Cleantech

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce its financial and operating results for the first quarter ended March 31, 2022.

"We are pleased with our financial results and operating performance despite navigating through a challenging business environment. Revenue contributions from our software and services business segment continue to improve our financial performance and increased to 36% of our total revenue profile in the quarter. Revenue from our Connected Devices and Infrastructure segment also grew as supply chain challenges began to stabilize throughout the quarter. Additionally, we witnessed our Gross Profit Margin increase to 48% as compared to 45% a year ago," stated Peter Londa, President & CEO of Tantalus. "Beyond our financial results, the feedback we continue to receive regarding our acquisition of Congruitive is extremely favorable, as the combined capabilities deliver a differentiated and secure smart grid platform that empowers utilities to connect devices deployed at the edge of the grid, where people live and work, directly to mission-critical systems that utilities rely upon every day to deliver power. While the current business environment remains fluid, we continue to witness strong momentum as utilities seek to digitize distribution grids to improve their resiliency and prepare for the broad adoption of electric vehicles, solar installations and distributed storage."

Consolidated Financial Highlights1:

  • Revenue for the Company increased by 16% to $9.3 million as compared to the prior year, reflecting the momentum witnessed across Tantalus' target market. Utility Software Applications and Services revenue increased by 28% to $3.4 million and represented 36% of total revenue as compared to 33% for the same period last year. The increase from software and services is tied to the increasing number of connected endpoints that drives software licenses and recurring maintenance and support agreements. Congruitive's software and services contributed approximately $290,000 in the quarter. Connected Devices and Infrastructure revenue increased by 10% as COVID-19 pandemic restrictions subsided allowing utilities to accelerate deployments. A portion of delayed shipments in 2021 also materialized in the quarter.

  • Gross Profit2 Margin increased to 48% as compared to 45% for the same period last year. The Company was able to increase Gross Profit Margin despite inflationary pressures across its supply chain. The increase in Gross Profit Margin tied to the Company's continued focus on expanding revenue contributions from software and services and managing its supply chain effectively. Moving forward, the Company initiated a price increase that went into effect on April 15, 2022, to further offset inflationary cost pressures.

  • Adjusted EBITDA3 was ($0.7 million) compared to $0.1 million in the prior year. The decline in Adjusted EBITDA was primarily due to targeted investments in research and development to accelerate key projects, integrating the team from the acquisition of Congruitive, bolstering sales and marketing activities given the continued momentum in the market, and the Company's continued absorption of costs associated with going public.

  • The loss for the period was ($1.8 million) compared to ($2.9 million) in the prior year, an improvement of 38%. The loss per share in the quarter was $0.04 compared to $0.08 in the prior year.

  • The Balance Sheet remained strong with total assets amounting to $40.0 million, inclusive of $12.0 million in cash, compared to $31.0 million of total assets and $14.2 million in cash as at December 31, 2021. The cash balance remained strong despite investing $3.5 million of cash as part of the consideration in acquiring Congruitive on January 31, 2022.

  • Adjusted Working Capital4 was $9.0 million compared to $13.6 million as at December 31, 2021. The decline in Adjusted Working Capital is primarily due to the cash consideration of $3.5 million and corresponding fees and expenses incurred as a result of the acquisition of Congruitive.

Continued Strong Momentum

  • Tantalus secured 5 new utilities in the quarter through its ongoing sales activity. Coupled with over 40 utilities within Congruitive's user community, the combined business now supports over 250 utility customers, including several of the largest investor-owned utilities ("IOUs") in the United States.

  • The Company continues to anticipate growing revenue year-over-year by 20% to 25%, targeting approximately $38.6 to $40.2 million in 2022. This guidance includes revenue contributions from the recent acquisition of Congruitive.

  • Tantalus is actively leading an effort to support current and prospective utility customers with the submission of applications to access funding across several programs being offered by the US Federal government, including the ARPA and BRIC programs. For more information, please go to the Company's website (https://www.tantalus.com/resources/funding/).

"Due to our team's ongoing commitment to adapt to changes and the continued execution of our plan, we are in the fortunate position to make prioritized investments in our next-generation TRUSense™ Fiber Gateway and our AI-enabled data analytics, both of which further position Tantalus as a market leader," noted Mr. Londa. "The TRUSense Fiber Gateway will allow utilities to backhaul consumption and power quality data across a fiber network, gain direct access to and control of EV chargers and inverters for solar panels and battery walls deployed behind the meter, and deliver broadband services to customers. Coupled with the expanding portfolio of AI-enabled data analytics, this one-of-a-kind offering will propel Tantalus forward as a market leader to truly build sustainable utilities. We remain optimistic as market dynamics remain favorable and believe Tantalus remains well positioned for the future."

The Company will hold a conference call and webcast to discuss the financial results on Wednesday, May 11, 2022 at 11:00 am Eastern Time.

Conference Call
Participant Dial In (Toll Free) 1-844-854-4410
Participant International Dial In 1-412-317-5791
Please ask to join the Tantalus Systems earnings call.

Webcast
https://services.choruscall.com/mediaframe/webcast.html?webcastid=5gmBWvNT

Replay Information
A conference call replay will be available until May 18, 2022. The webcast will be available until May 17, 2023 at the link set out above. To access the conference call replay, please see details below:

US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access Code: 1750619

Financial Statements and Management Discussion & Analysis

Please see the consolidated financial statements ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for more details. The consolidated financial statements for the quarter ended March 31, 2022, and related MD&A have been reviewed and approved by Tantalus' Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR at www.sedar.com and is also available on the Company's website at www.tantalus.com.

