Investor Relations
It is the vision and determined focus of Global Oceanic Designs to assist in the creation of the world’s first Underwater City. The Company intends to offer its suite of technologies to those already building this planet in order to help shift the planetary focus away from convenience and toward a new era of abundance, represented by extending human habitation to include below, on the surface, and above the world’s oceans, lakes and rivers.
Global’s recent discoveries show a clear line of sight to success in the mission of Developing Beneath the World’s Waters, and the Company is proud to present these paradigm-shattering directions to those that will manifest them for the entire planet.
Global Oceanic Designs has been very active on multiple fronts. The Company has acquired major land assets, developed facilities, built a valuable network in relevant industries, opened strategic partnerships and earned revenue for over a year since our last update.
The following is arranged primarily into “4” categories for your review.
Company Expansion / Growth
Several months after returning from Indonesia, in late February 2016, Global’s counsel notified the Board there was property neighboring our Development Facility on Cude Cemetery Rd., available via auction.
This opportunity sparked a true interest by Global, as it would bridge the construction time of developing its own wave testing facility on its own property, versus the modest time expense of refurbishing this abandoned wave facility complex, simplifying the process already set to be develop.
Independent Natural Resources, Inc. once occupied the property identified; the property was set to go to auction in only a few days! The sale was for both nonpayment of the original purchase agreement and a tax lien placed by Montgomery County.
The property was purchase at this scheduled auction by an out-of-state trust. Global Oceanic immediately entered into negotiations for the property with trust representatives, by promoting a “lease with option to purchase”, intended for immediate use of the property and its facilities.
The negotiations resulted in a lease for Global Oceanic Designs, Inc. to lease, co-occupy or use the property exclusively for three years along with the ability to extend, signed on April 21, 2016; additionally, the lease contract included an option-to-purchase all facilities and land at any time during the lease period.
One week later, a similar tax auction took place, for the physical assets that remained on the land and within the facilities. Everything that was not part of the land and facility was sold. Global Oceanic Board Members acquired on Global’s behalf assets for the company; in addition, they acted personally to acquire all other key physical assets, out-of-pocket, these items were available during this second public tax sale on the property.
Key physical assets purchased include the Tri-Pyramidal Wave Makers (Fulcrum Pond Pounders and Artificial Head etc.), all Air & Water Motor prototypes, three commercial grade SeaDog Wave Pumps in the Wave Test Tank, the Gulf trial SeaDog prototype, other undisclosed prototypes and necessary piping, valves, and select tools. The purchased items were the only items that remained after the day of the second auction on the property. All other recipients had to have all purchased items removed by 4pm that day. This was quite the day; nearly a hundred carloads of buyers were there to compete.
The entire 7.6-acre property was in a state of complete disrepair when Global Oceanic took possession. The gate was chained shut for approximately 5 years, and nature had reclaimed much of the property and damaged property facilities. From the moment, one entered the facility and attempted to proceed down the completely overgrown, crushed-concrete drive, it was obvious that a major overhaul was required. Venturing further down the drive led to the sight of the main building’s roof falling in. This was similar to the other buildings on the property. The abandoned wave tank, once used for testing wave regimes, was now overfilled with years of accumulated sludge, trash and debris.
Global Oceanic’s Board decided the company would invest $450,000 to restore and clear the entire property under lease to a groomed, finished condition. This process would include many contractors and thousands of man hours contributed towards this effort. In only twelve months, this labor of love was realized. Saving nearly $1,500,000 of the two million allotted for the virtually same system on Global’s parent site.
The repairs and upgrades touched every single piece of the property. From the inside of the well house to the exterior of every building and railing, everything was cleaned, repaired to create a pristine first class outcome. New and fresh marine coatings were added where applicable.
The work on the main building includes a new roof and new interior walls, converting it into a proper Showcase Facility. A facility comparable to our building across the street. Next level plans include the addition of a loft as meeting area, utility kitchen for normal hosting with amenities, new interior bathroom and additional office space for clients as amenities for the facility.
Next the Wave Tank on the property was drained and cleaned with not less than 360, 80-gallon bags of sediment being carried out by hand in the process. Once emptied and cleaned, the interior was coated with two full coats of Zeron, a two-part, high-grade pool epoxy both to protect the structure of the pool and to minimize interference with waves during more sensitive testing. The cost of this coating for the interior of the pool alone exceeded $17,000.
