During the corresponding time, Enerpulse Technologies, Inc. recorded a revenue increase by 17.47 % year on year, sequentially revenue fell by -34.52 %. While revenue at the Enerpulse Technologies, Inc.'s corporate clients
Enerpulse Technologies's Comment on Sales, Marketing and Customers
Natural Gas Markets (Stationary and Vehicular)
We have entered into an exclusive marketing agreement with Freepoint to market,
sell and distribute our n-PAC® plugs to clients that use stationary natural
gas IC engines in North America. Potential clients include natural gas gatherers,
processors, pipeline operators and producers, as well as electric power generators.
Freepoint is a large and well-established player in the energy sector with strong
connections to related engine owners/operators. In consideration for the exclusive
distribution agreement, Freepoint invested $1.75 million in a convertible promissory
note, which was converted into 686,275 shares of common stock on September 5,
2013.
In addition, in June 2015, we signed a separate non-exclusive distributor agreement
with Hatraco for the European market. Under the terms of the agreements, the exclusivity
covers the vehicular alternative fuel market for a period of five years in the
North America and Caribbean markets for Green Bridge, and the European Union markets
for International Group, which is subject to minimum purchase quantities to maintain
exclusivity.
We commenced sales in the natural gas industrial engine segment in 2015, but believe
will build momentum with large operators in North America and Europe during 2016
as successful trials of our n-PAC® technology by engine operators, engine
service organizations and engine OEMs gains traction, but there is no guarantee
that this will occur. No intermediate distribution channel is required to support
this market.
Automotive OEM Market
We are actively pursuing sales to automotive OEMs and believe that revenues will
begin in this market in the second half of 2017. We believe this timeline reflects
a normal adoption cycle for new technology integration with automotive OEMs.
Our marketing strategy is to provide global OEMs with compelling third party independent
test data that demonstrates the functionality and benefits of n-PAC® technology.
This will lead to continued expansion of our direct testing programs with automotive
OEMs on specific engine platforms, building confidence in the efficacy of n-PAC®
technology. Direct OEM test programs are already underway at five global automotive
OEMs. We believe that capturing one major automotive OEM engine platform will
led to rapid adoption by other automotive and/or vehicular natural gas engine
OEMs.
No intermediate distribution channel is required to support this market.
Automotive and Power Sports Aftermarkets
Our primary source of revenue is from automotive and power sports aftermarket
sales. This is spread across a dozen major retailers with the “big boxes”
accounting for a significant portion of our revenue, but it is the consumer that
pulls through the sales based on word of mouth and advertising, therefore a significant
amount of our revenues could come from many distribution points in these two markets.
We are currently selling our Pulstar® branded PlasmaCore® Spark plugs
in the “Plug-and-Play” automotive and power sports vehicles aftermarkets
through a variety of channels. Pulstar ® plugs are available nationally at
retailers Advance Auto Parts, O’Reilly Auto Parts, Jegs, CarId.com, Amazon.com,
USAutopart.com, Autoanything.com and SparkPlugs.com. They are also available at
specialty retailers that cater to the power sports vehicles market such as, J&P
Cycle, Custom Chrome, and Tucker Rocky. In addition, we have established an online
presence using Facebook, banner ads, postings and landing pages to market the
Pulstar PlasmCore® brand. To date, our sales into the aftermarket segment
have been somewhat limited as we compete with much better capitalized spark plug
companies for shelf and stocking space, as well as limitations we face in funding
for aggressive sales and marketing.
Enerpulse Technologies’s Comment on Sales, Marketing and Customers
Natural Gas Markets (Stationary and Vehicular)
We have entered into an exclusive marketing agreement with Freepoint to market,
sell and distribute our n-PAC® plugs to clients that use stationary natural
gas IC engines in North America. Potential clients include natural gas gatherers,
processors, pipeline operators and producers, as well as electric power generators.
Freepoint is a large and well-established player in the energy sector with strong
connections to related engine owners/operators. In consideration for the exclusive
distribution agreement, Freepoint invested $1.75 million in a convertible promissory
note, which was converted into 686,275 shares of common stock on September 5,
2013.
In addition, in June 2015, we signed a separate non-exclusive distributor agreement
with Hatraco for the European market. Under the terms of the agreements, the exclusivity
covers the vehicular alternative fuel market for a period of five years in the
North America and Caribbean markets for Green Bridge, and the European Union markets
for International Group, which is subject to minimum purchase quantities to maintain
exclusivity.
We commenced sales in the natural gas industrial engine segment in 2015, but believe
will build momentum with large operators in North America and Europe during 2016
as successful trials of our n-PAC® technology by engine operators, engine
service organizations and engine OEMs gains traction, but there is no guarantee
that this will occur. No intermediate distribution channel is required to support
this market.
Automotive OEM Market
We are actively pursuing sales to automotive OEMs and believe that revenues will
begin in this market in the second half of 2017. We believe this timeline reflects
a normal adoption cycle for new technology integration with automotive OEMs.
Our marketing strategy is to provide global OEMs with compelling third party independent
test data that demonstrates the functionality and benefits of n-PAC® technology.
This will lead to continued expansion of our direct testing programs with automotive
OEMs on specific engine platforms, building confidence in the efficacy of n-PAC®
technology. Direct OEM test programs are already underway at five global automotive
OEMs. We believe that capturing one major automotive OEM engine platform will
led to rapid adoption by other automotive and/or vehicular natural gas engine
OEMs.
No intermediate distribution channel is required to support this market.
Automotive and Power Sports Aftermarkets
Our primary source of revenue is from automotive and power sports aftermarket
sales. This is spread across a dozen major retailers with the “big boxes”
accounting for a significant portion of our revenue, but it is the consumer that
pulls through the sales based on word of mouth and advertising, therefore a significant
amount of our revenues could come from many distribution points in these two markets.
We are currently selling our Pulstar® branded PlasmaCore® Spark plugs
in the “Plug-and-Play” automotive and power sports vehicles aftermarkets
through a variety of channels. Pulstar ® plugs are available nationally at
retailers Advance Auto Parts, O’Reilly Auto Parts, Jegs, CarId.com, Amazon.com,
USAutopart.com, Autoanything.com and SparkPlugs.com. They are also available at
specialty retailers that cater to the power sports vehicles market such as, J&P
Cycle, Custom Chrome, and Tucker Rocky. In addition, we have established an online
presence using Facebook, banner ads, postings and landing pages to market the
Pulstar PlasmCore® brand. To date, our sales into the aftermarket segment
have been somewhat limited as we compete with much better capitalized spark plug
companies for shelf and stocking space, as well as limitations we face in funding
for aggressive sales and marketing.
Sources:
Enerpulse Technologies, Inc.’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: Enerpulse Technologies, Inc.’s corporate clients.
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