Profile, Inc

Stock Exchanges: OTC Bulletin Boardzgtekoxghylc
Symbol: OTC:BB: EFSF

Symbol: EFSF
Share price: US$ 1.07
Market cap: US$ 33 million
Shares issued: 29,335 million (issued and outstanding)
Free Float: 2.3 million shares
Trading volume: 45 million shares (as per Nov. 5, 2013)
Revenue 2014: US$ 22,250,000 million (April 30, 2015)
Date of report: December 1, 2013

Investment Highlights:

Oct. 14, 2013: Chairman and CEO, Clarence Karney discusses current food safety regulations and how his Company’s patent pending Food Safe 2600 process sanitizes produce, meat and poultry far beyond current FDA and USDA standards. It has already signed agreements with chemical analysis and distribution companies and has sizable revenue projections for the next several years. The Company’s stock has risen from $0.45 to $1.90 since it began trading in early Sept. 2013. Karney estimates the Company could grow to $200 million in 2016 with earnings per share equaling $1.00.

Oct. 16, 2013: The Company takes a first step in combating bio-terrorism with the launch of its corporate website. It views introduction of its business to the masses as crucial to its exposure and the message it is trying to convey, especially in view of the fact that the imminent need for the Company’s services is present in light of current international relations with threats of terrorism and biological warfare. According to Karney, the prudent steps taken by the Company in these early stages will solidify the foundation for it to change the country’s perspective on food sanitization and effectuate this mandatory paradigm shift.

29 Oct 2013: The Company announces that it has acquired 100% of Food Safe Inc., which has a patent pending process that kills pathogens and bacteria from fruits and vegetables, from Aquentium.

19 Nov 2013: The Company announces that it has entered the first phase of a systematic plan to roll-out multiple company divisions, the first of which is the truck sanitizing division. This division is already funded, thus allowing to develop a strong revenue base and further create a self-sustaining revenue stream from each truck sanitizing station in this division. “We anticipate this initial location will be fully operational by mid-December 2013,” states Clarence W. Karney, Chairman and CEO of, Inc. “We plan to have a minimum of four truck sanitizing stations operational by the end of calendar year 2014. Revenues per station are expected to average in excess of $1.7 million dollars per annum each, with net profit margins from each station conservatively estimated to exceed 20%; or $350,000 per annum per station. This is a very exciting time in our company’s evolution. We will swiftly turn the corner from a development stage company to a profitable, revenue producing one,” adds Karney.

21 Nov 2013: The Company announces that its Board of Directors has approved a 3-for-1 split of the shares of the Company’s common stock. The split, effected in the form of a stock dividend, will be distributed on December 5, 2013 to shareholders of record on December 2, 2013. The change in the stock price resulting from the stock split will be reflected on the Over-the-Counter Bulletin Board on the business day following the distribution date, December 8, 2013. “The split should further improve the liquidity of our common shares, increasing access to e-FoodSafety shares for interested investors at a time when the Company anticipates outstanding, unprecedented growth, with a number of potentially new and exciting opportunities in our development pipeline. We’re looking forward and are committed to building shareholder value in the years ahead,” says CEO Clarence W. Karney. The stock split will increase the number of shares of e-FoodSafety common stock outstanding from approximately 30 million shares to approximately 90 million shares.

25 Nov 2013: The Company announces that it has filed for a license under the Perishable Agricultural Commodities Act (PACA). This is the first step in being able to sell food safe fruits and vegetables to the United States Government and the entire food industry. The PACA is the regulatory authority of the USDA for fresh and frozen produce marketed in the United States. “We feel there is a tremendous need for our product not only at the retail grocery level, but obviously at the government level. The Defense Supply Center in Philadelphia shipped $435 million of produce to the U.S. Military worldwide in fiscal 2002,” states CEO William Karney. The stock also rises 7 cents to close at $1.10.

