UNITED STATES
SECURITIES AND EXCHANGE COMMISSION,
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
For the transition period from [ ] to [ ]
Commission file number
| (Exact name of registrant as specified in its charter) |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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Registrant’s telephone number, including
area code:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ ☐ NO
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ ☐ NO
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☐ | Smaller reporting company | ||
| Emerging growth company | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. ☐ YES ☐ NO
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
DOCUMENTS INCORPORATED BY REFERENCE
None.
TABLE OF CONTENTS
| PART I – FINANCIAL INFORMATION | 1 | |
| ITEM 1. | FINANCIAL STATEMENTS | 1 |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 2 |
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 11 |
| ITEM 4. | CONTROLS AND PROCEDURES | 11 |
| PART II – OTHER INFORMATION | 13 | |
| ITEM 1. | LEGAL PROCEEDINGS | 13 |
| ITEM 1A. | RISK FACTORS | 13 |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES | 13 |
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 13 |
| ITEM 4. | MINE SAFETY DISCLOSURES | 13 |
| ITEM 5. | OTHER INFORMATION | 13 |
| ITEM 6. | EXHIBITS | 13 |
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Our unaudited condensed consolidated interim financial statements for the three and six months ended September 30, 2023 form part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.
1
PACIFIC GREEN TECHNOLOGIES INC.
Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
F-1
PACIFIC GREEN TECHNOLOGIES INC.
Condensed Consolidated Interim Balance Sheets
(Unaudited)
(Expressed in U.S. dollars)
| September 30, 2023 $ | March 31, $ | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | ||||||||
| Short-term investments and amounts in escrow (Note 3) | ||||||||
| Accounts receivable, net of allowance for doubtful accounts of $ | ||||||||
| Accrued revenue (Note 11) | ||||||||
| Prepaid expenses, parts inventory and advances (Note 4) | ||||||||
| Prepaid manufacturing costs (Note 11) | ||||||||
| Projects under development (Note 5) | ||||||||
| Total current assets | ||||||||
| Asset held for sale (Note 4) | ||||||||
| Project under development | ||||||||
| Property and equipment (Note 6) | ||||||||
| Intangible assets (Note 7) | ||||||||
| Right of use asset | ||||||||
| Security deposits and other advances (Note 4) | ||||||||
| Total assets | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities (Note 4), (Note 12) | ||||||||
| Warranty provision (Note 14) | ||||||||
| Contract liabilities (Note 11) | ||||||||
| Loans payable (Note 13) | ||||||||
| Loans of Projects Under Development (Note 13) | ||||||||
| Current portion of lease obligations | ||||||||
| Due to related parties (Note 15) | ||||||||
| Total current liabilities | ||||||||
| Other long-term obligation | ||||||||
| Long-term operating lease obligation | ||||||||
| Total liabilities | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, | ||||||||
| Common stock, | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive income | ||||||||
| Deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity before treasury stock | ( | ) | ||||||
| Treasury stock, at cost, shares and | ( | ) | ||||||
| Total stockholders’ equity | ( | ) | ||||||
| Noncontrolling interest (Note 10) | ||||||||
| Total equity | ||||||||
| Total liabilities and stockholders’ equity | ||||||||
Nature of Operations (Note 1)
Commitments (Note 18)
(The accompanying notes are an integral part of these consolidated financial statements)
F-2
PACIFIC GREEN TECHNOLOGIES INC.
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(Expressed in U.S. dollars)
| Three Months Ended September 30, 2023 $ | Three Months Ended September 30, 2022 $ | Six Months Ended September 30, 2023 $ | Six Months Ended September 30, 2022 $ | |||||||||||||
| Sales (Note 11) | ||||||||||||||||
| Products | ||||||||||||||||
| Services | ||||||||||||||||
| Total revenues | ||||||||||||||||
| Cost of goods sold (Note 11) | ||||||||||||||||
| Products | ||||||||||||||||
| Services | ||||||||||||||||
| Total cost of goods sold | ||||||||||||||||
| Gross profit / (loss) | ( | ) | ( | ) | ||||||||||||
| Expenses | ||||||||||||||||
| Advertising and promotion | ||||||||||||||||
| Amortization of intangible assets (Note 7) | ||||||||||||||||
| Bad debts expense / (recovery) | ( | ) | ( | ) | ||||||||||||
| Depreciation (Note 6) | ||||||||||||||||
| Foreign exchange loss / (gain) | ( | ) | ||||||||||||||
| Management and technical consulting | ||||||||||||||||
| Office and miscellaneous | ||||||||||||||||
| Operating lease expense (Note 18) | ||||||||||||||||
| Professional fees | ||||||||||||||||
| Research and development | ||||||||||||||||
| Salaries and wage expenses | ||||||||||||||||
| Transfer agent and filing fees | ||||||||||||||||
| Travel and accommodation | ||||||||||||||||
| Warranty and related expense / (recovery) (Note 14) | ( | ) | ||||||||||||||
| Total expenses | ||||||||||||||||
| Income / (loss) before other income (expense) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income / (expenses) | ||||||||||||||||
| Financing interest income | ||||||||||||||||
| Gain on derecognition of a subsidiary | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total other (expense) / income | ( | ) | ( | ) | ||||||||||||
| Net (loss)/ income for the period before noncontrolling interest | ( | ) | ( | ) | ( | ) | ||||||||||
| Net (loss)/ income attributable to noncontrolling interest (Note 10) | ( | ) | ( | ) | ( | ) | ||||||||||
| Net (loss)/ income for the period | ( | ) | ( | ) | ( | ) | ||||||||||
| Other comprehensive income | ||||||||||||||||
| Foreign currency translation gain / (loss) | ( | ) | ||||||||||||||
| Comprehensive (loss)/ income for the period | ( | ) | ( | ) | ( | ) | ||||||||||
| ( | ) | ( | ) | ( | ) | |||||||||||
| Weight average number of common shares outstanding, basic (1) | ||||||||||||||||
| Weight average number of dilutive shares outstanding, diluted | ||||||||||||||||
| (1) |
(The accompanying notes are an integral part of these consolidated financial statements)
F-3
PACIFIC GREEN TECHNOLOGIES INC.
Condensed Consolidated Interim Statements of Stockholders Equity
(Unaudited)
(Expressed in U.S. dollars)
| Common stock | Additional Paid-in | Accumulated Other Comprehensive | Treasury | Noncontrolling | Stockholders’ | |||||||||||||||||||||||||||
| Shares # | Amount $ | Capital $ | Income $ | Stock $ | Interest $ | Deficit $ | Equity $ | |||||||||||||||||||||||||
| Balance, March 31, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Shares issued for employee services | ||||||||||||||||||||||||||||||||
| Cancellation of treasury stock | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Elimination of Noncontrolling interest | – | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Transfer | – | ( | ) | |||||||||||||||||||||||||||||
| Foreign exchange translation gain/ (loss) | – | |||||||||||||||||||||||||||||||
| Net Profit (loss) for the period | – | ( | ) | |||||||||||||||||||||||||||||
| Balance June 30, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Shares issued for employee services | ||||||||||||||||||||||||||||||||
| Fair value of options granted | ||||||||||||||||||||||||||||||||
| Noncontrolling interest | – | |||||||||||||||||||||||||||||||
| Foreign exchange translation gain | – | |||||||||||||||||||||||||||||||
| Net loss for the period | – | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance September 30, 2023 | ( | ) | ||||||||||||||||||||||||||||||
| Common stock | Additional Paid-in | Accumulated Other Comprehensive | Treasury | Noncontrolling | Stockholders’ | |||||||||||||||||||||||||||
| Shares # | Amount $ | Capital $ | Income $ | Stock $ | Interest $ | Deficit $ | Equity $ | |||||||||||||||||||||||||
| Balance, March 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Fair value of options granted | – | |||||||||||||||||||||||||||||||
| Noncontrolling interest | – | |||||||||||||||||||||||||||||||
| Foreign exchange translation loss | – | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Net loss for the period | – | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance June 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Fair value of options granted | – | |||||||||||||||||||||||||||||||
| Noncontrolling interest | – | |||||||||||||||||||||||||||||||
| Foreign exchange translation gain | – | |||||||||||||||||||||||||||||||
| Net loss for the period | – | ( | ) | ( | ) | |||||||||||||||||||||||||||
| Balance September 30, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||
(The accompanying notes are an integral part of these consolidated financial statements)
F-4
PACIFIC GREEN TECHNOLOGIES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited)
(Expressed in U.S. dollars)
| Six Months Ended September 30, 2023 | Six Months Ended September 30, 2022 | |||||||
| $ | $ | |||||||
| Operating Activities | ||||||||
| Net profit /(loss) for the period | ( | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization of intangible assets (Note7) | ||||||||
| Bad debt expense/ (recovery) | ||||||||
| Depreciation (Note 6) | ||||||||
| Fair value of share-based payments | ||||||||
| Financing interest | ||||||||
| Loss / (gain) on unrealized foreign exchange | ( | ) | ||||||
| Lease finance charge | ||||||||
| Operating lease expense | ||||||||
| Share of Noncontrolling interest | ||||||||
| Other adjustments relating to disposal of subsidiary | ( | ) | ||||||
| Gain on disposal of REP and BEP1 | ( | ) | ||||||
| – | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Short-term investments and amounts held in trust | ||||||||
| Accounts receivable and other receivables | ( | ) | ||||||
| Accrued revenue | ||||||||
| Prepaid expenses, parts inventory and advances | ( | ) | ( | ) | ||||
| Security deposit and other advances | ( | ) | ||||||
| Lease payments | ( | ) | ( | ) | ||||
| Prepaid manufacturing costs | ( | ) | ( | ) | ||||
| Accounts payable and accrued liabilities | ( | ) | ||||||
| Warranty provision | ( | ) | ( | ) | ||||
| Contract liabilities | ||||||||
| Due to related parties | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Investing Activities | ||||||||
| Additions of property and equipment | ( | ) | ( | ) | ||||
| Projects under development | ( | ) | ( | ) | ||||
| Proceeds from disposal of subsidiaries (Net Proceeds) | ||||||||
| Acquisition of BESS Italy SPV’s | ( | ) | ||||||
| Net cash provided by/(used in) investing activities | ( | ) | ||||||
| Financing Activities | ||||||||
| Noncontrolling interest (Note 7(a) and (b)) | ||||||||
| Proceeds from loan facility (Note 13) | ||||||||
| Loans Paid - Principal | ( | ) | ||||||
| Loans Paid - Interest | ( | ) | ||||||
| Long term obligations – Disposal of debt through sale of assets (Note 8) | ||||||||
| Net cash provided by financing activities | ||||||||
| Effect of foreign exchange rate changes on cash | ( | ) | ||||||
| Change in cash and cash equivalents | ( | ) | ||||||
| Cash and cash equivalents, beginning of period | ||||||||
| Cash and cash equivalents, end of period | ||||||||
(The accompanying notes are an integral part of these consolidated financial statements)
F-5
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 1. | Nature of Operations |
Pacific Green Technologies Inc. (the “Company”) was incorporated in the state of Delaware, USA on March 10, 1994. The Company is in the business of acquiring, developing, and marketing environmental technologies, with a focus on battery energy storage systems and emission control technologies.
The condensed consolidated interim financial statements of the Company should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. In the opinion of management, the accompanying condensed consolidated interim financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.
The preparation of these condensed consolidated interim financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.
Following the sale of the REP project to Sosteneo, the Company has modified its BESS (“Battery Energy Storage Systems”) strategy of originating, developing and owning BESS projects, to a strategy of originating, developing and selling BESS projects. Under the new strategy, the Company expects income streams from BESS projects to include the following:
| ● | Sale of projects (Including Sales of Ownership Interests in Project Companies) | |
| ● | Construction management agreement fees | |
| ● | Asset management fees |
As discussed in the Critical Accounting Estimates section of Management’s Discussion and Analysis of Financial Condition and Results of Operations, the sale of BESS projects falls under the scope of ASC 610-20, and net proceeds from sale of projects are recognized as revenue on the transfer of control to the buyer.
Under the new strategy, project assets and liabilities are not being held as long-term assets of the company, and are expected to be sold within 12 months. As a result, balances in consolidated BESS project entities are included in the appropriate balance sheet line items, instead of assets held for sale. Project costs incurred prior to sale are capitalized as projects under development within current assets, and associated project financing liabilities are capitalized as separately identified loans, in liabilities of projects under development within current liabilities.
F-6
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 2. | Significant Accounting Policies |
| (a) | Basis of Presentation |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and are expressed in U.S. dollars. The accounting policies are consistently applied in the preparation of the consolidated financial statements. These consolidated financial statements include the accounts of the Company and the following entities:
| Pacific Green Innoergy Technologies Ltd. (“Innoergy”) (Formerly Innoergy Ltd.) | Wholly-owned subsidiary | |
| Pacific Green Marine Technologies Group Inc. (“PGMG”) | Wholly-owned subsidiary | |
| Pacific Green Marine Technologies Inc. (“PGMT US”) | Wholly-owned subsidiary of PGMG | |
| Pacific Green Technologies (UK) Ltd. (Formerly Pacific Green Marine Technologies Ltd.) (“PGTU”) | Wholly-owned subsidiary of PGMG | |
| Pacific Green Technologies (Canada) Inc. (“PGT Can”) (Formerly Pacific Green Marine Technologies Inc.) | Wholly-owned subsidiary of PGMG | |
| Pacific Green Technologies (Middle East) Holdings Ltd. (“PGTME”) | Wholly-owned subsidiary | |
| Pacific Green Technologies Arabia LLC (“PGTAL”) | ||
| Pacific Green Marine Technologies (USA) Inc. (inactive) | Dissolved, December 21, 2022 | |
| Pacific Green Solar Technologies Inc. (“PGST”) | Wholly-owned subsidiary | |
| Pacific Green Corporate Development Inc. (“PGCD”) (Formerly Pacific Green Hydrogen Technologies Inc.) | Dissolved, December 21, 2022 | |
| Pacific Green Wind Technologies Inc (“PGWT”) | Dissolved, December 21, 2022 | |
| Pacific Green Technologies International Ltd. (“PGTIL”) | Wholly-owned subsidiary | |
| Pacific Green Technologies Asia Ltd.(“PGTA”) | Wholly-owned subsidiary of PGTIL | |
| Pacific Green Technologies Engineering Services Limited (Formerly Pacific Green Technologies China Ltd. (“PGTESL”) | Wholly-owned subsidiary of PGTA | |
| Pacific Green Technologies (Shanghai) Co. Ltd. (“Engin”) (Formerly Shanghai Engin Digital Technology Co. Ltd) | Wholly-owned subsidiary | |
| Guangdong Northeast Power Engineering Design Co. Ltd. (“GNPE”) | Wholly-owned subsidiary of ENGIN | |
| Pacific Green Energy Parks Inc. (“PGEP”) | Wholly-owned subsidiary | |
| Pacific Green Energy Storage Technologies Inc. (“PGEST”) | Wholly-owned subsidiary of PGEP | |
| Pacific Green Technologies (Australia) Pty Ltd. (“PGTAPL”) | Wholly-owned subsidiary of PGEP | |
| Pacific Green Energy Storage (UK) Ltd. (“PGESU”) (Formerly Pacific Green Marine Technologies Trading Ltd.) | Wholly-owned subsidiary of PGEP | |
| Pacific Green Energy Parks (UK) Ltd. (“PGEPU”) | Wholly-owned subsidiary of PGEP | |
| Pacific Green Battery Energy Parks 2 Ltd. (“PGBEP2”) | Wholly-owned subsidiary of PGEPU | |
| Sheaf Energy Ltd. (“Sheaf”) | Wholly-owned subsidiary of PGBEP2 | |
| Pacific Green Portland West Pty Ltd. (“PGPW”) | Wholly-owned subsidiary of PGBEP | |
| Pacific Green Portland East Pty Ltd. (“PGPE”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Energy Park Portland Pty Ltd. (“PGEPP”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Energy Parks Australia Pty Ltd. (“PGEPA”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Energy Park Limestone Coast North Pty Ltd. (“PGEPLCN”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Energy Park Limestone Coast West Pty Ltd. (“PGEPLCW”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Limestone Coast Pty Ltd. (“PGLC”) | Wholly-owned subsidiary of PGTAPL | |
| Pacific Green Energy Parks (Italia) srl (“PGEPI”) | Wholly-owned subsidiary of PGEPU | |
| Sphera Australe | ||
| Sphera Levante | ||
| Sphera Ponente | ||
| Sphera Boreale |
All inter-company balances and transactions have been eliminated upon consolidation.
F-7
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 2. | Significant Accounting Policies (continued) |
| (b) | Recent Accounting Pronouncements |
In June 2016, the FASB issued ASU 2016-13,
Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires
the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience,
current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement
of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. As a smaller reporting
company, this ASU is effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years.
