 have a rich TV live with our very special guest, Ronnie Yeagerman, a active director and board member of Waterways Technologies, Inc. How you doing today, Ronnie? Oh, I'm doing great. Good morning, Vancouver. Good morning, Rich. It's a pleasure to be here. We've had a great half-year at Waterways and I'm excited to tell the audience how it was. Unbelievable. I mean, we spoke a couple months ago and I believe the stock was around 14 cents and it had an epic run where it just was at 28 cents. So it's 100% gain. Congratulations to members all over the world that got into Waterways Technologies. And I wanna ask you a little bit about why you're having so much success. So my first question is Waterways Technologies had revenues last year of around 12 million, which was very impressive for a stock when we first started talking, that's just around the teens, like around 13, 14, 15 cents. And in the first half of this year, you guys have already done 12 million in revenue. So can investors count on this growing revenue to continue going forward? Can you maintain this revenue growth model? That is a hard question. Thanks for asking it. We're certainly geared to do that. Of course, there's no insurance that we will do it. We're not giving any projections here. But certainly there's a few parameters which will substantiate our growth. I'm going back to the time we went public in the beginning of 2019. And we said we're gonna grow basically through expanding our marketing capabilities around the world, through technology and through mergers and acquisitions. And we've actually done just that. So we've formed, and I've already discussed that in the past, but we established a subsidiary in Canada. We actually bought the assets, the Canadian Irrigation Distributor in the first half of 2019. Took a little bit of time to reorganize. And what we have actually seen in the Canadian market specifically, we've taken our technology, Israeli technology, we opened marketing avenues in Canada. And our distributor, John Paul, before he joined our group, was doing between $2 to $2.5 million a year in Canada. We achieved in the first half of 2021, just sales in Canada alone of about $4 million a little less. We did the same thing in China, okay? So that happened in 2020. We were actually being made by the COVID and there was a big lockdown in China. It took many months and things going back to normal. But we bought the assets of our former distributor in China, having a direct sales force to Chinese farmers. And in the first half of 2021, we already had sales just in China, worth about a million dollars. Wow, that's impressive. Yep. So just take these two factors where we've taken ourselves from being a company who was predominantly wholesale and in two countries in the world, we are now selling directly to the farmers which has two things. One, it increases our sales, but it also increases substantially across margins. And therefore, the company became profitable on an EBITDA level in the first half of 2021. Huge breakthrough for you guys. Congratulations on reaching profitability and EBITDA positive and incredible revenue growth. Now, I have another question for you. You recently opened up and you talked a little bit about it, subsidiaries in Canada and China. Do you see waterways opening up more subsidiaries in other regions? And if so, where might those be? Again, these are forward-looking statements and I can't make predictions, but we've certainly targeted North America as one of our major growth factors. And I think we would like to see us having a substantial operations in the coming years in the United States, which is predominantly the largest irrigation market in the world. We can discuss California and the whole West part of the US which became arid. They need ASAP to use much better irrigation systems than flood irrigation. The Hoover Dam has, Lake Mead have gone dry at like half. I saw a picture on TV about a month ago. So we see a huge potential in the American market and we're actually seeking to go there as well. Other parts of the world which we seek to grow in are also central in South America. Wow. That's a lot of potential growth. What are the future catalysts or main growth drivers that investors can look forward to for waterways technology? Okay, so the first thing is the market, okay? Water is becoming scarce, weather is changing. We're all reading this in the news. This is coming very, very quickly to the farming industry and to growing crops. And everybody everywhere in the world is looking to have more efficient ways to grow crops because there's simply not enough water to irrigate crops around the world. Global weather warming has made changes in the weather, become very, very current. And we see huge demand in better irrigation ways. It's also much green. You don't want to absorb water in some of the projects we do or you actually want to drink water. And we've gained a lot of experience which is one of the major growth factors in handling small and mid-sized irrigation projects where the big companies from the world are not always interested in them. And that's also one of the three growth factors. Now the sales in the Canadian subsidiary have grown substantially. Congratulations on that. Does Waterways plan to open up more sales subsidiaries abroad? Abroad as if outside of Israel. Outside of Canada. Outside of Canada. We're, you know, our head office is still in Israel. Okay, so we have Canadian sub. And as I said, we may have an American sub. We have already a Chinese subsidiary and sure, we'll try to open additional subsidiaries around the world. Now your average volume dramatically has spiked over the last three months. What would you attribute this to? Is it the growing revenue? Have you guys been doing more advertising? Why would you say that so much interest is coming into Waterways technologies right now? Knowledge and know-how, mainly, okay? So, you know, we're a little bit in the capital equipment business. So the sales cycle is pretty long on one hand. But on the other hand, once you're in somewhere, they don't take you out anymore. So I'll give an example of a country where we're very active and is probably about 25% of our sales in the first half of 2021, which is Uzbekistan, to everybody it sounds like, you know, nowhere. But Uzbekistan, the government there has decided that they wanna have cotton, growing cotton as one of their key crops. And we're looking for technology, mainly from Israel, but not only to get a much better way of