Eguana Provides Business Updates
Eguana Technologies (TSXV: EGT) provided a financial and operational update highlighting significant challenges. The company faces liquidity issues due to the underperforming renewable energy sector, with decreased consumer spending attributed to inflation and high-interest rates. A key USA customer's delayed payments and slower-than-expected sales from the BC Hydro collaboration have impacted short-term liquidity.
The company has delayed its January 15, 2025 loan payment and expects to enter technical default. Discussions with the senior lender are ongoing regarding a potential forbearance agreement. Despite market challenges, Eguana is pursuing utility sales channels and developing its software platform, including AI-driven enhancements to its Edge, Exchange, and Engage products.
Additionally, CTO Daljit Ghotra has resigned effective January 31, 2025. The company plans to recruit a new technical leader focused on software and cloud technologies to accelerate utility sales and generate recurring revenue.
Eguana Technologies (TSXV: EGT) ha fornito un aggiornamento finanziario e operativo evidenziando sfide significative. L'azienda affronta problemi di liquidità a causa delle performance deludenti del settore delle energie rinnovabili, con una diminuzione della spesa dei consumatori attribuibile all'inflazione e ai tassi di interesse elevati. Il ritardo nei pagamenti di un importante cliente statunitense e le vendite più lente del previsto dalla collaborazione con BC Hydro hanno influenzato la liquidità a breve termine.
L'azienda ha posticipato il pagamento del prestito previsto per il 15 gennaio 2025 e si aspetta di entrare in default tecnico. Sono in corso discussioni con il creditore senior riguardo a un possibile accordo di moratoria. Nonostante le sfide del mercato, Eguana sta perseguendo canali di vendita per le utility e sviluppando la propria piattaforma software, comprese le migliorie basate su AI ai suoi prodotti Edge, Exchange ed Engage.
Inoltre, il CTO Daljit Ghotra si è dimesso con effetto dal 31 gennaio 2025. L'azienda prevede di reclutare un nuovo leader tecnico con focus sulle tecnologie software e cloud per accelerare le vendite alle utility e generare ricavi ricorrenti.
Eguana Technologies (TSXV: EGT) proporcionó una actualización financiera y operativa destacando desafíos significativos. La compañía enfrenta problemas de liquidez debido al bajo rendimiento del sector de energía renovable, con una disminución del gasto del consumidor atribuida a la inflación y altas tasas de interés. Los pagos retrasados de un importante cliente en EE. UU. y las ventas más lentas de lo esperado de la colaboración con BC Hydro han afectado la liquidez a corto plazo.
La empresa ha pospuesto su pago de préstamo del 15 de enero de 2025 y espera entrar en incumplimiento técnico. Las discusiones con el prestamista senior están en curso respecto a un posible acuerdo de indulgencia. A pesar de los desafíos del mercado, Eguana está buscando canales de ventas para las utilidades y desarrollando su plataforma de software, incluyendo mejoras impulsadas por IA para sus productos Edge, Exchange y Engage.
Además, el CTO Daljit Ghotra ha renunciado con efectividad del 31 de enero de 2025. La compañía planea reclutar un nuevo líder técnico centrado en tecnologías de software y nube para acelerar las ventas a las utilidades y generar ingresos recurrentes.
에구아나 테크놀로지스 (TSXV: EGT)는 중요한 도전 과제를 강조하며 재무 및 운영 업데이트를 제공했습니다. 이 회사는 재생 가능 에너지 부문의 저조한 성과로 인해 유동성 문제에 직면하고 있으며, 인플레이션과 높은 이자율로 인해 소비자 지출이 감소했습니다. 주요 미국 고객의 지불 지연과 BC Hydro 협업으로 인한 예상보다 느린 판매가 단기 유동성에 영향을 미쳤습니다.
회사는 2025년 1월 15일 대출 상환을 연기했으며 기술적 디폴트 상태에 진입할 것으로 예상합니다. 잠재적인 유예 협정을 위한 선도 대출자와의 논의가 진행 중입니다. 시장의 도전에도 불구하고 에구아나는 공공 유틸리티 판매 경로를 추구하고 있으며, AI 기반의 개선 사항을 포함하여 Edge, Exchange 및 Engage 제품을 개발하고 있습니다.
또한, CTO 달짓 고트라가 2025년 1월 31일부로 사임했습니다. 회사는 공공 유틸리티 판매를 가속화하고 반복 수익을 창출하기 위해 소프트웨어 및 클라우드 기술에 중점을 둔 새로운 기술 리더를 모집할 계획입니다.