Following the interior of the Tank, the exterior of the Wave Complex was also coated with marine coating and Kool Deck was added to the topside walking surfaces. All of the SeaDogs and Tri-Pyramidal Wave Makers had to be meticulously scraped, power washed, detailed and coated in their signature Schlumberger-blue marine coating to regain the intended look and function.
Final touches were added to redefine the wave facility stairways; the wooden staircases to the top of the tank had completely rotted away. Global Oceanic replaced them with steel commercial staircases, marine coated and designed to code. The concrete platforms on which the stairs sit had completely settled away from the tank. Crews had to fill the void under each platform by pumping in a cement and mud mixture. The platform was raised the eight inches needed before the new staircases were installed.
Back inside the Wave Complex lies its semi-subterranean bunkers. Built into the Wave Test Tank, these were in need of serious repair similar to the interior of the Wave Tank. The control rooms above the bunkers are at the east and west ends of the Wave Complex, upstairs. Restored and upgraded, with improvements such as a tile entryway, carpet for comfort and cleanliness along with aesthetic appeal for wave making and controlling systems. Custom acrylic furniture for these rooms are underway. More significant is the renovation below the bunkers that are partially underground. These bunkers were flooded with eight feet of water runoff nearly reaching ground level. This happened from condensation and seepage through the unmaintained walls during facility neglect.
Bunker cleanup began with water drained and sediment again bagged and carried away. The repaired, repainted and sealed walls returned the bunkers to presentation and viewing rooms. Each bunker features two underwater viewing ports. Each port is made of 3-inch-thick clear acrylic (4 feet by 8 feet), providing direct views into the Test Tank. The east bunker already displays a working prototype, the Air & Water Motor (recovered at auction), which converts air pressure and flow rate to electricity. The other bunker is occupied by another technology, which is currently classified. Both bunkers serve as demonstration areas for new technologies under development.
The final stage of work was the exterior of the entire property. Using small bulldozers and teams of workers, the brush and overgrowth was clear to the standards of a city park, including removing small limbs on trees up to 20-feet-high. In addition, Global installed a commercial-grade 8-foot chain link fence to secure the facility by enclosing the entire property for insurance and liability reasons. This was a strong security addition made possible with the least destruction of plant life or sacrificing the signature oak tree in front of the Showcase Facility. All railings, exterior walls, tanks and steel pipes on the entire grounds were pressure washed, cleaned and recoated where applicable.
During the process of bringing this property back to first-class form and securing the required investment to do so, Global Oceanic signed a collaborative deal with SeaDog Systems, Inc. (first X–Wave Facility client).
The total value of the contract signed was $750,000. The agreement would include 2- 12 month consulting programs offered by Global Oceanic related to its collective expertise in technology development, prototyping, testing and modifying on the fly to achieve an intended result. Payment would be in the form of two annual $150,000 onetime payments from SeaDog Systems at the beginning of each year. Second, Seadog Systems Inc. would contract to use said premises for up two years for a fee of $450,000.
SeaDog’s goal for Global is to build, restore, make ready, create and develop SeaDog’s “SeaDog Wave Pump” for sale directed at a hungry market, as a viable wave technology! The technology will be offer as a onetime sale and the price determined by SeaDog Systems, Inc. SeaDog’s additional funding would pay for ongoing costs, accounting, legal, marketing materials and further R&D.
Beyond the amount that SeaDog Systems agreed to spend on the property for its utilization contract, Global Oceanic contributed another $140,000 specifically to upgrade the performance of the X-Wave facility’s wave making system. The funds used are to achieve a larger wave regime in the tank and have the ability to monitor and to control it in predictable ways. To achieve this ability, a new control system, actuator, and power supply along with a state of the art control room was install within the X-Wave Facility.
Upgrading the land and facility power grid was essential. Redundant, 3-phase, 400-amp commercial power was brought onto the property, to the Test Tank. Several holes were bored through the 18” thick concrete wave complex to run the electrical lines into Global’s renovated, state-of-the-art control room. The new power supports the upgraded electrical controls.
New computer systems to support the installed custom developed software, were purchase for running the Wave Tank’s wave makers, along with sensor testing controls. A true upgrade to the abandoned systems previously used. There are multiple screens on the walls as the showroom completes its integration. They show the various camera viewpoints via monitors reflecting sensor data from different spots around the testing area, along with live video feeds. The result is a one-of-a-kind experience for those conducting tests in this Wave Tank Complex.
