And now realism starts with KNR as reports of SALES start to come. Hopefully, the reports will become frequent and increased in volume in the coming weeks, months and years.
" ("Kontrol" or "Company"), a leader in smart buildings and cities through IoT, Cloud and SaaS technology, is pleased to announce a $750,000 order for its continuous emissions business which includes BioCloudTM units and a separate initial order from one of Ontario's largest Electricity Generators. The continuous emissions and BioCloud revenues are anticipated to be recorded in Q1 2021.
"We are very pleased to receive a significant order in our core business with a US manufacturing customer which also includes 2 BioCloud units as part of a package sale," says Paul Ghezzi, CEO of Kontrol. "Our corporate strategy is to quote BioCloud units as part of all new sales opportunities from our core business. In addition, we are pleased that one of Ontario's largest Electricity Generators has ordered an initial 2 units of BioCloud. Both customers have additional scale potential with numerous facilities. Our recent product launch and technology walk-through in December was a success and has initiated accelerating interest in how BioCloud can help create safer spaces."
Distribution Orders
To date the Company has received 40 initial distribution orders for delivery in January from its existing distribution network. The Company has entered into 6 distribution agreements (1 exclusive and 5 non-exclusive) and is in negotiations for various potential additional non-exclusive distributions agreements. Distribution is a key part of our go to market strategy that can allow the Company to scale quickly.
"In a short period of time since the official launch of BioCloud in December we have received strong interest and numerous distribution requests," says Gary Saunders, VP Kontrol. "We envision many more agreements across the globe as we focus on growing the BioCloud business."
As the Company continues to build its distribution business, we anticipate that distributors will be required to maintain a minimum of 250-unit sales per annum to retain non-exclusivity and distributor pricing. The Company's internal goal is to have 30 regional distributors established by the end of Q1 2021.
Customer Pilots
The Company plans to begin numerous pilots with both existing customers of Kontrol and new potential customers. The purpose of the pilots is to provide potential customers with various specific application use cases across their facilities. The types of pilot customers will include the sectors of commercial real-estate, grocery stores, franchised restaurants, educational facilities and other. Subject to pilot customer approval Kontrol may announce customer pilots or may operate them under non-disclosure agreement.
Recurring Revenue
The BioCloud unit operates with a proprietary detection chamber. The retail price for the detection chamber consumable will range from $400 to $500 and the recommended replacement is three times per year or whenever the detection chamber comes into contact with SARS-CoV-2. Customers that purchase multiple units will receive volume discounts for the detection chamber.
Re-Agent Supply Chain
The detection chamber includes a specific re-agent system. To date the Company has been sourcing its re-agents from the United States. The Company has initiated discussions and testing to source its re-agents from Canadian based sources. By doing so it is seeking to add more of its supply chain in Canada but also reduce the costs of the detection chamber. Further updates will be provided following additional testing.
Essential Service
Kontrol and its manufacturing supply chain operate as an Essential Service provider and do not anticipate being impacted by applicable COVID-19 shutdowns."
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