Janette Stevens, a chemist, patented a new process that takes contaminated water, removes pollutants, and results in clear and drinkable water. Scientists in Janettes field are very excited about this new process, which appears to have a lot of potential. After the patent was approved, Janette incorporated her own company, Stevens Environmental Solutions Ltd. (SES), investing $250,000 of her own money and transferring ownership of the patent to SES. In addition to herself, SES hired two additional researchers. The patented process is designed to work in various manufacturing and processing plants where the waste water needs to be cleaned and decontaminated. Recently, a pilot project with a small environmental clean-up company has proven to be successful, so SES has proven the concept. Although many companies appear to be very interested, SES has not yet made any sales, as these potential customers are reluctant to work with a relatively unknown company. To date, there are no similar processes comparable to what SES can do. However, SES is running out of funds and needs to raise new capital.

Required:

a) Identify the most likely items that SES currently needs the cash for.

b) Identify and discuss the stage the company is at and what might be the best source of financing available to the company and why.

c) Discuss SESs financing strategy at this point in time and what conflicts might exist between what is best for SES versus Janettes best interests.