Taronis Provides Water Pilot Update
Outlines Recent Milestones, Outlook for 2020
PHOENIX, AZ, Jan. 31, 2020 (GLOBE NEWSWIRE) -- Taronis Technologies, Inc., (“Taronis” or “the Company”) (NASDAQ: TRNX), a sustainability technologies company, today provided a comprehensive update and business outlook for the Water Pilot, LLC (“Water Pilot”) a majority-owned subsidiary of the Company. This update includes recent technology developments, new business pipeline, and a 2020 financial forecast.
First, the Company completed the engineering and design of its second-generation water governing valve technology. Provisional patents will be filed shortly on the design and use. This is a major accomplish for the Company, as this is the first core intellectual property that the Water Pilot team has delivered under Taronis ownership. With this process now complete, the Company has now transitioned to an accelerated order fulfillment mode for pending new client installations.
During the fourth quarter, the Water Pilot marketing team was significantly expanded to include multiple new third-party referral sources, which now augment the existing full time sales team. This has accelerated the new client adoption process substantially. Today, the Company has over $250,000 in executed installation orders pending for January and early February installations.
The expanded marketing program is also generating an accelerated pipeline of new clients outside the traditional Florida area of operations for the Water Pilot. The Company currently has over 30 pending contracts worth well in excess of $500,000, and potentially in excess of $1,000,000 if all orders are accepted as proposed. For this potential backlog, the Company has received verbal or written acceptance of proposed terms but has not yet proceeded with the final purchase installation.
This backlog of pending installation business excludes several highly scalable potential contracts. For example, the pilot test for two locations at a national retailer in Minnesota proceeded well, exceeding the expectations of the client’s sustainability and conservation goals. That client is now in the process of expanding the scope of installed locations using the Water Pilot’s products. This retailer has over 1,700 locations. Next, the Company has been approved to complete six paid installs in Georgia and Florida for the largest restaurant operator in the world, which has over 1,500 locations around the world.
The Company has also had meaningful success with a number of paid pilot programs with multiple scaled operators in the food, hospitality and high-density living spaces. The Company is currently in the process of finalizing agreements with several 100+ location franchise operators to scale the installation program across their entire operations. The smallest of these pending contracts is in excess of $250,000.
The Company currently estimates that the revenues for the Water Pilot should exceed $2,000,000 for 2020, with growth accelerating throughout the year. The Company will provide updated forecasts for the Water Pilot quarterly throughout the remainder of the year.
“The Water Pilot’s growth has been very impressive,” commented Scott Mahoney, CEO of Taronis. “When we acquired the majority control in this business in May of 2019, the prior management team had generated almost no paying installations. We quickly implemented new sales and marketing programs and enhanced the value proposition to clients through technical and independent validation.”
“This has quickly translated into accelerating, scaling revenues. In the third quarter of 2019, the Water Pilot generated less than $30,000 in sales. In the fourth quarter, new business contracts were almost $75,000. In January, we have over $250,000 paid installs in process. With high gross margins and limited operating expenses, we see this as a business we can quickly scale to profitability.”
“Our end objective is to align the Water Pilot marketing to fully leverage our international efforts. We are targeting many water constrained economies including Turkey, Saudi Arabia, Bahrain, and the UAE, among others. We believe that once we are permitted to fully disclose the scale of our current client list in the US, many of these international opportunities could unlock thereafter. Our goal is to convince every major desert economy to legally require the installation of our water conservation technology in every new construction build going forward,” concluded Mr. Mahoney.
About Taronis Technologies, Inc.
Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination. The Company holds a 7% royalty on the global use of its fuel generation intellectual property. The initial commercialized renewable fuel product license is disrupting an $8 billion global metal cutting fuel market.
The Company’s technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. Lastly, the technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company's website at http://www.TaronisTech.com.
Taronis also owns a controlling interest in Water Pilot, LLC. The WATER PILOT® System immediately reduces water consumption and provides you with live remote consumption monitoring for long term leak protection and water asset management. An integral, client based alarm and notification system that reports to any mobile device. Water Pilot may be appropriate for a wide range of businesses or properties with a water meter. For more information, please visit our website at www.gowaterpilot.com/
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
Released January 31, 2020