The EBITDA loss in Q2, 2018 was $1,274,183 compared with an EBITDA loss of $419,325 for Q2, 2017, representing an increase of 204%. The increase in the EBITDA loss in Q2, 2018 compared with Q2, 2017 is primarily attributable to lower revenues and an increase in comprehensive loss.
Adjusted EBITDA loss in Q2, 2018 was $978,642 compared with an Adjusted EBITDA of $283,881 for Q2, 2017. The increase of $694,761 in the Adjusted EBITDA loss in Q2, 2018 is mainly attributable to the increased comprehensive loss of $926,306, an increase in depreciation on property and equipment of $11,279, an increase in finance charges of $60,169 and an increase of $160,097 in share-based payments.
Modified EBITDA loss in Q2, 2018 was $1,044,642 compared with a Modified EBITDA gain of $12,197 for Q2, 2017. The increase of $1,056,839 in the Modified EBITDA loss in Q2, 2018 is mainly attributable to the increase in the Adjusted EBITDA loss of $694,761 and a decrease in the change in fair value of investments of $362,078.
Liquidity
The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $45,764,393 and a negative working capital of $3,817,392 as at June 30, 2018 (December 31, 2017 - $46,416,352 and $9,403,371 respectively). Furthermore, as at June 30, 2018, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $84,124 (December 31, 2017 - $622,846). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.
As at June 30, 2018 an amount of $1,885,644 in accounts payable and accrued liabilities and $111,928 of long term debt will be settled by means of a share for debt conversion transaction. In addition, $1,152,726 in accounts payable and accrued liabilities are accrued material expenses related to percent complete revenue recognition.
As at June 30, 2018, the Company had cash on hand of $84,124 and negative working capital of $3,817,392 compared with a cash balance of $622,846 and negative working capital of $9,403,370 as at December 31, 2017.
Revenue generated from active projects does not yet produce sufficient positive cash flow to fund operations. However, based on current backlog of $4.14MM at August 21, 2018, together with the pipeline of prospective new projects, cash flow from operations are expected to become positive in the very near future.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a TSX Venture 50® high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2008 certified and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward- looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation's current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Rodayna Kafal, VP, Investor Relations and Strategic Business Development, Phone: (514) 937-0002, E-mail: ir@pyrogenesis.com
RELATED LINKS: http://www.pyrogenesis.com/
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1 AlCircle, Aluminium Dross Processing: A Global Review, 2017
2
http://www.world-aluminium.org/statistics/primary-aluminium-production/