The Company calculated an effect of $
The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and management does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
| 3. | Short-term Investments and Amounts in Escrow |
At September 30, 2023, the Company
has a $ (March 31, 2023 - $
At September 30, 2023, the Company’s solicitor is holding $ (March 31, 2023 – $) as all the proceeds under customer contracts has been released after satisfying performance obligations.
| 4. | Assets held for Sale |
| Pre- Reclassification | Reclassification | September 30, 2023 | March 31, 2023 | |||||||||||||||
| Cash | ( | ) | ||||||||||||||||
| Prepaid expenses, parts inventory, and advances | ( | ) | ||||||||||||||||
| Other receivables | ( | ) | ||||||||||||||||
| Projects under development | ( | ) | ||||||||||||||||
| Security Deposits & Other Advances | ( | ) | ||||||||||||||||
| Rights of use asset | ||||||||||||||||||
| Accounts payable and accrued liabilities (Note 12) | ( | ) | ( | ) | ||||||||||||||
| Loans payable (*) Note 14 | ( | ) | ( | ) | ||||||||||||||
| Long term loan payable | ( | ) | ||||||||||||||||
| Long-term operating lease obligation | ( | ) | ||||||||||||||||
| Reclassification | Total | ( | ) | |||||||||||||||
| (*) |
F-8
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 5. | Projects Under Development |
| BESS – SHEAF Project | BESS – Australian Projects | BESS – Italian Projects | FOWE (Fuel Oil Water Emulsification) Development | Total Projects Under Development (PUD) | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Balance at July 01, 2023 | ||||||||||||||||||||
| Reclassifications | ||||||||||||||||||||
| Additions | ||||||||||||||||||||
| Disposals | ||||||||||||||||||||
| Balance at September 30, 2023 | ||||||||||||||||||||
| 6. | Property and Equipment |
| Cost $ | Accumulated depreciation $ | September 30, 2023 Net carrying value $ | March 31, 2023 Net carrying value $ | |||||||||||||
| Building | ( | ) | ||||||||||||||
| Furniture and equipment | ( | ) | ||||||||||||||
| Computer equipment | ( | ) | ||||||||||||||
| Leasehold improvements | ( | ) | ||||||||||||||
| Total | ( | ) | ||||||||||||||
For the three and six months ended September
30, 2023, the Company recorded $
F-9
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 7. | Intangible Assets |
| Cost $ | Accumulated amortization $ | Cumulative impairment $ | September 30, 2023 Net carrying value $ | March 31, 2023 Net carrying value $ | ||||||||||||||||
| Patents and technical information | ( | ) | ( | ) | ||||||||||||||||
| Software licensing | ( | ) | ||||||||||||||||||
| Total | ( | ) | ( | ) | ||||||||||||||||
For the three and six months ended
September 30, 2023, the Company recorded $
For the three and six months ended
September 30, 2023, the Company has allocated $
| $ | ||||
| 2024 | ||||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| Thereafter | ||||
| Total | ||||
F-10
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 8. | Acquisitions |
| (a) | Acquisition of Sheaf Energy Ltd |
On December 6, 2022, the Company acquired
all the issued and outstanding stock of Sheaf Energy Ltd., a United Kingdom company in the business of battery energy storage systems.
The purchase consideration included cash payments of a deposit of $
Total purchase consideration was therefore
$
| (b) | Acquisition of BESS Italian Project Companies |
On September 27 2023, the Company through
its indirectly wholly owned subsidiary, Pacific Green Energy Parks (Italia) S.r.l. (“EPI”) purchased
The Company paid Sphera €
The total consideration recognized of €
Under the terms of the purchase agreement,
the Company agreed to advance Sphera a further €
The Company has also agreed to acquire
the remaining
The Company has also signed development service agreements for the Italian Project Companies with Sphera.
F-11
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 9. | Disposals |
| (a) | Disposal of Subsidiaries (REP & PGBEP1) |
On June 9, 2023, Pacific Green Energy
Storage (UK) Ltd (“PGES”) and Green Power Reserves Ltd (“GPR”), a third party investor entered into a sale and
purchase agreement to sell their
The purchase price paid by Sosteneo
to PGES (UK) and GPR consisted of £
As a result of the sale, the Company
recognized a net gain on disposal of $
No gain was recorded in relation to the prospective milestone payments in the prior quarter, as it was considered that the Company did not have the information needed to reasonably estimate whether or not performance milestones will be met.
In the current quarter, following the change in strategy of the Company from developing and operating BESS projects to developing and selling BESS projects, and further development of project management and execution capabilities, the Company has re-evaluated the performance milestones.
Of the £
Following a review of the milestones included within this total net
anticipated revenue £
F-12
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 9. | Disposals (continued) |
| (a) | Disposal of Subsidiaries (REP & PGBEP1) (continued) |
The Company also incurred £
| GBP | FX | USD | ||||||||||
| Consideration received (A) | ||||||||||||
| Net assets: | ||||||||||||
| Cash | ||||||||||||
| Projects under development | ||||||||||||
| Other assets | ||||||||||||
| Long term AP and accruals | ( | ) | ||||||||||
| Other liabilities & Non-controlling interest | ( | ) | ||||||||||
| Total (B) | ( | ) | ||||||||||
| Initial Investment in PGBEP (C) | ||||||||||||
| Gain (A)-(B)-(C) | ||||||||||||
In addition to the derecognition of the balances sold and recognition of the gain on sale of subsidiary, the SPA also includes certain contingent assets and liabilities which were not recorded in the statement of financial position as at June 30, 2023, due to their remote nature.
| (b) | Sale of Sheaf Energy Ltd. |
On November 02, 2023, the Company reached
financial close on a £
Also on November 02, 2023, the Company
entered into a transaction committing to sell
Under the terms of the transaction, the Company and Sosteneo have granted
each other respective options to buy or sell the shares in PGBEP2. As part of the transaction, Sosteneo will provide a £
Under the terms of the transaction, the Company has received a deposit
of £
As part of the transaction, the Company
also received a £
F-13
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 10. | Noncontrolling Interest |
On December 2, 2020, the Company signed
a Joint-Venture Agreement with Amr Khashoggi Trading Company Limited (“Amkest Group”) to incorporate a company in the Kingdom
of Saudi Arabia for the sale of Pacific Green’s environmental technologies within the region. The Company holds
Between March 2022 and September 2022,
Green Power Reserves Limited (“GPR”) made an equity investment of a total $
On September 27, 2023, the Company
purchased
| September 30, 2023 $ | March 31, 2023 $ | |||||||
| Non-redeemable noncontrolling interest | ||||||||
| Net (loss)/ income attributable to noncontrolling interest (BESS REP) | ( | ) | ||||||
| Net loss income attributable to noncontrolling interest (JV) | ( | ) | ( | ) | ||||
| Acquired noncontrolling interest (BESS Italy) | ||||||||
| Non-controlling interest | ||||||||
During the period September 30, 2023,
Net income attributable to noncontrolling interest was ($) split as follows; Net income attributable to noncontrolling interest
(BESS) was ($
F-14
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 11. | Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities |
| Three Months Ended September 30, 2023 $ | Three Months $ | Six Months Ended September 30, 2023 $ | Six Months $ | |||||||||||||
| Products | ||||||||||||||||
| Services | ||||||||||||||||
| Total | ||||||||||||||||
Revenue from services include specific services provided to marine scrubber systems as well as design and engineering services for Concentrated Solar Power. Contracts for specific services provided to marine scrubber systems represent maintenance services. Contracts for Concentrated Solar Power include design and engineering services provided to clients. Revenue for Marine service contracts is recognized as the services are provided.
| Three Months Ended September 30, 2023 $ | Three Months $ | Six Months Ended September 30, 2023 $ | Six Months Ended September 30, 2022 $ | |||||||||||||
| Specific services provided to marine scrubber systems | ||||||||||||||||
| Design and engineering services for Concentrated Solar Power | ||||||||||||||||
| Total | ||||||||||||||||
F-15
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 11. | Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (continued) |
The Company has analyzed its sales contracts under ASC 606 and has identified that the percentage of completion of the contract often is not directly correlated with contractual billing terms with customers. As a result of the timing differences between customer sales invoices and percentage of completion of the contract, contractual assets and contractual liabilities have been recognized.
As of September 30, 2023, Contract
liabilities included $
| Accrued Revenue $ | Prepaid Manufacturing Costs $ | Sales (Cost of Goods Sold) $ | Contract Liabilities $ | |||||||||||||
| Balance, March 31, 2022 | ( | ) | ||||||||||||||
| Customer receipts and receivables | ( | ) | ||||||||||||||
| Scrubber sales recognized in revenue | ||||||||||||||||
| Payments and accruals under contracts | ( | ) | ||||||||||||||
| Cost of goods sold recognized in earnings | ( | ) | ( | ) | ||||||||||||
| Balance, March 31, 2023 | ( | ) | ||||||||||||||
| Customer receipts and receivables | ( | ) | ||||||||||||||
| Scrubber sales recognized in revenue | ||||||||||||||||
| Payments and accruals under contracts | ( | ) | ||||||||||||||
| Cost of goods sold recognized in earnings | ( | ) | ( | ) | ||||||||||||
| Balance, September 30, 2023 | ( | ) | ||||||||||||||
F-16
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 11. | Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (continued) |
| Three Months Ended September 30, 2023 $ | Three Months Ended September 30, 2022 $ | Six Months Ended September 30, 2023 $ | Six Months Ended September 30, 2022 $ | |||||||||||||
| Scrubber costs recognized | – | ( | ) | |||||||||||||
| Salaries and wages | ||||||||||||||||
| Amortization of intangibles | ||||||||||||||||
| Commission type costs | ||||||||||||||||
| Design and engineering services for CSP | ||||||||||||||||
| Specific services provided to marine scrubber systems | ||||||||||||||||
| Construction management services | ||||||||||||||||
| Total | ||||||||||||||||
| 12. |
| September 30, 2023 $ | March 31, 2023 $ | |||||||
| Accounts payable (*) | ||||||||
| Accrued liabilities | ||||||||
| Other liabilities | ||||||||
| Payroll liabilities | ||||||||
| Total short-term accounts payable and accrued liabilities | ||||||||
| Balance, end of period | ||||||||
| (*) |
Accrued liabilities include $
F-17
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 13. | Loans Payable |
On December 15, 2022, the Company signed a Loan Agreement with Sheaf Storage Limited, for a total of $
On September 14, 2023, the Company signed
an addendum to the Loan Agreement, extending the term of the loan to be repayable on November 15, 2023, with revised repayment fee of
On September 20, 2023, the Company entered into seven separate loan agreements under English law and one under
US Law with seven independent third party lenders for a total of £
Each loan is split into two equal tranches and in the absence of a
prior liquidity event, is repayable on March 20, 2024, or has a longstop date of June 20, 2024. Tranche 1 liquidity event occurs when
the Company receives net funds in excess of £
| September 30, 2023 $ | March 31, 2023 $ | |||||||
| Loans payable (*) | ||||||||
| Long term loans payable | ||||||||
| Loans of Projects Under Development (Note 4) | ||||||||
| Balance, end of period | ||||||||
| (*) |
F-18
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 14. | Warranty Costs |
During the three and six months ended
September 30, 2023, the Company recorded a non-cash warranty recovery of $ (2022 - $ ) and $
| September 30, 2023 $ | March 31, 2023 $ | |||||||
| Balance, beginning of period | ||||||||
| Warranty expense / (recovery) | ( | ) | ||||||
| Warranty (invoiced costs) / recovery | ( | ) | ||||||
| Balance, end of period | ||||||||
| 15. | Related Party Transactions |
| (a) | At
September 30, 2023, the Company owed $ |
| (b) | During
the three and six months ended September 30, 2023, the Company incurred $ |
| (c) | During the three and six months ended September 30, 2022, the Company incurred $ | |
| (d) | During the three and six months ended September 30, 2023, the Company incurred $ |
F-19
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 16. | Stock Options |
| Number of options | Weighted average exercise price $ | Weighted average remaining contractual life (years) | Aggregate intrinsic value $ | |||||||||||||
| Balance, March 31, 2022 | ||||||||||||||||
| Granted | ||||||||||||||||
| Forfeited | ( | ) | ||||||||||||||
| Balance, March 31, 2023 and June 30, 2023 | ||||||||||||||||
| Granted | ||||||||||||||||
| Balance, September 30, 2023, vested and exercisable | * | |||||||||||||||
| (*) |
| Issued and Outstanding | ||||||||||
| Number of shares | Weighted average remaining contractual life (years) | Exercise price $ | ||||||||
Unless otherwise noted, the Company
estimates the fair value of its stock options using the Black-Scholes option pricing model, assuming no expected dividends, applying a
risk-free interest rate of
The estimated fair value of the stock options is recorded over the
requisite period to vesting. For the three and six months ended September 30, 2023, the fair value of $
F-20
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 17. | Segmented Information |
| September 30, 2023 | ||||||||||||||||
| North America $ | Europe $ | Asia $ | Total $ | |||||||||||||
| Property and equipment | ||||||||||||||||
| Intangible Assets | ||||||||||||||||
| Right of use assets | ||||||||||||||||
| March 31, 2023 | ||||||||||||||||
| North America $ | Europe $ | Asia $ | Total $ | |||||||||||||
| Property and equipment | ||||||||||||||||
| Intangible Assets | ||||||||||||||||
| Right of use assets | ||||||||||||||||
| Three months ended September 30, 2023 | ||||||||||||||||||||
| North America $ | Europe $ | Asia $ | South America $ | Total $ | ||||||||||||||||
| Revenues by customer region | ||||||||||||||||||||
| COGS by customer region | ||||||||||||||||||||
| Gross Profit by customer region | ( | ) | ( | ) | ( | ) | ||||||||||||||
| GP% by customer region | % | ( | %) | ( | %) | % | ( | %) | ||||||||||||
F-21
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 17. | Segmented Information (continued) |
| Three months ended September 30, 2022 | ||||||||||||||||||||
| North America $ | Europe $ | Asia $ | South America $ | Total $ | ||||||||||||||||
| Revenues by customer region | ||||||||||||||||||||
| COGS by customer region | ||||||||||||||||||||
| Gross Profit by customer region | ||||||||||||||||||||
| GP% by customer region | % | % | % | % | % | |||||||||||||||
| Six months ended September 30, 2023 | ||||||||||||||||||||
| North America $ | Europe $ | Asia $ | South America $ | Total $ | ||||||||||||||||
| Revenues by customer region | ||||||||||||||||||||
| COGS by customer region | ||||||||||||||||||||
| Gross Profit by customer region | ( | ) | ( | ) | ( | ) | ||||||||||||||
| GP% by customer region | % | ( | %) | ( | )% | % | ( | )% | ||||||||||||
| Six months ended September 30, 2022 | ||||||||||||||||||||
| North America $ | Europe $ | Asia $ | South America $ | Total $ | ||||||||||||||||
| Revenues by customer region | ||||||||||||||||||||
| COGS by customer region | ||||||||||||||||||||
| Gross Profit by customer region | ||||||||||||||||||||
| GP% by customer region | % | % | % | % | % | |||||||||||||||
For the three and six months ended
September 30, 2023,
F-22
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 18. | Commitments |
| (a) |
| Long-term premises lease | Lease commencement | Lease expiry | Term (years) | Discount rate* | |||||||
| % | |||||||||||
| % | |||||||||||
| * |
Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating leases do not contain an option to extend or terminate the lease term at the Company’s discretion, therefore no probable renewal has been added to the expiry date when determining lease term. Operating lease expense is recognized on a straight-line basis over the lease term.
| Three Months Ended September 30, 2023 $ | Three Months Ended September 30, 2022 $ | Six Months Ended September 30, 2023 $ | Six Months Ended September 30 2022 $ | |||||||||||||
| Operating lease expense * | ||||||||||||||||
| * |
| $ | ||||
| 2024 | ||||
| 2025 | ||||
| Thereafter | ||||
| Total future minimum lease payments | ||||
| Imputed interest | ( | ) | ||
| Operating lease obligations | ||||
| (b) | On December 2, 2020, the Company signed a Joint-Venture Agreement with Amr Khashoggi Trading Company Limited (“Amkest Group”) to incorporate a company in the Kingdom of Saudi Arabia for the sale of Pacific Green’s environmental technologies within the region. The Company holds
Neither party had funded the joint venture at March 31, 2022 and there had been no revenue and expense associated with it for the year ending March 31, 2022. Since April 1, 2022 the Company has paid in share capital and intercompany loans and accrued interest amounting to $ |
F-23
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 19. | Income Taxes |
| September 30, 2023 $ |
September 30, 2022 $ |
|||||||
| United States | ( |
) | ( |
) | ||||
| Foreign | ( |
) | ||||||
| Net profit / (loss) before taxes | ( |
) | ||||||
| September 30, 2023 $ |
September 30 2022 $ |
|||||||
| Net profit / (loss) before taxes | ( |
) | ||||||
| Statutory tax rate | % | % | ||||||
| Expected income tax expense / (recovery) | ( |
) | ||||||
| Tax exemption on share sale | ( |
) | ||||||
| Subpart F inclusion | ||||||||
| Permanent differences and other | ||||||||
| Foreign tax rate difference | ( |
) | ||||||
| Change in valuation allowance | ( |
) | ||||||
| Income tax provision | ||||||||
| Current | ||||||||
| Deferred | ||||||||
| Income tax provision | ||||||||
At September 30, 2023, the Company is current with statutory corporate income tax filings. Certain of the amounts presented above are based on estimates and what management believes are prudent filing positions. The actual losses available could differ from these estimates upon assessment and review by taxation authorities. U.S. federal and state income tax returns filed by us remain subject to examination for income tax years 2014 and subsequent. Canadian federal and provincial income tax returns filed by us remain subject to examination for income tax years 2019 and subsequent. Income tax returns associated with our operations located in the United Kingdom and China are subject to examination for income tax years 2018 and subsequent.
