Podcast Transcript.
Disclaimer. I just typed out what I heard and I take no responsibility of the accuracy.
Your Welcome.
Q: Lay out the joint venture. How does this benefit SIRC
A: They are the perfect fit. We signed the LOI in Sept with intention of purchasing Enerev. Enerev is a sales and marketing company for solar. Due to their capability and the size of transaction they thought best to do a JV to work out the bugs and details. So we can take this great opportunity that we have and grow it to something amazing. They have a 3 part revenue stream. Solar installs from the direct sales team. We have 3rd part installs from large installs from the large solar companies across the US. We also have a group in Phoenix that works Enerev that we can very easily put up in Phoenix. Perfect fit and great opportunity for both sides.
Q: HVAC company LOI. How does that fit in.
A: SIRC has been selling AC for years. We don’t install but we have a 3rd party that we give the business to. What we have done is taking that revenue stream and taking it in house. Typically when people buy AC they want to buy solar because it doubles or triples Elec bill. The perfect fit for us.
Q: How will these additions impact revenue?
A: Complex question. With the HVAC company currently doing little over 3M year in sales. They are a 15 year old company. We are very confident that with our marketing, and systems, and our sales teams in place we could get them up to 4M in year in revenue. With Enerev their 3 part revenue stream. If you just take a look at the solar sales they are very capable of doing about a 1M month or 12M year. 3rd party installs we could get to about a 1M month or 12M year. Now if we move into Phoenix we can take on that area, he is very confident as well we can do the same type of numbers there. Obviously the revenue numbers are pretty fantastic but keep in mind this is not an instant revenue change. This will would happen over the next 6 8 10 12 months we will start seeing those numbers.
Q: Are there any other partnerships do you have.
A: We are partnered with Tesla, we do the Tesla battery walls. A lot of home we sell homes to. In So Cal there are a lot of black outs so its nice to have a battery to be independent of the black outs and stay home and work and run your house. We just recently signed on with Tesla to be their installer for their roof systems, their new solar roof. We are very excited about that. It’s a beautiful system and will be a big seller.
Q: Elon musk has said that 2021 is going to be a big year and could be very exciting.
A: Yes we are very excited.
Q: You can offer Enerev customers new battery tech and other contracting work. So what all can you offer them and how does that work
A: Main focus is roofing and solar. Those avg tickets about 30k. Then we started battery walls 13-15k for one and second gets about 22-23k then you add AC for 10k, it just increased the amount of our ticket. Our whole business plan is to cross sell through all the subs all the diff services so we can grow the business and within the business. That is what Enerev is very excited about these services to offer their clients as well.
Q: Do you plan more acquisitions in the future or their geographic areas or tech that you might be looking at for acquisition?
A: WE have several roofing companies near by that we are talking to and targeting. In the southern California area within a 100 miles of SIRC we could very easily have our revenues 50, 75, 100M. Just locally. But we have expanded to Albuquerque New Mexico with Sunpower, we are looking to Florida with Sunpower as well, Randy has been talking about going to Idaho. Randy is our sales manager and works with Sunpower and is looking at opening up different areas. And we also have the Phoenix area with Enerev so we are looking to branch out a little bit but our focus is still southern California.
Q: There is an audit under way and where does that stand and when can we expect to be fully reporting and do you have plans going beyond OTC
A: Yes that is a great question. I know our stock holders are anxious about the Audit. We are working very diligently on getting the audit completed. I see the emails back and forth between the CFO and the Auditor. We are at the final stages. We completed the audit for SIRC. We are doing the subsidiaries now Milholland and McKay. Milholland is done, McKay has a few pieces and that should be done. We have the form 10 completed to do the uplist and be a fully reporting SCC company we just need to plug in the Audit. So as far as timing goes, as soon as things are completed we are prepared to move forward and do an uplist. We will have the board review where we would like to go either it is the QB or QX. But our ultimate goal by the end of 2022 or physical year 2022 we would like the Nasdaq small cap. That’s our goal. If we get our revenues where we think they can be, I think a realistic goal for us.
