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Independent Reviews for Venture Investors

WATR.V - Indefinitely.

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 our initial note was issued on February 2017, with subsequent notes on June 2018, December 2018, July 2019, April 2020, December 2020, August 2021 and May 2022.


News Releases


June 2 - Aquaculture Partner Orders Third AmmEl-Aqua Unit: Receives purchase order for a third AmmEl-Aqua system for the safe transport of marine and fresh water animals (i.e lobster, snow crab, king crab, salmon, trout) to international markets. The inaugural trip for this specific AmmEl-Aqua unit will be as an important component of the sophisticated water treatment system required for the safe transport of king crab from Norway to Miami, Florida, USA.


This innovative water treatment system is being marketed under the trade name, Blue Vita Technologies Inc., which recently received $1.7 million in funding from Canada’s Ocean Supercluster to introduce new technologies for the mobile storage and transport of aquatic animals.


Aug. 10 - Completes Fabrication and Testing of Patent-Pending AmmEL-H2 Green Hydrogen Pilot System: Ships an AmmEL-H2 Green Hydrogen pilot system to Highland Engineering of Michigan. Highland Engineering Inc. will install the unit into a mobile sea container to facilitate the demonstration of this exciting technology to its clients.


This opportunity to showcase CWTI’s novel technology represents a major step toward achieving success within the global hydrogen market sector. CWTI anticipates future commercial contacts resulting from the successful demonstration of this technology by Highland Engineering.


Sep. 19 - Files Provisional Patent Application for Its AmmEl-AQUA Technology: CWTI also plans to submit individual national stage patent applications in select international jurisdictions. Dr. Gene Shelp, CEO said, “During the past 9 months, the CWTI team has designed, constructed and delivered 3 AmmEl-AQUA transport units for validation testing by our partner Ship Nature’s Way/ Blue Vita Technologies Inc. Based on the extremely positive results to date, the partners have recently expanded their marketing efforts to include recirculating aquaculture systems, fish storage facilities, mobile temporary storage, live haul fish transport, fishing vessel holding tanks, hatcheries, well boats, aquariums, shrimp pond culture, commercial fish retail outlets, and seafood distribution centers


Sep. 22 - Files Patent Cooperation Treaty (PCT) Application to Secure Patent Protection Internationally for its Novel AmmEl-H2 Hydrogen Recovery Technology: filing of a PCT patent application seeking protection internationally for its leading edge AmmEl-H2 technology to recover hydrogen from municipal and industrial waste waters containing ammonia. The filing of this single international patent application can facilitate patent protection for this exciting technology in a total of 156 PCT member states (as of April 1, 2022).



Summary

Current Water Technologies Inc. (CWTI, WATR.V)


Patents

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.


September 2022, CTWI filed of a provisional patent application for its AmmEl-AQUA system in the aquaculture sector.


“This ground breaking technology will revolutionize both production and distribution within the aquaculture industry, resulting in less loss of aquatic life, humane and responsible husbandry, and greater sustainability. The forecast for this technology is in the tens of millions, allowing CWTI to explore additional funding sources to support near to medium term growth projections.” - WATR.V CEO.


Highland Engineering

February 2022, A $0.25M contract was awarded for development of AmmEL–H2 technology.


August 2022, CWTI shipped an AmmEL-H2 Green Hydrogen pilot system to Highland Engineering of Michigan (HEM). HEM was to install the AmmEL-H2 unit into a mobile sea container to facilitate the demonstration to its clients.


Ship Nature’s Way Inc. (SNW)

June 2022, CWTI received a third order for an AmmEl-Aqua system for the safe transport of marine and fresh water animals (i.e lobster, snow crab, king crab, salmon, trout) from SNW. At the time CWTI' s CEO stated the following:


“To date, the results of ongoing test programs conducted by our partners Ship Nature’s Way/GIS Ventures have been very positive. This third AmmEl-Aqua unit is the first of many commercial units expected to be sold in 2022.”


Back in October 2021, WATR.V was awarded an initial $0.073M contract with SNW. Back then the release stated:


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.


As a reminder, 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. Based on three units ordered so thus far (with the last one reported in June 2022), it is unlikely that the original 35 units target will be achieved in FY 2022.


Chemsbro ESD Unit

As per MD&A for Q2 2022: 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 working in conjunction with Chemsbro to complete this unit before the end of the third quarter 2022.


Earnings

While FY2021 revenues were the lowest of the past four years, its likely that FY 2022 will exceed FY2021 and FY2020,

YTD 2022, Net Losses are below FY2021 while the cash position is at $0.45M in Q2 2022.


Financing

No financing were conducted in the last period.


Warrants

As of June 30, 2022, WATR.V reported 23M outstanding warrants which 18.9M (82%) were below $0.06 cents.


In short

In FY2022, Current Water Technologies (CWTI, WATR.V) is likely to outperform revenues of FY2021 and FY2020.


Both Highland Engineering and Ship Nature’s Way Inc. (SNW) initiatives are positive developments. However, Highland Engineering seems to be still at the pilot stage and Ship Nature’s Way Inc (SNW) orders appears slower than expected.


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.


Hence, with only three units reported for SNW (the last reported in June 2022), it is likely that the original 35 units target will be achieved in FY 2022. Looking back at the news release also suggests that this initiative is still in testing.


“To date, the results of ongoing test programs conducted by our partners Ship Nature’s Way/GIS Ventures have been very positive. This third AmmEl-Aqua unit is the first of many commercial units expected to be sold in 2022.”


Even acknowledging possible delays, the definitive licensing agreement (February 2022) signed with SNW and GIS Venture (10 years) was targeting $1.35M in year one and $3.72M thereafter. This would definitely be an important revenue stream if it occurs but would the company be able to fund and execute manufacturing at a larger scale?


In addition, the continued MD&A citing of the 900K Chemsbro ESD Unit with no market update is unfortunate.


As per Q2 2022 MD&A

The Company is working in conjunction with Chemsbro to complete this unit before the end of the third quarter 2022.


Even with positive developments, CWTI is very much still in a piloting (Highland Equipment) and testing stage (SNW) for its new initiatives. Sadly, continued delays on 900K Chemsbro ESD Unit represents a consistent pattern.


As such, coverage of Current Water Technologies will be suspended indefinitely.


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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