- Exro generated revenue of $2.2
million for the twelve months that ended December 31, 2022.
- Successfully completed phase one of the integrated e-axle
co-development program with strategic partner, and major tier-1 OEM
supplier, Linamar Corporation.
- Exro Vehicle Systems Inc., a services arm to provide vehicle
integration solutions for automakers pursuing electrification,
successfully completed, and delivered multiple projects to
customers.
- Successfully closed convertible debenture financing for
gross proceeds of $15.0 million on
December 30, 2022.
- Strong financial position as of March
30, 2023, supported by the exercise of approximately 4.7
million warrants in Q1 2023 for proceeds of approximately
$6.9 million.
CALGARY,
AB, March 30, 2023 /PRNewswire/ - Exro
Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the
"Company" or "Exro"), a leading clean technology
company that has developed new generation power control electronics
that expand the capabilities of electric motors and batteries, is
pleased to announce today its financial results for the year-ended
December 31, 2022.
Fourth Quarter Operating
Highlights
On October 5, 2022, Exro announced
the signing of a new product development agreement with a major
global automotive equipment supplier. The agreement includes the
development and delivery of an engineered-to-order system
incorporating Exro's proprietary Coil-Driver™ inverter for a new
hybrid diesel-electric product for off-highway applications (for
example: agriculture, construction, mining, etc.). After successful
testing and validation through H1 2023, it is anticipated that the
development agreement would transition into an agreement to supply
the NDA partner with series production products. The conditional
agreement is highlighted by projections of 8,000-10,000+ units
annually.
On November 21, 2022, Exro
announced the Company achieved International Organization for
Standardization (ISO) ISO 9001:2015
certification at its world-class manufacturing center and
engineering innovation center, both located in Calgary, Alberta, Canada. This certified that
the Company has met the technical and quality benchmarks required
by ISO 9001:2015 for its quality management system related to
R&D, design, development, and testing of the Coil Driver™
inverter for e-mobility and Cell Driver™ energy storage systems for
commercial & industrial applications.
In Q4 2022, Exro also announced the completion of phase one of
its integrated e-axle program with Linamar Corporation by providing
800V Coil Driver™ samples. Through Q1 2023 the partners have
transitioned to phase two involving additional dynamometer testing
and on-road validation in a commercial vehicle by Linamar.
Following the successful validation of the e-Axle program, the
partners anticipate entering into a definitive agreement that would
set volume production beginning in 2024.
In Q4 2022 Exro successfully piloted an HB4 motor with a
low-voltage Coil Driver™ in a small passenger car with an Italian
electric vehicle OEM. Subsequently, HB4 has signed a purchase
agreement that forecasts HB4 placing an initial stock order to
supply its customers with a baseload of Coil Driver™ beginning in
Q3 2023 with the anticipation for growing volumes over an initial
3-year term. Exro, together with HB4, will co-market the products
in Italy and Europe on a non-exclusive basis. Exro had been
working with HB4 under NDA for more than 2 years.
On December 30, 2022, Exro
announced the closing of a brokered private placement offering.
Pursuant to the Offering, Exro sold 15,000 units of the Company at
a price of $1,000 per Unit, for
aggregate gross proceeds of $15,000,000. Each Unit consists of one senior
secured convertible debenture in the principal amount of
$1,000 each and 416 common share
purchase warrants of the Company.
On February 7, 2023, Exro
announced it had 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, Exro
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 to be tested in Q3 2023. Upon
successful completion of automotive dynamometer testing, including
achievement of mutually agreed on 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.
Subsequent to December 31, 2022, through to March 30,
2023, the Company received total proceeds of $6,862,129 from the exercise of 4,730,397
warrants at a weighted average exercise price of $1.40 and 226,550 options at a weighted exercise
price of $1.02.
Additionally, effective March 13,
2023, Exro announces the retirement of Mr. Frank Borowicz from the Company's Board of
Directors. Mr. Borowicz has been a long-standing Director of the
Company, having joined the Board in 2017. Exro would like to thank
Mr. Borowicz for his many contributions and years of service to the
Board and the Company
Fourth Quarter 2022 Financial
Highlights
For the twelve months ended December 31, 2022
- Revenue of $2,185,448 (2021 –
nil).
- Comprehensive loss of $39,495,905
(2021 – $24,609,078).
- Selling, general and administration expenses increased by
$5,720,965 to $11,119,270.
- Payroll and consulting fees increased by $6,445,688 to $13,786,604.
- Research and development increased by $1,357,561 to $8,765,501.
- Share based payments expenses decreased by $7,183,818 to $2,605,472.
For the three months ended December 31, 2022
- Revenue of $1,807,859 (2021 –
nil).
- Comprehensive loss of $12,351,145
(Q4 2021 – $6,537,368).
- Selling, general and administration expenses increased by
$764,420 to $2,598,592.
- Payroll and consulting fees increased by $851,909 to $3,678,644.
- Research and development increased by $280,088 to $2,645,548.
- Share based payments expense decreased by $1,858,198 to $377,913.
The Company saw revenue generated of $2,185,448 for the twelve months ended
December 31, 2022, through the execution of engineering
services agreements, including delivery of a major project awarded
in early 2022 to design a custom electric powertrain system with a
custom battery pack solution for a light-duty on-road vehicle for a
leading Teir-1 supplier.
The Company experienced an increase in operating costs as a
result of a higher headcount throughout 2022. This was comprised of
an increase related to the Company's Engineering Services division,
Exro Vehicle Systems, which began operations in November 2021, as well as resources required to
deliver on its partnerships, in order to reach the start of
production in 2023. Additional costs were incurred on legal fees
related to litigation, and software costs related to the delivery
and validation of Exro's Coil DriverTM and Cell
DriverTM.
Liquidity and Capital
Resources
As of December 31, 2022, the Company had cash of
$17,443,971 and amounts receivable of
$965,084. The Company had accounts
payable and accrued liabilities of $5,507,335.
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,
2022
|
$
2,185,448
|
$
(39,495,905)
|
$
(0.29)
|
137,685,067
|
December 31,
2021
|
$
—
|
$
(24,609,078)
|
$
(0.20)
|
120,133,748
|
Outstanding Share Data
As of March 30, 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
|
|
March 30,
2023
|
December 31,
2022
|
Common Shares issued
and outstanding
|
151,791,177
|
146,834,230
|
Options
|
9,718,126
|
9,629,531
|
Warrants
|
17,073,322
|
21,803,719
|
Additional Information
The audited consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2022,
released March 30, 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 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.
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.
his 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.