NOTE 10 – INVESTMENT IN PARAGON WASTE SOLUTIONS LLC

Since its inception through September 30, 2021, the Company has provided approximately $6.4 million in funding to PWS for working capital and the further development and construction of various prototypes and commercial waste destruction units. No members of PWS have made capital contributions or other funding to PWS other than SEER. The intent of the operating agreement is to provide the funding as an advance against future earnings distributions made by PWS.

Payments received for non-refundable licensing and placement fees have been recorded as deferred revenue in the accompanying consolidated balance sheets. The balance as of September 30, 2021, and December 31, 2020, are $38,400 and $63,100, respectively, and are being recognized as revenue ratably over the term of the contract.