Non-IFRS and Other Financial Measures
This press release refers to the following non-IFRS measures:

"EBITDA" is comprised as income (loss) less interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of EBITDA to the most directly comparable financial measure. "Adjusted EBITDA" is comprised as income (loss) less interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of Adjusted EBITDA to the most directly comparable financial measure.

"Gross Profit" is comprised as the Company's revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Gross Profit Reconciliation" for a quantitative reconciliation of Gross Profit to the most directly comparable financial measure. This press release refers to "Gross Profit Margin" which is a non-IFRS ratio. Gross Profit Margin is comprised of Gross Profit expressed as a percentage of the Company's revenues. Management believes that Gross Profit Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

"Adjusted Working Capital" is comprised as current assets less current liabilities exclusive of the Company's bank loan. Management believes Adjusted Working Capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity to the Company. See "Adjusted Working Capital Reconciliation" for a quantitative reconciliation of Adjusted Working Capital to the most directly comparable financial measure.

Such non-IFRS measures and non-IFRS ratio do not have a standardized meaning under IFRS and may not be comparable to a similar measure disclosed by other issuers.

Gross Profit Margin Reconciliation

  Three months ended March 31, 2022 Three months ended March 31, 2021
Revenue$9,291,478 $ 8,011,331
Cost of sales 4,870,365 4,409,319
Gross Profit 4,421,113 3,602,012
Gross Profit Margin 48% 45%

 

Reconciliation of Net (Loss) to Adjusted EBITDA

  Three months ended March 31, 2022 Three months ended March 31, 2021
Loss for the period $(1,789,383)$(2,908,432)
Finance expense (a) 236,986 166,329
Income taxes - -
Depreciation and amortization 493,169 434,957
EBITDA (1,059,228) (2,307,146)
Stock-based compensation (b) 203,056 195,769
Foreign exchange (c) (385,050) 14,068
Congruitive acquisition related costs (d) 586,960 -
RiseTech reverse acquisition listing expense (e) - 1,188,175
Reverse acquisition legal, professional and related costs (e)  - 964,484
Adjusted EBITDA $(654,262)$55,350

 

(a)Finance expense comprised of interest and related finance expense on bank loans and lease liabilities. 
(b)Share-based non-cash compensation expense. 
(c)Foreign exchange comprised of unrealized (gain) / loss from non-functional currency assets and liabilities. 
(d)General and administrative expenses pertaining to the Company's acquisition of Congruitive.
(e)Reverse acquisition listing expense comprised of excess purchase price over RiseTech net assets acquired and costs. 

Adjusted Working Capital Reconciliation

  March 31, December 31,
Adjusted Working Capital  2022 2021
Total current assets$25,494,272$26,427,657
Less current liabilities (25,730,784) (20,953,001)
  (236,512) 5,474,656
Add Bank loans - current portion 9,200,000 8,100,000
Adjusted Working Capital $8,963,488$13,574,656

 

About Tantalus Systems Holding Inc. (TSX: GRID)

Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at www.tantalus.com.

Forward-Looking Statements:

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as those relating to: continuing extremely favorable feedback regarding our acquisition of Congruitive, strong momentum going forward as utilities seek to digitize distribution grids to improve their resiliency and prepare for the broad adoption of electric vehicles, solar installations and distributed storage, growing revenue year-over-year by 20% to 25% and targeting approximately $38.6 to $40.2 million in 2022, the development of our next-generation TRUSense Fiber Gateway and our AI-enabled data analytics, both of which further position Tantalus as a market leader, and Tantalus being well positioned for the future.

To the extent any forward-looking information in this news release constitutes a "financial outlook" within the meaning of securities laws, such information is being provided because management's estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.

In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: the expected impact of COVID-19, the expected impact of supply chain constraints, the expected impact of inflationary pressures on costs and the expected timing of new product introductions. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading "Risk Factors" in the Tantalus' Annual Information Form dated March 23, 2022, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Contact Tantalus:
Linda Armstrong
Investor Relations
647-456-9223 | larmstrong@tantalus.com

Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
Twitter: @TantalusCorp


1 Financial information is reported in United States dollars ("$") unless otherwise stated and in accordance with International Financial Reporting Standards ("IFRS"). Unless otherwise stated Q1, 2022 results are compared to the same period in 2021.

2 See "Non-IFRS and Other Financial Measures."

3 See "Non-IFRS and Other Financial Measures."

4 See "Non-IFRS and Other Financial Measures."

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/123488

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GRID:CA
Tantalus Systems

Tantalus Systems

Overview

Extreme weather conditions and consumer behaviour pattern changes, such as the shift towards electric vehicles, are increasing the number of challenges confronting utilities. These factors, coupled with existing aging infrastructure, leave legacy one-way grids unprepared and ill-equipped to manage the demands of the modern world.

Smart grids provide reliable and sustainable services to utilities by providing a digital network made up of multi-directional communications, control systems and edge-computing processing that can reduce the frequency and duration of power outages, reduce storm impacts, and restore service faster when outages occur. The global smart grid technology market is expected to triple in size from 2017 to 2023 to reach US$61 billion. As global investments in renewable energy capacity increased from $32 billion in 2004 to $282.2 billion in 2019, smart grid companies will likely present an exciting opportunity for investors.

