New Risk • Sep 04
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: CA$11.5m (US$8.28m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$53m free cash flow). Share price has been highly volatile over the past 3 months (21% average weekly change). Negative equity (-CA$75m). Earnings have declined by 67% per year over the past 5 years. Shareholders have been substantially diluted in the past year (64% increase in shares outstanding). Market cap is less than US$10m (CA$11.5m market cap, or US$8.28m). New Risk • Aug 15
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$53m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$53m free cash flow). Negative equity (-CA$75m). Earnings have declined by 67% per year over the past 5 years. Shareholders have been substantially diluted in the past year (64% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (CA$43.0m market cap, or US$31.1m). Reported Earnings • Aug 15
Second quarter 2025 earnings released: CA$0.14 loss per share (vs CA$0.052 loss in 2Q 2024) Second quarter 2025 results: CA$0.14 loss per share (further deteriorated from CA$0.052 loss in 2Q 2024). Revenue: CA$2.90m (down 45% from 2Q 2024). Net loss: CA$81.7m (loss widened 223% from 2Q 2024). Revenue is forecast to grow 81% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electrical industry in Canada. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has fallen by 60% per year, which means it is performing significantly worse than earnings. New Risk • Jun 15
New major risk - Revenue and earnings growth Earnings have declined by 67% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$61m free cash flow). Share price has been highly volatile over the past 3 months (24% average weekly change). Negative equity (-CA$56k). Earnings have declined by 67% per year over the past 5 years. Shareholders have been substantially diluted in the past year (61% increase in shares outstanding). Minor Risk Market cap is less than US$100m (CA$42.0m market cap, or US$30.9m). New Risk • May 16
New major risk - Revenue and earnings growth Earnings have declined by 67% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$53m free cash flow). Share price has been highly volatile over the past 3 months (25% average weekly change). Earnings have declined by 67% per year over the past 5 years. Shareholders have been substantially diluted in the past year (61% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable next year (CA$62m net loss next year). Market cap is less than US$100m (CA$75.5m market cap, or US$54.0m). Announcement • May 02
Exro Technologies Inc., Annual General Meeting, Jun 25, 2025 Exro Technologies Inc., Annual General Meeting, Jun 25, 2025. New Risk • Apr 22
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 24% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$53m free cash flow). Share price has been highly volatile over the past 3 months (24% average weekly change). Shareholders have been substantially diluted in the past year (58% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (CA$56m net loss in 2 years). Market cap is less than US$100m (CA$44.0m market cap, or US$31.8m). Major Estimate Revision • Apr 02
Consensus revenue estimates decrease by 51% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CA$97.4m to CA$47.8m. EPS estimate unchanged from -CA$0.10 per share at last update. Electrical industry in Canada expected to see average net income growth of 28% next year. Consensus price target down from CA$0.46 to CA$0.26. Share price fell 20% to CA$0.08 over the past week. Announcement • Nov 28
Exro Technologies Inc. Learns of Threatened Lawsuit Filed in the Court of the King's Bench, Alberta Exro Technologies Inc. has learned of a threatened class action lawsuit in respect of which a statement of claim has been filed in the Court of the King's Bench, Alberta. Exro has not yet been served with the statement of claim but anticipates this will happen shortly. The claim is a proposed securities class action on behalf of the investors who purchased the securities of Exro in the secondary market or the primary market between January 30 and November 13, 2024 (the "Class Members"). Exro, its CEO and the chair of Exro's board of directors are among other defendants named in the statement of claim. The plaintiff says that the action arises out of the merger transaction between Exro Technologies and SEA Electric which closed on April 5, 2024, and alleges that the Class Member incurred damages or losses on their investments in Exro securities as a result of misrepresentations contained in a material change report filed by Exro on January 30, 2024. The plaintiff seeks certification of the action as a class action and his appointment as a class representative, a declaration that the January 30, 2024, contains misrepresentations, and a variety of remedies including an award of damages to the Class Members. Exro disputes the allegations contained in the statement of claim, and intends to defend the claim vigorously. Major Estimate Revision • Nov 20
