Update from M&A for KNR
' Kontrol Energy Corp. (CSE:KNR, FSE:1K8), ("Kontrol", or the "Company") a leader in the Energy Efficiency sector through IOT, Cloud and Blockchain technology reported its Q1 2018 financial results for the three months ended March 31, 2018. Kontrol continues to execute on its growth plans and through a recently completed acquisition has added energy software as a service (SaaS) to the Company's revenue platform.
Q1 2018 Highlights
• Strong quarterly revenue of $2.19 million, up 91% over Q1 2017;
• Gross profit margin of 58%;
• Entered into Letter of Intent to acquire an emission equipment and integration company with approximately $5 Million of annual revenue and$800,000 of annual net earnings with up to 50% of revenues from US customers. Up to 30% of revenues are recurring through parts, service and ongoing monitoring;
• Terminated acquisition of a blockchain technology company and associated financing due to volatile conditions in the equity markets;
• Initiated a debenture and equity financing to complete the acquisition currently under LOI.
Subsequent Events to the Quarter
• On April 30, 2018 acquired the operating assets of iDimax a leading provider of energy analytics software and services. iDimax operates as a Software as a Service (SaaS) company with revenues in the range of $1 million per annum and its software operates in approximately 180 commercial buildings in Canada spanning approximately $12 Million square feet of real estate.
"The addition of the iDimax operating assets following Q1 2018 provide us with a solid platform of recurring revenues through a SaaS platform and a strong organic growth component to our existing operating businesses," says Paul Ghezzi, CEO of Kontrol Energy. "Our immediate goals for iDimax are to rapidly expand the technology to our consolidated customer base and accelerate expansion into the USA and integrate AI into the existing technology. We are also very pleased that we continue to add growth while maintaining less than 27 million shares outstanding and less than 30 million shares fully diluted."
Key initiatives for 2018
• Complete acquisition of emission equipment and integration company in Q3 2018 adding approximately $5 Million of annual revenue and $800,000of annual earnings with 30% of those revenues being recurring in nature;
• Integrate AI into the iDimax platform along with mobility and desktop applications;
• Expand iDmax into the US markets through existing customers;
• Enter 4 major pilots with our Smart Thermostat and blockchain solution for energy savings and carbon reduction with monetization.
