2023 Q2 Form 10-K Financial Statement

#000121390023052925 Filed on June 29, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2023
Revenue $1.189M $779.9K $7.639M
YoY Change -41.26% -92.13% -50.52%
Cost Of Revenue $1.218M $532.0K $5.833M
YoY Change -0.88% -62.52% 28.0%
Gross Profit -$28.93K $247.9K $1.806M
YoY Change -103.64% -97.08% -83.4%
Gross Profit Margin -2.43% 31.79% 23.65%
Selling, General & Admin $6.972M $2.483M $11.84M
YoY Change 119.31% -1.18% -14.64%
% of Gross Profit 1001.45% 655.32%
Research & Development $32.20K $0.00 $13.77K
YoY Change 133.79%
% of Gross Profit 0.0% 0.76%
Depreciation & Amortization $37.12K $262.7K $1.071M
YoY Change -30.73% -42.21% 409.52%
% of Gross Profit 105.97% 59.32%
Operating Expenses $7.819M $2.464M $11.42M
YoY Change 99.14% 80.77% -48.35%
Operating Profit -$7.848M -$2.216M -$9.614M
YoY Change 150.64% -131.12% -14.38%
Interest Expense -$2.120M -$1.567M -$1.875M
YoY Change 332.91% 80.34% 254.33%
% of Operating Profit
Other Income/Expense, Net $10.81M -$1.164M
YoY Change 136439.1% -344.5%
Pretax Income $2.963M -$4.089M -$11.79M
YoY Change -194.86% 405.71% 9.69%
Income Tax $622.2K -$2.477M
% Of Pretax Income 21.0%
Net Earnings $3.288M -$3.592M -$11.32M
YoY Change -200.89% 344.26% 5.25%
Net Earnings / Revenue 276.59% -460.56% -148.15%
Basic Earnings Per Share $0.06 -$0.25
Diluted Earnings Per Share $0.06 -$0.08 -$0.24
COMMON SHARES
Basic Shares Outstanding 49.97M shares 47.28M shares 47.28M shares
Diluted Shares Outstanding 47.65M shares 47.28M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.269M $1.217M $1.217M
YoY Change 20.19% -85.19% -85.19%
Cash & Equivalents $8.269M $1.160M
Short-Term Investments $0.00 $56.48K $56.48K
Other Short-Term Assets $3.993M $789.6K $789.6K
YoY Change 200.84% 27.34% 27.34%
Inventory
Prepaid Expenses $811.5K $325.8K
Receivables $1.843M $1.391M $1.391M
Other Receivables $27.36K $359.5K $359.5K
Total Short-Term Assets $11.52M $3.757M $3.757M
YoY Change -1.67% -84.88% -84.88%
LONG-TERM ASSETS
Property, Plant & Equipment $778.1K $1.200M $1.200M
YoY Change -27.44% 2.86% -37.04%
Goodwill
YoY Change
Intangibles $6.453M $6.706M
YoY Change -6.2% -5.54%
Long-Term Investments
YoY Change
Other Assets $741.3K $18.90M $18.90M
YoY Change -93.69% 293.36% 293.36%
Total Long-Term Assets $8.231M $26.81M $26.81M
YoY Change -59.49% 94.12% 94.12%
TOTAL ASSETS
Total Short-Term Assets $11.52M $3.757M $3.757M
Total Long-Term Assets $8.231M $26.81M $26.81M
Total Assets $19.75M $30.57M $30.57M
YoY Change -38.35% -20.95% -20.95%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.791M $692.5K $692.5K
YoY Change 84.1% -8.53% -8.53%
Accrued Expenses $1.677M $2.714M $2.714M
YoY Change -63.57% -68.33% -70.68%
Deferred Revenue $8.039M $8.751M
YoY Change 8.07%
Short-Term Debt $0.00 $2.459M $2.459M
YoY Change -100.0% 4371.18% 4371.18%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $15.79M $15.54M $15.54M
YoY Change -2.79% -18.56% -18.56%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $97.78K $212.6K $212.6K
YoY Change -1.44% -37.83% -37.83%
Total Long-Term Liabilities $97.78K $212.6K $212.6K
YoY Change -1.44% -37.83% -37.83%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.79M $15.54M $15.54M
Total Long-Term Liabilities $97.78K $212.6K $212.6K
Total Liabilities $15.89M $31.41M $31.41M
YoY Change -2.79% 61.75% 5.48%
SHAREHOLDERS EQUITY
Retained Earnings -$93.66M -$96.85M
YoY Change 5.49% 13.23%
Common Stock $49.97K $372.3K
YoY Change 6.26% 691.62%
Preferred Stock
YoY Change
Treasury Stock (at cost) $99.75K
YoY Change 0.0%
Treasury Stock Shares
Shareholders Equity $4.005M -$848.1K -$848.1K
YoY Change
Total Liabilities & Shareholders Equity $19.75M $30.57M $30.57M
YoY Change -38.35% -20.95% -20.95%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2023
OPERATING ACTIVITIES
Net Income $3.288M -$3.592M -$11.32M
YoY Change -200.89% 344.26% 5.25%
Depreciation, Depletion And Amortization $37.12K $262.7K $1.071M
YoY Change -30.73% -42.21% 409.52%
Cash From Operating Activities -$6.105M $14.09M $7.998M
YoY Change -196.72% -700.98% -150.13%
INVESTING ACTIVITIES
Capital Expenditures $3.215K $0.00 $1.060K
YoY Change -64.48% -100.0% -99.04%
Acquisitions
YoY Change
Other Investing Activities $6.270M -$10.96M -$42.86M
YoY Change -189.95% 490.78% 2210.83%
Cash From Investing Activities $6.266M -$10.96M -$42.86M
YoY Change -189.79% 471.98% 2080.95%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $16.14M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $6.678M -6.036M 28.91M
YoY Change -29156.51%
NET CHANGE
Cash From Operating Activities -$6.105M 14.09M 7.998M
Cash From Investing Activities $6.266M -10.96M -42.86M
Cash From Financing Activities $6.678M -6.036M 28.91M
Net Change In Cash $7.039M -2.900M -5.949M
YoY Change -493.47% -31.93% -65.31%
FREE CASH FLOW
Cash From Operating Activities -$6.105M $14.09M $7.998M
Capital Expenditures $3.215K $0.00 $1.060K
Free Cash Flow -$6.108M $14.09M $7.997M
YoY Change -196.9% -717.02% -149.78%

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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Nature of Operations and Basis of presentation</b></span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Pacific Green Technologies Inc. (the “Company”) was incorporated in the state of Delaware, USA on March 10, 1994. The Company is in the business of acquiring, developing, and marketing environmental technologies, with a focus on emission control technologies.