Consensus EPS estimates fall by 212% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CA$27.9m to CA$26.4m. Losses expected to increase from CA$0.20 per share to CA$0.64. Electrical industry in Canada expected to see average net income growth of 21% next year. Consensus price target of CA$0.46 unchanged from last update. Share price fell 38% to CA$0.17 over the past week. Announcement • Nov 06
Exro Technologies Inc. to Report Q3, 2024 Results on Nov 13, 2024 Exro Technologies Inc. announced that they will report Q3, 2024 results After-Market on Nov 13, 2024 Major Estimate Revision • Nov 03
Consensus revenue estimates fall by 37% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CA$44.2m to CA$27.9m. Forecast losses increased from -CA$0.192 to -CA$0.205 per share. Electrical industry in Canada expected to see average net income growth of 18% next year. Consensus price target down from CA$0.59 to CA$0.49. Share price fell 17% to CA$0.13 over the past week. Major Estimate Revision • Sep 24
Consensus revenue estimates decrease by 23%, EPS upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from CA$63.0m to CA$48.6m. EPS estimate increased from -CA$0.21 to -CA$0.192 per share. Electrical industry in Canada expected to see average net income growth of 18% next year. Consensus price target down from CA$0.88 to CA$0.61. Share price fell 2.7% to CA$0.27 over the past week. Announcement • Sep 13
Exro Technologies Inc. has completed a Composite Units Offering in the amount of CAD 25.00015 million. Exro Technologies Inc. has completed a Composite Units Offering in the amount of CAD 25.00015 million.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 71,429,000
Price\Range: CAD 0.35
Discount Per Security: CAD 0.028 Announcement • Sep 05
Exro Technologies Inc. has filed a Follow-on Equity Offering. Exro Technologies Inc. has filed a Follow-on Equity Offering.
Security Name: Units
Security Type: Equity/Derivative Unit
Securities Offered: 85,715,000 Major Estimate Revision • Aug 21
Consensus revenue estimates fall by 51% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CA$129.7m to CA$63.0m. Forecast losses increased from -CA$0.16 to -CA$0.21 per share. Electrical industry in Canada expected to see average net income growth of 19% next year. Consensus price target down from CA$1.28 to CA$0.89. Share price fell 38% to CA$0.33 over the past week. Reported Earnings • Aug 16
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: CA$0.052 loss per share. Net loss: CA$25.3m (loss widened 95% from 2Q 2023). Revenue missed analyst estimates by 72%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 147% p.a. on average during the next 2 years, compared to a 26% growth forecast for the Electrical industry in Canada. New Risk • Aug 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 15% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$45m free cash flow). Shareholders have been substantially diluted in the past year (107% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable next year (CA$49m net loss next year). Share price has been volatile over the past 3 months (15% average weekly change). Revenue is less than US$5m (CA$6.7m revenue, or US$4.9m). Announcement • Aug 14
Exro Advances Medium Duty Battery Electric Powertrain Integration with Coil Driver™ Project Exro Technologies Inc. announced progression in its integration project of Exro's Coil Driver™ inverter technology with Exro's proprietary EV propulsion system that powers SEA 5e, a Class 5 Battery Electric Truck that is built on Hino's Class 5 Rolling Cab Chassis. The pilot project is a key step towards commercialization and enables a cost-effective powertrain that supports the mission to reduce costs in commercial electric vehicles, bringing electric vehicles to parity with combustion engines. Exro's 120a propulsion system, controlled by the Coil Driver inverter, can increase system efficiency and reduce costs. By optimizing the performance of powertrains with right-sized, differentiating technology, the result is real-world driving with unparalleled efficiency. The integration offers flexibility in packaging, allowing multiple truck bed configurations from the existing 173" platform currently in production to a 150" wheelbase in demand by large national fleets under development for release to customers by First Quarter 2025. The transportation sector targets significant emission reduction targets. The goals behind the project align with the regulatory landscape shaped by the Advanced Clean Truck ("ACT") and Advanced Clean Fleet ("?") standards. These regulations, adopted in California and several other states, mandate a gradual increase in zero-emission vehicles ("ZEVs") in commercial fleets starting from 2024. By incorporating Coil Drive inverter technology, Exro is contributing to the broader adoption of ZEVs. This collaboration supports compliance with the ACT and ACF regulations and promotes emissions reduction from the commercial transportation sector. The enhanced efficiency and cost-effectiveness of the Coil Driver-enabled propulsion system make electric trucks a viable option for fleet operators, accelerating the transition to cleaner transportation solutions. Major Estimate Revision • May 31
