NanoXplore Inc. — Interim / Quarterly Report 2021

May 26, 2021

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UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine-month periods ended March 31, 2021 and 2020

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Consolidated Statements of Financial Position

	As at March 31, 2021	As at June 30, 2020
(Unaudited - Expressed in Canadian dollars)	$	$
Assets
Current assets
Cash and cash equivalents	60,183,252	33,796,686
Accounts receivable and contract asset	11,791,072	11,202,100
Inventory	9,417,075	7,116,492
Prepaid expenses and other assets	993,445	557,265
	82,384,844	52,672,543
Non-current assets
Lease deposits	58,044	58,044
Equipment deposits	1,658,206	1,094,164
Right-of-use assets	5,141,010	5,878,706
Property, plant and equipment_[Note 4]_	53,877,959	49,680,575
Intangible assets	3,480,151	3,803,674
Goodwill	460,164	460,164
Total assets	147,060,378	113,647,870
Liabilities and Shareholders' Equity
Current liabilities
Operating loans_[Note 5]_	2,139,450	2,152,568
Accounts payable and accrued liabilities	12,497,416	11,092,750
Income taxes payable	—	339,744
Deferred grant	—	276,342
Contract liability	1,438,148	946,751
Lease liability due within one year_[Note 5]_	1,651,386	1,839,242
Long-term debt due within oneyear [Note 5]	3,802,655	2,713,735
	21,529,055	19,361,132
Non-current liabilities
Defined benefit liabilities	1,225,237	1,310,464
Lease liability_[Note 5]_	8,171,318	9,296,633
Long-term debt_[Note 5]_	9,286,516	12,831,087
Convertible debentures - Loan_[Note 5, 6]_	—	8,156,305
Deferred tax liabilities	1,353,612	1,724,987
Total liabilities	41,565,738	52,680,608
Shareholders’ equity
Share capital_[Note 6]_	139,933,621	84,837,145
Reserve	3,697,496	3,588,215
Convertible debentures - Options_[Note 6]_	—	2,240,000
Foreign currency translation reserve	67,707	58,505
Deficit	(38,204,184)	(29,756,603)
Total shareholders' equity	105,494,640	60,967,262
Total liabilities and shareholders' equity	147,060,378	113,647,870

See accompanying notes to unaudited condensed interim consolidated financial statements

Note 1 – Nature of operations and liquidity risk Note 10 – Subsequent event

Approved on behalf of the Board of Directors

Soroush Nazarpour

Soroush Nazarpour

Benoit Gascon

Benoit Gascon

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Consolidated Statements of Loss and Comprehensive loss

	Three-month	periods ended	Nine-month	periods ended
		March 31,		March 31,
	2021	2020	2021	2020
(Unaudited - Expressed in Canadian dollars)	$	$	$	$
Revenues
Revenues from customers	17,619,603	14,543,180	47,045,864	51,709,008
Other income	802,133	323,000	4,416,370	873,771
	18,421,736	14,866,180	51,462,234	52,582,779
Cost of Sales and Expenses
Cost of sales	16,193,459	11,981,803	41,465,413	44,089,794
Research and development expenses	969,435	810,177	2,586,803	2,346,288
Selling, general and administrative expenses	3,074,499	2,926,542	9,672,442	8,648,102
Share-based compensation expenses	187,270	128,634	449,351	549,825
Depreciation (production)	1,109,720	766,029	3,179,045	2,287,618
Depreciation (other)	344,277	222,810	1,097,805	643,594
Amortization	134,492	147,020	418,327	445,037
Foreign exchange	13,320	591,172	31,782	503,269
	22,026,472	17,574,187	58,900,968	59,513,527
Operating loss	(3,604,736)	(2,708,007)	(7,438,734)	(6,930,748)
Interest on operating loans, long-term debt and convertible debentures	(234,732)	(305,528)	(1,215,145)	(994,994)
Interest accretion on lease liability	(140,382)	(93,106)	(371,239)	(279,237)
Interest revenue	41,817	86,375	144,559	348,038
Loss before income taxes	(3,938,033)	(3,020,266)	(8,880,559)	(7,856,941)
Current income tax recovery (expense)	6,618	(22,044)	12,688	(79,238)
Deferred income tax recovery	57,634	48,931	371,801	346,212
	64,252	26,887	384,489	266,974
Loss for the period	(3,873,781)	(2,993,379)	(8,496,070)	(7,589,967)
Other comprehensive loss
Items that may be subsequently reclassified to profit and loss:
Exchange differences on translation of foreign
subsidiaries	36,373	40,767	9,202	72,796
Items that will not be reclassified to profit and loss:
Retirement benefits – Net actuarialgains	264,254	141,611	48,489	34,887
Total comprehensive loss	(3,573,154)	(2,811,001)	(8,438,379)	(7,482,284)
Loss per share
Basic and diluted	(0.03)	(0.02)	(0.06)	(0.06)
Weighted average number of common shares outstanding
(basic and diluted)	152,264,615	120,995,810	144,786,869	119,954,033

