Energy Management Products and Services

The target acquisition includes two complementary businesses: the first provides cost effective energy management systems to homeowners, solar companies, and utilities; the second is a vertically integrated electronic design and manufacturing business that manufactures energy management products. The Company's hardware and software solutions provide detailed monitoring capabilities of not only whole home/business energy usage, but also detailed disaggregation, to provide a comprehensive view of a customer’s energy consumption profile. With its well-proven Z-Wave and Wi-Fi-based load control technology, customers’ energy usage can be tailored to automatically minimize costs for any given time-of-use and demand utility billing schedules, as well as respond in real-time to external signals such as pricing and demand requirements set by energy markets and the energy utilities. The Company's Smart Energy Management Systems (SEMS) have demonstrably reduced customers’ utility costs by more than 35% by shaping their demand profiles to match the utility demand billing rates, and without negatively impacting comfort and convenience. This is achieved both through advanced load orchestration algorithms that control large loads (such as HVAC, water heater), and by guiding behavioral change through detailed customer-focused analytics via the Company’s proprietary ‘Connect’ suite of data-centric web and mobile applications. The Company’s goal is to allow customers to ‘set it and forget it’ while their energy usage is being optimized thus reducing cost, improving electric grid stability, and reducing carbon emissions. Investment Considerations: Innovative Technology: The Company boasts ISO 9000 certification and has been designing energy management systems for two decades. It is a recognized innovator and leader in advanced microcomputer load control systems that monitor energy consumption during peak demand periods to help customers save substantially on utility bills. Established Client Relationships: The Company has strong ties with solar companies, energy management companies and electrical utilities. The Company serves 35 loyal accounts that generate word-of-mouth referrals and 100% repeat business annually. Management believes there is tremendous potential to expand across the US by hiring sales representatives with access to major utilities and solar companies. New Product Growth Opportunities: With its growing product line (soon to include a low-cost multi-channel meter-grade monitoring solution as well as a managed commercial and residential EV Charger), and the growing recognition that load orchestration / control technologies are essential for the modernization of the US energy grid, the Company is uniquely positioned to provide cost-reducing solutions for home and business owners, and for utility companies. Location: Arizona Growth & Expansion: The power grid in the U.S. is aging and struggling to meet current energy demand. It faces a future with more people driving more electric cars and heating homes with more electric furnaces. It is in desperate need of modernization to provide increased stability, resilience, and sustainability. The Company designs and builds the core technologies and data services needed to realize a healthy energy grid at the local, regional, and national levels.