Pacific Green Technologies Reports Mixed Q3 Results Amid Significant Revenue and Profit Declines

PACIFIC GREEN TECHNOLOGIES INC. (OTCBB: PGTK)

Pacific Green Technologies Inc. has released its quarterly financial results for the three and nine months ended December 31, 2024. The report highlights several positive and negative aspects within its income statement which we will summarize below.

Key Financial Metrics:

• Revenues: - Q3 2024: $1,521,000 (down from $10,257,000 in Q3 2023) - YTD 2024: $5,183,000 (down from $12,611,000 in YTD 2023)
• Gross Profit: - Q3 2024: $72,000 (down from $8,286,000 in Q3 2023) - YTD 2024: $237,000 (down from $7,822,000 in YTD 2023)
• Net Loss: - Q3 2024: $(3,880,000) or $(0.07) per share (compared to profit of $11,233,000 or $0.21 per share in Q3 2023) - YTD 2024: $(11,369,000) or $(0.20) per share (compared to profit of $11,180,000 or $0.23 per share YTD 2023)
• Cash Flow: - Cash at Dec 31, 2024: $3,975,000 (compared to $4,221,000 at Mar 31, 2024) - Operating activities cash outflow: $(11,108,000) for the nine months ended December 31, 2024
• Working Capital Deficit: $(25,092,000) at Dec 31, 2024 (compared to $(8,218,000) at Mar 31, 2024)

Positive Aspects:

• Cost of goods sold decreased: $1,449,000 in Q3 2024 vs. $1,971,000 in Q3 2023, indicating improved cost control.
• Reduction in total expenses: $3,977,000 in Q3 2024 as opposed to $11,594,000 in Q3 2023, largely due to non-recurrence of prior year bonuses.
• Successful project sales in the past year, indicating good opportunities in the Battery Energy Storage Systems (BESS) sector.

Negative Aspects:

• Significant decrease in revenue attributed to reduced order volume and higher customer cancellations related to scrubber systems and BESS projects.
• Continued net losses, signaling ongoing challenges in transitioning towards profitability.
• Working capital deficit raises concerns over liquidity and ability to fund operations or investments without additional financing.

In conclusion, while PACIFIC GREEN TECHNOLOGIES INC. (OTCBB: PGTK) has demonstrated improved cost management, it faces significant pressure from reduced revenues and growing losses. The company's focus on securing additional financing appears critical to meeting its operational needs in the coming year.