Tantalus Systems (TSX:GRID) is a smart grid solutions provider focused on transforming aging one-way grids into future-proofed multi-directional smart grids. The company’s goal is to improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve in North America and the Caribbean Basin. Tantalus is led by a highly experienced management team with decades of experience in the energy and capital markets.

In 2013, Tantalus was the first company in their market to deliver a Linux-based edge computing platform in the utility industry. The company’s market-leading edge computing platform and its unique technical abilities set Tantalus far ahead of the competition –– many of which are only now starting to implement edge computing.

Tantalus offers a purpose-driven and cyber secure market-leading edge computing platform, robust software applications and an advanced IoT communications network. The company also aggregates and leverages 30 billion data points from its user community and utilities to provide in-depth data analytics to customers. These analytics allow utilities to efficiently and effectively manage service quality and infrastructure to save money, reduce greenhouse gas emissions, improve efficiency and avoid unwanted major events such as fires.

The company also boasts a highly impressive 99 percent customer retention rate over 30 years. As a result, Tantalus has established deep relationships with customers that typically last for 15 or more. The company also had a compounded annual customer base growth rate of 20 percent from 2013 to 2020. In the first two quarters of 2021 alone, the company added 11 new utilities to its user community for a customer base of over 200 utilities.

In August 2021, Tantalus announced strong financial results for the second quarter of 2021. The company reported a 7 percent revenue growth year-over-year for the first six months of the year from US$15 million to US$16 million. The company also reported its 18th consecutive quarter, or more than four years of delivering positive adjusted EBITDA.

Tantalus completed a C$9.9 million financing in conjunction with going public in February, 2021 and recently completed a C$10.6 million overnight-marketed financing which substantially strengthened its balance sheet. As a result of this financing, the company has a strong cash position on August 12, 2021 of approximately US$16 million.

The company also prides itself on its positive organizational culture that fosters a rewarding environment for employees to engage and contribute in the company’s key initiatives. The company’s culture breeds autonomy and accountability for all employees, including the top executives. Tantalus has 120 to 125 employees who are passionate and proud of the achievements and goals that the company has.

Going forward, Tantalus plans to continue scaling their user community of utilities, monetizing the data that is captured by their solution and expanding the applications that they deliver through investment in R&D. The company also plans to expand to new geographic regions and seek strategic partnerships and M&A opportunities.

Company Highlights

  • Tantalus Systems is a smart grid solutions provider focused on transforming aging one-way grids into future-proofed multi-directional smart grids for public power and electric cooperative utilities in North America and the Caribbean Basin.
  • Tantalus offers a purpose-driven and cyber secure market-leading edge computing platform, robust software applications, an advanced IoT communications network and deep data analytics.
  • In 2013, Tantalus was the first company in their market to deliver a Linux-based edge computing platform in the utility industry.
  • The company also boasts a highly impressive 99 percent customer retention rate over 30 years and a compounded annual customer base growth rate of 20 percent from 2013 to 2020.
  • The company has a strong cash position, strong year-over-year revenue growth and more than four consecutive years of positive EBITDA.
  • Tantalus is led by a highly experienced management team with decades of experience in the energy and capital markets.

Key Markets

Tantalus provides various smart grid solutions to customers, including advanced metering infrastructure, distribution automation, ERT meter migration, fiber-to-the-home, load management, power line communications, TUNet grid reliability analytics and insight and electric, water and gas AMR.

The company’s in-depth analytics based on data points allow utilities to efficiently and effectively manage service quality and infrastructure, automate billing, identify power outages and analyze constant power quality data to identify inefficiencies or vulnerabilities in their grid. Ultimately, this data can help utilities save money, reduce greenhouse gas emissions, improve efficiency and avoid unwanted events such as fires.

Tantalus recently announced the addition of its 200th utility joining the company’s growing user community of public power and electric cooperative utilities in Canada, the US and the Caribbean Basin. Tantalus is trusted by a variety of utilities, such as EPB Chattanooga, Entegrus and the US Virgin Islands Water and Power.

Management Team

Peter Londa – Director, President and Chief Executive Officer

Peter Londa is a seasoned smart grid technology executive with over 20 years of experience in leadership roles. Londa joined Tantalus as president & chief executive officer in 2014 and he is also a director of Tantalus. Before joining Tantalus, Londa served as the independent chair of the board of directors for World Energy Solutions Inc. (NASDAQ:XWES) and as the chair of the Merger and Acquisition Committee. Londa was actively involved in leading World Energy’s sale to EnerNOC (NASDAQ:ENOC).

Previously, Londa served as the chief executive officer of BPL Global Ltd. BPL Global is a leading smart grid company delivering technology solutions to the electric utility industry with operations in the United States, Europe, Middle East, India and China. At BPL Global, Londa was responsible for directing and managing all aspects of corporate strategy, operations, engineering, corporate development and financing. Londa was also instrumental in executing the sale of BPL Global to a division of the Danaher Corporation (NYSE:DHR). Additionally, he has held various leadership positions in the technology and investment banking industries at companies, including The Chart Group L.P., Thoughtworks, Inc. and SG Cowen. Londa is a graduate of Emory University and holds a JD, MBA in Finance and Corporate Law and a B.A. in Economics.

