After several years of development and testing indoor heating and air flow systems, green-tech firm ATI AirTest Technologies Inc. (AAT:TSX.V; AATGF:OTC) is now focused on meeting the growing needs across a wide spectrum of businesses to decrease energy costs, reduce CO2 emissions and improve indoor air quality.
This morning, March 22, 2023, the company announced it will partner with Star Energy Solutions Inc.
Star Energy is an energy consultancy company focused on helping companies in our core service sectors of retail, supermarkets, restaurants, hotels, food processing, cold storage, and community care facilities for the elderly.
AirTest believes its proprietary wireless Demand Control Ventilation solutions and Star's holistic approach to providing its customers' energy and carbon footprint reduction will create a formidable offering to Star's current client base.
Kuldeep Saxena, Star’s Founder, and CEO commented on the news saying, "AirTest's solutions present a logical next step for many of our customers. We’ve had good success with large retail and grocery chains implementing a variety of efficiency strategies, and AirTest represents a further opportunity with our existing client . . . It’s an exciting time in our industry due to the current focus on carbon footprint reduction. Higher energy prices are also creating additional motivation to reduce consumption."
In other news, ATI AirTest also reported record sales of more than CA$340,000 in December 2022 and is well-positioned to help its clients address environmental impact issues and improve indoor air quality by retrofitting buildings with a network of smart-sensor devices that monitor and control heating, cooling, and ventilation in real-time.
Importantly, by optimizing ventilation, a building can be programmed to increase or decrease cooling or heating based on customer foot traffic patterns and outside weather conditions.
The company provides wireless retrofitting solutions for buildings which eliminate the need for costly labor-intensive re-cabling. The firm states on its website that "its product portfolio includes over 300 sensor products that can be configured to work with any monitoring or building control system."
Applications for the company's products include building ventilation, humidity, and moisture control, parking ventilation and gas sensors, air velocity measurement, refrigerant gas leak detection, and inside air quality testing.
Chris Temple at The National Investor wrote recently that "the company's share price has been rebounding a bit" and that, "business is going to be even more so roaring higher."
The company's energy-efficient and measurement devices are designed to control heating, ventilation, and air conditioning (HVAC) systems. ATI AirTest Technologies' precision products connect wirelessly to a central control unit that optimizes and regulation air flow from outside to efficiently control cooling levels and airflow.
The key is not just to operate centralized HVAC systems with timers that kick in in the morning and shut off at night but to provide a system with constant 24-7 air quality monitoring solutions that can detect customer traffic and indoor CO2 levels and adjust the ventilation and air conditioning to the proper levels.
Approximately 90% of the market for the company's technology, products, and services is in retrofitting existing spaces, with the remaining 10% in new construction.
Rising Demand for Carbon Emissions Reduction
In recent years, there have been significant increases worldwide in the number of environmental, social, and governance (ESG) mandates from government bodies requiring companies to reduce their carbon emissions.
The market for ATI AirTest's innovative product suite offers tremendous market potential as companies of all sizes are facing higher energy prices and are forced to look for new alternatives to decrease operating expenses, reduce carbon emissions, and improve indoor air quality.
Ron Struthers of the Struthers Stock Report commented in a recent article, "It seems the stars just recently aligned for ATI AirTest Technologies Inc."
The company announced at the beginning of January 2023 that it had hired Lorne Stewart as President to run the company's operations. Stewart, a sales-oriented executive with lengthy HVAC industry experience, is focused strongly on increasing the order book and sales which are already trending upward.
ATI AirTest's CEO Ted Konyi remarked, "With Lorne's first day under his belt, I am already seeing some exciting new initiatives in the sales and marketing of the company's Energy Efficiency solutions. It is clear that the company has some tremendous opportunities in this perfect storm of high and ever-increasing energy costs and strengthening ESG mandates. This should be a fantastic time for growing the company's revenues and profitability."
Successful Implementation Projects
The company has already successfully demonstrated effective cost-saving energy management programs at both Lowes Inc. and IKEA stores. Lowes stores typically cover about 116,000 sq. ft (square feet), and IKEA stores encompass about 300,000 sq. ft. Depending upon the design and layout of a building and its internal walls configuration, the firm's sensors will cover an area of between 2,000 to 5,000 sq. ft.
Thus, on average, a 100,000 sq. ft. building may be fitted with 20 or more sensors that communicate directly to an ATI AirTest-supplied control unit that connects to ventilation controls of A/C units which are typically located on the roof. Large buildings may have as many as 20 or more separate a/c units depending upon the size of the building.
In addition to its work with IKEA and Lowes, the firm has served as a supplier to over 1,300 customers in Canada, the U.S., and internationally including Canadian Tire, FedEx, Shoppers Drug Mart, the U.S. Postal Service, and many others.
