Ad-hoc announcements

Here are the 10 latest news. Earlier ones see   Ad-Hoc Archive

 

 

iQ Power Licensing publishes Annual Results 2017

 

  • Revenue from license business increased in the second half of 2017 by 85% compared to the first half of 2017
  • Total annual revenue 2017 was CHF 686´000
  • Earnings from operating business in the second half of 2017 improved by CHF 0.5 million over first half 2017
  • New business models developed to increase revenue and profitability
  • Anticipated entry of new majority shareholder in mid-2018 with funding of EUR 14 million at EUR 0,07 per share will create totally new operational environment

 

Zug, Switzerland, May 12, 2018  –  iQ Power Licensing AG (ISIN: CH028536338, WKN: A14M1C / Symbol iQL), the developer and marketer of technologies and their licenses for environmentally friendly and technologically leading starter batteries for motor vehicles, publishes the figures for the fiscal year 2017 and gives an overview of the current and future business.

 

Business Operations

Activities in South Korea in the second half of 2017 was dedicated to further expanding the production capacity and improving the reliability of the production of iQ Power´s Korean licensee iQ Power Asian Inc. In Q4 2017, the strategic Canadian partner of iQ Power Licensing AG, Discover Energy Corporation (DEC), officially took over the factory of the South Korean Licensee and re-named it Discover Mixtech Manufacturing Corporation (DMC). The CEO is the co-owner of DEC, Mr. Steve Nam, a Canadian citizen with roots in South Korea.

During the second half of 2017 the production capacity increased, however DMC failed to achieve the ambitious targets, which iQ Power Licensing had anticipated in the first half of 2017. New equipment is continuing to be installed for a second production line and a large increase in capacity and sales is anticipated for 2018. It should be noted that in addition to batteries with the iQ Power mixing technology, Discover Mixtech Manufacturing also produces products without this special feature to meet customer requirements for budget batteries with limited warranty.

In 2017 a close cooperation was started with a leading German developer of battery production technology for a new battery production machinery. The partnership resulted in a joint patent with iQ Power Licensing for a groundbreaking machine for the production of lead-grids for batteries for automotive and stationary applications.

Developments for other areas of battery production has led to iQ Power Licensing introducing a new concept battery factory called ´battery factory of the future`. Factories based on this concept will be able to produce batteries in less than half the time of conventional battery factories and save more than 25% of energy costs. This factory will also integrate the electrolyte mixing technology of iQ Power plus other new technologies currently under development at iQ Power and its partners. It will result in battery cycle life being increased by four times or more versus conventional batteries at only a small on-cost. The new concept battery factory with its advanced new production technologies also applies to the production of AGM batteries.

 

Financial Results

The results of the second half year of 2017 were in line with expectations, with no major unusual expenses.

The net revenue for the second half was CHF 445´000, an increase of 85% versus the first half of 2017. The revenue increase came from the strategic licensee, Discover Mixtech Manufacturing Corporation in South Korea, which was able to increase capacity and sales. Total year sales were CHF 686´000.

The net revenues are a combination of license margin from plastic parts for the mixing devices and license income.  

The loss from on-going operations for the second half of 2017 was CHF 451´000, which is a great improvement to the first half of 2017 (CHF -1´110´000). The improvement came from improved revenues and lack of extraordinary expenses, as occurred in the first half of 2017. For the total year, the loss was greatly reduced, from CHF 4.244 million in 2016 to CHF 1.567 million. As noted in earlier reports, the write-down of the participation in the South Korean factory weighed on earnings greatly in 2016.

In the first half of 2017 losses after tax were higher than would normally be anticipated due to non-operational losses. These negative profit events included a non-cash write down attributable to currency losses as the Swiss Franc weakened significantly against the Euro. iQ Power Licensing AG has almost EUR 3 million in financial assets, which must be adjusted for exchange rate differences to the balance sheet currency, the Swiss Franc.

In the first half of 2017, there was also unanticipated non-cash expense of CHF 192´000 from a write-off of the investment in the small industrial battery company in Germany.

