Infinity Fuel Cell and Hydrogen

Infinity Fuel Cell and Hydrogen

Growth Stage

Power at any Altitude

Power at any Altitude

Overview

Raised to Date: Raised: $204,152

Total Commitments ($USD)

Platform

Dealmaker Securities

Start Date

10/12/2023

Close Date

09/01/2024

Min. Goal
$10,634
Max. Goal
$4,999,996
Min. Investment

$818

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$8.00

Pre-Money Valuation

$54,320,000

Rolling Commitments ($USD)

Status

Active

Reporting Date

12/02/2023

Days Remaining

274

% of Min. Goal

1,920%

% of Max. Goal

4%

Likelihood of Max
unlikely
Avg. Daily Raise

$4,003

# of Investors

122

Momentum
warm.svg
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Year Founded

2005

Industry

Energy, Power, & Natural Resources

Tech Sector

Cleantech

Distribution Model

B2B

Margin

Low

Capital Intensity

High

Location

Windsor, Connecticut

Business Type

Growth

Infinity Fuel Cell and Hydrogen, with a valuation of $54.32 million, is raising funds on Dealmaker Securities. The company has its patented fuel cells and electrolysis hydrogen-generating technology that provides energy for extreme operating environments. Infinity Fuel Cell and Hydrogen’s technology is used in space and underwater systems, leading to the company’s partnerships with NASA and the US Navy. The Advanced Product Water Removal (APWR) technology is AS9100 certified and generates cost-effective and long-lasting renewable power. William Smith founded Infinity Fuel Cell and Hydrogen in February 2005. The current crowdfunding campaign has a minimum target of $10,634 and a maximum target of $5 million. The campaign proceeds will be used for product development, testing, productionization, sales, marketing, business development, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$8,956,131

$6,366,834

COGS

$6,043,244

$5,021,647

Tax

$123,269

$20,039

 

 

Net Income

$604,181

$448,992

Summary Balance Sheet

FY 2022 FY 2021

Cash

$4,464,049

$207,498

Accounts Receivable

$2,136

$26,412

Total Assets

$9,898,539

$1,003,957

Short-Term Debt

$0

$96,040

Long-Term Debt

$0

$0

Total Liabilities

$0

$96,040

Financials as of: 10/12/2023
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Analyst Report

BETA

Synopsis

Infinity Fuel Cell and Hydrogen is a company at the forefront of the renewable energy movement. With its patented fuel cells and electrolysis hydrogen-generating technology, the company can provide energy for extreme operating environments. The technology is so advanced that it is used in space and underwater systems, leading to partnerships with NASA and the US Navy.

The company's Advanced Product Water Removal (APWR) technology is AS9100 certified, a quality management system standard for the aviation, space, and defense industries. This certification is a testament to the high-quality and reliable performance of the company's products.

With the growing demand for renewable energy solutions, Infinity Fuel Cell and Hydrogen is well-positioned to capitalize on this trend. The company's technology is innovative but cost-effective and long-lasting, making it an attractive option for businesses looking to reduce their carbon footprint and transition to more sustainable energy sources.

Next Section: Price

Price

Infinity Fuel Cell and Hydrogen is offering equity at a valuation of $54.32 million. The company has achieved profitability and is transitioning from research and development to production with commercial contracts. With a revenue multiple of 6.07x, Infinity Fuel Cell and Hydrogen's valuation seems reasonable, given its growth potential and partnerships with NASA and the US Navy.

Next Section: Market

Market

Infinity Fuel Cell and Hydrogen operate in the fuel cell market, which is witnessing increasing demand due to the growing need for unconventional energy sources. The US fuel cell market is estimated at $3 billion, with a growth rate of 21.7%. The demand for hydrogen power plants is expected to increase across the forecast period due to increasing regulations in developed economies to reduce greenhouse gas emission rates. The growth of this market is also bolstered by the rising emphasis of governments in mature economies such as the US and Europe on technological advancements to replace electric grids.

