Water Now, Inc. has entered into an agreement to install and operate two (2) HydraSpin Mobile HS5500 units in the Permian Basin, a significant oil and gas producing area located in West Texas. The Company expects to generate gross revenues of approximately $4 million during the two-year term of the contract from its portion of the sale of oil reclaimed by the two units. Monthly revenue from the sale of oil is expected to begin in October. The HydraSpin Mobile HS5500 Unit allows for the separation of residual oil from water contained in the disposal sites so as to minimize environmental contamination from the contaminants contained in oil. HydraSpin units have demonstrated the ability to remove 100% of 10-micron oil droplets, while obtaining better quality discharged water.