Trutankless Revenue Rebounds to $242K, Eyes Smart Home Integration

TL;DR

**TKLS is a speculative buy, betting on a smart home rebound and a niche electric tankless market recovery after a significant revenue jump.**

AI Summary

Trutankless, Inc. (TKLS) reported a significant increase in revenue for the fiscal year ended December 31, 2024, reaching $242,350, a substantial rebound from the $3,549 generated in 2023. This marks a recovery after a period of declining revenues from a peak of $1,908,708 in 2019. The company, headquartered in Scottsdale, Arizona, focuses on the research, development, sales, and marketing of smart electric tankless water heaters, with plans to launch a second generation featuring Bluetooth and Zigbee capabilities and a proprietary app for home automation. TKLS aims to capitalize on the growing electric tankless market, particularly in the U.S. residential sector, by offering energy-efficient products that integrate with smart home systems. Key risks include the inability to raise additional financing for working capital and the challenge of converting traditional tank water heater buyers to tankless systems, despite the company's belief in superior performance and lower life-cycle costs. The strategic outlook involves expanding its wholesale distribution network and introducing new products that leverage AI for water and energy consumption reduction, targeting the repair/replacement, new construction, multifamily, and commercial markets.

Why It Matters

Trutankless's revenue rebound to $242,350 in 2024 from a mere $3,549 in 2023 signals a potential turning point for this niche player in the water heater market. For investors, this recovery, coupled with plans for smart home integration and AI-powered products, could indicate renewed growth potential in a competitive landscape dominated by larger tank and gas tankless manufacturers. Employees and customers could benefit from a more stable company with innovative products, while the broader market sees continued evolution in energy-efficient home appliances. The company's focus on electric tankless heaters positions it to compete against established gas tankless brands by offering installation flexibility and smart features.

Risk Assessment

Risk Level: high — The company's revenue, while rebounding to $242,350 in 2024, is still significantly lower than its 2019 peak of $1,908,708, indicating volatile financial performance. The filing explicitly states risks such as 'inability to raise additional financing for working capital' and the challenge of converting traditional tank water heater buyers, suggesting ongoing financial and market penetration hurdles.

Analyst Insight

Investors should approach TKLS with caution, recognizing its high-risk profile despite the recent revenue increase. Monitor future quarterly reports for sustained revenue growth and evidence of successful product launches and market penetration, particularly regarding the planned second-generation smart water heaters and app integration.

Financial Highlights

revenue

$242,350

revenue Growth

+6770%

Revenue Breakdown

Key Numbers

• $242,350 — Revenue for fiscal year ended December 31, 2024 (Significant rebound from $3,549 in 2023)
• $3,549 — Revenue for fiscal year ended December 31, 2023 (Previous year's revenue, indicating a low base for 2024's growth)
• $1,908,708 — Revenue for fiscal year ended December 31, 2019 (Peak revenue before subsequent declines)
• $2,076,375 — Aggregate market value of non-affiliate shares (As of the last business day of the most recently completed second fiscal quarter)
• 131,523,178 — Shares of Common Stock outstanding (As of August 27, 2025)
• 95% — Percentage of sales to wholesale plumbing distributors (Indicates primary sales channel for commercial and residential applications)
• 34 — Number of claims in granted patent for tankless water heater (Reflects intellectual property protection)
• 14 — Number of claims in granted patent for proprietary flowmeter design (Reflects intellectual property protection)
• $46.22 Billion — Estimated worldwide home automation market by 2025 (Target market for Trutankless's smart products)
• 36% — U.S. share of global home automation demand (Highlights the importance of the U.S. market for Trutankless)

Key Players & Entities

• Trutankless, Inc. (company) — registrant
• Bollente, Inc. (company) — wholly owned subsidiary
• Tankless365, Inc. (company) — wholly owned subsidiary
• Ferguson (company) — wholesale plumbing distributor
• Hajoca (company) — wholesale plumbing distributor
• WinSupply (company) — wholesale plumbing distributor
• Morrison Supply (company) — wholesale plumbing distributor
• National Association of Home Builders (NAHB) (company) — award giver
• Consumer Reports Magazine (company) — featured Trutankless
• US Patent and Trademark Office (regulator) — patent filing authority

