The Nexus eWater offering is now closed and is no longer accepting investments.

Nexus eWater

Home Water and Energy Recycling

Small OPO
San Diego, CA
Environment
Accepting International Investment
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Bring Water and Energy Recycling to the Home

Invest in Nexus eWater

Many of us forget how precious water is, especially those of us who are fortunate enough to live in countries where we can turn the faucet and watch it flow in seconds. 


In places like California, we tend to remember water’s value during droughts when the supply is more limited. But water in the Southwest will always be a scarce resource and should be managed as such.


Why do we flush toilets with pristine water from the Sierra Nevada? Why do we spend billions making drinkable water just to irrigate landscapes with it? How can we continue pouring water (and its embodied energy) down the drain?


Nexus eWater manages these scarce resources in a smarter way and we have already started making an impact in California.

Our mission is to lead an #OnsiteRevolution by developing and promoting appliances that manage water and energy where they’re used – in American homes and businesses.

With NEXtreater and NEXheater, in-home water and energy recycling appliances, we are closing the biggest remaining efficiency gap in modern buildings. Our focus is on grey water, wastewater from washing people and their clothes; We efficiently capture water and energy in residential and commercial buildings and allow them to be reused. 


Built on patented and patent-pending technologies, NEXtreater and NEXheater reduce potable water usage by as much as 50%, slash sewer flow by up to 70%, and reduce energy used for water heating by up to 80%. 


If you are passionate about the environment, water conservation and cutting-edge technologies we would love you to join our team as an investor.


Investment

$1.50/share of Series B-1 Preferred Stock | When you invest you are betting the company’s future value will exceed $21.60M.


Perks

We believe that you, as an astute investor, would like to see your money put toward the business. As a result, we’ve been careful about the perks we offer and tried carefully to evaluate the cost-benefit of each level. It’s the same motivation that caused us to issue preferred stock – you deserve to be treated as well as any venture capitalist who might invest at this stage of the business. With this in mind, we offer:


$1,000 — If you invest $1,000, you will receive a Nexus eWater t-shirt (less than 1% of your investment gets you a conversation starter and helps spread the word about onsite water and energy recycling) 


$2,500 — If you invest $2,500, you will receive a personalized invitation* to visit Nexus eWater for a factory and facility tour in San Diego, California 


$5,000 — If you invest $5,000, you will receive a personalized invitation* to join us at an industry trade show or event. Come see us in action and learn more about our industry and market opportunity! 


$25,000 — If you invest $25,000, you will receive a personalized invitation* to join our yearly networking event celebrating the latest achievements in onsite water and energy recycling!


*Note. Perks exclude all travel expenses.  All perks occur after the offering is completed.


For details on the bonus, please see the Offering Summary below.

A Simple Change, with Revolutionary Implications

At its core, our approach makes one small change in the way water is used in the home. We redirect the water used by showers, baths, washing machines and hand sinks so that it can be reused. By capturing this water, cleaning it with NEXtreater and recovering energy with NEXheater, significant improvements in home efficiency are possible.

In the same way efficient solar panels revolutionized energy production, by allowing energy to be produced where it’s used, water treatment and energy recovery can be done onsite. In the home, this means: using less water and producing less sewage without changing habits, having water for valuable landscape regardless of drought restrictions, and saving money on water heating costs. And just like solar, there are wide-ranging implications when deployed at a large scale:


  • Reduce the cost/waste of infrastructure and operating costs to transport water over long distances
  • Allow continued population growth with existing fresh water resources and existing infrastructure
  • Smooth peak demands on water, energy supplies and sewer infrastructure
  • Allow true Zero Net Energy (ZNE) homes without increasing costs for homeowners
  • Improve urban air quality by eliminating gas connections

Real Value for Customers, Large and Small

Our current market focus is custom homes and remodel projects with thirsty landscapes. New homes, under California’s Model Water Efficiency Landscape Ordinance (MWELO) are limited in the type and amount of landscape that is allowed unless using water-saving technology like NEXtreater. With NEXtreater, compelling benefits to homeowners include:

  • Increased resale value
  • Unrestricted outdoor watering
  • Environmental credibility

We can access homebuyers in the custom and luxury home market today. We already have more than 35 orders for pilot systems, primarily in new homes, where buyers are looking to:


  • Use the latest and greatest tech
  • Be seen as environmentally friendly
  • Be able to use water as they like and protect their landscape investment

The higher prices of low volume production can be absorbed by this market and we foresee a sustainable business of around 100 systems/month is achievable in California. We need to grow salesforce and operational capacity in 2018 to reach this scale.


