Hillcrest Energy Technologies (HEAT) Q2 2024 earnings summary

Executive summary

• Focused on developing and commercializing clean energy technologies, especially ZVS inverter platforms for EV and grid applications.

• No revenue from continuing operations; legacy oil and gas assets are in reclamation.

• Significant milestones include joint development with Ocean Batteries and collaborations with Powertech Labs and Hercules Electric Mobility.

• Raised capital through private placements and an equity drawdown facility to fund R&D and operations.

Financial highlights

• Net loss for six months ended June 30, 2024: $5,975,770, up from $3,664,663 year-over-year.

• General and administrative expenses rose to $6,085,747 from $3,685,390, driven by higher salaries, consulting, and share-based compensation.

• Research and development expenses for the period were $949,425, slightly down from $1,009,204 year-over-year.

• Cash used in operating activities: $6,754,184 for the six months, compared to $2,581,190 in the prior year.

• No revenue from continuing or discontinued operations; oil production ceased in 2021.

Outlook and guidance

• Plans to continue developing and commercializing clean energy technologies, with a focus on licensing, partnerships, and sales of IP.

• Revenue from technology portfolio not expected in the near term; ongoing dependence on external financing.

• Material uncertainty exists regarding the ability to continue as a going concern.