- Exro generated revenue of $324,769 for the three months ended March 31, 2023
- Added additional strategic partnerships for its Coil
Driver™ technology for electric vehicles in the period
in Wolong and an undisclosed European partner, which are expected
to help accelerate Exro's market penetration
- Entered into additional channel sales partnerships for its
Cell Driver™ technology for stationary energy storage and
subsequent to the quarter secured an exclusive manufacturing
partner which is anticipated to meet "buy America" incentives
available to Exro customers
- Strong financial position as of March
31, 2023, with cash of $12.1
million, bolstered by the exercise of approximately 4.7
million warrants in Q1 for proceeds of approximately $6.7 million
- As of March 31, 2023, the
Company had approximately 17.1 million warrants outstanding, all of
which are exercisable at the current share price, which if
exercised equate to proceeds of approximately $34 million
CALGARY,
AB, May 10, 2023 /CNW/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the
"Company" or "Exro"), a leading clean technology
company developing new generation power control electronics that
expand the capabilities of electric motors and batteries, announced
today its financial results for the quarter ended March 31,
2023.
"Through the first quarter of 2023 we continued to make steady
progress towards commercialization of our Coil Driver™
technology for electric vehicles and Cell Driver™
technology for energy storage, both of which remain on track to
begin series production in Q3 2023" said Exro CEO Sue Ozdemir. "The value proposition offered by
our technology solutions in solving real world challenges to
electrification continues to grow in relevance and reach across our
market verticals. As we approach the start of series production, we
remain focused on separating the signal from the noise amid the
macro environment and focused on building the most sustainable, and
valuable, company possible on behalf of shareholders."
2023 Scorecard Check-In
As Exro kicked-off its launch year, with a Q1 Letter to
Shareholders the Company 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 demonstratable value drivers for the
Company's shareholders. A status update on these objectives is
included below:
- Signing additional Coil Driver™ strategic
partners that amplify its market presence. In Q1 2023, Exro
announced signing a large European tier-1 OEM supplier as partner.
Still currently under non-disclosure agreement ("NDA"), Exro and
partner are working towards partner motor-Exro Coil
Driver™ inverter integration and testing in Q3 2023.
Following successful testing it is anticipated the identity of the
25,000+ employee partner will be announced along with
commercialization plans. Subsequent to the quarter, Exro announced
signing the world's third largest motor manufacturer, Wolong
Electric Group, as a strategic partner. The companies are
collaborating towards motor-inverter integration and testing in Q4
2023 across a variety of low voltage and high voltage applications.
Exro continues discussions with other potential strategic
partners.
- Delivery of low-voltage and high-voltage
design-for-manufacture (DFM) samples for customer validation.
On March 25, 2023, Exro delivered an
initial batch of low-voltage DFM samples to Italian OEM supplier
and partner HB4. These samples will be used to market the HB4
powertrain to potential customers and have been integrated into
vehicles and showcased in recent European trade shows. Exro remains
on track to deliver an initial batch of DFM high-voltage samples to
customers by the end of Q2 2023.
- Delivery of 48V hybrid-diesel samples to our European
off-highway NDA-partner in Q1. Of note, this project includes
two NDA's under one umbrella partnership – one is a large European
OEM which supplies vehicles for off-highway applications, the
second is a large European-based motor supplier. NDA partner timing
has bumped sample delivery into Q2 2023. Integration of the partner
motor-Exro inverter solution for the OEM's hybrid-diesel platform
has been proceeding well with all parties scheduled to be in
Calgary in May to collaborate
commercialization efforts and witness final testing.
- Signing additional multi-year commercial agreements that
build our Coil Driver™ order back-log. With the roll
out of low-voltage DFM samples at the end of Q1 2023, and the
planned roll-out of high-voltage DFM samples by the end of Q2 2023,
Exro is engaged in commercial agreement discussions with numerous
parties. Following customer vehicle integration and in-field
validation, it is anticipated discussions will translate into
supply agreements in H2 2023 and into 2024.
