Scientists at the New Mexico Institute of Mining and Technology, Los Alamos National Laboratory, and the University of Texas researched ways to increase the amount of potable water for their very arid, high plains states by recycling industrial wastewater. After nearly a decade of research, they developed a series of cold reactors that utilize a series of unique filtration media that can be recharged in the field and used hundreds of times, before replacing the media.

It changed everything.

The process of mining for oil and gas leaves behind a byproduct of large amounts of water. We believe this water, due to its contamination with toxic pollutants such as heavy metals, hydrocarbons, and sulfur compounds, is useless and therefore presents companies with the expensive and energy-intensive task of disposing of the water. 

Current methods of disposal include deep well injections, and open pit evaporation, both of which are very expensive and can cause environmental damage, as well as other costly and energy-intensive approaches.

Traditional industrial water evaporation pit - used to separate sludge from water

We've developed a system to treat water that is at least 50% less expensive than other methods. With the enormous gas and oil industry in front of us, we believe our cost-effective and environmentally friendly solution will be hard to pass. On top of all of this... we're hoping to keep this leg up as our technology is already patented.

In 2019 the global oil and gas industry produced 150 billion barrels of contaminated water.

This represents a $75 billion market opportunity for the treatment of produced water.

The technology was invented by scientists and engineers at the world-renowned Los Alamos National Laboratory in a unique collaboration with the University of Texas and New Mexico Tech, and then productized and commercially tested by the IX-Force.

After acquiring the rights to our patents, we spent years designing, developing, and testing our commercial products. 

We’ve won multiple grants and competitions in the startup and produced water worlds, and after validating our product with industry, we began our commercial sales program in the summer of 2019. 

Since then we’ve received our first three purchases, as well as made strides in the manufacturing space by landing a key partner in the industry.

IX water portable demonstration units (1/5th scale)

We manufacture and sell multiple products predicated on our proprietary technology. Our systems remove 99.81% of all contaminants from water (meeting US EPA, European Union, and Chinese regulations standards) at less than 50% of the cost of traditional treatment methods — all the while minimizing waste.

Below is a chart showing a typical IX Water pre and post treatment analysis.
IX Water does the job!

Each one of our modules costs around $450,000, and can be connected in a system with up to 25 modules — meaning sales can range up to $12 million per order.

We also generate revenue through the sale of replacement products and maintenance of our machines.

Management has taken a conservative approach to our operating plan.

Given the very large market for our products, sales projections take into account many factors. This includes the size of the market, geographic proximity of targeted customers, the number of IX Water machines that can be built using existing our resources, supply chain, and sub-contracting capabilities, the number of units that can be reasonably sold per salesperson per year, and the “contact to contract” steps and time required.

The use of authorized representatives, marketing partners, as well as formal manufacturer’s reps provides IX Water with a “force multiplier” for its internal sales team and marketing efforts, greatly expanding our ability to sell our products world-wide.

Overhead may appear low, but that is because Management includes the cost of manufacturing labor in Cost of Goods Sold (COGS) given our “just in time” manufacturing model.

IX Water product manufacturing relies on many out-sourced components. These include reactor casks, pumps, piping, as well as control and monitoring software and hardware. The Company has a supply chain where at least two sources within each geographic market can supply our components and raw materials.

Adequate cash flow is achieved because industrial customers are used to paying 50% of the cost of such products as a down payment, and international customers normally provide a letter of credit through an internationally-recognized bank with which IX Water’s bank can determine credit-worthiness and milestone-based payments.

*For the above chart, please see the forward-looking statements disclosure in Part I of Addendum 1 to this Exhibit A of the Company's Form C.

We believe that traditional water and sewage treatment methods just don’t cut it when it comes to industrial wastewater. Large construction and service firms have been trying to solve the problem of oil & gas produced water for years, and in our opinion they have failed. The reason these other companies fail in our view is because they bring to bear traditional water treatment tech — lots of land, chemicals, additives, and old fashioned methods. In fact, some of our competitors literally bid plant cost based on how much concrete they can pour, and how many of their people they can sell to operate the plant.

IX Water is different. Our modular machines provide real-time treatment in a modular fashion, that integrates with existing equipment, are easily scaled, and can be operated by a single person.

Our systems are much cheaper to buy and operate, and leave a dramatically less amount of waste than our competitors.

As part of our commercial testing and product refinement, we processed millions of gallons of water at a facility near Denver. The water intake was the nastiest produced and industrial water imaginable.

IX Water machines worked at such a high efficiency and efficacy that we secured a permit to put the treated water back into the South Platte River Basin.

Since we believe our product to be superior to our competitors on both the grounds of environmental sustainability and economic efficiency, we believe that within a few years we will become the default choice for produced water treatment of companies within the gas and oil extraction industry.

Our team has over 20 years of success commercializing Department of Energy innovations, and has spun out seven firms in the process.

We are a group of innovators with experience commercializing solutions for some of the world’s most intimidating problems, such as pandemic modeling and safer nuclear reactors.

The original lead inventor of our tech, Dr. Jeri Sullivan, remains on board as well. Dr. Sullivan is a giant in the wastewater management field, and her expertise and experience are considered world class by her peers.

We know that the best way to create real change in the way our private industries handle the environment is to make the sustainable solution the only economically viable choice. That is what we have done with IX Water.

You should invest in IX Water if you believe that we need to protect our planet, and one way to do that is through innovative and economically feasible market solutions.