In light of the loss recognized for the periods, every outstanding conversion options and stock options were excluded from the calculation of diluted loss per share due to their anti-dilutive effect.

See accompanying notes to unaudited condensed interim consolidated financial statements

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Consolidated Statements of Changes in Shareholders’ Equity

				Convertible	Foreign currency
	Number of			debentures -	translation		Shareholders’
	common	Share capital	Reserve	Options	reserve	Deficit	equity
(Unaudited - Expressed in Canadian dollars)	shares	$	$	$	$	$	$
Balance as at June 30, 2019	111,630,159	53,445,389	3,604,511	2,240,000	12,927	(21,207,102)	38,095,725
Loss for the period	—	—	—	—	—	(7,589,967)	(7,589,967)
Othercomprehensiveloss	—	—	—	—	72,796	34,887	107,683
Comprehensive loss for the period	—	—	—	—	72,796	(7,555,080)	(7,482,284)
Exercise of warrants and Broker Warrants	9,365,651	7,091,727	(649,686)	—	—	—	6,442,041
Share-based compensation	—	—	549,825	—	—	—	549,825
Balance as at March 31, 2020	120,995,810	60,537,116	3,504,650	2,240,000	85,723	(28,762,182)	37,605,307
Loss for the period	—	—	—	—	—	(682,833)	(682,833)
Othercomprehensiveloss	—	—	—	—	(27,218)	(311,588)	(338,806)
Comprehensive loss for the period	—	—	—	—	(27,218)	(994,421)	(1,021,639)
Private placement (net of issuing costs of $621,240)	19,230,800	24,300,029	—	—	—	—	24,300,029
Share-based compensation	—	—	83,565	—	—	—	83,565
Balance as at June 30, 2020	140,226,610	84,837,145	3,588,215	2,240,000	58,505	(29,756,603)	60,967,262
Loss for the period	—	—	—	—	—	(8,496,070)	(8,496,070)
Othercomprehensiveloss	—	—	—	—	9,202	48,489	57,691
Comprehensive loss for the period	—	—	—	—	9,202	(8,447,581)	(8,438,379)
Issuance of common shares (net of issuing costs of $2,617,433)[Note 6]	11,500,000	43,382,567	—	—	—	—	43,382,567
Exercise of stock options	653,667	1,112,221	(340,070)	—	—	—	772,151
Conversion of the convertible debentures_[Note 6]_	5,434,782	10,601,688	—	(2,240,000)	—	—	8,361,688
Share-based compensation	—	—	449,351	—	—	—	449,351
Balance as at March 31, 2021	157,815,059	139,933,621	3,697,496	—	67,707	(38,204,184)	105,494,640

See accompanying notes to unaudited condensed interim consolidated financial statements

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Consolidated Statements of Cash Flows

