They say innovation produces more revenue. That is certainly true for Dalrada Corporation, a global company with innovation baked in its DNA.
The group specializes in high-growth businesses in three verticals – healthcare, clean energy, and information technology. Dalrada’s shares have gained 212% over the last three months, reflecting impactful innovations in all three segments.
For the fiscal first quarter ended September 30, 2021, the San Diego, California-based group reported revenue of $4.6 million, up 506% from $759,393 in the same quarter in 2020.
“Dalrada is an innovation company, accelerating growth through Dalrada Health, Dalrada Precision, and Dalrada Technologies in three very fast-growing markets,” Dalrada founder CEO Brian Bonar told Proactive.
Bonar, who is also the group's chairman, has a long track record of success, turning startups into great businesses through strategic acquisitions and innovation. He is the founder of Bezier Systems and American Management Services LLC; has headed nine different companies; and has 18 years of experience with IBM in Europe, Asia, and the United States.
See a problem, sell a solution
As an engineer turned CEO, Bonar is a natural problem solver with a knack for identifying opportunities in challenges.
“Maybe this comes from being in the industry for 30 years,” quipped Bonar.
The CEO’s problem-solving mindset permeates the company and can be seen at work in Likido Energy, a wholly-owned subsidiary of Dalrada Precision, which provides clean energy solutions.
“How to reduce greenhouse gas emissions to a level of neutrality by 2050 is on everyone’s minds. So, to help solve the problem, Likido Energy solutions are enabling the transition to renewable energy sources for heating and cooling applications,” Bonar noted.
Take the company’s flagship product, the LikidoONE heat pump, which offers an innovative solution by having a low carbon all-in-one heating and cooling pump design. This breakthrough technology has the potential to generate transformational energy savings for hotels, data centers, food production, pharmaceutical, and chemical industries.
The beauty of the LikidoONE system is that it operates in a combined heating and cooling mode producing 160 kilowatts (kW) of high-grade heat, while it extracts 120kW of cooling, providing efficiencies up to 800%, according to the company.
“Deploying LikidoONE, a combined heating, and cooling unit can save hotel owners the cost of total energy consumption of hot water, hot air, and cooling systems while reducing carbon emissions,” pointed out Bonar.
In a nutshell, the heater/chiller units provide simultaneous heating and cooling, without burning fossil fuels. LikidoONE is environment-friendly as opposed to the standard way heating and cooling works in hotels that rely on hot water boilers coupled with environmentally damaging HFC-based conventional chillers.
Solution for power-hungry data centers
The US could also look to Likido’s technology to help cut the cost of cooling data centers housing powerful computers and servers, and also to reduce consumption of traditional energy sources in a sector known for its high electricity needs. America is now the second-biggest mining destination in the world with 17% of the world’s bitcoin miners, according to data from Cambridge University.
“Bitcoin miners have built these huge data centers fitted with server racks and they are consuming tons of energy to cool their computer networks,” said Bonar. “In 2022, Likido will expand into offering a complete solution for data centers, whether they are for bitcoin mining, or other data infrastructure purposes. We’ll go to the data center people with a total bundle solution and say, ‘Look we can solve your issues.’ Likido products can also take care of power efficiency and emissions issues for other US industries – that's where we are going to see the growth.”
Meanwhile, Dalrada has started developing LikidoHOME, an energy-efficient home water heater. The LikidoHOME improves energy efficiencies by 300% with its high-temperature supercritical carbon dioxide (CO₂) micro heat pump. It also dramatically reduces carbon emissions and saves consumers up to 80% on energy.
More significantly, LikidoHOME has the potential to replace the world’s gas-fired and electric water heaters. The group’s initial focus is on the UK, Scotland, European Union, and US markets. In the UK, gas boiler water heaters are to be banned by 2025 in newly built homes. By 2035, fossil fuel-burning boiler water heaters will be phased out.
Clearly, Likido’s range of energy-efficiency products – LikidoONE which recycles waste energy for heating and cooling; LikidoCRYO for extraction, chilling, storage, and distribution of biomaterials and vaccines; LikidoVOLT power generators, and LikidoHOME water heaters – are likely to be the biggest value driver for Dalrada over the next two years.
“The demand for the LikidoONE and CRYO chillers is unbelievably high,” said Bonar, who plans to license the firm’s technology to manufacturers to boost production.
Dalrada Health in expansion mode
With the meteoric growth of Dalrada’s healthcare division, Bonar has recently appointed company director Harvey Hershkowitz as president of subsidiary Dalrada Health to drive “execution and results.”
“With more than 10 products and services, Dalrada Health serves the top growing industries,” Hershkowitz said in a statement.
The company’s crown jewel asset has several revenue-making business segments — Empower Genomics, Pala Diagnostics, GlanHealth, cerVIA, International Health Group (IHG), and Sòlas Rejuvenation + Wellness. The company has expanded GlanHealth’s alcohol-free sanitizing line to include hand sanitizers, surface cleaners, electrostatic sprayers, and bulk sanitizers.
In addition, Dalrada now offers onsite coronavirus (COVID-19) testing. “In today’s society, if it’s not COVID 19, it's going to be COVID-21 — there's always going to be something. The demand for testing labs is rocketing,” said Bonar. “We have a very compelling story with the science group and Dalrada Health products.”
Meanwhile, Dalrada Health’s new acquisition International Health Group (IHG) has ramped up its certified nursing and medical assistant education programs. The healthcare training and certification company has graduated and placed nearly 7,000 students since 2006.
“We are expanding IHG to match the high demand for certified nurse assistants and medical assistants within the healthcare industry. Internally, Dalrada Health will never face shortages for trained medical professionals for its labs and clinics since we have IHG,” said Bonar.
Sòlas Rejuvenation takes off
In November, Dalrada Health announced the opening of two new Sòlas Rejuvenation and Empower Genomics' advanced testing labs on the US West Coast. The company’s flagship Sòlas clinic and therapy center is in a 56,510 square foot medical center in Poway, California.
Sòlas provides a range of services including aesthetics, regenerative therapy, hormone re-balancing, and health and wellness services. It also provides a suite of customizable programs that include nutrition/fitness analysis and DNA testing. Earlier this year, Empower Genomics launched a suite of genomics tests that help individuals with reaching optimal health. It has tests on Pharmacogenomics (PGx), Cannabis DNA, nutrition and diet, and exercise and fitness to help individuals boost overall well-being.
“I see Sòlas Rejuvenation expanding dramatically — we may have 20 by the end of 2022,” said Bonar. “The goal is to open three in California, then move to neighboring Arizona and expand through the US.”
Meanwhile, Dalrada Health’s affordable cerVIA screening kits in primary healthcare clinics are used for the early detection of cervical cancer. “Early detection of cervical cancer can save countless lives around the world,” said Bonar.
Prakat: a revenue-spinner
Dalrada’s tech division – Prakat Solutions – is the proverbial golden goose. It grew topline revenue in the fiscal first quarter with “new wins” in supply chain management, software engineering, and business solutions, according to the company.
Prakat has over 250 software engineers in the US and India.
“Nearly 70% of Prakat’s staff is working for other companies, while 30% support Dalrada’s own internal needs and external customer projects,” said Bonar. “Prakat is growing dramatically. When we acquired Prakat it was doing less than a million a year, but it’s on track now to do at least $2 million a year in revenue. By the end of the fiscal year in June next year Prakat will probably hit a $3 million a year run rate. It’s an exciting time for Darada.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive