MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2022
This Management’s Discussion and Analysis (“MD&A”) for Eguana Technologies Ltd. (“Eguana”, or the “Company”) is dated May 1, 2023 and should be read in conjunction with Eguana’s consolidated financial statements for the fifteen month period ended December 31, 2022 and twelve month period ended September 30, 2021.
The Board of Directors approved changing the Company’s year end from September 30 to December 31 to have the Company’s year-end financial statements be more comparative with the majority of its industry peers. Consequently, the financial statements for the fifteen month period ended December 31, 2022 (“F2022”), are being presented with comparative information for the twelve month period ended September 30, 2021 (“F2021”) and the financial statements for the three months ended December 31, 2022 , are being presented with comparative information for the three months ended December 31, 2021.
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Unless otherwise indicated, all references to $ in this MD&A are to Canadian dollars. References to US$ or US dollars herein are to United States dollars.
Please read the Advisory Section of this MD&A which provides information on forward looking information and other information. Additional information relating to the Company, including Eguana’s Consolidated Financial Statements, the Company’s most recently completed Annual Information Form, news releases, and other required filing documents is available on SEDAR at www.sedar.com. The aforementioned documents are issued and made available in accordance with legal requirements but are not incorporated by reference into this MD&A.
OVERVIEW
The Company
Eguana designs, manufactures, markets, and sells a vertically integrated full stack of solutions from the Cloud to the device hardware, the Eguana ecosystem, for residential and small commercial renewable energy applications. The vertically integrated stack is centered around its proprietary advanced power electronics platform and the Eguana Cloud software platform. The ecosystems typically contain all or a combination of fully integrated energy storage systems (“ESS”), micro inverters, and cloud-based software required to aggregate systems into fleets, or power grid assets, delivering a suite of virtual power plant (“VPP”) functions. Fully integrated energy storage systems consist of three major components, the software controller (the energy management system or “EMS”), the battery module, and the advanced power control technology. Many of the Company’s patents remain within the hardware, design, and software of the advanced power controls of the ESSs.
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The Company also markets and sells a suite of micro inverter products, including a single, dual, and quad port design, which are fully integrated with its ESS platform, providing consumers with a complete solar + storage hardware and software platform architecture for residential and commercial applications.
The Company’s smart power control technology has multiple functions within the ESS with primary functions relating to power conversion and the charging and discharging of batteries or storage devices in a seamless bi-directional conversion process. Eguana’s technology provides the critical central point for connectivity of the energy ecosystem and provides regulatory and certification control over the interconnection of the ESS to the power grid and the consumer.
The ESSs are software driven battery agnostic and factory assembled, energy storage solutions which provide a host of critical functions as global power grids transition to intelligent distributed or VPP based grids. Key features include flexible capacity and power, simple installation processes, remote diagnostic and update capabilities, and remote battery recovery, which will continue to differentiate Eguana’s product offerings. The Company believes this approach, with developed channels in multiple markets, and rapid development processes, will help diversify against regulatory change and market risks typically associated with emerging renewable energy market segments.
Eguana continues to focus on distributed energy storage and residential solar applications located at the point of energy consumption, commonly referred to as the edge of the power grid or behind the meter. The Company believes these applications and storage solutions are the most cost-effective way to manage power grid capacity…
Read More: Eguana Technologies : Fifth Quarter Management Discussion & Analysis