FAQ

Risk Factors

• Inability to Raise Additional Financing [high — financial]: The company may be unable to secure additional financing necessary for working capital. This is a critical risk given the company's revenue trajectory and the need for ongoing investment in R&D and market expansion.
• Converting Traditional Water Heater Buyers [high — market]: A significant challenge is converting consumers accustomed to traditional tank water heaters to tankless systems. Despite Trutankless's belief in superior performance and lower life-cycle costs, market inertia is a substantial hurdle.
• Product Development and Launch Risks [medium — operational]: The company plans to launch a second generation of water heaters with advanced features like Bluetooth and Zigbee, along with a proprietary app. Delays or issues in development, manufacturing, or market adoption of these new products could negatively impact revenue and growth.
• Competition in Smart Home Market [medium — market]: The home automation market is estimated to reach $46.22 Billion by 2025, but it is also competitive. Trutankless's success depends on its ability to differentiate its smart water heaters and integrate effectively into existing smart home ecosystems.
• Energy Efficiency and Safety Standards [low — regulatory]: As an electric tankless water heater manufacturer, Trutankless must comply with evolving energy efficiency standards and safety regulations. Non-compliance or changes in regulations could impact product design, manufacturing costs, and market access.

Industry Context

Trutankless operates in the growing market for electric tankless water heaters and smart home devices. The company aims to capitalize on the shift towards electric and energy-efficient appliances, particularly in the U.S. residential sector. Key competitors include manufacturers of both traditional tank water heaters and other electric tankless models, as well as broader smart home technology providers.

Regulatory Implications

The company must adhere to evolving energy efficiency standards and safety regulations for water heaters. Compliance is crucial for product marketability and avoiding potential penalties. The trend towards cleaner energy alternatives may also favor electric tankless solutions.

What Investors Should Do

1. Monitor financing activities closely.
2. Track adoption of new product generations.
3. Evaluate market penetration in the U.S. residential sector.
4. Assess competitive landscape in smart home integration.

Key Dates

• 2019-12-31: Peak Revenue Achieved — Represents the highest revenue point ($1,908,708) before a period of decline, providing a benchmark for future growth.
• 2023-12-31: Revenue at Low Point — Revenue was $3,549, indicating a challenging period and setting a low base for subsequent recovery.
• 2024-12-31: Significant Revenue Rebound — Revenue reached $242,350, a substantial increase from the previous year, signaling a potential turnaround.
• 2025-08-27: Shares Outstanding Recorded — 131,523,178 shares of Common Stock were outstanding, providing a basis for per-share calculations and market capitalization.

Glossary

Smart Electric Tankless Water Heater

A water heating device that heats water on demand using electricity, without a storage tank, and incorporates smart technology for control and efficiency. (This is Trutankless's core product, central to its business strategy and market positioning.)

Home Automation

The integration of technology into a home to control and automate various systems, such as lighting, heating, security, and appliances, often via a central app or system. (Trutankless aims to integrate its products into this growing market, leveraging trends for efficiency and lifestyle improvements.)

Bluetooth and Zigbee

Wireless communication protocols used for short-range data exchange, commonly employed in smart home devices for connectivity and interoperability. (These are key features planned for Trutankless's second-generation products, enhancing their smart capabilities.)

Proprietary App

A software application developed and owned by a specific company, designed to interact with its products or services. (Trutankless's planned app will be crucial for user interaction and integration with other smart home products.)

Wholesale Plumbing Distributors

Businesses that purchase plumbing supplies in bulk from manufacturers and sell them to retailers or contractors. (This is Trutankless's primary sales channel, accounting for 95% of its sales, highlighting its importance for market reach.)

Year-Over-Year Comparison

Revenue has seen a dramatic increase, jumping from $3,549 in the prior year to $242,350 for the fiscal year ended December 31, 2024, a significant rebound. This suggests a positive shift in market reception or sales strategy. No specific changes in margin or net income figures are available from the provided context to compare against the previous filing, nor are new financial risks explicitly detailed beyond the general categories mentioned.

Key Financial Figures

• $0.001 — Section 12(g) of the Act: Common Stock, $0.001 par value Indicate by check mark if t
• $46.22 Billion — tion space, which is estimated to reach $46.22 Billion worldwide by 2025, have been driven by
• $238,912 — r ended December 31, 2014, we generated $238,912 in revenue. As of the fiscal year ended
• $265,504 — r ended December 31, 2015, we generated $265,504 in revenue. As of the fiscal year ended
• $429,582 — r ended December 31, 2016, we generated $429,582 in revenue. As of the fiscal year ended
• $695,857 — r ended December 31, 2017, we generated $695,857 in revenue. As of the fiscal year ended
• $1,537,958 — r ended December 31, 2018, we generated $1,537,958 in revenue. As of the fiscal year ended
• $1,908,708 — r ended December 31, 2019, we generated $1,908,708. As of December 31, 2020, we generated
• $1,661,278 — . As of December 31, 2020, we generated $1,661,278. As of December 31, 2021, we generated
• $246,032 — . As of December 31, 2021, we generated $246,032. As of December 31, 2022, we generated
• $73,009 — . As of December 31, 2022, we generated $73,009 in revenue. As of December 31, 2023, we
• $3,549 — . As of December 31, 2023, we generated $3,549 in revenue. As of December 31, 2024, we
• $242,350 — . As of December 31, 2024, we generated $242,350 in revenue. In July of 2014, we launch
• $4 Billion — ment market estimated to be larger than $4 Billion nationwide. To our knowledge, no electr

