Logical Buildings Closes $3.5 Million Series C-1 Offering as SmartKit™ AI Smart Building Software Platform Expands Nationally, Achieving 35% Growth in Adoption During Q4 2018

Logical
Buildings, a software company that operates at the cutting edge of
smart building and grid-edge energy management, has completed a $3.5
million Series C-1 offering as it continues to invest in further
developing its SmartKit AI comprehensive building energy management
platform, and expanding its adoption to new geographies.

The company’s SmartKit AI product growth is fueled by the convergence of
energy grid decentralization, building systems’ digital transformation,
and IoT device consumerization. The SmartKit AI mobile cloud platform
synthesizes real-time smart meter utility and grid data with building
mechanical and IoT sensor data to optimize building performance and
improve property management decisions. The company’s interoperable
platform integrates with existing BMS systems, next-generation IoT smart
devices, and voice activation services to augment onsite property
management capabilities to enhance tenant comfort and property
resiliency.

“The SmartKit AI platform is increasing property valuations by providing
our expanding user base of property owners with new sources of revenue,
cost reduction, and improved work-flow management tools. Linking
real-time data insights with actionable digital protocols to generate a
net increase in NOI is a game-changing capability we provide our
clients,” said Jeff Hendler, CEO of Logical Buildings.

The new funding will also be used to expand partnerships with utilities,
IoT platforms and telecommunications companies. Logical Buildings was
recently selected as an innovation technology finalist to present
SmartKit AI to a panel of utilities at DistribuTECH’s
Initiate! program, which is designed to help utilities adopt
innovative technologies.

“The opportunity for utilities is massive. As millions of residential
and commercial consumers move to time-of-use energy rates made possible
by smart meter deployment over the next few years, the need for
engaging, consumer-friendly energy management platforms that incorporate
non-utility, IoT data is greater than ever. At the same time, with a
growing share of energy generation assets on U.S. grids being
intermittent -- including wind and solar -- energy demand management is
an increasingly crucial tool for utility operators to balance local
distribution networks,” said David Klatt, Logical Building’s senior vice
president of operations.

For example, Con Edison executed its first ever Gas Demand Response
program on January 21, 2019, as temperatures plummeted to near zero
degrees and demand for gas soared on Con Edison’s distribution system.
Logical Buildings is one of only four companies qualified to participate
in the program and provide natural gas demand management in ConEd’s
service area.

Logical Buildings’ C-1 round was oversubscribed on the back of recent
momentum, with 10 new clients adopting the platform and existing clients
expanding services, comprising a total of 60 new SmartKit AI contracts
and deployments in the fourth quarter of 2018—a 35% increase.

New clients include companies such as Rose Associates, Stonehenge,
Bozzuto, Dermot, and L+M Development Partners. Expanding clients include
AvalonBay, Invesco and Greystar.

Participation in these types of high-value energy management events is
easier than ever with the proliferation of smart building devices, such
as wi-fi thermostats. SmartKit AI integrates into popular wi-fi
thermostats, such as EcoBee, and uses predictive analytics to schedule
thermostat setpoints that maximize comfort and energy savings, including
revenue generation through Automated Demand Response. The company
announced new product features at CES earlier this month that expand the
platform’s interoperability with smart devices and voice activation
services.

“Our software development team strives to continuously improve client
engagement and expand the accessibility of our user interface. We now
reach beyond the desktop and mobile device experience. SmartKit AI
enables buildings to talk to our clients with our integration of Alexa
voice activation. We are empowering property management to literally
communicate with their properties in the most innovative and valuable
ways imaginable,” said Hendler.

Logical Buildings’ goals for 2019 call for continued growth within the
company’s existing Northeast and West Coast markets, as well as
expansion to Texas, Illinois, Florida, and Canadian deregulated markets
such as Ontario.

About Logical Buildings

Logical Buildings is a smart building technology software developer, IoT
and DER systems integrator, behavior management, and smart building
services provider. Integration of Logical Buildings’ products and
services in large multifamily and commercial properties materially
reduces operating expenses, generates revenue from existing mechanical
equipment, enables Wi-Fi connectivity, and improves building
operations/fault detection/resiliency. Our clients are market leaders
and are integrating our Smart Building AI Platform services and
technologies - increasing net NOI and NAV property by property. Built by
energy and telecommunication systems engineers and our shareholders –
owners and developers of more than $10 billion of multifamily and
mixed-use properties - Logical Buildings (formerly Energy Technology
Savings, Inc. or ETS) is committed to growing your building’s revenue
while reducing its energy and operating costs, and enhancing tenant
lifestyle. For more information, visit www.logicalbuildings.com.

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