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Kairospace Technologies – 2023 Year End Review

Mission and Vision: At Kairospace, our mission is to revolutionize water treatment through cutting-edge technology, fostering a future where water is not just a resource but a vital partner in sustainable development. Our vision is to lead the industry in innovative, eco-friendly water solutions, ensuring clean and efficient water use across various sectors.

Report Overview: This report highlights our journey over the past six months, showcasing our triumphs, learning from our challenges, and outlining our partnerships and sales achievements. As we share these insights, we reaffirm our commitment to excellence and innovation in water treatment technology.

Company Highlights Commercial Traction

(above) Biomass installation, Washington, (below) CEA installation, Montana

Existing Customers Kairospace has successfully retained its long-standing customers for periods of 18 and 12 months, respectively. Notably, one of these valued clients is a publicly traded company operating within the CEA (Controlled Environment Agriculture) industry, while the other is an up-and-coming startup dedicated to pioneering innovative biomass solutions. We are currently engaged in ongoing discussions with both customers to explore opportunities for further integration of our equipment into their production facilities, emphasizing the trust and collaboration that underpins our relationships.

System Installed at Cannabis Facility

Humboldt Gardens, Eureka, California
CIO, Jeremy Pfeiffer, system installation and QC

Kairospace initiated a non-paid pilot test at Humboldt Gardens in Eureka, CA. The goal is to generate data to target commercial cannabis growers. The AGPACK machine has operated flawlessly for a continuous span of three months, showcasing its reliability and performance. The tangible benefits are apparent, as evidenced by the positive outcomes observed during this period. Validation report to follow. The management at Humboldt Gardens are now looking to extend our technology’s application to their nursery and vegetation rooms.

Chaco, Argentina

Sale of Injector to UnitecBio Kairospace successfully completed a sale of a Nanobubble injector to UnitecBio, the agriculture division of Corporación América. The scheduled installation of the system is set for January 2024, where it will be incorporated into an irrigation pivot. We anticipate closely monitoring and measuring the enhancements in cotton yields and soil health resulting from this implementation. This project has potential for further expansion, with a requirement for 22 injectors to be fully retrofitted in the field. Furthermore, Kairospace has presented Corporación América with a comprehensive proposal aimed at evaluating the potential benefits of applying nanobubble technology in their oil fields, reflecting our commitment to exploring innovative solutions across diverse industries.

Company Highlights Key Achievements

Juan Bravin, CEO – Maria Tatarova, CLO – Jeremy Pfeiffer, CIO at the 2023 WEFTEC, innovation pavilion

First team meet up The three founders of Kairospace finally convened in person in Chicago in October, marking a significant milestone following more than three years of remote collaboration. The team’s chemistry and motivation are currently thriving, reflecting the strong bond and shared drive within the group.

Juan Bravin, CEO presenting at the Imagine H20, Croc Tank competition

Imagine H2O + WEFTEC Kairospace successfully concluded its participation in the ImagineH2O accelerator program. As the program drew to a close, we had the privilege of joining fellow cohort companies at the Innovation Pavilion during WEFTEC in Chicago. This unique opportunity allowed us to forge valuable new partnerships, showcase our innovations, participate in the highly competitive Croc Tank event, and engage in enriching discussions at various roundtable sessions.

Company Highlights Research and Development

KairoVortex Injector

New Patent Pending Line of Mixers and Cavitators Kairospace has successfully concluded the development phase of an innovative line of mixers and cavitators, a significant stride in our ongoing efforts to bring our cuttingedge technologies to market. These cost effective systems are poised to expand our reach across a diverse array of industries, making our solutions accessible to a broader spectrum of customers.

Kyle Chong, UNLV intern seated at Kairospace E-bench

New Resonance Induction Circuits In collaboration with Kyle Chong, an intern hailing from UNLV, we’ve successfully engineered a novel circuit design tailored to operate our electromagnetic resonance induction systems. This innovative circuit is designed to generate a broadband of useful frequencies, providing us the capability to amplify and drive magnetic coils as well our plasma-based solutions. This research continues to open up exciting possibilities for our water treatment technologies.

Phase 2 – Advanced Oxidation Process – CTRI After the successful completion of Phase I in our research endeavor, Kairospace and CTRI are thrilled to unveil our forthcoming collaboration for Phase 2. Together, we are embarking on a continued exploration of advanced oxidation processes, with the primary goal of efficiently addressing the nitrogen-based compounds commonly encountered in mine effluents. The commencement of this exciting project is slated for the first quarter of 2024.

