
12 by hinge means 26, whereupon movement of the door 20 to an open position, as
seen in FIG. 1, exposes an access opening 22 through the top of the housing,
thereby facilitating access to the interior 23. The exterior walls, including
top 15, bottom 14 and side walls 16, 17, 18, and 19 are all provided with a
ceramic insulation 24 to contain heat within the housing interior 23 and to
prevent and outer skin 25 of the housing from becoming hot.
The interior of the housing includes a partial wall structure 30. In a
preferred embodiment, the partial wall structure 30 includes a first partial
wall 32 extending downwardly from the top 15 and terminating at a lower free
distal edge 33 in spaced relation above an interior surface 14' of the bottom
14 so as to define a gap 34 therebetween. In a preferred embodiment, the partial
wall structure 30 further includes a second partial wall 36 extending upwardly
from the interior surface 14' of the bottom 14 and terminating at an uppere free
distal edge 37 in spaced relation below an interior surface 15' of the top 15 to
define a gap 38 therebetween.
The partial wall structure 30, including first wall 32 and second wall 36
further serve to define a first thermal oxidation chamber 40 and a second flue
gas burning chamber 50. The partial wall structure 30 forms a labyrinth to
direct
<PAGE>
5,579,704
4
flue gasses (resulting from thermal oxidation of refuse in the first chamber 40)
from the first chamber 40 to a lower portion of the second chamber 50. A tray 46
formed of a high temperature alloy material is provided for containing the
refuse, contaminants and generally any waste material for thermal oxidation in
the first chamber 40. The tray 46 is specifically sized and configured to be
inserted and removed through the access opening 22, thereby facilitating
placement and removal of the refuse from within the thermal oxidation chamber
40.
Heat generating means 60 are provided within the housing interior 23 including
first heating elements 62 within the interior under-side of the door 20, as seen
in FIGS. 1 and 2. Preferably the first heating elements 62 are at least
partially embedded or recessed within the underside of the door 20 to prevent
damage thereto when placing and removing the tray 46 from within the chamber 40.
A second set of hearing elements 64 are provided within the second chamber 50,
for burning flue gasses as they pass therethrough. Referring to FIG. 2 the flow
of the flue gas is shown by the arrows, wherein the first heating elements 62
induce thermal oxidation of the contents within the tray 46, resulting in the
flue gasses existing a top thereof. The flue gasses are thereafter directed
through the labyrinth defined by the partial wall structure 30, and into a lower
portion of the second chamber 50. Baffles 68 in the second chamber 50 serve to
interrupt flow of the flue gasses through the second chamber 50, thereby
prolonging exposure of the flue gasses to the heating elements 64. In a
preferred embodiment, the heating elements 62, 64 are preferably high
temperature super electronic heating elements capable of generating temperatures
in excess of 2,800 degrees fahrenheit. Exposure of the flue gasses to the
heating elements 64 in the second chamber 50 serves to ensure more complete
thermal oxidation and a maximum reduction of contaminant vapor discharge into a
flue stack 70. The flue stack 70 is further provided with a filter means 74,
preferably a charcoal activated filter, which may be removable from the stack
for cleaning and replacement. The filter means 74 removes remaining pollutants
or contaminants in the flue gasses existing the second chamber 50. Thereafter,
gasses exiting to the atmosphere through the open top 72 of the flue stack 70
have close to zero harmful emissions.
To prevent accidental opening of the door 20 during thermal oxidation, and
thus preventing injury, a lock means 75 is provided. Preferably, the lock means
75 is responsive to heat in the housing interior 23; locking the door 20 when
temperatures are above a predetermined level in the housing interior 23. The
lock means 75 may comprise a bi-metallic coil sensor 76 responsive to heat. A
locking element 78 is movable into locked and unlocked engagement with the door
20 by the bi-metallic coil 76 in response to temperature changes within the
housing interior 23.
