- Exro remains on schedule for key deliverables and milestones in
Q4 2022, including: prototype e-axle delivery to Linamar, pilots to
both Vicinity and SEA Electric, ISO certification by year-end
- First deliveries of Exro's Coil DriverTM for series
production remain on schedule to begin in Q3 2023
- Exro's Cell DriverTM on schedule to complete UL
certification requirements in Q2 2023 with discussions ongoing with
integration partners for distribution agreements
- Following a capital raise of approximately $9.8 million in September, the company exited Q3
2023 with approximately $13.1 million
in cash, funded for planned development activities into 2023
CALGARY,
AB, Nov. 10, 2022 /CNW/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the
"Company" or "Exro"), a leading clean technology
company that has developed new generation power electronics that
change how the world optimizes energy by expanding the capabilities
of electric motors and batteries, is pleased to provide an
operational update in conjunction with the filing its financial
results for the nine months ended September
30, 2022.
"We are energized, we are focused, and we are determined", said
CEO Sue Ozdemir. "Our Q3 results
demonstrate Exro's tenacity to continue to advance our products,
our partnerships, and our business through a challenging macro
environment. Despite interim delays with various items, our team
has worked hard to execute and deliver. Thanks to these efforts, we
remain on track for all key deliverables in Q4 2022, and
importantly for start of production in Q3 2023. While bringing new
technology to market is never easy, and there are bound to be
challenges ahead, internally we are excited by the potential the
next several quarters hold for our business and shareholders. Our
Coil DriverTM is de-risked and moving into customer
vehicles, our Cell DriverTM energy storage is schedule
for UL certification in Q2 2023, and the demand we are seeing for
our products is promising. We look forward to keeping our
shareholders updated regularly on our progress on their
behalf."
Operations Update
Through 2022 the Company has continued to focus on delivering
results to its strategic partners, progressing partners towards
commercialization and initial purchase orders linked to multi-year
master sales agreements. In addition, the company has been working
to onboard new partners that add to its future customer base. The
company is pleased to report that key deliverables and milestones
for Q4 2022 remain on schedule, including: e-axle prototype
delivery to Linamar, and pilots to both Vicinity and SEA Electric.
In addition, we remain optimistic about signing an additional
strategic development partnership by year-end.
- Linamar - The goal set with Linamar over 20 months ago was to
develop a next-generation e-Axle utilizing Coil Driver™ technology
to improve the cost and performance of Linamar's e-Axle product
line. The partnership with Linamar continues to be positive and
collaborative as the project advances toward a significant
milestone with handover of the prototype e-axle for testing,
scheduled to begin on November 21,
2022. The next phase will involve additional dyno testing
and on-road validation by Linamar. Following successful validation
of the e-Axle program, Exro is confident of entering into a
definitive contract that represents future commercial
collaboration.
- SEA Electric - In August, Exro announced signing of an initial
purchase order backed by multiyear agreement to supply Coil Drive
Systems (400V Coil DriverTM paired with a TSA motor) for
SEA's next generation commercial electric vehicles (an F59 delivery
truck). Delivery of pilots to this program remains on track for Q4
2022 which will be followed by on-road testing in fleet
vehicles.
- Vicinity - The companies have completed nearly 12 months of
collaboration, with the next steps to conduct operational testing
and validation for a Coil DriverTM System (400V Coil
DriverTM paired with a TSA motor) in Vicinity's
Lightning electric bus. On May 3,
2022 the Company announced a multiyear sales and service
agreement with Vicinity, in which Vicinity will purchase up to
2,500 high-voltage Coil Drive System units from Exro, along with a
production slot, system pricing and commissioning services. The
delivery of pilots to Vicinity for remains on track for Q4
2022.
- Cell DriverTM Energy Storage System. On September 27, 2022, Exro announced that the Cell
Driver™ had exceeded the first phase of testing requirements for
Underwriters Laboratories ("UL") product certification, which is
required in North America to
connect to the grid. The company remains on schedule to complete UL
certification requirements in Q2 2023. In parallel with the UL
certification process, Exro can market and secure pilots and orders
for the Cell Driver™ with commercial and industrial ("C&I")
integration partners. On September
28, Exro announced a distribution agreement with Inferno
Solar with exclusive rights to market Exro's Cell
DriverTM in Western
Canada for a period of five years. Exro continues to be in
active discussions with additional potential distribution partners
across North America.
- Next strategic development partner. As previously communicated,
following delivery of the e-Axle prototype to Linamar Exro will
have the resource capacity to onboard another strategic development
partner. The company continues the conversation with several such
potential strategic partners and remains optimistic of a project
announcement by year end.
- Manufacturing center commissioning. The crown jewel of Exro's
capabilities is the company's world-class manufacturing center in
Calgary, Alberta. Commissioning of
Surface Mount Technology (SMT) Line 1 is underway and on track Q4
completion. Importantly, the company also remains on schedule to
achieve ISO9001 certification by year-end, the foundational
precursor for IATF16949 automotive certification.
Start of Production on Schedule for Q3 2023
First deliveries of Exro's Coil DriverTM for series
production remain on schedule to begin in Q3. Exro's world-class
manufacturing facility in Calgary,
Alberta offers customers the security of North American
supply for up to 300,000 units per year. Over the coming quarters,
Exro intends to continue backfilling the facility production
capacity, building on three initial purchase-orders backed by
multi-year sales agreements announced since Q2 2022, in addition to
a new product development with an NDA partner announced in October,
to de-risk visibility for shareholders to a significant revenue
ramp-up beginning in 2023.
