Trutankless, Inc. (: TKLS)

Trutankless, Inc. was incorporated in the state of Nevada on March 7, 2008.

The company is headquartered in Scottsdale, Arizona.

Trutankless, Inc. engages in research and development, sales, and marketing of a high quality whole house smart electric tankless water heater that is more energy efficient than conventional products.

The firm is developing a second generation product that will include Bluetooth and Zigbee capability.

A proprietary mobile application is planned for release on iOS and Android platforms to augment home automation capabilities.

Trutankless, Inc. operates through its wholly owned subsidiaries Bollente, Inc. and Tankless365, Inc.

Trutankless, Inc. generates revenue primarily from the sale of its trutankless® electric tankless water heaters.

The products are distributed through wholesale plumbing distributors, independent dealers, and manufacturers’ representatives.

The company began generating revenue in the first quarter of 2014 and reported annual sales figures that grew from $238,912 in 2014 to a peak of $1,908,708 in 2019 before declining in later years.

Sales are generally shipped Free on Board (FOB) using common carriers selected based on order volume and available rates.

In addition to hardware sales, the firm offers an online control panel accessible at home.trutankless.com that provides real time status reports, temperature adjustments, usage data and notification settings.

The online service supports the core product offering but does not constitute a separate revenue stream in the disclosed filings.

The United States gas tankless water heater market is controlled by several well known brands.

The United States electric tankless water heater market is served by a smaller group of companies.

Traditional tank water heater manufacturers continue to hold the largest share of the overall water heater market.

Japanese and European manufacturers have begun to offer their tankless products in the United States, adding to competitive pressure.

Trutankless, Inc. positions itself as a provider of high efficiency electric tankless water heaters that deliver endless hot water on demand.

The company’s custom heat exchanger, developed with patented technology, enables heating of water as it flows through the unit.

Trutankless, Inc. claims its design achieves a higher temperature rise at given flow rates compared with competing units.

Because the heater only consumes energy when hot water is required, operating costs are lower than those of conventional tank systems.

The product is engineered for a long service life with minimal maintenance requirements under normal conditions.

Integration with home automation systems through Bluetooth, Zigbee and a proprietary mobile app offers users remote monitoring and control.

Features such as leak detection, leak damage mitigation and hot water recirculation for instant hot water at the point of use further differentiate the offering.

The firm has received industry recognition including the Best of IBS 2014 Award for Best Home Technology Product from the National Association of Home Builders.

Trutankless, Inc. also earned the Governor’s Award of Merit for Energy and Technology Innovation at Arizona Forward’s 2014 Environmental Excellence Awards.

Kitchen and Bath Business Magazine granted the 2014 KBB Product Innovator’s Award Judges Choice Product to the company.

In 2015 the company was listed in Buildings Magazine’s “Money Savings Products” in the Energy Saving Measures category and received a Special Mention in the Architizer A+ Awards.

Appliance Design Magazine named Trutankless among the winners of their annual Excellence in Design Award and Green Builder Magazine selected it as a “Hot Product”.

Consumer Reports Magazine featured Trutankless in its Top 5 Remodeling Trends for 2016 and the website houzz.com honored the company with four consecutive “Best of Houzz” awards from 2014 through 2018.

Trutankless, Inc. sells its products principally to plumbing wholesale distributors and independent dealers throughout the United States.

The company relies on commissioned manufacturers’ representatives to promote its water heater lines to these distribution partners.

Specific wholesale partners that carry the trutankless® brand include Ferguson, Hajoca, WinSupply and Morrison Supply locations.

In addition to the national distributors, the company works with a network of regional distributors that serve local markets.

Approximately ninety five percent of the company’s sales have been to wholesale plumbing equipment distributors for residential and commercial repair and replace applications.

The firm also targets contractors, home builders and remodelers who install the units in new construction and renovation projects.

Trutankless, Inc. focuses its initial marketing efforts on the southern and western United States where ground water temperatures are generally higher.

These regions also experience strong population growth and represent a large share of new housing starts.

The southern United States, and especially the southeastern region, shows the highest prevalence of electric water heater usage.

In the commercial sector, the company sees demand from businesses such as retail stores, quick service restaurants, hair salons and other establishments with moderate hot water requirements.

Trutankless, Inc. believes its commercial grade units are well suited to thousands of customers in those segments.

The company’s distribution plan includes direct sales to plumbers and electricians in areas where wholesaler networks are not yet established.

Builders may also be approached directly in locales lacking established wholesaler and mechanical contractor relationships.

Traditional marketing efforts such as print advertising, participation in national trade shows and attendance at regional consumer shows complement the online strategy.

The firm provides education, training and support to its sales and installer networks to increase product familiarity and confidence among professionals.