Typically, these are companies that have a disruptive technology or have a solution to a very, very big problem in society. I do not have to speak on behalf of 35 million Californians or anyone who lives in an area where fires and things of that nature, conflagrations, have basically become a real threat to their existence. Our next presenting company believes that there is a solution for this, or at least an approach that would combat what millions of people have been dealing with. The Palisades Fire is still fresh on everyone's minds. I do not know how many of you here came to the 2017 event where we had the fires right off the hilltop, where we had to cancel both day two and day three of the conference. With that, it is my pleasure to introduce the CEO of CitroTech, Mr. Wes Bolsen.
Thank you so much.
Thank you. Appreciate you.
Yeah, of course.
Thank you.
Yeah.
It's a privilege to be here. My first of hopefully many LD Micro events, where I'm able to share with you what we're doing. I stepped in as CEO right at a year ago, and really have been reshaping what we're doing to deliver on wildfire prevention, fire protection. As a public company, we up-listed from OTC to the New York Stock Exchange in last December, we up-listed, but I got to ring the closing bell. As a NYSE company, the Safe Harbor Act applies, obviously, as a company that I want to make you aware of.
As we look at the structural changes, really over the last nine months, since the beginning of the year to now, going from that OTC to where we are, going from a holding company subsidiary to where our headquarters is Colorado, mostly because there's two states that matter a lot, Colorado and California, particularly. Our operations are out of Oceanside, California, just north of San Diego, south of L.A. here, about an hour and a half, strategically located for the manufacturing of CitroTech. When you think about a fire retardant, you should all be thinking about, okay, is that that red stuff that comes out of the sky? Yes, generally that is true. I was the former global head of wildfire prevention and protection for the company called Perimeter Solutions, ticker PRM. I helped them.
I was part of the management team as they up-listed for $2 billion on the New York Stock Exchange back in 2021, 2022. 2021, I guess. And so now about a $4 billion company. I built mine, sold it to them, and helped build up. I did everything that wasn't in the air. But when you look at our manufacturing and where we are, we also said, look, this product isn't just to prevent fires and protect assets. This isn't just a breakthrough that the first product that the Environmental Protection Agency has ever recognized in the industry. The red stuff has toxic heavy metals. Let's just be honest with each other. Let's have facts be facts. It's trace, but the cadmium, the arsenic, and other things that are in it, you do not want to repeatedly apply. But there's not been another solution.
For 50 years, this has been a fertilizer-controlled industry. It is fertilizer. It was coming out of Monsanto. That's why headquarters are out of Missouri, Clayton, Missouri, St. Louis, Missouri. What we're looking at is a product that is almost the viscosity of water that is able to treat vegetation, render it non-flammable, and so you get to, we need to get this into the market, but it also treats wood, lumber, wood products we're going to talk about. We have the ability to get partners growing. This had 20 when I did it. We now have 30 certified partners to say, how do we get these out for insurance purposes around homes and communities? We look at what we're doing from multiple programs, rail, utilities. They have vegetation management budgets. They need to prevent fires from starting under their power lines, along those railroad lines, along roadsides.
In Southern California, 80% of fires start within 20 ft of a roadside. We should do something about that. How are we going to move this, the R&D, the movements we've made to get to that, really a point where we've laid the foundation now for this company, not just a technology, not just an idea, not just a crazy science piece, but truly laid the foundation for where we're headed as a company. This three markets, wood products, wildland, prevent fires where they start, and homes, home systems, protect the home. This tier one manufacturing partner, for those who don't know Hexion, it's not a household name. That is a very ingrained name with every single lumber wood products building materials company in the world.
They sell into the likes of the leading engineered wood products companies like Weyerhaeuser, Georgia-Pacific, Louisiana-Pacific, Boise Cascade, West Fraser. They are the glues, the resins, the fabrics that hold all of those engineered wood products together but are also very flammable. This makes a lot of sense that our tier one manufacturing partner, the Federal Qualified Products list, we get on that. It's a massive catalyst, a multi-hundred million dollar opportunity to sell into the federal government, which now has been rolled up under one U.S. Office of Wildland Firefighting. My good friend, former Chief of Orange County Fire Authority, Chief Brian Fennessy, now leads the Office of Wildland Firefighting, the integrated office under the Department of the Interior, and I couldn't have had a better man, better friend leading that agency for the entire United States. This is my industry.