Dermot O’Leary – Chief Operating Officer

Dermot O’Leary is a 40-year veteran of the utility industry with expertise in all aspects of strategic planning, product development, manufacturing and supply chain processes, customer deployments, business development, contracting and international business. O’Leary currently serves as Chief Operating Officer of Tantalus. Before joining Tantalus in 2014, he served as executive vice president and general manager of the substation group of Serveron which is a VC-funded technology company that was acquired by BPL Global. Before his roles at Serveron and BPL Global, O’Leary spent the majority of his career in international executive leadership positions within Schlumberger. O’Leary served as VP and GM of Schlumberger RMS U.K. and Schlumberger Southern Africa. He also served as managing director of Schlumberger M&S South Africa and VP of sales of Schlumberger Industries North America. O’Leary was also the vice president and general manager of Cellnet, where he was responsible for the business unit P&L of the AMR group.

George Reznik – Chief Financial Officer

George Reznik has over 25 years of expertise in executive financial leadership and operations. Reznik has held key roles at rapidly growing public companies in the high technology industry. Reznik currently serves as chief financial officer of Tantalus. Before joining Tantalus in September 2020, Reznik served as chief financial officer and corporate secretary of Intrinsyc Technologies Corporation which is an IoT edge computing company. Reznik also served as the corporate finance valuation practice leader of Deloitte. At Deloitte, he was a member of the accounting practice in Canada and the United Kingdom for over 12 years. Reznik is a Chartered Professional Accountant – Chartered Accountant, a Chartered Business Valuator and a Certified Fraud Examiner. Reznik is also the 2017 recipient of the BC Public Company CFO of the Year award. Additionally, Reznik is the current chair of the BC Tech Association CFO Council.

Hugo Hodge – Executive Vice President and General Manager of the Caribbean Basin

Hugo Hodge serves as executive vice president and general manager of the Caribbean Basin for Tantalus. Hodge has dedicated his career to the success of utilities. Right before joining Tantalus, Hodge served as chief executive officer of the Virgin Islands Water & Power Authority. At Tantalus, Hodge leads strategic efforts to expand Tantalus’ presence in the Caribbean Basin through his extensive experience in distribution utility operations and his understanding of the unique business and operational issues in the region. Hodge has also held technical and leadership roles at Griffin Power (GA), Marietta Power (GA) and Georgia Power. Hodge is actively involved with the Caribbean Electric Utility Services Corporation (CARILEC), American Public Power Association (APPA) and the Electric Cities of Georgia (ECG) to support public power utilities across North America and the Caribbean.

Michael J. Julian – MBA and Chief Revenue Officer

Michael Julian served as the executive vice president of sales and commercial marketing at Tantalus for over a decade. Today, Julian is the chief revenue officer at Tantalus. As chief revenue officer, Julian is responsible for the evaluation and pursuit of strategic initiatives to accelerate revenue generation. Through the Tantalus sales organization, Julian works alongside the broader organization and executive leadership to identify paths to scale the company. Julian is a former United States Air Force officer. Julian has over 20 years of leadership, sales management and sales experience within the energy and communications industries. Julian has held roles at GE, Ericsson, Tekelec and Catapult Communications. Julian is a graduate of General Electric’s Technical Sales Program. He earned an MBA from the W.P. Carey School of Business at Arizona State University and holds a B.S. in Electrical Engineering from Villanova University.

Michael Grandis – General Counsel

Michael Grandis currently serves as the general counsel of Tantalus and is responsible for all legal matters across the company and its affiliates. He oversees contracting, corporate governance, partnership, intellectual property, employment, compliance and other transactional matters. Before joining Tantalus, Grandis was a corporate partner at Loeb & Loeb LLP in the New York law office. During this time, Grandis also acted as outside general counsel to Tantalus for several years. Grandis has nearly two decades of experience practicing law at New York law firms. Grandis has represented clients on a broad range of corporate, securities and other transactional engagements.

Additionally, Grandis serves as the chairman of the board of trustees of a charter school network in New York and also sits on the board of directors of a large youth sports organization. He also lectures on venture finance and other entrepreneurial topics at Cornell Tech which is a joint academic venture between Cornell University and the Technion-Israel Institute of Technology in New York. Grandis received his B.S. from Georgetown University and his J.D. from Columbia University School of Law where he was a member of the Columbia Business Law Review.

Laura Formusa – Chair and Director

Laura Formusa has more than 30 years of experience in the utility industry. Formusa is currently a director of Tantalus. She served as president and chief executive officer at Hydro One Inc. from 2007 until her retirement at the end of 2012. She joined Hydro One Inc. in 1980 and took on roles of increasing responsibility, including vice-president, general counsel and secretary. Formusa serves on the boards of Equitable Life Insurance Company of Canada, 407 International Inc. and ENMAX where she is chair of the Safety and Human Resources Committee. She has also served on the Boards of DHX Media Ltd., the Canadian Electricity Association, ICES and York University. Formusa has a Bachelor of Laws from York University’s Osgoode Hall Law School and holds the Institute of Corporate Directors Designation.

Dr. Francis J. Harvey – Director

Dr. Francis Harvey is currently a director of Tantalus. He served as the 19th Secretary of the United States Army from November 2004 to March 2007. As the Secretary, Harvey was responsible for the Department of the Army’s annual budget and supplemental budget of over $200 billion. He led a workforce of over one million Active Duty, Army National Guard, Army Reserve Soldiers and Department of the Army civilian employees. Before becoming the Secretary, Harvey served on six corporate boards, including three portfolio companies of the Carlyle Group. He served as the vice-chairman for two of those companies.

