MINUTES OF THE TWENTIETH ANNUAL GENERAL MEETING
SPACE ENVIRONMENT CORPORATION
November 18, 2006
The twentieth annual general meeting of Space Environment Corporation was held in the Conference Room at the Corporation Headquarters at 221 N. Spring Creek Parkway, Suite A, Providence, Utah, on November 18, 2006. All Shareholders were notified before the meeting. W. J. Raitt notified the Company Secretary that he could not attend in person, but would ‘cyber’ attend via electronic conferencing.
Present: J. V. Eccles, R. W. Schunk, J. J. Sojka, V. B. Wickwar. Electronically Present: W. J. Raitt.
With the above quorum attending, Company President R. W. Schunk called the meeting to order at 8:13 a.m.
Minutes of the Nineteenth Annual General Meeting
The Company Secretary, J. V. Eccles, presented the minutes of the previous year's Annual General Meeting. J. J. Sojka moved to accept the Minutes of the Nineteenth Annual General Meeting. R. W. Schunk seconded the motion. The motion was passed unanimously.
The Company President R. W. Schunk presented the President's Report dated November 18, 2006. The report covers company activity from the previous Annual General Meeting on February 10, 2006 to the present annual meeting. It was noted that current funding is low, but there are three promising proposals. Several suggested clarifications to contract dates were put forward. V. B. Wickwar moved to accept the President's Report with suggested modifications. J. J. Sojka seconded the motion. The motion passed unanimously.
The Company Treasurer J. J. Sojka was unable to present the Treasurer’s Report for the year ending June 30, 2006. The accounts had not yet finished the year accounts. J.J. Sojka did indicate that two past employees of SEC, Michael Howsden and Troy Stark, have moved their pension funds from the SEC Pension Plan into their rollover IRA accounts. The previous year OH will be very close to the desired 31%.
Current Year OH. J. J. Sojka stated that due to the low contract funding levels, SEC currently has fixed overhead costs that are too high for the cash flow. Rent, utilities, and accountant costs will be too high at current cash flow levels. If a new contract comes in as expected, SEC can quickly return to the desire OH level.
Health Benefits. J. V. Eccles identified a change in the SEC medical and dental benefits. The plans remain the same, but the costs have been rising dramatically over the last 6 years. The benefits cost as a percentage of the salary for Vince Eccles is almost 15%. The policy change has limited the benefit to 14% of the annual salary after which the employee must pay for the excess benefit cost. R. W. Schunk stated that this is similar to the benefit changes that have occurred at Utah State University.
BLO Issues. R. W. Schunk reported that the U.S. Forest Service is planning to put 80 acres of land near Garden City, Utah up for sale for developers. The Bear Lake Observatory (BLO) compound is on this land lot. NASA had contracted to use the land around the BLO compound until 1999. SEC has several instruments deployed at the observatory and pays rent to Space Dynamics Laboratory, which owns the BLO trailer. V. Wickwar remind everyone that the increasing light from the surrounding community is becoming a problem for the airglow experiments at BLO, so there had already been some discussion of moving the observatory to a new location with darker night skies.
Future Developments. R. W. Schunk repeated that SEC should investigate the status of the Narod Magnetometer. The developer and builder is a single individual that build them in his garage. He has retired. The magnetometer design may be available for purchase by SEC as a future SEC product.
J. J. Sojka stated that he is talking to Paul Bernhardt of NRL about SEC designing a beacon receiver for Dr. Bernhardt’s satellite-based beacons. The current beacon receivers are build by North Western Research and cost around $50,000 each. If a beacon receiver could be designed by D. Rice of SEC using software-controlled radio receivers, the SEC designed beacon receiver might sale for around $10,000. W. J. Raitt identified an ICOM dual receiver (IC-PCR2500) for $1200 that may be the basis of such an instrument. V. Wickwar mentioned that INNOVAR of Logan, Utah could help design the electronics for market. INNOVAR specializes in building and marketing electronics for limited markets.
R. W. Schunk noted that science related funding is tight at NSF, NASA, and AFRL. AFRL, in particular, seems to be ‘on-hold’ while it transitions to Albuquerque, NM. However, Bill Borer of AFRL has asked permission to mention SEC’s name and products to larger companies that may want to collaborative help on their products. The soon-to-be-patented ESIR software was the SEC technology mentioned by Bill Borer. There are no new ionosphere topics in the AF-SBIR competition.
J. J. Sojka stated that Richard Behnke of NSF has backed away from a large DASI project. Rather, he has found some funding within the NSF to fund ‘mini’-DASI’s. The funding may be up to $20,000,000 / 2 years. This would not be MRI funding. We might be able to propose a smaller network of instruments if this funding comes to fruition.
SEC Shares. J. V. Eccles identified to W. J. Raitt that some of his shares were owed by W. J. Raitt and some of his shares were owed by the W. J. Raitt Trust. If he wished to put all shares into his trust, then he must signed his shares over to the trust on the back of the certificates in front of a notary. Once he did this he should notify SEC to make an official record of the change in ownership.
R. W. Schunk moved to adjourn and J. J. Sojka seconded to adjourn the meeting at 9:23 pm.
J. Vincent Eccles, Secretary