It takes years to complete research and development, finalize products and bring them to commercialization, but what can seem like decades sometimes is waiting for revenue to start filling the balance sheet from sales of that product. Back in 2007, Nuvolt Corporation Inc. (TSX-Venture:NCO) went public through a reverse takeover of Norco Capital Inc.
Focused on electricity, Nuvolt and its wholly-owned subsidiary, Agrivolt, manufacture and sell the "Potential Equalizer System" and the "Agrivolt Noise Filters." During the last three years, Nuvolt has also been channeling its time and money into developing a revolutionary product capable of predicting an electrical failure on a network or a piece of equipment.
Marketed under the name "SmartScan," the technology won the Laureate in the category "Telecommunications & New Technology" at the 2010 Leonards, an annual event related to the Grand Prizes of the Quebec Engineering Consultants Association "Grand Prix du Génie Conseil Québécois."
Nuvolt has slowly begun marketing efforts of SmartScan by targeting the agriculture industry due to the high amounts of production and/or property that is lost or damaged as a result of power failures. Moreover, "Electrical failures originating from production equipment and the electrical network are the major causes of fire in livestock farms," according to Mario Dumas, principal vice-president, operation at Nuvolt.
Nuvolt signed a collaboration agreement in 2010 with Optimum Assurance Agricole, a leader in insurance catering specifically to the needs of farmers. Optimum is a member of Optimum Group, a Canadian-owned private financial group active in property and casualty insurance, life insurance, life reinsurance, actuarial consulting and asset management, with operations in Canada, the U.S. and France.
Today, Nuvolt reported strengthening its relationship with Optimum and potentially increasing its footprint (and revenue stream) through expanded marketing efforts of SmartScan.
Through the new promotional agreement, designated as the "Optimum/Agrivolt program for the SmartScan," Optimum will promote SmartScan as a preventative maintenance system against electrical failures in livestock farms.
Nuvolt anticipates that the new promotions will not only bolster sales in the Quebec region, but also outside of the province, which could be the segue that Nuvolt needs for a greater penetration of North American markets.
Given its basic functionality, SmartScan could be a viable product in a great many industries.
Nuvolt has plans for the SmartScan in the near term for a maritime variation as well as commercial and industrial applications. Shares of NCO have gimped along for more than a year, generally confined to a channel between five and 10 cents. Investors may start honing in on this relatively quiet firm as the Optimum/Agrivolt promotions take flight.
Optimum clearly has a large reach and can fill some needs in a cost effective manner for marketing SmartScan for Nuvolt which potentially could have a very positive impact on the financial records for Nuvolt in fiscal 2012. Proper due diligence is encouraged.