Currently, Harvey is on the corporate or advisory boards of six companies and private equity firms in the energy, defense and information technology sectors, including Tantalus. The majority of Harvey’s business career was spent with the Westinghouse Electric Corporation. Harvey joined Westinghouse Electric in 1969 as a senior engineer and in 1997 he became the chief operating officer. While at Westinghouse Electric, he held several senior leadership positions, including vice president of science and technology, president of the government and environmental services company and president of the defense and electronics systems group. Harvey holds a BS from the University of Notre Dame and a Ph.D. in Metallurgy and Material Science from the University of Pennsylvania.

Thomas Liston – Director

Thomas Liston is a technology investor and advisor. He currently serves on several boards of directors for public and private technology companies. He has a strong track record of shareholder value creation for the companies he has worked at. Before his current roles, he was the chief investment officer of a leading technology-focused venture capital firm that provided growth capital to late-stage private companies. Liston began his career as a research analyst covering public Software and IT Services companies. In 2003, he joined Versant Partners in the same role and was quickly promoted to director of research while maintaining his coverage of technology companies.

As a technology analyst, Liston has been consistently ranked among the top technology analysts in several surveys, including StarMine, Brendan Wood, Greenwich Associates and Reuters. Liston is a CFA charter holder. He has a Bachelor of Business Administration degree in Finance from the University of New Brunswick and a Master of Arts in Economics and Finance from Queen’s University. He was a recipient of the UNB Faculty of Management’s Certificate of Achievement in 2017 and was recognized with the Proudly UNB Alumni Award of Distinction in 2020.

John McEwen – Director

John McEwen is a co-founder of Discovery Capital and a director of the BC Discovery Fund (VCC) Inc. He has worked with nearly 200 technology companies. McEwen also serves on several investee company boards. He spearheaded corporate finance initiatives for companies such as Sierra Wireless Inc. and Circon Systems Corp. that accelerated their development by attracting key corporate and additional venture capital backing. Before co-founding Discovery Capital, he worked with IBM Canada Ltd. He holds a Bachelor of Commerce from U.B.C.

Kandiyohi Power Cooperative Validates Integration of Tantalus' TUNet Technology with Neptune's R900 System Data

Kandiyohi Power Cooperative Validates Integration of Tantalus' TUNet Technology with Neptune's R900 System Data

Utility generates incremental revenue stream by providing billing data to the neighboring utility operated by the City of Oliva, MN

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities, is pleased to announce that Kandiyohi Power Cooperative has deployed and validated the capability of the Tantalus Utility Network (TUNet®) to capture, integrate and present consumption and flow data from licensed Neptune R900® water endpoints.

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Tantalus to Report First Quarter Financial Results on May 10, 2022

Tantalus to Report First Quarter Financial Results on May 10, 2022

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce that the Company will release its first quarter 2022 financial results on Tuesday, May 10, 2022, after the market closes. The Company will hold a conference call and webcast to discuss the financial results on Wednesday, May 11, 2022, at 11:00 am Eastern Time.

Conference Call

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Tantalus and Energy Toolbase Partner to Secure First of Several Projects Bringing a Commercial-Grade Microgrid Solution to Market

Tantalus and Energy Toolbase Partner to Secure First of Several Projects Bringing a Commercial-Grade Microgrid Solution to Market

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities, is pleased to announce the deployment of an industry-leading commercial microgrid project being delivered in partnership with Energy Toolbase ("ETB"), which provides a suite of project modeling, energy storage control and asset monitoring products for solar and storage microgrid deployments.

Tantalus, through its recent acquisition of DLC Systems d/b/a Congruitive ("Congruitive"), and ETB are jointly supporting the deployment of a microgrid that includes solar panels and battery storage to provide resiliency to the headquarters of a major construction company in Riverdale, California. Designed to address the broader global microgrid market, which is expected to grow by nearly 18% annually to US$26B by 2026, the combined solution will enable the construction company to manage demand charges, perform load shifting and take advantage of other economic optimizations while being connected to the electric distribution grid, as well as providing resiliency to maintain operations in the event the headquarters experiences a power outage from their local utility. During grid power outages, the microgrid will automatically reconfigure the solar and storage system into an islanded resource, delivering backup power to the building. As part of the deployment, ETB's energy management system, known as Acumen EMS™, is providing the intelligence layer to manage the economic optimization of the system. Through its Congruence.IQ™ ("C.IQ™") Microgrid Controller, Tantalus is delivering the necessary software and tools to manage the microgrid during grid outages.

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Tantalus Systems Holding Inc. Reports Financial Results for Fourth Quarter and Fiscal 2021

Tantalus Systems Holding Inc. Reports Financial Results for Fourth Quarter and Fiscal 2021

Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company"), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce its financial results for the fourth quarter and year ended December 31, 2021.

"2021 was a historic year for Tantalus as we successfully migrated to the public markets, secured over CAD$20 million through two financings and continued to witness strong growth in our user community of utilities throughout the year," said Peter Londa, President & CEO of Tantalus. "During 2021, we delivered year-over-year growth of 27.5% in orders from our sales pipeline, expanded our user community to over 210 utilities by adding 25 new customers and launched our first AI-enabled data analytics tool to help utilities improve their resiliency. Looking forward to 2022, we anticipate strong revenue growth with approximately US$27 million in backlog that is expected to be shipped during the year. We are also witnessing strong secular drivers that are motivating utilities to modernize their distribution grids."

