Tecogen (TGEN) 11 May 232023 Q1 Earnings call transcript

Greetings, and welcome to the Tecogen Q1 2023 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

With us today are Abinand Rangesh, CEO and CFO; Roger Deschenes, CIO; and Jack Whiting, General Counsel and Secretary.

It is now my pleasure to introduce your host, Mr. Jack Whiting. you. Thank ahead. go Please

website is presentation note General website. recorded this on in XXXX section of be This regarding Investors press of first the this our and and morning Tecogen. archived quarter our section Investors Please call and the our tecogen.com. Jack morning. A Counsel release the Whiting, earnings Secretary will at provided Good of is available being are

in the XX-Q by in from would make Safe available on indicated the those included of XX-K XXXX. reports I SEC under expectations, Private including result forward-looking in annual a provisions to results under file Harbor Various constitute Commission presentation. purposes Factors, attention differ direct report section our the about with prospects safe statements forward-looking of recent the Form future may Securities as Actual may press our to earnings Securities website the those these important Filings. remarks like quarterly your company’s and plans Form we Litigation heading and of and the and of factors, harbor various Act materially the for release statement that the Exchange which are statements under the and caption on most Investors Risk company’s discussed on Reform

the today. you point date our While disclaim to representing forward-looking Therefore, of we any update may statements so. future, rely not should subsequent we specifically in on to as at some statements obligation do any views as to elect any forward-looking

quarter generally in most not earnings of measures accepted and these the measures section our directly certain A non-GAAP the first website. GAAP with provided financial in XXXX regarding the we accounting accordance measures comparable reconciliation this will GAAP. call, release our During to in of financial Investors press refer principles to is or prepared

turn to the Abinand over now I’ll call Rangesh.

Earnings Jack. First Quarter to Tecogen’s Thank XXXX Welcome Call. you,

the on are out regards and last update. start in In we both with business, with call, I the a plan. will out In focused a short- stabilizing progress cash. laid term, medium-term I agenda, to particular Today’s short the

building update – distribution channels, grow. this cover sales also so the and with I’d are the mean, can then to like out XXXX results. start XXXX We revenue I and the

Although forward end am we last. expect at saw to decline was higher QX quarter XXXX, than that the to QX I XXXX than better a our revenue happy subsequent be the of this for XX% point I from XXXX. every note revenue

are revenue successfully service have to and from We to starting acquired team been has Aegis the sales them. derive integrated The expand from now sales diligently contracts we pipeline. the working

nearly sales have added XX% deals QX. pipeline than more into the We in

on units. yet working Although we in up larger more projects make our not cumulatively have that than some backlog, XX been also

close and these year. optimistic We later will are in ship the

stable. position the cash with finished remained Our $X.X quarter million. We

cash Our position million. today $X is over

further ship expect to also when inventory in up free as reduce cash and QX. more We units QX levels we

expect quarters. still are million owed NYSERDA upcoming to we we the collect rebates, which Lastly, in over $X.X

chiller. Lastly, air-cooled the for working we obtaining purchase on orders first are the

than a greater the update had last the I call, is target a cycle sales year, set order typical purchase our Although August. first during by of investor

to on that. way We are our well achieving

files and the XX, results, ransomware to on and were two asked we’re the happened I quickly, attack on fully Friday backup. caught some operational company investors We about know it to from on ago. the able move I Monday. have attack weeks all The Before experienced we restore

key so we’re unaffected. are on Our cloud, systems the

copied any just believe doesn’t from case. the have all network, Our files but provided cybersecurity we in insurance employees identity were vendor theft

the model results. Roger our of reviews and I’d before business products like to do a quick recap our

for We end have three propositions customers. value

a the for backup water produce the blackout. This engine savings We for to and event first a of to gas use in use resiliency. for cogeneration in electrical hot The and cases, is heat building. natural and is generation some generate energy the engine power electricity power

heat, as lower able gas twice have efficient the are are a we plant equivalent as We so greenhouse an as footprint. fossil fuel much use to power we

our water products. that cooling such These in The control, second as care, products clean and is water hot chilled et cetera. health generate CEA, climate require simultaneously applications

are cooling and cheapest the We source control. of humidity producing

prices summertime cooling when the load Typically, lowest. highest occurs are in natural gas

also So energy we customers savings. offer substantial

for energy applications to In sufficient little to are to unable are so no chillers our require addition supply where power. savings, to electricity operate, utilities ideal