- Work through phase-2 validation and towards
commercialization agreement with Linamar. Linamar continues to
be an excellent partner. Phase-2 testing of the co-developed
integrated motor-inverter powertrain solution for commercial
vehicle e-beam axles continues to progress well and on schedule.
Upon successful validation and testing, the partners anticipate
moving to a definitive agreement which would outline multi-year
volume production beginning in H2 2024.
- Growing contract services for software engineering and
vehicle integration through Exro Vehicle Systems. With Q1
results today, Exro is pleased to announce a contract award by its
Exro Vehicle Systems division valued at US$2.35 million. The contract is for design
services, including a custom battery pack solution, for a
light-duty on-road electric vehicle for a leading automotive Tier-1
supplier. Delivery is scheduled for Q4 2023.
- Achieve Cell Driver™ UL Certification in Q2.
As announced on May 8, 2023, Exro's
Cell Driver™ Energy Storage System has successfully
completed two of the three major certification phases. The system
is on track to complete UL certification in early Q3 2023, pushed
back by approximately three weeks due to scheduling at UL's
certification laboratories. UL certification is required prior to
connecting to the grid in North
America.
- Signing US Cell Driver™ distribution and
installer partnerships and build order back-log. On
February 7th 2023, Exro
announced a distribution partnership with Greentech Renewables
Southwest, the largest distributor of renewable energy products in
the southwestern United States
with more than 80 sales centers. On May
8th 2023, Exro provided an update naming Re:Build
Manufacturing as exclusive manufacturing partner for the company's
Cell Driver cabinets while also announcing four new channel sales
partnerships: PVCA, ProSolar, Shaw Solar, and High Point Electric
which provide access to customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada. Channel partners are being trained on
Cell Driver™ and are currently marketing and quoting the
technology with solar energy, electric vehicle charging
infrastructure and energy management projects.
- Achieve first deliveries and revenues for Coil
Driver™ and Cell Driver™ products in Q3.
Exro remains on schedule to begin series production of its Coil
Driver™ and Cell Driver™ products in Q3 2023.
Low-voltage Coil Driver™ products are on schedule for
deliveries by September which will be followed by the start of
high-voltage products by early Q4 2023. Following UL Certification
for Exro's Cell Driver™ Energy Storage System, the
company is on track to start series production in Q3 2023 with
initial customer deliveries and in-field pilots.
- Continue to evaluate market conditions for a Nasdaq
up-list. Exro's letter of acceptance from Nasdaq to up-list to
the exchange remains in good standing. The company remains
committed to an eventual up-list and will do so when it deems an
opportune time to do so and in the best interest of
shareholders.
First Quarter and Subsequent Operating Highlights
In its Q1 Letter to Shareholders released on January 17, 2023, Exro announced a new commercial
agreement and purchase order with Italian OEM supplier HB4. Under a
non-disclosure agreement ("NDA") for more than two years, the
parties had successfully piloted an HB4 motor and Exro Coil Driver™
in a small passenger truck with Casalini Motors. Within the letter,
Exro also announced a new commercial agreement for Coil Driver™
Systems with a private Brazil-based retrofitter which includes a
pilot program with a major global beverage company. Identities
withheld under NDA until successful pilot validation.
On February 7, 2023, Exro
announced it has entered into a channel partnership agreement with
Greentech Renewables Southwest ("Greentech"), a division of
Consolidated Electrical Distributors (CED) Greentech, one of the
largest solar equipment distributors in the United States. The agreement aligns with
Exro's targeted go-to-market strategy for its Cell Driver™ Energy
Storage System product offering, partnering with leading clean
energy integrators that provide expertise and scalability to
amplify and accelerate market penetration to commercial and
industrial customers.