Extreme weather continues to challenge the resiliency of distribution grids while the availability and accelerating adoption of electric vehicles is stressing existing grid infrastructure by increasing the amount of power consumers require, changing the location where electricity needs to be delivered and altering the timing of peak load profiles that utilities are required to manage. Coupled with investments being made by homeowners and businesses to install roof-top solar panels that are expected to deliver power from the edge of the grid, the utility industry is facing an unprecedented number of challenges that require upgrades to distribution grids across North America. "These challenges create urgency among utilities to digitize their grids. By doing so, utilities gain situational awareness and the necessary command and control of critical assets," said Mr. Londa. "Our strong balance sheet enabled us to execute the recently announced acquisition of Congruitive which places Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability."

Q4, 2021 and Year-to-Date Financial Summary

(Financial information is reported in United States dollars ("$") unless otherwise stated and in accordance with International Financial Reporting Standards ("IFRS")).

Key financial results for the quarter are compared to the same timeframe in the previous year unless otherwise stated.

  • The Company reported revenue of $7.6 million for Q4, 2021 as compared to $9.3 million for the prior year quarter and $32.2 million during the twelve months of 2021 compared to $33.0 million for 2020. The decline in revenue was directly tied to supply chain constraints and shipping delays of contracted revenue in 2021 that has been delayed into 2022.

  • The Company reported Gross Profit[1] of $3.4 million representing a Gross Profit margin of 44% for Q4, 2021 as compared to $4.8 million and a Gross Profit margin of 52% for the prior year quarter. The decline in Gross Profit and Gross Profit margin was due to increasing costs associated with supply chain constraints and logistics, delayed revenue moving out of 2021 and into 2022 and the mix of products sold during the quarter. Gross Profit reported for the twelve months of 2021 was $14.4 million representing Gross Profit Margin of 45% as compared to $16.1 million and 49% for 2020.

  • The Company reported Adjusted EBITDA[2] of ($1.27 million) in Q4, 2021 as compared to $0.82 million in the prior year quarter and ($1.73 million) for the year ended December 31, 2021 as compared to $2.63 million in 2020. The decline in Adjusted EBITDA was primarily due to the absorption of public company expenses incurred during 2021 for the first time and the loss of SR&ED credits in 2021. The Company also witnessed increased costs across its supply chain.

  • The Company had total assets of $31.0 million as at December 31, 2021, inclusive of $14.2 million in cash, compared to $23.5 million as at December 31, 2020, inclusive of $4.6 million in cash.

  • The Company had Adjusted Working Capital[3] as at December 31, 2021 of $13.6 million compared to $3.5 million as at December 31, 2020.

Operating Highlights for the Fourth Quarter of 2021

  • Growth of Tantalus' User Community: Tantalus increased its customer base to over 210 utilities with the addition of 7 new utilities during Q4, 2021 and a total of 25 new utilities for the twelve months of 2021. The Company surpassed 2.8 million endpoints shipped, collecting more than 30 billion data points related to energy consumption and power quality. Within its existing user community, the Company has over 1.6 million available endpoints to deploy in the future that will drive revenue and access to additional data for its expanding software and analytics packages.

  • Release of Tantalus Grid Reliability Analytics ("TGRA"): Tantalus introduced its first AI-enabled data analytics solution to improve the resiliency of utilities. The TGRA solution utilizes algorithms to continuously monitor power-quality data accessed by TRUEdge®-enabled endpoints on Tantalus' TUNet® smart grid platform. By detecting anomalies in power quality, the solution identifies symptoms of failing transformers, corroded meter sockets and splices, cracked insulators and other latent equipment problems. The analytics solution leverages data from Tantalus' AMI system to provide utilities with visibility into power quality issues that lead to outages and premature failure of devices deployed across the distribution grid. After launching the first commercial version of TGRA in September, 2021, the Company secured its first six utilities from the existing user community that have subscribed to a Software-as-a-Service (SaaS) offering.

  • Introduction of a Next-Generation Fiber Gateway: Tantalus initiated the development effort of the recently announced TRUSense™ Fiber Gateway, a next-generation Fiber-to-the-Home ("FTTH") solution that is intended to enable utilities to leverage investments in fiber to not only improve the resiliency of their distribution grids but also address the broadband divide that surfaced during the COVID-19 pandemic by delivering broadband services to consumers. The TRUSense Gateway will also serve as the basis for Tantalus to enable utilities to go behind the meter to access and control electric vehicle charging stations, solar inverters and other intelligent devices inside premises. To increase awareness and to accelerate our business development activities, Tantalus announced a partnership with Irby Utilities which will broaden Tantalus' sales channel to drive market adoption.

Strong Momentum Heading Into 2022

  • Revenue Guidance: The Company anticipates growing revenue year-over-year by 20% to 25% in 2022, targeting approximately $38.6 to $40.2 million in 2022. This guidance includes revenue contributions from the recent acquisition of Congruitive and is based on the Company's existing backlog to be recognized in 2022 of approximately $27 million.

  • Acquisition of Congruitive: The addition of Congruitive places Tantalus at the forefront of helping utilities modernize their systems by seamlessly integrating electric vehicles ("EVs") and distributed energy resources ("DERs") to improve the resiliency and reliability of distribution grids. Congruitive translates data across multiple devices and platforms allowing utilities to operate smart grids as one intelligent and secure system. The Company anticipates that the demand for this solution will grow significantly as EV and DER adoption continues to expand rapidly. In addition to broadening Tantalus' solutions, the acquisition of Congruitive also enables the Company to pursue investor-owned utilities (IOUs) and additional verticals, thereby increasing the Company's total addressable market opportunity.

