Kontrol Technologies (NEO: KNR) (OTCQB: KNRLF) a growing leader in the clean tech industry rose 7% this morning hitting a high of $2.90 as the company reported huge growth in its recent quarterly financials. Yesterday, KNR announced record revenues of $21.5 Million for Q3, representing an increase of 614% when compared to the same quarter the year prior. The company also achieved a record in net income of $2.1 Million and is KNR’s second consecutive quarter posting positive net income. Notably, KNR’s EPS (earnings per share) has also increased from $(0.01) to $.04.

The CEO of KNR Mr. Paul Ghezzi was quoted “Our ability to integrate Global into the Kontrol platform while maintaining financial discipline allowed us to not only achieve our highest-ever revenue quarter, but importantly, we also delivered the highest net income quarter in our history. We have clearly demonstrated the ability to add significant growth with profitability. We continue to drive strong organic growth supported by heightened demand from our expanding blue-chip customer base and compounded by Government policy, underscoring the importance of and necessity for enhanced intelligence to operate better, safer, and more sustainable buildings”. 

The jump in revenue comes as a result of the recent acquisition of Global HVAC & Automation Inc. in August 2021. As a result of the increase in quarterly revenue, KNR is also increasing its guidance on their full year revenue to $43 Million - $46 Million, an increase between 12% - 21% from their early projections of $38 Million. The company also increase its adjusted EBITDA to $6Million - $7 Million, up 62% from its previous estimate of $3.7 Million. The company’s revenue growth is increasing at an impressive rate both organically in a hot and burgeoning market, along with the company’s strategic M&A model as we’ve seen with the recent acquisition of Global HVAC & Automation. The Company has also stated last week that it has surpassed 400 customer buildings and is expected to double its presence in the market and surpass 800 customer buildings in 2022. This current estimate is based on KNR’s confirmed order book.

Although the company did not provide more information on its innovative technology, BioCloud, Kontrol is progressing strategically around the world. In addition to Kontrol’s earnings report, the company also announced that the BioCloud has achieved multiple detections for SARS-CoV-2 virus in real-time and has been confirmed by third-party laboratory testing. In addition to recent BioCloud developments, KNR announced in early November that it has shipped multiple units to a Hospital in Belgium in an effort to mitigate the surge in Covid-19 cases and create safe spaces within the hospital, as “ hospital admissions are shooting up 30% on a weekly basis”. This afternoon, KNR announced that the company has entered into distribution agreements with Airmaster Corporation and Daikin for its BioCloud viral detection technology. The distribution agreements with Airmaster and Daikin will cover both New Zealand and Australia respectively. CEO of KNR Mr. Paul Ghezzi was quoted “We look forward to delivering air quality and real-time space monitoring technology to the work environment through this partnership. The addition of a global leader in the HVAC and HVAR industry is another major advancement for the BioCloud technology”. Kontrol has received an initial purchase order for BioCloud from its distributor and the company will begin seeking other manufacturing possibilities outside of North America. We believe that the company is expecting an increase in demand for its BioCloud technology around the world and thus needs to scale its production capabilities! 

We remain extremely bullish on Kontrol Technologies (NEO: KNR) (OTCQB: KNRLF) due to their fantastic quarterly revenues, increased net income and updated guidance, coupled with the growing developments the company is making with BioCloud, we would not be surprised to see analysts increase their price target this year and a possible up listing to the NASDAQ later this year!

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