March 26, 2023: Another Positive Week, Consensus Expects Rate Cuts In H2/23

Last week, major market indices posted good gains, despite a volatility during the week. Dow Jones was up 1.2%, S&P 500 rose 1.4%, and Nasdaq composite was up 1.7%. Consensus seems to be that the Fed’s rate hikes will pause in May, followed by rate cuts in July. Accenture announced it will cut 19,000 jobs (2.5% of its workforce), and Amazon will shed 9,000 more jobs, adding to the 18,000 employees Amazon had already cut starting in November. Block slides 15% after short-seller Hindenburg says its 2-year investigation indicates the company has ‘wildly overstated’ genuine user counts. Nvidia CEO says generative AI is an ‘iPhone Moment’. Apple to splash US$1 billion a year on films to break into cinemas. Netflix’s ad-supported tier is reportedly gathering momentum in the US, and the Company plans to release 40 more games this year. Microsoft is planning a mobile games app store to rival Apple and Google. Coinbase says it could get sued by the SEC, which has identified ‘potential violations of securities law’ at the exchange. Nasdaq to launch crypto custody service by end of June. Microsoft is building a cryptocurrency wallet into its Edge browser. In Canada, Magnet Forensics’ shareholders approved the $1.8 billion Thoma Bravo acquisition. Cormark launched research coverage on Sophic Client Kraken Robotics with a buy rating and $1 price target. Sophic Client UGE achieved a Notice to Proceed milestone for a 2.7MW Community Solar Project — With this project, UGE has reached NTP on 6.2MW of projects and commercial operation on 1.4MW of projects so far this year. Sophic Client LuckBox “to reveal new product in Q3”.as CEO Thomas Rosander recently took part in a Q&A session with Proactive Investors. From IPOs to busts: What went wrong for public esports companies — Sophic Capital, recently spoke with Esports.net, which provides news & guides for a growing Esports community.

Sophic Client UGE International (UGE-TSXV, UGEIF-OTC) achieves Notice to Proceed milestone for 2.7MW Community Solar Project in Veazie, Maine.

UGE has reached the ‘Notice to Proceed’ (NTP) milestone for a 2.7 megawatt ground-mount community solar project in Veazie, Maine. The Notice to Proceed milestone indicates that financing for the project has closed, and all necessary permits and interconnection approvals for the project are in place. UGE had the project appraised by an independent third party at a value of $3.39 per watt, with the project’s total fair market value at $9.1 million. Once operational the project is estimated to produce an average of $449,600 in annual revenue, with a total facility lifetime of up to 35 years. With this project, UGE has reached NTP on 6.2MW of projects and commercial operation on 1.4MW of projects so far this year. http://bit.ly/40bNL6v

Cormark launches coverage on Sophic Client Kraken Robotics (PNG-TSXV, KRKNF-OTC) with buy and $1 price target.

Sophic Client Kraken Robotics (PNG-TSXV, KRKNF-OTC):  Greg Reid, President and CEO of Kraken Robotics is interviewed on the Planet MicroCap podcast.

Kraken Robotics Inc. is a marine technology company providing complex subsea sensors, batteries, and robotic systems. Their high-resolution 3D acoustic imaging solutions and services enable clients to overcome the challenges in our oceans – safely, efficiently, and sustainably. Kraken Robotics is headquartered in Canada and has offices in North and South America and Europe. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. Since the first Planet MicroCap interview with Greg back in 2017, the company has grown to the point of announcing on January 12, 2023, they expect to Report $40 Million in 2022 Revenue, up 56% Year-Over-Year. Kraken Robotics will also be presenting at our upcoming investor conference, the Planet MicroCap Showcase: VEGAS, happening on April 25-27, 2023.  http://bit.ly/3nnSJOL

Sophic Client LuckBox (LUCK-TSXV, LUKEF-OTC)  “to reveal new product in Q3”.

CEO Thomas Rosander recently took part in a Q&A session with Proactive Investors, where he spoke about the future of the Company. Watch the video interview below and use these timestamps to find his updates on specific subjects. 00:30 – February KPIs, 02:00 – Why the B2B space is attractive, 04:15 – Company milestones in 2023, 07:20 – The future of esports and gaming. https://bit.ly/40i5DMY

From IPOs to busts: What went wrong for public esports companies.

