CALGARY, Alberta, Aug. 29, 2024 (GLOBE NEWSWIRE) — Eguana Applied sciences Inc. (TSXV: EGT) (OTCQB: EGTYF) (Eguana or the Firm), a number one supplier of high-performance vitality storage techniques, experiences monetary outcomes for the second quarter ended June 30, 2024.
Second Quarter 2024
- Q2 2024 income of $0.7 million, a decline from the comparative quarter in June 2022 with income of roughly $2.1 million. 2024 revenues stay constrained by a slower than anticipated restoration of the residential rooftop photo voltaic market.
- Q2 2024 gross margin is stronger than prior quarters, at roughly 10% as in contrast roughly 0% for the prior comparative quarter for June 2023. The constructive margin achieve was pushed by a change in product combine versus the comparative quarter.
- Q2 2024 working lack of $2.1 million, a lower from a $4.1 million working loss for the comparative June quarter in 2023. This lower is because of decrease bills in all expense classes, associated to personnel reductions and general price reductions.
- Working capital at June 30, 2024 was detrimental $1.0 million, a lower from $5.0 million at December 31, 2022. The lower pertains to ongoing money utilized in operations.
- At June 30, 2024, the Firm has a big overdue accounts receivable stability from one buyer of which roughly $7.4 million, which is offset by an anticipated credit score loss (ECL) of $7.4 million, thus exhibiting a web receivable of solely $nil, reflecting gradual funds, missed agreed funds and general assortment threat. Though the shopper has been delayed in making funds, progress funds have been acquired persistently over the previous 60 days, because the buyer developed a brand new gross sales channel and has elevated gross sales. The Firm evaluations the anticipated credit score loss quarterly and the place acceptable adjusts the ECL estimate, in keeping with usually accepted accounting ideas. Throughout the three months ended June 2024, a value concession was offered to this buyer that resulted in a credit score to accounts receivable, with an offset to ECL of $415,000 USD. Primarily based on new market info for stock beforehand bought to the shopper, and in good religion, the Firm agreed to a one-time credit score, reflecting market pricing by means of a brand new gross sales channel that’s now accessible however solely at a decrease particular promoting value. This doesn’t affect the Firm’s current stock. For the three months ended June 30, 2024, the Firm recorded different small reductions in ECL to replicate worth acquired from stock obtained as an offset to web accounts receivable with the key buyer and funds acquired. Because of this, the Firm has an anticipated credit score loss provision for this buyer at June 30, 2024, within the quantity of $7.4 million.
- Throughout June 2024, the Firm began the formal course of for liquidation of its German subsidiary. The gross sales alternatives in German didn’t materialize and the Firm made the choice to chop prices and put further focus and assets on North American Digital Energy Plant (VPP) utility markets. At June 30, 2024, the Firm took a $0.2 million write down of inventory associated to the European market and recorded $0.3 million of accrued liabilities associated to estimated personnel and closure prices. The German subsidiary is categorized as discontinued operations and a lack of discontinued operations was recorded for the six months ended June 30, 2024 of $0.8 million.
- Throughout 2024, the Firm negotiated varied fee delays and deferrals with the lender of its senior long-term debt (the Lender). On Could 7, 2024, the Firm entered right into a forbearance settlement with the Lender whereby the Lender has agreed to a deferral of funds as much as and together with June 1, 2024, predicated on subjective situations that if not complied with render the forbearance to be terminated, for which the Firm complied. This settlement coated the interval ended June 30, 2024. Subsequent to this latest quarter finish, the Firm missed a negotiated curiosity solely fee in July and an anticipated August common amortization fee, transferring the mortgage into formal default. In August 2024, the Lender offered an up to date forbearance settlement whereby the Lender has agreed to a deferral of funds as much as and together with September 1, 2024, predicated on the identical subjective situations that if not complied with render the forbearance to be terminated. Negotiations with the lender stay constructive and ongoing and the Lender has not taken any motion.
- In July 2024, the Firm was notified, by the OTCQB within the USA, of the low buying and selling value for the inventory and potential removing of the EGTYF inventory from the OTCQB market. The Firm plans to keep up the itemizing on the pink market, till such time migration again to the OTCQB is feasible and acceptable.
The Condensed Unaudited Consolidated Monetary Statements and the Administration Dialogue and Evaluation thereof, for the three and the six months ended June 30, 2024, can be found on SEDAR+ at www.sedarplus.ca.