Company Highlights Strategic Partnerships

Kairospace’s Distributor in Central Valley Kairospace is currently in the final stages of formalizing a partnership agreement with Perigo Co., situated in Strathmore, CA. Perigo specializes in providing tailored welding and fabrication services, with a particular focus on agricultural irrigation solutions. With over three decades of industry experience, Perigo boasts an extensive network of growers within the region. We are on the verge of concluding a paid pilot program with one of the companies introduced to us by Perigo, and we’re also in the process of preparing quotations for two additional potential clients. This promising development is an exciting opportunity for us to expand our market presence and foster commercial growth.

Sales Program in Development Kairospace is excited to announce the development of a specialized sales program, a collaborative effort with a renowned sales and marketing expert and a co-owner of a leading supplier of biological amendments. This initiative targets over 2000 agricultural companies in the USA, that currently are customers of the supplier. Our collaborative approach combines Kairospace’s technological expertise with extensive market knowledge and networks, setting the stage for a significant expansion in our outreach and impact in the agricultural sector. This program marks a strategic step towards broadening our market presence and delivering our innovative solutions to a wider audience in the agricultural industry.

Partnership to Penetrate the Cannabis Market Kairospace is enthusiastic about the opportunity to collaborate with a leading company in the cannabis industry, introducing our advanced water technologies to this burgeoning market. With the support of our partner, we have successfully secured a project with a notable cannabis grower in Humboldt, marking our first venture into this rapidly expanding sector. Active discussions are underway to develop a comprehensive sales strategy specifically designed for the cannabis market. This collaboration is set to unlock new potential for our technology, utilizing our partner’s extensive industry knowledge and network to enhance water use efficiency in cannabis cultivation.

Solar Powered Water Treatment Together with Watchdog Equipment, a leading manufacturer of solar-powered tactical systems, we are nearing the completion of an innovative project: the first unit of a groundbreaking off- grid water treatment system. This unit, designed to operate in synergy with Watchdog’s solar power system, is specifically tailored for environments like lakes and ponds, or any locations lacking grid access.

Midtown, Las Vegas – demo showcase scheduled for 2024

This collaboration not only exemplifies our commitment to sustainable solutions but also expands our ability to deliver efficient water treatment technologies to remote and challenging environments. This initiative marks a significant step towards enhancing ecological water management, particularly in areas traditionally constrained by the absence of conventional power sources.

KairoHub

Kairospace is actively forging connections through KairoHub with industry leaders like Epiphene, Sudoc, RHST Industries, DivaEnvitec, and Hexas. We aim to offer a holistic suite of solutions tailored to specific customer challenges in water use and disposal. We believe in the synergy of combined technologies, bringing together diverse but complementary systems under one umbrella. KairoHub epitomizes this approach, providing customers with a one-stop-shop experience. This collaborative platform enhances operational efficiency by integrating various innovative technologies, demonstrating our commitment to not just meeting but exceeding customer needs in water management and sustainability.

Market Challenges

Scaling in Ag Kairospace has encountered challenges in scaling hardware technologies within the agricultural sector, finding the process more time-consuming than anticipated. This is due to the unique complexities and varied needs in agriculture. Acknowledging these hurdles, we are diversifying our focus, planting seeds to develop in other markets and niches. This strategic pivot allows us to leverage our innovative technologies across a broader spectrum, ensuring continued growth and adaptability in our journey to revolutionize water treatment solutions.

Productization Strategy

(above) KST AGPACK (below) KairoVortex Injector

Productization of Core Technologies Starting next year, Kairospace is set to revolutionize its offering with a fresh productization strategy. We’ll introduce a line of advanced hydrodynamic cavitators, nanobubble mixers, and integrated systems, leveraging our core technologies. This strategy represents a significant shift towards a more diverse and robust product portfolio, designed to meet the growing needs of various industries. These innovations promise enhanced efficiency, scalability, and environmental sustainability, marking a new era in water treatment solutions. This expansion reflects our commitment to continuous innovation and our dedication to providing cutting edge solutions to our clients.

New Markets

Pool and spa install, validation and testing

Application for Swimming Pools We conducted rigorous testing of the AGPACK in a realworld swimming pool setting, yielding impressive outcomes in terms of water clarity, overall water quality, and dissolved oxygen levels. Excitingly, we have established a collaboration with a leading manufacturer of swimming pool equipment, and they have committed to providing us with their cutting-edge AOP system to improve its operation. This partnership will allow us to seamlessly integrate our Nanobubble system and conduct comprehensive efficiency assessments.

