This is another positive development for Dais. The company in the last week has announced:
• ARPA-E grant monies received for further development of Nano-Air application, a water-based air conditioning system which promises to reduce energy consumption for HVACs and to reduce emissions in the process (no Freon).
• Achieves Chinese Certification for its ConsERV energy recovery ventilator. The implications are substantial for sales into the Chinese markets, which are characterized by accelerated urbanization, which is driving total building energy consumption in China. The increase in the number of new construction projects in cities and towns every year has led to faster growth in energy consumption. With improved living standards, household appliances increased significantly, which led to rapid growth in energy consumption of unit building areas. Moreover, indoor comfort requirements of residents also contribute to an increase in energy consumption. China's per capita energy consumption rose from 0.5 tons of standard coal of 1978 to 2 tons of standard coal of 2007, which is still less than in Western countries.
This morning’s announcement is important because it further validates the leverage in Dais’ platform technology, which is the basis for applications in energy recovery, energy efficiency, water treatment and desalination and energy storage. Importantly, the management is keeping the company focused on the two commercial products to date, which are responsible for driving substantial revenue growth. The company’s strategy in developing the NanoCap application is to take advantage of grants and strategic partnerships like the University of Florida one announced this morning which will enable it to preserve existing cash and cashflow to further expand its market share with existing current commercial applications.
The company reiterated at a conference in NYC last week that, based on contracts in hand of more than $50 million, it is forecasting sales growth from about $1.5 million last year, to more than $5 million this year and more than $45 million next year. On a fully diluted basis, the market cap is about $23 million, representing about 0.5x forecasted FY11 sales and 3.9x forecasted FY11 EBITDA.
If you would like more information on Dais, please do not hesitate to contact us.
This press release calls it a "dehumidification system" --- maybe my concern is diminishing somewhat:
Form 8-K for DAIS ANALYTIC CORP
Item 8.01. Other Events On September 17, 2010, the U.S. Department of Energy approved a grant of up to $681,322 to Dais Analytic Corporation (the "Company") for the funding of a project to scale up in size and field trial a novel dehumidification system similar to the Company's NanoAir protoype, that is operated by directly manipulating water vapor using a selectively permeable membrane made of a nano-structure solid polymer. The grant is conditioned upon the Company contributing $171,500 of the proposed total project cost of $852,822. The Company will receive the grant amount in phases upon the meeting of certain milestones.