Corporate Overview:

The Company is a distinctively poised Company in a market niche in the often neglected market sector of the $800 billion Food Service and Supplies industry. The overall operation is based on 6 comprehensive or independent profit centers uniquely intertwined to successfully ensure that safe, reduced pathogen and pesticide-free fresh fruits and vegetables reach the end user – the consumer. Through its patent pending process and exclusive line of produce, #1 Patriot Brand, the Company expects to benefit as consumers demand higher quality fruits and vegetables. It raises the benchmark by bestowing the public its right to longevity via health-conscious alternatives.

The Company was incorporated in Nevada on October 28, 1996 as DJH
International, Inc. to market through the Internet the most effective methods and products to ensure the safety of fruit and vegetables world-wide. On October 16, 2000, the Company entered into an agreement and plan of reorganization with Global Procurement Systems, Inc. (“GPS”) whereby the Company acquired GPS. This business combination was accounted for as a reverse merger with GPS being the surviving entity for financial reporting purposes. As a result of the acquisition, the Company issued 12,540,000 shares of common stock in exchange for the outstanding shares of GPS and changed its name to, Inc..

The Company is the only one with a patent pending chemical and inspection process that can boast an entire system dedicated to protecting, certifying, and delivering food safe products that far exceed current Federal Drug Administration (FDA) requirements. Overall, it can be characterized as at the cutting edge of an emerging industry charged with the responsibility of protecting the safety of fruit and vegetables being consumed today. The process begins at the packing house/processing stage and continues along the distribution chain from packer-shippers to distribution facilities to wholesalers and finally to retailers and food providers, such as restaurants and school lunch programs. This is the entire trail from the growing, harvesting, packaging, storage and delivery stages of food safe products – literally from “ground to grocer.”

Products and Services:

The Company’s core business is focused on the premise that no other company can boast an entire system dedicated to protecting, certifying and delivering food safe products utilizing standards that far exceed current FDA requirements.

The Food Safe process
For many years, people have relied on less than effective methods of killing pathogens on fruits and vegetables. Recently, the old methods have resulted in sickness, and in some cases, death of consumers of fresh fruit and vegetables, as well as processed juices. With the introduction of the Food Safe Program utilizing chlorine in conjunction with Food Safe 2600 (the Company’s proprietary surfactant used with chlorine based systems), ozone or electronic pasteurization, virtually all pathogens, including E. Coli are reduced or eliminated at the packing house or distribution center. The additional benefit derived from this sanitation process at the packing house level is additional shelf life throughout the produce distribution chain.

The products are environmentally friendly and user friendly, efficient and effective, safe, HACCP protocol compliant and offer affordable pricing and operation plus low maintenance, all paired with consistent reliability. Use of the FOOD SAFE PROGRAM reduces and keeps bacterial counts well under USDA / FDA and most consumer group guidelines. Beyond that, there is independent verification of the results, giving consumers confidence in the safety of their food: As a part of the FOOD SAFE PROGRAM, the product is continually tested by outside labs to ensure the efficacy of results.

By utilizing the company’s newly acquired patent pending ozonation process, trucks are completely sanitized prior to leaving their departure facility. This procedure not only generates a food safe product to the end user at the arrival facility, but dramatically limits the legal liability for the growers and shippers, as well as the cold storage warehouses.

The Company’s supply point/distribution centers will provide services under three subdivisions with all products undergoing the patent pending Food Safe Process to remove any pathogens and prolong shelf life and all processing being done under the direct supervision of the Company, including third party certification of quality and condition. (1) A re-pack profit center will inspect all products for quality and condition upon arrival at the supply point/distribution center. The Company will ready products for sale and shipment after processing. (2) Load Consolidation Operations will supervise each order to ensure that it complies with customers’ needs. The Company will set up product by store drop orders in one truck for delivery. (3) Load Reconditioning Operations will inspect rejected loads of produce and provide an audit report as to expected percentage of loss and damage.