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In connection with preparing consolidated financial statements for each annual and interim reporting period, the Company is required to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt exists when conditions and events, considered in aggregate, indicate that it is probable that a company will be unable to meet its obligations as they become due within one year after the date that the consolidated financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans and actions that have not been fully implemented as of the date that the financial statements are issued. When substantial doubt exists, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both: (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued; and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Generally, to be considered probable of being effectively implemented, the plans must have been approved before the date that the financial statements are issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Management’s evaluation has concluded that there are no known or currently foreseeable conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these consolidated financial statements are issued. These consolidated financial statements have therefore been prepared on the basis that the Company will continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The assessment of the liquidity and going concern requires the Company to make judgments about the existence of conditions or events that raise substantial doubt about the ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. This includes judgments about the Company’s future activities and the timing thereof and estimates of future cash flows. Significant assumptions used in the Company’s forecasted model of liquidity include forecasted sales, costs, and capital expenditures. Changes in the assumptions could have a material impact on the forecasted liquidity and going concern assessment.</p>
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="vertical-align: top"> <td style="width: 24px"> </td> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Estimates</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The preparation of these consolidated financial statements in conformity with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of property and equipment and intangible assets, prepaid manufacturing costs, and contract liabilities associated with revenue contracts in progress, contingent consideration on asset acquisition, warranty accruals, going concern, and deferred income tax asset valuation allowances. Our company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by our company may differ materially and adversely from our company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</p>
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CY2022Q1 us-gaap Minority Interest Description
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The Company received $7.0 million (£5.35 million) on April 1, 2022, $1.9 million (£1.43 million) in May 2022, $0.99 million (£0.79 million) in June 2022, $1.0 million (£0.83 million) in July 2022, $1.0 million (£0.82 million) in August 2022 and $4.3 million (£3.57 million) in September 2022.
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On February 6, 2023, the Company issued 250,000 shares of common stock with an aggregate value of $162,500 as part of the consideration for intellectual property transferred from McClelland Management Inc. to the Company under the terms of an IP transfer deed dated January 4, 2023. A further 250,000 shares will be issued in January 2024 and 250,000 shares in January 2025.
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The buyer paid an advance of £20m upon signing of the Agreement, of which £7.1m was received by Pacific Green (before fees), the balance being received by the Company’s equity partner. On June 26, 2023 the transaction was formally completed and the buyer paid a further £9.9m, of which £4.2m was received by Pacific Green (before fees), the balance being received by the Company’s equity partner.
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CY2022 pgtk Impairment Of Property And Equipment
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CY2023 pgtk Interest Accretion On Finance Lease
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CY2022 pgtk Interest Accretion On Finance Lease
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CY2022 us-gaap Increase Decrease In Other Operating Liabilities
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CY2023 us-gaap Payments For Repurchase Of Common Stock
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CY2023 us-gaap Impairment Of Intangible Assets Excluding Goodwill
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CY2022 pgtk Net Income Attributable To Noncontrolling Interest Bess
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CY2022 pgtk Net Income Attributable To Noncontrolling Interest Jv
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CY2022Q1 us-gaap Other Liabilities Current
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CY2023Q1 us-gaap Loans Payable Fair Value Disclosure
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CY2023Q1 pgtk Long Term Accrued Liabilities
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CY2022Q1 pgtk Long Term Accrued Liabilities
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CY2022Q1 us-gaap Loans Payable To Bank
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CY2022Q1 us-gaap Long Term Loans Payable
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CY2023 pgtk Weighted Average Remaining Contractual Lifeyears Forfeited
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
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CY2023 us-gaap Deferred Income Tax Expense Benefit
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CY2022 us-gaap Deferred Income Tax Expense Benefit
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CY2023 pgtk Income Tax Provision
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CY2022 pgtk Income Tax Provision
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CY2023Q1 us-gaap Deferred Tax Assets Other Tax Carryforwards
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CY2023Q1 us-gaap Deferred Tax Assets Liabilities Net
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CY2022Q1 us-gaap Deferred Tax Assets Liabilities Net
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CY2023 dei Amendment Flag
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false
CY2023 dei Document Fiscal Period Focus
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CY2023 dei Entity Central Index Key
EntityCentralIndexKey
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