  • Stimulus Funding: Tantalus is actively leading an effort to support current and prospective utility customers with the submission of applications to access funding across several programs being offered by the US federal government, including the ARPA and BRIC programs. For more information, please go to the Company's website (https://www.tantalus.com/resources/funding/).

While the growth horizon remains favorable for Tantalus, management is mindful of the ongoing worldwide disruption to the availability of electronic components, particularly with respect to semiconductors, and is actively implementing appropriate strategies to mitigate disruptions to project deployments. Management is also prioritizing the health and safety of Tantalus' employees due to the continued impact of the COVID-19 pandemic. Additionally, Tantalus is actively managing inflationary pressures that may impact costs across our business.

The Company will hold a conference call and webcast to discuss the financial results on Wednesday, March 23, 2022 at 2:00 p.m. Eastern Time.

Conference Call
Participant Dial In (Toll Free) 1-844-854-4410
Participant International Dial In 1-412-317-5791

Webcast
https://services.choruscall.com/mediaframe/webcast.html?webcastid=tgsu6HTG

Replay Information
A conference call replay will be available until March 31, 2022. The webcast will be available until March, 23, 2023 at the link set out above. To access the conference call replay, please see details below:

US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free 1-855-669-9658
Replay Access Code 5067892

Financial Statements and Management Discussion & Analysis

Please see the consolidated financial statements ("Financial Statements") and related Management's Discussion & Analysis ("MD&A") for more details. The consolidated financial statements for the year ended December 31, 2021 and related MD&A have been reviewed and approved by Tantalus' Audit Committee and Board of Directors. For a more detailed explanation and analysis, please refer to the MD&A that has been filed on SEDAR at www.sedar.com and is also available on the Company's website at www.tantalus.com.

About Tantalus Systems Holding Inc. (TSX: GRID)

Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at www.tantalus.com.

Non-IFRS and Other Financial Measures

This press release refers to the following non-IFRS measures:

"EBITDA" is comprised as income (loss) less interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of EBITDA to the most directly comparable financial measure. "Adjusted EBITDA" is comprised as income (loss) less interest, income tax, depreciation, amortization, stock-based compensation, foreign exchange gain (loss) and other income / expenses not attributable to the operations of the Company. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Reconciliation of Net (Loss) / Income to Adjusted EBITDA" for a quantitative reconciliation of Adjusted EBITDA to the most directly comparable financial measure.

"Gross Profit" is comprised as the Company's revenues less cost of sales. Management believes that Gross Profit is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See "Gross Profit Reconciliation" for a quantitative reconciliation of Gross Profit to the most directly comparable financial measure. This press release refers to "Gross Profit Margin" which is a non-IFRS ratio. Gross Profit Margin is comprised of Gross Profit expressed as a percentage of the Company's revenues. Management believes that Gross Profit Margin is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company.

"Adjusted Working Capital" is comprised as current assets less current liabilities exclusive of the Company's bank loan. Management believes Adjusted Working Capital is a useful indicator for investors, and is used by management, for evaluating the operating liquidity to the Company. See "Adjusted Working Capital Reconciliation" for a quantitative reconciliation of Adjusted Working Capital to the most directly comparable financial measure.

Such non-IFRS measures and non-IFRS ratio do not have a standardized meaning under IFRS and may not be comparable to a similar measure disclosed by other issuers.

Gross Profit Reconciliation

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Table 1: Gross Profit Reconciliation

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Reconciliation of Net (Loss) / Income to Adjusted EBITDA

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Table 2: Reconciliation of Net (Loss) / Income to Adjusted EBITDA

To view an enhanced version of Table 2, please visit:
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a)Finance expense comprised of interest and related finance expense on bank loan and lease liabilities (see Financial Statements).
b)Stock-based compensation comprised of non-cash compensation (see Financial Statements).
c)Foreign exchange comprised of unrealized loss from non-functional currency assets and liabilities (see Financial Statements).
d)Other income comprised of the gain on Energate Inc. acquisition arbitration share cancellation and government assistance benefit received pertaining to the COVID-19 Pandemic (see Financial Statements inclusive of note 21).
e)General and administrative expenses pertaining to the Company's acquisition of Congruitive completed on January 31, 2022 (see notes 20 and 25 to the Financial Statements).
f)General and administrative expenses pertaining to the Company's acquisition of Energate Inc. arbitration (see notes 14(g) and 20 of the Financial Statements).
g)Reverse acquisition listing expense comprised of excess purchase price over RiseTech Capital Corp. net assets acquired (see notes 4 and 20 in the Financial Statements).
h)Reverse acquisition costs comprised of legal and professional fees (see notes 4 and 20 in the Financial Statements).