This is the reason I came in, knowing how to get a product, building the world's leading company in wildfire prevention, selling it to Perimeter Solutions, running Perimeter Solutions' global wildfire prevention and protection unit. Then coming back into the industry to do this, the tailwinds are at our back with fire, and we have proven people running this. My background, but excellence, operations, discipline being brought in by my Chief Operating Officer, Andrew Hotsko, to build and run this company in a disciplined way that we need to. Some people have been investors for a while. What I'm trying to do is tell you it's a new day. It's a new page. The foundation has been laid for this company to move forward, and I am thrilled to be here for it. We spend billions fighting wildfires and not much preventing them.
The reason is you couldn't repeatedly apply the red stuff over and over and over and over again, there wasn't a lot of good solutions other than just cut all the vegetation down or spray it with herbicides and kill it. Now we have something that you could actually put onto vegetation and make it non-flammable. We have mandates arriving in California and Colorado. If you're going to build a new home in the wildland-urban interface, where the wildland comes into urban conflagration, you must build it, must have fire-retardant-treated siding and building materials on those homes. Okay? Good opportunity for us to make siding. Obviously, there's some additional work beyond just fire-retardant-treated wood. You have to have weathering agents and some things. That's where the big boys will take CitroTech and integrate it in. I want to move as many million gallons as possible.
Annual, predictable, high margin, recurring revenue. 50%-70% margin, driving as many million gallons as possible into the wildland, into the wood products industry, and the tailwinds in Colorado and California and the Western United States, and globally are all moving towards we need to do something to prevent fire. We had to have a better chemistry. CitroTech is from a derived citric acid. Grain gets fermented to citric acid. Citric acid gets neutralized to potassium citrate. We use tripotassium, a little more potassium. That helps on the fire retardancy side. That's that kind of salt base, the potassium base. So tripotassium citrate is an ingredient. Coca-Cola, one of the largest purchasers of it, made out of No. 2 Yellow Corn in the Midwest, Illinois, and Iowa.
The biggest thing is the Environmental Protection Agency said every single one of the ingredients in that, I would drink it, but it doesn't taste that good. So it is safe. It's safe for humans, safe for pets, safe for the environment. When you put it on wood, not only is it make the fire retardancy, the FR-treated lumber, what you could do is UL GREENGUARD Gold, means the smoke, the vapors, the toxins coming off of it when a commercial property is burning, you have the ability to have UL GREENGUARD Gold, the lowest level of smoke and toxins. So now we have a Safer Choice product, UL GREENGUARD Gold, ASTM tested. This product is ready to go into the market. That's why we formed a 50/50 JV.
Some of the investors are like, couldn't you get revenue faster? I promise you, I am not slowing down getting revenue. But sometimes you take two steps back to take 12 steps forward, and forming the joint venture with Hexion was absolutely the right thing to do. Forming the JV with Hexion is absolutely getting the technology into the market with the right sales force, manufacturing, distribution, customer relationships. That 50/50 JV with Hexion is all about delivering this. So we have the first non-toxic product on the U.S. Forest Service qualified products list evaluation. It's going through the testing that everything else is phosphates. Everything else are these fertilizers. Everyone has built it on fertilizers. The ag industry and others may not be happy with me that I'm bringing something that is different, safer, and better, and effective.
So now we know from the testing, we have the most effective, the best efficacy fire retardant in the U.S. And without question, because not even on me saying it, the U.S. Environmental Protection Agency has never recognized a product on the EPA Safer Choice list in the fire retardant category. We are the first and only product. So now we are the most effective and the safest fire retardant ever known in the U.S. Awesome. We should be able to do something with that. You go forward and you say, okay, what fire chiefs are going to want to? Well, I guess maybe the video didn't make it in. It was a big file. That's a video.