The total assets of the company were largely unchanged from the first half of 2017 at CHF 4.5 million. The equity as a percent of total assets was 17%. The cash balance of the company was adequate at CHF 253´000.

 

Outlook for 2018

The anticipated entry of a new majority shareholder in mid-2018 will create a totally new operational environment for iQ Power Licensing. The funding of at least EUR 14 million will allow rapid expansion and productive implementation of the new business opportunities developed in 2017.

The introduction of new financial resources will allow for quick realization of the new businesses and will lead to a profit for the iQ Power Licensing AG in the second half of 2018. A new era of financial stability and explosive earnings growth is foreseen by the management.

The factory in South Korea will continue to dominate income for the first half of 2018. Following the full implementation of the projected new assembly line in 2018, the sales volume is set to increase and provide stable cash flow to iQ Power Licensing.

The newly created business division for consulting services for consulting and implementation of new battery factories and production facilities will contribute to income in the second half of 2018. Negotiations for a first customer from the Middle East have been recently concluded, as announced separately, and the customer is now waiting for final approval of the expected financing of the new plant by the central authorities, which is assured but takes time in such countries.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

 

Shareholders approve major steps in proposed company merger with Engenavis

 

  • Resolution for capital increase with 72% majority approved at the Extraordinary Shareholders’ Meeting
  • Share exchange agreements for over 170 million shares signed
  • Engenavis will have slightly over 67% of iQ Power Licensing after capital increase and execution of share exchange agreements
  • Due Diligence and receipt of funds still required to fulfill the conditions of merger

 

Zug, Switzerland, 27 April 2018 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the approval of the capital increase of 260 million shares at EUR 0,07 per IQPL share which is a key step for the merger with the green technology company in USA, Engenavis Inc., headed by star investor, George Weiss.

Approximately 170 million votes or 72% of the attendees were cast for the resolution at the Extraordinary Shareholders’ Meeting on April 27th in Zug.

In addition, Share Exchange Agreements have been signed to exchange over 170 million shares of iQPL shares for Engenavis shares. Combined with the share purchase of 200 million shares by Engenavis in the upcoming capital increase, Engenavis Inc. will possess slightly over 67% of current outstanding shares in the iQ Power Licensing AG.

All other major requirements on the side of iQ Power Licensing have been achieved, however further steps are necessary to achieve the merger. They include a successful conclusion to the on-going Due Diligence process by the end of May, 2018 and the conclusion the capital increase, anticipated for June this year. Following the conclusion of the capital increase, Engenavis will immediately apply for a new listing in Germany. Within approximately three months, trading of the new company will start and, following a six month notification period, the current shares of iQPL will be de-listed.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

 

Merger of iQ Power Licensing AG into green technology company in USA

 

  • Board of Directors approve offer for merger with green technology company Engenavis in USA
  • Investment of minimum USD 17 million into iQ Power Licensing for new business initatives at EUR 0,07 / share
  • USA company, Engenavis Inc., headed by Wall Street star investor George Weiss
  • Merged new company will be named iQ POWER Inc.
  • Listing on Frankfurt General Standard and NASDQ planned
  • Complete merger into USA company planned at EUR 0,108 / share equivalent
  • Deal contingent on voluntary share exchange, shareholder approval and due diligence

 

Zug, Switzerland, 04 April 2018 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces the Board of Directors approve offer for merger with a green technology company in USA.

The merger partner is Engenavis Inc., Delaware, USA. Engenavis (ENG) is headed by star investor, George Weiss. The company features several start-up business units centering around environmentally-friendly technologies, including anti-idling fuel savings technology or mobile solar energy units. The technology section for no emission waste and used tyre recycling Toterra will be a subsidiary and a legally separate business unit.

The company has committed investment from a Wall Street institutional investor for USD 35 million or more, of which USD 17 million or more will be directly invested into iQ Power Licensing AG (IQP) for business expansion. The expansion plans shall be detailed in a separate report. The investment from the Wall Street institutional investor was based on a post-investment and post-merger valuation for Engenavis  of an estimated USD 120 million. iQ Power Licensing will be merged at a value of 38% of the new company, which will equal EUR 0,108 per share post-dilution.

