RE:RE:RE:RE:Someone told me that EXRO is a better2023 score card check-in In January, Exro kicked-off its launch year with a Q1 Letter to Shareholders which outlined its strategic objectives for 2023 (LINK). The purpose in setting these objectives was to continue transparency to investors while aligning with what management believes are demonstrable value drivers for the Company's shareholders. A status update on these objectives is included below: 1. Signing additional Coil Driver(TM) strategic partners that amplify its market presence. In Q1 2023, Exro announced signing a partnership with a global European-based tier-1 OEM automotive supplier. Currently under a non-disclosure agreement ("NDA"), Exro and partner remain on track for partner motor-Exro Coil Driver(TM) inverter integration and testing in Q3 2023. Following successful testing it is anticipated the identity of the 25,000+ employee partner will be announced along with commercialization plans. In Q2 2023, Exro announced signing the world's third largest motor manufacturer, Wolong Electric Group, as a strategic partner. The companies are collaborating on various motor-inverter combinations for integration and testing in Q4 2023 across a variety of low voltage and high voltage applications. Additionally, in early Q3 2023, Exro announced an innovation agreement with a Major Global Automaker, to mutually explore powertrain innovations in the Company's electric passenger vehicles utilizing Exro's advanced power electronics technology. The Parties anticipate completion of the proof-of-concept Coil Driver(TM) plus optimized motor design system by the end of Q4 2023 that demonstrate improved continuous torque and performance, followed by delivery of functional prototypes to the OEM by the end of Q4 2024. 2. Delivery of low-voltage and high-voltage design-for-manufacture (DFM) samples for customer validation. On March 25, 2023, Exro delivered an initial batch of low-voltage DFM samples to Italian OEM supplier and partner HB4. These samples have been integrated into vehicles (a truck and passenger car) and showcased in recent European trade shows. Exro has recently shipped an initial batch of DFM high-voltage samples to an NDA customer in Brazil and is readying for DFM sample integrations with both SEA Electric and Vicinity Motors in September 2023. 3. Delivery of 48V hybrid-diesel samples to our European off-highway NDA-partner in Q1. Of note, this project includes two NDA's under one umbrella partnership -- one is a large European OEM which supplies vehicles for off-highway applications, the second is a large European-based motor supplier. As previously announced, NDA partner timing bumped sample delivery into Q2 2023. Integration of the partner motor-Exro inverter solution for the OEM's hybrid-diesel platform was completed in Q2 with on-site commissioning of the combined solution scheduled in Europe in late August. On successful customer validation, the development agreement is anticipated to transition to a series production agreement for 8,000-10,000+ Coil Driver(TM) units annually. 4. Signing additional multi-year commercial agreements that build our Coil Driver(TM) order backlog. With the continued roll out of low-voltage and high-voltage DFM samples through Q3 2023, Exro has been engaged in commercial agreement discussions with numerous parties. Following customer vehicle integration and in-field validation, it is anticipated discussions will translate into supply agreements in the near term and into 2024. 5. Work through phase-2 validation and towards commercialization agreement with Linamar. In May, Exro announced the signing of a definitive commercialization agreement following the successful validation by Linamar of the parties' co-developed integrated e-Axle utilizing Exro's coil Driver(TM) traction inverter. The agreement is set for an initial five-year term, with parties committing to milestones and commercial volume targets. In accordance with the agreement, by early 2024 the parties intend to have completed a demonstration vehicle containing the e-Axle product to be utilized as a joint marketing asset for commercial vehicle customers. Series production of the e-Axle is anticipated to begin in late 2024 to support customer deliveries. 6. Growing contract services for software engineering and vehicle integration through Exro Vehicle Systems. In Q2, Exro announced a contract award by its Exro Vehicle Systems valued at US$2.35 million. The contract is for design services, including a custom battery pack solution, for a light-duty on-road electric vehicle for a leading automotive Tier-1 supplier. Delivery is on track for scheduled completion in Q4 2023. 7. Achieve Cell Driver(TM) UL Certification in Q2. As previously announced, Exro's Cell Driver(TM) Energy Storage System has successfully completed two of the three major certification phases. The system is on track to complete UL certification in Q3 2023, pushed back slightly due to scheduling at UL's certification laboratories. UL certification is required prior to connecting to the grid in North America. 