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Independent Reviews for Venture Investors

WATR.V - At scale.

Current Water Technologies Inc. (WATR.V) applies patented and proprietary “Electrochemical Technologies” to the treatment of waste water, desalination water and drinking water contaminated by metals or nutrients. WATR.V also operates Pumptronics Incorporated, a pump station manufacturer specializing in custom design and automation.


Coverage: February 2017, June 2018, December 2018, July 2019, April 2020, December 2020 and August 2021.


News Releases


Sep. 21 - Enters New Market - Signs MOU With Leading Consortium of Aquaculture Companies: Memorandum of Understanding (MOU) with a consortium of aquaculture companies operating under Ship Nature’s Way Inc. (SNW).


A major shareholder in SNW is Ocean Perfect BV which is a logistics company that owns and operates patented containerized solutions to provide transport and temporary storage of live seafood. GIS Gas Infusion Systems Inc. a New Brunswick registered company, is another shareholder in SNW.


SNW develops and deploys solutions for total gas management in fresh and salt water. CWTI has been engaged to develop and manufacture an ammonia treatment system for the transport and temporary storage of live seafood.


Sep. 29 - Enters New Market:Filed for Provisional Patent Application for its AMMEL-H2 Green Hydrogen Technology:

in the development of novel hydrogen and lithium recovery technologies. The filing of this application with the U.S. Patent and Trademark Office (USPTO) establishes an early effective filing date and allows CWTI to ascribe the phrase “patent pending” to any commercial products, methods, or services contemplated by the subject matter claimed.


Oct. 6 - Awarded First Contract to Provide Novel Ammonia Treatment System by Ship Nature’s Way: Initial $73,000 contract from Ship Nature’s Way (SNW) to design ammonia treatment unit for safe transport of fresh water animals.


Oct. 26 - Pumptronics: $0.4M Sales in Emerging Commercial Rainwater/Stormwater Management Sector in Sept./Oct: Notably, the Company’s recent sales include sustained/multiple sales within the City of Toronto.


Dec. 9 - Ships Novel Aquaculture Ammonia Treatment System Unit to Nature’s Way for Trials Scheduled in 2022: Completes successful inhouse test program of its novel ammonia treatment system (“AmmEl-Aqua”) for the safe transport of marine and fresh water animals (refer to Press Releases dated Sept 21, 2021 and October 06, 2021).


Jan. 13 - Grants Stock Options: 1M to two consultants, 4M to ten employees and 2.82M to four directors for a total 7.82M options at $0.05 cents. The Company currently has an outstanding capital of 212,275,038 common shares.


Feb. 1 - Expands Its Technology Suite: Receives contract of approximately CAD $0.25M from Highland Engineering of Michigan for development of its patent pending novel AmmEL–H2 technology. Highland is a preferred small business supplier of ground support equipment to all US Department of Defense agencies, as well as the Federal Emergency Management Agency, the Bureau of Reclamation, and many industrial companies. It has extensive expertise in integrating new technologies, including water treatment options, into pilot scale, industrial and military systems.


Simultaneously, CWTI is exploring numerous applications and opportunities for its ammonia treatment/hydrogen recovery technology, including advanced biogas, fertilizer production, steel production, aviation, and maritime sector.


Feb. 22 - Signs Definitive Licensing Agreement With Partners Ship Nature’s Way and GIS Ventures Inc.: Definitive Marketing and Sales Agreement for Aquaculture and Aquatic Animals. The initial term of this exclusivity contract is 10 years; the contract will be automatically renewed. Year 1 minimum sales milestone is approximately CAD $1.35 million.


In each subsequent year of the agreement, SNW/GISV shall do a minimum combined sales of approximately CAD $3.72 million. Based on the level of interest from the Live Haul/Temporary Storage and Aquaculture Business Sectors, SNW/GISV anticipate near-term robust sales of CWTI’s novel ammonia treatment system.


Mar. 1 - Positive First Quarter Update Sales Exceed $1.3 Million in January/February: Pumptronics received purchase orders for two custom designed and built automated pumping stations; i) A storm water pump station ($648,000) to be installed in Calgary, Alberta. ii) A transfer pump station ($278,150), to be installed in the City of Chestermere, Alberta. The current fabrication pipeline also includes an additional $76,000 in sales for a smaller station.


Mar. 31 -Receives $170,000 in Sales: For a custom designed and built automated pumping station to be installed in Western Canada. We are pleased to report that total sales for the first quarter is approximately $1.5 million.


We anticipate robust sales of our water treatment systems and custom pumping systems throughout 2022. Based on current business activities, management forecasts record sales in 2022". - Dr. Gene Shelp, Current Water’s CEO


Apr. 26 - Receives $515,000 in Sales: for a custom designed and built, state-of-the-art automated pumping station to be installed in Western Canada. Based on client requested completion dates, all the Company’s year to date sales of approximately $2 million are anticipated to be completed and shipped by the middle of the third quarter.