Nine-month periods ended March 31,	Nine-month periods ended March 31,	Nine-month periods ended March 31,
	2021	2020
(Unaudited - Expressed in Canadian dollars)	$	$
Cash flows from operating activities
Loss for the period	(8,496,070)	(7,589,967)
Items not affecting cash:
Depreciation and amortization	4,695,177	3,376,249
Share-based compensation expenses	449,351	549,825
Interest accretion on lease liability	371,239	279,237
Interest accretion on long-term debt and convertible debentures	234,106	288,027
Other financial expenses	200,927	118,201
Deferred income tax recovery	(371,801)	(346,212)
Difference between amounts paid for employee benefits and current period expenses	76,207	43,794
Net change in fair value of foreign exchange derivatives	(675,182)	707,555
Unrealized foreign exchange	169,524	(93,154)
Changes in non-cash operating working capital items:
Accounts receivable and contract asset	791,335	3,551,940
Inventory	(1,349,281)	550,453
Prepaid expenses and other assets	(444,947)	39,862
Accounts payable and accrued liabilities	(364,052)	(4,507,414)
Income taxes payable	(326,374)	(10,891)
Deferred grant	(276,342)	(231,745)
Contract liability	496,289	(2,010,907)
	(4,819,894)	(5,285,147)
Cash flows from financing activities
Issuance of common shares	46,000,000	—
Issuing costs	(2,617,433)	—
Exercise of stock options, warrants and broker warrants	772,151	6,442,041
Variation of operating loans	67,890	100,000
Repayment of lease liability	(1,815,743)	(1,553,861)
Repayment of long-term debt	(2,446,298)	(1,486,878)
	39,960,567	3,501,302
Cash flows from investing activities
Variation of lease deposits	—	7,450
Variation of equipment deposits	(564,042)	(379,645)
Business acquisition_[Note 3]_	(2,303,450)	—
Balance of purchase price of business acquisition	—	(538,188)
Additions to intangible assets	(98,712)	—
Additions toproperty,plant and equipment	(5,705,428)	(14,605,541)
	(8,671,632)	(15,515,924)
Change in cash and cash equivalents	26,469,041	(17,299,769)
Net effect of currency exchange rate on cash	(82,475)	34,528
Cash and cash equivalents, beginning ofperiod	33,796,686	27,819,140
Cash and cash equivalents, end ofperiod	60,183,252	10,553,899
Interest paid	1,375,875	1,721,451
Additions to property, plant and equipment included in accounts payable and accrued liabilities	581,908	2,727,320
Additions of investment tax credit against the property, plant and equipment included in accounts
receivable and contract asset	1,000,000	—

See accompanying notes to unaudited condensed interim consolidated financial statements

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NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

[EXPRESSED IN CANADIAN DOLLARS]

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[Unaudited and not reviewed – Unless specified otherwise, amounts are expressed in Canadian dollars]

1. NATURE OF OPERATIONS AND LIQUIDITY RISK

NanoXplore Inc., and its subsidiaries (together “NanoXplore” or the “Company”), is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in industrial markets. Also, the Company provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Company was formed by amalgamation under the Canada Business Corporations Act by certificate of amalgamation dated September 21, 2017 and is headquartered at 4500 Thimens Blvd, Montreal, QC, Canada.

NanoXplore Inc. is listed on the TSX Venture Exchange and has traded under “GRA” and is also listed on the OTCQX and has traded under “NNXPF”.

On September 11, 2020, through its wholly-owned indirect subsidiary RMC Advanced Technologies Inc., the Company acquired substantially all of the assets of CSP Composites, LLC, Continental Structural Plastics, Inc. and Continental Structural Plastics of North Carolina, Inc. (collectively, “CSP”) used in connection with its lightweight composite solutions and material business as conducted at 1400 Burris Road, Newton, North Carolina (Note 3) .

Subsequently to the period, on April 15, 2021, NanoXplore and Martinrea International Inc. (“Martinrea”) formed a joint venture named VoltaXplore Inc (“VoltaXplore”), a battery-based initiative to service the electric transportation and grid storage market (Note 10) .

COVID-19 Pandemic

On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic and recommended various containment and mitigation measures. Since then, extraordinary actions have been taken by public health and governmental authorities across the globe to contain the spread of COVID-19, including travel bans, social distancing, quarantines, stay-at-home orders and similar mandates for many businesses to reduce or cease normal operations.