The Exro Difference - Simplicity and Flexibility in
Design
When you think Exro, think 'experts in power electronics'. The
company delivers scalable and flexible customer solutions that
increase performance and lower costs via a new generation of power
electronics for electric vehicles (Coil DriverTM) and
stationary energy storage (Cell DriverTM).
An electric motor in e-mobility is only as smart as the
controller telling it how to behave. Exro's theory is that if the
company made the controller smarter, it could increase the
performance of the entire powertrain. Exro accomplishes this with a
new generation of power control electronics called the Coil
DriverTM. The Coil DriverTM takes the
prior-art physics of coil-switching and provides the ability to
control an electric motor at the individual coil-level through the
power electronics embedded in the inverter. This coil-level control
provides the ability to switch motor profiles in real-time to
deliver two separate speed-torque profiles from the same motor,
effectively expanding the operating range of the motor by
functioning like an electronic gear. This allows manufacturers
significant flexibility in design: Exro's technology can increase
performance by up to 50% for a marginal cost increase or can
optimize the system to reduce the weight, complexity, and up to 20%
cost savings of their powertrains without sacrificing performance.
The company's Coil DriverTM technology is now proven,
independently validated through AVL, one of the world's largest
independent automotive laboratories, and this year has received two
notable independent product awards: the Edison Gold Award for Best New Product in
Manufacturing, Logistics and Transportation, and the Autotech
Breakthrough Award for Engine Tech Innovation of the Year.
Exro's vision is to be the most innovative power controls
company that leads the transition to a sustainable electrified
world. Though our vision we are driven by perpetual innovation that
develops next generation control for motors and batteries.
Utilizing the Coil DriverTM motor control has allowed
the company to develop a new battery control, the Cell
DriverTM. Exro's Cell Driver™ is equipped with the
company's battery control system technology, next-generation
innovation that expands the capabilities of batteries by
dynamically monitoring and controlling at the cell level. Its
ability to store excess clean solar power reduces energy costs for
large power consumers by enabling greater control over when they
draw electricity from their local utility grid. Electricity rates
vary based on when and how unique power sources are used, and
energy stored in Exro's Cell Driver™ can be used to power EV
charging stations and C&I facilities when rates are higher to
keep energy costs low. While applicable for new batteries, the
primary objective of Exro's Cell Driver™ technology is to provide
an effective solution for second-life applications, providing
significant cost savings by reviving and utilizing used EV and
telecom batteries for a second-life application. Enabling reuse of
these cells is critical to reducing the environmental and climate
change impacts associated with battery recycling and disposal and
offering a real-world solution that leads the way to a circular
electrified economy.
THIRD QUARTER 2022 FINANCIAL HIGHLIGHTS
For the nine months ended September 30,
2022
- Comprehensive loss of $26,524,493
(2021 – $18,063,147).
- Selling, general and administration expense increased by
$4,956,545 to $8,520,678
- Payroll and consulting fees increased by $5,593,779 to $10,107,960
- Research and development increased by $1,077,473 to $6,119,953
- Share based payments expense decreased by $5,325,620 to $2,227,559
For the three months ended September 30,
2022
- Comprehensive loss of $7,613,152
(2021 – $7,632,444).
- Selling, general and administration expense increased by
$1,061,617 to $2,696,853
- Payroll and consulting fees increased by $2,244,550 to $4,036,927
- Research and development decreased by $186,462 to $1,832,841
- Share based payments expense decreased by $1,838,007 to $687,661
As the Company continues to advance the development of its Coil
Driver™ and Cell Driver™, comprehensive loss continues to increase
in connection. Additional costs incurred are related in large to
the growing headcount to support the expanded operations and
commercialization of the Company's products. As the Company
continues to progress additional resources are required in order to
meet both the short and long-term goals linked to
commercialization. Research and development expenses increased by
21% for the nine months ended September 30,
2022, as the Company continues to deliver against it's
strategic and commercial partnership projects. Exro continues to
recruit top talents and increase the awareness of its technologies
and progress.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2022, the Company had cash of
$13,114,483 and amounts receivable of
$130,473, which primarily consist of
amounts owing to Exro Vehicle Systems Inc. for engineering services
performed, and a GST refund. The Company had accounts payable and
accrued liabilities of $4,093,351.
RESULTS OF OPERATIONS AND SELECTED FINANCIAL DATA
For the nine months
ended
|
Other comprehensive
loss
|
Basic and diluted
loss
per common share
|
Weighted average
number of common shares
|
September 30,
2022
|
$(26,524,493)
|
$(0.20)
|
134,809,695
|
September 30,
2021
|
$(18,041,594)
|
$(0.15)
|
119,893,151
|
OUTSTANDING SHARE DATA
As of November 10, 2022, there were 145,925,620 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
|
|
November 10,
2022
|
September 30,
2022
|
Common Shares issued
and outstanding
|
145,925,620
|
145,825,620
|
Options
|
9,640,216
|
9,740,216
|
Warrants
|
17,021,679
|
17,021,679
|
ADDITIONAL INFORMATION
The audited consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2021, 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.
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, 2021, and financial
statements and related MD&A for the financial year ended
December 31, 2021, 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.