When deployed at scale, in entire projects or communities, additional value can be gained. Water and energy recycling presents builders and developers with a unique opportunity to take control of the way resources are used in a project. This can yield substantial returns through:


  • Marketing benefits
  • Reduced infrastructure costs
  • Stretching available water resources to allow construction of more units

We are pursuing high-volume projects and have identified nearly 25,000 homes being built in California over the next 10-20 years that would benefit from using our systems. These new homes are typically in master-planned communities where water stress, local environmental conditions, or market preferences dictate that homeowners would realize significant benefits for using onsite water and energy recycling.


Our work so far has made NEXtreater and NEXheater simple to install and easy to use, but we need an established channel partner to help us access and deliver on these larger opportunities. In 2018 we aim to build on the success of our pilot programs to attract such a partner.



No matter how the product is sold, opportunities exist throughout the value chain. Some of these benefits are so compelling, they justify investment in onsite water and energy technology on their own; others form part of the story.

We've Hit the Ground Running

Building on the previous experience of our founders and after 8 years in business, we’ve learned a lot about the market and adjusted our technology and approach to suit along the way. Significant progress has already been made and Nexus is now ready to scale the model up.

Keys to Success:


  • Out-of-the-box, permitted solution that homeowners will accept
  • Simplified design and implementation  on the part of the builder/plumber
  • Training and hands-on support for early adopters.

Progress already completed:


  • We’ve already made the big investments in technology development, certification and field trials
  • We’re manufacturing today and beginning to deliver to early customers – more than 35 orders have been made by early adopters
  • Technology is code-compliant in California
  • We are training a network of installers that understand our product.

The NEXtreater was the first product of its kind to pass a 6-month test program and meet NSF/ANSI-350 code requirements out of the box. NSF 350 is included in both the International Plumbing Code and the Uniform Plumbing Code – these codes form the basis for most state building regulations. By adhering to strict international health and safety standards, our NEXtreater produces water that can be reused in spray irrigation and toilet flushing. Nexus eWater is in the process of building, delivering, and installing our newest generation NEXtreater systems in over 35 homes and is now accepting pre-orders for future deliveries.

As Easy as Owning Any Other Home Appliance...

Nexus eWater products have been proudly designed in Australia and are manufactured in the United States. From day one, we realized that success would require us to work with the habits of our customers, rather than trying to change them. This means we have incorporated smart appliance features to minimize maintenance and provide data back to the user. NEXtreater and NEXheater meet international health and safety standards and NEXtreater was the first product of its kind to be approved for installation in compliance with California plumbing codes. 


Using a patented, multi-stage process of filtration, air injection, and UV disinfection, the NEXtreater is able to remove soap and other contaminants from grey water, bringing it up to NSF350 standards. The system is able to treat up to 200 gallons per day, enough capacity for all but the largest homes. The exact amount recycled will depend on family size and how water is used, but it is typical in many homes to recycle about 100-150 gallons daily.

Why Does This Matter?

Water treated to the NSF 350 standard can be reused in traditional irrigation systems (such as spray irrigation) and also for toilet flushing. As California and the Southwest continue to have limited water resources and growing populations, sustainable building will become increasingly important. NEXtreater and NEXheater, are designed to be “mainstream technology” that can be installed simply, in any home, without impacting quality of life. 


New technologies, like those underpinning Nexus eWater products, allow resources to be managed where they’re used, which eliminates the inefficiencies associated with transporting water and energy across long distances from expensive central facilities. This is an important next step in the #onsiterevolution that is rapidly changing the way we live. Additionally, NEXtreater and NEXheater give homeowners the ability to maintain lawns and landscapes, even during droughts, while still saving water and energy. This isn’t simply a lifestyle choice – green space makes for healthier, cleaner, more energy-efficient communities.

New Appliance Category Worth $15 Billion

We have created a new building-products and home-appliance category: onsite water and energy recycling. Using new home and existing housing stock data from the US Census Bureau, we estimate the total addressable market at $15 billion/year – for water recycling alone! 


California, the perennial leader in solutions for sustainability and lifestyle appliances, is the market we have chosen for initial sales of NEXtreater. On average (according to the Department of Housing and Community Development) over the last 10 years, California is  building around 80,000 housing units per year, short of the 180,000 that are needed to keep pace with the state’s growing population. It is estimated that California needs to add 1.8 million homes by 2025. Prices continue to rise accordingly, with the average new home price in California around $500,000


Nationally, a disproportionate amount of the growth is in the driest areas of the country where the average water use is already high. This is a recipe for lower availability and increased cost for scarce resources, and demand for new, more efficient ways to manage water and energy.


These trends are shown in economic data. According to a survey by Circle of Blue, the price of a monthly water bill for a family of four living in 30 of the largest US cities has been steadily increasing by an average of 9.6% since 2010. In 2015, the average water and sewer bill in California was over $100 per month.

