LONDON - Active Energy Group plc (AIM: AEG, OTCQB: ATGVF), a company specializing in biomass-based renewable energy, disclosed its audited results for the fiscal year ending December 31, 2023, revealing significant operational challenges and financial losses.
The company, which focuses on producing next-generation biomass products, reported an operating loss of $15.5 million for the year, compared to a loss of $1.3 million in the previous year. The loss per share from continuing operations was $2.37 cents, a stark contrast to the earnings per share of $0.69 cents reported in 2022. Cash reserves were significantly reduced to $319,137 as of December 31, 2023, down from $2.6 million the year before.
Operational setbacks included delays in the construction and production commencement at the Ashland (NYSE:ASH) Reference Facility in Maine. Active Energy's production and engineering partner, Player Design Inc. ( PDI (OTC:IDXG)), encountered issues ranging from design problems to delays in component delivery. As the year progressed, PDI informed Active Energy of its decision to terminate its relationship with the company, citing an unwillingness to continue under the existing commercial terms.
Despite these challenges, Active Energy managed to extend its intellectual property portfolio with new patents in the US and Canada, and secured future customer interest in visiting the site.
Post-year-end activities saw the company struggling to find a resolution with PDI, ultimately leading to a compromise agreement in February 2024 that resulted in the return of $1.6 million to Active Energy. However, with limited financial resources following the settlement, Active Energy scaled back its business operations in April 2024 to explore alternative options for monetizing its CoalSwitch® intellectual property.
In a bid to secure additional funding, Active Energy raised £200,000 ($260,878) from Zen Ventures Limited in October 2024 through the issuance of loan notes. Additionally, two directors, Jason Zimmerman and Max Aitken, resigned from the company on November 1, 2024.
This news comes after Active Energy made non-material typographical amendments to its initially released audited results for 2023. The revised document was published today, with changes marked by asterisks.
The information provided is based on a press release statement from Active Energy Group PLC.
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