Enzyme Environmental Solutions Inc. (EESO) is a development-stage company engaged in the manufacture of ecologically friendly cleaning products, targeting the industrial and agricultural markets. The Company’s technology utilizes enzymes, which act as catalysts to accelerate the naturally occurring processes within nature. It offers enzyme products solution based on its proprietary formulas, which use no chemicals or hazardous materials.

As a result of extensive research and development efforts, the Company has expanded its product offering from four primary products to 36 distinct products, which can be used to eliminate odor and organic matter, including blood stains, to clean carpets and counter tops, remove wall paper, and as a cleaner/degreaser.

Formerly known as Cucos Inc., EESO is headquartered in Fort Wayne, Indiana.

Source: Reuters.com, SEC Filings.

EESO is a development stage company. No revenue is reported.

No analysts cover EESO at this time.

Overview

EESO is committed to providing environmentally responsible cleaning products. Utilizing enzymes, natural catalysts produced by all living organisms for control of metabolism and growth, the Company offers solutions used in a variety of special purpose products. EESO’s enzyme products solution is based on its proprietary formulas, which use no chemicals or hazardous materials. Its wide breadth of products is a result of extensive research and development efforts.

The Company’s products include organic stain erasing pen, enzyme carpet spotter, enzyme glass and stainless steel cleaner, enzyme grease digester, industrial D cleaner, enzyme mold cleaner, rinse free cleaner, enzyme odor eliminator, and pet stain and odor remover. Its manufacturing, testing and formulating are conducted in its manufacturing plant, located in Fort Wayne, Indiana

Creating Safe and Eco-friendly Cleaning Solutions

There is a growing concern related to the use of traditional cleaning products as those substances reportedly contain chemicals harmful to health. The ingredients in several cleaning products such as tetrachloroethylene, petrochemicals, naphthalene, ammonia, chlorine are just some of the harmful subtances that present significant health risk – and chemical manufacturers often don’t put all of them on the label. According to a report, cleaning products were responsible for nearly 10% of all toxic exposures reported to U.S. Poison Control Centers in 2000. The Janitorial Products Pollution Prevention Project also reported that there were 6 out of every 100 janitors in Washington who have lost time from their jobs as a result of injuries linked to toxic cleaning products, particularly glass and toilet cleaners and degreasers. According to 2002 U.S. Geological Survey study of contaminants in U.S. stream water, 69% of streams sampled contained persistent detergent metabolites, and 66% contained disinfectants.

EESO’s cleaning solutions are based on enzymes, which are naturally occurring protein that speed the breakdown of soils. These biomolecules are found in the human digestive system to break down carbohydrates, fats or proteins present in food, and are responsible for a number of reactions and biological activities in plants, animals, human beings and micro-organisms. Through fermentation processes, specific enzymes can improve the performance of cleaning products in a wide range of applications.

EESO does not use chemicals or hazardous materials in the manufacture of its enzyme products solution. The Company looks to provide the best performing products in the competitive retail, agricultural and industrial marketplaces.

Market

The household cleaning products’ market size was estimated to be more than $5 billion in the U.S. in 2007, according to a report at ResearchandMarkets.com. A separate report indicated that environmentally friendly products still represent only a small share of the overall market size. However, the green-cleaning sector is seen to be rapidly growing as environmental health concerns associated with traditional cleaning products continue to evolve.

According to a report published at Highbeam.com, the United States demand for industrial and institutional (I&I) cleaning chemicals is projected to increase 3.8% per year, approaching $10 billion in 2010. The report indicated that value gains will be boosted by the increasing market presence of multifunctional cleaning chemicals offering sanitizing and other benefits, as well as reducing labor costs for janitorial and other cleaning operations. Meanwhile, volume growth will be much slower, due to greater use of concentrated cleaners and reduced use rates for traditional high volume raw materials, such as caustic soda, soda ash and commodity solvents, particularly chlorinated and hydrocarbon solvents, the report continued.

EESO has expanded its product offering from four primary products to 36 distinct products over the last several years. Leveraging its research and development capabilities, EESO looks to pursue new markets and develop new product offerings.

Company Highlights

In June the Company announced that EESO CEO Jared Hochstedler recently met with some significant corporations in South America, in a move that would establish the Company’s market presence in the region. In a meeting with the owner and general manager of Intradevco SA, a household and personal cleaning products company, EESO New Account Consultant Moises Zubiaur said that Hochstedler has been asked to give a proposal that would allow Intradevco to begin purchasing EESO proprietary enzymatic base and licensing its formulas.

It was also reported that Hochstedler also met with the owner and general manager of Auxitex, who showed interest in the Company’s current proprietary formulas and applications. Auxitex has also discovered another potential application for EESO formulas that could have a positive impact on the textile industry. In testing the EESO formulas, the Company finds them more cost-efficient as well as superior in their overall efficacy

In the Company’s press release, EESO expressed confidence that discussions with both South American companies will lead to long-term contracts.

Moving its domestic markets strategy forward, the Company announced in June it has taken steps to incorporate the Company in four states outside the primary formation in Nevada to facilitate streamlined commerce in those states, including Georgia, Wyoming, Iowa and its headquarters in Indiana. As of June, the Company said it has already approved 19 independent contractors in 16 states.

In July, the Company turned down a buyout offer from the Lees, saying that the latter’s original offer and counter-offer “were attractive but only a sign of bigger things to come.”

EESO has traded between $0.001-.0125 over the last 52 weeks. As of last close on Aug 21 2009, EESO closed at $0.0026, 1,200% above the 52-week low of $0.0002 set on September 17, 2008.

The MACD for EESO currently indicates a bearish signal. The MACD is below above the signal line, and the indicator is below 0, which suggests that the underlying moving averages are bearish.

Trading within its Bollinger Bands, the stock reflects neither an overbought nor oversold condition relative to its recent price trend.

Source: Thomson Financial