The software is customizable to predetermined wave patterns and conditions as required for the group/groups testing. Three custom linear actuators, each capable of pushing 5 tons of force for a distance of 32 inches in 1 second, is controlled by their exclusive interface, designed to power the Tri-Pyramidal Wave Makers. These controls maintain the desired wave patterns generated in the X-Wave Test Tank. Additional support structures under the wave makers have been added, for more secure mounting. The increased force generated by these new actuators is impressive.
The cooperative effort between Global’s team and its contractors, designers and programmers resulted in the creation of “The X-Wave Facility”.
The X-Wave Facility, now finished will premiere as one of only five wave tanks of its kind in the United States, placing it as one of the largest in the group, in both usable area and maximum wave height. Global’s X-Wave Facility designed features accommodate a vast array of controlled wave patterns, ranging from 6-inches to 7-feet in height. Comparable wave tanks often charge $3.5k to $8k per day for the facility, operation staff and experienced personnel with the expertise to support a wide range of testing. Typically, at least a week of testing is required for any reasonable testing results: two days setup, two days testing and one final day for takedown are typical. This type of testing costs between $18k and $46k. This caliber of facility attracts customers such as the infrastructure-development community, shipbuilders, oil & gas operators, and/or wave energy companies and developers. These wave tanks often have up to six to 18-month waiting list before one would generally be able to gain access for testing.
Another key aspect to the series of events leading to the acquisition of the wave facility is the development of Global’s social network, created by the efforts of the Global’s Corporate Machine. These individuals and companies have been assembled through participation in social media platforms, online industry organizations, inquiries from media publications, invite-only executive chat interfaces and various other avenues of social networking.
The combined network’s reach exceeds 15 million contacts via industry chat rooms, private and non-private groups/organizations, followings/followers and connections. These maintained networks have preset ratios of media personalities, inventors, investors, scientific-thought leaders, multinational company executives, independent business owners, government decision-makers and similar positions of social authority as optimized for potential future cooperation with Global Oceanic Designs and its invaluable corporate machine. Global’s social media networking hub, designed as a global interface for developing on, above, and beneath our world’s waters, will innovate new forms of structures, inventions along with a vast array of discovery power and trade secrets forming a great intellectual resource.
Over the recent course of events, Global Oceanic has opened valuable direct business relationships with several new parties to advance its cause. Xcel Design Studios, Inc., headed up by Gerardo Cambronero, is a full-service Industrial Design consultancy that contributes to the Global Oceanic mission in a variety of critical areas. With over 16 years of well-rounded experience, Mr. Cambronero and his associates are proving invaluable in areas such as CAD design, patenting, manufacturing techniques, research & development, prototyping and implementing web-based solutions. Additionally, Xcel Design Studios has agreed to take on management of the X-Wave Facility tank operations and its scientific teams.
Another key addition to the Global ‘Corporate Machine’ is Gene Kleffman Services. Mr. Kleffman joined the team in large part to apply his expertise in laminating, or chemically-bonding, different surfaces together as part of manufacturing or constructing prototypes in unusual methods. In fact, he was one of the principle builders of the Mosquito Hawk I, designed by Kenneth W. Welch Jr., that exceeded the record for deepest-diving wooden submersible hull and deepest-diving non-spherical submersible hull ever. Tested April 12, 1990 when it eventually imploded at 172psig or 398 feet of depth equivalence. Separately, Gene Kleffman is also visionary, entrepreneur, and inventor; his Alumalite fixture has tremendous promise in the lighting industry and is currently an item of future interest being evaluated by Global Oceanic’s Board of Directors.
Boatswain’s Mate Enterprises, headed by Richard E. Martin, is responsible for Global’s X-Wave Facility, grounds, buildings and wave tank complex. Mr. Martin is a licensed ship captain and has operational expertise that has granted him an ability to manage a sea of moving parts without interruption. He has complete autonomy on this operational endeavor within the parameters established by Global’s management.
These newly contracted companies, collaborating with Global’s management, provide Global the ability to expand into strategic areas without leaving its core business of inventing and developing innovative, new and valuable infrastructure technologies.
Global’s ownership of the X-Wave Facility, along with its additional expertise and income systems will enhance its primary focus to provide an in-house Wave Tank facility capable of testing offshore prototypes for energy, water production, pumping along with ships, subs, subsurface structures and surface platforms.
“Designs to Shape Tomorrow’s Future!”
