PyroGenesis Announces Q1 2022 Results: Revenues $4.2MM; Gross Margin 25%; Current Backlog of Signed and/or Awarded Contracts $41.2MM

Research and Development (“R&D”) Costs

The Company incurred $482,432 of R&D costs, net of government grants, on internal projects in Q1 2022, an increase of 69% as compared with $286,307 in Q1 2021. The increase in Q1 2022 is primarily related to an increase in employee compensation, materials and equipment and other expenses and a decrease in investment tax credits and government grants recognized.

In addition to internally funded R&D projects, the Company also incurred R&D expenditures during the execution of client funded projects. These expenses are eligible for Scientific Research and experimental Development (“SR&ED”) tax credits. SR&ED tax credits on client funded projects are applied against cost of sales and services (see “Cost of Sales” above).

Financial Expenses

Finance expenses for Q1 2022 totaled $183,900 as compared with $53,087 for Q1 2021, representing an increase of 246% year-over-year. The increase in finance expenses in Q1 2022, is primarily attributable to higher interest and accretion due on the business combination.

Strategic Investments

The adjustment to fair market value of strategic investments for Q1 2022 resulted in a gain of $1,176,755 compared to a gain in the amount of $5,634,722 in Q1 2021. The decrease is primarily attributable to the decreased market share value of common shares and warrants owned by the Company of HPQ Silicon Resources Inc.

Comprehensive (Loss) Income

The comprehensive loss for Q1 2022 of $4,069,119 compared to an income of $3,712,903, in Q1 2021, represents a decrease of 210% year-over-year. The decrease in income of $7,782,022 in the comprehensive loss in Q1 2022 is primarily attributable to the factors described above, which have been summarized as follows:

(i)a decrease in product and service-related revenue of $2,057,741 arising in Q1 2022,
(ii)a decrease in cost of sales and services of $966,454, primarily due to a decrease in direct materials and manufacturing overhead & other, and an increase in employee compensation, subcontracting, foreign exchange charge on materials, investment tax credits, and amortization of intangible assets,
(iii)an increase in SG&A expenses of $1,139,643 arising in Q1 2022 primarily due to an increase in employee compensation, professional fees, office and general, travel, depreciation in property and equipment, depreciation ROU assets, government grants, other expenses and share based expenses,
(iv)an increase in R&D expenses of $196,126 primarily due to an increase in subcontracting, material and equipment and other expenses,
(v)an increase in financial expenses of $130,813 in Q1 2022 primarily due to interest on lease liabilities, interest accretion on balance due on business combination and other interest expenses,
(vi)a decrease in fair value adjustment of strategic investments of $4,588,780 in Q1 2022.


The EBITDA in Q1 2022 was a $3,300,693 loss compared with an EBITDA gain of $3,950,881 for Q1 2021, representing a decrease of 184% year-over-year. The $7,251,574 decrease in the EBITDA loss in Q1 2022 compared with Q1 2021 is due to the decrease in comprehensive loss of $7,782,023, an increase in depreciation on property and equipment of $66,673, an increase in depreciation ROU assets of $64,430, an increase in amortization of intangible assets of $211,979, an increase in financial expenses of $130,812, and an increase in income taxes of $56,553.

Adjusted EBITDA loss in Q1 2022 was $1,631,063 compared with an Adjusted EBITDA gain of $4,873,221 for Q1 2021. The decrease of $6,504,284 in the Adjusted EBITDA loss in Q1 2022 is attributable to a decrease in EBITDA loss of $7,251,574, and by an increase of $747,289 in share-based payments.

The Modified EBITDA loss in Q1 2022 was $2,807,818 compared with a Modified EBITDA loss of $761,501 for Q1 2021, representing a decrease of 269%. The increase of $2,046,319 in the Modified EBITDA loss in Q1 2022 is attributable to the decrease as mentioned above in the Adjusted EBITDA of $6,504,284 and a decrease in the change of fair value of strategic investments of $4,457,967.


As at March 31,2022, the Company has cash and cash equivalents of $6,612,624. In addition, the accounts payable and accrued liabilities of $9,378,832 are payable within 12 months. The Company expects that its cash position will be able to finance its operations for the foreseeable future

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG), and are economically attractive alternatives to conventional “dirty” processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, and its 3,800 m2 and 2,940 m2 manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997. For more information, please visit:

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward- looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation's current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation's ongoing filings with the securities regulatory authorities, which filings can be found at, or at Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the Toronto Stock Exchange, its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) nor the NASDAQ Stock Market, LLC accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.

For further information please contact:
Rodayna Kafal, Vice President, IR/Comms. and Strategic BD
Phone: (514) 937-0002, E-mail:


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