Application for Oil & Gas Kairospace is tapping into the oil industry with our advanced nanobubble technology, targeting a sector known for its financial robustness. Recognizing the industry’s capacity for investment, we’re offering our innovative solutions to enhance oil recovery and wastewater treatment processes. The unique properties of nanobubbles make them ideal for improving efficiency and environmental sustainability in oil operations. This strategic move not only diversifies our market presence but also aligns with our goal of delivering high-impact, profitable water treatment solutions to industries with the resources to invest in cutting-edge technology.

Application for BioGas Kairospace is innovating in the biogas sector by utilizing hydrodynamic cavitation to enhance biogas production processes. This technology significantly improves the efficiency of biogas generation, offering a more sustainable and costeffective solution. Currently, we are in discussions with a leading engineering firm in the water and biogas industries. This collaboration aims to integrate our advanced techniques into their established systems, potentially setting a new standard in biogas production efficiency. This partnership underscores our commitment to pioneering sustainable energy solutions through cutting-edge technology.

Application for Cooling Towers Kairospace is enhancing cooling tower efficiency through the use of nanobubble technology. Our lab-validated approach significantly boosts heat transfer capabilities, offering a groundbreaking solution in cooling system optimization. We have prepared a comprehensive proposal for a potential partnership, aiming to initiate a joint sales development program. This collaboration will not only validate our technology in real-world applications but also open doors to new market opportunities. Our goal is to set a new benchmark in cooling tower performance, showcasing the practical benefits and efficiency gains achievable with Kairospace’s innovative nanobubble technology.

Investment and Funding

Kairospace has successfully raised USD 175,000 in our pre-seed funding round of USD 1.2 million. We extend our heartfelt thanks to our committed investors for their support and confidence in our vision. As we approach the end of the year, we’re gearing up to close the pre-seed round and launch an ambitious Seed round, targeting USD 4 million by the end of 2024. The expansion of our activities and ongoing development projects necessitate this increased funding. Interested investors have the opportunity until February 29th, 2024 to invest at our current valuation of USD 8 million, after which the valuation will increase for the Seed round. This is an exciting time for Kairospace, as we accelerate our growth and scale our impact.

(above) Juan and Jeremy with Russ Gries, CTO (below) with Maria Tatarova, CLO

Investment in Kairospace: Team Commitment Throughout 2023, the Kairospace team has invested thousands of uncompensated work hours, demonstrating unwavering dedication despite economic challenges. This commitment reflects our collective belief in Kairospace’s mission and vision. Our team’s resilience and determination to innovate in the water treatment sector have been the cornerstone of our progress. This steadfast commitment, even in the face of financial adversity, showcases the team’s passion and drive to position Kairospace as a leader in the water industry. It is this spirit and dedication that will continue to propel us forward in achieving our goals and making a significant impact.

2024 Goals

Validate Product-Market Fit in Agriculture • Specific: Conduct targeted field tests and collect feedback from at least 12 agricultural clients. • Measurable: Achieve a minimum 75% positive response rate regarding product efficacy and applicability. • Achievable: Utilize existing networks and partnerships for client outreach and data collection. • Relevant: Validation is critical for tailoring our product to the specific needs of the agricultural sector and calculate ROI for our customers. • Time-Bound: Complete the validation process within the next 12 months.

Generate USD 1 Million in Sales for 2024 • Specific: Achieve USD 1 million in total sales revenue by expanding into new markets, securing larger contracts, and enhancing sales strategies in existing markets. • Measurable: Track sales revenue monthly, aiming for a consistent growth trajectory that cumulatively reaches the USD 1 million mark by the end of 2024. • Achievable: Implement targeted marketing campaigns, strengthen sales teams, and leverage strategic partnerships to increase sales opportunities. Utilize feedback and data from current clients to refine offerings and approach new prospects more effectively. • Relevant: Generating substantial sales revenue is crucial for Kairospace’s growth, market positioning, and investor confidence. It demonstrates the commercial viability and market demand for our water treatment technologies. • Time-Bound: Set quarterly milestones leading up to the final goal, with the target of achieving USD 1 million in sales by December 31, 2024. Regular assessments will be conducted to ensure the company is on track to meet this goal.

Build Robust Business Cases • Specific: Develop at least three comprehensive business cases showcasing the ROI and benefits of our technology. • Measurable: Each case should demonstrate potential cost savings or efficiency improvements of at least 20%. • Achievable: Use data from pilot projects and market research. • Relevant: Essential for attracting new clients and investors. • Time-Bound: Finalize 3 cases within the next 6 months.