irrigating, better way and cost saving way to irrigate cotton. And we did a small project in 2019, or the beginning of 2020, which was extremely successful for growing cotton. And because it was so successful, we were able to win a much larger, a $4 million, actually it's five in Canadian, a $4 million contract, which we execute in the first half of 2021. And, you know, this is successful. So we, this is just natural. Now, when somebody is very satisfied of what you who are done, he'll take you also in the next coming years. We see that almost in any territory where we are active. We saw that in Canada, 2020 was, I think we had probably $4 million of sales in 2020 in Canada. We're only with that number in the first half of 2021 because people were happy with us. We gave them excellent knowledge. We saved money to the farmer and very good service. Now, Israel has become an industry hub for agricultural technology with around 400 plus agri-tech startups. Can you tell our viewers why this is happening so much in Israel? Very, very, you know, it's a very easy answer. Okay. Israel, the area of Israel is 22 square kilometers. 22,000 square kilometers. I don't know how that's probably, I don't know, it's probably times 10 square feet or something like that. So we're very small and 500 kilometers from the north to the south. And where I live, the width of the country is 15 kilometers. So it's shorter than Bathurst Street. Okay. Wow. Okay. And we're a very small land of that part, of that land, about 60% is desert. Okay. Okay. And when agriculture started, there was very, very few water in Israel. And we had our boycotts and all kinds of political stuff which I don't want to talk about right now, but we had to develop a way to feed our population. And because there was so little water and so little land, we had to develop from the time the company started very effective methods of both growing irrigating crops. And it's an industry which has been there for tens of years. And because we're so successful and the agriculture industry invested into R&D and we can see today that in the smart, the total irrigation business worldwide, about $20 billion American, so let's say 25 billion Canadian, the smart irrigation portion of that, which about $3.5 to $4 billion, is about 80% dominated by Israeli companies. And that is a sector, that is our core competence, our core knowledge, bringing smart irrigation, smart ways to utilize water and fertilizers to irrigate crops. It's incredible what you guys have been doing and it's really impressive. And the key right now for us is to understand the margin. So what type of margins do you receive on your projects? And what can investors expect longer? So our margins I have to admit are relatively low to say other sectors, but these are the margin and irrigation business. So we have about 20 to 25% margins as the company grows and we sell more direct to the farmer and not use distributors, we can expect higher margins from the companies in 2022. Saying that if we take away in the first half of 2021, if we take away, we did a capital raise, maybe we'll discuss that in a second, but we were actually in the first six months of 2021, both cash flow positive and on an EBITDA level, we had about an 8 to 9% margin on sales of $12 million. So we generated profits of about a million, link in $18 in the first half of the year. And I hope we'll be seeing profits from the company in the next four years as well. Very good. Does waterways plan to get into manufacturing or to continue signing distribution agreements? Like you guys did with AMIAD water systems. Right. That's a tough question to answer. I think strategically we would want to do, once we're making up sales, we would want to have manufacturing capabilities, but I think that's still down the road. Okay. Now those are the questions that I had. One of the questions I wanted to kind of get into a little bit is, could you just give the people that are watching that are learning about waterways technologies for the first time a brief overview on exactly what you guys do? Okay. Okay. So in a very simple manner, okay? Everybody buys tomatoes, everybody buys cucumbers, blueberries, beet, whatever. So first of all, our focus is on high yield crops, okay? And whether you grow it in an open field or you grow it in a greenhouse, anywhere in the world, crops need to be irrigated. So the most popular way to irrigate crops are in what is called flood irrigation, which means that you just spray the whole field with some water or you let rainfall irrigate the crops which is another way, of course. And that is good for some crops. For most crops, it's not. And high yield crops, the economics of selling high yield crops can substantiate a better way to invest in irrigation. So instead of taking and flooding the field with water or spraying it with water, the way we operate is we put hoses with little holes in them that actually carry the water from a water source and drip the water as really drips the water, including the fertilizer, fertilizers that we use directly to the root of the crop. Now that has two effects. You control the amount of water that the plant is getting, not too much and not too little. Of course, you use, I don't know, probably 5% of the amount of water that you would use in flood irrigation. And you also bring the fertilizers, the fertilizers together with the water to the root of the plant. So it's probably the most sophisticated way not only to irrigate but only to also fertilize the crop. And that results not only in saving water but actually the crops themselves, you get much more crops on a designated area of the field than you would do with flood irrigation. So it's not only saving water, it's giving the farmer much larger yield than any other irrigation way. Wow, it's absolutely game changer. Now when I think about all the different companies we interview, we literally interview hundreds of companies. I can't think of another company, Ronnie, that has more revenue and a lower share price. So for investors that are watching, I still believe you guys are very undervalued, extremely under-exposed, extremely under-appreciated. Being at 24 cents today and doing 12 million in revenue and EBITDA positive for the first half of this year, if you guys can maintain that, you guys are gonna do $24 million in sales for a stock that's sitting at 24 cents. Now, typically, and this is always a little different, it depends on your share structure and your share structure is pretty reasonable, about 