Together, Let's Power a New Age of Water and Energy Conservation

Nexus already has a backlog of about 35 orders for systems from our pilot run. We will use funds raised in this process to expand the support and operations team to ensure that these first deliveries are a success.


We will continue to grow our sales pipeline to custom and luxury home projects and remodels. This will require continued marketing efforts such as attending tradeshows (like CES in Las Vegas in January) and interfacing with architects and builders of new homes. Funds will also be allocated toward raising additional growth capital for this part of the business.


Finally, we will leverage the success of the first installations to attract a sales-channel partner, such as an established home appliance or building products brand, to help us access the builder and developer sales stream. We know that the opportunity is large, and accessing the opportunity effectively will need the scale and efficiency that a large partner can provide.


Invest in Nexus eWater and help us bring water and energy recycling to the home.

Lessons Learned – 8 Years and Counting

Launching any new product is hard, and we’ve learned a lot – the hard way. Success relies on a magic combination of technical capability, market readiness, determination and luck. Along the way, we’ve faced challenges, seen false starts and failures, and learned something every time. We haven’t lost our determination. The Q&A section below provides some insight into our history, our ups and downs, and the experience we’ve gained.

 Some key lessons include:

  • Working with builders and trades people is harder than we thought. The construction industry takes time and training to learn new technologies, a good set of instructions on their own don’t get you there
  • Working with multi home production construction is harder because of the distant control the home builder has over the subcontractors
  • Scaling manufacturing operations, especially by outsourcing, is harder than we thought because of our lack of direct control of the production processes
  • For prospective mass building partners, press coverage of intent is attractive but mass commitment to an entirely new technology is something they wish to implement cautiously at first

Q&A topics covered in this section:

  1. What is the Australia Connection?
  2. Why did we launch in California?
  3. What has been our biggest operational failure?
  4. How long does it take to get from a working prototype to manufacture?
  5. Why hasn’t mass adoption developed like we thought it would?
  6. Why are we targeting custom homes today?
  7. Are there cheaper ways to recycle water?
  8. Why would people want NSF-350 treated water when it is more expensive?
  9. Does onsite water recycling payback?
  10. Shouldn’t we leave recycling to the municipal authorities?
  11. Is there a realistic path to mass adoption in tract homes?
  12. Should we think about water heating at the same time as recycling?

1 – What is the Australian Connection?

You might think that Australia is a big dry country and that we already have a large established client base there. While it’s true that Australia is a big country and parts of it are very dry indeed – these are also sparsely populated. The coastal strips where the majority of the population live are in fact relatively wet and as a result rules for recycling of water are not far advanced. There is no large client base in Australia, nor is there likely to be in the near future.


Australians, isolated in the Southern Hemisphere, have a long history as tinkerers and problem solvers. During the Millennium drought many people turned their attention toward water efficiency.  The drought brought our founders together in Canberra, Australia and the patented technology was developed there. Product development continued in Canberra, with a few initial proof of concept installations done in Canberra homes and at the Australian National University (ANU).


It was clear to all at this early stage that the initial market would not be Australia, but likely California. It is common for Australian start-up companies to find markets and investment overseas. With a view toward becoming a US company, the next phase of development – early market development activities and installation of a prototype – was mainly funded by Australian investors including the ANU’s venture capital fund, a small group of private investors, and grant support from the Australian government.


With our target market and funding for the initial operations in the United States, it made sense to become a US company in 2014. As expected, the next rounds of funding – to get from prototypes to an economically manufacturable product – have come predominantly from US technology venture investors.

2 – Why did we launch in California?

Once we started seeking early stage funding, we designed our product and positioned our business for the California market. It simply makes sense. The American Southwest builds huge numbers of relatively expensive single-family homes.


California offers scale and concentration of the market. Australia has about 24 million people spread over nearly 3 million square miles. The biggest cities are in relatively temperate areas and, in most years, they have plenty of water. Sydney, for example has a large desalination plant, capable of supplying 15-30% of the city’s water, that has stood unused since 2012. Southern California has a similar number of people to Australia but they live in less than 2% of the area, in one of the most affluent areas in the world. And it’s dry – the Metropolitan Water District of Southern California currently estimates that 45% of their water is imported.

These basic market factors were compelling enough alone when we founded the company in 2010, but along the way they fostered a friendly regulatory environment. California was the first state to adopt NSF 350 as a state-wide standard for treated grey water, which has vastly simplified permitting processes.


People often ask “How many manufactured systems do you have in Australia?” and the answer is zero, only a couple of proofs of concept in Canberra. We build an American product for the US market and that has always been our intent. Our headquarters, operations, staff and three of our four board members are based in the United States.

3 – What has been our biggest operational failure?

Nexus began work on our first demonstration project with a national builder in 2015 – it did not go well. We intended to install more than 50 systems as standard equipment in all homes in the project, but neither Nexus, nor the builder and their subcontractors, were really ready.