F-24
PACIFIC GREEN TECHNOLOGIES INC.
Notes to the Condensed Consolidated Interim Financial Statements
September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| 19. | Income Taxes (continued) |
Tax positions are evaluated for recognition
using a more-likely than-not recognition threshold, and those tax positions eligible for recognition are measured as the
largest amount of tax benefit that is greater than
The Company estimates that it has accumulated
estimated net operating losses of approximately $
| 20. | Subsequent events |
On November 02, 2023, the Company reached
financial close on a £
Also on November 02, 2023, the Company
entered into a transaction committing to sell
Under the terms of the transaction,
the Company and Sosteneo have granted each other respective options to buy or sell the shares in PGBEP2. As part of the transaction, Sosteneo
will provide a £
Under the terms of the transaction,
the Company has received a deposit of £
As part of the transaction, the Company
also received a £
On October 16, 2023, the board of directors
approved a performance-related bonus for Scott Poulter, Chief Executive Officer in relation to the commitment to the Sheaf project, which
comprises
F-25
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
As used in this quarterly report and unless otherwise indicated, the terms “we”, “us”, “our”, the “Company”, and “our company” mean Pacific Green Technologies Inc., a Delaware corporation, and our wholly owned subsidiaries, (1) Pacific Green Innoergy Technologies Ltd., a United Kingdom company, (2) Pacific Green Marine Technologies Group Inc., a Delaware corporation, (3) Pacific Green Marine Technologies Inc., a Delaware corporation, (4) Pacific Green Technologies (UK) Ltd. (Formerly Pacific Green Marine Technologies Ltd.), a United Kingdom company, (5) Pacific Green Technologies (Middle East) Holdings Ltd., a United Arab Emirates company, (6) Pacific Green Technologies Arabia LLC, 70% owned, a Kingdom of Saudi Arabia company, (7) Pacific Green Technologies (Canada) Inc. (Formerly Pacific Green Marine Technologies Inc.), a Canadian corporation, (8) Pacific Green Solar Technologies Inc., a Delaware corporation, (9) Pacific Green Technologies International Ltd., a British Virgin Islands company, (10) Pacific Green Technologies Asia Ltd., a Hong Kong company, (11) Pacific Green Technologies Engineering Services Limited (Formally Pacific Green Technologies China Ltd.), a Hong Kong company, (12) Pacific Green Technologies (Australia) Pty Ltd., an Australia company, (13) Pacific Green Technologies (Shanghai) Co. Ltd. (Formerly Shanghai Engin Digital Technology Co. Ltd.), a Chinese company, (14) Guangdong Northeast Power Engineering Design Co. Ltd., a Chinese company, (15) Pacific Green Energy Parks Inc., a Delaware corporation, (16) Pacific Green Energy Storage Technologies Inc., a Delaware corporation, (17) Pacific Green Energy Storage (UK) Ltd. (Formerly Pacific Green Marine Technologies Trading Ltd.), a United Kingdom company, (18) Pacific Green Portland West Pty Ltd., an Australian company, (19) Pacific Green Portland East Pty Ltd., an Australian company, (20) Pacific Green Energy Park Portland Pty Ltd., an Australian company, (21) Pacific Green Energy Parks Australian Pty Ltd., an Australian company, (22) Pacific Green Energy Park Limestone Coast North Pty Ltd., an Australian company, (23) Pacific Green Energy Park Limestone Coast West Pty Ltd., an Australian company, (24) Pacific Green Limestone Coast Pty Ltd., an Australian company, (25) Pacific Green Battery Energy Parks 2 Ltd., a United Kingdom company, (26) Sheaf Energy Ltd., a United Kingdom company, (27) Pacific Green Energy Parks (UK) Ltd., a United Kingdom company, (28) Pacific Green Energy Parks (Italia) srl, an Italian company, (29) Sphera Australe Srl, 51% owned, an Italian company, (30) Sphera Levante Srl, 51% owned, an Italian company, (31) Sphera Ponente Srl, 51% owned, an Italian company, (32) Sphera Boreale Srl, 51% owned, an Italian company, unless otherwise indicated.
Corporate History
Our company was incorporated in Delaware on March 10, 1994, under the name of Beta Acquisition Corp. In September 1995, we changed our name to In-Sports International, Inc. In August 2002, we changed our name from In-Sports International, Inc. to ECash, Inc. In 2007, due to limited financial resources, we discontinued our operations. Over the course of the ensuing five years, we sought out new business opportunities.
On June 13, 2012, we changed our name to Pacific Green Technologies Inc. and effected a reverse split of our common stock following which we had 27,002 shares of common stock outstanding with $0.001 par value.
2
Effective December 4, 2012, we filed with the Delaware Secretary of State a Certificate of Amendment of Certificate of Incorporation, wherein we increased our authorized share capital to 510,000,000 shares of stock as follows:
| ● | 500,000,000 shares of common stock with a par value of $0.001; and | |
| ● | 10,000,000 shares of preferred stock with a par value of $0.001. |
The increase of authorized capital was approved by our board of directors on July 1, 2012 and by a majority of our stockholders by a resolution dated July 1, 2012.
Original Strategy and Recent Business
Since 2012, the Company has focused on marketing, developing and acquiring technologies designed to improve the environment by reducing pollution. The Company has acquired and registered its own technologies, patents and intellectual property from acquisitions and organic growth, and pursued opportunities globally for the development and marketing of the emission control technologies, including the ENVI-Systems™ emission control technologies: ENVI-Marine TM, ENVI-Pure TM and ENVI-Clean TM.
Since October 2020, the Company has developed Battery Energy Storage Systems (BESS) capabilities, initially through acquisition of Innoergy Limited. Since March 2021, the Company has acquired and developed two BESS projects of total 350MW in the United Kingdom, from early-stage origination and development through to financing, financial close of sale to an equity investor, and continued construction management towards commercial operation. In Q1 FY24 the Company closed the sale of REP project in the United Kingdom to Sosteneo, and on November 02, 2023, committed to the sale of Sheaf project to Sosteneo.
The Company has also added further origination stage projects to its portfolio, including a portfolio of 500MW of projects in Italy and 1GW of projects in Australia.
Vision & Strategy
Pacific Green envisions a world of rapidly growing demand for renewable energy technological solutions to address the challenges presented by a changing climate. Our business provides turnkey and scalable end-to-end environmental and renewable technology solutions in the energy sector. Our technological platform has two main divisions:
| ● | Battery Energy Storage Systems (“BESS”); and |
| ● | Environmental Technologies (“ET”); |
Pacific Green plans to execute this vision by a strategy of equipment sales and proactive infrastructure development and ownership, each is led by acquisitions of technology capabilities and project investment opportunities, highlighted to date by the following events:
| ● | On October 20, 2020, the Company closed the acquisition of Innoergy Limited (“Innoergy”), a UK based designer of BESS whose clients included Osaka Gas Co. Ltd, in Japan, and Limejump Limited in the UK, a subsidiary of Shell plc. The acquisition has enabled our entry into the BESS market; |
| ● | On March 18, 2021, the Company acquired Richborough Energy Park Limited (“REP”), a BESS development project to deliver 99MW of energy in Kent, UK and subsequently sold the entity under the terms of a Sale and Purchase Agreement on June 26, 2023; and |
| ● | On December 6, 2022 the Company acquired Sheaf Energy Limited which is being developed into our second BESS 249MW facility project. The Company sold the project to Sosteneo Fund 1 Holdco s.a.r.l. on November 02, 2023 but will continue to participate and earn revenue from the project under the terms of a construction management agreement and milestone payments included in the sale agreement. |
.
| ● | On 27 September 27 2023, the Company purchased 51% of the equity capital in four Italian entities (the Italy Project Companies) with preliminary land agreements secured and preliminary grid interconnection offers accepted for five BESS projects in Italy, with total development potential of 500MW. The Company also paid an advance towards its future purchase of the remaining 49% of the Italy Project Companies. |
3
In support of this strategy, we have adopted a Human Resource approach that seeks to hire the best talent in the core areas of our business. At September 30, 2023, the Company employed approximately 42 staff excluding full time consultants and contractors across a network of offices around the world. Our hiring plan includes the addition of sales and project execution specialists.
Strategic Partnerships
Pacific Green has forged global partnerships with private and state-owned energy providers and owners. This strategic alignment with leading energy industry platforms empowers Pacific Green to provide quickly scalable solutions in the core areas of our business, to gather unique insights on cutting-edge trends and leverage recurring revenue opportunities that enable us to cross-sell products and services.
The Company has entered into several partnership and framework agreements in the core areas of our business.
Battery Energy Storage Systems (“BESS”)
| ● | On January 14, 2021, the Company signed a framework agreement with Shanghai Electric Gotion New Energy Technology Co., Ltd (“SEG”). The agreement provides for the supply of lithium-ion BESS. SEG is a joint-venture between Shanghai Electric Group Co., Ltd. (“Shanghai Electric”) with operating revenues in excess of USD$20 billion, and Guoxuan High-tech Co., Ltd. With multiple production facilities and a long-established history in technology manufacturing and supply-chain management, SEG is well-positioned to provide lithium-ion BESS technology around the world, has supplied the batteries for the Richborough Energy Park and is contracted to supply the batteries for Sheaf project. |
| ● | On March 18, 2021, the Company signed a framework agreement with TUPA Energy Limited (“TUPA”) to gain exclusive rights BESS projects in the UK. TUPA is a UK-based company with expertise in planning, grid connections and land acquisition. The Company has to date executed 99MW in relation to the Richborough Energy Park project and 249MW in relation to the Sheaf Energy project. The framework agreement was terminated after the completion of the Sheaf Energy acquisition in December 2022. |
| ● | On June 13, 2023, the Company signed consulting agreements with GSMT consulting Pty Ltd to provide GPS studies and connection agreement support in the development of Limestone and Portland BESS sites in Australia. |
| ● | In addition to the agreement to purchase 51% of the Italy Project Companies from Sphera Energy S.r.l., on September 27, 2023 the Company signed a development services agreement with Sphera Energy S.r.l. to develop each of the five BESS projects owned by the Italy Project Companies, with the objective of issuance of a license to each Project Company that will allow the Italy Project Companies to build and operate the proposed BESS projects, and to reach ready to build status. |
| ● | On October 31, 2023, the Company signed a balance of plant subcontract with Keltbray Built Environment Limited for the Sheaf project in the UK. |
In addition to supply agreements, on December 2, 2020, the Company signed a joint venture and marketing agreement with AMKEST to assist with the promotion of the Company’s business activities in the Kingdom of Saudi Arabia and the wider Middle East. Amkest Group is overseen by its founder, Amr Khashoggi, who holds board positions in numerous influential companies and government bodies across the Kingdom and is currently serving as Strategic Advisor to the Kingdom’s prominent new development city, King Abdullah Economic City (KAEC). Amkest Group’s leadership team is led by Chief Executive Officer, Salman Alireza, whose background includes various founding, executive and director-level positions in the business development sector within the Kingdom of Saudi Arabia, in addition to an MBA from London Business School.
Significant Events
On January 16, 2023, a postponement agreement with a major client, in which 13 marine scrubber units had been deferred, was extended from the original expiration date of February 9, 2023, to December 31, 2023.
On February 6, 2023, 250,000 ordinary shares in the Company were issued to McClelland Management Inc. at a price of $0.73 as part of the consideration for intellectual property transferred from McClelland Management Inc. to the Company under the terms of an IP transfer deed dated January 4, 2023. A further 250,000 shares will be issued in January 2024 and 250,000 shares in January 2025.
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On May 4, 2023, the Company entered into land option agreements with BZ Renewables Holdings PTY, in relation to sites with potential for BESS projects of 1GW capacity in Portland and Limestone Coast in Southern Australia.
On June 8, 2023, the Company approved the cancellation of 56,162 shares of Treasury stock it had previously repurchased during the year ended March 31, 2022 under an authorized share buy-back program.
On June 26, 2023 the Company sold Richborough Energy Park (“REP”), a 99 MW BESS project in Kent, UK. The project is anticipated to begin operations in January 2024.
On June 9, 2023, the board of directors approved a performance-related bonus for Scott Poulter, Chief Executive Officer, which comprises 2,750,000 shares in the Company, $1,957,340 (£1,550,000) in cash and a 10% increase in salary backdated to April 1, 2023. The shares are issuable and cash payable immediately. The cash bonus was paid on June 15, 2023. The shares were issued on June 23, 2023.
On July 3, 2023, the board of directors approved a performance-related bonus for Scott Poulter, Chief Executive Officer, which comprises 2,250,000 shares in the Company which are issuable immediately and $2,567,200 (£2,000,000) in cash, of which $1,797,040 (£1,400,000) is payable immediately and $770,160 (£600,000) payable pro rata with the remaining consideration of the Richborough sale.
On September 27, 2023, the Company purchased 51% of the capital in four Italy Project Companies from Sphera Energy S.r.l. (“Sphera”). Sphera established the Italy Project Companies for the development of five BESS projects in Italy of total 500 MW capacity.
On October 16, 2023, the board of directors approved a performance-related bonus for Scott Poulter, Chief Executive Officer in relation to the commitment to the Sheaf project, which comprises 4,500,000 shares in the Company which are issuable immediately upon the commitment being made, and $3,664,000 (£3,000,000) in cash, of which $3,053,000 (£2,500,000) is payable immediately upon the commitment being made, and $611,000 (£500,000) is payable in monthly instalments over 24 months.
On November 02, 2023, the company committed to the sale of Sheaf Energy Park, a 249 MW BESS project in Kent, England. The project is anticipated to begin commercial operations in mid-2025.
Results of Operations
The following summary of our results of operations should be read in conjunction with our unaudited interim financial statements for the three and six months ended September 30, 2023, and 2022.
Revenue for the three and six months ended September 30, 2023 was $1,164,989and $2,353,827versus $1,195,353 and $3,219,229 for the three and six months ended September 30, 2022. The Company’s revenues were derived from and from service agreement revenue. During the three months ended September 30, 2023, the Company was in the process of commissioning 1 (2022 – 2) marine scrubber units which contributed to revenue of $nil (2022 – $699,289). During the three and six months ended September 30, 2023, revenue from environmental technology services in the marine and solar businesses was $1,164,989 and $ 2,353,827 as compared to $496,064 and $864,781 for the three and six months ended September 30, 2022.
During the six months ended September 30, 2023, the gross profit margin for products and services were nil (2022- 28%) and (-1%) (2022- 33%), respectively. Overall, the gross profit margin for the six months ended September 30, 2023 was approximately (-1%) (2022 – negative 29%).
Expenses for the three and six months ended September 30, 2023, were $ 7,348,668 and $ 15,168,124 as compared to $2,462,297 and $6,388,954 for the three and six months ended September 30, 2022. Management and technical consulting fees increased due to increased activity in arising from the sale of REP/ BEP1 BESS Projects. Management and technical consulting fees were comprised of fees paid to our directors, officers and advisors for business development efforts and advisory services. Office-based costs, travel expenses, and professional fees also increased due to increased business activities and increased bonuses paid following the sale of REP/BEP1.
5
The three and six months ended September 30, 2023, our company recorded a net loss of $ 2,520,880 ($0.05 per share) and profit of $767,359 ($0.01 per share) as compared to net loss of $2,241,871 ($0.05 per share) and $5,501,101 ($0.12 per share) for the three and six months ended September 30, 2022.