Referring to FIG. 3, there is shown a schematic diagram of the various
electrically operated components of the unit 10. In particular, there is a
control means 80 including a switch 82 operable between an open and closed
circuit position. The switch 82 may be of a dial timer device 83 (see FIG. 2.)
inw hich a timer 84 is provided to maintain the switch 82 in a closed circuit
position for a preset amount of time. Alternatively, the switch 82 may comprise
simply a togel switch or other simple switch to open and close the circuit.
The control means 80 further includes a controller circuit board 86 having a
switching mechanism 88 electrically connected with heating elements 62 and 64.
The switching
<PAGE>
5,579,704
5
mechanism 88 is specifically structured to cycle current flow to the heating
elements 62, 64 so that the heating elements 62, 64 are activated for a
predetermined time period and then deactivated for a predetermined time period
when the switch 82 is in the closed circuit position. In this manner, a
predetermined temperature level can be maintained within the housing interior
23, while further preventing damage to the heating coils 62, 64 which may result
from extended, uninterrupted operation.
A blower or fan 90 is further provided to supply air from atmosphere into the
housing interior 23, thereby introducing sufficient oxygen to promote thermal
oxidation of the refuse, contaminants or waste contents therein. The unit 10 is
electrically powered by any conventional 110 volt power source, preferably
using an electrical cord 94 having a plug 96 on a free end for plugging into a
standard electrical socket. The cord 94 supplies electrical power to the switch
82 which, when closed, directs the electric power to the controller circuit
board 86, heating elements 62, 64 and blower 90.
While the invention has been shown and described in what is considered to be a
practical and preferred embodiment, it is recognized that departures may be made
within the spirit and scope of the following claims which, therefore, should not
be limited except within the Doctrine of Equivalents.
Now that the invention has been described,
What is claimed is:
1. A unit for disposing of refuse and contamination comprising:
a housing including a bottom, side walls, and a top disposed in surrounding
relation to an interior of said housing, and an access door movable between
covering and uncovering relations to an access opening communicating with
said housing interior,
a first thermal oxidation chamber sized and configured to contain the refuse
and contaminants for thermal oxidation therein,
a second flue gas burning chamber disposed in air flow communications with
said first chamber and structured for upward passage therethrough of flue
gasses resulting from thermal oxidation of said refuse and contaminants,
a labyrinth between said first chamber and said second chamber and structured
for channeling the flue gasses from an upper portion of said first chamber
to a lower portion of said second chamber,
first heat generating means for increasing the temperature in said housing
interior to a predetermined temperature in order to induce thermal
oxidation of the refuse and contaminants contained therein,
exhaust means communicating with said second chamber for exhausting the flue
gasses to atmosphere and including a flue stack extending upwardly from a
top of said second chamber in receiving relation to the upwardly rising flue
gasses passin through said second chamber,
second heat generating means in said second chamber for heating said flue
gasses passing upwardly therethrough to promote upward rise of said flue
gasses towards said exhaust means and to ensure more complete thermal
oxidation and a reduction of contaminants in said flue gasses prior to
entering said exhaust means,
filter means contained in said flue stack for removing additional pollutants
and contaminants from the flue gasses prior to entering the atmosphere.
<PAGE>
5,579,704
6
blower means for supplying air to the housing interior to provide oxygen at
a sufficient rate and level in order to promote thermal oxidation of the
refuse and contaminants therein,
control means for actuating said first and second heat generating means and
said blower means, and
said control means including means for maintaining a predetermined temperature
in said housing interior.
2. A unit as recite din claim 1 wherein said bottom, said walls and top of
said housing include thermal insulation means therein to maintain heat within
said housing interior and further to prevent an exterior of said housig from
reaching harmful temperatures.
3. A unit as recited in claim 2 wherein said first and second heat generating
means (include high temperature electrical heating elements capable of
generating temperatures in excess of 2,800 degrees fahrenheit.
4. A unit as recited in claim 3 wherein said second chamber includes baffle
means therein for interrupting flow of the flue gasses therethrough and
prolonging exposure of the flue gasses to said second heat generating means.
5. A unit as recited in claim 4 wherein said means for maintaining a
predetermined temperature includes a switching mechanism for activating and
deactivating said first and second heat generating means.
