Differentiation

The main issue in the water area is the scarcity of fresh water, and most of it, is
contaminated by toxic compound and/or heavy metals making it hard water.
Our primary and secondary target market segments: hotels in Cancun and Los
Cabos, and the Government are looking for new and cheaper alternatives for
water treatment and purification. Their problems could be a little bit different,
but in the end they have a common need. 90% of the hotel industry in Cancun
and Los Cabos are currently using the Reverse Osmosis in order to desalinate
seawater and making it consumable for humans. However, this technology has
higher operational and maintenance costs, when this industry wants reduce
costs in order to be more competitive, and offers a poor purification
effectiveness due to the fact that salt is only dissolved. In addition, it cant
remove effectively the metal present in water, so the discharge of water goes
from 30% to 60% of the input.

Reverse Osmosis is also being used by the government for wastewater

treatment in many States, but due to its higher costs, the continuous lack of
resources to operate and give maintenance to these plants, and its lower level
of effectiveness, the national commission of water (CONAGUA) has shown a
strong interest in finding and switching to a better technology which provides a
higher quality of water at lower costs.

Then, there is the newest and major competing technology for the TMR
process. The PQUA system, developed by Mexican engineers, works with a
mixture of dissociating elements capable of separating and removing all

contaminants, organic and inorganic pollutants, and heavy metals by gravity

and precipitation in order to save energy. This technology offers purified water
free of odors, gases or toxic elements. Although this system has been certified
and authorized by the laboratories of the Mexican Accreditation Agency (EMA)
and that different institutions have given their validation that the water treated
with this technology meets the SSA NOM 127 standard, we assume that this
technology is more expensive in its process and maintenance due to the
following facts:

The process requires

getting purified water.

The cost of the dissociating elements and the time employed to know

water to pass through different stages before

how much of each element should be combined to obtain the desired

results.
The required infrastructure for every stage of the plant and its

maintenance.
This technology is currently under trade secret in America.

The TMR water softener system offers a higher quality of water, because after
the softener process the discharge is only 5% of the input. Among the main
features this technology provides, we can mention the following:

Eliminates all the bacteria after the softener process due to the chemical

compound.
The salt precipitates instead of being only dissolved, like in Reverse
Osmosis.

Removes the heavy metals present in the water: cadmium, arsenic and

lead (effectiveness on the rate of 95%).

It can work at different flows.
Requires the same infrastructure of a RO plant, but with less investment

(50% lower than the RO).

It has low operational and maintenance costs (70% lower than the RO).
The maintenance can be done by the same personal of the hotels or

government, with the previous and appropriate training.

It is environmental friendly. The brine production is only on the rate of
5%.