TORONTO, July 31, 2017 /CNW/ - EnerDynamic Hybrid
Technologies Corp. ("EHT" or the "Company")
(TSX-V: EHT) is pleased to announce that it has filed its
condensed consolidated interim financial statements for the six
months ended May 31, 2017,
accompanying management's discussion and analysis, and the related
officer certifications for the six months ended May 31, 2017.
Copies of these documents are available electronically under the
Company's profile on SEDAR at www.sedar.com.
Financial Highlights
Revenue for the three months ended May
31, 2017 was $709,030 compared
to $262,823 for the same period in
2016. Cost of revenue of $493,790
(2016: $600,951) reflects the
increase of margins during the period compared to the development
phase of the ENERTEC product line in prior periods. Fixed
production overheads allocated during this period are reduced due
to a change in facility lease costs and a proportionate allocation
of labour costs to revenues. Cost of revenues for the period
includes $90,217 (2016: $90,217) in amortization and $102,671 (2016: $238,773) in occupancy costs. Production related
costs varied year over year as production levels increased and
initial selling stages of the new ENERTEC product line commenced.
The reported production related costs of $182,503, compared to the same period in 2016 of
$155,379, reflects the deployment of
labour to production and away from the research and development of
the products in recent periods.
Gross margin is beginning to reflect commercial sales activities
rather than simply representing mostly fixed overheads. A gross
margin of $215,240 [2016:
($6,383)] reflects the growing
revenue with related production cost representing 25.7% of revenues
versus 59.1% in the comparative prior year period. This production
related cost, as percentage of revenues, is expected to continue to
decline over the coming quarters as revenues and volumes
increase.
General and administrative expenses for the six months ended
May 31, 2017 shows a reduction to
$471,979 from $590,888 in 2016. The reduction in costs year
over year are associated with reduced workforce and overheads
within the non-production areas of the business. Expenses also
contain a period expense related to non-cash share transactions of
$217,411 (2016: $188,315) for stock based compensation.
Overall, business activity in the quarter ended May 31, 2017 was focused on establishing the
ENERTEC products. Mr. John Gamble,
CEO of EHT, commented that "this quarter reflects the first
positive margin report in some time which is excellent progression
in our business development. We have started to see market
acceptance of the ENERTEC products which, by its nature, has a long
sales cycle. We are executing on orders now for both domestic
customers and West African partners."
About ENERTEC
The EHT advanced ENERTEC Modular Wall and Roof System uses a
proprietary skin and foam core that is stronger and more energy
efficient than traditional wood or steel structures providing the
highest ratings for energy efficiency. EHT works with its
partners worldwide to erect the buildings on-site utilizing EHT
staff and local crews. After installation, each structure can
be furnished and finished to meet the customer's requirements
including siding, tile, kitchens and bathrooms or segregated
commercial rooms. The finished wall product can be shipped on
pallets and delivered via rail, truck or water in standard
formats.
At the core of the ENERTEC product line is the ENERTEC Embedded
Solar Roof Module. Solar cells can be embedded in a proprietary
fire proof skin resulting in substantial cost savings by
eliminating heavy glass panels and aluminum racking required for
traditional solar panels. Two barriers to greater adoption of solar
energy are weight limitations of the roof on which solar panels
could be deployed and onerous shipping and labour costs. A lighter
product at a better price point will open a larger market for solar
due to the faster return of capital investment especially for rural
and remote users looking to go off-grid. Furthermore, the entire
EHT embedded solar roof becomes a massive solar panel capable of
producing significantly more energy than the home requires,
allowing the structure to then become an important source of power
for the local micro grid or large battery storage systems.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are
intelligent, bankable and sustainable. Most energy products and
solutions can be implemented immediately wherever they are needed.
EHT stands above its competitors by combining a full suite of solar
PV, wind and battery storage solutions, which can deliver energy 24
hours per day in both small-scale and large-scale format. In
addition to traditional support to established electrical networks,
EHT excels where no electrical grid exists. The organization
supplies advanced solutions for various industries in combination
with energy saving and energy generation solutions. EHT's expertise
includes the development of module structures with full integration
of smart energy solutions. These are processed through EHT's
production technologies into attractive applications: modular
homes, cold storage facilities, schools, residential and commercial
out buildings and emergency/temporary shelters.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The statements herein that are not historical facts are
forward‐looking statements. Forward-looking
information involves risk, uncertainties and other factors that
could cause actual events, results, performance, prospects, and
opportunities to differ materially from those expressed or implied
by such forward-looking information, including risks related to the
completion of all approvals from applicable regulatory authorities.
Although EHT believes that the assumptions used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames
or at all. EHT disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
applicable securities laws.
SOURCE Enerdynamic Hybrid Technologies Corp.