If anybody wants to see me, I will show you 15 ft flames going across a treated area, these green treated areas, with the largest group of fire chiefs I've ever pulled together in my career. Orange County, L.A., Ventura, San Bernardino, Long Beach. Just name the biggest fire chiefs in Southern California saying, we're going to put one hell of a burnout, and we're going to see this product work in real time with the most challenging situations possible. You do that, it proves the point that this is a product that works to prevent fires. Put it on homeless encampments, put it on roadsides, put it on ingress and egress routes to safely get people out of the community, safely get fire personnel in. Let's use it under the power lines where there's a big vegetation management budget. We're not going after budgets that don't exist.
We're going after budgets that already exist that you pay in your power bill, that you pay in transportation of rail, in your roadside ignitions or in your taxes. Demand that Caltrans not just do a beautification project mowing the grass, but actually prevent fires on roadsides. That's where we're headed. So the chemistry reaches all three markets, the factory-applied wood products, the proactive ground application, where now you get into AI, predictive capabilities, where do we think the highest risks are, and where should we be putting this product? Then you get into the CitroSafe system, a product that stays in suspension. This doesn't settle.
You could put an air conditioner size unit next to your house. We have a control system, a brain, if you will, that insurance companies are saying, we don't trust humans, these unreliable people called humans, to actually turn on the system and protect their home. Could you have a control system and a brain behind it that could spray CitroTech out around the home if a fire was approaching? Absolutely. Great. We no longer are dependent on water. I could have a 100 gal- 200 gal tank, like I say, about the size of an air conditioner unit, that is able to spray out and activate, or you can activate it from your iPhone. If you're up in Tahoe and you need to have it in the L.A. Basin, that's the CitroSafe system. That is going to help homes get insured.
Build the home better with CitroTech-treated lumber, prevent fires in the community from even starting under railroad, under power lines, et cetera. If, God forbid, the fire is approaching your home, your community, you have a home that can be insured because you've done beyond fire-wise approaches, defensible space, and home hardening. This Class A fire protection moves to the point of wood production, soaks into those cellulosic fibers. Hexion brings a 170-year-old company, running in 60 countries, 45% of the global share of the adhesives. A powerful company, bringing an amazing partnership with us. From an investor standpoint, it's very discoverable. They have the right to buy the other half of the joint venture at the start of year five. That has a number of wonderful terms where we pick the higher of two independent banks.
Four years from now, given that we hit and some of these large Weyerhaeuser, Boise, Georgia-Pacific, Louisiana-Pacific, West Fraser, whatever, start integrating this in. Adoption, growth, those are not small purchases. These can be $5 million, $10 million, $15 million, $20 million per facility. A facility in Georgia by one of them starts buying, builds a line to treat the wood. That is going to keep happening year after year. They're going to produce fire-retardant-treated wood using CitroTech, and then they have facility two and three and four and five. Not unthinkable at all, and then you get into siding, you get into other cellulosic materials that CitroTech can treat through our joint venture. This is a huge launch point for what could be worth hundreds of millions, aka possibly more worth value, a billion plus, just in the joint venture form.
You go towards, but we're not getting the fire-retardant-treated wood in, so penetration is still pretty small because it's pressure-treated lumber. You have to incise it, impregnate it. You have to put borates into it. You weaken the wood anywhere from 6%-30% for traditional fire-retardant-treated wood, FRTW, that you're required to build many properties with. CitroTech, you can just dunk. I have a two-by-four, you can come up afterwards and see. You dunk that in, and it ends up making that FR-treated lumber. The proactive ground treatment, these are budgets that are mandated.
Fire departments, municipal agencies, federal, and when we get to the U.S. Forest Service, Department of the Interior, CAL Fire, and others, those come when we get on this Federal Qualified Products list, which we're, as I said, in the middle of testing, and we'll continue to submit new products, and if it's a few pieces we need to pass, it's really about timing, not if we will get there or not. We will get there. We'll reformulate. The railroad industry. Actually this is about 20 m from here, none of the videos got put in. That's too bad. I uploaded videos. They're kind of fun to watch. I'll show you all the videos later if you'd like. Brett Maas is my head of IR, Hayden IR, great firm. Brett can help meet up where I can show you videos. We sprayed underneath the bridges.
