MD&AOPER ATIONAL AND FINANCIAL HIGHLIGHTS
As discussed further in the remainder of this MD&A and accompanying financial statements, the Company notes the following significant financial and operational achievements realized during the quarter ended July 31, 2023:
• Progressive Planet announced it had finalized a sales off-take agreement with Lafarge Canada for all the anticipated production from its planned PozGlass™ pilot plant.
Progressive Planet expects construction of the pilot plant to begin in the current fiscal year and is targeting to fund building and equipment costs with non-dilutive financing.
• Revenue decreased by 1.8% from $5.03 million for the quarter ended July 31, 2022, to $4.93 million in the quarter ended July 31, 2023.
• Increased gross margin1 of the base business by 3.1% from the quarter ended July 31, 2022 (23.5%) to the quarter ended July 31, 2023 (26.6%).
• Cost of sales and selling expenses decreased by 5.8% and 27.2% respectively, as a result of operational improvements made in fiscal 2023.
• Operating cash flow increased from negative $0.71 million for the quarter ended July 31, 2022 to positive $0.13 million in the quarter ended July 31, 2023 – an increase of $0.84 million.
• Net loss of $0.49 million in the quarter ended July 31, 2023 – includes $0.23 million in research and development expenditures as well as $0.23 million in share-based compensation.
• Existing credit facilities remain unused with $3.21 million in available credit at the quarter ended July 31, 2023.
• Investment in research and development of $0.23 million related to the development of low carbon and carbon sequestering cement and agriculture products expected to position the Company for long term revenue growth and profitability.