Libertine Holdings PLC (AIM:LIB) said it has completed work on the UK government-funded development with MAHLE Powertrain and on the first phase of engineering development with US-based Hyliion Holdings.
In a trading update, the developer of Linear Generator technology for decarbonisation of heavy-duty vehicles and distributed power generation revealed it had cash reserves of £1.2 million.
Along with outstanding debtors of £0.2 million and inventories of £0.6 million, it said there would be sufficient funds required to maintain current operations through to May 2024 absent any additional revenues.
On the MAHLE Powertrain project, which was completed later than originally scheduled, Libertine said it created a fuel-flexible performance validation prototype Linear Generator and demonstrated initial combustion performance using bioethanol.
Next, there will be work on performance and durability during the remaining months of the year ahead of additional combustion testing on a range of fuels during early 2024 to demonstrate performance requirements for a number of OEM development programmes.
While hailing positive test results from both intelliGEN and HEXAGEN platform hardware on a number of programmes, chief executive Sam Cockerill said the time taken and costs incurred to reach this stage have been greater than anticipated.
"The timing of the second phase of combustion testing at MAHLE Powertrain has been impacted by planned developments to Linear Generator prototype hardware and test cell infrastructure necessary for operation at higher power levels and for longer durations in our next phase of combustion testing."
Cockerill said all the developments were intended to meet the entry performance thresholds for multiple OEM programmes expected to begin in 2024, with Libertine investing in building a small number of prototype hardware units which are intended to support the OEM development programmes once the second phase of intelliGEN combustion performance validation is complete.
The development with Hyliion saw the US company exhibit its first prototype KARNO powertrain, including Libertine's HEXAGEN linear generator technology platform at the ACT Expo in California in May.
From today, Hyliion has a six-month option period to negotiate IP licensing rights with Libertine for the technology.
Libertine said a "significant quantum" of anticipated revenue for the current financial year has been projected to be derived from further fees from Hyliion and if these are not forthcoming, its full-year results would be materially below current market expectations, though it continues to receive commercial interest across different applications and markets.
Cockerill said commercial interest in the intelliGEN technology "continues to remain robust and we are making good progress with a number of OEM and end product customers, who we anticipate will support the further development of the technology".