Alkaline Fuel Cell Power Corp (NEO:PWWR.AQN) (AFCP) has reported a 5% increase in total assets in the first two quarters of 2022, from $8.968 million to $9.413 million, and reiterated a focus on its strength and diversification plans for the remainder of the year.
"AFCP is diversifying its investments into more immediate revenue-generating investments such as its CHP (combined heat and power) assets, and improving its ability to bring its fuel cells to market, quicker," AFCP CEO Frank Carnevale said in a statement announcing the company’s second quarter to June 30, 2022 results. "Investors want a more de-risked investment platform, and we're on our way to delivering."
AFCP said it achieved a 71% reduction in operating expenses in the second quarter from a year earlier, which will position it to benefit from a much lower monthly cash burn rate.
READ: Alkaline Fuel Cell Power says it is developing a range of fuel cells for off-grid and backup generator markets
The company also narrowed its net loss significantly to $1.4 million in the three months ended June 30, 2022, from a loss of $5.0 million in the same period in 2021, primarily due to a decrease in stock-based compensation with partial offsets attributable to increased activities this year.
The company generated a preliminary revenue of $46,500 from the partial quarter of its PWWR Flow business, and the corresponding $1 million in equipment value from operating entity. AFCP completed the acquisition of AI group’s CHP generation business in April 2022, which it combined with its own CHP division and rebranded into PWWR Flow Streams in June.
AFCP exited the quarter with working capital of $2.2 million and cash on hand of $3.1 million, compared to $6.1 million and $5.9 million at December 31, 2021, respectively.
The company reiterated its corporate strategy announced on June 20, 2022, for the balance of the year and over the longer term, including leveraging the use of flow-through shares to minimize AFCP's equity requirements for ongoing development and advancement of CHP projects, as well as identifying, nurturing and executing strategic acquisitions of attractive energy assets and earnings-positive service companies in the power and energy space.
AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech.
Contact the author at jon.hopkins@proactiveinvestors.com