6. A unit as recited in claim 5 further including a tray formed of a high
temperature resistant alloy material for containing the refuse and contaminants
therein for thermal oxidation within said first chamber.
7. A unit for disposing of refuse and contaminants comprising:
a housing including a bottom, side walls, and a top disposed in surrounding
relation to an interior of said housing, and an access door movable between
covering and uncovering elation to an access opening communicating with
said housing interior,
a first thermal oxidation chamber sized and configured to contain the refuse
and contaminants for thermal oxidation therein,
a second flue gas burning chamber disposed in air flow communication with said
first chamber and structured for upward passage therethrough of flue gasses
resulting from thermal oxidation of said refuse and contaminants,
a labyrinth between said first chamber and said second chamber and structured
for channeling the flue gasses from an upper portion of said first chamber
to a lower portion of said second chamber,
first heat generating means for increasing the temperature in said housing
interior to a predetermined temperature in order to induce thermal
oxidation of the refuse and contaminants contained therein,
exhaust means communicating with said second chamber for exhausting the flue
gasses to atmosphere and including a flue stack extending upwardly from a
top of said second chamber in receiving relation to the upwardly rising
flue gasses passing through said second chamber,
second heat generating means in said second chamber for heating said flue
gasses passing upwardl therethrough to promote upward rise of said flue
gasses towards said exhaust means and to ensure more complete thermal
oxidation and a reduction of contaminants in said flue gasses prior to
entering said exhaust means,
filter means contained in said flue stack for removing additional pollutants
and contaminants from the flue gasses prior to entering the atmosphere,
<PAGE>
5,579,704
7
blower means for supplying air to the housing interior to provide oxygen at
a sufficient rate and level in order to promote thermal oxidation of the
refuse and contaminants therein.
lock means for locking said access door in covering relation to said access
opening and preventing movement of said access door to an open position in
uncovering relation to said access opening when temperatures within said
housing interior are above a predetermined level, said lock means including
a first element responsive to heat and a second locking element movable into
locked and unlocked engagement with said access door by said first element
in response to temperature changes within said housing interior.
control means for actuating said first and second heat generating means and
said blower means, and
said control means including means for maintaining a predetermined temperature
in said housing interior.
8. A unit as recited in claim 7 wherein said bottom, side walls and top of
said housing include thermal insulation
<PAGE>
5,579,704
8
means therein to maintain heat within said housing interior and further to
prevent an exterior of said housing from reaching harmful temperatures.
9. A unit as recited in claim 8 wherein said first and second heat generating
means include high temperature clectrical heating elements capable of generating
temperatures in excess of 2,800 degree Fahrenheit.
10. A claim as recited in claim 9 wherein said second chamber includes baffle
means therein for interrupting flow of the flue gasses therethrough and
prolonging exposure of the flue gasses to said second heat generating means.
11. A unit as recited in claim 10 wherein said means for maintaining a
predetermined temperature ncludes a switching mechanism for activating and
deactivating said first and second heat generating means.
12. A unit as recited in claim 1 further including a tray formed of a high
temperature resistant alloy material for containing the refuse and contaminants
therein for thermal oxidation within said first chamber.
* * * * *
EXHIBIT 10.28
(SEAL)
UNITED STATES DEPARTMENT OF COMMERCE
PROVISIONAL APPLICATION PATENT AND TRADEMARK OFFICE
FILING RECEIPT ASSISTANT SECRETARY AND COMMISSIONER
OF PATENTS AND TRADEMARKS
WASHINGTON, D.C. 20231
APPLICATION NUMBER FILING DATE FIL FEE REC'D ATTORNEY DOCKET NO. DRWGS
$75.00 MANSPA 296 2
ROBERT M DOWNEY
701 BRICKELL AVENUE
SUITE 1480
MIAMI FL 33131
Receipt is acknowledged of this Provisional Application. This Provisional
Application will not be examined for patentability. Be sure to provide the
PROVISIONAL APPLICATION NUMBER, FILING DATE, NAME OF APPLICANT, and TITLE OF
INVENTION when inquiring about this application. Fees transmitted by check or
draft are subject to collection. Please verify the accuracy of the data
presented on this receipt. If an error is noted on this Filing Receipt, please
write to Box Provisional Application within 10 days of receipt. Please provide
a copy of the Provisional Application Filing Receipt with the changes noted
thereon. This Provisional Application will automatically be abandoned twelve
(12) months after its filing date and will not be subject to revival to restore
it to pending status beyond a date which is after twelve (12) months from its
filing date.
