BitFrontier Capital Holdings, Inc.

What they do

The company adopted the business of Purio Environmental Water Source, Inc. (PEWS), which involves selling clarified and reclaimed product water for human consumption, agricultural, industrial, domestic and recreational uses. PEWS owns patented water clarification technology (U.S. Patent 5904855 and Canadian patent application CA2277922) that mechanically separates suspended solids from liquids without membranes or filters. The company intends to retain ownership and operation of the technology and to sell the resulting water to end users. It also intends to distribute water purification equipment in Canada, the United States and internationally.

Revenue drivers

• Clarified and reclaimed product water — The core intended business is producing, processing and distributing clarified and reclaimed water for human consumption, agricultural, industrial, domestic and recreational uses. No revenue from this line has been reported.
• Water purification equipment distribution — The company intends to distribute water purification equipment in Canada and the United States through license agreements and other arrangements. No revenue from this line has been reported.
• License agreements — The company states it intends to distribute water purification equipment internationally through license agreements and other appropriate arrangements. No revenue has been reported from licensing.

Recent performance

For the three months ended June 30, 2010, the company reported a net loss of $13,888, compared to a net loss of $32,861 for the same period in 2009. Revenue for the three months ended June 30, 2010 and 2009 was zero. Total operating expenses for the 2010 quarter were $14,237, consisting of $12,191 in professional fees, $1,991 in depreciation and $55 in other selling, general and administrative expenses. For the six months ended June 30, 2010, the net loss was $16,298 and operating expenses were $16,297. From inception on November 16, 1999 through June 30, 2010, the company reported a net loss of $1,289,199 on cumulative revenue of $5,113.

Strategy

The company's stated strategy is to generate revenues through the production, processing and distribution of clarified and reclaimed product water. It intends to use PEWS's technology initially for industrial and commercial applications to reclaim water and reduce the need for fresh water. It further intends to use the technology to produce potable water for commercial and residential use. In all cases, the company intends for PEWS to retain ownership and operation of its proprietary technology and to sell the water to end users. The company also states it intends to distribute water purification equipment in Canada, the United States and internationally.

Risks

• No revenue — The company has generated no revenue in the three and six months ended June 30, 2010 or the comparable 2009 periods.
• Going concern — The company incurred a net loss of $1,289,199 from inception through June 30, 2010 and has not demonstrated an ability to generate revenue from its planned water business.
• OTC Bulletin Board trading — The common stock is quoted on the OTC Bulletin Board under the symbol 'PURO'; trading is described as often thin with wide price fluctuations, and there is no assurance a market will develop or continue.
• Concentration of control — Daryl English serves as President, CEO, CFO, Principal Accounting Officer, Secretary, Treasurer and a director, and was Managing Director of Proteus Environmental Systems Inc. when PEWS acquired the water treatment technology through a security interest.

Outlook

Management's stated plan is to generate revenues through the production, processing and distribution of clarified and reclaimed product water and to distribute water purification equipment in Canada, the United States and internationally. The company intends to use the PEWS technology initially for industrial and commercial applications and later to produce potable water for commercial and residential use. No guidance or specific revenue timeline is provided. The company notes that its forward-looking statements are predictions and actual results may differ materially.