Our first-generation product had bugs. We knew it, but felt they could be managed with builder support. In marketing water recycling to customers, despite training and materials saying otherwise, it was presented by the builder as a cost-saving option – this doesn’t pencil out and most buyers were confused. The builder was not geared up to work with a startup. Other innovative new features in their builder’s homes are provided by companies with revenues of at least $1b and thousands of employees. We were misaligned, and as a result the direction presented to trades people was misunderstood in addition to customers becoming confused.


As an example, in one of the systems delivered to a customer, the good old adage “if all else fails read and follow the instructions” was not exactly followed. Among other problems, the subcontractor had installed the plumbing so that it had been reversed underground and the raw grey water was pumped through the irrigation system instead of the treated water, clogging pipes, emitters and valves. Our equipment was removed from most homes, though we have offered to work directly with any homeowners that remain willing to receive a new NEXtreater – 5 have expressed interest in one that works better and automatically tells us how it's feeling.

What did we learn?

Tract home building is complex, and new construction practices take time to be adopted and learned. It takes a strong commitment from the builder to incorporate significant innovations, and a large investment from the technology innovator to push projects forward. We can also do better technologically. Specifically:


  • The site superintendent is key, and many of them have goals and performance objectives (cost minimization and timescales) that are strongly divergent from or even opposed to ours
  • Handover of a new home is a stressful negotiation process for builder, buyer and subcontractors. Our commissioning process, which uncovered last minute issues to be addressed, put us front and center during handover making the task more difficult
  • Multiple trades are difficult to coordinate and we need to simplify everywhere we can. Fewer touch points and crossovers between different trades is much better

What mitigating action have we taken?

  • We simplified – We created the RRA – a pre-plumbed assembly of tanks that requires only 5 connections by the plumber to install
  • We made the machine smarter - We also redesigned the NEXheater and NEXtreater so they could self-detect or mitigate many of the worst installation errors and communicate better with us
  • We must connect with the homeowner, not just the builder. Where we are already working through a builder we need to force engagement with the homeowner to make sure they understand the value proposition
  • We shouldn’t try to run before we can walk. We should limit our ambition for now to what we can successfully support:
    • For tract builders and spec homes, we should restrict our offerings to dual plumbing and infrastructure
    • We can work directly with an engaged homeowner afterwards to implement recycling
    • Ultimately, we will need deeper pockets or a larger partner to help us access the mass market – which we will be better placed to achieve once we have successfully completed this next market phase

4 – How long does it take to get from a working prototype to manufacture?

The operational failure story tells you it is pretty difficult to get it right first time! Going from prototype to manufacturing a physical product is a lot harder than it looks, but we learned that manufacturing a new product that crosses technical boundaries is a lot harder again. We need to meet home appliance cost, but provide the always-on reliability of an industrial system. This means we need to package industrial components into a product that fits in the limited space available near a new home. There wasn’t an expert contract manufacturer able to take this task on for a reasonable price.


Our initial approach of outsourcing of manufacturing design and build was expensive and ultimately unsuccessful.  Learning: never use consultants or contractors for what is supposed to be your core competency. We just didn’t have sufficient control over the process and again, the objectives and incentives of consultants and subcontractors (potentially to maximise time, work and cost) would be counter to our own.

In the end, it took us almost two years, but we managed to bring the product into a viable state for manufacture by ourselves and with the support of our very patient and loyal investors. The first-generation system cost around $15,000 to make, weighed around 400 pounds, and was not easy to manufacture, install, use, monitor or maintain. We needed it to be cheaper, simpler and smarter. So, we made significant usability enhancements, cut the weight in half, and created an architecture that can be produced in volume for $1,000-$3,000. But the really important thing is that by building the first systems ourselves, we have grown, internalized and retained all the knowledge around our core competencies. Now we can respond dynamically to the needs of the market and limit the amount of stock we need to carry.


Obviously there will be more learnings to be had along the way, but our experience and product development now put us in a significantly better position to face the market, to carefully scale up production and handle the new challenges that this will bring. 

5 – Why hasn’t mass adoption developed like we thought it would?

Our early business plans assumed that we would move quickly to sign an agreement with a large developer for a master-planned community. This has happened twice in our history, in both cases for projects in Northern California building more than 5,000 homes. Although neither project is dead, the agreements in principle to roll out water recycling in master planned communities have not panned out.

What did we learn?

