FormerXBC Inc XEBEQ

MD&A interesting point

[midard]

The August 11, 2021 backlog amount does not include the 18-unit Biostream agreement because the execution (task) orders have not yet been processed. In addition, as Xebec transitions more towards being a services provider, the backlog will not adequately reflect the future and full revenue profile of the company.

Xebec continues to see increased interest for its hydrogen PSA purification platform worldwide as more hydrogen generation systems and refueling stations come online. For example, a $1.2 million hydrogen PSA order was received in Q2 2021 from a customer in Poland for a hydrogen refueling station producing approximately 160kg/hr of hydrogen. The company is in advanced discussions with several parties and expects to receive larger-scale hydrogen purification contracts in the next few months

Inmatec continues to see record production levels primarily due to the heightened demand caused by the COVID-19 pandemic for sustainably and reliably sourced medical-grade oxygen. In Q2 2021, a lease was signed to double Inmatec’s production space to support further growth in medical oxygen and nitrogen generators. After receiving several large follow-on contracts from India and many other countries, order activity continues to be driven by countries hardest hit by COVID-19 or those in preparation for subsequent waves.

Xebec expects additional acquisitions this year, and is targeting a yearly revenue run rate in the segment of approximately $250 million by 2025

GNR Quebec Capital L.P. (“GNRQC”), a fund created in partnership with The Fonds de solidarit FTQ (“Fonds”), The fund has evaluated 24 projects to date and is actively engaged with 20 of both greenfield and brownfield varieties in agriculture, municipal, landfill and industrial waste applications. Several projects are in advanced stages and once the detailed engineering phase is completed, GRNQC expects to announce these investments