As utilizing power is combination fuel since our with waste. than boiler cooling XX% tax payback are investment electric and our greenhouse cogeneration credit gas and that footprint cogeneration, a Both substantially. products reduces electrical clean not the plants chiller fossil benefit most the cleaner an electrical equivalent from

Our last customers and to is value our asset management service services. proposition long-term

Our energy maintenance service centers allow end-to-end and provide to maximize customers their savings.

that sites years, maintenance range ten we to is area to than typical Our run longer contracts plan of services our also that we maintain We on. focus will the ancillary increase offer we service. This strategy increase and for heavily an that also balanced supply. the number of provide services and

We revenue have segments. three

product cogeneration range Our and chillers a units, revenue consists of microgrid to markets and of of systems customers. sales

contracted Our and consists primarily our services maintenance services. revenue of operations

energy facilities. sales, of Our including is revenue energy on-site customer equipment at production by our electricity thermal stream produced sales energy from and

business model. also on our from have had I investors some questions

Aegis is the I we obtaining the by key service then points So for possible. money selling more result product makes When the additional service to make as core many business, way highlight contracts significantly are service valuable. our contracts as with at to we keep of cash flow expanding a sold like some that and business as took and time, the we that Over of the plan the would from on years of operate. much unit. This we the reason this business look

I would over the to At Roger to talk about results. QX point, hand to this like XXXX

and thank morning, Good you, Abinand.

end towards of revenue XXXX. has we decline been the saw mentioned, As already a

which in the $X.XX or XXXX. QX loss net million in million $X.X a of compares quarter resulted this, was line in first a result per top revenue As of This share. the million quarter $X.XX to current our $X.X of in XXXX,

QX in XXXX profit XXXX, to which due first primarily million, quarter million $X.XX compares with the was in the decline. revenue and gross $X.XX this of Our was

decreased the We provide reduction, on context to also margin on to in which of quarter compared more will XX.X% in saw margin the and a in reduction increase performance XX.X% the Abinand to margin review. our plans first quarter XXXX. segment the

QX in the and from which the operating onetime the Our assets gains the from energy-producing operating expenses to costs were due of The of of higher associated some assets. launch disposition quarter, was predominantly chiller. onetime first the XXXX benefited air-cooled with disposal other associated with expenses

EBITDA. Moving forward to

For $X.X million, the of was first was EBITDA quarter loss of a EBITDA $X.X of a million. adjusted XXXX, loss and

hand now to the call Abinand I’ll talk to by the about performance over segment.

you, Thank Roger.

recover During see our mentioned last XXXX. start should call, margin in I to that we

second chiller XX%. margin, lower than the margin significantly of more than product, increased initially Looking to When it and at appears lower than product XXXX. half QX by XXXX the analyzed

units cogeneration And so now an However, was we by This contract the expect increase reduced expired. in existing margin. from we using XXXX substantially. forward, has product the margin now are XXXX with This overall going pricing, cogeneration driven customer. an supply a

more. margins revenue. On the incurred typically actual profit of This in quarter-to-quarter X% to gross fleet. had maintain service segment an expenses XX% on side, XX%. varies The margins expect service of the We had or based increase we of

number a Toronto of have installed We that in the around significant same all engines were time.

constraints we QX. in chain these supply a replacements, was engine are As increase there disproportionate easing, made so in cost

for are higher typically also costs has addition, prepared chillers service In the since cooling season. QX summer

context, In XXXX QX atypically high an had at margin XX%.

seen haven’t permanent in taken changes when we margin. context, to service any So

