Alkaline Fuel Cell Power Announces Filing of Third Quarter Financial Statements and MD&A

TORONTO, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Alkaline Fuel Cell Power Corp. (NEO: PWWR)(OTCQB:ALKFF) (Frankfurt: 77R, WKN: A3CTYF) ("AFCP" or the "Company"), a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech, is pleased to confirm the filing of its financial and operating results for the nine months ended September 30, 2022 and 2021. Select financial and operational information is outlined below and should be read with AFCP’s consolidated financial statements and management’s discussion and analysis (“MD&A”) for the third quarter ended September 30, 2022 and 2021, which is available on SEDAR at www.sedar.com and on AFCP’s website at www.fuelcellpower.com.

“We are extremely pleased to have met our short-term objectives of generating immediate revenue while continuing to build toward longer-term growth and expansion, with AFCP remaining on track to deploy approximately $50 million in capital over next two to three years,” stated Frank Carnevale, Chief Executive Officer. “We’re in the advanced stages of securing growth capital that will enable the Company to move our sales pipeline, acquisitions and fuel cell technology forward.”

Q3 2022 Highlights

Advancing PWWR Flow’s (Near-Term) Revenue Strategy

• Realized first full quarter of revenue in the Company’s history with $134,616 (2021 -$Nil) of revenue generated by the Company’s recently acquired Combined Heat & Power (“CHP”) asset;
• Announced on August 16^th, 2022 the advancement of a PWWR Flow CHP capital project of approximately $2.2 million for a condominium in mid-town Toronto, Canada (the “CHP Project”), which is expected to generate total revenue of more than $16 million for PWWR Flow over a 25-year Energy Service Agreement timeframe, with an expected July 2023 Commercial Operation Date.
• Secured the strongest PWWR Flow sales pipeline in the Company’s history with an estimated capital investment opportunity of over $50 million in potential CHP projects over the next 24-36 months. Assuming all of the potential CHP systems reach commercial operation, forecast gross revenue could total up to approximately $16 million, forecast EBITDA could total up to approximately $7 million leading to forecast net income totaling up to approximately $1.5 million (see forward-looking statements at the end of this release).
• Appointed an Advisor, Carmine Marcello, formerly CEO at Hydro One Inc., one of Canada’s largest transmission and distribution companies, having a market cap of over $20 billion and over $23 billion in assets.

Continuing to Drive Fuel Cell’s Mid-Term and Long-Term Strategies

• Announced a supplement to the Company’s 4 kW CHP fuel cell by introducing a range of generator fuel cells that target more immediate revenue opportunities within the off-grid and back-up generator markets and are intended to provide systems that have a power capacity of between 40kW and 100kW.
• Announced a letter of intent (“LOI”) with Progressus Clean Technologies Inc. (“Progressus”) on September 20, 2022, to complete a joint venture (“JV”) pilot project that aims to provide a solution for natural gas utilities to directly power both residential and commercial businesses.
• Received early interest from several parties to deploy the Company’s fuel cells in various pilots.
  

Results of Operations

During the nine months ended September 30, 2022, the Company recorded a loss of $4.2 million compared to a loss of $8.0 million for the same period in 2021 (the “comparative period”). The decrease in loss is primarily due to lower stock-based compensation and marketing expenses, partially offset by increased operational activities during 2022. AFCP also generated revenue of $134,616 (2021 -$Nil) from the Company’s recently acquired AI Business.