That's a creosote-soaked railroad tie with a 2,000-degree torch just sitting on it. Railroad had never seen in the history that we could do that. We treated these bridges in East Los Angeles. The homeless encampment under it tried to burn the bridge down. They had no idea what we sprayed on it. They had no idea we sprayed CitroTech. Obviously safe for them, safe for the environment, but tried to burn the bridge down twice in the next two weeks. Unbelievable. You can't have a better proof point of $800 per railroad tie times millions of dollars lost in commerce. I said, why are they trying to burn down the bridge that they live under, by the way? That's a different story. It's to get the metal out of it to sell. Utilities, these are high-voltage transmission lines.
We all know that there's some real issues with utilities, liability, fire. Instead of just doing the minimum, we're talking to utilities about spraying out as big as 50 ft around the base of this transmission line, 20 ft around every single utility pole. Brilliant idea. Flaming squirrels or birds, arcing, sparking, Mylar balloons. UCLA, when they have graduation, there are a lot of arcs and sparks and fires that start, just so you know. Mylar balloons, bad. They finally go to the installed perimeter defense deploying before the fire arrives. You're looking at this is around the home. Millions of structures in these high-risk areas that California FAIR Plan can't even cover up past $3 million. You're self-insuring anything past that, if you can even get insurance.
We're looking at what you can do to have additional capabilities and additional insurability on this, and then you get some proof. San Diego just said we need to move this as fast as possible. That's basically like a fishing seat on the front of a trailer with 500 gal of CitroTech on the back of it and a hose reel. That's about as cheap as you can make it. You can also throw it in the back of a pickup truck and be spraying it out everywhere you need to spray it. But they sprayed it on 36+ former encampment sites and had zero reignitions. Okay. It's hard to prove a negative other than when you prove a negative so well that it's impossible. It's impossible to not have reignitions in homeless encampments when you took it to zero reignitions.
Tony Tosca, the Deputy Chief of San Diego Fire-Rescue, has been leading that effort. It's now expanding in conversations throughout all of California and the Western United States. But how do you get the product out, Wes? Are you going to hire up everyone everywhere to spray it everywhere? No. What I'm going to do is form the partnerships. I'm going to form the partnerships that get it out. Everything from All Risk Shield, I'm going to call out in June, probably one of the best of the 50+ ex-firefighters that know how to protect homes, properties, environment, commercial, and otherwise, signs on the Hexion. All these joint ventures and partnerships and the things that come in, and the certified partner network on the bottom, it now says 30+ in nine months across the Western U.S.
These are all people who used to spray a red product, or thought about it, or want something different that now are with us. The single QPL, Qualified Products List, converts all the federal land in one listing. Obviously that's a major focus. I can sell on private lands, state responsibility, or local LRA, Local Responsibility Authorities, private utilities, private landowners. All the pieces until I can get on federal lands, we can drive that. We can drive the wood. Nobody's stopping you for fire-retardant-treated lumber. You've got two markets, $500+ million in the fire-retardant chemistry alone in the wood market, and you got a couple of hundred million plus. We're actually building the market. I honestly don't know how big it could be. I know how big what I was doing.
In the aerial side, you're talking $500 million-ish, dollars worth of product coming out of airplanes. I think you could have, at high end, it's at least half that big, but that's why I say $200 + million on things like I'll throw out one, Camp Pendleton. We should be treating active munition areas, unexploded ordinances, and fires. There have been five fires, at least, I believe this year in Camp Pendleton alone. We need to be treating active munition zones. That's a Defense Logistics Agency, Department of War spend, that there's not running out of money to make the community not burn down. A lot of those. Bureau of Indian Affairs, under the Department of the Interior, needs environmentally safe on our First Nations people and where we've put them. We need to respect the land and what we have to put on those lands. A lot of opportunity.