ATI AirTest has completed several pilot installations, and numerous additional installations are expected to be rolled out this year with customers that could represent orders in the tens of millions of dollars this year and beyond. In addition, the company has hired an experienced HVAC industry executive as President, who is advancing and expanding sales, distribution, partnership, and installation efforts which is showing quick success in driving new sales revenue.
Independent investor Richard Cavalli commented, "AirTest seems to have a big leg up in what is rapidly evolving into a large, high-growth market for energy-saving devices that also reduce the carbon footprint."
As the firm provides products and solutions at the center of green energy initiatives, it is likely to be a beneficiary of new government-sponsored infrastructure bills. Such legislation comes with incentives and subsidies tied to energy efficiencies and reduction capabilities. These government-sponsored initiatives would aid greatly in reducing the time required, perhaps by as much as 33-50%, to recapture or break even from added installation costs.
Depending upon the size of a company's facility, numerous sensors are required, which may cost anywhere from CA$1,500 to CA$2,000 each. A key factor to consider is that government-sponsored discounts, rebates, and tax credits are already offering about CA$500 of these amounts and in certain areas up to 50% of the cost, which helps offset the cost and reduce the payback (breakeven) period to 18-24 months.
ATI AirTest is working on ways to reduce manufacturing, distribution, and installation costs by as much as CA$500, such that, together with government-supported incentives, it could move the breakeven point to as little as 12 months.
ATI AirTest has a few direct competitors that, include Legend Power Systems Inc. (LPS:TSX;LPSIF:OTC), Sharc International Systems Inc. (SHRC:CSE), and Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB).
Though Legend and Sharc both have larger market caps than ATI AirTest, they each have much lower sales and are less profitable than ATI AirTest, and the physical nature of those firms' products may put them at a disadvantage when trying to penetrate the market.
Eguana is a much larger player with sales that are about three times that of ATI AirTest, but it is unprofitable due to high operating expenses, and like Legend and Sharc, its products for building retrofit applications are thought to be difficult to sell and install.
ATI AirTest is a relatively small microcap company with a market cap of around CA$4.28 million (U.S $2.62 million) and, due to its size, is not covered by any large research firms.
The firm has received coverage in a few newsletters, including Chris Temple at The National Investor, who is also an early investor in the company. Temple wrote recently that "the company's share price has been rebounding a bit" and that "business is going to be even more so roaring higher."
Temple noted, "In addition to getting the long-awaited official "blessing" for subsidized installation of its IAQEye™️ Demand Control Ventilation (DCV) solution in shopping malls in (to start) Ontario, Canada, the company is also seeking the same "Good Housekeeping Seal of Approval" in California."
"This is another huge potential market for AirTest and--especially with the potential added subsidy here as well--makes the company's energy-saving offerings a no-brainer," Temple added.
Ron Struthers of the Struthers Stock Report commented in a recent article, "It seems the stars just recently aligned for ATI AirTest Technologies Inc." Struthers listed that the company is well-positioned to benefit from rising electricity demand, rising electricity prices, ESG actions such as reductions in carbon emissions, eligibility for up to 50% subsidies and new leadership with a strong sales background. "And for investors, a low entry-level stock price," Strothers commented.
In a contributed opinion article for Streetwise Reports, independent investor Richard Cavalli commented, "AirTest seems to have a big leg up in what is rapidly evolving into a large, high-growth market for energy-saving devices that also reduce the carbon footprint. Investment timing is always a significant factor in calculating potential returns, and AirTest appears to offer a short path to growth because sales have just begun to demonstrate the need for its products."
Cavalli continued, "The global smart energy market size was valued at US$143.15 billion in 2021, and AirTest's share price and market cap presently are CA$0.02 and CA$4.5 million, respectively, which in my opinion, makes AirTest an attractive buying opportunity for the short term and for the long term."
Ownership and Share Structure
Streetwise Ownership Overview*
ATI AirTest Technologies Inc. (AAT:TSX.V; AATGF:OTC)
ATI AirTest Technologies Inc. has a market cap of approximately CA$5.5 million. The company has 222,672,582 outstanding publicly traded shares.
Fully diluted, the firm has 222 million authorized shares with warrants for 120 million shares and options for 14 million.
Approximately 50% of ATI AirTest Technologies Inc.'s shares are owned by management and those close to management.
At present, there is no significant institutional or strategic shareholder ownership.
ATI AirTest Technologies' shares trade on the TSX Venture Exchange under the symbol "AAT" and last closed for trading at CA$0.03/share on Friday, March 10, 2023. The company's shares also trade in the U.S. OTC market under the symbol "AATGF" and under the symbol "71A" on the Frankfort Stock Exchange in Germany.
Currently, according to Market Watch, it trades in a 52-week range of CA$0.01 to CA$0.07 per share.
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1) Stephen Hytha wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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