Crwe World | PyroGenesis Announces Q1 2021 Results Revenues $6.3MM; Net Earnings and Comprehensive Income $3.7MM; Gross Margin 34%; Current Backlog $26MM; Basic EPS $0.02

“Keep it simple, focus on signal not noise”

“Zoom out”

“Know what you hold”

All adages above which apply here. Approximately 1 year ago, who could have possibly imagined all that PyroGenesis would have accomplished, reflected both financially, operationally and strategically in what could only be categorized as the “coming out party”.

Much of what is posted is in the financials; however, it makes sense to summarize where we are today versus a year ago from the perspective of financial position to give those a clear sense of what has transpired and how positive it is for the future. It makes it much easier to compartmentalize where we could be a year from now, 3 years from now, and so on and so forth.

1. Stock Price: PyroGenesis is up 500% compared to a year ago on stock price performance. Zoom out further, and PyroGenesis is up 683% compared to 3 years ago and 1884% compared to 5 years ago. I would be hard pressed to find an asset that has generated this rate of return on investment in its nascent stages with such promising future growth prospects. Say what you want about Peter, but the stock price performance on a meaningful time horizon of this nature shows he has created shareholder value and expects to continue doing so, don’t doubt it for a second.

2. Cash and Cash Equivalents: $26.3 million (1Q21) compared to $1.1 million (1Q20).

3. Current Assets: $40.5 million (1Q21) compared to $3 million (1Q20)

4. Total Assets: $87.3 million (1Q21) compared to $10.8 million (1Q20)

5. Current Liabilities: $12.4 million (1Q21) compared to $14.1 million (1Q20)

NOTE: $3.934M as per Note 12 - % complete revenue recognition method that are mandated to follow by GAAP *[*NOTE Very important as this is shown as a liability...Billings in excess of costs and profits on uncompleted contracts  is as stated. Percentage completion -Accounting anomaly whereas collect faster than work completed but IF company stops this amount is NOT payable]

6. Total Liabilities: $15.2 million (1Q21) compared to $18 million (1Q20)

NOTE: Balance of lease is stated here of $2.76M so we can see total liabilities in reality is less than $9M when you factor in the lease and % complete.

7. Total Shareholders’ Equity: $72.1 million (1Q21) compared to deficiency of $7.2 million (1Q20)

8. Current Ratio: 3.26x (1Q21) compared to 0.21x (1Q20)

9. Debt-to-Equity Ratio: 0.20 (1Q21) compared to debt on equity deficiency (n.c.)

10. Backlog: $26 million

11. Pipeline based on what has been disclosed (estimated conversion within 6 months, to be completed within 18 months; either sole supplier or leadership position in competitive bid): $65 million+

Someone that is a detractor of the company can be short, pessimistic about revenue projections or outlook on contracts, however negative they want to be, but the reality is when you take all the above into consideration, it is quite incredible to see where this company is headed. There is not one asset or liability line item, or liquidity or solvency metric that hasn't knocked it out of the ballpark in the last year.

This can be further compounded by its reflection in financial performance over the last year. In summary, the company is positioned extremely well, and has amassed proprietary technology to create a strong suite of industrial applications that will be in high demand in the coming years. The financial position supports the premise that PyroGenesis is entering a heightened growth phase, with significant revenue and cash flow generation inbound.