Shareholders of IQP stock will be requested to sign share exchange agreements in advance of the upcoming extraordinary Shareholders’ Meeting (ESM) in late April. The exchange agreements will only go into effect at completion of the entire transaction. A 2/3 majority of ESM attendees and proxies will be required to approve creation of up to 260 million shares of share capital at EUR 0,07/share for the transaction. The transaction will take place as a private placement, limited to 10 subscribers including Engenavis, whereas Engenavis will take at least 200 million shares.

Following the transaction, the new company iQ POWER Inc. will apply to be listed as soon as possible in 2018 on the OTC in the USA and/or an OTC in Germany.  The listing on the Frankfurt General Standard and also on the NASDAQ exchange in the USA is planned for 2019. A possible listing in Singapore is being considered.

The shares of iQP will be de-listed around the same time as the new listing for iQ POWER Inc. comes into force. Shares not exchanged will continue to be valid, but cannot be traded on a public stock exchange thereafter. Following exchange of 90% of the old iQP shares into iQ POWER Inc., a 100% merger will be enacted.

In the next 60 days both companies will engage in a detailed examination, known as Due Diligence, of the other company. Following satisfactory conclusion of the Due Diligence and share exchange and shareholder approval, the agreement will be binding on all parties. In order to understrike the sincerity of the agreement, a USD 300.000 break-up fee for both parties has been agreed.

Bob Sullivan, CEO of iQ Power Licensing, states, “this is a once-in-a-lifetime opportunity for iQP and its shareholders. The bundling of new business opportunities and the enabling of new business drivers by a large investment will create a company that is an attractive investment vehicle for large international institutional investors. Having a broad and experienced management team and a well-known executive with a sterling track record for creating shareholder value will ensure the success of the merged company.”
 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

New Battery Factory and iQ Power technology licensee in the Middle East

 

  • Agreement reached for an iQ Power technology license and the consultancy and project management for new leading edge automotive battery factory
  • Integrated battery production and recycling plant with industrial company in the Middle East

Zug, Switzerland, 23 January 2018 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces an important development of interest to investors.

An agreement was reached with an experienced, privately-owned industrial company in the Middle East for an iQ Power technology license and consultancy for a new leading edge automotive battery factory. The agreement was reached already in late Dezember but announcement was held back due to uncertainty with local authorites. This uncertainty has been resolved today.

Construction of the new plant is already underway at the future factory location with building completion scheduled for the 2nd half 2018 and start of production in 2019.

The agreement, which is valid now, but can be rescinded if conditions dictated in the contract are not fulfilled, including the final approval of the iQ Power Licensing AG Board of Directors. Fulfillment of all conditions should be completed in March or April 2018, at which time, more details regarding the project will be released.

The agreement encompasses consulting and project management for the equipment and operation of an integrated leading edge lead-acid battery production including a recycling factory for used lead-acid batteries. After completion in 2019, the factory will be the most modern and most environmentally-friendly factory of its kind in the world. Several new technologies will be introduced for the first time, as well as many enhancements to state-of-the-art manufacturing methods.

Cornerstone of the battery factory will be the award-winning revolutionary iQ Power passive 360° electrolyte mixing technology, which has been proven to double the cycle life of flooded lead-acid starter batteries. The factory will provide advanced lead acid batteries for both passenger car and commercial vehicles. The factory is scheduled to produce 2 million batteries per year with expansion at a later date.

Environmental and economical savings will be achieved through the close integration of the lead-acid battery production under the same roof as the used lead acid battery recycling. The lead acid recycling factory will have a capacity for 30’000 metric tons of high quality lead per year. 

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

New CEO of South Korean Licensee and Change of Company Name

 

  • New CEO of South Korean Licensee is CEO of Canadian Company Discover Energy
  • South Korean Licensee iQ Power Asia Inc. to be changed into Discover Mixtech Manufacturing Corp.