Government support, particularly through funding Research & Development (R&D) activities and suitable financing programs, is a key factor driving this market. Building a robust regulatory framework is crucial as government enterprises must create an environment favorable for investment. This is particularly important in this space as there is a high market approval or license regulation.

The company's growth will depend on the increasing use of hydrogen in society. This growth will also depend on the increase in green hydrogen production plants, which can take years to develop.

Next Section: Team

Team

CEO William Smith founded Infinity Fuel Cell and Hydrogen. Smith brings extensive experience to the company, with 27 years of hydrogen industry experience. He has a strong background in fuel cell technology, particularly in air-independent and regenerative fuel cells. Smith previously co-founded the hydrogen company Proton Energy System. He grew the company from a 5-employees team to an IPO on the NASDAQ in 2000. In the meantime, he raised $200 million for the company.

The team at Infinity Fuel Cell and Hydrogen consists of 25 members who are dedicated to the company's mission. Robert Byron joined the company two years ago as the Vice President of Engineering. He worked with Smith at Proton Energy System between 1997 and 2000 and continued his career in the energy sector.

Next Section: Differentiation

Differentiation

One of the key offerings of Infinity Fuel Cell and Hydrogen is its Advanced Product Water Removal (APWR) technology, which is AS9100 certified. This technology generates cost-effective and long-lasting renewable power, making it an attractive solution for businesses seeking sustainable energy solutions. The company's success in achieving profitability and transitioning from R&D to production with commercial contracts demonstrates its differentiation and market traction.

While the company operates in a moderately competitive landscape with established competitors such as Bloom Energy, Toshiba, and Hyundai, Infinity Fuel Cell and Hydrogen's focus on extreme operating environments and its partnerships with prestigious organizations like NASA and the US Navy give it a unique position in the market. The company's high barriers to entry, including its patented technology and partnerships, provide a level of protection against potential competitors.

Next Section: Performance

Performance

Infinity Fuel Cell and Hydrogen have shown impressive performance in recent years. The company has transitioned from a research and development phase to profitability, with two consecutive years of profitability. This transition has enabled Infinity Fuel Cell and Hydrogen to focus on commercialization and production, securing commercial contracts for its patented fuel cells and electrolysis hydrogen-generating technology. 

Infinity Fuel Cell and Hydrogen have partnered with notable organizations such as NASA, the US Air Force, and Schlumberger. These partnerships demonstrate the credibility and value of the company's technology, particularly in extreme operating environments such as space and underwater systems. Additionally, Infinity Fuel Cell and Hydrogen's Advanced Product Water Removal (APWR) technology is AS9100 certified, further highlighting the quality and reliability of its renewable power solutions. 

The company's financials are also strong. Infinity Fuel Cell and Hydrogen reported annual revenue of $8.96 million, representing a growth rate of 40.67% compared to the previous year. This growth indicates increasing demand for the company's products and solutions. Furthermore, the company had cash and cash equivalents of $4.46 million at the end of 2022, providing a solid financial foundation for future growth and development. 

Infinity Fuel Cell and Hydrogen operates in the US fuel cell market, which presents a significant addressable market for its innovative technology. The company's focus on delivering cost-effective and long-lasting renewable power solutions positions it well within the competitive landscape. 

Overall, Infinity Fuel Cell and Hydrogen's profitable performance, strong partnerships, and innovative technology make it an attractive investment opportunity in the energy, power, and natural resources industry. 

Next Section: Risk

Risk

While Infinity Fuel Cell and Hydrogen has made significant strides in the fuel cell technology space and has established partnerships with prestigious organizations like NASA and the US Navy, there are several risks to consider when evaluating this investment opportunity. One key risk is the highly competitive nature of the industry, with direct competitors such as Bloom Energy, Toshiba, and Hyundai. This competitive landscape could pose challenges for Infinity Fuel Cell and Hydrogen regarding market share and pricing power.