Consensus revenue estimates increase by 13%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CA$123.5m to CA$139.1m. EPS estimate fell from -CA$0.143 to -CA$0.155 per share. Electrical industry in Canada expected to see average net income growth of 15% next year. Consensus price target down from CA$1.59 to CA$1.28. Share price fell 8.3% to CA$0.66 over the past week. Price Target Changed • May 30
Price target decreased by 22% to CA$1.28 Down from CA$1.64, the current price target is an average from 4 analysts. New target price is 93% above last closing price of CA$0.66. Stock is down 69% over the past year. The company is forecast to post a net loss per share of CA$0.15 next year compared to a net loss per share of CA$0.31 last year. Major Estimate Revision • May 23
Consensus revenue estimates fall by 34% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CA$186.5m to CA$123.5m. Forecast losses increased from -CA$0.127 to -CA$0.143 per share. Electrical industry in Canada expected to see average net income growth of 14% next year. Consensus price target down from CA$1.64 to CA$1.59. Share price rose 5.7% to CA$0.74 over the past week. Reported Earnings • May 17
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: CA$0.076 loss per share (further deteriorated from CA$0.054 loss in 1Q 2023). Revenue: CA$1.26m (up 289% from 1Q 2023). Net loss: CA$12.9m (loss widened 58% from 1Q 2023). Revenue missed analyst estimates by 53%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 50% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electrical industry in Canada. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 43% per year, which means it is performing significantly worse than earnings. Board Change • Apr 19
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 5 experienced directors. No highly experienced directors. CEO & Director Sue Ozdemir is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Apr 07
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 130% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (130% increase in shares outstanding). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (CA$56m net loss in 3 years). Revenue is less than US$5m (CA$5.7m revenue, or US$4.2m). New Risk • Apr 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.8% per year for the foreseeable future. Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (CA$56m net loss in 3 years). Shareholders have been diluted in the past year (12% increase in shares outstanding). Revenue is less than US$5m (CA$5.7m revenue, or US$4.2m). Reported Earnings • Apr 02
Full year 2023 earnings released: CA$0.31 loss per share (vs CA$0.29 loss in FY 2022) Full year 2023 results: CA$0.31 loss per share (further deteriorated from CA$0.29 loss in FY 2022). Revenue: CA$5.74m (up 163% from FY 2022). Net loss: CA$50.6m (loss widened 27% from FY 2022). Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electrical industry in Canada. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has fallen by 44% per year, which means it is performing significantly worse than earnings. Breakeven Date Change • Feb 27
No longer forecast to breakeven The 2 analysts covering Exro Technologies no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of CA$4.87m in 2024. New consensus forecast suggests the company will make a loss of CA$15.2m in 2025. New Risk • Feb 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: CA$131.0m (US$97.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (CA$42m net loss in 3 years). Shareholders have been diluted in the past year (16% increase in shares outstanding). Revenue is less than US$5m (CA$6.6m revenue, or US$4.9m). Market cap is less than US$100m (CA$131.0m market cap, or US$97.0m). Major Estimate Revision • Feb 24
Consensus revenue estimates decrease by 51% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CA$13.3m to CA$6.57m. EPS estimate unchanged from -CA$0.27 per share at last update. Electrical industry in Canada expected to see average net income growth of 17% next year. Consensus price target down from CA$2.25 to CA$1.73. Share price fell 10% to CA$0.80 over the past week. Price Target Changed • Feb 23
Price target decreased by 23% to CA$1.73 Down from CA$2.25, the current price target is an average from 2 analysts. New target price is 116% above last closing price of CA$0.80. Stock is down 68% over the past year. The company is forecast to post a net loss per share of CA$0.27 next year compared to a net loss per share of CA$0.29 last year. Announcement • Jan 31
