Exro Launches Post-Acquisition Transformation and Releases Q1 Financial Results
"The progress made since
Operational Update
Exro proactively shifted strategies with the acquisition of
During the first quarter of 2024, Exro's attention was focused both on completing the
The closing of the
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Revenue: A steady ramp in deliveries with our blue-chip OEM customers will result in strong revenue growth in 2024 and beyond. The newly combined entity provides a combination of complementary skills and experience and has already demonstrated improved operational results. The Company remains committed to delivering over 250 propulsion systems during the first six months post-close and is executing a plan to achieve cash flow positive by Q2 2025.
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Costs: Exro is implementing rigorous team integration and cost cutting measures which target an annualized reduction in General & Administrative expenses of up to
US$10 million in 2024. SinceApril 5 th, Exro has already recognized an initialUS$5 million in annualized savings through redundancies, supply chain efficiencies, and optimized business operations. The Company has a plan in place to deliver further savings through facilities rationalization, a focus on execution, and continued operational optimization. The Company anticipates additional efficiencies to be realized and aligned with a targeted path to profitability by Q2 2025. In line with this, Exro is also currently in late-stage discussions with financial institutions to secure non-dilutive working capital that will further support its accelerated growth. These discussions reflect the company's commitment to strategically fortifying its financial infrastructure to seize emerging opportunities and drive sustained expansion. - Technology: Exro is engaged in technical review discussions with its industry-leading OEM partners to integrate our Coil Driver™ inverters into core propulsion systems. These discussions include existing platforms currently being delivered as well as new programs being developed. Validating our initial acquisition strategic rational, it is anticipated that Coil DriverTM pilots will begin with these partners in Q3 2024, bringing higher performance and lower costs which would support a future where the Coil DriverTM inverter becomes a core component of all existing SEA-Drive® propulsion system agreements.
Exro's innovation program with its leading global passenger vehicle automotive OEM under NDA continues to progress well through phase two, which includes deliveries of Coil DriverTM prototypes with optimized OEM partner's motor in 2024. The intent of this innovation program is to demonstrate the Coil Driver'sTM industry disruptive ability to reduce dependency of rare-earth metals in electric motors. This ability has also attracted the attention of other major global automotive OEMs. Exro is optimistic that ongoing discussions with these additional OEMs will lead to a second OEM innovation program announcement by the end of Q3 2024.
Exro remains on track for UL certification of its Cell Driver™ stationary energy storage system in Q2 2024, further enhancing its product portfolio and market competitiveness.
First Quarter 2024 Financial Highlights
The following is a summary from the Company's consolidated interim financial statements and Management's Discussion and Analysis for the quarter ended
For the three months |
Revenue |
Net loss |
Basic and diluted |
Weighted average |
|
|
|
|
170,077,862 |
|
|
|
|
149,820,687 |
Through Q1 2024, Exro began to reposition its business and operations in preparation for the acquisition of SEA in Q2 2024. Coil Driver™ orders were filled and delivered on time for low-volume commitments by HB4,
For the three months ended
The condensed consolidated interim financial statements and Management's Discussion and Analysis for the quarter ended
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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 using 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
Neither the
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