MISSISSAUGA, May 25, 2023 (GLOBENEWSWIRE) – Next Hydrogen Solutions Inc. (the “Company” or “Next Hydrogen“) (TSXV:NXH, OTC:NXHSF), a designer and manufacturer of electrolyzers, is pleased to report its financial results for the first quarter ended March 31, 2023.
“Our cell performance improvement program is delivering significant dividends which combined with our unique cell design architecture is pointing to a very compelling product-market fit for economical green hydrogen production at scale,” said Raveel Afzaal, President and CEO of Next Hydrogen. “The focus for 2023 is to (1) launch our second-generation product line with better energy efficiency, lower cost and improved reliability, (2) demonstrate multi-MW production from our second generation product line in a market application, and (3) demonstrate market traction for our product line with our strategic partners. We are well capitalized to achieve these objectives given our balance sheet and recent government grant.”
Q1 2023 Financial Highlights
- Cash balance was $19.4 million as of March 31, 2023, compared to $22.1 million as of December 31, 2022
- Revenue was $44,169 for the three-month period, compared to $40,795 for the same period in the previous year
- Net loss and comprehensive loss was $3.4 million for the three-month period, compared to a loss of $3.7 million for the same period in the previous year
Management is also proud to highlight a number of recent developments that demonstrate significant recent progress:
- The Company has been awarded $5.1 million from Sustainable Development Technology Canada (SDTC) towards the development and demonstration of the Company’s next generation electrolysis technology. The SDTC project with a budget of over $12 million will run to early 2025, resulting in the launch of a second generation product line with cost and performance improvements and a third generation larger-scale product line with further cost and performance improvements. With the launch of these products, Next Hydrogen will be well positioned to support the needs of its customers for both near-term market demonstrations and commercial large-scale green hydrogen systems. The payment for the first milestone has been received in Q1 2023.
- Further, Next Hydrogen has secured five blue-chip industry partners and received letters of commitment totaling $1.5M towards its product development roadmap. These partners include end-users, suppliers and channel partners to ensure strong product-market fit and positions the company for high quality revenue generation opportunities.
- Leveraging our test infrastructure, we achieved significant product development milestones which showcased the compelling features resulting from our unique design and which were proved out using our bench scale test infrastructure. We achieved cell performance that is enabling for full system energy efficiency of 55 kWh/kg (65 kWh/kg, previously) at a current density of 1 amp/cm2 (which is the 2030 target set by the European roadmap) in our bench scale test units, with a turn down ratio of well below 10%. This highlights a very compelling product-market fit for integration with renewables to produce green hydrogen economically. We commissioned a pilot scale version (which uses full size parts) of our second generation electrolyzer in the fourth quarter. We are well positioned to assess the product performance in 2023.
- The company was the recipient of the Innovation in Hydrogen Technology Award at the Canadian Hydrogen Convention in Edmonton, Alberta in April 2023. This is the largest hydrogen event in North America with over 1000 conference delegates.
- In partnership with Black & Veatch, we have completed a concept design for 20MW solution. Next Hydrogen’s unique hydrogen technology expertise and Black & Veatch’s vast customer network and engineering leadership will offer an integrated hydrogen solution to clients worldwide.
For a more detailed discussion of Next Hydrogen’s first quarter results, please see the Company’s financial statements and management’s discussion and analysis, which are available on the Company’s website at nexthydrogen.com or on SEDAR at www.sedar.com.
In addition, to better understand our achievements from 2022 and the outlook for 2023, please refer to the CEO letter included in the 2022 year-end MD&A using the following link: https://nexthydrogen.com/wp-content/uploads/2023/05/Next-Hydrogen-2022-MDA-FINAL.pdf
Management Cease Trade Order Update
The Company is pleased to announce that as the Company’s first quarter interim financial report and Management’s Discussion & Analysis as at and for the period ended March 31, 2023 have been filed on time, the Company will withdraw its application to the BCSC for a Management Cease Trade Order.
Cease Trade Order Update
On May 1, 2023, the Company became subject to a Cease Trade Order (“CTO”) due to a delay in filing the year-end financial documents within the prescribed timelines. The Company filed its year-end financial documents for the year ended December 31, 2022 on May 17, 2023. On May 18, 2023, the applicable securities regulators issued a revocation order with respect to the CTO. Since the revocation order was granted, the Company has shared the necessary information with the TSX Venture Exchange and expects a resolution to resume trading of the Company’s securities shortly.
About Next Hydrogen
Founded in 2007, Next Hydrogen is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Next Hydrogen’s unique cell design architecture supported by 40 patents enables high current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. Following successful pilots, Next Hydrogen is scaling up its technology to deliver commercial solutions to decarbonize transportation and industrial sectors.
|Raveel Afzaal, President and Chief Executive Officer
Next Hydrogen Solutions Inc.
This news release contains “forward-looking information” and “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the risks associated with the hydrogen industry in general; delays or changes in plans with respect to infrastructure development or capital expenditures; uncertainty with respect to the timing of any contemplated transactions or partnerships, or whether such contemplated transactions or partnerships will be completed at all; the timing for any submissions or correspondences with applicable securities laws regulators; uncertainty in respect to the timing of when the Corporation’s securities will resume trading; whether the uncertainty of estimates and projections relating to costs and expenses; failure to obtain necessary regulatory approvals; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to infrastructure developments or capital expenditures; currency exchange rate fluctuations; as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, there will be no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.