Exro Technologies Inc. (TSX:EXRO) agreed to acquire SEA Electric LLC for approximately $300 million . Exro Technologies Inc. (TSX:EXRO) agreed to acquire SEA Electric LLC for approximately $300 million on January 29, 2024. As per the terms, the combined company will continue to operate under the name Exro Technologies Inc. and trade on the Toronto Stock Exchange (the "TSX") under the ticker symbol "EXRO". As a part of consideration, Exro will issue, based on Exro's weighted average common share price over the 10 trading days ending January 26, 2024, of $0.7680 per share, a combination of common shares (the "Exro Common Shares") and non-voting convertible preferred shares (the "Exro Convertible Shares") to SEA stockholders. Pursuant to the Merger Agreement, SEA stockholders will receive approximately 153.8 million Exro Common Shares and 168.7 million Exro Convertible Shares, on a non-diluted basis and excluding existing SEA shares held by Exro, resulting in total implied consideration issued to SEA stockholders of approximately $248 million in aggregate, based on the Reference VWAP. In addition, Exro will assume approximately $46 million in SEA net debt as part of the Transaction. The Exro Convertible Shares will be convertible into Exro Common Shares on a one-for-one basis without payment of any additional consideration and upon the satisfaction of certain conditions. The transaction is subject to Exro Technologies Inc. shareholders approval and has received the requisite approvals from SEA stockholders. Also, the transaction is subject to customary closing condition. Upon completion of the Transaction, Sue Ozdemir will remain as Chief Executive Officer, Tony Fairweather will join Exro as the Chief Product Officer, and Darrell Bishop will become Chief Financial Officer. The board of directors of the Combined Company will consist of up to nine members with Rod Copes serving as Chair and the remaining directors comprised of representatives from both Exro's and SEA's current boards of directors. A termination fee of approximately $11.4 million is payable by Exro Technologies Inc. to SEA Electric LLC if the Merger Agreement is terminated in certain circumstances, including if Exro Technologies Inc. enters into a superior proposal, and Exro Technologies Inc. is entitled to a reverse termination fee of approximately $11.4 million from SEA Electric LLC if the Merger Agreement is terminated in certain circumstances. National Bank Financial Inc. acted as a financial advisor and fairness opinion provider and, Neville J. McClure of Stikeman Elliott LLP and Jason Brenkert of Dorsey and Whitney LLP acted as a legal advisor to Exro Technologies Inc. . Canaccord Genuity Corp. and Eight Capital acted as a financial advisor to SEA Electric LLC and, Gibson, John T. Gaffney and Michelle M. Gourley of Dunn and Crutcher LLP and Blake, Michael Gans and Jacob Gofman of Cassels and Graydon LLP acted as a legal advisor to SEA Electric LLC. The Transaction is expected to close by the end of first quarter of 2024. New Risk • Dec 24
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: CA$45m Forecast net loss in 3 years: CA$23m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-CA$48m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (CA$23m net loss in 3 years). Shareholders have been diluted in the past year (16% increase in shares outstanding). Revenue is less than US$5m (CA$6.6m revenue, or US$5.0m). Breakeven Date Change • Dec 24
No longer forecast to breakeven The 4 analysts covering Exro Technologies no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of CA$495.7k in 2025. New consensus forecast suggests the company will make a loss of CA$437.7k in 2025. Breakeven Date Change • Nov 18
Forecast to breakeven in 2025 The 4 analysts covering Exro Technologies expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 46% per year to 2024. The company is expected to make a profit of CA$1.60m in 2025. Average annual earnings growth of 42% is required to achieve expected profit on schedule. New Risk • Nov 17
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$48m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-CA$48m free cash flow). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (CA$28m net loss in 3 years). Shareholders have been diluted in the past year (16% increase in shares outstanding). Revenue is less than US$5m (CA$6.6m revenue, or US$4.8m). Major Estimate Revision • Nov 16
Consensus revenue estimates decrease by 48% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CA$10.8m to CA$5.60m. EPS estimate unchanged from -CA$0.26 per share at last update. Electrical industry in Canada expected to see average net income growth of 11% next year. Consensus price target of CA$2.42 unchanged from last update. Share price fell 15% to CA$1.48 over the past week. Reported Earnings • Nov 15
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: CA$0.063 loss per share (further deteriorated from CA$0.058 loss in 3Q 2022). Revenue: CA$2.03m (up CA$1.90m from 3Q 2022). Net loss: CA$10.7m (loss widened 32% from 3Q 2022). Revenue missed analyst estimates by 39%. Earnings per share (EPS) also missed analyst estimates by 9.1%. Revenue is forecast to grow 50% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Electrical industry in Canada. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Price Target Changed • Oct 26
