C-Bond Systems (OTC: CBNT), founded in 2007, is a nanotechnology solutions firm focused at giving glass and other brittle materials better longevity by repairing cracks and chips. In an interview with AlphaStreet, the company’s CEO Scott Silverman explained how the company is set to impact the transportation and safety solutions markets in the next few years.
Why this company matters
C-Bond has intellectual property valued at $33.7 million, much higher than the current market valuation of $1.85 million. The company also has a strong portfolio, which includes NIJ (National Institute of Justice) certified bulletproof window solutions that are developed through Rice University in Houston.
The alarming number of recent shooting incidents in schools has apparently created a demand for such solutions in educational institutions. According to the CEO, the company’s Ballistic-Resistant System (BRS) solution has so far been installed in approximately 70 schools. While the management expects the number of school installations to increase to 100 to 150 by the end of this year, the COVID-crisis could set this back slightly.
Separately, over 50 government organizations and a few media outlets have also installed the window strengthening solution, which the company claims can withstand even shots fired from assault rifles.
On the transportation solutions side, C-Bond has NanoShield, which is used to strengthen and repair windshields, besides improving visibility. According to the company, the solution reduces glass costs by 84%. Silverman said:
“The cost of windshields is about four times higher than they were seven years ago. So obviously the insurance companies would want to motivate their insured motorists or the automotive manufacturers to include a strengthening agent such on the vehicle they insured. Once the insurers and automotive manufacturers want that, the OEM windshield manufacturers need to have the ability to strengthen their windshields right off of the manufacturing line.”
Though C-Bond is currently not selling to any OEM windshield manufacturers, about six of them have expressed interest in it.
Apart from these, the company is also the US distributor of MB-10 Tablets, which are used to disinfect automobiles from coronavirus SARS-CoV-2. C-Bond expects to see revenues from the tablets to grow to $10-20 million in the next two years.
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Margins and profitability
C-Bond enjoys rather strong margins with its own products. While the NanoShield and BRS generate gross margins in the 70-80% range, the reselling products come at a slightly lower range at close to 50%. The CEO said the company was originally targeting profitability in 2020, but with the Covid-19 crisis, it would get delayed further.
Given the nanotechnology firm is currently burning cash on a monthly basis, Silverman stated that he is looking to use the IP portfolio as collateral to fund the business. Separately, he added:
“We are looking for strategic investment alternatives for the company that do not include convertible notes, which is what I think is hurting our price per share today. The good news is we only have about $500,000 of convertible notes so we can work our way through that rather quickly.”
International operations
C-Bond serves international markets including Mexico, parts of Europe, the UAE, and India through distribution partners. Though the core IP products – NanoShield and BRS – are the primary distribution contributors, C-Bond has also been selling the disinfectant products over the last couple of months.
Silverman ended on the note that the company is working on private label deals as well to take NanoShield to more countries.
(Written by Arjun Vijay)
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