APPLICANT(S) PIERRE G. MANSUR, MIAMI, FL.
FOREIGN FILING LICENSE GRANTED 12/03/96 * SMALL ENTITY *
TITLE
FLOOR WASHING APPARATUS
(SEE REVERSE)
EXHIBIT 10.29
(SEAL)
UNITED STATES DEPARTMENT OF COMMERCE
PATENT AND TRADEMARK OFFICE
FILING RECEIPT ASSISTANT SECRETARY AND COMMISSIONER
CORRECTED OF PATENTS AND TRADEMARKS
WASHINGTON, D.C. 20231
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1308 $385.00 MANSPA196 4 17 3
</TABLE>
ROBERT M DOWNEY
SUITE 1480
701 BRICKELL AVENUE
MIAMI FL 33131
Receipt is acknowledged of this nonprovisional Patent Application. It will be
considered in its order and you will be notified as to the results of the
examination. Be sure to provide the U.S. APPLICATION NUMBER, FILING DATE, NAME
OF APPLICANT, and TITLE OF INVENTION when inquiring about this application. Fees
transmitted by check or draft are subject to collection. Please verify the
accuracy of the data presented on this receipt. If an error is noted on this
Filing Receipt, please write to the Application Processing Division's Customer
Correction Branch within 10 days of receipt. Please provide a copy of the Filing
Receipt with the changes noted thereon.
APPLICANT(S) PIERRE G. MANSUR, MIAMI, FL.
CONTINUING DATA AS CLAIMED BY APPLICANT--PROVISIONAL APPLICATION NO.
FOREIGN FILING LICENSE GRANTED 12/19/96 * SMALL ENTITY *
TITLE
SYSTEM AND METHOD OF VAPOR RECOVERY IN INDUSTRIAL WASHING EQUIPMENT
PRELIMINARY CLASS: 210
(SEE REVERSE)
EXHIBIT 10.30
(SEAL)
UNITED STATES DEPARTMENT OF COMMERCE
PATENT AND TRADEMARK OFFICE
FILING RECEIPT ASSISTANT SECRETARY AND COMMISSIONER
CORRECTED OF PATENTS AND TRADEMARKS
WASHINGTON, D.C. 20231
<TABLE>
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1313 $385.00 MANSPA396 5 19 3
</TABLE>
ROBERT M DOWNEY
701 BRICKELL AVENUE SUITE 1480
MIAMI FL 33131
Receipt is acknowledged of this nonprovisional Patent Application. It will be
considered in its order and you will be notified as to the results of the
examination. Be sure to provide the U.S. APPLICATION NUMBER, FILING DATE, NAME
OF APPLICANT, and TITLE OF INVENTION when inquiring about this application. Fees
transmitted by check or draft are subject to collection. Please verify the
accuracy of the data presented on this receipt. If an error is noted on this
Filing Receipt, please write to the Application Processing Division's Customer
Correction Branch within 10 days of receipt. Please provide a copy of the Filing
Receipt with the changes noted thereon.
APPLICANT(S) PIERRE G. MANSUR, MIAMI, FL.
CONTINUING DATA AS CLAIMED BY APPLICANT--
THIS APPLN IS A CON OF
WHICH IS A CIP OF
FOREIGN FILING LICENSE GRANTED 02/26/97 * SMALL ENTITY *
TITLE
PROCESS FOR INTEGRATED RECYCLING OF CLEANING SOLUTION IN INDUSTRIAL
WASHING EQUIPMENT
PRELIMINARY CLASS: 134
(SEE REVERSE)
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