Item 1. Description of Business
General Development of Business
XAIBE INC. (the Company or Registrant) was incorporated under the
laws of the State of Nevada on July 17, 1998, and is in the early
developmental and promotional stages. To date, the Company's
only activities have been organizational, directed at acquiring
its principal asset, raising its initial capital and developing
its business plan. The Company has not commenced commercial
operations. The Company has no full time employees and owns no
real estate.
Narrative Description of Business
The Registrant acquired from David R. Mortenson, an officer of
the Company, the rights to distribute and produce an oxygen
enriched water product for fish farming, aquaculture,
mariculture, the husbandry of poultry, and for remediating animal
waste from dairies, feedlots of all kinds, and for other similar
uses. This agreement is for the State of Mississippi. Mortenson
acquired these rights from the inventors of the product, N. W.
Technologies, Inc. under a distribution agreement. This
technology promises to shorten time to market for farm raised sea
food and poultry and to cut costs in the processing of animal
waste, and at the same time making this waste less harmful to the
environment. While proprietary and not patented, this process is
virtually impossible to reverse engineer. The Company will
"black box" the generator of this product to maintain control.
General Business Plan
Background: This project is the result of technology developed by
a Houston Texas based Company, N. W. Technologies, for the
bioremediation of oil spills. N. W. Discerned that creating a
contact emulsifier, acting as a host for microbes, would speed up
the process of bioremediating this spilled oil. By breaking the
oil into colloidal (microscopic) particles, the microbes have
increased surface area (better access to the food source) and
thus could consume spilled oil much faster.
In spite of this better access to the food source, the microbes
still need a ready supply of oxygen. Below six to twelve inches
of soil depth, depending on soil type, the oxygen exchange is
virtually non existent, yet many oil spills reach far below that
level. A process called sparging utilizes perforated pipes
placed in the affected area that have air pumped into them that
is released through the perforations. This is an expensive
process to implement and may cause some of the volatile compounds
to be released cause secondary air pollution. To counter this
problem, N. W. Technologies created a product called Biocatalyst.
Biocatalyst is a water product with oxygen organically bonded to
the water molecule. When the microbe's extra-cellular enzymes
come in contact with the water/oxygen molecule structure, they
release this oxygen, making it available to the microbes. This
process provides an inexpensive way to provide the microbes with
oxygen at any depth. N. W. Technologies and their
distributors/applicators have proven that the use of this product
substantially speeds up the remediation times often by a factor
of three to ten times. N. W. Has ceased using ordinary water in
the formulation of their products relying exclusively on
Biocatalyst, as Biocatalyst does everything that the water does
and provides the extra oxygen needed when microbes are pre-mixed
with their emulsifiers.
Since N. W. Technologies only use for this product was for
bioremediationof oil spills, Mr. Mortenson was successful in
obtaining the right for use of this product for aquaculture, fish
farming, mariculture the husbandry of poultry, and the
remediation of manure ponds, and for aquariums.
The Technology: While the technology for producing this product
is proprietary, the process is organic, and uses any water
source. Once a generator is set up and producing, production can
continue indefinitely provided that water is available (minimum
of 15 gallons per hour, maximum 30 gallons per hour), that the
generator is protected from freezing, and provided that the
Companies 'biomass' is added 5 days per week. When stored for
use in beverages or other products a dilution factor of two-to-
one must be applied immediately, to insure long-term stability.
This dilution is also required when used to water poultry. When
discharged immediately into manure remediation ponds or into
ponds or tanks for raising seafood, that dilution occurs
naturally.
As part of a production package, the Company will furnish to end-
users the generator, the initial culture to create the oxygen
enriched water, and a regular supply of "biomass" to feed the
generator. The client will supply a source of usable water,
electrical power and staff to feed and operate of the
generator(s). As currently configured, each generator can
produce 720 gallons of raw undiluted product per day. Where more
than this volume is needed, multiple generators can be supplied.
The Equipment: The equipment needed to build a generator is
standard off the shelf tankage, pumps and plumbing supplies.
These are inexpensive and the generator only uses a six-foot by
ten-foot print. Total cost of an industrial grade generator is
less than $5,000.00 per unit. These units should give years of
trouble free service provided they are not abused, burned or
exposed to freezing conditions.
Markets: The Company's main target markets are: Aquaculture,
Mariculture and Fish farming. Fish farming, long used in Asia is
becoming one of the key sources of protein around the world. In
the US, particularly in southern states such as Mississippi,
catfish farming, crawfish farming and the raising of rainbow
trout have led this market. Along the gulf coast, shrimp farming
is also rapidly gaining acceptance. Virtually every state game
department also raises various varieties of game fish to release
into public waters. The single largest problem encountered in
fish farming is oxygen exchange. Utilizing one or more of the
Companies generators can solve this oxygen exchange problem
quickly and economically. The company will lease the units
needed on an annual basis and supply the Biomass as required.
Husbandry of Poultry. A study done in Washington State
demonstrated that using oxygen-enriched water had significant
economic benefits. In this study, fryers came to butcher weight
one day sooner (in a six week life span) with 5% less feed, and
weighed 5% more using oxygen enriched water. This market offers
a twofold opportunity for the Company: first is the manufacture
of the product for the chickens to drink, second is the use of
the product to accelerate microbial degradation of the manure.
Aquariums. The pet market for fish is substantial. The company
plans to generate and distribute our oxygen enriched product
through pet stores and chains for use in aquariums - both small
and large facilities. The extra oxygen will enable all bacteria
to remain aerobic (oxygen users) that help produce a healthful
environment for the fish and aquatic life. Most of the product
will be distributed in gallon containers for individual use,
however, the Company may lease generators for large facilities
such as Sea World.
Because the Company presently has little or no overhead or
other material financial obligations, management of the Company
believes that the Company's short term cash requirements can be
satisfied. What little cash might be needed in the future could
be supplied by the issuance of the Company's common stock or by
loans from directors or shareholders.
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