- Research and development activities increased twofold for the
twelve months ended December 31,
2021, as Exro expanded development relationships and
executed on testing and validation of projects to advance the
Company's goals for commercialization in 2022.
- Exro Vehicle Systems Inc. launched as a services division to
provide vehicle integration solutions for automakers pursing
electrification.
- Exro successfully completed a vehicle integration of its 100
Volt Coil Driver™ technology, marking the second vehicle
integration of the technology.
- Exro opened the doors for employees to its 37,000 square foot
world-class manufacturing facility in Calgary and commenced construction on the
clean room and automotive-grade manufacturing lines, on track to be
commissioned by year end.
- Employees moved into the Company's U.S. headquarters in
Mesa, Arizona, which will increase
Exro's Coil Driver™ testing capacity, create space for its Energy
Storage Systems, and showcase its demonstration vehicles for
customers.
CALGARY, AB, March 29,
2022 /CNW/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB:
EXROF) (the "Company" or "Exro"), a leading
clean technology company that has developed a new class of power
electronics for electric motors and powertrains, announced today
its financial results for the year-ended December 31,
2021.
"Our Company continued operational momentum into Q4 2021 where
we achieved a number of important milestones, closing out what was
a challenging year for early-stage technology companies like Exro,"
said Sue Ozdemir, CEO of Exro. "We
continued to advance our Coil Driver towards commercialization with
further product validations and integration into a second vehicle
platform. We launched Exro Vehicle Systems, a services division
that will provide critical automotive customer support early in the
design process. We also began construction on our world-class
product manufacturing facility in Calgary, which is on schedule to be
commissioned later this year. These milestones allowed us to start
2022 from a position of strength with our team focused, and highly
motivated, to execute our commercialization strategy in 2022. We
believe this execution holds the potential to unlock value for our
shareholders."
Q4 2021 FINANCIAL HIGHLIGHTS
For the twelve months ended December 31, 2021
- Comprehensive loss of $24,609,078
(2020 – $10,969,454).
- Selling, general and administration expense increased by
$2,406,342 to $5,398,305
- Payroll and consulting fees increased by $4,309,053 to $7,340,916
- Research and development increased by $5,141,734 to $7,407,940
- Share based payments expense increased by $7,564,905 to $9,789,290
For the three months ended December 31, 2021
- Comprehensive loss of $6,545,931
(Q4 2020 – $4,208,256).
- Selling, general and administration expense increased by
$729,655 to $1,834,172
- Payroll and consulting fees increased by $2,370,177 to $2,826,735
- Research and development increased by $816,289 to $2,365,460
- Share based payments expense increased by $1,367,363 to $2,236,111
The main drivers for the overall cost increases are due to
additional expenditures incurred as the Company is transitioning
from a proof-of-concept stage to a commercialization phase and
preparing for future Coil Driver production. Research and
development expenses increased by 227% for the twelve months ended
December 31, 2021, due to testing and validation of several
projects to achieve the Company's goals for commercialization. Exro
is still spending a considerable amount of time and effort to
recruit top talents and to increase the awareness of its
technologies and progress.
FOURTH QUARTER OPERATING HIGHLIGHTS
On November 3, 2021, Exro
announced the launch of its services division to provide vehicle
integration solutions for automakers pursuing electrification. The
new division, called Exro Vehicle Systems (the "division"), will
provide end-to-end electric vehicle (EV) design and engineering
services. Exro Vehicle Systems will focus on complete powertrain
designs that integrate Exro's core technology, including embedded
software, Vehicle Control Units (VCUs) and batteries. The division
will build on Exro's suite of existing product offerings with Coil
Driver and Battery Control System (BCS) to solve additional
challenges for automotive customers. It is expected that the
services division could yield business for the Coil Driver by
introducing automakers to Exro's independently tested technology in
the early design stages. The services division gives Exro the
opportunity to show automakers how the Coil Driver can create lower
cost, yet higher performing EVs at scale, which is the key to
accelerating EV adoption. The Company opened its services division
facility in Michigan in
January 2022.
On November 17, 2021, the Company
announced the successful new vehicle integration of its 100 Volt
Coil Driver technology, marking the second vehicle integration of
the Company's Coil Driver technology. This milestone follows an
independent assessment proving the technology successfully combines
two traditionally separate formats of power electronics for the
first time and has the potential to reduce the weight and cost of
electric powertrains. This vehicle integration showcases how Exro
technology can be applied to optimize new light-duty EV
applications. The emerging growth partner entered a non-disclosure
agreement (NDA) with Exro to improve performance by providing
improved acceleration at low speed and power output at high speed
of its fully electric compact car designed for the European market.
The Exro and NDA partner teams then worked diligently to
successfully integrate the 100 Volt Coil Driver into the light-duty
EV, which optimizes the powertrain by expanding the torque and
power output of the motor.
On December 9, 2021, the Company
officially opened the doors for employees to its manufacturing
facility (the "facility" or "new facility") in Calgary, Alberta. Exro's 37,000 square
foot Canadian facility will feature automotive-grade production
lines, product showrooms and collaborative office space for the
Company's growing team of more than 50 Calgary-based employees.