 

Zug, Switzerland, 27 October 2017 – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces an important development of interest to investors.

As stated earlier, Bob Sullivan, the current interim CEO of iQ Power Asia Inc., who is also the CEO of iQ Power Licensing AG, will be followed officially at the iQ Power Asia shareholders’ meeting, which took place today on October 27th by Steve Nam as the new CEO of iQ Power Asia Inc.. Steve Nam is also the CEO of the company Discover Energy Inc., Richmond/Canada, who owns the majority of the South Korean company iQ Power Asia.

Steve Nam, who is a Canadian citizen and native South Korean and was formerly President of Hankook Tire North America, is uniquely qualified to lead the South Korean company and licensee of iQ Power Licensing AG to great success. Steve Nam has been in charge of the South Korean factory de facto for over one year and was instrumental in leading the company through the successful transition from financial restructuring.

At the same shareholders’ meeting today on October 27th, the shareholders decided to have the name of the factory iQ Power Asia Inc. in South Korea changed into Discover Mixtech Manufacturing Corp.. The new company name will have incorporated the product brand name `Mixtech´ of Discover’s new mixing technology automotive batteries.

“Re-naming the South Korean manufacturing company after their own product brand indicates a strong commitment and support of Discover Energy in the future of the built-in mixing technology of iQ Power Licensing”, stated Bob Sullivan.

Increased marketing activities of Discover is supporting the current production capacity increase of the South Korean factory, where a new production line is underway.   

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

Korean Licensee iQ Power Asia Inc. now under own control again

  • The South Korean Licensee iQ Power Asia Inc. officially emerges from Re-Structuring and can now operate fully under own control again  

Zug, Switzerland, 31 July 2017 – 12:10 p.m.  – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces an important development of interest to investors.

The licensee factory of iQ Power Asia Inc. in South Korea has officially and successfully emerged from Financial Re-structuring. Today the Court of Gwangju has given the approval to the petition to graduate from Rehabilitation in writing to iQ Power Asia. The decision paves the way for full control of the company by Discover Energy Group.

With full control, the new owners will now be able to more quickly expand and upgrade operations and capacity at the factory. As noted previously, several new battery sizes are in planning and deliveries to new markets will occur throughout 2017 and 2018.

It is anticipated that the current interim CEO of iQ Power Asia, who is also the CEO of IQ Power Licensing AG, will formally be replaced and followed by an executive from Discover Energy Group at the next iQ Power Asia shareholders’ meeting.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

iQ Power Licensing announces new business area of consulting services

  • iQ Power Licensing offers to organize and manage the building of environmentally-friendly battery factories with leading edge technologies
  • Focus on consulting, sourcing and project coordination of most competitive production methods and equipment
  • Marketing of iQ Power`s innovative mixing technology is part of the extended portfolio

Zug, Switzerland, 11 July 2017 - 11:20 a.m.  – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies and winner of the GreenTec Awards 2017 announces a new business area.

Using the experience of staff and cooperating battery and facility experts and the knowledge in environmentally-friendly technologies, iQ Power Licensing AG will be offering to consult the start-up and modernization of battery factories in developing countries by offering consulting, sourcing and project coordination. The factories will have the innovative iQ Power technology integrated from the beginning of operations, which will provide better efficiency in the production.

iQ Power Licensing AG will not only offer consultation for complete turn-key factories, but will also consult on individual processes and new methods in lead battery recycling, if necessary. iQ Power Licensing AG will not involve itself in the building or manufacture of equipment, but rather sees itself as an integrator of latest technologies for innovative equipment and of latest and innovative technology companies.

“The factory and production equipment that we source from our carefully selected suppliers is the most competitive and advanced production equipment of its kind in the world for the manufacture of next generation automotive batteries”, says Bob Sullivan, CEO of iQ Power Licensing.

