Trutankless, Inc.

What they do

Trutankless, Inc. was incorporated in Nevada on March 7, 2008 and operates through wholly owned subsidiaries Bollente, Inc. (incorporated December 3, 2009) and Tankless365, Inc. (incorporated October 20, 2021). The company does research and development, sales and marketing of a whole-house, smart electric tankless water heater that it describes as more energy efficient than conventional tank products. Management is developing a second generation of Trutankless water heaters with Bluetooth and Zigbee capability, along with a proprietary app intended for the iOS and Android stores. The company also spun off its wholly owned subsidiary Notation Labs, Inc. in a distribution completed January 24, 2022, with shareholders of record receiving one Notation Labs share for every four Trutankless shares.

Revenue drivers

• Trutankless residential and light commercial water heaters — The company's only reported source of revenue; fiscal 2025 revenue of $1,082,887 was attributed in the 10-K MD&A to the next generation of Trutankless residential and light commercial products. Cost of goods sold of $1,040,865 in 2025 left a thin gross margin.
• Repair and replacement wholesale channel — The company states it hopes to launch additional products suited to key customers in the repair and replacement wholesale market. This is a stated target rather than a separately reported revenue segment.
• Homebuilders and multifamily/commercial new construction — Management identifies home builders and companies associated with new construction in the multifamily and commercial markets as a target audience. No revenue is separately disclosed for this channel in the excerpts provided.
• Smart-home/app-enabled features — The Trutankless product is designed with Wi-Fi capability and app connectivity, and management says it plans to introduce additional technologies that integrate with the Trutankless smart apps. These features are described as product differentiators, not a separately reported revenue stream.

Recent performance

Fiscal 2025 revenue was $1,082,887 versus $242,350 in 2024, with cost of goods sold of $1,040,865 versus $279,356. Operating expenses fell to $3,612,548 in 2025 from $5,183,038 in 2024, driven by a $1,572,752 decrease in consulting fees and a $269,306 decrease in research and development. Net loss narrowed to $4,750,710 in 2025 from $10,186,102 in 2024, and cash used in operations declined to $1,483,173 from $2,315,411. The company ended 2025 with $21,619 of cash, an accumulated deficit of $81,852,679 and a working capital deficiency of $10,612,370. In the most recent quarterly data, revenue was $223,950 for the quarter ended 2025-09-30, $334,396 for 2025-12-31, $940,466 for 2026-03-31 and $538,673 for 2026-06-30, when the company reported $13,133 of cash, $4.0 million of total assets, $14.9 million of total liabilities and negative shareholder equity of $10.9 million.

Strategy

Management states it will focus initially on the United States residential market and continue developing products for the electric tankless market. Over the next twelve months management plans to raise additional capital and invest working capital resources in sales and marketing to increase distribution and demand. The company intends to launch additional products aimed at the repair and replacement wholesale market, home builders and multifamily/commercial new construction, and to integrate future technologies with its smart apps. Research and development spending fell in 2025 because Gen3 development was completed and sales of that generation increased. Management also cites industry data that the smart home products market was valued at $169 billion in 2025 and is projected to reach $385 billion by 2035.

Risks

• Going concern — Management determined that substantial doubt exists about the company's ability to continue as a going concern within one year of filing, dependent on generating revenue and raising capital.
• No internally generated cash flow — The company states it has not generated sufficient revenues from product sales to finance operations internally, with cash of $21,619 at December 31, 2025 and negative operating cash flow of $1,483,173 in 2025.
• Need for additional financing — Management plans to raise additional capital over the next twelve months and says there is no guarantee it will raise sufficient capital or generate sufficient revenue.
• Accumulated deficit and working capital deficiency — The company reported an accumulated deficit of $81,852,679 and a working capital deficiency of $10,612,370 at December 31, 2025, and negative shareholder equity of $10.9 million at 2026-06-30.

Outlook

Management says its focus over the next twelve months is to raise additional capital and invest working capital in sales and marketing to increase distribution and demand for its products. It warns that if it fails to generate sufficient revenue and obtain additional capital, it may be forced to scale back or discontinue its sales and marketing efforts. The company also states it is unaware of any trends or uncertainties in the sales or costs of its products and services for the periods discussed. The consolidated financial statements do not include adjustments that might be necessary if the company cannot continue as a going concern.