Investor Alert

Aug. 18, 2022, 6:02 p.m. EDT

Cleantek Industries Inc. Announces Q2 2022 Results and Appointment of Chief Operating Officer

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Cleantek Industries Inc. (CTEK)

or Cancel Already have a watchlist? Log In

Calgary, Alberta, Aug 18, 2022 (Newsfile Corp via COMTEX) -- Calgary, Alberta--(Newsfile Corp. - August 18, 2022) - Cleantek Industries Inc. /zigman2/quotes/200499473/delayed CA:CTEK +7.14% (" Cleantek " or the " Company ") (formerly Raise Production Inc. ("Raise")) is pleased to announce that it has released its financial results for the three and six months ended June 30, 2022 and 2021. Selected financial and operation information is outlined below and should be read in conjunction with Cleantek's unaudited condensed consolidated interim financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2022 and 2021, which are available on SEDAR at www.sedar.com .

Cleantek is an innovative provider of patented, clean technology solutions focused on reducing both cost and carbon intensity in the wastewater management and industrial lighting sectors across North America. Cleantek is a publicly traded company listed on the TSX Venture Exchange (the "TSXV") under the trading symbol "CTEK".

Highlights for the Second Quarter 2022

  • Cleantek generated revenue of $3.1 million for Q2 2022, an increase of $1.2 million or 61%, from Q2 2021 and consistent with Q1 2022 despite a seasonal decline in drilling activity in Canada. On a year-to-date basis, Cleantek generated revenues of $6.3 million in the first half of 2022, an increase of $1.9 million or 42%, from the first half of 2021. The increased revenue in 2022 is due to a ramp up in rental activity and increased rental prices in both sustainable lighting solutions and ZeroE dehydration;

  • Cleantek's gross profit of $1.7 million or 55% for Q2 2022 and $3.5 million or 56% of revenue for the first half of 2022 was inline with target and improved when compared with gross profits of $0.9 million and 47% for Q2 2021 and $2.4 million and 53% for first half of 2021;

  • Cleantek's EBITDA was $(0.2) million for Q2 2022, a decrease of $0.7 million when compared to Q2 2021, as the increased revenue was more than offset by $0.9 million of expenses associated with the ongoing patent litigation in the current quarter. On a year-to-date basis, EBITDA was $0.2 million, a decrease of $0.9 million from the same period in 2021 as the increased revenue was more than offset by $1.5 million of expenses associated with the ongoing patent litigation in the current year. Details on the ongoing patent litigation can be found in the Litigation and claims section below and the August 15, 2022 Company press release;

  • mobile ZeroE deployment in the US has increased over 300% to 10 units operating in Q2 2022 when compared to the three units in Q1 2022, and the Company continues to forecast full deployment of the fleet of 35 units before the end of 2022;

  • the Company fabricated and deployed an additional six new HALO lighting systems into the US and continues to forecast the deployment of eight additional HALO lighting systems over the balance of 2022 for a total of 20 new units fabricated and deployed in 2022; and,

  • as at June 30, 2022 the Company had drawn $1.1 million on its revolving debt facility and had $0.9 million cash on hand for a net debt balance of $0.2 million and had available liquidity of approximately $1.9 million.


Cleantek's strategy focuses on delivering innovative and cost-effective solutions that reduce the carbon intensity as well as the capital and operating costs of industrial operations. By focusing on expanding the market awareness and adoption of its sustainable lighting solutions and wastewater treatment assets, Cleantek expects to experience increased utilization of these high-margin product lines in the near-term. This, combined with the expansion of our ZeroE System portfolio of waste energy powered, wastewater treatment and vaporization units across industrial and infrastructure projects throughout North America and globally, is expected to lead to a sustainable increase in revenue and corresponding profitability as the Company's asset base grows over time.

The Company's near-term strategy will continue to focus on:

  • taking advantage of increased oil and gas drilling and production activity in North America to maximize utilization rates of its current fleet of sustainable lighting solutions and mobile ZeroE wastewater treatment assets;

  • expanding and growing the Company's fleet of sustainable lighting solutions and mobile ZeroE wastewater treatment assets to satisfy increased demand in the oil and gas, midstream, mining, industrial and construction markets;

  • leveraging Cleantek's technology to capture additional market share through organic growth of the ZeroE wastewater treatment and vaporization services;

  • expanding and diversifying Cleantek's geographic focus and customer base including exploring opportunities outside of the North American market; and,

  • vigorously defending its patent portfolio especially related to its ongoing patent litigation related to the HALO [tm] lighting systems in the United States.