Based on exciting developments in the aquaculture and Green hydrogen sectors, the Company expects significant sales growth both domestically and internationally with record sales forecast for 2022.” - Dr. Gene Shelp, Current Water’s CEO



Summary


Ship Nature’s Way Inc. (SNW)

Late September 2021, an MOU with Ship Nature’s Way Inc. (SNW) was signed for which WATR.V is to develop and manufacture an ammonia treatment system for the transport and temporary storage of live seafood. SNW includes Ocean Perfect BV and GIS Gas Infusion Systems Inc. as major shareholder.


In early October 2021, WATR.V was awarded a $0.073M contract with SNW.


This initial contract is an operating trial demonstration, and successful completion will lead to additional commercial

contracts. Following a successful trial, 35 and 70 AmmEl-CRx units will be purchased in Y2022 and Y2023, respectively, to outfit the existing container fleet. Expansion of the container fleet is expected to occur in Y2024 to Y2026.


Early December 2021, in-house test were completed and units were shipped. Late February 2022, a definitive licensing agreement was signed with SNW and GIS Venture (10 years) targeting $1.35M in year one and $3.72M thereafter.


SNW’s Live Haul testing program is scheduled to continue until May, 2022. CWTI anticipates sales of this AmmEL-Aqua model following completion of testing with SNW outfitting a minimum of 30 of its existing container fleet during Year 1.


Pumptronics

Late October CWTI reported $0.4M in commercial rainwater/wastewater sales from September and October 2021.


A total of 48 quotations has been issued for stormwater pumping systems in this emerging market, totalling approximately $1,600,000. In September/October alone, Pumptronics has received purchase orders for 5 Rainwater Harvesting Pumping Systems and expects to secure numerous additional sales before year-end.


WATR.V also reported more sales in Late March 2022, ($0.17M) and April 2022 ($0.55M).


Patents

Also in Late September 2021, CWTI filed a Provisional Patent Application for AMMEL-H2 Green Hydrogen Technology.


Our patent pending AmmEl-H2 technology generates hydrogen gas while simultaneously removing toxic ammonia from wastewater. This process differs from traditional electrolyzers that are operated for the sole purpose of producing hydrogen gas. Therefore, the AmmEl-H2 has the benefit of generating dual purpose revenue streams.


Highland Engineering

February 2022, A $0.25M contract was awarded for development of AmmEL–H2 technology. Highland Engineering Inc. is a preferred small business supplier of ground support equipment to all US Department of Defense agencies, as well as the Federal Emergency Management Agency, the Bureau of Reclamation, and many industrial companies.


The Company’s goal is to convert costly municipal wastewater treatment facilities into profit centers by converting ammonia waste into environmentally friendly nitrogen gas and pure, fuel cell–grade hydrogen gas.


Chemsbro ESD Unit

As Per MD&A: The Chemsbro 900K ESD unit remains to be completed due to unexpected cost overruns. The cost of the unit was US$1,212,400 plus an estimated cost of installation and commissioning of US$36,250, with an additional US$208,244 in client requested modifications, bringing the total estimated cost of the unit to US$1,465,894. To date, Chemsbro has paid $1,392,544 towards the total estimated cost of the 900K ESD system. The Company is currently pursuing financing activities to raise additional funds to complete the unit at the earliest possible opportunity.


Options

January 2022, 7.82M options were granted at $0.05 cents


Earnings

FY2021 revenues were the weakest of the past four years.

This decrease was due to the timing in the number of projects for both Current Water and Pumptronics and also due to the outbreak of COVID-19 which had a significant impact on sales through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders


In contrast, FY 2022 seems to be different. WATR.V estimated Q1 2022 revenue at $1.5M. This alone would eclipse total revenue of FY 2021. Recently, WATR.V reported YTD $2M in sales which will all shipped by end of Q3 2022.


Financing

No financing were conducted in the last period.


Warrants

WATR.V has 57M outstanding warrants; 22M at $0.05 cents and 35M at $0.07 cents.

In short

Financial performance of the last two years leaves much to be desired. Of course, COVID-19 was a factor.


However, WATR.V seems to be reversing this trend in FY 2022. With Q1 2022 revenue estimated at $1.5M, and YTD revenues at $2M, the company is on pace to exceed revenues from FY2018 ($2.43M).


Ship Nature’s Way Inc. (SNW) and Highland Engineering engagements are promising. With SNW, Live Haul Test were scheduled until May 2022. Upon successful testing a minimum of 30 container fleet were expected to be outfitted.


The Highland Engineering project for the AmmEL–H2 technology could also be transformational for the company.


Our patent pending AmmEl-H2 technology generates hydrogen gas while simultaneously removing toxic ammonia from wastewater. This process differs from traditional electrolyzers that are operated for the sole purpose of producing hydrogen gas. Therefore, the AmmEl-H2 has the benefit of generating dual purpose revenue streams.


The Company’s goal is to convert costly municipal wastewater treatment facilities into profit centers by converting ammonia waste into environmentally friendly nitrogen gas and pure, fuel cell–grade hydrogen gas.


In this context, the continued citing of the 900K Chemsbro ESD Unit in the MD&A is puzzling. It represent an opportunity for WATR.V to demonstrate its capabilities on an industrial level which is yet to be capitalized on.


Hence, eclipsing FY2018 revenues is good but WATR.V still does not have the market's attention. It's simple. To date. most of the revenues are from Pumptronics and WATR.V still need to commercialize its AmmEL technology at scale.

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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