Exro Technologies achieved record revenues last quarter, the Calgary clean-tech company reported this month, as it faces an emerging legal battle.
Established in 2014, Alberta’s Exro develops modern technology for the electric vehicle sector.
The publicly traded company’s technologies serve to bridge the performance-cost gap in e-mobility, as demonstrated by the Exro Coil Driver, as well as with regards to stationary energy storage, as evidenced by the Cell Driver.
Building on an acquisition of automotive tech firm SEA Electric earlier this year, Exro posted quarterly revenues of $11 million, up from $5M the prior quarter. The revenue jump was powered by the delivery of more than 70 propulsion system units sold by the firm.
“We are pleased with our progress in Q3 and momentum heading into Q4,” stated chief executive officer Sue Ozdemir.
“We achieved key milestones on a number of fronts including units shipped, cost reduction in both our design and cost structure,” the CEO continued, “as well as negotiated a strategic partnership which will accelerate our growth trajectory.”
En route a path to profitability, Exro has made some tough choices in 2024, including a reduction in headcount of more than 30%.
“We remain focused on driving profitability through execution by the end of next year,” said Ozdemir, who believes Exro is well-positioned to meet the evolving needs of the EV market, citing industry-leading technology, consistent growth in deliveries to blue-chip customers, and a focus on profitability.
Speaking of blue-chip customers: For the past year-and-change, Exro has been quietly partnering with Stellantis. The recently revealed collaboration has pushed the company’s technologies to a new level, according to Eric Hustedt, Exro’s chief of technology.
“Stellantis pushed us to evolve the Coil Driver technology and prove the need to disrupt the passenger EV propulsion systems as they exist today,” said Hustedt. “They challenged us to demonstrate how our coil-switching inverter technology holds the potential to enhance system efficiency and power, while also holding the potential to significantly reduce cost and accelerate the adoption of EVs globally.”
However, not all is rosy for the Canadian cleantech, whose stock is down nearly 90% over the past year. Exro has learned of a threatened class action lawsuit.
The claim is a proposed securities class action on behalf of the investors who purchased securities of the Alberta firm in January through November. The plaintiff says that the action arises out of the merger between Exro and SEA, alleging that losses on investments were the result of misrepresentations contained in a report filed by Exro.
Exro disputes the allegations and “intends to defend the claim vigorously.”
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