Adjusted Working Capital Reconciliation

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Table 3: Adjusted Working Capital Reconciliation 

To view an enhanced version of Table 3, please visit:
https://orders.newsfilecorp.com/files/7752/117710_75d53cee04445801_004full.jpg

Forward-Looking Statements:

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements such as: we anticipate strong revenue growth with approximately US$27 million in backlog that is expected to be shipped during the year; we are also witnessing strong secular drivers that are motivating utilities to modernize their distribution grids; the recently announced acquisition of Congruitive which places Tantalus at the forefront of helping utilities prepare for the significant impact that electric vehicles and distributed energy resources will have on their resiliency and reliability; the Company has over 1.6 million available endpoints to deploy in the future that will drive revenue and access to additional data for its expanding software and analytics packages; ; the Company anticipates growing revenue year-over-year by 20% - 25% in 2022, targeting approximately $38.5 to $40.0 million in 2022; demand for the Congruitive solution is expected to grow significantly as EV and DER adoption continues to expand rapidly in 2022; and, the acquisition of Congruitive also enables Tantalus to pursue investor-owned utilities (IOUs) and additional verticals, thereby increasing the Company's total addressable market opportunity.

To the extent any forward-looking information in this news release constitutes a "financial outlook" within the meaning of securities laws, such information is being provided because management's estimate of the future financial performance of Tantalus is useful to investors, and readers are cautioned that this information may not be appropriate for any other purpose and that they should not place undue reliance on such information.

In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: the expected impact of COVID-19 and the expected timing of new product introductions. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein.A complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading "Risk Factors" in the Tantalus' Annual Information Form dated March 23, 2022, as well as those risk factors included with Tantalus' continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Contact Tantalus:
Jacquie Hudson
Marketing Communications Manager
613-552-4244 | jhudson@tantalus.com

Linda Armstrong
Investor Relations
647-456-9223 | larmstrong@tantalus.com

Website: www.tantalus.com
LinkedIn: LinkedIn/company/tantalus
Twitter: @TantalusCorp

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Smart grid technology leader Tantalus Systems (TSX: GRID) ("Tantalus" or the "Company") is pleased to announce that the Company will release its fourth quarter and year end 2021 financial results on Wednesday, March 23, 2022, before the market opens. The Company will hold a conference call and webcast to discuss the financial results on Wednesday, March 23, 2022, at 2:00 pm Eastern Time.

Conference Call

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 Facedrive Inc. (" STEER " or " the Company ") (TSXV: FD) (OTCQX: FDVRF), an integrated ESG technology platform, is pleased to announce it has successfully rolled out its Delivery as a Service (" DaaS ") offering with over 200 small and medium businesses (" SMBs "), and is now marketing such services to large big box retailers. STEER's DaaS offering provides a last mile logistics solution for retailers to offer just-in-time deliveries to end-users. The Company expects the DaaS platform to be a key element of its business and a valuable driver of ESG data, reporting and analytics.

DaaS by STEER (CNW Group/Facedrive Inc.)

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The global Delivery as a Service market, valued at USD 18.7Bn in 2020, is expected to grow at 18.9% CAGR for the period 2021-2027 1 , making it one of the high-growth sectors in today's global economy. This growth has been accelerated by the global impact of the COVID-19 pandemic and goes beyond food deliveries, spanning nearly all categories of consumer products.  This megatrend presents qualified providers like STEER with a potentially-lucrative opportunity to increase market presence and significantly increase revenues.

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"Delivery as a Service represents a natural evolution for our Company. Having built significant assets and expertise in the mobility and food delivery segments, it is important for us to leverage our existing assets to enter a growing market space. It allows us to grow incremental revenues in the near future while not increasing costs at the same rate. We have confirmed the demand during our launch with over 200 small and medium vendors and are now focused on large retail customers. With the launch of DaaS, STEER's vision of creating a one-stop shop ecosystem for an environmentally-conscious B2C and B2B consumer has come a step closer to fulfilment", said Suman Pushparajah , Chief Executive Officer.

________________________________
1 https://www.globenewswire.com/news-release/2021/09/02/2290996/0/en/Last-Mile-Delivery-Market-is-Expected-to-Reach-to-USD-62-7-Bn-with-CAGR-of-18-9-by-2027.html

About the Company

STEER is an integrated ESG technology platform that moves people and delivers things through subscription and on-demand services. The Company's goal is to build a one-of-a-kind system that aggregates conscientious users, through a series of connected offerings, and enables them to buy, sell, or invest with the same platform, STEER. The Company's offerings generally fall into two categories: subscription-based offerings led by its flagship electric vehicle subscription business, Steer EV, and on-demand services incorporating delivery, B2B marketplace, Delivery-as-a-Service (DaaS) and rideshare businesses. The Company's platform is also powered by EcoCRED, its big data, analytics and machine learning engine which seeks to capture, analyse, parse and report on key data points in ways that measure the Company's impact on carbon reductions and offsets.

For more about the Company, visit www.facedrive.com .

STEER
100 Consilium Pl, Unit 400
Scarborough , ON
Canada M1H 3E3
www.facedrive.com

Forward-Looking Information

Certain information in this press release contains forward-looking information, including with respect to the Company's business, operations and condition, management's objectives, strategies, beliefs and intentions, and the company's forward plans to rebrand. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events, such as those pertaining to the Company's next step launch with big box retailers, may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.

See "Forward-Looking Information" and "Risk Factors" in the Company's Annual Management Discussion & Analysis (MD&A) for the year ended December 31, 2021 (filed on SEDAR on may 2, 2022 ) and its interim MD&A for the period ended September 30, 2021 (filed on SEDAR on November 29, 2021 ) for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

STEER Logo (CNW Group/Facedrive Inc.)

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/steer-announces-rollout-of-its-delivery-as-a-service-daas-offering-with-200--small-and-medium-businesses-301547644.html

SOURCE Facedrive Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2022/16/c1734.html

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