Our financial results for the three months ended September 30, 2023 and 2022 are summarized as follows:
| Three Months Ended | Six Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2023 $ | 2022 $ | 2023 $ | 2022 $ | |||||||||||||
| Revenues | ||||||||||||||||
| Products | – | 699,289 | – | 2,354,447 | ||||||||||||
| Services | 1,164,989 | 496,064 | 2,353,827 | 864,782 | ||||||||||||
| Total revenues | 1,164,989 | 1,195,353 | 2,353,827 | 3,219,229 | ||||||||||||
| Cost of goods sold | ||||||||||||||||
| Products | 251,831 | 713,040 | 443,687 | 1,700,247 | ||||||||||||
| Services | 1,348,203 | 341,640 | 2,374,110 | 582,976 | ||||||||||||
| Total cost of goods sold | 1,600,034 | 1,054,680 | 2,817,797 | 2,283,223 | ||||||||||||
| Gross (loss) / profit | (435,045 | ) | 140,673 | (463,970 | ) | 936,006 | ||||||||||
| Expenses | ||||||||||||||||
| Advertising and promotion | 98,833 | 158,406 | 202,983 | 301,673 | ||||||||||||
| Amortization of intangible assets | 626 | 662 | 1,305 | 1,350 | ||||||||||||
| Bad Debts Expense / (recovery) | 44,747 | (46,534 | ) | 56,224 | (46,534 | ) | ||||||||||
| Depreciation | 38,295 | 49,487 | 75,415 | 103,071 | ||||||||||||
| Foreign exchange loss / (gain) | 251,827 | (393,375 | ) | 1,064,199 | 104,321 | |||||||||||
| Management and technical consulting | 4,052,668 | 315,240 | 9,283,918 | 1,304,324 | ||||||||||||
| Office and miscellaneous expense | 520,908 | 527,307 | 954,402 | 990,076 | ||||||||||||
| Operating lease expense | 93,436 | 99,253 | 217,359 | 208,990 | ||||||||||||
| Professional fees | 227,143 | 460,635 | 263,157 | 747,660 | ||||||||||||
| Research and development | 112,144 | – | 144,341 | 13,772 | ||||||||||||
| Salaries and wages | 1,546,262 | 1,065,710 | 2,443,270 | 2,048,624 | ||||||||||||
| Transfer agent and filing fees | 20,592 | 17,043 | 36,326 | 30,797 | ||||||||||||
| Travel and accommodation | 118,394 | 208,463 | 237,752 | 399,230 | ||||||||||||
| Warranty and related expense / (recovery) | – | – | (35,320 | ) | 181,600 | |||||||||||
| Total expenses | 7,125,875 | 2,462,297 | 14,945,331 | 6,388,954 | ||||||||||||
| Other income / (expense) | ||||||||||||||||
| Financing interest income | 5 | 10,031 | 1,044 | 56,300 | ||||||||||||
| Gain on derecognition of a subsidiary | 5,503,794 | – | 17,622,891 | – | ||||||||||||
| Interest expense | (712,383 | ) | (39,360 | ) | (2,021,353 | ) | (77,711 | ) | ||||||||
| Net (loss) / income for the period before noncontrolling interest | (2,769,504 | ) | (2,350,953 | ) | 193,281 | (5,474,359 | ) | |||||||||
| Net (loss) /income attributable to noncontrolling interest | (33,386 | ) | (109,082 | ) | (358,840 | ) | 26,742 | |||||||||
| Net (loss) / income for the period | (2,736,118 | ) | (2,241,871 | ) | 552,121 | (5,501,101 | ) | |||||||||
6
Liquidity and Capital Resources
Working Capital
| September 30, 2023 $ | March 31, 2023 $ | |||||||
| Current assets | 27,426,840 | 3,757,334 | ||||||
| Current liabilities | 33,059,553 | 15,537,991 | ||||||
| Working capital (deficit) | (5,632,713 | ) | (11,780,657 | ) | ||||
Cash Flows
| Six Months Ended September 30, 2023 $ | Six Months Ended September 30, 2022 $ | |||||||
| Net cash used in operating activities | (11,568,408 | ) | (4,870,482 | ) | ||||
| Net cash provided by/(used in) investing activities | 712,363 | (15,325,769 | ) | |||||
| Net cash provided by financing activities | 10,394,355 | 17,834,507 | ||||||
| Effect of exchange rate changes on cash | 627,436 | (899,218 | ) | |||||
| Net change in cash and cash equivalents | 165,746 | (3,260,962 | ) | |||||
As of September 30, 2023, we had $1,439,484 in cash and cash equivalents, $27,426,840 in total current assets, $33,059,553 in total current liabilities and a working capital deficit of $5,632,713 compared to a working capital deficit of $11,780,657 as at March 31, 2023. The Company’s working capital increased due to capitalization of Projects under Development expenditure primarily on Sheaf project, recognition of contract assets on revenue recognition for construction milestones on REP project, offset by loans related to Sheaf project and accounts payable related to Sheaf project.
During the six months ended September 30, 2023, we used $11,568,408 in operating activities, whereas we used $4,870,482 from operating activities for the three months period ended September 30, 2022. The operating cash flow for the six months ended September 30, 2023, resulted primarily from gain on sale of REP project in June 2023.
During the six months ended September 30, 2023, we received $712,363 in investing activities, whereas we used $15,325,769 in investing activities during the three months ended September 30, 2021. Our investing activities for the three months ended September 30, 2023, comprised primarily additions of project under development and equipment on Sheaf project and investment in Italian Project Companies, offset by proceeds from disposal of REP project.
During the six months ended September 30, 2023, we received $10,394,355 in financing activities, whereas we received $17,834,507 in financing activities for the six months ended September 30, 2022. Our financing activities for the six months ended September 30, 2023, were related to disposal of debt on sale of REP project, proceeds from short term loans, offset by repayment of short-term loans.
7
Anticipated Cash Requirements
Following the quarter end date, the Company has collected over $22 million in proceeds from the committed sale of Sheaf project. In addition, the Company expects to collect a further $6 million from milestone payments on REP project as the project achieves commercial operation and further testing results. The Company expects to raise development finance for Australia portfolio in early 2024, and also raise further corporate capital of more than $10 million, to support growth of the BESS projects in particular.
These sources of funds will enable the Company to execute on BESS projects underway in the UK, meet budgeted development expenditure plans of the Australian and Italian project portfolios, and cover all operating costs and overheads.
As of September 30, 2023, the Company had $1.4 million cash on hand. After careful consideration we believe current operations, anticipated deliveries and services expected profit from such deliveries, sales of products and services in our BESS and environmental technology businesses and the raising of short-term funds to be sufficient to cover expected cash operating expenses over the next 12 months.
Our cash requirement estimates may change significantly depending on the nature of our business activities and our ability to raise capital from our shareholders or other sources.
We currently have office locations in the United States, Canada, United Kingdom, China, Hong Kong, Abu Dhabi, Kingdom of Saudi Arabia, Australia and Italy. We have hired staff in various regions and rely heavily upon the use of contractors and consultants. Our general and administrative expenses for the period will consist primarily of technical consultants, management, salaries and wages, professional fees, transfer agent fees, bank and interest charges and general office expenses. The professional fees relate to matters such as contract review, business acquisitions, regulatory filings, patent maintenance, and general legal, accounting and auditing fees.
Going Concern
Our financial statements for the quarter ended September 30, 2023 have been prepared on a going concern basis.
The assessment of the liquidity and going concern requires the Company to make judgments about the existence of conditions or events that raise substantial doubt about the ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. This includes judgments about the Company’s future activities and the timing thereof and estimates of future cash flows. Significant assumptions used in the Company’s forecasted model of liquidity include forecasted sales, costs, and capital expenditures. Changes in the assumptions could have a material impact on the forecasted liquidity and going concern assessment.
8
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.
Critical Accounting Estimates
The preparation of these consolidated financial statements in conformity with United States Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Our company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by our company may differ materially and adversely from our company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Accounting estimates and assumptions discussed in this section are those that we consider to be the most critical to an understanding of our financial statements because they inherently involve significant judgments and uncertainties.
Impairment of Long-lived Assets
We review long-lived assets such as property and equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. The determination of whether impairment indicators exist requires significant judgment in evaluating underlying significant assumptions including expected sales contracts, operating costs, and current market value of assets. If an indication is identified, and the total of the expected undiscounted future cash flows is less than the carrying amount of the asset, a loss is recognized for the excess of the carrying amount over the fair value of the asset.
Revenue Recognition
We account for revenue under ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the five step approach. The most significant estimates and assumptions within the five-step approach are related to identification of performance obligations in the contract and the calculations inherent in the revenue recognition as or when performance obligations are satisfied.
Our marine scrubber sales contracts contain a single performance obligation satisfied over time, based on percentage of completion of the contract. The conclusion for a single performance obligation is based on management’s assessment of these contracts, whereby customers purchase the entire marine scrubber system and do not benefit from the separate components on their own. Revenue is recognized over time based on the percentage of completion of the contract, using the input method.
9
According to ASC 606-10-25-27, if the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date, revenue should be recognized over time. Our scrubber system is customized to each vessel at the detailed design level, so the performance under the contract does not create an asset with an alternative use. According to our contracts signed with customers under English law, the customers are contractually and legally obliged to pay for performance completed to date that covers cost plus a reasonable profit margin. Therefore, the revenue is recognized over time based on the input method and it is the change in cost of goods sold (using a percentage of costs to complete) that has driven the change in revenues. Significant estimates are involved in using the input method as it relates to estimation of total costs and overall gross margins, and any change in these factors could lead to a difference in timing or amount of revenue and profit.
Revenue from services includes specific services provided to marine scrubber systems as well as design and engineering services for Concentrated Solar Power. Contracts for specific services provided to marine scrubber systems represent maintenance services. Contracts for Concentrated Solar Power include design and engineering services provided to clients. Revenue for service contracts is recognized as the services are provided at a point in time.
Any changes to our conclusions around single or multiple performance obligations for either or products or services could result in a timing difference in our revenue recognition. For example, in 2022 we re-assessed our contracts for the sale of marine scrubbers and determined there was only one performance obligation, which had previously been recognized as three distinct performance obligations. As a result, we restated the March 31, 2021 financial statements, with adjustments to revenue, accrued revenue, and prepaid manufacturing costs. Additionally, we have one contract with a significant financing component, where assumptions and estimates are made to separate the financing from revenue and record interest. Any changes in the discount rate or payment schedules could impact the timing of revenue recognized.
Following the sale of the REP project to Sosteneo in June 2023, the Company has implemented a new strategy of originating, developing and selling battery energy storage systems (BESS) projects, as opposed to the prior policy of developing and owning such projects. Under the new strategy, the Company has identified the following income streams from BESS projects:
Sale of Projects (Including Sales of Ownership Interests in Project Companies). Projects are sold prior to becoming operational, do not contain a workforce, and are non-financial assets. Accordingly, since the change in strategy, the sale of BESS projects falls under the scope of ASC 610-20. net proceeds from sale of projects are recognized as revenue on the transfer of control to the buyer.
Under the new strategy, project assets and liabilities are not being held as long-term assets of the company, and are expected to be sold within 12 months. As a result, balances in consolidated BESS project entities are included in the appropriate balance sheet line items, instead of assets held for sale. Project costs incurred prior to sale are capitalized as projects under development within current assets, and associated project financing liabilities are capitalized as separately identified loans, in liabilities of projects under development within current liabilities.
10
Warranty Provision
The Company reserves a 2% warranty provision on the completion of a contract following the commissioning of marine scrubbers. The specific terms and conditions of those warranties vary depending upon the product sold and geography of sale. The Company’s product warranties generally start from the commissioning date and continue for up to twelve to twenty-four months. The Company provides warranties to customers for the design, materials, and installation of scrubber units. The Company has a back-to-back manufacturing guarantee from its major supplier, which covers materials, production, and installation. Factors that affect the Company’s warranty obligation include product failure rates, anticipated hours of product operations and costs of repair or replacement in correcting product failures. These factors are estimates that may change based on new information that becomes available each period. Similarly, the Company also accrues the estimated costs to address reliability repairs on products no longer in warranty when, in the Company’s judgment, and in accordance with a specific plan developed by the Company, it is prudent to provide such repairs. The Company intends to assess the adequacy of recorded warranty liabilities quarterly and adjusts the liability as necessary.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As a “smaller reporting company”, we are not required to provide the information required by this Item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation (pursuant to Rule 13a-15(b) of the Exchange Act) of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Exchange Act as of September 30, 2023.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2023.
11
Management’s Report on Internal Control Over Financial Reporting
Our management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with United States Generally Accepted Accounting Principles. Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with United States Generally Accepted Accounting Principles , and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of March 31, 2023, based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013 framework). Based on this evaluation our Chief Executive Officer and Chief Financial Officer have concluded that as of March 31, 2023, the Company has maintained effective internal control over financial reporting.
This Quarter Report on Form 10-Q does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting pursuant to an exemption for non-accelerated filers from the internal control audit requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002.
Changes in Internal Control over Financial Reporting
There has been no significant change in the Company’s internal control over financial reporting during the quarter ended September 30, 2023, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
12
PART II– OTHER INFORMATION
Item 1. Legal Proceedings
We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
Item 1A. Risk Factors
As a “smaller reporting company” we are not required to provide the information required by this Item.
Item 2. Unregistered Sales of Equity Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits
| (31) | Rule 13a-14 (d)/15d-14d) Certifications | |
| 31.1* | Section 302 Certification by the Principal Executive Officer | |
| 31.2* | Section 302 Certification by the Principal Financial Officer and Principal Accounting Officer | |
| (32) | Section 1350 Certifications | |
| 32.1* | Section 906 Certification by the Principal Executive Officer | |
| 32.2* | Section 906 Certification by the Principal Financial Officer and Principal Accounting Officer | |
| 101* | Interactive Data Files | |
| 101.INS* | Inline XBRL Instance Document. | |
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| * | Filed herewith. |
13
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| PACIFIC GREEN TECHNOLOGIES INC. | ||
| (Registrant) | ||
| Dated: November 14, 2023 | By: | /s/ Scott Poulter |
| Scott Poulter | ||
| Chief Executive Officer and Director | ||
| (Principal Executive Officer) | ||
| Dated: November 14, 2023 | By: | /s/ James Tindal Robertson |
| James Tindal-Robertson | ||
|
Chief Financial Officer (Principal Financial Officer and | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Dated: November 14, 2023 | By: | /s/ Scott Poulter |
| Scott Poulter | ||
| Chief Executive Officer and Director | ||
| (Principal Executive Officer) | ||
| Dated: November 14, 2023 | By: | /s/ James Tindal-Robertson |
| James Tindal-Robertson | ||
|
Chief Financial Officer (Principal Financial Officer and |
14
Exhibit 31.1
CERTIFICATION PURSUANT TO
18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Scott Poulter, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q for September 30, 2023 of Pacific Green Technologies Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 14, 2023
| /s/ Scott Poulter | |
| Scott Poulter | |
| Chief Executive Officer and Director | |
| (Principal Executive Officer) | |
| Pacific Green Technologies Inc. |
Exhibit 31.2
CERTIFICATION PURSUANT TO
18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, James Tindal-Robertson, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q for September 30, 2023 of Pacific Green Technologies Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 14, 2023
| /s/ James Tindal-Robertson | |
| James Tindal-Robertson | |
| Chief Financial Officer | |
| (Principal Financial Officer and Principal Accounting Officer) | |
| Pacific Green Technologies Inc. |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Scott Poulter, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | the Quarterly Report on Form 10-Q of Pacific Green Technologies Inc. for the period ended September 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| (2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Pacific Green Technologies Inc. |
| Dated: November 14, 2023 | /s/ Scott Poulter |
| Scott Poulter | |
| Chief
Executive Officer and Director (Principal Executive Officer) | |
| Pacific Green Technologies Inc. |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Pacific Green Technologies Inc. and will be retained by Pacific Green Technologies Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, James Tindal-Robertson, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | the Quarterly Report on Form 10-Q of Pacific Green Technologies Inc. for the period ended September 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| (2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Pacific Green Technologies Inc. |
| Dated: November 14, 2023 | /s/ James Tindal-Robertson |
| James Tindal-Robertson | |
| Chief
Financial Officer (Principal Financial Officer and Principal Accounting Officer) | |
| Pacific Green Technologies Inc. |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Pacific Green Technologies Inc. and will be retained by Pacific Green Technologies Inc. and furnished to the Securities and Exchange Commission or its staff upon request.
