Company Summary: Trutankless, Inc.

Business Overview

• Founded: Incorporated in Nevada on March 7, 2008.
• Headquarters: Scottsdale, Arizona.
• Subsidiary: Wholly owned Bollente, Inc.
• Primary activity: Research, development, sales, and marketing of high-quality, energy-efficient, whole-house smart electric tankless water heaters.
• Product Focus: Electric tankless water heaters with Wi-Fi, Bluetooth, and Zigbee capabilities, designed to outperform traditional tank and gas tankless water heaters in efficiency, durability, and capacity.

Product Details

• Main Product: Trutankless® water heaters.
• Features: Endless hot water on demand, energy savings (no hot water demand means no energy use), longer lifespan than traditional tank heaters (which last about 9 years), proprietary heat exchanger technology, and smart home automation integration.
• Innovation: Proprietary designs and patents, including a patented high-accuracy response-curved flowmeter and custom heat exchanger.
• Launch Date: Officially launched in Q1 2014.
• Sales Channels: Wholesale plumbing distributors (e.g., Ferguson, Hajoca, WinSupply, Morrison Supply, regional distributors), direct sales to plumbers, electricians, and builders.

Market and Industry

• Target Markets: Focus initially on the U.S. residential market, especially in Florida, Texas, Arizona, and the Sunbelt region—areas with high growth and energy efficiency demand.
• Market Trends: Increasing demand for electric and energy-efficient water heating solutions, driven by a trend toward electrification, renewable energy, and green building initiatives.
• Advantages over Gas: No exhaust or noise, flexible installation locations, less regulatory hurdle for electric models, suitable for areas without natural gas.

Market Position & Strategy

• Market Share: Aims to convert traditional water heater buyers to tankless systems.
• Growth Strategy: Building brand awareness among consumers through online presence, expanding wholesale network, training programs for industry professionals, and geographic expansion.
• Potential Markets: Commercial applications (restaurants, salons, businesses with moderate hot water needs) and new construction markets.

Financial and Operational Data

• Revenue:
  • 2023: $3,549 (significantly reduced after prior years' high growth; prior years ranged up to over $1.9 million in 2019).
  • 2022: $73,008.
• Employees: 4 current employees, including CEO and part-time staff; plans to increase sales and technical staff.
• Income:
  • 2023: Net loss of approximately $2,150,474.
  • 2022: Net loss of approximately $4,757,516.
• Assets (as of Dec 31, 2023): Approximately $255,790; primarily cash ($21,452), rights to use assets, trademarks, and other intangible assets.
• Liabilities (as of Dec 31, 2023): Approximately $7.8 million; includes current liabilities like accounts payable, accrued liabilities, notes payable, and convertible notes, as well as long-term lease liabilities.

Current Status

• Market Development: No active public trading market due to OTC Expert Market classification, penny stock status.
• Ownership: Around 448 stockholders of record (as of June 2024).
• Intellectual Property: Proprietary technology with patents filed; trademarks registered.
• Growth Challenges: Limited revenue, net losses, ongoing need for capital raising, and internal control weaknesses.

Summary

Trutankless, Inc. is focused on innovating electric tankless water heating with smart home integration targeting the U.S. residential and commercial markets, aiming to capitalize on the shift toward energy-efficient, energy-independent home appliances. The company has early-stage revenues, significant net losses, and a small team, with strategic plans to expand market share and develop new products, but faces financial and operational challenges.