One category with a legacy player. Basically, the Qualified Products List is being rewritten to get there, and a team that has built and sold into this market. We have the right people now. Looking back at our quarterly earnings, it's really just about a channel build-out and initial pilot revenues. A couple of million dollars in revenue is not like, oh, well, what's your price to revenue? Right now that'd be like asking a startup, how many dollars in revenues you have and why is your valuation $300 million? It's much closer to a multiple of where many of where we're headed with $10 million per any one contract. Let's get to cash flow positive. We've got a real asset at the point of commercial inflection.
The channel's built out, the field is validated, the tailwinds are behind us, and we've got a clean capital structure ready to execute on these with a team. Look forward to your questions, look forward to talking to that. We got about four minutes and 15 seconds to do it. Yes, sir.
Is your product, the wood [audio distortion] is that going to satisfy the CBC Chapter 7A [audio distortion]
It is going to go under two things. The International Code Council, ICC code compliant.
[audio distortion]
I will have to look into the exact chapter. But for siding, absolutely. Anything that goes in will meet the code compliant for siding, I believe, fire retardant treated siding code compliant mandates. I am not creating the polymer. Let me just be honest with you. The weathering agent, UV exposure, wind, rain, snow, et cetera. This is the fire retardant. Next thing you have to do is make sure it stays on there. They do an accelerated weathering test. I believe it has to pass a 15-year accelerated weathering test to pass that code. Nobody has had the fire retardant that would soak into the wood first. Easy to have a polymer, Thompson's WaterSeal type approach. Yes. Other questions? Go here, and then I will come over to you.
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You're thinking military bases? Yeah. Actually one of the things I heard, is we need to get this into Okinawa immediately. We already have it on a couple of marine bases. I don't want to name them quite yet. It becomes an international issue when we, U.S. military and the government, starts a fire in Okinawa. I will be looking at what we can do. Obviously, it's a different environment. I think there's five countries that matter if I'm looking outside the U.S. Canada, Mexico, Spain, France, Greece, Italy. I'm naming a couple of others. Israel. That's about it. Australia, sorry. Forgot Australia. I can cover 90%-95% of the world market with the countries I just named. Start with U.S., about 70% of the budget.
I'm assuming it's water soluble, so if it's used on exterior stuff, it has to be reapplied or?
If it's used on vegetation, the Environmental Protection Agency. I've got to repeat the question, I'm sorry. If the product is water soluble and sprayed, how long it lasts, my investors are going to love this annual repeat application in the high-risk areas under those power lines, along those railroad lines has to naturally break down. CitroTech will break down after a heavy rainfall, and you want it to not even know you applied it, because then you'd have an environmental toxicant. That's the problem with some of the red stuff, is the buildup of heavy metals, repeat application. With lumber, if it's inside the house, it'll never see, w ell, unless a hurricane tears down your house.
Yeah. I think that the other issue with borate is that borate is great for termites too.
So is citric acid, by the way.
Is it?
Oh, yeah.
Have you done any studies on that?
There's a number of studies on a few things. One is mold inhibiting. You can add in additional mold inhibitors or additional properties. Those are great, those are easy. Termites? Termites, so from the pressure treating side, sometimes that can help putting the borates in. If you're not impregnating the wood, though, you're looking at the structural. We keep the structural integrity of the wood while putting. If you look up some of the properties and characteristics of citric acid, there's some really positive benefits on wood and lumber in that. We'll talk some more on that one. I think I missed a question somewhere. Sorry. Or maybe I got it, maybe it went there. I thought somebody in the middle had one, but.
[inaudible]
Okay, great. Last question.
[audio distortion] A little about funding-wise. You guys need to get through at least next year. [audio distortion]
It is public that we put an [S-1] out to do a common share offering, and I think our stock has been beat up pretty hard. Whenever you initiate an [S-1], investors who believe in what I just said to you would see that as an opportunity, not a negative. I would say anybody who is looking at the fundamentals of this company, the strength of this company, and what has happened, unbelievable time to buy. I am not saying that just because I am the CEO, I am saying that because we will close a round, we will get funding, we will move forward. There is not a single question I have. I have about a 99.9% certainty on this one, and I would say, over coming days and I hope to be able to deliver news to our investors that we have closed financing and moving forward.
Thank you so much. Look forward to continuing [audio distortion]