Eguana Technologies (TSXV: EGT) a fourni une mise à jour financière et opérationnelle mettant en évidence des défis significatifs. L'entreprise fait face à des problèmes de liquidité en raison des performances médiocres du secteur des énergies renouvelables, avec une baisse des dépenses des consommateurs attribuée à l'inflation et aux taux d'intérêt élevés. Des paiements retardés d'un client clé aux États-Unis et des ventes plus lentes que prévu suite à la collaboration avec BC Hydro ont eu un impact sur la liquidité à court terme.
L'entreprise a reporté son paiement de prêt prévu pour le 15 janvier 2025 et s'attend à entrer en défaut technique. Des discussions avec le créancier senior sont en cours concernant un possible accord de tolérance. Malgré les défis du marché, Eguana poursuit des canaux de vente pour les services publics et développe sa plateforme logicielle, y compris des améliorations alimentées par l'IA pour ses produits Edge, Exchange et Engage.
De plus, le CTO Daljit Ghotra a démissionné avec effet au 31 janvier 2025. L'entreprise prévoit de recruter un nouveau leader technique axé sur les technologies logicielles et cloud pour accélérer les ventes auprès des services publics et générer des revenus récurrents.
Eguana Technologies (TSXV: EGT) hat ein finanzielles und operatives Update bereitgestellt, das erhebliche Herausforderungen hervorhebt. Das Unternehmen sieht sich aufgrund des schwach performenden Sektors für erneuerbare Energien mit Liquiditätsproblemen konfrontiert, wobei eine Verringerung der Konsumausgaben auf Inflation und hohe Zinssätze zurückzuführen ist. Verzögerte Zahlungen eines wichtigen Kunden in den USA sowie langsamere als erwartete Verkäufe aus der Zusammenarbeit mit BC Hydro haben die kurzfristige Liquidität beeinträchtigt.
Das Unternehmen hat die Rückzahlung eines Kredits, die für den 15. Januar 2025 fällig war, verschoben und erwartet, in einen technischen Default zu geraten. Gespräche mit dem Hauptkreditgeber über eine mögliche Stundungsvereinbarung sind im Gange. Trotz der Marktherausforderungen verfolgt Eguana Vertriebskanäle für Versorgungsunternehmen und entwickelt seine Softwareplattform weiter, einschließlich KI-gesteuerter Verbesserungen seiner Produkte Edge, Exchange und Engage.
Darüber hinaus hat der CTO Daljit Ghotra mit Wirkung zum 31. Januar 2025 gekündigt. Das Unternehmen plant, einen neuen technischen Leiter zu rekrutieren, der sich auf Software- und Cloud-Technologien konzentriert, um die Verkäufe an Versorgungsunternehmen zu beschleunigen und wiederkehrende Einnahmen zu generieren.
- Loan amortization extended to May 15, 2026
- Expansion into North American utility channels showing traction
- Development of AI-driven software platform enhancements
- Delayed January 2025 loan payment, anticipating technical default
- Key USA customer experiencing payment delays
- BC Hydro collaboration experiencing delayed sales and cash receipts
- CTO resignation effective January 31, 2025
- Ongoing liquidity challenges due to sector underperformance
Calgary, Alberta--(Newsfile Corp. - January 22, 2025) - Eguana Technologies Inc. (TSXV: EGT) ("Eguana" or the "Company"), a leading developer and manufacturer of high-performance energy storage systems, provides a financial and operational update.
As a result of the overall solar, and renewable energy, sector's underperformance, Eguana continues to actively manage its liquidity. Decreased consumer spending related to inflation, high-interest rates, and increased dealer fees continue to delay consumer market recovery within the industry. A key USA customer continues to experience financial recovery delays, driven from the same industry pressures impacting Eguana, which has continued to delay previously agreed upon payment amounts and timing to Eguana. The Company anticipated these cash receipts would support short-term liquidity requirements; however, the customer continues to have payment delays and has not yet reached its previously agreed payment schedule.
Additionally, the collaboration with BC Hydro, announced on November 27, 2024, was also expected to support financial liquidity for the Company, however run rates of sales were delayed through December, causing delayed invoicing and cash receipts to the Company. Utility shipments are expected to commence this week, with steady weekly run rates expected thereafter.
As outlined in the Third Quarter 2024 Financial Results news release, dated November 28, 2024, the Company completed a debt amendment with its senior lender to extend its loan amortization out to May 15, 2026, starting on December 15, 2024. All previously deferred payments and accrued interest were included in the loan balance and are amortized over the longer term of the loan. At this time, due to the liquidity items noted above, the Company has delayed the January 15, 2025 regular amortization payment and anticipates the loan will fall into technical default. The Company has initiated discussions with its senior lender to support the Company's shift to utility sales and to put in place a forbearance agreement, for a period of time.