For example, by using new innovations, the new battery factories can reduce the time of production by half or save substantially on energy, thereby reducing working capital needs. Using iQ Power’s innovative electrolyte mixing technology of simple plastic passive mixing elements, the cycle stability and life-time of flooded vehicle batteries can easily be doubled, thereby reducing not only cost of ownership but also saving resources.

The factory and production equipment will be independently selected from suppliers to assure the most competitive production equipment of its kind for the manufacture of next generation automotive starter batteries for vehicles.

Bob Sullivan, CEO of the company, stated: “Our main effort will remain concentrated on the iQ Power mixing technology and other innovative technologies. However, this long-term new initiative can, over time, add not only to the bottom line of the company, but also to the recognition of iQ Power Licensing in the battery industry.”

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

iQ Power Licensing AG publishes Annual Results 2016

  • Korean licensing partner is back to normal production operation, further expansion of production capacity
  • Revenue from license business more than doubled
  • First deliveries to automotive manufacturers (OEM) in Brazil
  • Earnings position from operating business improved by CHF 0.5 million
  • One-time accountable impairment loss in the rehabilitation phase of the Korean licensing partner

 

Zug, Switzerland, May 20, 2017 - 00:41 a.m. - iQ Power Licensing AG (ISIN: CH028536338, WKN: A14M1C, Symbol: iQL), the developer and marketer of technologies and their licenses for environmentally friendly and technologically leading starter batteries for motor vehicles, publishes the figures for the fiscal year 2016 and gives an overview of the current business situation.
 

Business Operations
In the year 2016, iQ Power Licensing AG continued its intensive collaboration with the new strategic partner Discover Energy Corporation (DEC) from Vancouver / Canada.

The strategic partner DEC intensified its commitment to the Korean licensing and production partner iQ Power Asia Inc. as well as to iQ Power Licensing AG through extensive financial investments in order to combine the iQ Power technology with the new DEC owned brand “Mixtech” for all major markets. In addition, Discover Energy Corporation made major investments in the expansion of the Korean plant and invested millions of dollars to stabilize and expand the production of the Korean factory. Discover Energy's commitment underscores the confidence of DEC in the future of iQ Power Licensing AG, its technology and the Korean factory, DEC is now the dominant shareholder in Korea and the largest single shareholder (18%) in iQ Power Licensing AG.

Great efforts and investments were made in 2016 to expand the product portfolio from nine battery models to 25 models. In addition to the new types of starter batteries, the Korean factory in 2016 focused on the introduction of a complete product line of commercial vehicle batteries for the North American market which will be launched in 2017. At present, the vast majority of batteries from the Korean license partner's production are sold in North America.

The year 2016 also marked the beginning of the production of the first batteries with iQ-Power technology for use by a major automobile manufacturer (OEM). Moura Baterias S.A. as the largest battery manufacturer on the South American continent, delivered the first batteries for OEM use. This was preceded by very long investment delays by automobile manufacturers in South America, caused by the economic and political crisis in Brazil.
 

Financial Results
Revenues from the operating business of iQ Power Licensing AG doubled in 2016 to CHF 0.63 million (2015: CHF 0.27 million). However, due to unforeseen production bottlenecks in the second half of 2016, IQPA was not able to keep pace with the rapidly growing orders. The increase in sales was therefore lower than originally expected. These bottlenecks were eliminated at the end of the second half of 2016 by corresponding investments in machinery and equipment.

The results from operations in 2016 showed an improvement of CHF 0.5 million compared to the previous year (2016: minus CHF 1.7 million versus 2015: minus CHF 2.2 million). The improvement is the result of higher revenues as well as lower costs for patents.

As already reported at the beginning of this year, the restructuring phase of the Korean licensing partner resulted in an dilution-related non-cash write-down of CHF 2.3 million (impairment loss) of the valuation of assets of the iQ Power Licensing AG in iQ Power Asia for the year 2016, which was necessary as part of the restructuring program. Details on this are explained in the company's annual report 2016. As a result, the total loss of the company for the year 2016 amounts to minus CHF 4.3 million (2015: minus CHF 2.5 million).