The Company is uniquely positioned with the prospect to capture expansion in both ZeroE wastewater vaporization and sustainable lighting markets. Cleantek expects that wastewater and vaporization opportunities in the oil and gas, municipal grey water, and industrial wastewater industries and a growing awareness regarding the disadvantages and risks of downhole injection will continue to increase the demand for Cleantek's ZeroE products.

Appointment of Chief Operating Officer

The Company is pleased to announce the promotion of Jay McNeil to Chief Operating Officer ("COO"), effective August 18th, 2022.

Mr. McNeil joined Cleantek in October 2021 as Vice President of Sales, where he has led the sales team and has been instrumental in Cleantek's increased revenues. Prior to his time at Cleantek, Mr. McNeil held senior roles at Secure, Tervita, and Trinidad Drilling with an emphasis on leadership and strategic business transformation.

As COO, a newly created role at Cleantek, Mr. McNeil will report to CEO Matt Gowanlock and will take over leadership of the operations team while continuing to lead the sales team.

Mr. Gowanlock commented, "I would like to congratulate Jay for his well-deserved promotion to COO of Cleantek. Jay is a proven transformational leader with deep experience in sales, operations, and strategic growth. As a seasoned executive who relies on analytics to drive execution, I am confident Jay will continue to be a tremendous asset as we manage our growth, scale our operations, and execute our strategic plan. I am delighted to welcome Jay to this new role as COO."

Operational Update

Cleantek's second quarter 2022 revenue was $3.1 million, and was $6.2 million for the six months ended June 30, 2022, and the Company's revenue forecast remains on pace to increase by greater than 40% in 2022 from $8.8 million in 2021.

"Cleantek had a very strong start to the 2022 calendar year and we are on track to meet or exceed our 2022 revenue targets," said Matt Gowanlock, President and CEO. "We are very encouraged by consistent revenue in Q2, 2022 versus Q1, 2022 despite the seasonal decline in activity in Canada in the second quarter. These results illustrate our strategy to diversify operations from Canada into the United States is working."

Third quarter 2022 financial results will be released on November 17, 2022 after the quarterly review and approval by the Board of Directors.

Results of Operations

(Canadian $000's, except
  Three months endedJune 30


  Six months endedJune 30

per share amounts and percentages)










Gross profit





Gross profit %





Net loss
(1,443 )
(627 )
(816 )
(2,177 )
(811 )
(1,366 )
Net loss per share - basic and diluted ($) $ (0.05 ) $ (0.04 ) $ (0.02 ) $ (0.08 ) $ (0.05 ) $ (0.03 )
EBITDA [(] [1)]
(241 )

(713 )


(934 )
Adjusted EBITDA [(] [1)]
(94 )
(39 )
(55 )


(278 )
Capital expenditures





  As at:                     June 30,2022
  December 31,2021
Total assets





(2,081 )
Working capital surplus/(deficit) [(] [1] [)]



(57 )

(592 )
Non-current debt [(] [1,2] [)]





(249 )
Total non-current liabilities





(249 )


(1)Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cashflow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization. Adjusted EBITDA is measured as EBITDA adjusted for share-based compensation, impairment/impairment reversals of non-financial assets, research expense/ recoveries and unusual items not representative of ongoing business performance. Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. These items are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Please see "Non-IFRS Measurements" for further discussion of these items, and where applicable, reconciliations to measures calculated in accordance with IFRS.(2)Total non-current debt includes the non-current portions of long-term debt and lease liabilities.

Litigation and claims

The Company is involved in litigation and claims arising in the normal course of operations. Management is of the opinion that pending litigation with respect to the HALO [tm] lighting systems in the United States is without merit.

Patent litigation

In 2021, a competitor providing lighting solutions in North America filed two claims in the United States. The first claim related to the display of issued patent information on Cleantek's marketing materials. This claim was dismissed in its entirety on June 27, 2022 after Cleantek's motion to dismiss was successful.

CA : Canada: TSX Venture
$ 0.30
+0.02 +7.14%
Volume: 74,500
Dec. 2, 2022 10:21a
P/E Ratio
Dividend Yield
Market Cap
$5.82 million
Rev. per Employee
1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.