8. Signing US Cell Driver(TM) distribution and installer partnerships and build order backlog. In Q1 2023, Exro announced a distribution partnership with Greentech Renewables Southwest, the largest distributor of renewable energy products in the southwestern United States with more than 80 sales centers. In Q2 2023, Exro named Re:Build Manufacturing as exclusive manufacturing partner for the Company's Cell Driver cabinets along with four new channel sales partnerships: Photovoltaics California, ProSolar, Shaw Solar, and High Point Electric which provide access to customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada. Channel partners are being trained on Cell Driver(TM) and are currently marketing and quoting the technology with solar energy, electric vehicle charging infrastructure and energy management projects. Following UL certification, Exro anticipates technology deployment with initial customer deliveries and in-field pilots to demonstrate and collect "real-world" data. 9. Achieve first deliveries and revenues for Coil Driver(TM) and Cell Driver(TM) products in Q3. Exro remains on schedule to start production of its Coil Driver(TM) and Cell Driver(TM) products in Q3 2023. Low-voltage Coil Driver(TM) products are on schedule for deliveries in September which will be followed by the start of high-voltage products in Q4 2023. Following UL Certification for Exro's Cell Driver(TM) Energy Storage System, the Company is on track to start production in Q3 2023 with initial customer deliveries and in-field pilots. 10. Continue to evaluate market conditions for a Nasdaq up list. The Company remains committed to an eventual up list and will do so when it deems an opportune time and in the best interest of shareholders. Second quarter and subsequent operating highlights On June 30, 2023, Exro announced the election of three new Directors: Aleksandra Miziolek, Anita Ganti, and Frank Simpkins. On June 7, 2023 the Company announced that Rod Copes had moved from Interim Chairman to Chairman of the Board. On May 23, 2023, Exro announced the closing of its bought deal financing, including the exercise in full of the Underwriters' (as defined below) over-allotment option, for a total of 15,525,000 common shares (the "Common Shares") sold at a price of $2.25 per Common Share for aggregate gross proceeds to the Company of $34,931,250 (the "Offering"). 2023-08-11 00:03:00 GMT (CNW) Exro Technologies Announces Second Quarter -2- On May 15, 2023, Exro announced the signing of a definitive commercialization agreement with strategic partner, and global tier-1 automotive supplier, Linamar Corporation. The agreement follows successful testing and validation by Linamar of the Parties' co-developed integrated electric axle ("e-Axle") utilizing Exro's Coil Driver(TM) traction inverter and signals a commitment by the Parties to commercialize the product for multi-year series production. In Q4 2022, Exro supplied 800V Coil Driver(TM) inverter samples designed for integration into Linamar's e-Axle program. Following successful continued testing of the samples by Linamar through the first half of 2023, the Parties have progressed to a definitive agreement intended to commercialize the co-developed e-Axle into series production. The agreement is set for an initial five-year term with the Parties committing to milestones and commercial volume targets. In accordance with the agreement, by Q4 2023, the Parties intend to build a demonstration vehicle containing the e-Axle product to be utilized as a joint marketing asset for commercial vehicle customers. On May 8, 2023, the Company announced Re:Build Manufacturing as Exro's exclusive manufacturing partner for its Cell Driver(TM). The partnership with Re:Build Manufacturing provides Exro the ability to quickly scale to capture the significant opportunity in energy storage while removing all future capital expenditure and inventory working capital requirements associated with Cell Driver(TM) manufacturing from Exro's balance sheet. The Company also announced new channel sales partnerships with Photovoltaics California, ProSolar, Shaw Solar, and High Point Electric, renewable energy and energy management integrators that cover customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada. On July 13, 2023, Exro announced an innovation agreement with a leading Major Global Automaker, to mutually explore powertrain innovations in the Company's electric passenger vehicles utilizing Exro's advanced power electronics technology. The purpose of the collaboration is to determine the performance of Exro's Coil Driver(TM) product for improving the continuous power and torque output of the powertrain in the OEM's vehicles. Under the terms of the agreement, the Parties will work together to design a proof-of-concept Coil Driver(TM) plus motor system that would specifically fit into a defined electric machine housing. Under the agreement, the Parties anticipate completion of the proof-of-concept Coil Driver(TM) plus optimized motor design system by the end of Q4 2023, followed by delivery of functional prototypes to the OEM by the end of Q4 2024. The prototypes are then expected to enter a period of testing, including performance, durability, and reliability while determining next steps.