The equity of the company decreased from CHF 1.9 million to CHF 1.5 million at the end of the financial year. The decrease is primarily due to the accounting loss resulting from amortization of the asset values in iQ Power Asia Inc. as well as a lower than expected results from license revenues. The equity ratio remains satisfactory at 29% (2015: 38%). The liquidity of the company also remains satisfactory with a cash balance of CHF 0.9 million at the end of 2016.

The North American licensee began with a limited sales of batteries with iQ Power technology. However, the batteries were acquired by customers of Discover Energy in North America, which is why there is no additional license revenue from this limited business, since the revenues are included in the license payments from the Korean partner.
 

Outlook for 2017
Through intensive cooperation with the strategic partner Discover Energy and the establishment of a stable and efficient production as well as a growing sales of the Korean factory iQ Power Licensing AG has created a sustainable and rising sales base. The main focus of the activities in the first half of the year 2017 has been on the growth and stability of the licensee in Korea, as this is the fastest way to achieve rapid revenue growth. In addition to this, further activities are now being intensified during 2017 in order to tap additional new sources of income.

In January 2017, the first license fees were received from the Brazilian licensee. A moderate growth in these revenues is expected during the year. No significant revenue is expected by the licensee in North America for 2017.

Revenue from license revenues from the Korean licensing partner for 2017 will be significantly higher than in 2016, as the capacity of the plant continues to grow and expand. Management expects a positive operating cash flow in 2017. Overall, the management of iQ Power Licensing AG sees the developments in 2017 very positively.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010 and und became a first prize winner of the GreenTec Awards in 2017. – More under: www.iqpower.com/en

 

Download Summary Consolidated Financial Statements 2016

Discover Energy Group increases share in iQ Power Licensing AG

  • The Discover Energy Group executes mandatory convertible bond of EUR 2.56 million in iQ Power Licensing AG
  • Discover Energy Group (DEG) converts the approved and reported mandatory convertible bond in the amount of EUR 2.56 million including interest on April 30, 2017.
  • Growing commitment of the Discover Energy Group increases their stake in iQ Power Licensing AG (IQPLAG) from around 7 percent to 18.5 percent
  • The increased shares owned by DEG also strengthens the equity base of IQPLAG

 

Zug, Switzerland, 07 April 2017 – 10:15 a.m. – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces a substantial strong commitment from its strategic partner Discover Energy towards iQ Power Licensing AG.

The Discover Energy Group (DEG), as a strategic partner and investor in iQ Power Licensing AG, has subscribed a mandatory convertible bond in the amount of EUR 2,552,500 approved and reported by the Board of Directors of iQ Power Licensing AG (IQPLAG) in mid-January this year. The subscription reiterates the strong commitment of the Discover Energy Group to iQ Power Licensing AG. As agreed, DEC will convert the subscribed bond on 30 April 2017. At the same time, the share of DEG in iQ Power Licensing AG increases from just under 7 percent to 18.5 percent.

In mid-January this year iQ Power Licensing AG reported on the application of the Discover Energy Group to the convertible bond as well as its approval by the Board of Directors. The terms are identical to those of the existing convertible bond with a conversion price of EUR 0.06 per share.

By subscribing the bond and its subsequent conversion, the Discover Energy Group not only significantly strengthens its commitment in iQ Power Licensing AG but at the same time enforces the equity base of the Swiss company.

Bob Sullivan, CEO of iQ Power Licensing AG, welcomes the increased commitment of the Discover Energy Group as a strategic partner. At the same time, Sullivan stressed that any other capital increase in 2017 is not planned.

 

About the iQ Power Technology

Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today. It is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery by passive mixing elements ensures uniform acid density for higher sustained performance throughout the entire life of the battery, thus avoiding early loss of capacity (Ah) as usual with ordinary batteries. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010. – More under: www.iqpower.com/en

iQ Power Licensing Status Report with New Events

  • First OEM vehicles equipped with battery technology of iQ Power Licensing
  • Significant step towards iQ Power Asia exiting Financial Restructuring ahead-of-schedule
  • Discover Energy Group subscribes to bond as prelude to share swap between IQPLAG and IQPA
  • First half results in line with expectations

Zug, Switzerland, 12 January 2017 – 04:40 p.m. – iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, announces several important events of interest to investors.