Financial Outlook
Global has earned strong revenue incomes both this year and last with the addition of the X-Wave Facility operation and by providing consulting services and field expertise, along with utilization agreements on Global’s wave facilities. Global expects to continue this income process by providing services to generate solid revenue streams going forward.
Global’s Board was able to acquire a revenue-generating asset on behalf of the Shareholders by creatively leveraging the improvements on one property as cash flow capital, while developing a second property to generate income operations for the benefit of all parties involved.
Over the course of 14 months, repairs completing the facilities, buildings, wave complex and all equipment up-grades were completed. During the same period, Global restored and upgraded its original Headquarters property. The whole property is ready for new growth and development of Phase 3, following with Global’s business plan.
After finalizing the restoration of its new X-Wave facility, it appraised at $2,935,000. Using this strong appraisal, management negotiated a loan package to buy the land outright. The land purchase was complete June 15, 2017.
Additional loan proceeds along with Global’s cash flow, gave Global nearly $900,000 operating capital. These funds payed off Global’s collateralized credit line of $400,000, eliminating monthly cost.
These maneuvers, good for all parties!
SeaDog Systems added to its asset base approximately $200,000 in tangible prototype improvements, websites design, commercial engineered drawings and equipment, while providing its products national and international notoriety.
Global’s new ownership of its second property on Cude Cemetery including the X-Wave, appraised on April 17, 2017 for $2,935,000, and it owes $1,500,000 on a Promissory Note to the lender. Global’s Headquarters property appraised for $560,000 and is now debt free. These two properties provide Global with an appraised property asset value of $3,495,000, minus the outstanding first loan balance of $1,500,000. Thereby, providing Global an equity balance of $1,995,000 according to current appraisals.
After the fulfillment of its current contract with SeaDog Systems, Global Oceanic is planning to open the X-Wave Facility to other parties looking for the opportunity to test items such as Oil & Gas prototypes, ship models, or other wave energy devices.
Several industries, even the film industry, are customers of existing wave tank facilities. These future clients should provide potential revenues; on a 70% use basis the potential revenue ranges from $1,250,000 to $2,050,000 annually, this is using the average daily rate costs of $5,000 to $8,000 a day.
Operation cost of approximately $350,000 a year or about $29,000 per month when in use, the costs to operate the X-Wave Facility and property are minimal, these numbers would be 50% less when offline. Global sees this facility and property as a very profitable addition to its line of services.
SeaDog Systems and Global are completing all final upgrades to the X-Wave Facility allowing for larger wave patterns; final touches will be completed early 2018.
Once certified, the Global Oceanic Board is confident that it will be able to market SeaDog Systems through the next level of development, testing and promoting a profitable sale of the technology.
Tech Development
Of course, the core value of Global Oceanic Designs is its own technology centered on the Bi-Pyramidal and Tri-Pyramidal Structural Hulls. Several new and existing designs are currently in various stages of development and the plan remains to sell each design, once verified by an independent third party, to the groups that would actually be building these ships, submarines, buildings, or similar.
Each technology could generate millions of dollars in revenue for the Company and is designed to improve the planet for our children’s children; an estimated 100 designs of this magnitude, representing the new Age of Acrylic, remain unpublished by Global Oceanic. Global will roll out its designs a few at a time, until Global’s full package of products are sold, traded or donated to fulfill Global’s goals.
Global Oceanic has continued to develop its own technologies completely separate from its consulting services to assist SeaDog Systems in commercializing its machines. Xcel Design Studios, Inc. and Boatswain’s Mate Enterprises have been indispensable in allowing the Company to continue in its own direction. The Board has elected to assemble and make ready three structural prototypes to take to testing to determine the ability of each to withstand external pressure via hydrostatic pressure testing, to simulate particular depths of water. The prototypes will be ready for testing in as soon as 90 days, and Gene Kleffman Services has been commissioned to head the lamination and assembly efforts.
The tests will take place with a scientific institution such as Southwest Research Institute’s Ocean Engineering and Structural Testing Laboratory, in San Antonio, Texas. Each structural prototype will be subject to hydrostatic pressure in a pressure tank, for three simulated dives to predetermined depths. On the third dive, the structure is taken down to failure to discover an implosion depth. Structures built in exact scale, out of the same materials, share the same ability to withstand pressure due to depth; this is how the world determines the ability of a large structure, such as a military submarine, to survive the depths before building the full-size hull.