Even though our manufacturing operation resumed during the month of May 2020, the COVID-19 global pandemic had and continues to have a significant negative impact on our customers’ business activities. This slowdown of manufacturing operations and dissipation of customer demand had a negative impact on the Company’s financial results since the second half of March 2020.

The COVID-19 pandemic had an adverse effect on our business, results of operations, cash flows and financial position. However, the full impact cannot be determined at this time. The extent of the impact will depend on various factors, including the possibility of future shutdowns, impact on customers and suppliers, the rate at which economic conditions, and operations return to pre-COVID levels, any continued or future governmental orders or lock-downs due to this wave of COVID-19, or any future wave, and the potential for a recession in key markets due to the effect of the pandemic.

The discovery of several effective vaccines and their deployment allows us to hope for an end to the crisis. Until the situation is stable, the Company will continue to respond in a measured, prudent and decisive manner with continued emphasis on health and safety, cash conservation and the maintenance of its liquidity position.

Liquidity risk

Management believes that the Company has sufficient funds to meet its obligations, operating expenses and some development expenditures for the ensuing 12 months as they fall due. The Company’s ability to continue its development activities is dependent on the impact of Covid-19 and the speed of introduction of graphene products into different industries. The graphene commercial activity is in the commercial introduction stage and, as a result, the Company has minimal sources of operating revenue from those operations and could be dependent on external financing to fund its continued development program, if the beginning of the commercial operation of the graphene activity is delayed. The Company’s main sources of funding have been the issuance of equity securities for cash (note 6) , debt, and funds from the government of Quebec with respect to R&D tax credits, from Sustainable Development Technology Canada (“SDTC”) and from the Canada emergency wage subsidies program.

The unaudited condensed interim consolidated financial statements of NanoXplore for the three and nine-month periods ended March 31, 2021 and 2020 were reviewed, approved, and authorized for issue by the Company’s Board of Directors on May 26, 2021.

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NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

[EXPRESSED IN CANADIAN DOLLARS]

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The unaudited condensed interim consolidated financial statements of the Company and its subsidiaries for the three and ninemonth periods ended March 31, 2021 and 2020 have been prepared in accordance with International Financial Reporting Standards [“IFRS”], as issued by the International Accounting Standards Board [“IASB”]. These unaudited condensed interim consolidated financial statements were prepared in accordance with IAS 34, Interim Financial Reporting.

These unaudited condensed interim consolidated financial statements are presented in Canadian dollars, the Company’s functional currency, except where otherwise indicated. Each entity of the Company determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

The significant accounting judgments, estimates and assumptions used in these unaudited condensed interim consolidated financial statements are consistent with those disclosed in the most recent audited annual consolidated financial statements for the year ended June 30, 2020.

These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis, at historical cost, except for financial assets and liabilities classified as financial assets/liabilities at fair value through profit or loss and measured at fair value. Management considers that the fair value of financial assets and liabilities recorded in the financial statements approximates the carrying amount.

Basis of consolidation

The unaudited condensed interim consolidated financial statements include the accounts of the Company and its subsidiaries. The subsidiaries are using consistent accounting policies and the same reporting period as the parent company. All intercompany transactions, balances and unrealized gains or losses have been eliminated.

Standards, interpretations and amendments to published standards adopted with an effect on the unaudited condensed interim consolidated financial statements

The same accounting policies and methods of computation are followed in these unaudited condensed interim consolidated financial statements as compared with the most recent annual consolidated financial statements. The unaudited condensed interim consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes for the year ended June 30, 2020, except for the amendments to certain accounting standards which are relevant to the Company and were adopted by the Company as of July 1, 2020 as described below:

AMENDMENT TO IFRS16 – COVID-19 RELATED RENT CONCESSIONS

On May 28, 2020, the IASB issued COVID-19-Related Rent Concessions – Amendment to IFRS 16. Under certain conditions, this amendment allows a lessee to recognize any COVID-19 related rent concession in the same way it would account for the change under IFRS 16 if the change were not a lease modification. There has been no impact of the adoption of this amendment as at July 1, 2020.