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parentheticals) - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Net of allowance for doubtful account (in Dollars) | $ 51,445 | $ 97,640 |
| Other receivable for doubtful account (in Dollars) | $ 3,951 | |
| Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued | ||
| Preferred stock, shares outstanding | ||
| Common stock, shares authorized | 500,000,000 | 500,000,000 |
| Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares issued | 52,220,724 | 47,276,886 |
| Common stock, shares outstanding | 52,220,724 | 47,276,886 |
| Treasury stock, shares | 56,162 |
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||
| Sales (Note 11) | ||||||
| Total revenues | $ 1,164,989 | $ 1,195,353 | $ 2,353,827 | $ 3,219,229 | ||
| Cost of goods sold (Note 11) | ||||||
| Total cost of goods sold | 1,600,034 | 1,054,680 | 2,817,797 | 2,283,223 | ||
| Gross profit / (loss) | (435,045) | 140,673 | (463,970) | 936,006 | ||
| Expenses | ||||||
| Advertising and promotion | 98,833 | 158,406 | 202,983 | 301,673 | ||
| Amortization of intangible assets (Note 7) | 626 | 662 | 1,305 | 1,350 | ||
| Bad debts expense / (recovery) | 44,747 | (46,534) | 56,224 | (46,534) | ||
| Depreciation (Note 6) | 38,295 | 49,487 | 75,415 | 103,071 | ||
| Foreign exchange loss / (gain) | 251,827 | (393,375) | 1,064,199 | 104,321 | ||
| Management and technical consulting | 4,052,668 | 315,240 | 9,283,918 | 1,304,324 | ||
| Office and miscellaneous | 520,908 | 527,307 | 954,402 | 990,076 | ||
| Operating lease expense (Note 18) | 93,436 | 99,253 | 217,359 | 208,990 | ||
| Professional fees | 227,143 | 460,635 | 263,157 | 747,660 | ||
| Research and development | 112,144 | 144,341 | 13,772 | |||
| Salaries and wage expenses | 1,546,262 | 1,065,710 | 2,443,270 | 2,048,624 | ||
| Transfer agent and filing fees | 20,592 | 17,043 | 36,326 | 30,797 | ||
| Travel and accommodation | 118,394 | 208,463 | 237,752 | 399,230 | ||
| Warranty and related expense / (recovery) (Note 14) | (35,320) | 181,600 | ||||
| Total expenses | 7,125,875 | 2,462,297 | 14,945,331 | 6,388,954 | ||
| Income (loss) before other income (expense) | (7,560,920) | (2,321,624) | (15,409,301) | (5,452,948) | ||
| Other income / (expenses) | ||||||
| Financing interest income | 5 | 10,031 | 1,044 | 56,300 | ||
| Gain on derecognition of a subsidiary | 5,503,794 | 17,622,891 | ||||
| Interest expense | (712,383) | (39,360) | (2,021,353) | (77,711) | ||
| Total other (expense) / income | 4,791,416 | (29,329) | 15,602,582 | (21,411) | ||
| Net (loss)/ income for the period before noncontrolling interest | (2,769,504) | (2,350,953) | 193,281 | (5,474,359) | ||
| Net (loss)/ income attributable to noncontrolling interest (Note 10) | (33,386) | (109,082) | (358,840) | 26,742 | ||
| Net (loss)/ income for the period | (2,736,118) | (2,241,871) | 552,121 | (5,501,101) | ||
| Other comprehensive income | ||||||
| Foreign currency translation gain / (loss) | 425,974 | 202,891 | 581,881 | (181,944) | ||
| Comprehensive (loss)/ income for the period | $ (2,310,144) | $ (2,038,980) | $ 1,134,002 | $ (5,683,045) | ||
| Net income per share, basic (in Dollars per share) | $ (0.06) | $ (0.05) | $ 0 | $ (0.12) | ||
| Weight average number of common shares outstanding, basic (in Shares) | [1] | 49,686,872 | 47,339,386 | 51,697,028 | 47,339,386 | |
| Weight average number of dilutive shares outstanding, diluted (in Shares) | 49,686,872 | 47,339,386 | 51,698,070 | 47,339,386 | ||
| Products | ||||||
| Sales (Note 11) | ||||||
| Total revenues | $ 699,289 | $ 2,354,447 | ||||
| Cost of goods sold (Note 11) | ||||||
| Total cost of goods sold | 251,831 | 713,040 | 443,687 | 1,700,247 | ||
| Services | ||||||
| Sales (Note 11) | ||||||
| Total revenues | 1,164,989 | 496,064 | 2,353,827 | 864,782 | ||
| Cost of goods sold (Note 11) | ||||||
| Total cost of goods sold | $ 1,348,203 | $ 341,640 | $ 2,374,110 | $ 582,976 | ||
| ||||||
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - $ / shares |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Income Statement [Abstract] | ||||
| Net income per share, diluted (in Dollars per share) | $ (0.05) | $ (0.05) | $ (0.01) | $ (0.12) |
Condensed Consolidated Interim Statements of Stockholders Equity (Unaudited) - USD ($) |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income |
Treasury Stock |
Noncontrolling Interest |
Deficit |
Total |
|---|---|---|---|---|---|---|---|
| Balance at Mar. 31, 2022 | $ 47,027 | $ 92,429,203 | $ 2,035,666 | $ (99,754) | $ 10,361,701 | $ (85,530,306) | $ 19,243,537 |
| Balance (in Shares) at Mar. 31, 2022 | 47,026,886 | ||||||
| Fair value of options granted | 17,718 | 17,718 | |||||
| Noncontrolling interest | 67,571 | 67,571 | |||||
| Foreign exchange translation gain/ (loss) | (384,835) | (384,835) | |||||
| Net Profit (loss) for the period | (3,259,230) | (3,259,230) | |||||
| Balance at Jun. 30, 2022 | $ 47,027 | 92,446,921 | 1,650,831 | (99,754) | 10,429,272 | (88,789,536) | 15,684,761 |
| Balance (in Shares) at Jun. 30, 2022 | 47,026,886 | ||||||
| Fair value of options granted | 9,194 | 9,194 | |||||
| Noncontrolling interest | 5,737,809 | 5,737,809 | |||||
| Foreign exchange translation gain/ (loss) | 202,891 | 202,891 | |||||
| Net Profit (loss) for the period | (2,241,871) | (2,241,871) | |||||
| Balance at Sep. 30, 2022 | $ 47,027 | 92,456,115 | 1,853,722 | (99,754) | 16,167,081 | (91,031,407) | 19,392,784 |
| Balance (in Shares) at Sep. 30, 2022 | 47,026,886 | ||||||
| Balance at Mar. 31, 2023 | $ 47,277 | 93,107,946 | 2,944,086 | (99,754) | 15,663,675 | (96,847,650) | 14,815,580 |
| Balance (in Shares) at Mar. 31, 2023 | 47,276,886 | ||||||
| Shares issued for employee services | $ 2,750 | 1,509,750 | 1,512,500 | ||||
| Shares issued for employee services (in Shares) | 2,750,000 | ||||||
| Cancellation of treasury stock | $ (56) | (99,698) | 99,754 | ||||
| Cancellation of treasury stock (in Shares) | (56,162) | ||||||
| Elimination of Noncontrolling interest | (15,590,191) | (15,590,191) | |||||
| Transfer | 103,257 | (103,257) | |||||
| Foreign exchange translation gain/ (loss) | 155,907 | 155,907 | |||||
| Net Profit (loss) for the period | (325,454) | 3,288,239 | 2,962,785 | ||||
| Balance at Jun. 30, 2023 | $ 49,971 | 94,517,998 | 3,099,993 | (148,713) | (93,662,668) | 3,856,581 | |
| Balance (in Shares) at Jun. 30, 2023 | 49,970,724 | ||||||
| Shares issued for employee services | $ 2,250 | 1,370,250 | 1,372,500 | ||||
| Shares issued for employee services (in Shares) | 2,250,000 | ||||||
| Fair value of options granted | 17,291 | 17,291 | |||||
| Noncontrolling interest | 976,398 | 976,398 | |||||
| Foreign exchange translation gain/ (loss) | 425,974 | 425,974 | |||||
| Net Profit (loss) for the period | (2,736,118) | (2,736,118) | |||||
| Balance at Sep. 30, 2023 | $ 52,221 | $ 95,905,539 | $ 3,525,967 | $ 827,685 | $ (96,398,786) | $ 3,912,626 | |
| Balance (in Shares) at Sep. 30, 2023 | 52,220,724 |
Nature of Operations |
6 Months Ended | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||
| Nature of Operations [Abstract] | ||||||||||||||||||
| Nature of Operations |
Pacific Green Technologies Inc. (the “Company”) was incorporated in the state of Delaware, USA on March 10, 1994. The Company is in the business of acquiring, developing, and marketing environmental technologies, with a focus on battery energy storage systems and emission control technologies.
The condensed consolidated interim financial statements of the Company should be read in conjunction with the consolidated financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023. In the opinion of management, the accompanying condensed consolidated interim financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.
The preparation of these condensed consolidated interim financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.
Following the sale of the REP project to Sosteneo, the Company has modified its BESS (“Battery Energy Storage Systems”) strategy of originating, developing and owning BESS projects, to a strategy of originating, developing and selling BESS projects. Under the new strategy, the Company expects income streams from BESS projects to include the following:
As discussed in the Critical Accounting Estimates section of Management’s Discussion and Analysis of Financial Condition and Results of Operations, the sale of BESS projects falls under the scope of ASC 610-20, and net proceeds from sale of projects are recognized as revenue on the transfer of control to the buyer.
Under the new strategy, project assets and liabilities are not being held as long-term assets of the company, and are expected to be sold within 12 months. As a result, balances in consolidated BESS project entities are included in the appropriate balance sheet line items, instead of assets held for sale. Project costs incurred prior to sale are capitalized as projects under development within current assets, and associated project financing liabilities are capitalized as separately identified loans, in liabilities of projects under development within current liabilities. |
Significant Accounting Policies |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and are expressed in U.S. dollars. The accounting policies are consistently applied in the preparation of the consolidated financial statements. These consolidated financial statements include the accounts of the Company and the following entities:
All inter-company balances and transactions have been eliminated upon consolidation.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. As a smaller reporting company, this ASU is effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. The Company calculated an effect of $51,000 upon adoption of this guidance on April 1, 2023. Given the immaterial nature of the effect, the adoption was booked as an expense in the current period statement of income rather than a cumulative effect through retained earnings.
The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and management does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Short-Term Investments and Amounts in Escrow |
6 Months Ended | ||
|---|---|---|---|
Sep. 30, 2023 | |||
| Short-Term Investments and Amounts in Escrow [Abstract] | |||
| Short-term Investments and Amounts in Escrow |
At September 30, 2023, the Company has a $ (March 31, 2023 - $56,483) Guaranteed Investment Certificate (“GIC”) held as security against a corporate credit card. The GIC bore interest at 0.5% per annum and matures on December 13, 2023. The account was closed on May 30, 2023
At September 30, 2023, the Company’s solicitor is holding $ (March 31, 2023 – $) as all the proceeds under customer contracts has been released after satisfying performance obligations. |
Assets Held for Sale |
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| Assets Held for Sale [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets held for Sale |
As at September 30, 2023, the Company has reallocated $13.6 million of assets and $10.6 million liabilities, primarily related to the Sheaf project, from assets held for sale to projects under development in current assets, due to the change in business strategy from investing in BESS projects to develop, own and operate, to the strategy of developing and selling the projects.
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Projects Under Development |
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| Projects Under Development [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Projects Under Development |
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Property and Equipment |
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| Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment |
For the three and six months ended September 30, 2023, the Company recorded $38,295 (2022 $49,487) and $75,415 (2022 – $103,071) in depreciation expense on property and equipment. |
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Intangible Assets |
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| Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets |
For the three and six months ended September 30, 2023, the Company recorded $237,199 (2022 – $220,029) and $490,672 (2022 – $440,084) in amortization expense on intangible assets.
For the three and six months ended September 30, 2023, the Company has allocated $236,573 (2022 - $219,367) and $489,367 (2022 - $438,734) of amortization of patents and technical information to cost of goods sold. The amount remaining in amortization expense is $626 (2022 - $688) and $1,305 (2022 - $1,350) for the three and six months ended September 30, 2023.
Future amortization of intangible assets is as follows based on fiscal year:
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Acquisitions |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||
| Acquisitions [Abstract] | |||||||
| Acquisitions |
On December 6, 2022, the Company acquired all the issued and outstanding stock of Sheaf Energy Ltd., a United Kingdom company in the business of battery energy storage systems. The purchase consideration included cash payments of a deposit of $415,855 (£373,500) made on July 26, 2021 and $8,710,145 (£7,126,500) made on December 15, 2022.
Total purchase consideration was therefore $9,126,000 (£7,500,000). The value attributed to the identifiable assets acquired and liabilities assumed are net working capital of $0, and project under development of $9,126,000 (£7,500,000).
On September 27 2023, the Company through its indirectly wholly owned subsidiary, Pacific Green Energy Parks (Italia) S.r.l. (“EPI”) purchased 51% of the capital in Sphera Australe S.r.l., Sphera Levante S.r.l., Sphera Ponente S.r.l., and Sphera Boreale S.r.l. (the “Italy Project Companies”) from Sphera Energy S.r.l. (“Sphera”). Sphera established the Italy Project Companies for the development of five BESS projects in Italy.
The Company paid Sphera €1.0 million ($1.06 million) on the closing date for a 51% interest in the Italy Project Companies. The Company also made a partial advance of €2.0 million ($2.01 million) against its purchase of the remaining 49% of the capital of the Italy Project Companies on the closing date and a further €0.3 million ($0.35 million) to pay off the liabilities held in the Italy Project Companies to its shareholders.
The total consideration recognized of €3.36 million ($3.42 million) is attributed between net working capital of $, projects under development representing the rights acquired of $2.42 million and investment advance treated as a non-current asset of $2.01 million. A noncontrolling interest of $1.01 million has been recorded in relation to the 49% not held by the Company.
Under the terms of the purchase agreement, the Company agreed to advance Sphera a further €2.0 million upon the filing of the application for a license from the Ministry for the Environment and Energy Security (“MASE”).
The Company has also agreed to acquire the remaining 49% capital in each of the Italy Project Companies upon achievement of ready to build status. The purchase price for the remaining capital in each Project Company will be equal to the difference between €55,500 per MW installable and authorized under the license and €200,000 less €2,000 per MW installable.
The Company has also signed development service agreements for the Italian Project Companies with Sphera. |
Disposals |
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| Disposals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disposals |
On June 9, 2023, Pacific Green Energy Storage (UK) Ltd (“PGES”) and Green Power Reserves Ltd (“GPR”), a third party investor entered into a sale and purchase agreement to sell their 50% controlling interest and 50% nonredeemable noncontrolling interest respectively in BEP1 and its fully owned subsidiary, Richborough Energy Park Ltd (“REP”), (together, “REP Project”) to Sosteneo Fund 1 Holdco Sarl (“Sosteneo”). The disposal became unconditional on June 26, 2023.
The purchase price paid by Sosteneo to PGES (UK) and GPR consisted of £29.9 million ($37.4 million) in initial consideration and an additional £15.1 million ($18.9 million) in performance milestone payments upon successful completion and operations of the BESS projects.
As a result of the sale, the Company recognized a net gain on disposal of $12.1million during the quarter ended June 30, 2023. As the sale of REP Project did not represent a strategic shift that would have a major effect on the Company’s operations or financial results, REP and PGBEP 1are not presented as a discontinued operation. The net income of REP and PGBEP 1 is included in the consolidated statement of operations through the June 26, 2023, disposal date. The assets, liabilities and equity (including non-controlling interest) of PGBEP 1 were deconsolidated effective June 26, 2023.
No gain was recorded in relation to the prospective milestone payments in the prior quarter, as it was considered that the Company did not have the information needed to reasonably estimate whether or not performance milestones will be met.
In the current quarter, following the change in strategy of the Company from developing and operating BESS projects to developing and selling BESS projects, and further development of project management and execution capabilities, the Company has re-evaluated the performance milestones.
Of the £15.1 million ($19.0 million) gross deferred consideration, a reduction of £1.75 million ($2.2 million) has been reserved for negotiated and anticipated changes to the total milestone payments. After deduction of 1.2% agent fees and 49.4% share of the minority investor, this gives a total projected receivable of £6.7 million ($8.4 million). Offsetting this are actual liquidated damages of £285,000 ($360,000) (38 days at £7,500 per day) incurred on REP2 battery system and £100,000 ($126,000) (8 days at £12,500 per day) are estimated on REP1 battery system.
Following a review of the milestones included within this total net anticipated revenue £6.5 million ($8.3 million), milestones with value of £4.3 million ($5.4 million) have been assessed as not being at risk of reversal in future reporting periods and have been recorded as gain on disposal in the current quarter. Level of confidence of meeting remaining milestones that have not yet been recorded as gain on disposal will be re-assessed in future reporting periods.
The Company also incurred £0.3 million ($0.4 million) of legal fees and £0.4 million ($0.5 million) of broker fees related to the sale.
The gain on sale of PGBEP 1 shares is calculated as follows:
In addition to the derecognition of the balances sold and recognition of the gain on sale of subsidiary, the SPA also includes certain contingent assets and liabilities which were not recorded in the statement of financial position as at June 30, 2023, due to their remote nature.
On November 02, 2023, the Company reached financial close on a £120 million (US$146 million) senior debt facility provided to Sheaf Energy Ltd by National Westminster Bank plc (“NatWest”) and UK Infrastructure Bank Limited (“UKIB”), contributing £60 million ($73 million) each. The facility will be used to fund the development and construction of Sheaf Energy Park, following which repayment will occur on a 10-year amortization profile upon the start of commercial operations.
Also on November 02, 2023, the Company entered into a transaction committing to sell 100% of the shares in Pacific Green Battery Energy Parks 2 Limited (“PGBEP2”) and its 100% subsidiary, Sheaf Energy Limited, to Sosteneo Fund 1 HoldCo S.à.r.l. (“Sosteneo”) for £210 million ($ 257 million).
Under the terms of the transaction, the Company and Sosteneo have granted each other respective options to buy or sell the shares in PGBEP2. As part of the transaction, Sosteneo will provide a £70 million ($85 million) capital expenditure loan facility to PGBEP2, which together with the senior debt facility, will fully fund the development and construction of Sheaf Energy Park. Conditions precedent to exercising the options are expected to be fulfilled within 90 days of the transaction.
