NEW YORK, May 31, 2023 (GLOBE NEWSWIRE) — This management’s discussion and analysis (MD&A) includes information that will help you understand management’s perspective on the Outlook for 2023 for Balincan USA Inc (BCNN) and its subsidiary Tekumo LLC (the “Company”).
We expect that the revenue generated over the next 12 months from our recent customer announcements will exceed more than $6 million.
As you review this MD&A, we encourage you to read our interim financial statements and notes for the quarter ended March 31, 2023, our consolidated financial statements and notes for the year ended December 31, 2022, and our Letter to Shareholders dated May 9, 2023 (all filed with OTC Markets).
Caution about forward-looking information
This MD&A includes statements and information about our expectations for the future. When we discuss our strategy, plans, future financial and operating performance, or other things that have not yet taken place, we are making statements considered to be forward-looking statements under United States (US) securities laws. Please see the disclosure relative to forward-looking statements at the base of this discussion.
CORPORATE OVERVIEW
The Company offers a service delivery platform that solves the “last-mile” of installing, monitoring, and maintaining technology systems and smart connected devices.
We play at the intersection of two major trends: the “Uber-ization” of product and service delivery, and the explosion of smart connected devices brought about by the “Internet of Things” (IoT). Our Service Delivery platform was designed to intelligently automate the installation and maintenance of products by offering On-Demand local technician resources, as well as providing a “smart interface” for the monitoring and management of connected devices.
This service platform caters for a broad range of technologies from POS systems, kiosks, digital menu boards, cameras, cabling, Wi-Fi and networking, to water and energy management, lighting and HVAC control, smart homes devices, wearable sensors, and access control.
Our platform results in “less people, less time and less cost” for our customers.
HISTORY & OUTLOOK
Tekumo started its journey as a small IT managed services company while we developed our Service Delivery Platform, recording service revenue of $2+ million in 2022 and 2021. We pivoted away from that managed service orientation to our real “soul” as a software-based solution at the end of 2022, having invested over $3 million in completing the Platform.
We have recently announced anchor customers in multiple industry segments.
We expect that the revenue generated over the next 12 months from these announcements will exceed more than three times our previous annual revenue and will grow.
IT and Retail Services:
Most of our historical revenue has come from this segment. We have completed projects for such companies as Target, Home Depot, McDonalds, US Bank, 7Eleven, and AT&T. Our median work order is $250 for a 2.65-hour engagement.
- Our partnership with the largest third-party Managed Services provider to the Retail Industry offers the largest immediate revenue upside. They presently complete more than 2000 work orders per month ($5 million annually).
- We also added a partner in digital signage with OnPremise. They are part of a larger corporate group that has five divisions and earns more than $5 million in annualized revenue.
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Two prominent Quick Service Restaurant chains have ongoing projects across 700+ locations that have begun work with us through a prominent Japanese technology partner.
Smart Homes/Buildings:
The Smart Home Industry is already large and is expected to grow quickly. We have installed smart door locks, smart switches, access control, smart thermostats, and water leak sensors at an average per unit revenue of $200-250.
- Our partnership with the leading Smart Home Technology Company for the rental housing industry opens significant doors. One of our first projects is for 5000 units in the South and Southwest. This represents approximately $1.25 million in potential revenue and is only part of their tens of thousands in deployments.
- Water and energy conservation play a critically important role in managing operating budgets for facility managers. We have recently completed our first site surveys on properties in Miami, Detroit and New York. Our current pipeline of properties covers more than 100,000 units.
Hospitality:
Regulations to protect employees and guests in hotels are changing rapidly. We…
Read More: Management Discussion and Analysis – Outlook 2023