- Oops!Something went wrong.Please try again later.
BEIT YANAI, Israel, November 30, 2021--(BUSINESS WIRE)--ElectReon (TASE: ELWS.TA), the leading provider of in-road wireless electric vehicle (EV) charging technology for commercial, public service, and passenger vehicles, today reported financial results for the third quarter of 2021 as well as the outlook for the year ahead.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211130005811/en/
"ElectReon’s wireless charging technology is unique and revolutionary. We are witnessing a growing interest and appreciation of our technology across Europe and the US as it can be installed almost anywhere and does not limit EV fleet operations as plug-in charging solutions do. Never before have electric vehicles (EVs) been able to wirelessly charge while on the move, ensuring drivers and fleet owners the ability to maximize EV fleet efficiencies, eliminate range anxiety, save precious real estate, minimize vehicle battery requirements and impacts, and substantially reduce their carbon emissions. Our Charging-as-a-Service (CaaS) business model not only provides accessible charging options that can be customized to meet the needs of unique fleet vehicle operations, but also covers up-front costs empowering fleet operators to transition to electric more seamlessly," said Oren Ezer, CEO and Co-founder of ElectReon.
"Through our public projects, we’re demonstrating that our shared charging infrastructure has the potential to solve some of the greatest challenges in the transition to electric mobility. The challenges include natural resource availability to manufacture batteries for a growing global EV fleet and the ability of our energy grids to meet the power demands of such a large global fleet, and all while keeping on track to achieve the net-zero carbon transport goals set out by national governments."
Continued Ezer, "This year we have seen an ever-growing interest in Electric Road Systems (ERS), for example, the Michigan Department for Transport (MDOT) released a tender for one mile of dynamic wireless charging and the Swedish Transport Authority (Trafikverket) released a 26-mile (42 km) ERS tender. We are excited to see the progress we have made in our technological, manufacturing and commercialization capacities in the first three quarters of 2021 as we rapidly expand to meet the growing demand we see from the market for our technology."
Third Quarter, 2021 Financial Results
In order to deliver on the Company’s current projects, its first large-scale commercial project in Israel, and anticipated upcoming projects in EMENA, ElectReon began scaling its R&D, raw material stocking and manufacturing capacities:
At the end of this third quarter, the Company’s ending cash balance including short-term deposits was 142 million ILS ($44 million)
Due to R&D expenses and the provision of raw materials, the Company’s Net Cash used in operating activities in this third quarter was 10 million ILS ($3 million), and 36 million ILS ($11 million) for the first nine months of the year
In light of the global shortage of raw materials, such as copper and electronic components, the Company significantly increased its purchasing of raw materials for inventory
The Company began intensive investment to expand it’s wireless charging technology platforms, to develop it’s cloud-based charging management software and to obtain regulatory compatibility approvals. Therefore, R&D expenses for the third quarter increased by 16% compared to the third quarter of 2020, and 49% for the first nine months of 2021 compared to the same nine-month period of 2021
2021 - Main Business Highlight
In October 2021, the company announced its first fully-commercial deal with the Dan Bus Company ("Dan") in Israel. A large-scale commercial deployment of the company’s wireless charging infrastructure at end-terminals for approximately 200 of the operator’s bus fleet over a 5-year period:
Dan selected ElectReon’s Charging as a Service (CaaS) business model - in which ElectReon finances the charging infrastructure and provides operation, software and maintenance services to the Dan Bus Company
Dan will pay a monthly fee of 2,500 ILS (~$780) for every bus utilizing the charging technology in addition to the cost of the electricity for powering the bus
This deal demonstrates the acceptance of the company’s appealing innovative financial model to its fleet customer segment, its ability to empower public transport operators to accelerate their electric fleet adoption and, the viability of ElectReon’s attractive recurring revenue business model
Highlights of the Company’s growth initiatives in anticipation of upcoming short-term and long-term market opportunities across Israel, Europe, and North America:
In light of increased OEM interest in the Company’s technology, ElectReon opened an automotive R&D center in Germany. This center is led by Dr Andreas Wendt, a former senior manager from automotive giant, Toyota who led research into wireless EV charging. Dr Wendt joins the Company as Regional Director for R&D activities in Germany. Dr Wendt, among other responsibilities, will oversee the Company’s integration with a Volkswagen (VW) vehicle as part of the German eCharge project, funded by the Roads Innovation Program of the German Federal Highway Research Institute (BASt), a project tender that the Company announced it had won in the first quarter of 2021
In Europe, in addition to the Company’s Swedish government funded public pilot, activities are particularly focused on the German and French markets
At the end of the third quarter, the Company's total headcount increased by 160% compared to that of September 30th, 2020. The majority of the Company’s employee growth came from it’s R&D, Engineering, Software, Manufacturing and Business Development departments building the capacity for expected upcoming projects in the company’s pipeline
During the past three quarters, the Company co-invested in increasing its manufacturing capacity, together with its leading production partners, in order to increase its capacity for current active projects and expected upcoming projects in the company’s pipeline
The Company began its expansion activities into the United States, by opening a local subsidiary and hiring employees in anticipation of an expected technology pilot and commercial business opportunities that the US Infrastructure Bill presents
During the second quarter, the company announced that Reuven Rivlin, Israel’s tenth and former President, joined ElectReon as Company President. Mr. Rivlin will cultivate relationships with governments around the world, particularly in the United States, to increase the Company’s footprint globally
The Company continued to achieve significant milestones in developing and commercializing it’s wireless charging technology:
During this third quarter, the Company received its ECE R10 approval pertaining to ElectReon’s proprietary, vehicle-side hardware technology which acts as a power receiver unit during active wireless charging. This allows the Company to integrate its vehicle-side technology with all road vehicles
The bus in the Company’s ongoing public pilot in Sweden is fully-operational and open to the public, after the vehicle received both its R10 approval and HIGER, the automotive manufacturer of the bus, authorized the integration of ElectReon’s technology onto this vehicle model. Combined with the Company’s ECE R10 approval, this is a huge milestone towards fully-commercializing the Company’s wireless charging technology as it means bus fleet operators can now purchase HIGER electric buses with the wireless charging technology already embedded.
The Company’s Financial Position
Cash and cash equivalents
Accounts receivable and credit balances
Fixed assets, property, plant and equipment
Long-term prepaid expenses
Right of use assets
Short term loan
Accounts payable, debit balances and suppliers
For the nine months ended
For the three months
For the year ended
Research and development expenses
Less R&D participation expenses
Marketing, general and administrative expenses
Financing expenses (income), net
Loss for the period
Differentials from translating financial reports for external operations
For the nine months ended
For the three months ended
For the year ended
Cash flows utilized for current operations
Cash flows utilized for investment activities
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
The above are highlights of the company’s third quarter report. This is not the company’s full and binding quarterly report, which will be made available on the company’s website.
ElectReon is the leading provider of wireless charging solutions for electric vehicles (EVs), providing end-to-end charging infrastructure and services to meet the needs and efficiency demands of shared, public and commercial fleet operators and consumers. The company’s proprietary inductive technology dynamically (while in motion) and statically (while stopped) charges EVs quickly and safely, eliminating range anxiety, lowering total costs of EV ownership, and reducing battery capacity needs—making it one of the most environmentally sustainable, scalable, and compelling charging solutions available today. ElectReon works with cities and fleet operators on a charging as a service (CaaS) platform that enables cost-effective electrification of public, commercial, and autonomous fleets for smooth and continuous operation. For more information, visit electreon.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211130005811/en/