Kontrol Technologies Corp Stock Price, News & Analysis

Kontrol Technologies (OTCQB:KNRLF) has announced several strategic initiatives. The company has entered a non-binding Letter of Intent to acquire a target organization in Ontario with approximately $3 Million in revenues and $525K in EBITDA, at an anticipated multiple of 3.5x EBITDA. Additionally, Kontrol has initiated a strategic review to potentially add Bitcoin investments to its balance sheet, expected to conclude in November 2024. The company currently holds approximately $11 Million cash, with $10 Million invested in short-term GICs and Government Bonds yielding about 4%.

Kontrol Technologies Corp. (KNRLF) has been selected by multiple customers to deliver sustainability and net zero emission solutions for public sector buildings. The company is focusing on growing revenues organically and through strategic acquisitions, while reorganizing its operations under the Efficiency Engineering brand to streamline costs and enhance synergies.

CEO Paul Ghezzi emphasizes the accelerating shift towards energy efficiency and sustainability in large buildings, driven by operational needs and stakeholder requirements. Kontrol aims to prioritize acquisition targets with recurring revenues. The company's strategy aligns with the Canadian Government's goal to retrofit approximately 10 million buildings and construct millions of new net-zero buildings in the coming decades.

Kontrol Technologies Corp. is a leader in smart buildings and cities, providing solutions to improve energy management and accelerate sustainability across all buildings.

Kontrol Technologies Corp. (OTCQB:KNRLF) announced its Q2 2024 financial results and provided a corporate update. Key highlights include:

- Q2 2024 revenue of $3.7 million, down from $4.7 million in Q2 2023
- YTD 2024 revenue of $7.4 million, compared to $9.1 million in the same period last year
- YTD 2024 gross margin of 58%, slightly down from 61% in the prior year
- YTD 2024 income from continuing operations of $12.9 million, a significant improvement from a loss of $(371,057) in the same period last year
- Recognized a $13.3 million gain on sale of air monitoring and compliance related assets
- Paid off all interest-bearing bank debt, totaling $11.1 million

The company is now focused on growing its core business organically and through strategic acquisitions in the sustainable building services sector.

Kontrol Technologies Corp. (KNRLF) announced a definitive Asset Purchase Agreement to sell operational assets of its subsidiary, CEM Specialties Inc. (CEMSI), for $16.25 million, with expected total proceeds of $17.3 million. The sale will close on June 21, 2024. Proceeds will be used to boost organic growth, pursue acquisitions, and for general corporate purposes, particularly in the sustainable buildings sector. The sale includes a large USA-based industrial emissions company as the purchaser. Kontrol retains its BioCloud technology patents and plans to monetize them.

Kontrol Technologies reported Q1 2024 results, achieving $3.8M in revenue and $533,487 in net income, reversing a $469,463 loss from the same period last year. Adjusted EBITDA increased to $966,489 from $621,117. The company's gross margin improved to 62% from 59% year-over-year. Operating activities generated $443,808 in cash flow, compared to a usage of $507,538 in the prior year. Key developments include $5.8M proceeds from selling ORTECH in December 2023 and exiting a Forbearance Agreement to return to regular borrowing. The financials reflect a focus on high-margin services and recurring revenues.