Under the terms of the transaction, the Company has received a deposit of £12.2 million ($14.9 million) less legal fees of £0.3 million ($0.4 million). Post financial close, the Company is entitled to receive further deferred consideration upon achieving certain construction milestones, being milestone 1: £7.26 million ($8.9 million) on BESS delivery to site, milestone 2: £4.96 million ($6.1 million) upon reaching commercial operation date prior to March 2026, and milestone 3: £1.3 million ($1.6 million) upon receipt of a land remediation tax credit of this amount. The Company is liable for an 18% profit share fee to Sheaf Storage Ltd, payable following receipt of each element of sale proceeds.
As part of the transaction, the Company also received a £3.75 million ($4.6 million ) advance payment of a construction management fee, a £1.64 million ($2.0 million ) repayment of an intercompany loan balance, and settlement of the $9.26 million (£7.5 million) loan principal and $2.3 million (£1.9 million) 25% repayment fee from PGBEPS2 to Sheaf Storage Ltd, a third party. |
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Noncontrolling Interest |
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| Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest |
On December 2, 2020, the Company signed a Joint-Venture Agreement with Amr Khashoggi Trading Company Limited (“Amkest Group”) to incorporate a company in the Kingdom of Saudi Arabia for the sale of Pacific Green’s environmental technologies within the region. The Company holds 70% interest in the joint venture.
Between March 2022 and September 2022, Green Power Reserves Limited (“GPR”) made an equity investment of a total $16.0 million (£13.0 million) for a fifty percent shareholding in Pacific Green Battery Energy Parks 1 Limited (“BEP1”), and its fully owned subsidiary, Richborough Energy Park Ltd (“REP”) (together: “REP Project”). The Company retained control over BEP1 by virtue of holding 65% of the voting rights and appointing two of the three directors.
On September 27, 2023, the Company purchased 51% of the capital of four Italy Project Companies from Sphera. The Company paid Sphera €1.0 million ($1.06 million) and recorded noncontrolling interest of €0.96 million ($1.01 million) on the €1.96 million ($2.07 million) gross capitalized asset value.
Details of the carrying amount of the noncontrolling interests are as follows:
During the period September 30, 2023, Net income attributable to noncontrolling interest was ($) split as follows; Net income attributable to noncontrolling interest (BESS) was ($298,418) and ($60,423) was attributable to non-controlling interest (JV). |
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Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities |
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| Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities |
The Company derives revenue from the sale of products, delivery of services. Revenue disaggregated by type for the three and six months ended September 30, 2023, and 2022 is as follows:
Revenue from services include specific services provided to marine scrubber systems as well as design and engineering services for Concentrated Solar Power. Contracts for specific services provided to marine scrubber systems represent maintenance services. Contracts for Concentrated Solar Power include design and engineering services provided to clients. Revenue for Marine service contracts is recognized as the services are provided.
Service revenue by type for the three and six months ended September 30, 2023, and 2022 is as follows:
The Company has analyzed its sales contracts under ASC 606 and has identified that the percentage of completion of the contract often is not directly correlated with contractual billing terms with customers. As a result of the timing differences between customer sales invoices and percentage of completion of the contract, contractual assets and contractual liabilities have been recognized.
As of September 30, 2023, Contract liabilities included $8,038,674 (March 31, 2023 - $8,038,674) aggregate cash receipts from one customer relating to thirteen vessels.
Changes in the Company’s contract assets and liabilities for the periods are noted as below:
Cost of goods sold for the period ended September 30, 2023 and 2022 is comprised as follows:
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Accounts Payable and Accrued Liabilities |
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| Accounts payable and accrued liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable and accrued liabilities |
Accrued liabilities include $0.2 million related to anticipated losses required to be incurred to complete the REP construction management agreement until December 2023. |
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Loans Payable |
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| Loans Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Payable |
On December 15, 2022, the Company signed a Loan Agreement with Sheaf Storage Limited, for a total of $9,261,789 (£7,500,000) for the acquisition of Sheaf Energy Ltd. The loan is secured on a share pledge over the entire share capital of Sheaf Energy Limited. The loan had a repayment date of September 15, 2023, with a fixed repayment fee of 20%. The lender was entitled to 8% of the net equity proceeds received by the Company from the sale of Sheaf Energy Ltd.
On September 14, 2023, the Company signed an addendum to the Loan Agreement, extending the term of the loan to be repayable on November 15, 2023, with revised repayment fee of 25% due and payable on repayment. Upon the sale of Sheaf Energy Ltd, the lender is entitled to 18% of the net equity proceeds received by the Company.
On September 20, 2023, the Company entered into seven separate loan agreements under English law and one under US Law with seven independent third party lenders for a total of £1,050,000 and $2,500,000 (total equivalent $3,782,000), to provide additional short-term working capital to the Company in funding BESS projects. The loans have identical terms.
Each loan is split into two equal tranches and in the absence of a prior liquidity event, is repayable on March 20, 2024, or has a longstop date of June 20, 2024. Tranche 1 liquidity event occurs when the Company receives net funds in excess of £4 million from the disposal of Sheaf Project, and results in a repayment of Tranche 1 principal plus a repayment fee of 20%. Tranche 2 liquidity event occurs when the Company receives deferred consideration due on reaching commercial operation under the REP sale and purchase agreement, and results in a repayment of Tranche 2 principal plus a repayment fee of 25% of Tranche 2. The loans do not bear other interest apart from the “Repayment Fee”. In the event of default, the lender can elect to convert up to 100% of amounts outstanding (including any unpaid repayment fee due) to the equivalent value of ordinary shares in the Company at 1.5x the Default Conversion Strike Price (defined as 0.7x the Company’s average share price on the 10 business days before and after the Repayment Date).
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Warranty Costs |
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| Warranty Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranty costs |
During the three and six months ended September 30, 2023, the Company recorded a non-cash warranty recovery of $ (2022 - $ ) and $35,320 ($23,500 credited to warranty provision on the commission of one vessel, offset by a recovery from a supplier of $58,820 debited to accounts payable and accrued liabilities) (2022 - $181,600). The Company provides warranties to customers for the design, materials, and installation of scrubber units. Product warranty is recorded at the time of sale and will be revised based on new information as system performance data becomes available.
A summary of the changes in the warranty costs is shown below:
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Related Party Transactions |
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| Related Party Transactions [Abstract] | ||||||||||||||||||
| Related Party Transactions |
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Stock Options |
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| Stock Options [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Options |
The following table summarizes the continuity of stock options:
Additional information regarding stock options outstanding as at September 30, 2023 is as follows:
Unless otherwise noted, the Company estimates the fair value of its stock options using the Black-Scholes option pricing model, assuming no expected dividends, applying a risk-free interest rate of 4.54%, average expected life of 3.5 years and expected volatility 122%.
The estimated fair value of the stock options is recorded over the requisite period to vesting. For the three and six months ended September 30, 2023, the fair value of $17,290 (2022 - $9,194) and $17,290 (2022 – 26,912) was recorded as salaries expense. |
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Segmented Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segmented Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segmented Information |
The Company is located and operates in North America and its subsidiaries are primarily located and operating in Europe, Asia, and South America.
For the three and six months ended September 30, 2023, 36% (2022 – 59%) and 36% (2022 – 61%) of the Company’s revenues were derived from the largest customer. |
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Commitments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments |
Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating leases do not contain an option to extend or terminate the lease term at the Company’s discretion, therefore no probable renewal has been added to the expiry date when determining lease term. Operating lease expense is recognized on a straight-line basis over the lease term.
Lease cost for the three and six months are summarized as follows:
The Company has entered into premises lease agreements with minimum annual lease payments expected over the remaining three fiscal years of the lease as follows:
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Income Taxes |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes |
The majority of our revenues from international sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as opposed to a foreign jurisdiction. The components of income before income taxes by U.S. and foreign jurisdictions were as follows:
The following table reconciles the income tax expense (benefit) at the statutory rates to the income tax (benefit) at the Company’s effective tax rate.
At September 30, 2023, the Company is current with statutory corporate income tax filings. Certain of the amounts presented above are based on estimates and what management believes are prudent filing positions. The actual losses available could differ from these estimates upon assessment and review by taxation authorities. U.S. federal and state income tax returns filed by us remain subject to examination for income tax years 2014 and subsequent. Canadian federal and provincial income tax returns filed by us remain subject to examination for income tax years 2019 and subsequent. Income tax returns associated with our operations located in the United Kingdom and China are subject to examination for income tax years 2018 and subsequent.
Tax positions are evaluated for recognition using a more-likely than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information.
The Company estimates that it has accumulated estimated net operating losses of approximately $19.7 million which were incurred mainly in the U.S, and which don’t begin to expire until 2033. In addition, the Company estimates that it has approximately $8.0 million in losses available in the United Kingdom. Historical losses in the U.S., are subject to limitations on use due to deemed changes in control for tax purposes. This impacts the timing and opportunity to use certain losses. |
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Subsequent Events |
6 Months Ended | ||
|---|---|---|---|
Sep. 30, 2023 | |||
| Subsequent Events [Abstract] | |||
| Subsequent events |
On November 02, 2023, the Company reached financial close on a £120 million (US$146 million) senior debt facility provided to Sheaf Energy Ltd by National Westminster Bank plc (“NatWest”) and UK Infrastructure Bank Limited (“UKIB”), contributing £60 million ($73 million) each. The facility will be used to fund the development and construction of Sheaf Energy Park, following which repayment will occur on a 10-year amortization profile upon the start of commercial operations.
Also on November 02, 2023, the Company entered into a transaction committing to sell 100% of the shares in Pacific Green Battery Energy Parks 2 Limited (“PGBEP2”) and its 100% subsidiary, Sheaf Energy Limited, to Sosteneo Fund 1 HoldCo S.à.r.l. (“Sosteneo”) for £210 million ($ 257 million).
Under the terms of the transaction, the Company and Sosteneo have granted each other respective options to buy or sell the shares in PGBEP2. As part of the transaction, Sosteneo will provide a £70 million ($85 million) capital expenditure loan facility to PGBEP2, which together with the senior debt facility, will fully fund the development and construction of Sheaf Energy Park. Conditions precedent to exercising the options are expected to be fulfilled within 90 days of the transaction. Under the terms of the transaction, the Company has received a deposit of £12.2 million ($14.9 million) less legal fees of £0.3 million ($0.4 million). Post financial close, the Company is entitled to receive further deferred consideration upon achieving certain construction milestones, being milestone 1: £7.26 million ($8.9 million) on BESS delivery to site, milestone 2: £4.96 million ($6.1 million) upon reaching commercial operation date prior to March 2026, and milestone 3: £1.3 million ($1.6 million) upon receipt of land remediation tax credit for the same amount. The Company is liable for an 18% profit share fee to Sheaf Storage Ltd, payable following receipt of each element of sale proceeds.
As part of the transaction, the Company also received a £3.75 million ($4.6 million) advance payment of a construction management fee, a £1.64 million ($2.0 million) repayment of an intercompany loan balance, and settlement of the $9.26 million (£7.5 million) loan principal and $2.3 million (£1.9 million) 25% repayment fee from PGBEPS2 to Sheaf Storage Ltd, a third party.
On October 16, 2023, the board of directors approved a performance-related bonus for Scott Poulter, Chief Executive Officer in relation to the commitment to the Sheaf project, which comprises 4,500,000 shares in the Company which are issuable immediately upon the commitment being made, and $3,664,000 (£3,000,000) in cash, of which $3,053,000 (£2,500,000) is payable immediately upon the commitment being made, and $611,000 (£500,000) is payable in monthly instalments over 24 months. |
Accounting Policies, by Policy (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation |
These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and are expressed in U.S. dollars. The accounting policies are consistently applied in the preparation of the consolidated financial statements. These consolidated financial statements include the accounts of the Company and the following entities:
All inter-company balances and transactions have been eliminated upon consolidation.
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| Recent Accounting Pronouncements |
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. As a smaller reporting company, this ASU is effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. The Company calculated an effect of $51,000 upon adoption of this guidance on April 1, 2023. Given the immaterial nature of the effect, the adoption was booked as an expense in the current period statement of income rather than a cumulative effect through retained earnings. The Company has implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and management does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Assets Held for Sale (Tables) |
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets Held for Sale [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Assets Held for Sale | As at September 30, 2023, the Company
has reallocated $13.6 million of assets and $10.6 million liabilities, primarily related to the Sheaf project, from assets held for sale
to projects under development in current assets, due to the change in business strategy from investing in BESS projects to develop, own
and operate, to the strategy of developing and selling the projects.
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Projects Under Development (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Projects Under Development [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Projects Under Development |
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Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment |
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Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets |
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| Schedule of Future Amortization of Intangible Assets | Future amortization of intangible assets
is as follows based on fiscal year:
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Disposals (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disposals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Gain on Sale | The gain on sale of PGBEP 1 shares is calculated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Noncontrolling Interests | Details of the carrying amount of the
noncontrolling interests are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenue from the Sale of Products, Delivery of Services | The Company derives revenue from the
sale of products, delivery of services. Revenue disaggregated by type for the three and six months ended September 30, 2023, and 2022
is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Service Revenue | Service revenue by type for the three
and six months ended September 30, 2023, and 2022 is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Assets and Liabilities | Changes in the Company’s contract assets and liabilities
for the periods are noted as below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cost of Goods Sold | Cost of goods sold for the period ended
September 30, 2023 and 2022 is comprised as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Accounts Payable And Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loans Payable | In the event of default, the lender
can elect to convert up to 100% of amounts outstanding (including any unpaid repayment fee due) to the equivalent value of ordinary shares
in the Company at 1.5x the Default Conversion Strike Price (defined as 0.7x the Company’s average share price on the 10 business
days before and after the Repayment Date).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranty Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in the Warranty Costs | A summary of the changes in the warranty costs is shown
below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Options [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Continuity of Stock Options | The following table summarizes the continuity of stock options:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Additional Information Regarding Stock Options Outstanding | Additional information regarding stock
options outstanding as at September 30, 2023 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segmented Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segmented Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Located and Operates | The Company is located and operates
in North America and its subsidiaries are primarily located and operating in Europe, Asia, and South America.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenues by Customer Region |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Assets are Categorized as Right of Use Assets | The Company’s subsidiaries have entered into two long-term operating leases for office premises in London, United Kingdom, and Shanghai, China. These lease assets are categorized as right of use assets under ASU No. 2016-02.
