Kairospace Technologies Inc.
Newsletter, March 8, 2023
Dear Investors, Friends, and Supporters,
Welcome to the first edition of our bi-monthly newsletter! We are excited to share with you the latest updates on our progress as we continue to build and grow our business. Kairospace team has been working hard to drive innovation and bring value to our customers and we are honored to have you join us on this journey. Our newsletter highlights our recent accomplishments, including commercial traction, highlights, lowlights, 3rd party validation reports and our fundraising progress. We hope you find this edition informative and engaging and look forward to keeping you updated on our journey.
Our Focus on Water
Water is the most important natural resource on the planet. It is essential for life and used in a wide variety of industries, from agriculture to manufacturing. However, the world is facing a growing Water Stress crisis. Climate change, population growth, urbanization, over-extraction of water resources and pollution are the main contributors to a growing shortage of clean, accessible water. Water Stress poses a global risk to human health, food security, and economic stability.
Kairospace focuses on addressing current water-related issues. Using innovative technologies and advanced science, Kairospace uniquely develops clean-tech water solutions that address specific water challenges while generating positive environmental and economic impact across many industries.
Our introductory line of regenerative water treatment products, the “AG-PACKs”, provides the ultimate water enhancement platform for Ag growers. By combining physics, gases, and nanobubbles in complementary ways, AG-PACKs optimize water quality to increase agricultural outputs, improve crop quality and cut costs.
Progression Roadmap:
2020 – Assembled core founder group
2021 – Completed $300k angel investment round; converted from LLC to Wyoming C-Corp
2022 – Launched Minimum Viable Product commercial pilots
2023 – Introduced $600k pre-seed round; completed $125k
Goals for 2023:
- Achieve break-even by generating USD 1 million in sales by December 2023
- Construct and install 20 units to prove our tech in multiple commercial deployments.
- Obtain data from customers and pilots to build ROI models.
- Prepare for and launch a seed round.
- File three provisional patents.
Key metrics:
- In 2022, our revenue amounted to $70,000.
- In 2023, we have set a sales target of $1 million to achieve our break-even point.
- Entering 2023, we currently have two paying customers using our small-scale systems to perform use case validations. The expected value after conversion to a larger scale system is $250,000.
- We are running a beta-test pilot in golf turf treatment. Our key aim is to convert this customer into a full contract in 3 months. The contract expected value after conversion is $200,000.
- The total sales pipeline has grown from $0.3 million in January 2022 to over $1.3 million today. The probability-weighted pipeline today is $0.6 million.
Highlights:
- Imagine H2O’s Accelerator: We are excited to announce our participation in the Imagine H2O 2023 Accelerator Program. From hundreds of applicants, Kairospace was one of 11 chosen this year. Our inclusion in the top water startup accelerator is a testament to the hard work and dedication we have put into our company. The accelerator program provides us with valuable resources, mentorship, and a supportive network to help take Kairospace to new heights in the water technology industry.
- Product scaling up for greater impact: Our customers in the Ag industry (CEA growers and Biomass production) have requested quotes on larger systems for use in other facilities. The CEA application is for maintaining precision levels of super-saturated dissolved oxygen in larger scale ponds to promote water health and plant growth. The biomass applications are in treating water for large field crops with drip irrigation. We are expanding our supply chain and network resources to support the scaling of our technology. Our engineers are developing larger AG-PACK systems that can treat 160, 400, and 1,000 gallons per minute (GPM). Our primary goal is to have these systems designed and ready for production by April 2023, enabling us to reach a broader customer base in the Ag market.
- Provisional patent filing underway: Kairospace has filed a provisional patent for its unique “cavitation mixer” design. Cavitation has a wide range of potential applications, including cleaning, mixing, and milling. It can also be used for various industrial water treatment processes. The ability to generate cavitation effects through a compact, efficient, and easy-to-use device offers significant benefits over traditional methods.
- Southern Nevada market push: Kairospace is working closely with UNLV Economic Development Center and SBDC (Small Business Development Center), along with the Nevada Industry of Excellence, to perform market research and solicit local business networks in preparation for commercial activities.