Price target decreased by 7.2% to CA$2.78 Down from CA$3.00, the current price target is an average from 3 analysts. New target price is 80% above last closing price of CA$1.55. Stock is up 55% over the past year. The company is forecast to post a net loss per share of CA$0.25 next year compared to a net loss per share of CA$0.29 last year. Major Estimate Revision • Aug 24
Consensus revenue estimates fall by 19% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CA$15.7m to CA$12.7m. Forecast losses increased from -CA$0.24 to -CA$0.255 per share. Electrical industry in Canada expected to see average net income growth of 13% next year. Consensus price target of CA$3.05 unchanged from last update. Share price fell 4.3% to CA$2.00 over the past week. Breakeven Date Change • Aug 15
Forecast to breakeven in 2024 The 3 analysts covering Exro Technologies expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 75% to 2023. The company is expected to make a profit of CA$10.9m in 2024. Average annual earnings growth of 26% is required to achieve expected profit on schedule. New Risk • Aug 12
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -CA$42m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-CA$42m). Currently unprofitable and not forecast to become profitable over next 3 years (CA$18m net loss in 3 years). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (CA$4.7m revenue, or US$3.5m). Reported Earnings • Aug 11
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: CA$0.082 loss per share (further deteriorated from CA$0.066 loss in 2Q 2022). Net loss: CA$13.0m (loss widened 46% from 2Q 2022). Revenue exceeded analyst estimates by 31%. Earnings per share (EPS) missed analyst estimates by 33%. Revenue is forecast to grow 47% p.a. on average during the next 3 years, compared to a 31% growth forecast for the Electrical industry in Canada. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Board Change • Jul 13
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. No highly experienced directors. CEO & Director Sue Ozdemir is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Jun 23
Exro Technologies Inc. Files Two New U.S. Provisional Patent Applications Exro Technologies Inc. announced a corporate update regarding two new patent applications strengthening its intellectual property ("IP") position. In addition to prioritizing delivery of the Company's motor and battery control products, Exro has been diligently working on advancing several new technologies, which includes two new U.S. provisional patent applications on an electric vehicle powertrain architecture. The Company's first U.S. provisional application builds on the Company's Coil Driver and Cell Driver™ foundation by combining its two advanced power electronics capabilities (motor and battery control) with predictive control algorithms to deliver significant benefits to EV propulsion. This includes up to 2x increase in battery cell life, seamless integration of fuel cells without requiring additional DC-DC conversion, high level of fault tolerance, as well as the benefits that Coil Driver™ and Cell Driver™ bring individually, including range and system performance increase. While there is growing market demand for hydrogen fuel cell applications, adoption is limited by overall costs; the patent presents a solution to reduce costs and increase performance in these applications. Exro's second U.S. provisional application is directed to a harmonic motor controller or current source. Today, what is considered state-of-the-art motor control is field-oriented control ("FOC"). FOC measures a motor current and calculates the right voltage to apply to the machine to control current and torque. Though a strong concept, it presents key limitations in addressing real-world motor control challenges, particularly motor harmonics. In contrast, Exro's technology replaces the calculation of the switch states performed by FOC with a proprietary algorithm to greatly simplify motor control. As a result, the technology demonstrates high fault tolerance, responds dynamically to load or line changes, and ultimately improves harmonics across a wide variety of applications. This AC controller technology presents broad applicability to any scenario where DC-to-AC conversion is required. While Exro will continue to use trade secrets to protect proprietary software and algorithms, it will look to bolster software-related patent filings in the coming quarters. Price Target Changed • Jun 19
Price target decreased by 9.1% to CA$3.00 Down from CA$3.30, the current price target is an average from 2 analysts. New target price is 35% above last closing price of CA$2.23. Stock is up 84% over the past year. The company is forecast to post a net loss per share of CA$0.23 next year compared to a net loss per share of CA$0.29 last year. Announcement • Jun 10