Another risk factor to consider is the high market approval and license regulations involved in the energy industry. Compliance with these regulations may result in increased costs, delays in product development, or the need for additional licenses and certifications.

Furthermore, the long sales cycle and the need for extensive production and quality control processes for hardware and consumer packaged goods (CPG) pose potential risks. Ensuring consistent quality and meeting customer expectations can be challenging, leading to delays, increased costs, or customer dissatisfaction.

Lastly, the company will be dependent on the development of green hydrogen to capture new market shares. This development will depend on various factors, including government incentives and regulations. The green hydrogen market will take years to grow and require long-term investments.

Investors should carefully consider these risks and conduct thorough due diligence before making any investment decisions regarding Infinity Fuel Cell and Hydrogen.

Next Section: Bullish Outlook

Bullish Outlook

Infinity Fuel Cell and Hydrogen is well-positioned in the growing market for fuel cell and hydrogen technologies. The company's patented fuel cells and electrolysis hydrogen-generating technology have proven effective in extreme operating environments, leading to valuable partnerships with NASA and the US Navy. These partnerships not only provide credibility but also open doors for future contracts and collaborations.

Infinity Fuel Cell and Hydrogen's Advanced Product Water Removal (APWR) technology, which is AS9100 certified, offers a cost-effective and long-lasting renewable power solution. The company's focus on air-independent fuel cells and regenerative fuel cells has resulted in breakthroughs that have improved performance and reliability while simplifying the complexity of these systems.

The company's financials are also promising, with solid revenue growth of 40.67% in the most recent fiscal year. Infinity Fuel Cell and Hydrogen has achieved profitability and generated $8.9 million in annual revenue. With its high market potential and growth business type, the company is well-positioned to capitalize on the increasing demand for clean and sustainable energy solutions.

While the competitive landscape is moderately competitive, Infinity Fuel Cell and Hydrogen has a distinct advantage with its patented technology and established partnerships. The high barriers to entry in this industry further strengthen the company's position as a key player.

Next Section: Bearish Outlook

Bearish Outlook

Infinity Fuel Cell and Hydrogen operates in a highly competitive industry, with direct competitors such as Bloom Energy, Toshiba, and Hyundai.

The company also operates with a low margin level, indicating potential challenges to grow its profits. Investors should closely monitor the company's ability to improve its profitability and maintain its revenue growth momentum.

The development of hydrogen in more areas of society will depend on the development of green hydrogen. New green hydrogen plants will take years to develop, and the rise in materials costs could slow down current projects.

Next Section: Executive Summary

Executive Summary

Infinity Fuel Cell and Hydrogen, Inc. is a company that specializes in the design and production of next-generation air-independent fuel cells and regenerative fuel cells. The company's patented technology is used in extreme operating environments, such as space and underwater systems. It has partnerships with NASA and the US Navy. The company's Advanced Product Water Removal (APWR) technology is AS9100 certified. It provides cost-effective and long-lasting renewable power.

Infinity Fuel Cell and Hydrogen have strong market potential due to the increasing demand for unconventional energy sources and the global push towards reduced environmental impact. The company has already demonstrated profitability and is now transitioning from research and development to production with commercial contracts. This positions the company well in a moderately competitive landscape with high barriers to entry.

Investors should note that while the company appears to be on a positive growth trajectory, it operates in a highly capital-intensive industry. The company's revenue growth is robust, with an annual revenue of $8,956,131 and an annual revenue growth of 40.67%. The company is not overvalued, with a pre-money valuation of $54,320,000.

Lastly, the company's leadership team is highly experienced in the industry. The founder and CEO, William Smith, previously exited a hydrogen company through an Initial Public Offering (IPO) in 2000.

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Infinity Fuel Cell and Hydrogen on Dealmaker Securities 2023
Platform: Dealmaker Securities
Security Type: Equity - Common
Valuation: $54,320,000
Price per Share: $8.00

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