A summary of certain significant changes to operations include:

• Management and consulting fees of $1,428,217 (2021 - $1,838,035) represent fees accrued to directors, officers and consultants of the Company. Expenses during the 2022 period decreased relative to the comparative period due to management fees charged by incoming officers of the Company and its subsidiaries as well as incremental consulting fees incurred to restructure and streamline AFCP’s business and operations.
• General and administrative expenses were $568,014 (2021 – $257,967), comprised of corporate administration, office expenses, travel and bank charges, incurred to maintain the Company’s good standing. Increased expenses during the 2022 period are attributable to higher upkeeping costs for subsidiary offices operating in Belgium and the Czech Republic, as well as additional operations for the AI Business.
• Marketing and advertising decreased significantly to $209,543 (2021 - $2,293,265) as the Company had entered into a consulting agreement in 2021 for the provision of investor relations and marketing services in consideration for $2,220,150, whereas no such agreement was in place during 2022.
• Professional fees of $453,665 (2021 - $343,638) include audit, accounting and legal fees, and were higher in 2022 due to legal and accounting costs associated with the acquisition of AI Renewables, as well as legal and accounting costs associated with the overall increase in the complexity of the Company’s operations.
• Regulatory and filing fees were $59,013 (2021 - $139,899), related to filing and listing fees as well as transfer agent fees, while the comparative period reflects higher fees incurred due to listing on the NEO exchange.
• Share-based compensation of $123,858 (2021 - $2,972,701) related to the issuance of 2,600,000 stock options at an exercise price of $0.12 per option for five years and 1,200,000 stock options at an exercise price of $0.15 per option for five years to management and consultants. During the comparative period, share-based compensation related to the issuance of 3,000,000 stock options at an exercise price of $0.25 per option for five years, 13,812,500 stock options at an exercise price of $0.33 per option for five years to management and consultants and 200,000 stock options at an exercise price of $0.33 per option for five years to consultants.
• Wages and salaries of $1,015,785 (2021 - $117,396) related to compensation expense for employees increased compared to 2021 due to the addition of new employees in 2022, brought on to facilitate the development of the Company’s new principal business.
  

As at September 30, 2022, AFCP had working capital of $724,761 and cash on hand of $1,577,907 compared to working capital of $6,112,617 and cash on hand of $5,869,082 at December 31, 2021.

ABOUT ALKALINE FUEL CELL POWER CORP. (NEO: PWWR)

AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech. We bring ‘Power to the People’ today, combining a stable revenue stream with a future forward vision to commercialize our advanced hydrogen fuel cell technology to meet the massive global market need, and ultimately generate compelling returns for investors.

AFCP operates through two global entities: Fuel Cell Power NV, a wholly owned subsidiary in Belgium, and PWWR Flow Streams (“PWWR Flow”), an AFCP brand in Canada.

• Fuel Cell Power NV is focused on the development, production and commercialization of microcombined heat and power (“micro-CHP”) systems and off-grid and back-up power generators based on advanced alkaline fuel cell technology that generates zero CO2 emissions. Fuel Cell Power NV is working through milestones to deliver a commercialized alkaline fuel cell in 2024.
  
• PWWR Flow is focused on the development, ownership and operations of combined heat and power (“CHP”) assets. PWWR Flow assets deliver efficiency improvements of over 20% with reduced costs to customers in multi-residential and commercial applications. PWWR Flow has contracted existing CHP assets in Toronto, Canada, and has an additional pipeline of potential contracts valued at over $50 million currently in development.
  

AFCP is well positioned to deliver ‘Power to the People’ in the global energy transition while offering a diversified cleantech growth platform for investors. Further information is available on the Company website at https://www.fuelcellpower.com/, and the Company encourages investors and other interested stakeholders to follow it on: LinkedIn, Twitter, Facebook, Instagram and YouTube. Common shares are listed for trading on the NEO under the symbol “PWWR”, the OTC Venture Exchange “OTCQB” under the symbol “ALKFF” and on the Frankfurt Exchange under symbol “77R” and “WKN A3CTYF”.

For further information, please contact:

Frank Carnevale
Chief Executive Officer
+1 (647) 531-8264
[email protected]

Forward-Looking Information

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “achieve”. Forward-looking statements may include, but are not limited to, statements with respect to the Company’s technology, intellectual property, business plan, objectives and strategy.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

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