At a Glance:
- Exro generated revenue of $2,032,669 for the three months ended
September 30, 2023, and $4,800,730 for the nine months ended September 30, 2023.
- Exro announced the official start of production of the
Company's Coil Driver™ technology on September 6, 2023.
- On August 22, Exro announced
the achievement of certification of its Cell Driver™ battery
modules to the UL 1973 standard, along with the recent grant of
patent #US11,708,005 B2, "Systems and Methods for Individual
Control of a Plurality of Battery Cells," for its Cell
Driver™.
CALGARY,
AB, Nov. 9, 2023 /CNW/ - Exro Technologies
Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or
"Exro"), a leading clean technology company which has
developed new generation power control electronics that expand the
capabilities of electric motors and batteries, announced today its
financial results for the quarter ended September 30,
2023.
2023 score card check-in
In January, Exro kicked-off its launch year with a Q1 Letter to
Shareholders which outlined 10 strategic objectives for 2023
(LINK). The purpose in setting these objectives was to continue
transparency efforts with investors while aligning with what
management believes are demonstrable value drivers for the
Company's shareholders. An update on the score card was provided on
October 26, 2023, in addition to the
MD&A released on November 9,
2023.
Third quarter and subsequent
operating highlights
On July 13, 2023 Exro announced a
non-exclusive innovation agreement with a Major Automaker to
mutually explore powertrain innovations in the Company's electric
passenger vehicles utilizing Exro's advanced power electronics
technology. The purpose of the collaboration is to determine the
performance Exro's Coil Driver™ product for improving continuous
power and torque output of the powertrain in the OEM's vehicle.
Under the terms of the agreement, the Parties will work together to
design a proof-of-concept Coil Driver™ plus motor system. The
Parties anticipate completion on the design of the proof-of-concept
Coil Driver™ plus optimized motor system by the end of Q4 2023,
followed by delivery of functional prototypes to the OEM by the end
of Q4 2024. The prototypes are then expected to enter a period of
testing, including performance, durability, and reliability while
determining next steps.
On August 22, 2023 Exro announced
a milestone achievement with certification of its Cell Driver™
battery modules to the UL 1973 standard. UL 1973 is an industry
standard for stationary energy storage systems which confirms
Exro's modules' quality, resilience, and ability to operate safely
and effectively in a variety of conditions. With successful
completion of UL 1973, the Cell Driver™ has moved to the final
phase of testing requirements for UL certification. UL
certification is required prior to connecting the Cell Driver™ to
the utility grid in North
America.
On August 22, 2023 Exro also
announced it is now patent protected in relation to a key
differentiating feature within its Cell Driver™ Energy Storage
System (ESS) with the recent grant of patent #US11,708,005 B2,
"Systems and Methods for Individual Control of a Plurality of
Battery Cells". Exro's patent supports cell level control,
resulting in superior charging, deeper discharge rates, enhanced
safety, and continuous operation. This enables commercial and
industrial buildings to manage energy consumption, safeguard
against grid outages, store energy produced on-site, and realize
benefits through peak shaving and load shifting.
On September 6, 2023 Exro
announced the official start of production ("SOP") of the company's
patented Coil Driver™ technology. The milestone is backed by
purchase orders from Italian OEM supplier HB4 Group and Canadian
electric bus and commercial vehicle manufacturer Vicinity Motor
Corp (NASDAQ: VEV) (TSXV: VMC) ("VMC").
Third quarter 2023 financial
highlights
For the three months ended September 30, 2023
- Revenue of $2,032,669 (2022 –
$131,251)
- Comprehensive loss of $11,180,243
(2022 – $7,613,152)
- Selling, general and administration expense decreased by
$163,808 to $2,533,045 from $2,696,853
- Payroll and consulting fees decreased by $136,645 to $3,900,282 from $4,036,927
- Research and development increased by $1,395,767 to $3,228,608 from $1,832,841
For the nine months ended September 30, 2023
- Revenue of $4,800,730 (2022 –
$377,589)
- Comprehensive loss of $31,941,587
(2022 – $26,524,493)
- Selling, general and administration expense decreased by
$1,337,348 to $7,183,330 from $8,520,678
- Payroll and consulting fees increased by $2,087,261 to $12,195,221 from $10,107,960
- Research and development increased by $2,231,106 to $8,351,059 from $6,119,953
The Company generated revenue of $2,032,669 and $4,800,730, for the three and nine months ended
September 30, 2023 respectively, through the execution on
engineering services agreements.
Exro saw an overall increase in operating costs for the nine
months ended September 30, 2023,
which was driven largely by higher payroll and research and
development costs compared to the same period in 2022, in addition
to higher non-cash costs related to depreciation and share-based
payments, offset by lower selling, general and administration
costs.
Liquidity and capital
resources
As at September 30, 2023, the Company had cash and cash
equivalents of $19,700,822 and
accounts receivable of $563,837. The
Company had accounts payable and accrued liabilities of
$4,701,075.
Results of operations and selected financial data
For the nine months ended
|
Revenue
|
Comprehensive loss
|
Basic and diluted loss per
common share
|
Weighted average number
of common shares
|
September 30,
2023
|
$4,800,730
|
$(31,941,587)
|
$(0.20)
|
159,148,244
|
September 30,
2022
|
$377,589
|
$(26,524,493)
|
$(0.20)
|
134,809,695
|
Outstanding share data
As of November 9, 2023, there were 169,342,274 Common
Shares issued and outstanding.
Additional information
The condensed consolidated interim financial statements and
Management's Discussion and Analysis for the quarter ended
September 30, 2023, released November 9, 2023, can be
viewed at www.exro.com/investors or on SEDAR+ under Exro
Technologies Inc. at www.sedarplus.ca.
Unless otherwise indicated, all figures are in Canadian
currency, Cdn.
About Exro Technologies
Inc.
Exro Technologies Inc. is a leading clean technology company
that has developed new generation power control electronics that
change how the world optimizes energy by expanding the capabilities
of electric motors and batteries. The company's innovative
technologies serve to bridge the performance-cost gap in e-mobility
(Coil Driver™) and stationary energy storage (Cell Driver™), and
act to accelerate adoption towards a circular electrified economy
by delivering more with less – minimum energy for maximum
results.
For more information visit our website at www.exro.com.
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, 2022, and financial
statements and related MD&A for the financial year ended
December 31, 2022, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedarplus.ca. 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.
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.