Filing Documents

• tkls_10k.htm (10-K) — 1109KB
• tkls_ex311.htm (EX-31.1) — 10KB
• tkls_ex321.htm (EX-32.1) — 4KB
• tkls_10kimg7.jpg (GRAPHIC) — 7KB
• tkls_10kimg6.jpg (GRAPHIC) — 14KB
• tkls_10kimg5.jpg (GRAPHIC) — 3KB
• 0001477932-25-006336.txt ( ) — 5589KB
• tkls-20241231.xsd (EX-101.SCH) — 72KB
• tkls-20241231_lab.xml (EX-101.LAB) — 360KB
• tkls-20241231_cal.xml (EX-101.CAL) — 54KB
• tkls-20241231_pre.xml (EX-101.PRE) — 288KB
• tkls-20241231_def.xml (EX-101.DEF) — 167KB
• tkls_10k_htm.xml (XML) — 757KB

BUSINESS

ITEM 1. BUSINESS 4

RISK FACTORS

ITEM 1A. RISK FACTORS 10

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 13

CYBERSECURITY

ITEM 1C. CYBERSECURITY 13

PROPERTIES

ITEM 2. PROPERTIES 14

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 14

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 14 PART II

MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASE OF EQUITY SECURITIES

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASE OF EQUITY SECURITIES 15

SELECTED FINANCIAL DATA

ITEM 6. SELECTED FINANCIAL DATA 17

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 17

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 20

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 20

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 20

(T) CONTROLS AND PROCEDURES

ITEM 9A (T) CONTROLS AND PROCEDURES 20

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 21

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 21 PART III

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 22

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 24

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 25

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 27

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 29

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 30

SIGNATURES

SIGNATURES 31 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements and involves risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows, and business prospects. These statements include, among other things, statements regarding: our ability to diversify our operations; inability to raise additional financing for working capital; the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain; our ability to attract key personnel; our ability to operate profitably; deterioration in general or regional economic conditions; adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; the inability of management to effectively implement our strategies and business plan; inability to achieve future sales levels or other operating results; the unavailability of funds for capital expenditures; other risks and uncertainties detailed in this report; as well as other statements regarding our future operations, financial condition and prospects, and business strategies. Forward-looking statements may appear throughout this report, including without limitation, the following sections: Item 1 "Business," Item 1A "Risk Factors," and Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements are based on c

BUSINESS

ITEM 1. BUSINESS Trutankless, Inc. was incorporated in the state of Nevada on March 7, 2008. The Company is headquartered in Scottsdale, Arizona and currently operates through its wholly owned subsidiaries, Bollente, Inc., a Nevada corporation incorporated on December 3, 2009 and Tankless365, Inc., a Nevada corporation incorporated on October 20, 2021. Trutankless is involved in research and development, sales, marketing, of a high quality, whole-house, smart electric tankless water heater that is more energy efficient than conventional products. Management anticipates the Company's second generation of Trutankless water heaters, with Bluetooth, and Zigbee capability. Trutankless' proprietary app is expected to launch into the iOS and Android store and will augment other products in the home automation space. Overview of Potential Markets and Summary of Marketing Plan Management intends to focus on the United States residential market initially. For decades Americans have used only tank type water heaters, however the market is increasingly towards alternatives like tankless water heaters. Many brands are powered by natural gas, while several others use electricity. Almost half of American homes do not have natural gas available and there has been a trend in many markets towards renewable and cleaner energy alternatives to provide the energy to operate water heaters for the residential and commercial markets in North America. The company's focus markets favor electric water heaters, of which electric tankless have additional benefits over gas powered models because they can be installed almost anywhere in a home (closets, attics, utility rooms, etc.) where hot water is needed. The lack of exhaust, noise, and a need for combustible fuel improves flexibility of floor plan design for builders, architects, and remodelers. In addition, gas tankless water heaters may not be suitable for many applications due to challenges with adequate fuel supply, the need for exh

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