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Independent Reviews for Venture Investors

TMG.V - Underperforming.

Updated: Nov 23, 2021

Thermal Energy Group (TMG.V) is a global supplier of proprietary, energy efficiency and emissions reduction solutions to the industrial and institutional sectors. TMG.V is a fully accredited professional engineering firm, and provides a unique mix of proprietary products along with process, energy, and environmental engineering expertise.

TMG.V's proprietary products include: GEM™ - Steam Traps, FLU-ACE® - heat recovery, HEATSPONGE – Indirect contact condensing heat recovery systems, and DRY-REX™ - Low temperature biomass drying systems.

Coverage was initiated March 2021. Below is an update.

News Releases

Mar. 17 - Major US Dairy Group Reaching Sustainability Goals with Second Thermal Energy International Project: Commissioned to design and implement an extensive $1,180,000 heat recovery project with a major US dairy group.

Apr. 7 - Expands to New Larger Manufacturing, Distribution, and Administrative Centre in U.S.: The new location features approximately 25,000 square feet of warehouse, manufacturing space, and office space.

Apr. 15 - Receives Second Heat Recovery Order from Leading Global Brewing Company: The order includes major equipment, engineering, and commissioning and is valued at over $500,000.

Apr. 19 - Announces Stand Out Order Intake and Growing Order Backlog in Third Quarter Results

June 7 - Closes out the Fiscal Year with Record Order Intake for both GEM(TM) and HeatSponge Product Categories:

June 22 - Announces Application to Trade on the OTCQB Market in the United States

June 29 - To Begin Trading on the OTCQB Market in the United States: Tuesday, June 29, 2021 under "TMGEF".

July 13 - Acquires Sofame Technologies: The acquisition includes all rights and title to Sofame’s unique proprietary thermal energy efficiency and sustainability product lines, as well as all other assets.

Sep. 9 - CEO Remains Optimistic About the Company's Future in Year-End Review

Sep. 14 - Global Nutrition Company Once Again Turns to Thermal Energy International: This will be the third turn-key energy efficiency and carbon emission reduction solution installed in the last two years.

Sep. 22 - Announces Annual Financial Results

Sep. 28 - Listed as One of Canada's Top Growing Companies for Third Consecutive Year

Oct. 26 - Announces First Quarter Financial Results

Oct. 28 - Retains Oak Hill Financial to Provide Investor Relations Services: Oak Hill will receive $18,000 for a trial term until December 17, 2021. The objective of the advisory services is to create and identify new investors of Thermal Energy International allowing the Company to build and maintain a larger and better-informed investor audience.


In the last eight months, TMG.V was valued as high as $0.28 cents and recently as low as $0.13 cents.


Overall, FY 2021, revenue was 29% lower than FY 2020. However, FY 2021 Net Loss was smaller.

Q1 2022 revenues were higher than Q1 2021 but much lower than Q1 2020. Backlog are slightly higher (5%) than Q1 2021.

The Company defines its order backlog as the value of projects for which purchase orders have been received, but that have not yet been fully reflected as revenue in the Company’s published quarterly financial statements.

While TMG.V reports having 11 project in paid development (38% higher than pre-pandemic levels) theses are not a substitute for a growing backlog which as of Q1 2022 is declining.

The Company ended the quarter with an order backlog of $6.3 million, compared to $6 million in the same quarter of previous year. Orders received during the quarter are 57.3% lower than orders received in the same quarter of last year.


A total of four major commissions were announced via releases in the last 8 months.

• $900,000 equipment order for a Heat Recovery from a multinational food products corporation (September 14, 2021).

• $500,000 equipment order for a Heat Recovery biogas application from a brewer in Russia (April 15, 2021).

• $1,180,000 heat recovery project with a major US dairy group (March 17, 2021).

• $1,000,000 heat recovery system for a multinational brewery (February 24, 2021).


Sofame Technologies was acquired in July 2021. To date, the results on TMG.V's bottom line are unknown.

The acquisition of Sofame will provide Thermal Energy with an expanded portfolio of complementary energy efficiency and carbon emission reduction solutions, as well as a significant project installation base – with hundreds of individual Sofame units installed across Canada, US and Europe.

In short

The declining valuation in the past eight months is attributed to the last two earning results. Covid-19's influence on revenues are understandable but the backlog has not grown in the last quarter and barely in the past year.

To date, TMG.V has not been able to fully take advantage of the increase in rhetoric around carbon emission reduction. The hiring of Oak Hill Financial is an indicator. Moreover, the specific sales pipeline for the company and the impact of its recent acquisition are unclear. Also no new products/services have been introduced.

The current market climate rewards fast growing companies. Despite the rhetoric, TMG.V is not exhibiting these attributes. Hence, given its self-reported outlook, TMG.V is currently underperforming.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


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