  • The “Green Credential” marketing angle has a lot of value to developers and they have genuinely good intentions in our experience.  We have made several announcements in good faith in the past based on these intentions. However, once we get beyond good intentions, it becomes a question of how fast, how much and when to commit 
  • At the moment, their ability to commit even to an initial small-scale implementation is too great a risk. As yet we are insufficiently market tested and validated
  • As something small, new and experimental, we can’t expect be a top priority in a busy project where their concerns have several zeros more after them than our implementation issues
  • Well-intentioned and supportive as they have been, large community developers cannot effectively support implementation at each home. Their business model does not give them sufficient control to micro manage the subcontractors doing the work

What mitigating action have we taken?

This is a normal path to market for innovative and disruptive technologies and there are many examples from plumbing history. The flushing lavatory, for example, was invented in the 14th century, made practical in the 18th century and finally offered in a modern, high-end commercial showroom by Thomas Crapper and Company in the UK in the second half of the nineteenth century!


  • As we said before, we shouldn’t try to run before we can walk.
  • We continue to move forward with marked demonstration projects to  validate the brand in the market place before attacking the mass market again
  • So we have completely redirected our marketing focus towards custom homes where the issues of attention, risk and control of subcontractors are far more easily addressed. It’s a slower way, but we have more control over our success because it is not dependent on a single huge sale

6 – Why are we targeting custom homes today?

We’ve discussed the challenges in dealing with production builders and large projects above. We’ve learned the hard way that we need to be bigger, with a bigger reputation and resources to match, if we’re going to train production builders to do something new. As we get started, we will have to manage much of the work for them. In the meantime, we continue to work on smaller custom projects to gain experience, build our reputation and prove ourselves. We need to build our market validation.


We see the residential market having three types of end customer:

High end custom homes and remodels:

We’ve found these projects to be the most adaptable. Builders in this category are accustomed to trying new things, hiring expert consultants to help where they lack experience, and managing the problems that may result.

  • Eventual homeowners are engaged and supportive
  • Typically have higher budgets and profit margins to ease implementation challenges
  • Demand a higher level of service and engagement, but they are willing to pay

Boutique builders and small commercial:

Smaller builders are also approachable now. Like custom home builders, these companies manage projects home-by-home and are relatively able to adapt to new technologies. We rarely have direct engagement with the eventual homeowner upfront, so we have to ensure they get the right messages. Strategies include:

  • Providing all disclosures and marketing materials
  • Selling the NEXtreater as an option, direct to the eventual homeowner, and having only tanks pre-installed by the builder
  • Marketing NEXtreater as drought protection, to be activated at a later date, rather than turning it on when the home is handed over

Production builders:

With smaller margins, everything has to be more efficient. To date we have struggled to get builders and their trade partners to incorporate this new technology effectively into their projects.

  • We’re gaining experience and preparing to make the investment needed to work effectively in a production-building environment
  • We’re looking for a partner that can leverage their brand, scale, reputation or resources to accelerate uptake
  • They will find it easier to commit when the market validation reduces their risk 

7 – Are there cheaper ways to recycle water?

There certainly are (plus more expensive ones as well). People throughout history, even into modern history in rural areas, have reused washing and bathing water for irrigation and there have been retail grey water solutions in the market place since at least the early 1990’s. Despite this the market has, as yet, to take off.


So why is this?  Our view is that there are a few factors at work: The need has been increasing as growing populations put demands on water supply. Legislation has been developing to encourage savings, and environmental and safety restrictions have gotten tighter. There is a need for a different approach that responds to these drivers.


We think that products meeting the NSF-350 standard strike a balance between usability (more water will be recycled by if people are comfortable and easily able to reuse the water) and price. 


Today, there are few direct competitors, but water conservation overall is an active market space, so there are solutions being produced for other niches. There are certainly cheaper ways to reuse grey water, and expensive ways to recycle water in centralized plants, so let’s explore this in a bit more depth and try and work out which horse works for which course and whether our course is one it is sensible to bet on.

This table sets out simply the methods and what you can do for what cost. It is a simplified view of the California Plumbing Code and the NSF/ANSI 350 standard.


Bucketing or Laundry to Landscape
Simple Filtration
Treated (to NSF-350 Standard)
Desalination or Toilet to Tap
Cost
Low
Medium
High
Very High
Uses
  • Flood and Subsoil irrigation
  • No Storage
  • Subsurface drip systems
  • Cannot be stored more than 24h
  • Unrestricted outdoor use
  • Toilet flushing
  • Can be stored
  • Unrestricted, including potable water
Quality Standard
None
Must remove particles larger than 100µ
Must control: BoD, Turbididty, pH, Suspended Solids, and e.Coli
Drinking water standards

8 – Why would people want NSF-350 treated water when it is more expensive?

It’s true. Today, the cheapest water you can get in most areas is from the tap and, though governments issue watering restrictions and landscape guidelines to limit consumption, they are often ignored. But this is changing, with water rates and conservation ramping up year after year.


