Azure Dynamics Corp (AZDDQ)

Description:

Azure Dynamics Corporation was incorporated under the ABCA as Wild Horse Resources Ltd. on May 14, 1993. The Company has developed proprietary electric and hybrid electric drive technology for the light to heavy duty commercial vehicle category (the Technology). The main business of the Company is the supply of HEV and EV control and powertrain systems. The Company has four wholly owned subsidiaries: Azure Dynamics Inc., incorporated under the CBCA; Azure Dynamics Corporation Delaware, U.S.A.; Azure Dynamics Incorporated, incorporated under the laws of the state of Delaware, U.S.A.; and Azure Dynamics Limited (inactive), incorporated under the laws of England and Wales. HEV systems include an electric motor, an energy storage system (batteries or ultracapacitors), and an additional power source, such as an internal combustion engine/generator. The Company also has an established portfolio of proprietary component products that compliment its core technical skills and makes use of an extensive industry supplier base to offer complete powertrain solutions to its target markets. The Company's controls technology offers real-time energy management that optimizes the performance of the propulsion system components and adapts the control system to actual operating conditions. It maintains and continues to grow its technical capability in the design of power electronics and electric machines. It has developed numerous powertrain platforms and components for hybrid applications: CitiBus (G1) series hybrid, which has evolved from Azure's G1 series hybrid product, for vehicles in the medium-duty weight range of 9,000 to 16,000 lbs GVW; Balance parallel hybrid (initially known as Azure's P1 parallel product) for the weight category of 10,000 to 19,000 lbs GVW; P2 parallel hybrid for the weight category over 19,000 lbs GVW; LEEP products for commercial utility and vehicle refrigeration; and Force Drive Electric drive systems. The CitiBusTM/Balance platforms are used for vehicles in a class which typically deliver urban mail, packages and goods and could also be used in small shuttle bus applications. The CitiBus product is now commercially available in delivery van and shuttle bus form. This product is specifically designed for inner-city use and is highly suitable for urban delivery vans and shuttle buses which both have a demanding drive-cycle. The Balance parallel hybrid product is expected to have wider application than the CitiBus series hybrid product and is intended to address the broader, higher-volume markets. Parallel hybrid technology is more conducive to urban vehicles that also need to operate on highways for extended periods of time. As a result of the Company's agreement with Ford, its commercial Balance hybrid development program is now focused on the Ford E-350 and E-450 commercial vehicle stripped and cab chassis. The P2 parallel hybrid system is suitable for larger delivery vans and busses. The Company's Electric drive solutions consist of Azure's LEEP and electric drive components. The LEEP system delivers improvements in fuel utilization and emission levels by optimizing the energy management between the engine and an energy storage system. The LEEP system has a range of applications beyond refrigeration including utility and telecom truck applications. It relies on a combination of patent, industrial design, copyright, trademark and trade secret laws, non-disclosure agreements and other contractual provisions to establish maintain and protect its proprietary rights. The Company's technology for EVs and HEVs might require regulatory approvals in a number of jurisdictions and it might have to re-qualify for approvals in jurisdictions from time to time due to changing regulatory standards. The Company might also have to obtain separate regulatory approval for various applications of its technology.