Chill pill for me is appropriate. Apologies, and your civil tone is appreciated. BUT I do see this as a scam, and I see that investors have lost a lot of money on this one, including institutional investors who normally wouldn't, or shouldn't have been caught by something like this.
My reference to your math was this: there is no operating agreement, and consequently, your estimation of the terms and value of an operating agreement is not applicable. It appears, at best, BWTR will have a one time sale of equipment. No recurring revenue. The value of the contract for BWTR, it appears, will be the sale price of the equipment less the cost to design, build, install, start up and test it. Based on your original comment, you estimate a $350k ticket price for the system. Assuming a miracle case contribution margin of 50% (personally, I expect this will be a negative gross margin project for BWTR, as I believe they will have bent over backwards just to register a sale of anything in order to show they are still in business), then BWTR makes $175k on this project. Assuming no commission payout for sales, and no allocation of overhead or fixed costs, then this profit contribution will cover SG&A expenses for slightly less than 3 1/2 days, based on the 1Q08 run rate.
Needless to say, I don't think there is much here for a long side investor.