We believe that people want to save water, have long showers and lush landscapes – guilt-free. Further, we believe that most people will only change their water consumption if doing so does not impact their daily habits.


This is why we have developed a smart appliance, and why we meet NSF-350 standard. As a smart appliance, our goal is that NEXtreater will fit seamlessly into the home. Like any other appliance, it will require periodic maintenance – twice per year for most people – but most days it will just save water. Meeting NSF-350 removes some significant restrictions on how and when the water can be used so that more water can be saved more easily in more homes.

9 – Does onsite water recycling payback?

Today, for the homeowner, it does not and that’s not our value proposition. Just like air conditioning or furniture in your home, the value we provide is not a simple economic calculation. Some buyers may value the environmentally responsible credentials that water recycling provides, others place value on landscape features and the ability to protect them from drought. The most popular upgrades in new homes, and lucrative for builders, are luxury items: countertops, flooring, additional windows. NEXtreater allows builders to add high-value, high-margin landscape upgrades to the catalogue.


Calculations can be very different at larger scales. Often, water use, the availability of water rights, or the need to expand sewer infrastructure can be limiting factors for community growth. Reducing the water use and sewage production of new homes can be the difference between securing land entitlements and failure.

10 – Shouldn’t we leave recycling to the municipal authorities?

In many respects, drinking water in Southern California is already recycled. Water imported from the Colorado River is fed by hundreds of wastewater treatment plants before it reaches San Diego, for example. There is power in the perception that our drinking water is fresh, from a river or aquifer, but reality is a bit different. We already drink purified wastewater and we will continue to do so. Nexus believes that a distributed, onsite solution will be an important part of overall water efficiency picture because:

  • We can have an impact now. Timeframes are exceedingly long for large infrastructure projects. San Diego’s test plant was commissioned in 2007 and is set to provide water to the city in 2021. In 2017, San Diego announced an expansion of the program set to cost $5 billion and be complete by 2035
  • Infrastructure costs, especially for 3rd pipe recycled water projects that don’t meet drinking water standards, are extraordinarily high. As a State, California already defers maintenance on water resource infrastructure.
  • There is significant psychological benefit in knowing you are reusing your own water, controlling what goes in and how it is used. Central recycled water is reused wherever the city wants it to go to.

11 – Is there a realistic path to mass adoption in tract homes?

Yes.  While we’re small, we should only sell dual plumbing and infrastructure (our Recycle Ready Assembly) to tract builders and spec homes. This gives us some access now and we can work directly with an engaged homeowner afterwards to implement recycling.


Where we are already working with some smaller builders where we need to force engagement with the homeowner to make sure they understand the value proposition. This market validation will enable us to win increasingly larger assignments – there won’t be a step change any time soon but it is more likely that a major breakthrough to the mass market will occur once we can on the one hand demonstrate reduced risk for the developer and on the other be able to support the scale.


To support scale, ultimately we will need deeper pockets funded either by a much larger equity raise at an increased valuation based on our success, or by teaming up with a larger partner to help us access the mass market. We are aware that several potential partners are eyeing this space, but like the large developers they are standing back “to see what happens”

12 –Should we think about water heating at the sametime as recycling?

Our system features a 75 gallon grey water collection tank, which decouples production (when you shower or do laundry) from reuse (when your irrigation system needs water). Grey water coming from showers, baths, sinks and laundry is usually hot so, while it sits in our collection tank, we have the opportunity to collect the heat.


It turns out that this is a very good idea. Using a heat pump, we can concentrate the heat and move it back to the water heater very efficiently. This allows homes to use electric water heating for about the same cost as gas (a 2-3x improvement over existing electric storage water heaters). The technology isn’t new, but we’re gaining access to the water for recycling, and gaining an opportunity to recover the heat.  Why does this matter?

  • Eliminate gas connections (safer, cheaper and fewer onsite GHG emissions)
  • Support ZNE goals
  • Manage energy resources onsite

In the Press

Gray Water Brings Lush Lawns Without the Guilt
August 13, 2015

Californians tempted to report Steven Sockolov at Twitter’s #DroughtShaming should first take note: The lush landscaping at his Mill Valley, Calif., home is quenched with recycled water.

A house that thumbs its nose at the drought
January 1, 2017

Imagine a home that could recycle two-thirds of the water it uses. No need to imagine. New technology to do just that was recently approved for use in drought-parched California, and the company behind it claims it could be looking at a $15 billion business ahead.

After Taking a Shower, Shower Your Lawn?
March 23, 2016

The system, created by a company called Nexus e-Water out of Australia and now headquartered in San Diego, will be deployed for the first time in a major home development in Lathrop, Calif., a suburb 75 miles east of San Francisco.