 

Summary:
The first vehicles by an automotive manufacturer using a battery containing iQ Power technology, a premium class SUV and a pick-up truck, are now being produced in series in Brazil. The battery is an EFB type battery for extra-long cycle life, because the vehicle uses an engine with start-stop technology. Use of the iQ Power Technology more than doubles the cycle life as per test results at Licensee, Moura Baterias. Contractual obligations do not allow details such as manufacturer and model name to be publicized.

In South Korea, the Court has approved the application by Discover Energy Group (DEG), Canada, which will lead to DEG obtaining majority control of iQ Power Asia Inc. (IQPA), Gwangju, Rep. of Korea. It is anticipated that, following fulfillment of all requirements, the court will exit as administrator after only one year rather than the seven years earlier than planned.

The Board of Directors of iQ Power Licensing AG (IQPLAG) has approved a subscription by Discover Energy Group, Canada (DEG), to a mandatory convertible loan of iQPLAG equaling EUR 2,5 million. The terms of the bond are similar to the existing convertible bond, ISIN: DE000A1GXE20, with the exception that DEG is obligated to convert into shares of IQPLAG at a future time. Further, the Board of Directors of iQ Power Licensing AG (IQPLAG) has approved a subscription to a non-mandatory convertible loan to DEG equaling EUR 2,5 million. Following final negotiations regarding valuation, the loan may be converted into additional shares in IQPA or IQPA’s DEG controlled holding company. Due to the financial restructuring, the current shareholding of iQ Power Licensing AG (IQPLAG) has been greatly reduced through court mandated capital reductions for all shareholders.

The half-year results were in line with expectations but were negatively affected by some extraordinary expenses. The net revenue for the period was more than double the previous period, CHF 344k (vs. 1st 6 months of 2015: CHF 115k). The loss from on-going operations was around CHF 550k, which given the sales revenue and normal fixed costs, are as expected. The results for income after tax improved, with a loss of CHF 1.047k versus a loss after tax was CHF 1.377k in the 1st 6 months of 2015.

 

OEM Battery debut - Status
In Brazil the first vehicles are produced in series by an OEM using batteries with technology of iQ Power Licensing being incorporated. The products manufactured by Moura are EFB batteries (Enhanced Flooded Batteries) with integrated 360-degree electrolyte circulation, a patented technology of iQ Power Licensing AG. The new products are bound for automotive manufacturers (OEM) on the Brazilian market for the use of start-stop engines. The batteries` main characteristics is a high cycle stability.

Moura´s new start-stop EFB batteries with electrolyte mixing go into the top range of two new automobile models which have fuel saving start-stop function.

Moura´s start-stop batteries with mixing technology are targeted on the OEM market.

The goal of Moura is to offer automotive manufacturers (OEMs) on the South American continent robust flooded lead/acid batteries with high cycle performance as starter batteries for fuel-saving start-stop applications. Flooded batteries are regarded as particularly robust products. Combined with an integrated electrolyte circulation, flooded batteries are durable even at high ambient temperatures since the mixing technology of iQ Power Licensing avoids the typical acid stratification which occurs in conventional flooded batteries. Acid stratification causes not only lack in capacity (Ah) performance but also sulfation and premature internal corrosion influenced also by high ambient temperature. The advantage of the acid mixing device is a high cycle stability of the lead/acid battery.

Moura`s newly developed start-stop battery products combine the advantages of two technologies: the special EFB (Enhanced Flooded Battery) technology of Moura plus the electrolyte mixing of iQ Power Licensing using passive mixing elements inside the product. New regulatory requirements in Brazil with regards to lower CO2 emissions of new vehicles require fuel-saving measures such as start-stop engines by the automotive manufacturers also in Brazil. Here, EFB batteries with electrolyte mixing offer the OEM a cost-effective alternative to the more expensive, complex and temperature sensitive AGM batteries (Absorbent Glass Mat), especially for the Brazilian market of compact class vehicles and in the South Americas.

