Eguana Technologies Inc (TSXV: EGT) this morning filed its second quarter 2020 financial results, reporting quarterly revenues of $1.6 million and year to date revenues of $4.4 million, a record for the energy storage firm.
Revenues improved on a year over year basis from $1.0 million to $1.6 million, while gross margins improved from $67,770 to $0.2 million. Operating expenses were down year over year despite the significant revenue bump, with Eguana recording Q2 2020 expenses of $1.3 million, as compared to $2.0 million in the year ago period.
Operating expenses consistsed of $0.5 million in general and administrative expenses, and $0.5 million in selling and marketing, both of which were down from $0.8 million in the comparable period. Net loss for the quarter came in at $2.5 million.
Looking towards the balance sheet, the financial position of Eguana improved significantly over the quarter. The firms cash nearly doubled, from $1.8 million to $3.2 million, while receivables grew from $0.5 million to $1.5 million. Inventory climbed from $1.2 million to $1.5 million, while prepaid expenses and deposits jumped from $0.4 million to $1.1 million. Total current assets grew to $7.4 million from $3.9 million, nearly doubling.
Liabilities grew at a much smaller pace, with payables growing from $4.1 million to $4.6 million, and the current portion of long term debt climbing to $1.5 million from $0.9 million. Most other line items were relatively unchanged, with total current liabilities climbing to $9.6 million from $8.3 million.
It should also be noted that the company saw its sales impacted from the ongoing pandemic as a result of the effects on Eguana’s supply chain as per the MD&A. Impacts included short delays in certain long lead items procured from Asia and Europe, along with the re-routing of material to different jurisdictions. This however did not impact customer orders which have continued to increase, and supply chains have returned to normal, with full operational capacity to occur by the end of June.
Several operational developments also occurred during the quarter, including the growth of the firms dealer network in the United States to over 130 retailers, while the dealer network in Australia grew to 34 despite the impacts of the coronavirus. The company currently has over $5.0 million in orders in key markets, which is expected to be close in within the next 12 months. Finally, Eguana also closed a $5.0 million strategic investment from Itochu Corporation during the quarter, which will help drive product development.
Eguana Technologies last traded at $0.075 on the TSX Venture.
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