"With weak renewable energy consumer markets, Eguana drove an aggressive entry into North American utility channels, which has gained traction in recent months, as utilities begin utilizing advanced battery technology as grid assets to enhance grid capacities and efficiencies. Slow collections from a key customer, and the high debt service, compelled us to take prudent action to further adapt to market conditions, and to help ensure Eguana moves forward to execute operational objectives," commented Justin Holland, CEO. "In the meantime, we remain focused on advancing key relationships in utility and virtual power plant channels while delivering on our mission to connect homeowners and utilities, for a seamless experience through the distributed grid transition."
Lastly, long standing Eguana CTO, Mr. Daljit Ghotra, has resigned, effective January 31, 2025. Eguana's development team continues to transition its development objectives toward expanding its software platform, including AI-driven enhancements to its Eguana Edge, Exchange, and Engage products and intends to recruit a new technical leader more directly focused on these technologies. Cloud features that enable better visibility and control at the grid edge for operators, and more advanced integration with the platforms of our industry partners are expected to accelerate utility sales and generate long term recurring revenue, from the installed base of Eguana's utility-grade residential energy storage systems.
"Mr. Ghotra has been instrumental in driving our advanced power electronics and hardware platforms and certifications for many years delivering utility grade, VPP enhanced products with a full range of stakeholder features," added Holland. "He will remain a key external hardware resource for the team as the focus on Eguana Cloud and Eguana Edge products increases, both of which are critical to driving virtual power plant success."
About Eguana Technologies Inc.
Eguana's vision is to build the grid of the future by delivering flexible, modular, and cost-effective alternatives to traditional grid upgrades. Our technology provides value to all key stakeholders - from the consumer, to the electricity retailer, the distribution utility, and the system operator.
Since 1998, Eguana Technologies has connected utilities with consumers through its high-performance commercial and residential energy storage solutions. The Eguana product suite has been designed from the ground up with both the end user and the utility in mind to transition the power grid seamlessly.
Manufactured in local facilities across the globe to ensure compliance and quality, Eguana's standardized platform allows the flexibility to ensure each product solution is optimized for use in major grid modernization markets.
To learn more, visit www.EguanaTech.com or follow us on LinkedIn or @EguanaTech on X.
Company Inquiries
Justin Holland, CEO Eguana Technologies Inc.
+1.416.728.7635 Justin.Holland@EguanaTech.com
Forward-Looking Statements
The reader is advised that all information herein, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning assigned by National Instrument 51-102 - Continuous Disclosure Obligations and other relevant securities legislation. In particular, forward-looking statements include, among other things, statements regarding, anticipated payments from a key Eguana customer, the effects of the collaboration with BC Hydro, anticipated timing of utility shipments, the run rate of invoicing and cash collections from a key Eguana customer, the Company's cash flow needs and liquidity, any anticipated market recovery, success and traction in utility channels, the status of the loan with the Company's senior lender, the Company's ability to negotiate funding and/or a forbearance from existing lenders, success with product development objectives, the effects of cloud features, and the Company's business operations, cash flow constraints, liquidity impacts, accounts receivable collections, personnel, and strategy. Forward-Looking statements are not a guarantee of future performance and involves a number of risks and uncertainties.
Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks associated with: failure by the Company to improve cash flow which would have a material adverse impact on the viability of the business to continue operating; timely collection of accounts receivable; effective implementation and deployment of Eguana solutions and building additional partnerships and developing existing partnerships; general economic, market and business conditions; competitive factors; achieving strategic objectives; unanticipated effects of the reduction to headcount; inability to or delays in sourcing materials; the Company's ability to enter and sell into utility channels and/or advance relationships in the virtual power plant space; the slower adoption of energy storage technologies than anticipated; inability to integrate with industry partners; lack of success in product development and enhancements; impacts of the departure of the CTO and/or replacement of the CTO; failure by the Company to improve liquidity, enter into financing with existing or new lenders, and obtain a forbearance from its senior lender; to raise equity capital when needed and on reasonable terms; to effectively rationalize the business and strategy or to recapitalize and/or restructure the Company and other factors set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and nine months ended September 30, 2024, dated November 30, 2024 and annual financial statements and management discussion and analysis dated May 27, 2024, which may be found on its website or at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238055
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