What is the relationship between ERD and MHTX?
MHTX does not own part or all of ERD. MHTX owns all the intellectual property, all the patents, issued, filed, and to be filed. Anything related to the micro fuel cell is or will become the property of MHTX. Accordingly, all future profit earned by commercializing the MFC will belong to MHTX. In exchange for this ownership, ERD /Bob Hockaday has received (i) funding for the project, including all payroll, rents, cost of patenting, etc. (ii) a large block of MHTX shares, (iii) a royalty agreement to pay Hockaday on future commercial sales made by MHTX. Since MHTX owns all properties, patents, etc. ERD will not entertain an IPO, at least not related to the micro fuel cell. They could develop something else in the future away from the MFC and away from certain others inventions created by Hockaday, which are also owned by MHTX. All of the above has been disclosed in our Federal filings in the form of our 10K.