On that on the weather particular due winter. cogen we lower production changes conditions to ran X% outside how energy and revenue, units many segment, had primarily depending

to to is avenues. come margin approach increasing going Our multiple from

implemented cost to us have This to business track We performance. is metrics excursions catch quickly. better to allow going

If intervals. We’re service improve also working will this significantly successful, margins. our on we are increasing service

have to improved plant. cogeneration incremental performance. a perform We additional is balance high-margin revenue This service plant such billable and work of started as program

to to continuing items. our especially our improve are cost of We products, major chillers reduce

will increasing I biggest from come product improvement come improvement – the in However, from product biggest margin product believe margin will increasing volume. in

up and To division stabilize recap and the easier install to free grow We plan to to plan products we cash our service our and business. make sell. strategy, the

sales seller. the we right And via to developers. partners the We’re for system plan expanding and air-cooled channel backlog distribution build our up the

a at is cash flow Tecogen has impressive a business term. point. think The and technology generates that turning long I company over consistent model the

significantly, However, make in some changes. order need grow to major we to

has easier hybrid a and rates financing partnerships a the of improved our products, and future companies distribution am chiller other for resulting With higher introduction I utility that potential the with hybrid purchasing confident Tecogen and products savings for in of system, customers, revamped promising make nationwide future. to the sales

to would now further operator to for any I like the over hand questions.

coming floor the Alex Blanton [Operator now ahead. is Instructions] for today The gentlemen go Clear open first is questions. from and Please Harbor Management. Ladies Asset of question

morning. Good

Good morning, Alex.

you expiration If little margins hurt was. cogen. on It more me – information hurt what on us clear contract give wasn’t the that the that a could contract that the to

a that’s question. No, great Sure.

So we customer, and And to signed cogeneration here, an but where had won’t with sell was as midpoint – – last the agreement well multiple probably of a this we pricing units fixed. year, I as this working there we period year. last number a units. was had fixed And the was signed time mention company actual started

given was customer based increases the And early we we was XXXX two substantial of cost saw pricing this XXXX. as materials. price that on pricing the the in basically increases So from did in

pricing basically QX we of has waited XXXX, So – that now expired. as

current forward So, will going have with pricing. customer the every project that

And while were that was contract you was that – but CEO? –

me. predated this No,

Okay.

this So what your going on going be to of kind is contract? forward, policy

avoid product. where projects But contracts where to later think we’re the like period that can to have breaking – of a And what a quotations orders into the build basically that if we time that we structuring we substantial time we is if are shipment can given the be our to, for ship this at of we right, we of project. it on as for to believe it. – that deposit not willing projects the are take we’re that taken some we certain year Basically, going time we would only that hold of that project there’s – I – a are larger now. sub date, The realistically, our can would way is cost example, we took we’ve order. inventory based the have, part we we we today, going know have that placement we’re those of

believe not exceeds that, will So, we that the hold of then we the price. if period time

with now, levels, right of inventory as our seen As you’ve high. substantially they’re

units, certain of be. is know for what a the number we to cost exactly So, going

pricing. hold the So, not set price we we can then outside and that appropriately, will

confidence is you gives that you higher than by backlog So the each What forward way, quarter to Okay. last? a figure? going the be did going report

Yes.

So it, right apologize it’s – skipped through the somehow million. did right I I might I now if is – but $X backlog in didn’t, $X over just case around I I report million.

be But right time, that, ship or a I have to have we not to year, now, high last Aegis And So have we ones top on of right? were – projects to then going backlog We’re the this work right? now back were they certain relatively we we have done we are is why deal. up solid where to as for essentially for to this to in of know believe are as which basically numbers then period when. which be a And they’re where that. going going

more So, quarter. that’s know to I the every revenue service adding

we’re beyond of orders come on timing solid. but long are is hard – to these along those, on then a did will were – projects as it’s we mentioned, – going larger what of as that to than QX, I as in essentially product And QX tell QX. where them. the they’re there going hit Unfortunately, through, So, that, in we the to far higher we’ve can be number in is those some number when we pretty quite looking

point, At to come going some through. it’s

revenue the to of And fact pipeline. out the in increase to see That’s what spending sales to as before, well to take you’re in a massive what is not building really backlog, these time is a I’ve going It’s mentioned is service going combination time. our over take short And some in that’s going have going I order a us we mean that – the I believe contracts additional already improve. So, months. XX we’ve cycle also just it’s combined That’s the in with XX on mean, not term. just channels. – that got going that necessarily the revenue

got believe based So, we’ve today the that can are just takes contracts, QX. on where some time. service we what exceed we I on But on

my So, statement that’s underlying came where from.

thank Great, you.