AMENDMENTS TO IFRS 3 – BUSINESS COMBINATIONS

The amendments to IFRS 3 clarifies the definition of a business and includes an optional concentration test to determine whether an acquired set of activities and assets is a business. There has been no impact of the adoption of this amendment as at July 1, 2020.

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NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

[EXPRESSED IN CANADIAN DOLLARS]

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3. BUSINESS COMBINATIONS

On September 11, 2020, through its wholly-owned indirect subsidiary RMC Advanced Technologies Inc., the Company acquired substantially all of the assets of CSP used in connection with its lightweight composite solutions and material business as conducted at 1400 Burris Road, Newton, North Carolina, for an unadjusted purchase price of US$3,500,000. The purchase price was reduced by an inventory adjustment of US$128,929. This acquisition was concluded to expand the Company’s business in the United States.

CSP employs nearly thirty people and operates mainly in the markets of composite products for heavy trucks and machinery. It sells its products to original equipment manufacturers and distributors in the United States, Canada and South America.

This transaction was financed using the Company’s available cash. The adjusted purchase price of US$3,371,071 [$4,437,197] is payable in two installments:

• (i) US$1,750,000 at the closing date; and

• (ii) US$1,621,071 12 months after the closing date and is recorded under Accounts payable and accrued liabilities in the consolidated statements of financial position.

This transaction qualifies as a business combination and was accounted for using the acquisition method of accounting under IFRS 3, Business Combination. To account for the transaction, the Company has performed a preliminary business valuation of CSP at the date of acquisition and a preliminary purchase price allocation. At the time of issuance of these consolidated financial statements, certain aspects of the valuation and purchase price allocation are not finalized due to the unavailability of some information. The work will be completed within 12 months of the acquisition date.

Net identifiable assets acquired: Inventory Property, plant and equipment Total consideration: Consideration paid or to be paid in cash	$
	1,014,930 3,422,267
	4,437,197
	4,437,197
	4,437,197

Since September 11, 2020, the assets acquired are included in the consolidated statement of financial position and the operating results are reflected in the Company’s consolidated statement of loss.

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NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

[EXPRESSED IN CANADIAN DOLLARS]

4. PROPERTY, PLANT AND EQUIPMENT

Balance as at June 30, 2019 Additions Disposals Depreciation Effect of foreign exchange differences Balance as at June 30, 2020 Additions Acquired in a business combination Disposals Depreciation Effect of foreign exchange differences Balance as at March 31, 2021 As at June 30, 2020 Cost Accumulated depreciation Net book value As at March 31, 2021 Cost Accumulated depreciation Net book value	Land & Building Production equipment Leasehold improvements Laboratory, computer, office equipment and rolling stock Total $ $ $ $ $
	13,051,792 16,891,365 24,153 608,022 30,575,332 490,340 18,521,113 2,004,565 914,003 21,930,021 – (12,377) – – (12,377) (546,577) (2,178,927) (79,334) (252,682) (3,057,520) 110,627 126,025 – 8,467 245,119
	13,106,182 33,347,199 1,949,384 1,277,810 49,680,575 381,265 4,107,742 50,625 288,051 4,827,683 1,351,375 2,053,805 – 17,087 3,422,267 – (21,374) – (53,154) (74,528) (435,918) (2,362,312) (180,001) (455,525) (3,433,756) (245,600) (268,864) – (29,818) (544,282)
	14,157,304 36,856,196 1,820,008 1,044,451 53,877,959
	13,773,000 37,773,362 2,085,634 1,869,645 55,501,641 (666,818) (4,426,163) (136,250) (591,835) (5,821,066)
	13,106,182 33,347,199 1,949,384 1,277,810 49,680,575
	15,333,720 43,725,330 2,136,259 2,100,756 63,296,065 (1,176,416) (6,869,134) (316,251) (1,056,305) (9,418,106)
	14,157,304 36,856,196 1,820,008 1,044,451 53,877,959

The majority of property, plant and equipment is pledged as security for the credit facilities (Note 5).

