Kontrol Technologies Corp (KNRLF)

[Sam Dan]

Management,rightly, is attempting to counter the negative Market attitude to KNR's supposed reliance of revenue from fuel sources.
"("Kontrol" or "Company") a leader in the energy efficiency sector through IoT, Cloud and SaaS technology addresses the impact of the decline in oil prices on Kontrol's operations.

Kontrol's business operations are primarily in Ontario, Canada, however the Company has numerous US customers who represent approximately ten percent (10%) of its revenues. Kontrol's customers include owners, operators, and managers of commercial and industrial facilities. Kontrol has an established and diversified customer base. Approximately fifty percent (50%) of Kontrol's annual revenue is from repeat customer business.

Approximately 10% of Kontrol's total revenues are derived from the oil and gas sector and primarily from large cap blue chip customers. The majority of services and solutions which Kontrol provides in the oil and gas sector relate to emission compliance and is regulatory driven versus discretionary. To date there have been no changes to the services and solutions provided by Kontrol to its oil and gas customers.

For its customers in the commercial, industrial, and multi-residential real-estate sectors, the price of oil is much less than relevant than the wholesale and retail cost of electricity. Building improvements, energy savings and technology retrofits are driven primarily by the cost of electricity.

Proposed Plan of Arrangement

Due to ongoing market volatility, Kontrol is postponing its previously announced (January 22, 2020) potential plan of arrangement for its wholly owned engineering firm, Efficiency Engineering Inc. ("EEI"). EEI provides engineering services to industrial, municipal and commercial building owners across Canada, and continues to operate as a wholly owned operating subsidiary of Kontrol Energy.