Exro's Canadian facility will be compliant with automotive-grade
manufacturing standards ISO 9001:2015 and IATF 16949, as well as
ISO 26262 for functional safety. The facility can support
low-volume manufacturing and deliver approximately 100,000 Coil
Driver units per year for use across a wide range of electric
mobility applications from two-wheeled recreational vehicles to
passenger vehicles and even commercial and industrial vehicle
applications. The facility will also manufacture the BCS for energy
storage applications.
SUBSEQUENT EVENTS
On February 4, 2022, the Company
announced the closing of a bought deal offering (the "Offering").
Pursuant to the Offering, Exro sold 12,722,450 units (the "Units")
at a price of $1.60 per Unit (the
"Issue Price") for aggregate gross proceeds of $20,355,920. The total number of Units sold in
the offering includes 1,659,450 Units issued pursuant to the
exercise of an overallotment option granted to the Underwriters,
which was fully exercised by the Underwriters. Each Unit consists
of one common share in the capital of the Company and one half of
one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant is exercisable for one common share at a
price of $2.00 per common share until
February 4, 2025. The Units were
offered by way of an amended and restated prospectus supplement
dated February 1, 2022 to the
Company's base shelf prospectus dated December 16, 2021, filed with the securities
regulators in each of the provinces of Canada, copies of which are available under
the Company's profile on SEDAR at www.sedar.com.
On March 23, 2022, Alan Gaines resigned his position as director of
the Company in order to concentrate on his other business
interests. Exro thanks Mr. Gaines for his service to the Company,
as well as his guidance and contributions to the Company's growth.
Exro wishes him the best in his personal and professional
endeavors.
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2021, the Company had cash of
$15,349,212 and amounts receivable of
135,091, which primarily consist of GST refund. The Company had
accounts payable and accrued liabilities of $3,004,848.
RESULTS OF OPERATIONS AND SELECTED FINANCIAL DATA
for the twelve
months
ended
|
Revenue
|
Other
comprehensive loss
|
Basic and
diluted
loss per common
share
|
Weighted
average
number of common
shares
|
December 31,
2021
|
-
|
$
|
(24,609,078)
|
$
|
(0.20)
|
120,133,748
|
December 31,
2020
|
-
|
$
|
(10,969,454)
|
$
|
(0.12)
|
90,318,733
|
OUTSTANDING SHARE DATA
As of March 29, 2022, there were 133,842,724 Common Shares
issued and outstanding, and other securities convertible into
Common Shares as summarized in the following table:
|
Number outstanding
as of
|
Number outstanding
as of
|
|
March 29,
2022
|
December 31,
2021
|
Common Shares issued
and outstanding
|
133,842,724
|
120,905,274
|
Options
|
11,437,966
|
11,812,216
|
Warrants
|
8,845,883
|
1,848,811
|
ADDITIONAL INFORMATION
The audited consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2021, dated March 29, 2022, can be viewed at
www.exro.com/investors or on SEDAR under Exro Technologies Inc. at
www.sedar.com.
Unless otherwise noted, all figures are in Canadian currency,
Cdn.
About Exro Technologies Inc.
Exro is a clean technology company pioneering intelligent
control solutions in power electronics to help solve the most
challenging problems in electrification. Exro has developed a new
class of control technology that expands the capabilities of
electric motors, generators, and batteries. Exro enables the
application to achieve more with less energy consumed.
Exro's advanced motor control technology, the Coil
DriverTM, expands the capabilities of electric
powertrains by enabling intelligent optimization for efficient
energy consumption. Exro is working with many partners from all
over the world to bring their technology to the electric mobility
industries and beyond.
For more information visit our website at www.exro.com.
To view our Corporate Presentation visit us at
www.exro.com/investors
Visit us on social media @exrotech.
ON BEHALF OF THE BOARD OF DIRECTORS
Sue Ozdemir, Chief Executive
Officer
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects", "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be
taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties and other factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's filings with
Canadian securities regulators, that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the assumptions and factors used
in preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is qualified in its entirety by cautionary
statements and risk factor disclosure contained in filings made by
the Company with the Canadian securities regulators, including the
Company's annual information form for the financial year ended
December 31, 2020, and financial
statements and related MD&A for the financial year ended
December 31, 2020, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company has attempted
to identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended. The
Company does not intend, and does not assume any obligation, to
update this forward-looking information except as otherwise
required by applicable law.
Some of the risks which could affect future results and could
cause results to differ materially from those expressed in the
forward-looking information and statements contained herein include
the risk factors set out in Exro's annual information form and also
include, but not limited to:
- The listing of the Exro's common shares on Nasdaq remains
subject to the review and approval of the listing application and
the satisfaction of all applicable listing and regulatory
requirements, including approval of a registration statement to be
filed by the Company with the U.S. Securities and Exchange
Commission;
- The NASDAQ listing may not provide Exro with broadened access
to international investors or enhance Exro's liquidity
- Anticipated market demand and sales orders may differ based on
changes in customers' pipelines and/or product requirements;
and
- Potential delays in completion of testing and validation of
future Coil Driver™ products and prototypes.
Neither the Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this press
release.
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SOURCE Exro Technologies Inc.