137 million, correct? It was 100 million up to the private placement we did in July, which was oversubscribed. We were able to raise $4.4 million in a very short period because investors really liked what they saw. I mean, it was at 12 cents at the time, which was the market price. So they're all probably happy investors. So we grew actually from 100 million to 137 million. And you're right, because we have a lot of investors who are long-term and I hope those are right now happy investors. And yes, I think the stock is undervalued tremendously. I mean, we're trading at about one or one and a half time sales. I mean, how many companies at all on the venture are profitable? I don't think there's a lot. Very few. Like I said, I interviewed hundreds of companies and there's very few that are at your price that are making even one million a year, let alone 10 million a year or 12 million a year, or you guys are on pace for 24 million. Now, when you do see companies that are priced lower but have this type of revenue, typically they have a lot of shares. So there's a lot of dilution. So that's why the price goes down, but you guys have a reasonable share structure. So you don't have a dilution problem. You've got money in the bank. And I believe when we talk last, you guys have no debt. Is that correct? No, we did have debt. The company was financed for years by Israeli banks. We have a lot of credit lines from Israeli banks. Actually, what's going to happen now that does credit. Our debt is going down, of course, because we raised money. We have probably now four million dollars in the bank. And by the way, the way we look at it, the private placement was with units where each investor got a share and a warrant. The warrant to be exercised at 18 cents, which is already in the money if you wish. So we really think that going forward, the company will have, if those warrants are exercised, it's probably another seven million dollars or so, or eight million dollars, or maybe seven, maybe seven, which means we'll have sources of about altogether about 11 million dollars. And we're not going to let that cash only sit in the bank. That's not how we operate. So that money is going to drive our sales and probably drive some acquisitions in the future. Fantastic. That's very exciting. If there was anything you wanted to share with our viewers that are going to be watching today, both live, and then once this video is done, we'll be sharing it all over social media about waterways technologies. What would it be? I think is that besides that we're a good and growing company, we're also doing good to the world, okay? So we're a company that is a green company. We're using water in a most efficient way. I haven't discussed the fact that some of our revenue comes from Africa. So we're actually also doing very good in third world countries, also in South America. So we're a green company. We're doing good to the world. We have a lot of values in the company because of that. And we're also in the field that has picking up. I mean, people are looking today at Actex. They're looking at water because everybody understands that there is a huge problem in the world. And the companies who are in this field are going to be very successful. We are living in a world now where you need to look for investments, in my opinion, that people use every day. This is what I always talk about. I like to invest in things that I use. If I use Amazon, buy Amazon. If I use Visa, buy Visa. If I use Facebook, buy Facebook. And when you think about that and you look at those companies, they've all been huge successes. Everybody uses water. We drink water. Our bodies are built with water. So without water, we are not going to exist. So in my opinion, what you guys are doing, just like you said, is good and important for humanity. I'm excited to see you guys grow. I do believe you're extremely undervalued, underappreciated, underexposed. Congratulations to all of your success so far, Ronnie. Congratulations to investors all over the world who've been able to take advantage of this undervalued, small-cap company which is making a lot of money, guys. Even though they're only at 24 cents, we're talking about a company doing 12 million in half a year. You guys are on pace to do 24 million. That's not really a small company. That's much bigger than most small companies. So I really believe people need to put water waste technologies on the radar, put it on their watch list, keep this on alert, guys. The symbol in Canada, WWT. The symbol in America, W-W-T-I-F. And thank you for joining us today. The active director and board member of Water Waste Technologies, Ronnie Jagerman. Thank you for joining us today, Ronnie. Thank you very much for hosting me today. It's really a pleasure to be here. I also thank everybody in the West Coast for coming up early and listening to us. So thank you very well. And it's the beginning of the Jewish New Year. So to our Jewish audience, I say Shanatova. Next week is Jewish Russia Shanatova. Fantastic. Well, hopefully everybody enjoys their holidays. And here in Canada, we're going into Labor Day long weekend, same with the United States. So a big long weekend coming. So thank you guys for watching. If you're not winning, you're definitely not watching. We brought your Water Waste Technologies first. It's been a big winner. Congratulations to investors. But I truly believe this is a story that is just getting started. Now, I must remind everyone that Rich TV Live is strictly for information and education purposes. Please do your due diligence. Do your research before you invest in anything that we talk about or discuss here in Rich TV Live. However, in saying that, our track record is very, very good. We've been able to identify early-stage companies, in my opinion, as good, if not better, than anyone else on the planet. And this is one of those companies that everyone needs to be aware of. Water Waste Technologies. Put it on your radar. Put it on your watch list. This is Rich from Rich TV Live with Ronnie Yeagerman, active board member and director of Water Waste Technologies. Another big winner. It's up over 100% since our first interview. And let's do this again, Ronnie. And hopefully next time we do this, you guys will be up another 100%. Who knows, you know. Thank you, Ronnie. You both did great work. Thank you, Steve, my friend. And thank you guys for watching. This is Rich from Rich TV Live, and we're out. Have a nice day, everybody. And happy holidays. Thank you.