Alliance next is from Partners. you. Thank Global go question The Grampp of Please coming Jeff ahead.

time. How elsewhere? was you unique Good Aegis that? Can talk morning. Or a look Thanks repeatability set guys there? something contract for that you question I guys you the of just opportunity curious the on about the of replicate that acquired. you. Is that had of to if an you opportunity Thank kind the will. could

has Great In particular to just very the of similar question, some that unique ways, product that a ours. Jeff. is Aegis very opportunity because fact

that So, service. amount capability training those of And new huge for terms technicians part took require additional of on a us contracts, we on add to doesn’t cogen of it transaction. and in as

a kind up – But believe – our this products. to be it programmatic are I some there. that entities some from may in what XXX and year, possible, other some we is can kind grow Aegis going are are additional harder sites company. the a companies on interested other plan units, there, interested. is If we of be to of XX of to But do who does deal. cogen entities additional come, a there be there deal be might approach depending we pick of where a taking However, to the first terms if contracts. going of the integrated. going There’s don’t service are of sites in that this course small a we couple some growth on it’s there, to do try players have cogen either doing own programmatic And that other additional on but are the how to between over

appreciate I Understood. that.

that launch out the the on a some out that called basically is about if measures to an of side kind will I follow-up, forward? counterbalancing of and Or marketing something OpEx of air-cooled you guys get And into you period, things, ramping investment how have chiller one-off in you of perpetuity, new kind for kind there be should that wondering guys product a we Is you containment previously? of you the thinking that For Just that OpEx with maybe increased continue believe as launch. will, market? the going given have market? mentioned this cost

Yes.

show. it’s we And when the air-cooled trade basically So, basically it’s the AHR in show. chiller, for had the to it’s OpEx largest, side, the And we launched we that, the unit at launched trade pretty trade XXXX of one itself, expensive it, because the take down Atlanta. a to show

marketing we lot associated be the costs anywhere I a costs, will but don’t So, of expect QX. that. on one-off to what that near with of were ongoing spent There be course,

with because these Just lot companies a as could through well marketing sell gas ongoing the as of other going partnerships to the is and entities that come developers product. project

time. for the Thanks helpful. Very,

Thanks, Jeff.

go Dayal Amit from coming is question of ahead. next H.C. The you. Thank Wainwright. Please

new structure? organization Thank everyone. new you or Could bit little the about sales the talk sales morning you. a Good

Sure.

better some the end increase in determine burning selling sales like project lot the chiller one that push, of there’s that sees whereas a New dug to isn’t is And lot appliance, in be when So bills. of were – at who that where electrification owner to through And utility the placed these a developers community a of moment York of set a owner huge doing the way we are markets engineering huge works we things community. we capable the gas the with really we and engineering interested what what a in end out key into who key are reps things sales. our of need the that – doesn’t,

in So, they might be measures. interested cost saving

the services broader also just money a So the few other service what is of segments kind but offer. project That to end developers pitch that installation way, we including project. the have they and different owner project to able on a done make equipment, the and are in a of is find part of a can make piece go quite developer that on for equipment not this any

just an with we we owner that modular ancillary For example, things matter the become They time, are if a to of But be, in little revenue that in willing really have Does an the They and a with they’re have equipment. have well. a working end where recurring do that the cannabis partners developer. the they of just they kind development, revenue add-on of And and around that the to that the are systems, of it’s period can is they bigger service working some some on, offer as need your chiller right? project. of like finding ways were a facility are question the building owner those of space, answer plants so cases, business a over project relationship bit or already that or... one building guys direct complementary with a sale the doing stream we control project are