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Cost | Lease cost for the three and six months
are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Premises Lease Agreements With Minimum Annual Lease Payments | The Company has entered into premises lease agreements with
minimum annual lease payments expected over the remaining three fiscal years of the lease as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Income Before Income Taxes | The majority of our revenues from international
sales are invoiced from and collected by our U.S. entity and recognized as a component of income before taxes in the United States as
opposed to a foreign jurisdiction. The components of income before income taxes by U.S. and foreign jurisdictions were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income Tax Benefit at the Statutory Rates | The following table reconciles the
income tax expense (benefit) at the statutory rates to the income tax (benefit) at the Company’s effective tax rate.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Apr. 01, 2023 |
|
| Significant Accounting Policies [Line Items] | ||
| Owned subsidiary rate | 70.00% | |
| Effect of adoption amount (in Dollars) | $ 51,000 | |
| Sphera Australe [Member] | ||
| Significant Accounting Policies [Line Items] | ||
| Owned subsidiary rate | 51.00% | |
| Sphera Levante [Member] | ||
| Significant Accounting Policies [Line Items] | ||
| Owned subsidiary rate | 51.00% | |
| Sphera Ponente [Member] | ||
| Significant Accounting Policies [Line Items] | ||
| Owned subsidiary rate | 51.00% | |
| Sphera Boreale [Member] | ||
| Significant Accounting Policies [Line Items] | ||
| Owned subsidiary rate | 51.00% |
Short-Term Investments and Amounts in Escrow (Details) - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Short-Term Investments and Amounts in Escrow [Line Items] | ||
| GIC held as security | $ 56,483 | |
| Solicitor is holding | ||
| Guaranteed Investment Certificate [Member] | ||
| Short-Term Investments and Amounts in Escrow [Line Items] | ||
| GIC bears interest | 0.50% | |
| Guaranteed Investment Certificate [Member] | ||
| Short-Term Investments and Amounts in Escrow [Line Items] | ||
| GIC maturities | Dec. 13, 2023 |
Assets Held for Sale (Details) - BESS Projects [Member] $ in Millions |
Sep. 30, 2023
USD ($)
|
|---|---|
| Assets Held for Sale [Line Items] | |
| Reallocated assets | $ 13.6 |
| Reallocated liabilites | $ 10.6 |
Projects Under Development (Details) - Schedule of Projects Under Development |
3 Months Ended |
|---|---|
|
Sep. 30, 2023
USD ($)
| |
| BESS – SHEAF Project [Member] | |
| ASSETS | |
| Balance at July 01, 2023 | |
| Reclassifications | 10,003,789 |
| Additions | 2,603,690 |
| Disposals | |
| Balance at September 30, 2023 | 12,607,479 |
| BESS – Australian Projects [Member] | |
| ASSETS | |
| Balance at July 01, 2023 | |
| Reclassifications | 58,870 |
| Additions | 1,143,100 |
| Disposals | |
| Balance at September 30, 2023 | 1,201,970 |
| BESS – Italian Projects [Member] | |
| ASSETS | |
| Balance at July 01, 2023 | |
| Reclassifications | |
| Additions | 2,439,757 |
| Disposals | |
| Balance at September 30, 2023 | 2,439,757 |
| FOWE (Fuel Oil Water Emulsification) Development [Member] | |
| ASSETS | |
| Balance at July 01, 2023 | 53,648 |
| Reclassifications | |
| Additions | |
| Disposals | |
| Balance at September 30, 2023 | 53,648 |
| Total Projects Under Development (PUD) [Member] | |
| ASSETS | |
| Balance at July 01, 2023 | 53,648 |
| Reclassifications | 10,062,659 |
| Additions | 6,186,547 |
| Disposals | |
| Balance at September 30, 2023 | $ 16,302,854 |
Property and Equipment (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Property and Equipment [Abstract] | ||||
| Depreciation expense on property and equipment | $ 38,295 | $ 49,487 | $ 75,415 | $ 103,071 |
Property and Equipment (Details) - Schedule of Property and Equipment - Property and Equipment [Member] - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Schedule of property and equipment [Abstract] | ||
| Cost | $ 1,319,825 | |
| Accumulated depreciation | (559,802) | |
| Net carrying value | 760,023 | $ 849,209 |
| Building [Member] | ||
| Schedule of property and equipment [Abstract] | ||
| Cost | 895,066 | |
| Accumulated depreciation | (263,700) | |
| Net carrying value | 631,366 | 708,979 |
| Furniture and equipment [Member] | ||
| Schedule of property and equipment [Abstract] | ||
| Cost | 399,788 | |
| Accumulated depreciation | (272,804) | |
| Net carrying value | 126,983 | 137,352 |
| Computer equipment [Member] | ||
| Schedule of property and equipment [Abstract] | ||
| Cost | 15,008 | |
| Accumulated depreciation | (14,330) | |
| Net carrying value | 677 | 885 |
| Leasehold Improvements [Member] | ||
| Schedule of property and equipment [Abstract] | ||
| Cost | 9,963 | |
| Accumulated depreciation | (8,967) | |
| Net carrying value | $ 996 | $ 1,993 |
Intangible Assets (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Intangible Assets [Abstract] | ||||
| Amortization expense | $ 237,199 | $ 220,029 | $ 490,672 | $ 440,084 |
| Amortization of cost of goods sold | 236,573 | 219,367 | 489,367 | 438,734 |
| Amortization expense | $ 626 | $ 688 | $ 1,305 | $ 1,350 |
Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| Cost | $ 36,351,204 | |
| Accumulated amortization | (9,678,434) | |
| Cumulative impairment | (20,457,255) | |
| Net carrying value | 6,215,515 | $ 6,706,484 |
| Patents and technical information [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Cost | 36,340,057 | |
| Accumulated amortization | (9,671,247) | |
| Cumulative impairment | (20,457,255) | |
| Net carrying value | 6,211,555 | 6,700,921 |
| Software licensing [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Cost | 11,147 | |
| Accumulated amortization | (7,187) | |
| Cumulative impairment | ||
| Net carrying value | $ 3,960 | $ 5,563 |
Intangible Assets (Details) - Schedule of Future Amortization of Intangible Assets |
Sep. 30, 2023
USD ($)
|
|---|---|
| Schedule of future amortization of intangible assets [Abstract] | |
| 2024 | $ 948,971 |
| 2025 | 947,572 |
| 2026 | 946,291 |
| 2027 | 946,291 |
| 2028 | 946,291 |
| Thereafter | 1,480,099 |
| Total | $ 6,215,515 |
Acquisitions (Details) |
1 Months Ended | 6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
|
Dec. 15, 2022
USD ($)
|
Dec. 15, 2022
EUR (€)
|
Sep. 27, 2023 |
Jul. 26, 2021
USD ($)
|
Jul. 26, 2021
EUR (€)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
EUR (€)
|
Sep. 30, 2023
EUR (€)
|
|
| Acquisitions Line [Items] | ||||||||
| Cash payments | $ 8,710,145 | € 7,126,500 | $ 415,855 | € 373,500 | ||||
| Purchase consideration | $ 9,126,000 | € 7,500,000 | ||||||
| Working capital | ||||||||
| Project under development | 9,126,000 | € 7,500,000 | ||||||
| Purchased capital percentage | 51.00% | |||||||
| Partial advance amount | $ 2,010,000.00 | € 2,000,000 | ||||||
| Purchase capital percentage | 49.00% | 49.00% | ||||||
| Recognized amount | $ 3,420,000 | € 3,360,000 | ||||||
| investment | 2,420,000 | |||||||
| Non-current asset | $ 2,010,000.00 | |||||||
| Acquire remaining capital percentage | 49.00% | 49.00% | ||||||
| Purchase agreement amount (in Euro) | € | € 2,000,000 | |||||||
| Remaining capital amount (in Euro) | € | 55,500 | |||||||
| License amount (in Euro) | € | 2,000 | |||||||
| United Kingdom [Member] | ||||||||
| Acquisitions Line [Items] | ||||||||
| Working capital | $ 0 | |||||||
| BESS [Member] | ||||||||
| Acquisitions Line [Items] | ||||||||
| Paid amount | 1,060,000.00 | € 1,000,000 | ||||||
| Italy Project Companies [Member] | ||||||||
| Acquisitions Line [Items] | ||||||||
| Liabilities paid off | 350,000 | € 300,000 | ||||||
| Noncontrolling interest | $ 1,010,000.00 | |||||||
| Acquire remaining capital percentage | 49.00% | 49.00% | ||||||
| Pacific Green Energy Parks [Member] | ||||||||
| Acquisitions Line [Items] | ||||||||
| License amount (in Euro) | € | € 200,000 | |||||||
| Italy Project Companies [Member] | ||||||||
| Acquisitions Line [Items] | ||||||||
| Interest rate percentage | 51.00% | 51.00% | ||||||
Disposals (Details) |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
|
Nov. 02, 2023
USD ($)
|
Nov. 02, 2023
EUR (€)
|
Jun. 09, 2023 |
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
EUR (€)
|
Nov. 02, 2023
EUR (€)
|
Sep. 30, 2023
EUR (€)
|
|
| Disposals [Line Items] | |||||||
| Controlling interest percentage | 50.00% | ||||||
| Noncontrolling interest percentage | 50.00% | ||||||
| Purchase price | $ 37,400,000 | € 29,900,000 | |||||
| Net gain on disposal | 12,000,000 | ||||||
| Gross deferred consideration | 19,000,000 | 15,100,000 | |||||
| Milestone payments | $ 2,200,000 | € 1,750,000 | |||||
| Agent fees | 1.20% | 1.20% | |||||
| Minority interest rate | 49.40% | 49.40% | |||||
| Receivables | $ 8,400,000 | € 6,700,000 | |||||
| Anticipated revenue | 8,300,000 | € 6,500,000 | |||||
| Legal fees | 400,000 | 300,000 | |||||
| Broker fees | 500,000 | € 400,000 | |||||
| Senior debt facility | $ 146,000,000 | € 120,000,000 | |||||
| Capital | 85,000,000 | 70,000,000 | |||||
| Deposits | $ 14,900,000 | 12,200,000 | |||||
| Profit share rate | 18.00% | 18.00% | |||||
| Management fee | $ 4,600,000 | 3,750,000 | |||||
| Payment for loan | 2,000,000 | € 1,640,000 | |||||
| Loan principal | 9,260,000 | € 7,500,000 | |||||
| Repayment fee | $ 2,300,000 | 1,900,000 | |||||
| Repayment fee rate | 25.00% | 25.00% | |||||
| UK Infrastructure Bank Limited [Member] | |||||||
| Disposals [Line Items] | |||||||
| Senior debt facility | 73,000,000 | 60,000,000 | |||||
| Credit Risk [Member] | |||||||
| Disposals [Line Items] | |||||||
| Milestone payments | $ 5,400,000 | 4,300,000 | |||||
| Subsequent Event [Member] | |||||||
| Disposals [Line Items] | |||||||
| Senior debt facility | $ 146,000,000 | € 120,000,000 | |||||
| Repayment of amortization period | 10 years | 10 years | |||||
| Sosteneo fund | $ 257,000,000 | € 210,000,000 | |||||
| Pacific Green Battery Energy [Member] | |||||||
| Disposals [Line Items] | |||||||
| Shares rate | 100.00% | 100.00% | |||||
| Sheaf Energy Limited [Member] | |||||||
| Disposals [Line Items] | |||||||
| Shares rate | 100.00% | 100.00% | |||||
| BESS [Member] | |||||||
| Disposals [Line Items] | |||||||
| Purchase price | 18,900,000 | 15,100,000 | |||||
| Legal fees | 400,000 | 300,000 | |||||
| REP 2 [Member] | |||||||
| Disposals [Line Items] | |||||||
| Liquidated damages | 360,000 | 285,000 | |||||
| REP 2 [Member] | BESS Projects [Member] | |||||||
| Disposals [Line Items] | |||||||
| Liquidated damages | 7,500 | ||||||
| REP 1 [Member] | |||||||
| Disposals [Line Items] | |||||||
| Liquidated damages | 126,000 | 100,000 | |||||
| REP 1 [Member] | BESS Projects [Member] | |||||||
| Disposals [Line Items] | |||||||
| Liquidated damages | 12,500 | ||||||
| Milestone one [Member] | |||||||
| Disposals [Line Items] | |||||||
| Gross deferred consideration | 8,900,000 | 7,260,000 | |||||
| Milestone Two [Member] | |||||||
| Disposals [Line Items] | |||||||
| Gross deferred consideration | 6,100,000 | 4,960,000 | |||||
| Milestone Three [Member] | |||||||
| Disposals [Line Items] | |||||||
| Gross deferred consideration | $ 1,600,000 | € 1,300,000 | |||||
Disposals (Details) - Schedule of Gain on Sale - 6 months ended Sep. 30, 2023 |
USD ($) |
GBP (£) |
|---|---|---|
| Schedule of Gain on Sale [Abstract] | ||
| Consideration received GBP (in Pounds) | £ | £ 11,258,370 | |
| Consideration received FX | 1.2519 | |
| Consideration received USD | $ 14,094,907 | |
| Cash | 116,057 | |
| Projects under development | 43,642,826 | |
| Other assets | 3,992,999 | |
| Long term AP and accruals | (24,830,942) | |
| Other liabilities & Non-controlling interest | (23,406,419) | |
| Total (B) | (485,479) | |
| Initial Investment in PGBEP (C) | 2,461,289 | |
| Gain (A)-(B)-(C) | $ 12,119,097 |
Noncontrolling Interest (Details) € in Thousands |
1 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Dec. 02, 2020 |
Sep. 27, 2023
USD ($)
|
Sep. 30, 2023
USD ($)
|
Sep. 27, 2023
EUR (€)
|
Sep. 30, 2022
EUR (€)
|
Mar. 31, 2022
USD ($)
|
|
| Noncontrolling Interest [Line Items] | ||||||
| Interest in joint venture | 70.00% | |||||
| Equity investment | € 13,000 | $ 16,000,000 | ||||
| Voting rights percentage | 65.00% | |||||
| Purchased capital percentage | 51.00% | |||||
| gross capitalized asset | $ 2,070,000.00 | € 1,960 | ||||
| Green Power Reserves Limited [Member] | ||||||
| Noncontrolling Interest [Line Items] | ||||||
| Paid amount | 1,060,000.00 | |||||
| BESS [Member] | ||||||
| Noncontrolling Interest [Line Items] | ||||||
| Noncontrolling interest | $ 358,840 | |||||
| Green Power Reserves Limited [Member] | ||||||
| Noncontrolling Interest [Line Items] | ||||||
| Paid amount | € | 1,000 | |||||
| Noncontrolling interest | $ 1,010,000.00 | € 960 | ||||
| BESS [Member] | ||||||
| Noncontrolling Interest [Line Items] | ||||||
| Noncontrolling interest | 298,418 | |||||
| JV [Member] | ||||||
| Noncontrolling Interest [Line Items] | ||||||
| Noncontrolling interest | $ 60,423 |
Noncontrolling Interest (Details) - Schedule of Noncontrolling Interests - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Schedule of Noncontrolling Interests [Abstract] | ||
| Non-redeemable noncontrolling interest | $ 16,140,339 | |
| Net (loss)/ income attributable to noncontrolling interest (BESS REP) | (354,987) | |
| Net (loss)/ income attributable to noncontrolling interest (JV) | (182,099) | (121,677) |
| Acquired noncontrolling interest (BESS Italy) | 1,009,784 | |
| Non-controlling interest | $ 827,685 | $ 15,663,675 |
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Details) - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities [Abstract] | ||
| Contract liability | $ 8,038,674 | $ 8,038,674 |
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Details) - Schedule of Revenue from the Sale of Products, Delivery of Services - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Total | $ 1,164,989 | $ 1,195,353 | $ 2,353,827 | $ 3,219,229 |
| Products [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total | 699,289 | 2,354,447 | ||
| Services [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Total | $ 1,164,989 | $ 496,064 | $ 2,353,827 | $ 864,782 |
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Details) - Schedule of Service Revenue - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Schedule of Service Revenue [Line Items] | ||||
| Total | $ 1,164,989 | $ 496,064 | $ 2,353,827 | $ 864,781 |
| Specific Services Provided to Marine Scrubber Systems [Member] | ||||
| Schedule of Service Revenue [Line Items] | ||||
| Total | 932,048 | 362,649 | 1,979,802 | 651,552 |
| Design and engineering services for Concentrated Solar Power [Member] | ||||
| Schedule of Service Revenue [Line Items] | ||||
| Total | $ 232,941 | $ 133,415 | $ 374,025 | $ 213,229 |
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Details) - Schedule of Contract Assets and Liabilities - USD ($) |
6 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
|
| Accrued Revenue [Member] | ||
| Schedule of Contract Assets and Liabilities Line [Items] | ||
| Beginning balance | $ 504,766 | $ 531,947 |
| Customer receipts and receivables | ||
| Scrubber sales recognized in revenue | ||
| Payments and accruals under contracts | (197,223) | (27,181) |
| Cost of goods sold recognized in earnings | ||
| Ending balance | 307,543 | 504,766 |
| Prepaid Manufacturing Costs [Member] | ||
| Schedule of Contract Assets and Liabilities Line [Items] | ||
| Beginning balance | 463,815 | 38,010 |
| Customer receipts and receivables | ||
| Payments and accruals under contracts | 876,671 | 4,202,264 |
| Cost of goods sold recognized in earnings | (443,686) | (3,776,459) |
| Ending balance | 896,800 | 463,815 |
| Contract Liabilities [Member] | ||
| Schedule of Contract Assets and Liabilities Line [Items] | ||
| Beginning balance | (8,751,125) | (8,143,109) |
| Customer receipts and receivables | (860,800) | (5,325,921) |
| Scrubber sales recognized in revenue | 4,717,905 | |
| Payments and accruals under contracts | ||
| Cost of goods sold recognized in earnings | ||
| Ending balance | (9,611,925) | (8,751,125) |
| Sales (Cost of Goods Sold) [Member] | ||
| Schedule of Contract Assets and Liabilities Line [Items] | ||
| Customer receipts and receivables | ||
| Scrubber sales recognized in revenue | 4,717,905 | |
| Payments and accruals under contracts | ||
| Cost of goods sold recognized in earnings | $ (443,686) | $ (3,776,459) |
Sales, Prepaid Manufacturing Costs, Cost of Goods Sold, Contract Assets and Contract Liabilities (Details) - Schedule of Cost of Goods Sold - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Schedule of Cost of Goods Sold [Line Items] | ||||
| Scrubber costs recognized | $ 419,736 | $ (90,267) | $ 1,042,901 | |
| Salaries and wages | $ 142,812 | 23,940 | 263,861 | 86,319 |
| Amortization of intangibles | 236,573 | 219,367 | 489,367 | 438,734 |
| Commission type costs | 3,229 | 49,997 | 29,081 | 132,293 |
| Design and engineering services for CSP | 110,245 | 51,232 | 169,009 | 150,200 |
| Specific services provided to marine scrubber systems | 669,144 | 290,408 | 1,518,715 | 432,776 |
| Construction management services | 438,031 | 438,031 | ||
