10-K/A - Trutankless, Inc. (0001429393) (Filer)

Tue, May 20, 5:58 PM (34 days ago)

**Trutankless, Inc. (TKLS) 10-K/A Amendment Summary** **Company Overview:** Trutankless, Inc. (TKLS) is involved in the research, development, sales, and marketing of high-quality, whole-house, smart electric tankless water heaters. The company aims to capitalize on the shift towards more sustainable and energy-efficient systems and appliances. **Financial Performance:** - **Revenue:** $3,549 (2023) vs. $73,008 (2022) - **Net Loss:** $2,150,474 (2023) vs. $4,757,516 (2022) - **Operating Expenses:** $1,345,917 (2023) vs. $3,766,160 (2022) - **Cash on Hand:** $21,452 (2023) vs. $85,804 (2022) - **Accumulated Deficit:** $66,915,867 (2023) vs. $64,765,393 (2022) **Strategic Overview:** - **Market Focus:** Initially targeting the U.S. residential market, focusing on regions with higher ground water temperatures and significant population growth. - **Product Innovation:** Developing second-generation water heaters with advanced features like Wi-Fi, Bluetooth, and Zigbee capability. - **Distribution:** Utilizing wholesale plumbing distributors and leveraging online marketing strategies. **Future Outlook:** - **Growth Strategy:** Plans to expand sales and technical staff, increase brand awareness, and explore strategic partnerships or acquisitions. - **Funding:** Reliant on equity offerings, debt financings, and strategic alliances to fund operations and capital expenditures. **Risk Factors:** - **Financial Stability:** Substantial doubt about the ability to continue as a going concern due to insufficient revenue and cash flow. - **Market Competition:** Faces competition from larger, well-funded companies with greater resources. - **Operational Risks:** Dependence on key personnel and the need for additional financing to sustain operations. **Financial Condition:** - **Liquidity:** Significant working capital deficit and reliance on external financing. - **Debt:** High levels of notes payable and convertible notes, with substantial interest expenses. **Market Position Changes:** - **Market Share:** Aims to gain market share in the electric tankless water heater segment. - **Product Differentiation:** Emphasizes energy efficiency, durability, and integration with home automation systems. **Amendment Details:** - **Auditor Change:** New auditor appointed due to the revocation of the previous auditor's registration. - **Restatement:** Financial statements restated due to errors identified during the audit, affecting various line items and share amounts. **Conclusion:** Trutankless, Inc. faces significant financial challenges but is strategically positioned to capitalize on the growing demand for energy-efficient and sustainable water heating solutions. The company's future success will depend on its ability to generate sufficient revenue, secure additional financing, and effectively execute its growth strategies.