Secure Pilot Projects in Diverse Niches • Specific: Launch pilot projects in at least two new industry niches. • Measurable: Establish criteria for success, including efficiency improvement and user satisfaction. • Achievable: Leverage current technology and adapt it to new applications. • Relevant: Demonstrates versatility of technology and opens new market opportunities. • Time-Bound: Implement pilots over the next 6 months.

Fundraising for Team Expansion, Product Launch, Marketing and RnD • Specific: Raise funds specifically for hiring 3 team members in R&D and sales, upgrading the webpage for the online shop, building a stock of systems, and launching a commercial campaign. • Measurable: Target fundraising amount set at USD 1,025,000. • Achievable: Reach out to existing and new investors with a compelling pitch and proven track record. • Relevant: Necessary for supporting growth and scaling operations. • Time-Bound: Complete fundraising before March 31st, 2024.

Consolidate Strategic Partnership Initiatives • Specific: Strengthen relationships with at least three existing partners and onboard two new partners. • Measurable: Evaluate partnerships based on mutual goals achievement and new sales generated. • Achievable: Utilize existing networks and proven collaboration models. • Relevant: Partnerships are crucial for market penetration and resource optimization. • Time-Bound: Achieve consolidation within the next 6 months.

Long-term Vision

Kairospace is steadfast in its long-term vision to become a global leader in water technology, dedicated to enhancing the efficiency and sustainability of processes that utilize water. We aspire to not just innovate but to inspire a movement towards more responsible and efficient use of this vital resource.

Alignment with Current Activities: Development of Novel Technologies: Our ongoing research and development efforts are focused on creating groundbreaking technologies. These innovations are at the heart of our vision, pushing the boundaries of what’s possible in water treatment and management. Market Diversification and Licensing: By diversifying our markets and entering into strategic licensing agreements, we are expanding our reach and impact. This approach not only broadens our operational scope but also reinforces our commitment to making our technologies accessible across various industries.Building a Movement: We are not just developing solutions; we are cultivating a community. We aim to build a movement around the improvement of water-related processes, emphasizing the need for efficiency and minimal environmental impact. This involves engaging with stakeholders across sectors, raising awareness, and advocating for change.

Future Outlook: As Kairospace progresses, we envision a world where our technologies play a pivotal role in every industry where water is a critical component. From agriculture to manufacturing, our solutions will drive efficiency, reduce environmental impact, and contribute to a more sustainable and water-wise world. Our journey ahead is filled with potential and promise, as we continue to innovate, collaborate, and lead the way in transforming the global landscape of water use and conservation

Kairospace RND, plasmoid induction experiments

Upcoming Project and Technologies

Kairospace Technologies is pioneering a groundbreaking plasma-activated water reactor for producing nitrogen-based fertilizer. This innovative project integrates advanced technologies like pulsed electromagnetic fields and ultrafine bubbles to create a molecular dissociation reactor. This reactor efficiently converts atmospheric nitrogen into water-soluble fertilizer, using minimal energy. This technology is poised to revolutionize the agricultural sector by offering a sustainable, cost-effective alternative to traditional nitrogen fertilizers. It promises significant environmental benefits, reducing reliance on fossil fuels and decreasing greenhouse gas emissions. For Kairospace, this project represents a major leap forward in their mission to address critical environmental and agricultural challenges, potentially reshaping the global fertilizer industry and establishing the company as a leader in eco-friendly agricultural innovations.

Closing Remarks

Acknowledgements As Kairospace continues to navigate the dynamic landscape of water technology, we extend our deepest gratitude to those who make our journey possible. To our investors, thank you for your unwavering faith and the financial support that fuels our innovations. To our dedicated employees, your tireless efforts and commitment are the backbone of our success. Our partners, whose collaboration enriches our capabilities, are invaluable in our quest to revolutionize water treatment. Lastly, to our esteemed customers, your trust in our solutions inspires us to continually push the boundaries of what’s possible. Together, we are not just a team but a community united in the mission of advancing sustainable water technologies. Your support is the cornerstone of our growth and achievements, and we look forward to continuing this journey with you. Thank you for being an integral part of the Kairospace story.

Join us on our mission to redefine the future of water treatment. At Kairospace, we are always eager to connect with like-minded individuals, organizations, and innovators. Whether you seek further information about our technologies, wish to explore collaboration opportunities, or are interested in supporting our vision, we welcome your engagement. Your insights, expertise, and participation could play a pivotal role in shaping a more sustainable and efficient approach to water management. Let’s collaborate to create impactful solutions and drive positive change in the world of water technology.

Reach out to us at juan@kairospacetech.com – let’s make waves together. Your partnership is key to our collective success and the betterment of our global water resources.