that’s No, line Thank And what with contract, then that share you the sort of will could the respect like? Aegis you. margins look for to business helpful. of

one-year short is that service at again, very like. have exactly point, similar make existing product are schedule. so for hard to service very margins After so Primary what to those is, a short-term short will to to business. have we get expect those Once or but those very in similar predictable with only in service be existing needs right, expect tell to term, the – – We we we it’s term, pretty get units through maintenance But – the our it our to similar. margins anything costs done business. least over margins that, look replacements typical the engine both units, look if the making not they doing be, need integrating associated any of those to reason kind that

Understood.

paying after commission. any that’s And

are grow Okay, have, emphasizing keep well, how much service right it. on of will And side people? growth the and got you you And service the sort business? find that the side infrastructure the add And as of you be current are then the as you with able challenges and what revenues that in side the to to growing as that people you business, service can support? team the

is great look up margin again, picking the right? do service – one and over start of revenue basically. found where So head service side We’ve also we on these many we the extend that do the intervals, can to That’s need the the question. service actually more we to same Part years, what more right of people on with have business. been per lucky areas

train We staff new wherever staff program place. got able be place have structure good add to good additional we And a in to need. in training we’ve a to

most doing of pay, the the just is that’s just of revenue thing have got adding all that of to But you And as incremental the or all business, a on revenue already going incremental with of associated work had, good things. little an a in fringe then staff. in units XX there associate existing place, head and soon a you that in in adding the the of with and that’s as center bit location direct if place comes right, a benefits those inventory that cost you units add you’ve to that majority directly additional location, indirect service in cost is with really because units. the costs is XX matter say, And service incremental that

there. a it So, be will cost direct

over And done to almost So, has If intervals. to opportunities right? years, We’ve last service also I margin you doubled just service it scalable. increasing look believe in ten size. business the improve I there’s date, in it that by believe business is completely

thank guys. Okay, That’s all you I have.

Investor. question you. Jake go MacRobbie The is [ph] a Thank next from ahead. [Operator Instructions] coming Please Private

Hi.

evaluating customers side the was my curious Aegis on that as of what the is from as KPIs are I what follow-up kind contract. Aegis against? what well the success transition, one early Just of seeing signs

did that additional transaction, of Aegis eight from standpoint, oversee right, and the person took units. basically customer So, way could we the that the one on high-level employees we those

units because customer saying those transferred as So, some customer has from cases, And really, these over. Tecogen competitor. know that well. of they been we’ve been standpoint, of a got A units customers letter have a our in lot the of the some

sites different standpoint, of term, and Aegis those a And in already. of the are of we customer employee now is is see doesn’t the Aegis getting many short because our much we’re a product. them term What’s difference the There was where those the on from don’t. some customers their there’s just those existing some the logo. day-to-day those on we same So, where technicians of product servicing cross-training know that that customer happening servicing employees in under medium are trained our a

have nearest So, to is technician we’re to the site. then sent the basically over time, whoever going would get

same terms In there’s that the kind service out huge not a Tecogen’s of they’re – same happen changes, they’re day-to-day because, to like of again, other territory, needs amount going use systems. dispatching dispatching of to operating it’s

does give that it’s a different So, different. answer did a slightly your you I I that for different question? Or question? answer not mean

XX what I’m performance kind kind think, And or certain there? of you to determines said the looking guess uncertainties what sites, I No, helpful. criteria of curious with, the that’s other are Yes. is against then Aegis XXX just I for like

as really couple that units down the well. of slightly some has So, of to a different Aegis comes – so

– regards we really. add we we’re where our criteria, the on XXX assessing I on. sites on most then the first we’re So additional mean took to have right based that just are And to with the to take when we of going integrating just on the benefit customer, It’s that first ourselves, data and to we depending the other and both we the in little how them careful want Aegis, going, ways that right? are units sites about a analyzing on has. Aegis be

but by can six and that from the the that. just take XXX how move It’s see within – a about step step. being fast we are likely cautious So, sites the it’s we need on there months, then first to move with next we very on new quarter go little we just all how forward

thank Understood, you.