On February 27, 2023, the Company
announced it had signed a memorandum of understanding for a
strategic partnership with an undisclosed development partner, a
multi-national company that is a direct supplier to the global
automotive industry. Under phase one of the agreement, the
partner's electric motors will be calibrated with Exro's L040 800V
Coil Driver™ for prototype samples in Q3 2023. Upon successful
completion of automotive dynamometer testing, including achievement
of mutually agreed to performance targets, the parties shall
transition to a definitive agreement for strategic partnership
which will outline volume targets, sales and marketing plans, price
and production targets, and compensation models. Dynamometer
testing remains on schedule to be completed by the end of Q3
2023.
On April 17, 2023, the Company
announced it has entered into a strategic partnership with Wolong
Electric Group Ltd. The partnership aligns directly with Exro's
targeted go-to-market strategy for its patented Coil Driver™
inverter technology partnering with leading global tier-1
automotive suppliers that accelerate and amplify Exro's market
presence. The strategic partnership is intended to leverage Exro's
Coil Driver™ technology and Wolong's motor design and manufacturing
capabilities to develop next-generation electric vehicle powertrain
solutions from light to heavy duty applications in the Americas,
with the potential to expand globally. The agreement consists
of two phases: 1) System development, whereas Exro will test motors
provided by Wolong and develop a complete motor-drive system
offering, and 2) Commercial plan to market, sale, and supply the
motor-inverter solution. Target key customers for the partnership's
powertrain solutions include Mercedes-Benz, Geely Automotive,
ZFGroup, and others.
On May 8, 2023, the Company
announced Re:Build Manufacturing as Exro's exclusive manufacturing
partner for its Cell Driver™. The partnership with Re:Build
Manufacturing provides Exro the ability to quickly scale to capture
the significant opportunity in energy storage while removing all
future capital expenditure and inventory working capital
requirements associated with Cell Driver™ manufacturing from Exro's
balance sheet. The Company also announced new channel sales
partnerships with Photovoltaics California, ProSolar, Shaw Solar,
and High Point Electric, renewable energy and energy management
integrators that cover customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada.
First Quarter 2023 Financial Highlights
For the three months ended March 31, 2023
- Revenue of $324,769 (2022 –
$104,260)
- Comprehensive loss of $8,111,961
(2022 – $10,172,003)
- Selling, general and administration expense decreased by
$1,211,888 to $1,442,110
- Payroll and consulting fees increased by $752,236 to $3,649,496
- Research and development decreased by $373,574 to $1,909,664
The Company saw revenue generated of $324,769 for the three months ended March 31, 2023, through the execution on
engineering services agreements.
Exro saw an overall decrease in operating costs for the three
months ended March 31, 2023, which
was driven largely by lower selling, general and administration
costs incurred in the period, offset by higher payroll costs
compared to the same period in 2022. The Company continues to
invest in talent to gear up for the start of production in
2023.
Liquidity and Capital Resources
As of March 31, 2023, the Company had cash of $12,090,984 and amounts receivable of
$435,933. The Company had accounts
payable and accrued liabilities of $2,590,513.
Results of Operations and Selected Financial Data
For the three
months
ended
|
Revenue
|
Comprehensive
loss
|
Basic and
diluted
loss per common
share
|
Weighted average
number
of common shares
|
March 31,
2023
|
$
324,769
|
$
(8,111,961)
|
$
(0.05)
|
149,820,687
|
March 31,
2022
|
$
104,260
|
$
(10,172,003)
|
$
(0.08)
|
131,280,873
|
Outstanding Share Data
As of May 10, 2023, there were 151,791,177 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
|
|
May 10,
2023
|
March 31,
2023
|
Common Shares issued
and outstanding
|
151,794,177
|
151,794,177
|
Options
|
9,718,126
|
9,718,126
|
Warrants
|
17,072,322
|
17,072,322
|
Additional Information
The condensed consolidated interim financial statements and
Management's Discussion and Analysis for the quarter ended
March 31, 2023, released May 10, 2023, 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 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 DriverTM) and stationary energy storage (Cell
DriverTM), 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.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.
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.