Exro Technologies Announces Second Quarter 2021 Financial Results
Entered into a strategic agreement with Linamar Corporation ("Linamar") to develop an advanced electric axle ("e-Axle") utilizing Coil Driver technology to improve cost and performance of Linamar's e-Axle product line.
Successfully completed the pilot of the Battery Control System ("BCS") in operating a second life energy storage environment.
Unveiled a new application for the Coil Driver, including the potential to dramatically reduce the cost and complexity associated with deploying electric vehicle infrastructure at scale.
The Company's common shares began trading on the Toronto Stock Exchange on July 8, 2021.
Announced the opening of a US headquarters in Mesa, Arizona, joining a robust e-mobility, and research and development ecosystem in the greater Phoenix area.
CALGARY, AB, Aug. 11, 2021 /PRNewswire/ - Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean technology company which has developed a new class of power electronics for electric motors and batteries, is pleased to announce its financial results for the quarter-ended June 30, 2021.
In June Exro announced a Strategic Development Agreement with Linamar for an Electric Drive Solution to Advance Electric Vehicle Adoption. "We are very excited for this development with Linamar, who has been a staple in auto industry manufacturing for decades," said Sue Ozdemir, Chief Executive Officer of Exro. "This strategic development agreement marks one of our biggest milestones to date and represents a huge opportunity for us to become an integral part of the electric vehicle ("EV") supply chain for major automotive companies."
The past few months have included strong investment in the progress of research and development ("R&D") and manufacturing facilities. The Company has placed orders for additional test equipment in Calgary and Arizona to accelerate the ongoing projects. The total additional investment of $2.4 million covers key dynamometer equipment, and $0.2 million has been spent in ordering the equipment as of June 30, 2021. Exro is also gearing up its world class automotive facility in Calgary. This will include the building of an automotive standard surface-mount technology ("SMT") production and printed-circuit board ("PCB") assembly lines in the 37,000 square foot facility, with anticipation of future orders and production of the Coil Driver products as previously announced. $17 million has been allocated to invest in this state of art facility. As at the end of June 2021, the Company has spent approximately $2 million against the $17 million planned investment.
In July, Exro unveiled a new application for the Coil Driver technology to reduce the cost and complexity of deploying EV infrastructure at scale. Currently, EVs require three different types of power electronics components to power the vehicles in motion and charge the batteries from the grid or renewable energy sources: a motor drive, on-board charger, and external DC fast charger. Exro engineers found that the Coil Driver technology has the ability to replace all three components. "Unlocking the ability for the Coil Driverᵀᴹ to simplify and streamline fast charger deployments for charge point operators and automakers has the potential to be a game changer," said Exro CEO Sue Ozdemir.
Q2 2021 FINANCIAL HIGHLIGHTS
For the six months ended June 30, 2021
Comprehensive loss of $10,419,364 (Q2 2020 – $3,771,451).
Selling, general and administration expense increased by $747,853 to $1,928,897
Payroll and consulting fees increased by $1,131,199 to $2,721,804
Research and development increased by $2,547,165 to $3,023,177
Share based payments expense increased by $4,706,198 to $5,027,511
For the three months ended June 30, 2021
Comprehensive loss of $3,742,844 (Q2 2020 – $2,246,269).
Selling, general and administration expense increased by $273,281 to $1,008,925
Payroll and consulting fees increased by $623,946 to $1,495,974
Research and development increased by $1,021,895 to $1,322,025
Share based payments expense increased by $2,499,476 to $2,676,106
The main drivers for the overall cost increases are 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 535% for the six months ended June 30, 2021, due to the increase of several validation projects for commercialization and continued research and development on next generation Coil Driverᵀᴹ and BCS technology. Exro remains focused on intelligently utilizing capital to attract top talent across all business functions and increasing brand awareness.
SECOND QUARTER OPERATING HIGHLIGHTS
On April 6, 2021, the Company issued 1,100,000 stock options to certain directors, employees, and consultants with an exercise price of $4.77 per common share. The options are exercisable for a period of five years from the grant date. 1,050,000 of the options granted will vest 33% six months after grant, 33% twelve months after grant and the remaining 18 months after grant. The remaining 50,000 stock options granted will vest 25,000 on April 30, 2021 and 25,000 on December 31, 2021.
On April 27, 2021, the Company announced that it has signed a supply agreement with Vicinity to deploy Exro enhanced electric buses. Vicinity (formerly Grande West Transportation Group) is a leading supplier of advanced shuttle transportation vehicles for public and commercial use. Exro will supply the Coil Drive System technology and Vicinity will conduct operational validation through deployment of an optimized electric powertrain for Vicinity's suite of electric buses. The Coil Drive System solution is expected to enable the next generation of electric buses with improved performance that accelerates the transition to a sustainable public transit system. Vicinity will test and validate the Coil Driver powertrain integration with the intent of implementing it in future serial production batches of the electric bus product line.
On June 17, 2021, Exro announced a strategic development agreement with Linamar, a global powerhouse in automobile parts manufacturing, to develop an advanced electric drive solution for electric vehicles. Linamar and Exro have agreed to develop an advanced e-Axle utilizing Coil Driver technology to improve cost and performance of Linamar's e-Axle product line. An e-Axle is an integrated electric drive solution for battery electric vehicles ("BEV") or fuel cell electric vehicles ("FCEV"). The integrated solution aims to provide better manufacturing costs and a more efficient volume usage, without sacrificing key performance capabilities.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2021, the Company had cash of $33,503,667 and amounts receivable of $124,219, which primarily consist of GST refund. The Company had accounts payable and accrued liabilities of $1,244,958.