Sales and Marketing:

The fresh fruits, vegetables and produce industries are extremely competitive
and have become highly fragmented over the years. Operators have been attempting to hold or increase market share through the development and operating of traditional sales and distribution outlets. The on-line food-safe products and services marketplace is in its infancy, with no dominant business-to-business leader. The Company’s potential client base embraces virtually every wholesale, retail and food service facility that can be served by land transportation. The Company believes that on-line marketing will be effective and that others will emulate their business model. There are currently no companies that provide complete inspection services, processes and equipment. Although there are competitors that provide partial food-safe programs, the Company is the only one with the ability to recondition rejected loads of produce enable the produce to be resold to local customers of the owners/shippers. Additionally, no other facility in the nation is currently able to deliver the fresh fruit and vegetables to their customers in certified sanitized trucks.

Safe and sanitized produce is in growing demand throughout the US and abroad. With currents threats of terrorism to food supplies, and illnesses and deaths from bacteria, such as e-coli and salmonella, U.S. consumers are actively seeking remedies to these problems. On an international scale, there is a higher incidence of illnesses than in the U.S. because of technological differences and more lenient growing conditions; therefore the introduction of the company to these foreign markets will be warmly embraced. According to Karney, “The European markets will prove to be a huge revenue source for, thus adding a second chapter to the company’s evolution.”

Strategic Growth Plan:

A specific plan of operations for the next twelve (12) months has been outlined. The management team will eventually consist of approximately ten officers and/or directors. Six supervisors will oversee the operations divisions at each distribution center. The Company has no paid employees. The employees at each facility will be contracted through local vendors. Mr. Karney, his colleagues, and associates plan to devote 100% of their professional time to the success of the business upon the receipt of funding for the proposed plan of operations. The Company plans to market its products and services from its off-line supply/distribution facilities through outside sales persons and through their web site so as not to become dependent on any one customer.

The Company will set up agreements with small chains to give store drop delivery for those chains not having warehouse facilities, allowing one stop pick-up with product meeting each chains’ quality standards, while giving these chains volume buying power to allow a good value for product purchased. Additionally, the Company will provide one-stop shopping for value-added, specialty, and tropical and all mixed load items. The Company will establish relationships with shippers of produce into the area for packing or re-packing product and assessment of rejected loads for possible re-conditioning and sale. Customers requiring special services can also be accommodated. The Company will set up alliances with independent testing facilities.

The Company has also expanded the scope of its initial vision to include prospects of terminal port operations to eventually expand its ability to provide a refrigerated facility to unload fresh fruit and vegetables directly from vessels into refrigerated rooms (this will expand to include frozen products both for import and export). The export of fresh fruit and vegetables is approaching 80,000,000 units annually. This is a very conservative figure and does not include the exportation of frozen vegetables, meats and juice concentrates. When terminal port operations are in place, the Company projects capturing 1% – 2% of the above referenced market based upon managements’ close ties of the grower/shippers of product from the countries noted above. Transportation cost savings and faster delivery for outbound products to foreign destinations can be achieved improving volumes and profits. The Company has also identified a specific need for alternative receiving ports for imported fresh fruit and vegetables, which has been increasing steadily over the past twenty years and is approaching 770,000,000 units from the areas the Company has its ties. Based upon analysis of available ocean freight, handling and inland freight savings, the targeted sites will be able to capture its’ target of 1 – 2% of the import market volume in the first year of operations. The arrival of fresh produce will be quickly cleared through the port with no loss in refrigeration, which will result in increased freshness and added shelf life at the supermarkets – translating into higher profits for customers.

Initially, the company’s niche market is domestic produce sanitization. However, the company has plans to enter the U.S. meat and poultry sanitization markets. Operations will then be introduced to Europe, Asia and Third World Countries. Also, the company is looking to implement terrorism control tactics for the food industry prior to any harmful threats and/or occurrences.

Karney believes the Company’s “time has truly come”. They will set the standards for the country’s new perspective on food sanitization. There will be a paradigm shift beginning with the launch of our company’s operations. They are going to set the standards on how this $621 billion industry operates. No one is even close to the Company’s technology and procedures. They are ripe for the picking. Aside from the health conscious perspective, the imminent need for EFSF’s services is present to ward off the current threats of terrorism and biological warfare. The prudent steps taken by the Company in these early stages will only solidify the foundation for it to effectuate the mandatory changes in the food sanitization industry forever.


