I-Tech develops and sells the performance ingredient Selektope, an active antifouling agent that is incorporated into marine paints to combat the growth of barnacles on ship hulls. This serves to significantly reduce fuel consumption, saving on costs as well as emissions. The company operates a highly scalable B2B business model, and completely outsources its production of Selektope to contract manufacturers allowing I-Tech to focus on sales, R&D and regulatory matters while ensuring a reliable supply chain. I-Tech has successfully established relations with major customers, with Selektope currently being integrated into the product portfolios of six out of the nine largest paint companies within the commercial and industrial shipping market.
The main risk for I-Tech is regulatory in nature, as Selektope is classified as a biocide, and is therefore affected by extensive regulation in several jurisdictions. Should an important jurisdiction forbid the use of Selektope, this would affect I-Tech negatively. Other main risks are customer and product risks, as I-Tech only sells one product, and has a very concentrated customer portfolio. Should the overall demand for Selektope diminish, or a significant customer decide to switch to an alternative, this could significantly affect I-tech's sales.