| Total | $ 1,600,034 | $ 1,054,680 | $ 2,817,797 | $ 2,283,223 |
Accounts Payable and Accrued Liabilities (Details) |
Sep. 30, 2023
USD ($)
|
|---|---|
| Accounts payable and accrued liabilities [Abstract] | |
| Accounts payable | $ 3,262,179 |
| Accrued liabilities | $ 200,000 |
Accounts Payable and Accrued Liabilities (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
||
|---|---|---|---|---|
| Schedule of Accounts Payable and Accrued Liabilities [Abstract] | ||||
| Accounts payable | [1] | $ 4,946,722 | $ 692,526 | |
| Accrued liabilities | 2,711,990 | 2,349,083 | ||
| Other liabilities | 127,973 | |||
| Payroll liabilities | 146,342 | 219,151 | ||
| Total short term accounts payable and accrued liabilities | 7,805,054 | 3,388,733 | ||
| Balance, end of period | $ 7,805,054 | $ 3,388,733 | ||
| ||||
Loans Payable (Details) |
1 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Nov. 15, 2023 |
Sep. 20, 2023
USD ($)
|
Sep. 20, 2023
EUR (€)
|
Sep. 15, 2023 |
Sep. 30, 2023
EUR (€)
|
Dec. 15, 2022
USD ($)
|
Dec. 15, 2022
EUR (€)
|
|
| Loans Payable [Line Items] | |||||||
| Net equity proceeds percentage | 18.00% | 8.00% | |||||
| Repayment fee percentage | 25.00% | 25.00% | |||||
| Additional short-term working capital | $ 2,500,000 | € 1,050,000 | |||||
| Total equivalent (in Dollars) | $ | $ 3,782,000 | ||||||
| Net funds in excess (in Euro) | € | € 4,000,000 | ||||||
| Loan Agreements [Member] | |||||||
| Loans Payable [Line Items] | |||||||
| Percentage of covert outstanding | 20.00% | ||||||
| Sheaf Storage Limited [Member] | |||||||
| Loans Payable [Line Items] | |||||||
| Percentage of covert outstanding | 100.00% | ||||||
| Sheaf Storage Limited [Member] | |||||||
| Loans Payable [Line Items] | |||||||
| Loan agreement amount | $ 9,261,789 | € 7,500,000 | |||||
| Accrued interest percentage | 20.00% | ||||||
Loans Payable (Details) - Schedule of Loans Payable - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
||
|---|---|---|---|---|
| Schedule of Loans Payable [Abstract] | ||||
| Loans payable | [1] | $ 3,834,315 | $ 1,667,484 | |
| Long term loans payable | 791,662 | |||
| Loans of Projects Under Development | 11,192,035 | |||
| Balance, end of period | $ 15,026,350 | $ 2,459,146 | ||
| ||||
Warranty Costs (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Warranty Costs [Abstract] | |||
| Non-cash warranty recovery | |||
| Warrant commission | 35,320 | ||
| Warranty provision | $ 23,500 | ||
| Accounts payable | $ 58,820 | $ 181,600 | |
Warranty Costs (Details) - Schedule of Changes in the Warranty Costs - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Schedule of Changes in the Warranty Costs [Abstract] | ||
| Balance, beginning of period | $ 580,530 | $ 865,451 |
| Warranty expense / (recovery) | 23,500 | (625,664) |
| Warranty (invoiced costs) / recovery | (187,669) | 340,743 |
| Balance, end of period | $ 416,361 | $ 580,530 |
Related Party Transactions (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2023 |
|
| Related Party Transactions [Line Items] | |||||
| Company owed amount | $ 152,140 | $ 152,140 | $ 213,020 | ||
| Commissions to companies | 14,979 | $ 37,897 | 29,974 | $ 85,962 | |
| Consulting fees | 2,193,240 | 163,500 | 4,346,930 | 327,000 | |
| Bonus paid | 3,954,380 | 3,954,380 | |||
| Director [Member] | |||||
| Related Party Transactions [Line Items] | |||||
| Consulting fees | $ 171,497 | $ 201,072 | $ 472,621 | $ 505,572 | |
Stock Options (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Stock Options [Abstract] | ||||
| Risk-free interest rate | 4.54% | |||
| Average expected life | 3 years 6 months | |||
| Expected volatility | 122.00% | |||
| Accrued salaries | $ 17,290 | $ 9,194 | $ 17,290 | $ 26,912 |
Stock Options (Details) - Schedule of Continuity of Stock Options - USD ($) |
6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
|||
| Schedule of Continuity of Stock Options [Abstract] | ||||
| Number of options, Beginning balance | 485,000 | 537,500 | ||
| Weighted average exercise price, Beginning balance | $ 0.89 | $ 0.56 | ||
| Weighted average remaining contractual life (years), Beginning Balance | 1 year 5 months 4 days | |||
| Aggregate intrinsic value, Beginning balance | $ 84,900 | $ 170,125 | ||
| Number of options, Ending balance | 485,000 | |||
| Weighted average exercise price, Ending balance | $ 0.89 | |||
| Weighted average remaining contractual life (years) Ending balance | 1 year 4 months 28 days | |||
| Aggregate intrinsic value, Ending balance | $ 84,900 | |||
| Number of options, vested and Exercisable | 585,000 | |||
| Weighted average exercise price vested and Exercisable | $ 0.84 | |||
| Weighted average remaining contractual life (years) vested and Exercisable | 1 year 5 months 19 days | |||
| Aggregate intrinsic value vested and Exercisable | [1] | $ 76,500,000,000 | ||
| Number of options Granted | 100,000 | 285,000 | ||
| Weighted average exercise price Granted | $ 0.6 | $ 0.66 | ||
| Weighted average remaining contractual life (years), Granted | ||||
| Aggregate intrinsic value, Granted | ||||
| Number of options, Forfeited | (337,500) | |||
| Weighted average exercise price Forfeited | $ 0.18 | |||
| Weighted average remaining contractual life (years), Forfeited | ||||
| Aggregate intrinsic value Forfeited | ||||
| ||||
Stock Options (Details) - Schedule of Additional Information Regarding Stock Options Outstanding |
6 Months Ended |
|---|---|
|
Sep. 30, 2023
$ / shares
shares
| |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 585,000 |
| Exercise price 1.03 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 25,000 |
| Issued and Outstanding, remaining contractual life (years) | 3 months 14 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 1.03 |
| Exercise price 1.50 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 50,000 |
| Issued and Outstanding, remaining contractual life (years) | 6 months |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 1.5 |
| Exercise price 0.90 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 25,000 |
| Issued and Outstanding, remaining contractual life (years) | 11 months 1 day |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.9 |
| Exercise price 1.20 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 20,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year 5 months 15 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 1.2 |
| Exercise price 1.20 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 40,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year 5 months 15 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 1.2 |
| Exercise price 1.20 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 40,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year 10 months 2 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 1.2 |
| Exercise price 0.01 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 10,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.01 |
| Exercise price 2.50 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 25,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 2.5 |
| Exercise price 3.75 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 25,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 3.75 |
| Exercise price 0.10 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 200,000 |
| Issued and Outstanding, remaining contractual life (years) | 1 year 1 month 2 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.1 |
| Exercise price 0.50 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 25,000 |
| Issued and Outstanding, remaining contractual life (years) | 11 months 1 day |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.5 |
| Exercise price 0.60 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 20,000 |
| Issued and Outstanding, remaining contractual life (years) | 2 years 10 months 2 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.6 |
| Exercise price 0.60 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 40,000 |
| Issued and Outstanding, remaining contractual life (years) | 3 years 4 months 2 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.6 |
| Exercise price 0.60 [Member] | |
| Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
| Issued and Outstanding, Number of shares | 40,000 |
| Issued and Outstanding, remaining contractual life (years) | 3 years 10 months 2 days |
| Issued and Outstanding, Exercise price (in Dollars per share) | $ / shares | $ 0.6 |
Segmented Information (Details) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Segmented Information [Abstract] | ||||
| Revenue from customer percentage | 36.00% | 59.00% | 36.00% | 61.00% |
Segmented Information (Details) - Schedule of Located and Operates - USD ($) |
Sep. 30, 2023 |
Mar. 31, 2023 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Property and equipment | $ 760,023 | $ 849,209 |
| Intangible Assets | 6,215,515 | 6,706,484 |
| Right of use assets | 164,145 | 350,429 |
| Total non-current assets | 7,139,683 | 7,906,122 |
| North America [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment | 3,817 | 5,343 |
| Intangible Assets | 6,211,554 | 6,700,921 |
| Right of use assets | ||
| Total non-current assets | 6,215,371 | 6,706,264 |
| Europe [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment | 124,163 | 134,001 |
| Intangible Assets | ||
| Right of use assets | 74,672 | 226,860 |
| Total non-current assets | 198,835 | 360,861 |
| Asia [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment | 632,043 | 709,865 |
| Intangible Assets | 3,961 | 5,563 |
| Right of use assets | 89,473 | 123,569 |
| Total non-current assets | $ 725,477 | $ 838,997 |
Segmented Information (Details) - Schedule of Revenues by Customer Region - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Segmented Information [Line Items] | ||||
| Revenues by customer region | $ 1,164,989 | $ 1,195,353 | $ 2,353,827 | $ 3,219,229 |
| COGS by customer region | 1,600,034 | 1,054,680 | 2,817,797 | 2,283,223 |
| Gross Profit by customer region | $ (435,045) | $ 140,673 | $ (463,970) | $ 936,006 |
| GP% by customer region | (37.00%) | 12.00% | (20.00%) | 29.00% |
| North America [Member] | ||||
| Segmented Information [Line Items] | ||||
| Revenues by customer region | $ 810 | $ 16,947 | $ 20,483 | |
| COGS by customer region | 541 | 16,272 | 10,236 | |
| Gross Profit by customer region | $ 269 | $ 675 | $ 10,247 | |
| GP% by customer region | 0.00% | 33.00% | 4.00% | 50.00% |
| Europe [Member] | ||||
| Segmented Information [Line Items] | ||||
| Revenues by customer region | $ 642,177 | $ 253,286 | $ 1,316,867 | $ 2,157,780 |
| COGS by customer region | 991,424 | 169,204 | 1,604,463 | 1,279,280 |
| Gross Profit by customer region | $ (349,247) | $ 84,082 | $ (287,596) | $ 878,500 |
| GP% by customer region | (54.00%) | 33.00% | (22.00%) | 41.00% |
| Asia [Member] | ||||
| Segmented Information [Line Items] | ||||
| Revenues by customer region | $ 522,813 | $ 917,564 | $ 1,020,013 | $ 1,012,272 |
| COGS by customer region | 608,610 | 880,512 | 1,197,062 | 985,451 |
| Gross Profit by customer region | $ (85,797) | $ 37,052 | $ (176,070) | $ 26,821 |
| GP% by customer region | (16.00%) | 4.00% | (17.00%) | 3.00% |
| South America [Member] | ||||
| Segmented Information [Line Items] | ||||
| Revenues by customer region | $ 23,693 | $ 28,694 | ||
| COGS by customer region | 4,423 | 8,256 | ||
| Gross Profit by customer region | $ 19,270 | $ 20,438 | ||
| GP% by customer region | 0.00% | 81.00% | 0.00% | 71.00% |
Commitments (Details) |
6 Months Ended |
|---|---|
|
Sep. 30, 2023
USD ($)
| |
| Commitments [Line Items] | |
| Company holds interest | 70.00% |
| Amkest Group [Member] | |
| Commitments [Line Items] | |
| Accrued interest amounting | $ 874,414 |
Commitments (Details) - Schedule of Lease Assets are Categorized as Right of Use Assets |
6 Months Ended | |||
|---|---|---|---|---|
Sep. 30, 2023 | ||||
| London, United Kingdom [Member] | ||||
| Schedule of Lease Assets are Categorized as Right of Use Assets [Line Items] | ||||
| Long-term premises lease | London, United Kingdom | |||
| Lease commencement | Apr. 01, 2019 | |||
| Lease expiry | Dec. 25, 2023 | |||
| Term (years) | 3 years 9 months | |||
| Discount rate | 4.50% | [1] | ||
| Shanghai, China [Member] | ||||
| Schedule of Lease Assets are Categorized as Right of Use Assets [Line Items] | ||||
| Long-term premises lease | Shanghai, China | |||
| Lease commencement | Mar. 01, 2020 | |||
| Lease expiry | May 31, 2025 | |||
| Term (years) | 5 years 3 months | |||
| Discount rate | 4.65% | [1] | ||
| ||||
Commitments (Details) - Schedule of Lease Cost - USD ($) |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||
| Schedule of Lease Cost [Abstract] | ||||||
| Operating lease expense | [1] | $ 93,436 | $ 99,253 | $ 217,359 | $ 208,990 | |
| ||||||
Commitments (Details) - Schedule of Premises Lease Agreements With Minimum Annual Lease Payments |
Sep. 30, 2023
USD ($)
|
|---|---|
| Schedule of Premises Lease Agreements with Minimum Annual Lease Payments [Abstract] | |
| 2024 | $ 54,662 |
| 2025 | 47,918 |
| Thereafter | |
| Total future minimum lease payments | 102,580 |
| Imputed interest | (22,141) |
| Operating lease obligations | $ 80,439 |
Income Taxes (Details) $ in Millions |
6 Months Ended |
|---|---|
|
Sep. 30, 2023
USD ($)
| |
| Income Taxes [Abstract] | |
| Percentage of tax benefit | 50.00% |
| Net operating losses | $ 19.7 |
| Losses available | $ 8.0 |
Income Taxes (Details) - Schedule of Components of Income Before Income Taxes - USD ($) |
12 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Schedule of Components of Income Before Income Taxes [Line Items] | ||
| Net profit / (loss) before taxes | $ 552,121 | $ (5,501,101) |
| United States [Member] | ||
| Schedule of Components of Income Before Income Taxes [Line Items] | ||
| Net profit / (loss) before taxes | (11,405,266) | (3,394,876) |
| Foreign [Member] | ||
| Schedule of Components of Income Before Income Taxes [Line Items] | ||
| Net profit / (loss) before taxes | $ 11,957,387 | $ (2,106,226) |
Income Taxes (Details) - Schedule of Income Tax Benefit at the Statutory Rates - USD ($) |
6 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Schedule of Income Tax Benefit at the Statutory Rates [Abstract] | ||
| Net profit / (loss) before taxes | $ 552,121 | $ (5,501,101) |
| Statutory tax rate | 21.00% | 21.00% |
| Expected income tax expense / (recovery) | $ 115,945 | $ (1,155,231) |
| Tax exemption on share sale | (3,599,502) | |
| Subpart F inclusion | 3,599,502 | |
| Permanent differences and other | 81,264 | 40,258 |
| Foreign tax rate difference | (183,590) | 1,907 |
| Change in valuation allowance | (13,620) | 1,113,066 |
| Income tax provision | ||
| Current | ||
| Deferred | ||
Subsequent Events (Details) |
6 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
|
Nov. 02, 2023
USD ($)
|
Nov. 02, 2023
EUR (€)
|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
EUR (€)
|
Nov. 02, 2023
EUR (€)
|
Oct. 16, 2023
USD ($)
shares
|
Oct. 16, 2023
EUR (€)
shares
|
Sep. 30, 2023
EUR (€)
|
|
| Subsequent Events [Line Items] | ||||||||
| Senior debt facility | $ 146,000,000 | € 120,000,000 | ||||||
| Capital expenditure | $ 85,000,000 | € 70,000,000 | ||||||
| Deposits | 14,900,000 | 12,200,000 | ||||||
| Legal fees | 400,000 | € 300,000 | ||||||
| Gross deferred consideration | $ 19,000,000 | € 15,100,000 | ||||||
| Profit share ratio | 18.00% | 18.00% | ||||||
| Management fee | $ 4,600,000 | 3,750,000 | ||||||
| Payment for loan | 2,000,000 | € 1,640,000 | ||||||
| Loan principal | 9,260,000 | € 7,500,000 | ||||||
| Loan principal | $ 2,300,000 | 1,900,000 | ||||||
| Repayment fee rate | 25.00% | 25.00% | ||||||
| Sheaf Energy Limited [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Loan principal | $ 9,260,000 | € 7,500,000 | ||||||
| Loan principal | $ 2,300,000 | 1,900,000 | ||||||
| Repayment fee rate | 25.00% | 25.00% | ||||||
| Subsequent Event [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Senior debt facility | $ 146,000,000 | 120,000,000 | ||||||
| Repayment of amortization period | 10 years | 10 years | ||||||
| Sosteneo fund | $ 257,000,000 | € 210,000,000 | ||||||
| Issuable shares | 4,500,000 | 4,500,000 | ||||||
| Commitment being with cash | $ 3,664,000 | € 3,000,000 | ||||||
| Payable for commitment | 3,053,000 | 2,500,000 | ||||||
| Payable for instalments | $ 611,000 | € 500,000 | ||||||
| UK Infrastructure Bank Limited [Member] | Subsequent Event [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Senior debt facility | $ 73,000,000 | € 60,000,000 | ||||||
| Pacific Green Battery Energy [Member] | Subsequent Event [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Shares rate | 100.00% | 100.00% | ||||||
| Sheaf Energy Limited [Member] | Subsequent Event [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Shares rate | 100.00% | 100.00% | ||||||
| Milestone one [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Gross deferred consideration | $ 8,900,000 | 7,260,000 | ||||||
| Milestone Two [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Gross deferred consideration | 6,100,000 | 4,960,000 | ||||||
| Milestone Three [Member] | ||||||||
| Subsequent Events [Line Items] | ||||||||
| Gross deferred consideration | $ 1,600,000 | € 1,300,000 | ||||||