Additions of production equipment under lease during the period ended amounted to $75,677 [As at June 30, 2020 – $2,746,297]. Leased assets are pledged as security for the related lease liability.

As at March 31, 2021, there are $2,053,636 and $5,416,048 of building and production equipment, respectively, that are not yet available for use and for which depreciation has not started [As at June 30, 2020 – $2,219,215, $18,963,271 and $335,815 of building, production equipment and computer].

5. CREDIT FACILITIES

Operating loans, fixed and variable rates – Authorized amount of $9,839,450 Convertible debentures – Loan[Note 6] Lease liability Long-term debt, fixed and variable rates Less: current portion of operating loans Less: current portion of lease liability Less: current portion of long-term debt	Maturity Effective interest rate %	As at March 31, 2021 As at June 30, 2020 $ $
	2021 2.7% to 4.1% December 2023 13.1% 2021 to 2030 0.8% to 6.2% 2021to 2028 2.5% to 10.0%	2,139,450 2,152,568 – 8,156,305 9,822,704 11,135,875 13,089,171 15,544,822
		25,051,325 36,989,570 2,139,450 2,152,568 1,651,386 1,839,242 3,802,655 2,713,735
		17,457,834 30,284,025

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NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

[EXPRESSED IN CANADIAN DOLLARS]

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Under these agreements, the Company has agreed to respect certain conditions and financial ratios. As at March 31, 2021, all conditions and financial ratios were met. Several movable hypothecs on specific assets of the Company and its subsidiaries and on the universality of the Company's present and future, tangible and intangible assets have been given as security for these long-term debt and credit facilities.

6. EQUITY

Pursuant to the convertible debentures conversion option, as the volume-weighted average trading price of the common shares was greater than $3.00 for 20 consecutive trading days, $10,000,000 of the convertible debentures principal amount was converted into common shares of the Company at a price of $1.84 per common share on December 8, 2020, resulting in the issuance of 5,434,782 common shares of the Company. This has also resulted in a $2,240,000 transfer from “Convertible debentures – Options” to “Share capital”.

On February 12, 2021, the Company completed a financing by way of short form prospectus of 11,500,000 common shares at a price of $4.00 per share for gross proceeds of $46,000,000. The Company intends to use the net proceeds of the financing for battery initiatives, debt reduction, sales and marketing of graphene and for general corporate purposes. The aggregate issuance costs related to this issuance, including the commission, were $2,617,433 and were paid in cash.

7. RELATED PARTY TRANSACTIONS

Martinrea is a shareholder of the Company with significant influence. During the three and nine-month periods ended March 31, 2021, a subsidiary of Martinrea purchased graphene-enhanced products from the Company for an amount of $11,310 and $17,556 respectively [2020 – Martinrea exercised 2,750,000 warrants for an amount of $1,925,000].

8. SEGMENTED DISCLOSURE

Our Chief Operating Decision Maker analyzes the information for the Company as a whole on a consolidated basis only and, as such, the Company determined it has only one operating segment. Revenues are generated from our activities in Canada, in the United States and in Switzerland and all sales of products come from enhanced plastics and composite products.

9. COMMITMENTS

The Company has committed to purchase raw materials from certain suppliers within two years.

As at March 31, 2021, the Company held options for a minimum of US$8.3 million and a maximum of US$12.2 million depending on the exchange rate of such derivative contracts. Rates vary from 1.2800 to up to 1.3601. The contracts are valid until December 2022. The carrying value of the derivative foreign currency forward exchange contracts amounted to $463,809 as at March 31, 2021 and was included in Accounts receivable and contract asset [June 30, 2020 – $211,373 included in Accounts payable and accrued liabilities].

10. SUBSEQUENT EVENT

On April 15, 2021, NanoXplore and Martinrea formed a joint venture named VoltaXplore Inc., a battery-based initiative to service the electric transportation and grid storage market. The Company and Martinrea have each invested $4,000,000 initially into VoltaXplore as startup capital to support the construction of demonstration facility. The investment in VoltaXplore will be accounted for using the equity method.

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