Forward Water Technologies Corp (TSX-V:FWTC) has revealed a reduction in its net loss for the fiscal year ending March 31, 2023, compared to the previous year, as it shifted its focus from engineering development to commercialization in its first full year as an operating company.
The company achieved notable milestones in the fiscal year, generating approximately $40,000 in revenue from testing and reporting for potential customers interested in purchasing Forward Osmosis (FO) units. Large multinational businesses in the mining and lithium industries have expressed interest, with six of them requesting testing.
In a statement, Forward Water CEO and president, C. Howie Honeyman commented: "Fiscal year 2023 has been exciting for the Company. We have been successful in introducing the FO technology to potential customers across a number of different industries, resulting in orders for testing, a non-binding letter of intent with Mead & Hunt and a technical advisory engagement with Clean Tech Lithium PLC. In addition, the Company is in negotiations to deliver the FO pilot system on-site to support a customer's lithium extraction process in Chile."
He added: "We look forward to the year ahead as we continue to engage with our potential customers and expand our opportunities."
In May 2023, Forward Water Technologies announced a licensing agreement with FUJIFILM Corporation to solidify the protection of its water treatment technology platform, reinforcing its commitment to combat the ongoing global water crisis. The company paid a licensing fee as part of the agreement.
The partnership with Mead & Hunt, announced on May 30, aimed to leverage Forward Water Technologies' FO expertise and Mead & Hunt's engineering design experience and supply chain connections to develop and fabricate treatment equipment.
Forward Water Technologies also signed a technical advisory engagement with CleanTech Lithium PLC on May 31. The company will evaluate and advise on technologies to enhance CleanTech Lithium's existing process efficiencies, specifically in its lithium extraction operations in Chile.
Looking at the financials, the company reported a net loss and comprehensive loss of $2,286,526 for the year ended March 31, 2023, compared to a loss of $4,178,676 for the same period in 2022.
Total expenses were $2,421,598 for the year, compared to $4,186,933 over the same period in 2022, a decrease of $1,765,335. The decrease in expenses was largely due to the costs associated with the completion of a qualifying transaction in the prior year that did not repeat in the fiscal year 2023.
Founded by GreenCentre Canada, a government-supported technology innovation center, Forward Water Technologies aims to implement its FO technology on a large scale across multiple sectors, including industrial wastewater, oil and gas, mining, and agriculture. The company also initiated early-stage R&D for the treatment of food and beverage process streams.
Contact the author at jon.hopkins@proactiveinvestors.com