Thank next ahead. Michael coming Private Investor. Please question you. The is a Zuk, from go

Good New to attention want I York to morning. direct City. our

is in a to New guess, out, is York phased happened lock opportunity a in ends there systems, the going XXXX is in phase our some what’s fuels then starts City going market short-term Given forward? deadline, systems not and gas-fired in gas-powered in a we And with where are be the follow-up, XXXX. fossil situation are the to gas-fired systems New in going York if as there given I opportunity to to systems replace electric

So, new state a ban, are retrofit. it right, said the no our existing right that Having fuel majority right hit been basically law like the for gas retrofits. right? It new tries blanket clarifications a when thing, a projects customer New way written, basically of creates is that, couple of actually But construction. a It perception connections put says has doesn’t on York fossil the to technology. not it’s the not actually

in – short continues you’re in to are of into. it’s The new that So, market cannabis into the our a that no selling lot Places projects going and of have you sales of affect buildings. buildings, construction, projects. no cannabis are where existing kind New new going When we’re a thing them projects New fuel fossil this right? is York constructions, multifamily to see like term, impacts be York, the to

ban going a was to of a the new that have existing can. And the those lot continuing York think because fossil law the as is to New didn’t just I’m the on. switch we construction of focused in pass as in of complete to definitely will fuels New pure York many the I come on are to ability we buildings short point. to electric at lock One aren’t some where term. reasons sure try But really is those projects

products. I industry it as is customers – essentially pretty the business for in looking great was Right? Right? the like savings to where The way savings. they’re the majority as country economic opportunity way get have anywhere economic see to a still of Tecogen There’s much Right? a our savings, similar ago. a XX We the economic I’m solar the find still the is whole at years share have just country. the to still to

And with tax I with beyond New the some can – York customers has broader utility the credit the markets short. projects payback there we Right? financing systems, just these combined are is New maybe think, help pay combination rates. that makes York. of incredible mechanisms very for It very

right as a country because But in we’re of we’re channel have much rates country. Midwest, whole in the broader it opportunity rates think are right, that more the there up. of also more there’s do and I still having Gas the the Savings right anti-gas, said And that, go and proposition, to bigger terms stabilized. looking reasonable. are there’s kind the across look country, lot are Florida, becomes at now at starting what partners, of working right a on places pretty – this affiliate with the which is look

have would I And thought they’re some converting opportune to me Which speak? there to I electric the be and have places Are in been concentrate to systems friends Florida. opportunities like Rico, on? in maybe propane. we’ve marketing geographies a Have somewhat effort to them. that that our is propane, know in seems started for to Puerto do successful any infrastructure where given Rico like shattered, you to intend are so it that? you Well, Puerto converting if

– are then over – and mean we the projects like there. a is have a market continuing break issue easy the that Puerto in it projects see generally. and in lot into. projects Rico it always Puerto Rico an I has cycle very, seems been very at look long The to So, we to and hasn’t it been of Caribbean selling we’re Caribbean there to with

easy the can see not still the that But Chicago, of to Utility still market like very well a are some that – to there in it existing like Puerto new – Caribbean rebate do partners an that lot is done started up. heating Maryland, has creep actually it’s as projects both good for we chillers. some as Maryland with they’ve has we’ve opportunity but rebate, sure projects bit a hoping I because places such Chicago signed the of rates Where where a into. up Rico. not great We’re I’m break do and little has a Chicago have of a cogeneration year. there for rebate,

other geographies good in potentials. are that savings country there the So, have

spreading yet at if the you generally payment the is you typical they solar more example, projects like on right, mechanism than the And for the years, then way this customer XX, time. the if look still done. to at also solar industry, is – And are for provide they look over financing – the of right system because or found to a that pay for a payback over savings essentially part XX

year savings some it getting they’re as saving. a So though even not may every large be