Chairman and Chief Executive Officer: Clarence W. Karney, is a co-founder of the Company and currently serves as its Chairman and Chief Executive Officer. Mr. Karney’s responsibilities will include the development, construction, operation, marketing and expansion of the inspection and distribution centers for the Company concept to include all field and operational personnel selection, marketing, sales and public relations implementation. Other areas of concentration will be in the long term strategic planning and expansion of the Company, as well as the continuous forecasting and monitoring of corporate sales, expenses, and cash flow. Prior to founding the Company, Mr. Karney spent 15 years as founder and President of Karney & Associates. In this capacity, he was involved in the operations and inspections for import companies sourcing fresh fruit from Central America and provided market development consulting services to DTN. Before that, Mr. Karney spent 5 years as Director of Grower Relations and F. O. B. Sales in fresh fruit and produce sales with Mendelson-Zeller Company, one of the largest firms in the industry. Preceding this position, Mr. Karney spent 12 years as a U.S. Department of Defense Procurement Agent/Contracting Officer. Prior to that, Mr. Karney spent 7 years as a U.S.D.A. Fresh Produce Inspector at terminal markets and fresh produce inspector in individual states. Mr. Karney is a professional member of various relevant organizations and on the Board of Directors of 5 A Day Produce For Better Health.

President: Patricia Ross, is a co-founder of the Company and serves as Executive Vice President. Ms. Ross will be responsible for administrative, public relations and communications. Ms. Ross has been selected as one of the 10 most influential women in the transportation and travel industry and honored as one of the 100 most influential women in Arizona. Ms. Ross has multiple experiences in start-up and turnaround business opportunities and situations and is well suited to direct the Company’s concept through its early development phases and rapid expansion. Ms. Ross was elected the first woman president of the Chamber of Commerce in Arizona, selected to represent Arizona at the White House conference for Small Business and panelist at the Governor’s Conference for Small Business. She is currently the President of the Board of Directors for the Arizona Small Business Association, an active Board of Director for National Small Business United and member in the Arizona Foundation for Women. She was also recognized in the national Directory of Who’s Who in Executives & Professionals in 1998.

Financial Projections:


Pretax revenues* – 2014: 35.0, 2015: 80.0, 2016: 200.0
Pretax income in millions – 2014: 2.2, 2015: 10.0, 2016: 41.0
Margin – 2014: 6%, 2015: 13%, 2016: 21%
Earnings per share – 2014: $0.05, 2015: $0.25, 2016: $1.00
Price/earnings – 2014: 38 times, 2015: 8 times, 2016: 2 times


The U.S. Department of Agriculture has estimated that less than 2% of all fruit and vegetables are pathogen-free at the initial packing point and less still are provided with a way to continue to eliminate the growth of pathogens during the distribution cycle. Only the Company with its Food Safe Program can provide this level of food safety. According to a National Restaurant Industry’s forecast for the next ten years, high-tech solutions will have a critical impact on food safety as higher consumer expectations will lead to improved handling and sanitation. “The higher the expectations, the stronger will be the pressure on government agencies and lawmakers to provide stricter guidelines and regulations especially in the fresh fruits, vegetables, and produce industry,” states Karney.


The Company is well poised in its market niche. Its management has developed exceptional government and corporate contacts and is considered one of the most experienced players in the fresh fruit and produce field. It not only possesses the capabilities necessary to initiate the Company’s concept, but also the skill set necessary to expand the Company on an aggressive and international basis. Because of existing contacts at various levels with government, grocery chain and food service entities, the Company enjoys an enviable position in terms of immediate business. These factors along with the Company’s cutting-edge technology, lack of equal competitors and strong business strategy and favorable share price development make it an interesting investment with the potential of a rapid onset of a steadily improving yield.