Alkaline Fuel Cell Power Corp. (NEO:PWWR.AQN) said its third quarter 2022 financial results include how it secured the strongest PWWR Flow sales pipeline in the company’s history with an estimated capital investment opportunity of over C$50 million in potential combined heat and power (CHP) projects over the next 24 to 36 months.
The quarter ended September 30, 2022 saw Alkaline Fuel Cell Power (AFCP) assume that if all of the potential CHP systems reach commercial operation, forecast gross revenue could total up to approximately $16 million, forecast EBITDA could total up to approximately $7 million leading to forecast net income totalling to approximately $1.5 million.
AFCP CEO Frank Carnevale said the Toronto-based company is in the advanced stage of securing growth capital to enable it to move its sales pipeline, acquisitions and fuel cell technology forward.
READ: Alkaline Fuel Cell Power's CEO, Frank Carnevale, appointed to board of Canadian Hydrogen and Fuel Cell Association
“We are extremely pleased to have met our short-term objectives of generating immediate revenue while continuing to build toward longer-term growth and expansion, with AFCP remaining on track to deploy approximately $50 million in capital over next two to three years,” Carnevale said in a statement.
3Q 2022 highlights
Other highlights included AFCP realizing its first full quarter of revenue in the company’s history with $134,616 of revenue generated by the recently acquired combined heat and power asset.
The company said it also saw the advancement of a PWWR Flow CHP capital project of approximately $2.2 million for a condominium in mid-town Toronto, which is expected to generate total revenue of more than $16 million for PWWR Flow over a 25-year Energy Service Agreement timeframe, with an expected July 2023 commercial operation date.
During the nine months ended September 30, 2022, the company said it recorded a loss of $4.2 million compared to a loss of $8 million for the same period in 2021. AFCP said the decrease in loss is primarily due to lower stock-based compensation and marketing expenses, partially offset by increased operational activities during 2022. AFCP said it also generated revenue of $134,616 from its recently acquired AI business.
Management and consulting fees were $1,428,217, down from $1,838,035 in 2021. General and administrative expenses were $568,014, up from $257,967 in 2021. Wages and salaries were $1,015,785, compared to $117,396 in 2021.
The company said it hired Carmine Marcello, formerly CEO at Hydro One Inc, one of Canada’s largest transmission and distribution companies, having a market cap of over $20 billion and over $23 billion in assets.
AFCP also announced a supplement to its 4 kW CHP fuel cell by introducing a range of generator fuel cells that target more immediate revenue opportunities within the off-grid and back-up generator markets and are intended to provide systems that have a power capacity of between 40kW and 100kW.
As of September 30, 2022, AFCP had working capital of $724,761 and cash on hand of $1,577,907, compared to working capital of $6,112,617 and cash on hand of $5,869,082 at December 31, 2021.
At the close of trading on the NEO Exchange, AFCP stock slid by 12.5%, trading at C$0.07.
Contact the author at susie@proactiveinvestors.com