Corporate Cost Optimization Update
Since close of the acquisition of SEA Electric on April 5th, 2024, Exro continues to focus on restructuring the business, divesting non-core assets, and ramping up production for its blue-chip OEM customers. The Company continues to implement rigorous cost optimization measures which target an annualized reduction in General & Administrative expenses of up to US$10 million in 2024. Since April 5th, Exro has now recognized approximately US$7.5 million in annualized savings through redundancies, supply chain efficiencies, and optimized business operations. The latest savings are attributed to a wind down of Exro’s engineering services division in Detroit, talent which was duplicated internally with the acquisition of SEA Electric. The Company has a plan in place to deliver further savings through facilities rationalization, a focus on execution, and continued operational optimization.