Ecolution Power

Turning trucks and trains into mobile power stations for clean energy
Overview
Raised: $549,129
Rolling Commitments ($USD)
Active
09/28/2023
25
3,661%
44%
$8,448
190
2020
Energy, Power, & Natural Resources
Cleantech
B2B
Medium
High
Summary Profit and Loss Statement
FY 2022 | FY 2021 | |
---|---|---|
Revenue |
$0 |
$0 |
COGS |
$0 |
$0 |
Tax |
$0 |
$0 |
| ||
| ||
Net Income |
$-1,250,802 |
$-337,464 |
Summary Balance Sheet
FY 2022 | FY 2021 | |
---|---|---|
Cash |
$394,114 |
$531,214 |
Accounts Receivable |
$0 |
$0 |
Total Assets |
$622,039 |
$669,476 |
Short-Term Debt |
$129,953 |
$79,986 |
Long-Term Debt |
$80,702 |
$107,304 |
Total Liabilities |
$210,655 |
$187,290 |
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Analyst Report
Synopsis
With the ongoing climate crisis, sustainable energy solutions are more critical than ever. The transportation industry, in particular, significantly contributes to greenhouse gas emissions. According to the US Environmental Protection Agency, transportation accounts for the largest portion of total US greenhouse gas emissions, at 29%. Therefore, innovative solutions in this sector could have a substantial impact on reducing overall emissions.
Ecolution Power is a company aiming to address this challenge by developing a patented source of clean energy that recycles wasted kinetic energy from moving vehicles. The company's Module Active Response System (MARS) is designed to enable trailers, rail trains, and subway cars to generate clean and cost-effective energy while in motion. This technology could help smart cities and the transportation industry achieve a net-zero carbon footprint, aligning with global efforts to combat climate change.
Although Ecolution Power is still in the pre-revenue stage, it has already partnered with two engineering firms, Day & Zimmermann and KTM. These partnerships have resulted in successfully completing a bench testing phase and developing a prototype trailer that is now on the road generating energy. Additionally, the company has secured Letters of Intent from two American cities, demonstrating early interest and potential market demand for its innovative technology.
Ecolution Power's current crowdfunding campaign on StartEngine will fund further research and development, company employment, patents, and general expenses. The campaign aims to raise between $15,000 and $1.24 million, with a pre-money valuation of $15 million.
Price
Ecolution Power is offering equity at a $15 million valuation. The company has developed a patented technology called the Module Active Response System (MARS) that recoups wasted kinetic energy from moving vehicles to generate clean and cost-effective energy. Ecolution Power aims to help smart cities and transportation industries achieve a net-zero carbon footprint. While the concept is innovative and aligned with the growing focus on sustainability, the valuation of $15 million seems slightly high, given the company's early stage and lack of revenue.
Market
Ecolution Power operates in the renewable energy sector, focusing on harnessing kinetic energy from moving vehicles. The increasing demand for renewable electricity is driven by policy, voluntary action, and economics, with substantial growth observed in the electrification and energy storage sectors. Carbon reduction efforts are becoming mandatory in various industries, including transportation, to mitigate the impacts of climate change, presenting a ripe market potential for Ecolution Power.
The US refrigerated truck market is one of the company's primary addressable markets. This sector is valued at approximately $3.5 billion and is growing at a CAGR of 6.9%. Ecolution Power's unique offering - the Module Active Response System (MARS) - is designed to recycle wasted kinetic energy from moving vehicles, enabling trailers, rail trains, and subway cars to generate clean and cost-effective energy while in motion. This solution aligns with the broader industry and societal push towards achieving a net-zero carbon footprint.
The product's uniqueness adds to its appeal, and the landscape is not highly competitive, giving Ecolution Power a potential edge. However, the company must successfully navigate the technical and logistical challenges of commercial harnessing and deploying kinetic energy. It is also worth noting that the company is currently in the pre-product phase, suggesting that there may be significant development work before a marketable product is ready.
Notwithstanding these challenges, Ecolution Power is well-positioned to tap into the growing demand for renewable energy solutions. The company's patented technology, coupled with the increasing demand for carbon reduction in the transportation industry, provides a promising foundation for its growth strategy.
Team
Ecolution Power was founded by CEO Johanne Gabriel Medina Then, CTO Johnny Then-Gauthier, and Executive Chairman Craig Bouchard. The founding team doesn't have much experience in the energy and transportation industries outside of this current venture.
Bouchard brings a background in finance and leadership to the team. He has previously founded and led multiple companies, including Shale Inland and Esmark Inc. Bouchard has successfully led Emsark Ince to an Initial Public Offering on the NASDAQ. The team at Ecolution Power is small, with only three founding members.
Differentiation
Ecolution Power is entering the market with a unique and innovative solution that differentiates it from established players in the energy and transportation industries. The company has patented a new source of clean energy that recoups consumed energy from moving vehicles. Its Module Active Response System (MARS) enables trailers, rail trains, and subway cars to generate clean and cost-effective energy while in motion, helping intelligent cities and the transportation industry achieve a net-zero carbon footprint.
Ecolution Power's differentiation lies in its ability to recycle wasted kinetic energy and convert it into usable power. This sets the company apart from its energy, strength, and natural resources competitors. Our team could only find one direct competitor, Adgero, a British company that can capture kinetic energy from trucks as they brake. Ecolution is trying to go beyond its competitor technology and capture kinetic energy both when the truck is during acceleration, steady speed, coasting, and deceleration.