Exro Technologies Inc. Announces Jill Bodkin Will Not Be Standing for Re-Election as Board Director and Chair of the Audit Committee Exro Technologies Inc. announced that Jill Bodkin, Board Director and Chair of the Audit Committee, will not be standing for re-election due to planned retirement from Exro's Board. Major Estimate Revision • May 19
Consensus revenue estimates increase by 66% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from CA$15.9m to CA$26.3m. EPS estimate unchanged from -CA$0.24 at last update. Electrical industry in Canada expected to see average net income growth of 7.8% next year. Consensus price target of CA$3.30 unchanged from last update. Share price fell 11% to CA$2.25 over the past week. Major Estimate Revision • May 17
Consensus revenue estimates increase by 66% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from CA$15.9m to CA$26.3m. Forecast losses expected to reduce from -CA$0.26 to -CA$0.24 per share. Electrical industry in Canada expected to see average net income growth of 6.8% next year. Consensus price target of CA$3.30 unchanged from last update. Share price fell 8.1% to CA$2.39 over the past week. Announcement • May 16
Exro Technologies Inc. announced that it expects to receive CAD 30.375 million in funding Exro Technologies Inc. announced that it has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp., Stifel Nicolaus Canada Inc. and Eight Capital and bought deal financing to issue 13,500,000 common shares at an issue price of CAD 2.25 per share for the gross proceeds of CAD 30,375,000. The company has granted the underwriters an option to purchase up to an additional 2,025,000 common shares to cover overallotments, if any, and for market stabilization purposes at a price of CAD 2.25 per overallotment option common share for additional gross proceeds of up to CAD 4,556,250, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing date. The transaction is scheduled to close on or about May 23, 2023, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities. Breakeven Date Change • Feb 03
Forecast to breakeven in 2024 The 2 analysts covering Exro Technologies expect the company to break even for the first time. New consensus forecast suggests the company will make a profit of CA$10.6m in 2024. Average annual earnings growth of 49% is required to achieve expected profit on schedule. Announcement • Dec 08
Exro Technologies Inc. announced that it expects to receive CAD 15 million in funding Exro Technologies Inc. announced a bought deal private placement of 15,000 units at a price of CAD 1,000 per unit for gross proceeds of CAD 15,000,000 on December 7, 2022. Each unit will consist of CAD 1,000 principal amount senior secured convertible debenture and 416 common share purchase warrants of the company. The debentures will mature on December 31, 2027 and will accrue interest at the rate of 12% per annum, payable semi-annually in arrears beginning on June 30, 2023. The Debentures may be converted into common shares of the company at any time and from time to time, up to the earlier of the maturity date and the date fixed for redemption of the debentures, at a conversion price of CAD 2.40 per common share subject to adjustment in certain circumstances. The company will be entitled to redeem the debentures at 105% of par plus accrued and unpaid interest at any time following December 31, 2024. The debentures will be secured by a first priority floating charge over all and after-acquired personal property, an assignment of all present and after-acquired intellectual property and a pledge of the securities of the company’s material subsidiaries, provided the company shall be permitted to incur an operating line of credit of up to CAD 10,000,000, secured by inventory and/or the accounts receivable of the company, which permitted indebtedness may rank equally with the debentures. Each warrant will be exercisable for one common share of the company for a period of five years from the date of issue, at an exercise price of CAD 2.40 per Warrant Share, subject to adjustment in certain events. The company has granted the Underwriters an option, exercisable in whole or in part at any time up to 48 hours prior to the closing of the Placement, to purchase up to an additional 2,250 Units. If the Underwriters exercises this option in full, the aggregate gross proceeds of the Placement will be CAD 17,250,000. The Debentures, any common shares of the company issuable thereunder, the warrants and any warrant shares sold in the placement will be subject to a four month hold period in Canada commencing on the date of closing. The transaction is expected to close on or about December 22, 2022 and is subject to customary closing conditions, including listing of the Conversion Shares and the Warrant Shares on the TSX and receipt of any required approvals of the TSX and applicable securities regulatory authorities. Recent Insider Transactions • Dec 03
Independent Director recently sold CA$136k worth of stock On the 24th of November, Frank Borowicz sold around 97k shares on-market at roughly CA$1.40 per share. This transaction amounted to 19% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$213k more than they bought in the last 12 months. Announcement • Nov 22