White House summit focuses on aggressive, new ways to save water
March 22, 2016

Occupants of 11,000 new single-family houses under construction near Tracy will be able to recycle their shower, bath, laundry and sink water on site using a system designed by Australian water engineers, one of dozens of new water technologies the White House will showcase at its big “water summit”

Amid drought, California’s new housing experiments with ways to save water
December 15, 2015

In an affluent neighborhood north of the city, the Sea Cliff development of million-dollar custom houses appears at first glance to be yet another in a series of expensive homes sprouting across California.

2015 Solar Decathlon: Aggie Sol Home
September 17, 2015

UC Davis is participating in the U.S. Department of Energy’s Solar Decathlon Competition for the first time in 2015 and have devoted their efforts to providing sustainable zero-net energy housing that farm workers can afford.

Graywater’s Future Brightens With Help From Homebuilders
September 5, 2015

Graywater, the recycled water collected from your sink, shower or washing machine, is becoming increasingly popular with California’s building industry. By selling new homes with built-in systems for reusing water, developers may propel the practice into the mainstream.

San Diego Graywater Options Getting A Closer Look
July 15, 2015

“We take residential water efficiency to a whole new level," said Heather McPherson of Nexus eWater, a company that has developed a nationally permitted water treatment system. "Two out of three gallons used in the home can get a new life by being recycled.”

Graywater's future brightening with help from homebuilders
July 15, 2015

Graywater, the recycled water collected from your sink, shower or washing machine, is becoming increasingly popular with California’s building industry. By selling new homes with built-in systems for reusing water, developers may propel the practice into the mainstream.

Recycling system cuts home water use
June 22, 2015

KB Home, one of the state’s largest builders, showed off a new recycling system in San Diego Monday that eliminates the need for much of the drinking water now used to quench thirsty landscapes. It would drop overall water use by as much as 72 percent.

City, builders set sights on recycled water
March 31, 2016

The River Islands master-planned development in Lathrop, east of Tracy, was highlighted at the White House Water Summit in Washington, D.C., last week for an innovative recycled water proposal. The plan calls for building water-recycling systems designed by San Diego-based Nexus eWater.

The Aussie start-ups tackling the global water crisis
March 23, 2016

In the nation’s capital, Nexus eWater has created a unique water and energy recycling system for smarter, more effective water use and heating. The technology cuts residential water use by up to 40% by using grey water — the water produced by washing people and their clothes.

Planned Community In Lathrop Wins White House Recognition
March 22, 2016

The Obama administration is shining a spotlight on the water problems and solutions of today. River Islands and Nexus eWater have partnered to give homeowners a way to recycle water from showers and dishwashers to keep the lawn green.

Grey water part of the solution to oncoming drought
December 26, 2015

Andrew Hermann is an engineer who was brought up in Canberra and who has now developed a successful grey water recycling company in California. He says there are lessons to be learnt from a part of the world facing similar climate issues to our own region.

Turning grey water into a golden opportunity
October 27, 2015

Do we really need clean drinking water to flush toilets or water lawns? Australian firm Nexus eWater has found a way to recycle the soapy water that goes down the drain after a shower or laundry cycle for these purposes, and harness the heat from it to warm up clean water.

Gary McDonald Homes installs home water recycling system
February 20, 2016

A Fresno homebuilder and a San Diego manufacturer are introducing a home water catchment and recycling system that takes do-it-yourself gray water irrigation projects to the next level.

Offering Summary

Maximum 713,333* shares of Series B-1 Preferred Stock ($1,069,995.50)

*Maximum subject to adjustment for bonus shares. See 10% Bonus below

Minimum 6,667 shares of Series B-1 Preferred Stock ($10,000.50)


Company
Nexus eWater Holdings, Inc
 

Corporate Address
5945 Pacific Center Blvd. Suite 509, San Diego, CA 92121
 

Description of Business
Nexus eWater makes water and energy recovery systems for onsite recycling. Our products recover valuable resources from great water (wastewater from washing people and their clothes) allowing them to be used a second time.
 

Type of Security Offered
Series B-1 Preferred Shares
 
Purchase Price of Security Offered
$1.50/share
 

Minimum Investment Amount (per investor) 
$495.00 (330 Shares)












Perks

$1000 — If you invest $1,000, you will receive a Nexus eWater t-shirt (less than 1% of your investment gets you a conversation starter and helps spread the word about onsite water and energy recycling) 

$2,500 — If you invest $2,500, you will receive a personalized invitation* to visit Nexus eWater for a factory and facility tour in San Diego, California.

$5,000 — If you invest $5,000, you will receive a personalized invitation* to join us at an industry trade show or event. Come see us in action and learn more about our industry and market opportunity! 

$25,000 — If you invest $25,000, you will receive a personalized invitation* to join our yearly networking event celebrating the latest achievements in onsite water and energy recycling!