The privately held company Acumuladores Moura S.A. is the largest battery manufacturer in South America, with six large battery factories in Brazil and Argentina and producing over 7,5 million batteries per year. Moura has more than 70 commercial distribution centers and is the largest supplier to OEMs in South America, with a market share of more than 50% of the OEM market in South America. Customers of Moura include the world’s biggest auto manufacturers such as General Motors, Volkswagen, Ford, Iveco, and Fiat-Chrysler among others. Moura also produces batteries for mobile applications (traction), for marine purposes as well as for telecommunications and solar. The company has won many excellence awards.

 

IQ Power Asia Inc. – Status
In 2016, DEG funded many improvements at the factory, including additional equipment for the current production. The demand from North America has been very good and has required a more limited expansion in other markets, such as Europe and Asia. Limited amounts of batteries have been sourced from the Bangladesh factory for certain Asian customers. Further increases to production capacity of iQ Power Asia through a 2nd assembly line are now being intensively discussed.

Several new products are now being developed for release in Q2, 2017. These include high cycle batteries for the recreational vehicle market, new battery sizes for special markets such as Australia and later in 2017, a new line of super heavy duty, vibration resistant batteries for the construction industry and off-road heavy vehicles.

 

Exchange of Convertible Loans – Status
The exchange of loans between DEG and IQPLAG underscores DEG’s confidence in the technology of IQPLAG. At the same time, the exchange also shows the commitment of IQPLAG to support the key Licensee, DEG, and the newest member of the DEG Group, IQPA.

The conversion of the DEG loan into IQPLAG shares is anticipated for the first of half of 2017. The implicit share increase also was key to securing a solid balance sheet for IQPLAG for year-end 2016 following the reduction of the shareholding of IQPLAG in IQPA.

 

• Financial Results
The half-year results were in line with expectations but were negatively affected by some extraordinary expenses. The net revenue for the period was CHF 344k (vs. 1st 6 months of 2015: CHF 115k). The increase was due to the increased sales of the strategic licensee, DEG. The sales increased month-to-month during the first 6 months as customers were able to end previous purchase commitments in order to purchase from iQ Power Asia.

The net revenues are a combination of sales margin from the plastic mixing parts and license income. Since the cost of plastic material was deducted from the net revenue figure, the gross sales were higher. Due to contractual confidentiality commitments, the revenue per licensee may not be disclosed.

The loss after tax was reduced to CHF 1.047k versus a loss after tax was CHF 1.377k in the 1st 6 months of 2015. The loss from on-going operations was around CHF 550k, which given the sales revenue and normal fixed costs, are as expected. Due to several non-operational effects this loss was higher than would normally be anticipated. These negative profit events included a not anticipated expense of CHF 180k from a prior period due to currency loss. In addition, higher than anticipated patent costs, which can not be capitalized, caused a further one-time expense of over CHF 100k. Finally financial expenses net, mainly interest on the convertible bond, added CHF 122k to the losses.

The total assets of the company were largely unchanged at CHF 5,06 million. The equity as a percent of total assets remained largely unchanged at 35% (versus 30.Dec.2015: 38%). The cash balance of the company was adequate at CHF 358k.

 

About the iQ Power Technology
Batteries with iQ Power technology are designed to generate better performance in Start-Stop applications and to meet the growing demands of electronic usage in vehicles today, is the first significant innovation to the flooded starter battery in decades. Automatic mixing of electrolyte inside the battery ensures uniform acid density for higher sustained performance throughout the entire life of the battery. This prolongs plate life by eliminating acid stratification and thermal gradients, delivering greater material utilization for a lower cost per cycle over conventional batteries. The patented technology was awarded the coveted Automechanika innovation award 1st prize in 2010.