Exro Technologies Inc. Achieves International Organization for Standardization ISO 9001:2015 Certification Exro Technologies Inc. announced that the Company has achieved International Organization for Standardization ISO 9001:2015 certification at its world- class manufacturing center and engineering innovation center, both located in Calgary, Alberta, Canada. This certifies 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 Coil DriverTM inverter for e-mobility and Cell DriverTM energy storage systems for commercial & industrial applications. An internationally recognized quality standard, ISO 9001:2015 sets quality management principles for both service and manufacturing organizations, including a strong customer focus, a process-based approach, risk-based thinking, continual improvement, and top-down management support. In an increasingly competitive market, ISO 9001 certification is a necessary tool for conducting domestic and global business. Announcement • Nov 19
ePropelled Inc. Resolves Patent Dispute with Exro Technologies Inc ePropelled Inc. announced that it has resolved its dispute relating to the patent infringement lawsuit that ePropelled filed against Exro in the U.S. District Court for the District of Massachusetts. The parties agree that Exro's products as currently offered do not infringe upon any claim of ePropelled's U.S. Patent No. 7,382,103 ("the '103 patent"). The parties have stipulated to the dismissal of the lawsuit. The parties have also stipulated to the dismissal of the defamation suit Exro filed against ePropelled in the Superior Court of Massachusetts, and the parties have filed a motion to withdraw the Petition for Inter Partes Review Exro had filed with the United States Patent and Trademark Office challenging the validity of the '103 patent. Importantly, Exro also agreed not to make or commercialize products capable of driving a permanent magnet brushless motor having three or more winding sections per phase and capable of operating in a configuration having a combination of series and parallel windings (i.e. a hybrid phase) in any country in which ePropelled maintains its patents. Major Estimate Revision • Nov 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CA$1.32m to CA$2.09m. EPS estimate unchanged from -CA$0.27 at last update. Electrical industry in Canada expected to see average net income growth of 8.5% next year. Consensus price target of CA$2.94 unchanged from last update. Share price rose 32% to CA$1.58 over the past week. Announcement • Nov 16
Exro Technologies' Announces Resolution to Its Patent Dispute with ePropelled Inc Exro Technologies Inc. announced that it has resolved its dispute with ePropelled Inc. relating to the patent infringement lawsuit that ePropelled filed against Exro in the U.S. District Court for the District of Massachusetts. The parties have agreed that Exro's Coil Drive System™ (CDS) and Coil DriversTM do not infringe upon any claim of ePropelled's U.S. Patent No. 7,382,103 ("the '103 patent"). As a result, the parties have stipulated to the dismissal of the lawsuit with prejudice. The parties have also stipulated to the dismissal of the defamation suit Exro filed against ePropelled in the Superior Court of Massachusetts, and the parties have agreed to file a joint motion to withdraw the Petition for Inter Partes Review Exro had filed with the United States Patent and Trademark Office challenging the validity of the '103 patent. Price Target Changed • Nov 16
Price target decreased to CA$2.94 Down from CA$3.58, the current price target is an average from 4 analysts. New target price is 86% above last closing price of CA$1.58. Stock is down 54% over the past year. The company is forecast to post a net loss per share of CA$0.27 next year compared to a net loss per share of CA$0.20 last year. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. No highly experienced directors. Independent Director Jill Bodkin is the most experienced director on the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Sep 28
Exro Technologies Energy Storage System Demonstrates Industry-Leading Performance in Phase One UL Certification Tests Exro Technologies Inc. announced that the company's Cell Driver™ Energy Storage System, has successfully completed large-scale module fire testing and the first major phase towards product certification from Underwriters Laboratories. UL certification is globally recognized as the gold standard in product safety testing for energy storage, with certification required for all energy storage systems prior to connecting to the grid in North America. The tests were conducted by ESRG Lab, industry leaders in product testing, and witnessed by Intertek, a leading certification provider to industries worldwide. Results of the testing demonstrated that Exro's Cell Driver™ significantly surpassed the industry's UL9540A requirements, considered one of the primary standards for energy storage safety. Safety is a major concern and focus for