Successful hydrostatic testing on these Structural Prototypes will certify the ability of the three designs to withstand external pressure. At this point Global Oceanic will offer them for sale, as a package or independently to those that will build the full-size structures. Each design catered to a specific industry with the adaptability inherent within the design allowing builders to customize it for their individual use.
Explicitly, design #1 is for the hotel and resort communities, travel developers and those that are looking to use the resulting structure to tap deeply into the engine of tourism around the planet. Design #2 is a recreational application that stands alone as recreational land and ocean housing or underwater habitat for research in addition to a myriad of other small structure uses. Design #3 is created specifically for our ongoing, classified negotiations with representatives from the United States military. After three years of back-and-forth, we have agreed to create a model of one of our designs for the review of the military and its partners.
Note: Should SeaDog Systems achieve certain milestones in the development of the SeaDog, then Global Oceanic may elect to exercise its right to own an equity stake in that company. If this occurs, then the Company may elect to continue assisting in the development of alternative Energy/Water Production/Pumping technologies belonging to SeaDog Systems, under terms to be determined at that time.
Future Plans
Global Oceanic Designs will continue expansion to fulfill its collective mission of ushering in “The Age of Acrylic”. The Company will continue to build assets, acquire strategic property as appropriate, develop technology and create Shareholder value along the way.
Global is set to begin Phase 3 of its headquarters buildout. The property has already been clear and enclosed by a front wall and a commercial chain link fence on the other three sides and the buildings and walls, upgraded with new marine coatings to maintain the original look of the complex, while preserving it for many years to come.
Global’s next steps include:
Building a 600-feet-long by 40-feet-wide by 18-feet-deep pool, capable of holding 2.5 million gallons of water. This pool will be placed on the south side of the property. A 9,000-square-foot staging building will connect the pool and building. Operators will be able to gain access to the pool’s cranes and lifts inside of the building before exiting via the subsurface waterway.
Marketing, Sales and Executive Offices will be moved to a modern, three story glass office building that will be constructed on the southeast end of the the property, as one enters the gate. This brand new state of the art facility will house several companies from Global’s ‘Corporate Machine’.
The anticipated $2.5 to $3.4 million build out will take 14 to 20 months to complete. This build out will develop most of Global’s remaining headquarters property.
Another major development is Global’s Technology Billboard Directory (GTBD). A social networking directory aimed at offshore development using integrated contacts, chat rooms, group networks that connect companies, inventors, investors, developers, engineers, scientists etc. Global Oceanic has made a significant investment into cultivating its professional network. When the time comes for our Company to start calling upon the world’s builders and developers, Global’s directory, with its key relationships, will connect nearly everyone that should be involved with our message.
With less than half of the second property currently being utilize, Global will develop it to a similar level as part of creating a worldwide destination for infrastructure providers, right here on Lake Conroe. The Company will continue to be on the lookout for additional pieces of land to come available in the immediate area that will be useful in this effort. Global Oceanic will create an exceptional shopping experience like no other for potential customers to learn about “The Age of Acrylic”, by seeing and touching certified physical prototypes placed and functioning within, on, and above the Wave Pool’s water.
The explicit aim of this endeavor is to sell the technology designed and developed by Global Oceanic Designs outright to those that will actually be building these structures. The Company maintains its chosen position as designer/creator in the technology lifecycle and has no plans to enter into any type of additional licensing or manufacturing role at any point in the future. The first group of three designs offered will be certify. They are expected to sell for $7 to $20 million, which will establish a market value precedent for the new designs since they do not fit into the existing architectural paradigm of marginal differentiation.
If the entire package of technology is sold as one transaction, the projected sales price could reach as high as $300 million. This amount would result in a final value of roughly $60 per share distributed to Shareholders after loans/expenses/costs were deducted. Completing such a sale would encourage the purchasing entity or consortium to utilize the investment by pursuing the vision that we all share for an abundant future “On, Beneath and Above the World’s Waters”.
The Board of Global Oceanic Designs currently anticipates another equity offering in the near future. The growth being reported in this document has been made possible without adding new investors and with minimal dilution to all Shareholders. The Company believes that a small equity offering will be more than enough to complete the sale of the first group of Structural Hulls and allow the company to grow organically due to the revenue generated.
An estimate by Global’s Board in November 2017, suggested a probable share price change from $3.50 a share for its common stock to $7.50 per share. This uninitiated change will be implemented early to mid-2018.
In closing, Global is excited to share its ambitious and exciting plans for bridging the gap between its futuristic vision and current reality.