3rd party validations:
- Since December 2022, the Kairospace AG-PACK system has been commissioned at one of southern California’s premier golf courses for the purpose of improving turf health, and to generate chemical and water use savings. Phase 1 of the project is focused on selected greens and fairways for the validation and scale up of our technology. Despite recent extreme weather conditions in California, preliminary results show excellent progress in golf turf treatment. Highlighted 3rd party results for treated areas include: 23% reduction in compacted salts, 22% improvement in water penetration, decrease in soil/salt compaction, and 300% increase in supersaturated Dissolved Oxygen. Click here for report.
- Starting in Q2; our long-awaited trial at the University of Kentucky’s Horticulture Research Farm will begin in evaluating the impact of Kairospace treated water on plant biology. The facility will conduct a series of greenhouse experiments including germination, potted seedling growth trials and post-harvest shelf-life tests.
- Research teams from Fresno State University have submitted a grant proposal to the California Department of Food and Agriculture (CDFA) for the application of micro-nano bubble aeration for enhancement of aerobic processes in winery wastewater treatment. Kairospace has been selected as a technology provider for the project. Fresno state expects a decision from the CFDA by June.
- In 2022, Kairospace and the Centre Technologique de Residues Industriels (CTRI) completed a research project on the use of a catalyst-assisted advanced oxidation process (AOP) that promoted the destruction of Nitrogen compounds. Successful 3rd party testing and collaboration with CTRI yielded necessary data for the ongoing validation and development of cleantech solutions for Canadian-based mining companies. CTRI is currently preparing Phase II, which will explore the economics and scalability of the AOP process and applications.
- Kairospace continues to further develop the AOP applications under an NDA with a private 3rd party company. The AOP tech will be implemented downstream in Ag operations to treat wastewater effluents.
- We continue to implement rigorous customer feedback processes for hardware evaluations.
Lowlights:
- Our current bottleneck is the extraction and conversion of meaningful ROI use case data from ongoing projects begun in Q2-Q4 of 2022. This is due to our pilot customers having seasonal operations, which will resume in spring 2023. Our larger-scale pilot customer is focused on using our technology to solve specific problems and has limited resources allocated to conducting general beta testing. Our goal is to readdress our pilot program format and agreements to better serve the intrinsic needs of our customers, while yielding key ROI metrics for our company.
- Pre-seed round is moving slower than expected. Institutional VCs continue to show interest but require more commercial traction. We are working on raising new funds from investors who are focused on early-stage impact startups.
- GTM strategy: Upon receiving feedback from potential investment partners that our GTM strategy was not focused enough, we narrowed our commercial efforts, and are currently targeting vertical farms, greenhouses, and golf courses. Polishing our GTM strategy is one of the goals we chose to focus on as part of the Imagine H20 accelerator program.
Asks:
- Fundraising our pre-seed: We are currently raising funds to complete our pre-seed round, which has a target of $600,000. We are pleased to report that we have already secured $125,000. Here is our most up to date fundraising deck. Please feel free to share with potential investors and let us know if you have any feedback.
- Early adopter opportunities: Kairospace continues to position for strategic pilot use case data for upcoming commercial pilots in the CEA and golf industries. We are actively seeking early adopters for commercial pilots. Email us at juan@kairospacetech.com.
- Freelance salesperson: Our company is seeking a contract salesperson to assist in developing business for our water treatment and enhancement technologies in Las Vegas. The ideal candidate should have a good network base, with an ardent desire to make an impact in the water industry.
Water connects a wide range of sectors facing climate issues. By addressing these industry concerns, our water solutions will play a key role in expanding equity and promoting sustainable development. Together we can ride the wave of water innovation and help our planet transition into a more regenerative, profitable, and sustainable home for many generations to come. Thank you for your continued support! For more information, please email us at info@kairospacetechnologies.com.
Sincerely,
Juan Ignacio Bravin, CEO
Kairospace Technologies Inc.
HQ: Las Vegas, USA