the battery storage industry. While fires are rare, when they do occur, they pose considerable risk given the hazardous and volatile nature of the battery chemicals involved. The UL9540A test is designed to assess an energy storage system's ability to limit the spread of a potential fire through thermal runaway (i.e., fire propagating from one defective battery cell to others). The test involves applying a heating plate to a battery cell to artificially induce a thermal runaway event whereby the fire would spread to adjacent cells within the module under test and the energy system. Key conclusions from the independent third-party ESRG Lab report, and certified by Intertek, are summarized below: "Flaming was observed during the test, and it was within the module; however, the size of fire was too small to detect through the calorimeter used for the test.""Total smoke release from the venting point to the end of the measuring at. Total 37688 Seconds." "Thermal runaway is contained by module design."These results highlight the exceptional safety performance of Exro's Cell Driver™. More than 10 hours (37,688 seconds) was required to achieve battery module fire propagation as per the UL9540A test plan, a significant amount of time for this test. Exro's Cell Driver™ contains twenty-four modules, each module containing nine individual cells, and at the end of the test period the fire remained too small to detect and was contained within a single module. Importantly, due to the Cell Driver's design architecture and cooling features, test technicians were required to apply two additional heating plates to induce thermal runaway. Analogous to how Exro's Coil Driver™ technology for electric vehicles ("EV") expands the capabilities of electric motors given an ability to control an electric motor through the power electronics inverter down to the individual coil level, Exro's Cell Driver™ technology expands the capabilities of batteries by enabling cell level control through an innovative battery management inverter combined with advanced cell control software. With an ability to control energy at the cell level, Exro's Cell Driver™ can optimize batteries for health and performance, extending battery life and permitting stationary energy storage systems to operate more efficiently. While most energy storage systems control at a module level, and some systems monitor to a cell level, the Cell Driver™ introduces next-generation innovation to dynamically monitor and control at a cell level. Active cell balancing across Exro's Cell Driver™ enables the charging and discharging of battery cells based on their individual state-of-charge and state-of-health, while matching power demand and power quality. The solution is optimized for maximum cell lifetime, while enabling micro-protection mechanisms for enhanced safety and uninterrupted operations. These mechanisms dynamically isolate defected cells without disruptions to system operations, thereby detecting and eliminating potential thermal runaway events before they could occur. As the world moves toward higher adoption rates in the electrification transition, one of the greatest challenges that will need to be addressed in the next 5-10 years is the supply of batteries. 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. UL is widely recognized as the long-time safety science leader and the organization's expertise provides credibility to regulators and the broader marketplace. UL certifications demonstrate that products have been tested to applicable industry-wide standards. Over the course of the next seven months, Exro's Cell Driver™ technology will be tested through a host of these standards with the end goal to fully certify Exro's Cell Driver™ as a deployed commercial and industrial product per North American regulations and to receive UL9540 certification. In parallel with the UL certification process, Exro has begun marketing the Cell Driver™ and working to secure first pilots and orders with commercial and industrial distribution partners. These items can be advanced ahead of receiving UL certification. The company is in active discussions with potential distribution partners and anticipates additional details to be announced in the near future. By securing partnerships while working towards UL certification, Exro can be well positioned to ensure the commercialization and delivery of Cell Driver™ products to customers beginning in H1/23. Recent Insider Transactions Derivative • Sep 25
Chief Finance Officer exercised options to buy CA$158k worth of stock. On the 21st of September, William Meekison exercised options to buy 200k shares at a strike price of around CA$0.28, costing a total of CA$56k. This transaction amounted to 1,226% of their direct individual holding at the time of the trade. Since September 2021, William's direct individual holding has increased from 77.32k shares to 106.32k. Company insiders have collectively bought CA$147k more than they sold, via options and on-market transactions, in the last 12 months. 