Annual Basic and Particular Assembly (AGSM) Date Confirmed
The Firm has introduced the Firm’s AGSM. The AGSM will probably be held on September 26, 2024, at 10:00 am mountain time, in Calgary Alberta, and nearly with an internet portal. Additional info concerning the AGSM is included in a administration info round, which has been ready by the Firm and filed on SEDAR+. Given the upcoming AGSM, the common quarterly convention name is deferred and a full firm replace will probably be accessible instantly after the convention name for the AGSM.
About Eguana Applied sciences Inc.
Eguana’s imaginative and prescient is to speed up grid modernization and resilience, by delivering versatile, modular, and cost-effective options to conventional grid upgrades. Our expertise supplies worth to all key stakeholders – from the buyer, to the electrical energy retailer, the distribution utility, and the system operator.
Eguana Applied sciences connects utilities with shoppers, by means of its high-performance industrial and residential vitality storage options. Eguana’s vertically built-in product suite has been designed from the bottom up, with each the top person and the utility in thoughts, to transition the ability grid seamlessly.
Manufactured in native amenities throughout the globe to make sure compliance and high quality, Eguana’s standardized platform permits the pliability to make sure every product answer is optimized to be used in main grid modernization markets.
To study extra, go to www.EguanaTech.com or observe Eguana on LinkedIn and @EguanaTech on X.
Firm Inquiries
Justin Holland
CEO, Eguana Applied sciences Inc.
+1.416.728.7635
Justin.Holland@EguanaTech.com
Ahead Trying Statements
The reader is suggested that every one info herein, apart from statements of historic truth, might represent forward-looking statements and forward-looking info (collectively, “forward-looking statements“) throughout the which means assigned by Nationwide Instrument 51-102 – Steady Disclosure Obligations and different related securities laws. Particularly, forward-looking statements embrace, amongst different issues, statements concerning the Firm’s potential to gather overdue accounts receivable, together with the timing and chance of such collections or settlements in form; the affect of the newly developed gross sales channel by a significant buyer on the Firm’s monetary efficiency; any potential results of the worth concession granted to the shopper; the monetary implications of the liquidation of the Firm’s German subsidiary, together with the related prices; the shift in strategic focus to the North American VPP utility markets; the Firm’s ongoing negotiations and agreements with its long-term debt lender; and the potential dangers associated to the Firm’s itemizing standing on the OTCQB market.
Ahead-looking statements usually are not a assure of future efficiency and includes various dangers and uncertainties. Many elements may trigger the Firm’s precise outcomes, efficiency or achievements, or future occasions or developments, to vary materially from these expressed or implied by the forward-looking info. Such elements embrace, however usually are not restricted to, dangers related to: failure by the Firm to enhance money stream which might have a fabric antagonistic affect on the viability of the enterprise to proceed working; the well timed assortment of accounts receivable; the affect of ongoing market situations on stock valuation; profitable negotiations and/or amendments with and to current long-term debt lenders; continued help and success working with distributors and landlords; the potential results of late and delayed vendor and contractual funds and any affect on the corporate’s popularity, credit score worthiness and provider relationships; worker morale, departures and productiveness loss when working beneath constrained monetary situations; unanticipated results of any formal long-term debt default; the monetary and operational results of discontinuing the German subsidiary; the chance of delisting from the OTCQB market; potential authorized claims; potential of administration to handle money stream in a low liquidity state of affairs; potential to boost capital in debt or fairness, as wanted, on acceptable phrases; common financial, market and enterprise situations; aggressive elements; attaining strategic aims; efficient implementation and deployment of Eguana options and constructing further partnerships and growing current partnerships; the Firm’s potential to roll out further utility pilot and VPP applications and demonstrations or deployment; the operational effectiveness and effectivity of the merchandise when in use; a slower adoption of vitality storage applied sciences; inventory efficiency; and different elements as could also be set out within the Firm’s steady disclosure filings sometimes , which can be discovered on its web site or at www.sedarplus.ca. Readers are cautioned to not place undue reliance on forward-looking info, which speaks solely as of the date hereof. The Firm doesn’t undertake any obligation to launch publicly any revisions to forward-looking statements contained herein to replicate occasions or circumstances that happen after the date hereof or to replicate the prevalence of unanticipated occasions, besides as could also be required beneath relevant securities legal guidelines.
Neither the TSXV nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSXV) accepts accountability for the adequacy or accuracy of this information launch.
Supply: Eguana Applied sciences Inc.
