Quadrise Faces Material Uncertainty Amid Widened Pretax Loss

Quadrise, a prominent U.K. energy technology company, has recently expressed concerns about its ability to continue as a going concern. During the first half of the year, the company experienced a significant increase in operational costs, which caused its pretax loss to widen.

Challenging Financial Results

For the six months ended June 30, Quadrise reported a pretax loss of £3.2 million ($3.9 million), compared to a loss of £2.8 million during the same period the previous year. The loss was primarily attributed to the rising production and development costs, in addition to corporate expenses. Unfortunately, the company did not disclose any revenue for the mentioned period, which is a stark contrast to the £75,000 it generated in the first half of 2022.

Uncertainty Looms

Due to these unfavorable financial results, Quadrise highlighted that achieving profitability and positive cash flow from its activities is not guaranteed. The company remains uncertain about its ability to achieve sustainable profitability and maintain positive cash flow in the long run.

However, Quadrise is cautiously optimistic about its future prospects. The company expects to receive $1.5 million from Valkor, which it believes will be sufficient to cover its expenses until it starts generating commercial revenue. Nevertheless, there is still a material uncertainty regarding its ability to continue operating as a going concern.

A Glimpse into the Future

Jason Miles, the Chief Executive Officer of Quadrise, provided insight into the progress of key projects during this challenging period. He acknowledged that progress was slower than anticipated but expressed optimism that important milestones were nearing completion. The company is currently in discussions with MSC and other stakeholders to sign agreements for a commercial vessel trial, which is expected to commence in the first quarter of 2024.