what easily we’re way pay a right which lot some for So put up for is as doing customer a to we together now the that’s partners see also a well, can these with open working more – doors. how systems to more of our might

the to power. there having that the chiller a That where value. long source there of like I or say but piece from lot dual areas huge just savings, the last ability are are provide And as then is savings driven, a having adds the with there’s backup as lot will some still of a hybrid benefit is a either resiliently

the significant happen. of like it what that industrial really applications are some standpoint some power to say, not savings, are process from the the applications making driver of cooling approaching also having some value backup where or deal on some pure adds these we’re So,

recent What Texas and that hospitals those to along good everything, and to constant end lines? in guess, that have they me marketing seem and and doing are experience power it the a me Given opportunity. users to massive flow systems had outages would efforts would place, of have schools that be I backup to then seem other, in where need you

of terms haven’t reach hospital, a more much do exactly we lot to We But over broadly now. yet. schools mean geography, in I done have the Texas a terms just right of there, just marketing as quite That’s in don’t right? that we right.

lot through – projects. lot done the through Some done hospital are reps, lot are because projects school projects the manufacturers of of the a is community. done are those of engineering that a the of build-type And a

the we’ve So, hybrid months what we’ve in been over out been technology, going engine resiliency power can back that two the benefits gets run few as fact and you showing doing that’s part the having the sources up. grid electric of have we switch, of the and last cleaner, the benefits – just and as work that always on – really it particular, and keep is the by you there

to really, when schools it of we’re the larger And what and – hospitals as the of to there they’re is resiliency kind contracts to doing performance as ESCOs and really well for the trying go to some and all as because broader the do comes these hospitals. again, well the schools that show saving the opportunities also the as benefit gatekeeper benefits

with section. that our approach that’s So,

Canada? And had the follow-up, success in then on in the past final we’ve operations what’s as Canada, or marketing status some a in

Canada its and as regions lot rates the we favorable really a in utility it. own, been thing have the contractors like of there – the So they that couple to hydropower. of or outlook Canada. a a rebates aren’t lot little to we’ve support mechanical have bit of cogen that a Ontario of a with has there On as in was was period continue well both in that The a with where those done relationship big to high,

much cleaner tends to a it grid. be So,

investment the because it’s don’t it’s So, believe it I’m on term. Canada, in right, of advantage the projects. to we U.S. short of a take where least I company, – turn a And I a like at into strong Tecogen short there’s a in market credit needs focusing in for we’re while not of just lot lot as tax the And from there opportunity in energy U.S. term, is there the enough the and believe much process us harder. the sale

indoor the it And we these pursue. would to given California growing? facilities. And seem would technology for outside that companies market have me a out cannabis available, us then that Plenty of doing to what are There we that it indoor like are are with be high-rise with logical in growing building

Yes.

again, that’s, question. So a great

crops. focused release ago DTx have – on the put that is food large noncannabis. indoor whatever we done just trade show So, three month we on a press That ag we did The really out was that the that or chillers, food was crops.

and per built non-cannabis that supplying actually to growth sites. lot products is larger ancillary noncannabis isn’t there entities to companies. We some build relationships that of the The these And with space much cooling a these working now we’re tends the foot. that have try happen with are relationships in to as problem square also of

of hybrid market, So, what – of that for But good are a capital is a a that aren’t. and the really very, we’re these bunch fit that’s there’s lot constrained, that pushing. some them chiller very

it’s opportunity mixed a to the getting So is as not in that pursue. right it of opportunity there. bag to big built it in as be terms We’ve seems a lot of cannabis, an relationships an continuing quite – but we’re

We’re projects. I it’s just as starting to big so but as cannabis. we’ve definitely mentioned, there’s see some, not right, And there, quite opportunity as closed

Thank forward improvement continuing four to you quarters. in your answers. or next I look three for the

support and you for of your you, long-term Thank Tecogen. thank Mike,

us and Ladies you for We the and like end the participation in that session. would gentlemen, thank your interest of brings question-and-answer to Tecogen. to

and day. or You of enjoy your log the webcast the your at may rest disconnect time, lines off this