Performance
Ecolution Power is still in the early stages of its development. The company has completed a prototype trailer on the road generating energy, marking a significant milestone in its product development journey. This prototype is being driven in Greenville, SC, with the help of engineering partners and strategic supporters, including Nvidea, Wabash National, Day & Zimmermann, KTM, and Meritor. Furthermore, Meritor has selected its partner WATCO to build its first rail car prototype in Jacksonville, FL. These developments indicate good progress in the company's product development and strategic partnerships.
Regarding market traction, Ecolution Power has secured two Letters of Intent (LOIs) with The City of St. Paul, Minnesota, and The City of Amarillo, Texas. The company will supply these cities with its Module Active Response System (MARS) technology on trains and garbage trucks. This shows early validation of its technology and potential applicability in real-world contexts.
Additionally, the company has signed an LOI with Miller Electric Company (EV Solutions) to create a disaster recovery vehicle that will be able to charge EVs that have run out of battery on the road. This demonstrates the company's ability to expand its technology applications and potentially tap into new market segments.
However, it's important to note that Ecolution Power is still pre-revenue and has yet to launch its product into the market. As of the last fiscal year-end, the company had cash and cash equivalents amounting to $394,114. The company's monthly burn rate is $104,233.50, which suggests it has sufficient runway to continue its operations and product development. However, without a clear timeline for product launch and revenue generation, the sustainability of the company's financial position remains uncertain.
Overall, while Ecolution Power has shown promising progress in its product development and has secured important strategic partnerships and market traction, the company's financial performance and sustainability will largely depend on its ability to launch its product and generate revenue successfully.
Risk
Ecolution Power carries several risks that potential investors should carefully consider. Firstly, the company is still in the pre-product phase, meaning there is no tangible evidence of the product's viability or market acceptance. This creates uncertainty regarding the company's ability to develop and commercialize its technology successfully. Additionally, Ecolution Power operates in a highly regulated industry, which may require extensive market approvals and licenses. Delays or difficulties obtaining these approvals could significantly impact the company's timeline and financial performance.
There are also financial risks associated with Ecolution Power. The company's burn rate is relatively high, indicating ongoing cash outflows and the potential need for additional funding to support its operations.
Overall, investing in Ecolution Power carries inherent risks due to its early-stage development, financial performance, and regulatory environment. Potential investors should thoroughly assess these risks and evaluate the company's ability to overcome them before making an investment decision.
Bullish Outlook
Ecolution Power's innovative Module Active Response System (MARS) offers a fresh take on energy generation by recycling the wasted kinetic energy of moving vehicles. This approach aligns well with the current push towards green energy solutions, making Ecolution Power a potential game-changer in its industry.
The company already has two American cities signed Letters of Intent, indicating early market interest. This interest and the company's five patents provide a good foundation for future growth. Furthermore, Ecolution Power has already completed a prototype trailer that is currently on the road generating energy, suggesting that the company's technology is viable.
The barriers to entry in the energy industry are high, which can work to Ecolution Power's advantage. Once established, the company's unique technology could act as a significant deterrent against potential competitors. Additionally, the company's partnerships with engineering firms Day & Zimmermann and KTM could prove beneficial in fine-tuning and advancing the technology.
Bearish Outlook
Ecolution Power is an early-stage company with a grand vision of revolutionizing clean energy in the transportation industry. While its concept of recycling wasted kinetic energy from moving vehicles is intriguing, there are several reasons to approach this investment opportunity with caution.
Firstly, Ecolution Power is still in the pre-product phase, meaning it has not yet developed a working prototype or generated any revenue. The lack of a tangible product and the absence of users raises doubts about the company's ability to successfully bring its concept to market.
Furthermore, the barriers to entry in the clean energy industry are high, requiring significant financial resources and technological expertise. While Ecolution Power has obtained patents and secured partnerships with engineering firms, its ability to navigate these barriers and successfully bring its product to market remains uncertain.
Overall, Ecolution Power's ambitious vision and innovative concept are admirable. Still, significant risks and uncertainties are associated with investing in a pre-revenue company with no proven track record. Investors should carefully consider these factors before participating in their crowdfunding campaign.
Executive Summary
Ecolution Power is a pre-revenue company that aims to revolutionize the renewable energy sector by harnessing kinetic energy from moving vehicles. With its patented Module Active Response System (MARS), Ecolution Power plans to enable trailers, rail trains, and subway cars to generate clean, cost-effective energy while in motion. This innovative approach to energy production could contribute to the reduction of carbon emissions and help cities achieve a net-zero carbon footprint.
The company has made significant strides in its development phase, successfully testing a prototype trailer now generating energy on the road. Ecolution Power has also secured strategic partnerships with notable entities such as Nvidia, Wabash National, Day & Zimmermann, KTM, Meritor, and WATCO. Furthermore, it has secured Letters of Intent from the cities of St. Paul, Minnesota, and Amarillo, Texas, indicating potential future demand for its technology.
However, Ecolution Power faces significant challenges. The company is yet to generate any revenue. Despite the promising potential of its technology, the company is still in the early stages of development and has not yet proven its business model.
Overall, while Ecolution Power presents an innovative solution to energy production and carbon emission reduction, the company's financial situation and the risks associated with its early stage of development should be carefully considered by potential investors.
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