Hillcrest Energy Technologies (HEAT) Q1 2025 earnings summary

Executive summary

• Focused on developing and commercializing proprietary Zero Voltage Switching (ZVS) inverter technology for powertrains and grid applications, with multiple prototypes and customer demonstrations completed in 2024 and early 2025.

• Net loss increased to $2.38M for Q1 2025 from $1.63M in Q1 2024, driven by higher R&D, business development, and investor relations expenses.

• Legacy oil and gas operations discontinued; remediation of Saskatchewan assets ongoing, with completion expected in 2025 or 2026.

• Company remains pre-revenue from clean energy technology, with near-term revenue not anticipated.

Financial highlights

• Net loss for Q1 2025 was $2,375,104, up from $1,633,805 in Q1 2024.

• Research and development expenses rose to $626,570 from $448,915 year-over-year.

• Office and general expenses increased to $1,273,252 from $881,908 year-over-year, mainly due to higher business development and investor marketing costs.

• Cash used in operations was $1,021,629 for Q1 2025, down from $1,470,429 in Q1 2024.

• Total assets decreased to $2.28M at March 31, 2025, from $2.99M at March 31, 2024.

Outlook and guidance

• Continued focus on ZVS technology development, commercialization, and customer engagement, with plans to license, partner, or sell clean energy technology and IP.

• No near-term revenue expected from technology portfolio; ongoing need for external financing to fund operations.

• Remediation of legacy oil and gas assets expected to complete by 2026.