*Note. Perks exclude all travel expenses.  All perks occur after the offering is completed.

The 10% Bonus for StartEngine Shareholders

Nexus eWater Holdings, Inc. will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders (with ≥ $1,000 invested in the StartEngine Reg A+ campaign) within 24 hours of this offering going live.

StartEngine shareholders who have invested $1,000+ in the StartEngine Reg A+ campaign will receive a 10% bonus on this offering within a 24-hour window of their campaign launch date.  This means you will receive a bonus for any shares you purchase.  For example, if you buy 100 shares of Series B-1 Preferred Stock at $1.50 / share, you will receive 10 Series B-1 Preferred Stock bonus shares, meaning you'll own 110 shares for $150.   Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$1,386,490.00 USD
$1,150,060.00 USD
Cash And Cash Equivalents
$744,024.00 USD
$141,992.00 USD
Accounts Receivable
$66,476.00 USD
$35,032.00 USD
Short Term Debt
$2,570.00 USD
$0.00 USD
Long Term Debt
$6,500.00 USD
$3,000.00 USD
Revenues And Sales
$77,500.00 USD
$82,010.00 USD
Costs Of Goods Sold
$29,653.00 USD
$117,998.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$1,182,555.00 USD
-$2,338,455.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Campaign Progress

6 months ago

Followers and Prospective Investors,

As the campaign nears it’s end, we are faced with a decision about how to proceed. With a relatively small amount of money committed, there are three options available to us: extend the campaign, end and accept funds committed so far, or return the funds and follow a different path.

After careful consideration, we wouldn’t be able to guarantee real business progress with the funds committed, so it would be unfair to accept them. For this reason, when the campaign closes later this week, we will not be withdrawing any funds. the Board has chosen to pursue M&A options for the company.

The StartEngine team will coordinate the return of your committed funds.

Thanks for your support,

Nexus eWater


CES: Coverage of Nexus and Flex House featured in Architectural Digest and Curbed

8 months ago

Nexus attended CES as a partner in the Flex House display – a sustainable, low cost pre-fab home. Sponsored by Green Builder Media, the Flex House is a model demonstration of “Right-Sized” living in a small, flexible space that is connected, intelligent, resilient and sustainable. 

The Curbed article describes the smart home and sustainability features of the project:

"Of course, the Flex House wouldn’t be the Flex House without its full suite of smart home integrations and sustainability-minded fixtures. These include: a Nexus eWater greywater recycling system, Rachio WaterSense smart irrigation controller that optimizes water use based on weather data, Sylvania smart lighting, Lutron smart shades, Wemo smart plugs, Sensi smart thermostat, and Kwikset smart lock. And all of this is integrated with the smart assistant Amazon Alexa, which can be controlled by voice or app."

Architectural Digest discusses how more sustainable homes are more resilient. Resiliency is important given the increasing frequency and severity of fires, drought and flood. From the article.

The Flex House uses net-zero energy, sure, but it also uses the latest water treatment, conservation, and management technologies to help reduce the risk of fire… Take Rachio, a smart irrigation system. Rachio can test soil’s dryness so that a homeowner knows when to water and when it’s not necessary. Better still, it can do so with gray water from Nexus eWater, a home water system that takes gray water from faucets and sinks and filters and recycles it for later use in your home and garden.

Congratulations to Green Builder Media and the rest of the Flex House team on the excellent coverage and a great show.

Tips for international visitors

8 months ago

As a 'born global' company, we regularly get questions from our international network wondering how they can help from overseas. The good news is that Nexus is accepting international investment (in accordance with StartEngine policies, Canadians are not eligible), but the process has some extra steps. It's best to prepare in advance. We suggest the following:

  1. SHARE – Click the Follow and Share buttons so you can keep track of us. It helps, even if you can’t contribute yourself.
  2. PREPARE – You’ll need some ID. Make sure you have pictures of your passport and drivers license ready to register. The address on your license (or other government ID) should match your registration. There are 3 payment options:
    • Credit Card (Easiest, charged in $USD)
    • US Bank Account (If you have one)
    • International Wire (If you do that kind of thing)
  3. CLICK – You can find the Invest Now button at the top of the screen.

One week in – we're rolling now

8 months ago

Current commits are up to around $22,500 and you may be wondering what that means for the company.

Well as one example, it’s the approximate retail price of two NEXtreater systems for our retrofit customers. As the commitments keep flowing in, we’ll keep letting you know  what it means for us.

Thanks for the support!

First Milestone Reached!

8 months ago

Investors and Followers,

Just a quick note to highlight our first small milestone – we’ve crossed the minimum investment threshold. Thanks for the interest you’ve shown so far!

And a special thank you to the customers, prospective customers and friends of the company who have already contributed. Your continued support is very much appreciated. 

Onward to the next goal!

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