FaZe Clan, whose share price dropped below US$1 per share for the first time in January this year, may be at risk of being delisted, per the NASDAQ’s listing rules. The American org debuted at US$13.07 per share on its first day of trading; at the time of writing, its price is US$0.42. A 96.79% decline. Sophic Capital, recently spoke with Billy Studholme at Esports.net, which provides news & guides for a growing Esports community. “If you’re an investor looking at a bunch of investments, they all fall differently on the risk-reward spectrum,” Sophic’s Nikhil Thadani said. “Generally there’s more risk associated with newer companies in a newer space, where there aren’t clearly defined leaders yet. A lot of these companies, because they’re newer and they’re younger, they have to prove not just their business model, but also that they can execute towards it.” “What happens with not just esports companies but [also] younger companies in these sort of markets is they react violently on the downside and also on the upside. We’ve seen that downside over the last, you know, 15 or 18 months, if not 24 months, and the ones that are executing when the market is more receptive should come back with equal vigour on the upside.” https://bit.ly/3FThsRI

Magnet Forensics (MAGT-TSX) shareholders approve $1.8 billion Thoma Bravo acquisition as campaign against deal proves unsuccessful.

Shareholders of Kitchener-Waterloo’s Magnet Forensics have voted in favour of the cybersecurity company’s proposed sale to American private equity firm Thoma Bravo for $1.8 billion. As first reported by The Globe and Mail and confirmed to BetaKit by a Magnet spokesperson, the digital investigation software firm has received all of the votes necessary for the deal to proceed at a March 23 special meeting of shareholders. The full results of the vote were not immediately available. With the successful vote, efforts to rally support against the acquisition by one of Magnet’s largest shareholders appear to have fallen short. http://bit.ly/3FNVlfw

Proptech startup Operto raises $34.4 million to open the door to new markets, literally.

Proptech startup Operto Guest Technologies has raised $34.4 million to expand in the global short-term rental and hotel markets. Centana Growth Partners led the Series B financing round with participation from Thayer Ventures, FUSE, Blackpines Capital Partners, and Derive Ventures. The round closed on March 16. Operto expects to reach 175 staff by year-end. Founded in 2016, during which time the startup was “getting its bumps and bruises,” according to Davis, Operto raised $15.3 million in Series A funding in 2022. The latest round brings Operto’s total capital raised to about $54 million. http://bit.ly/3lC65Xi

Alberta Innovates invests $30 million into Alberta Machine Intelligence Institute.

Alberta Innovates is injecting $30 million into the Alberta Machine Intelligence Institute (Amii). The money will be used to build the province’s artificial intelligence (AI) pipeline and accelerate research. Amii is one of Canada’s three centres of AI excellence as part of the Pan-Canadian AI Strategy. The other two are Mila in Montreal and the Vector Institute in Toronto. Amii describes itself as an Alberta-based non-profit institute that supports world-leading research in AI and machine learning, and translates scientific advancement into industry adoption. Alberta Innovates is the provincial crown corporation tasked with supporting innovation in the province. The government investment is the allocation of a previously announced commitment to AI. The $30 million for AI overall is part the provincial government’s new innovation strategy, which was given $73 million in the 2022 budget. https://bit.ly/3lH1tiF

Evol receives nearly $10 million from Canadian Economic Development to support diverse Québec entrepreneurs.

Québec City-based lending group Evol has received $9.47 million in funding from Canadian Economic Development (CED) to support Québec entrepreneurs from diverse backgrounds. The federally-backed funding will be put towards two separate projects. An initial non-repayable amount of $4,475,800 will be spent by Evol to provide ongoing mentoring to businesses that have a diverse clientele, as well as a sustainable development component. A second repayable contribution of $5,000,000 will be used to provide early-stage financing to entrepreneurs from under-represented groups in Québec’s economy. http://bit.ly/3LJTmfI

Mercator AI raises $5.1 million as it develops early project detection tool for construction.

Calgary-based proptech startup Mercator AI has raised $5.1 million in an all-equity seed round as it develops its construction intelligence platform for business developers. Founded in 2020 by Chloe Smith (CEO) and Hogan Lee (COO), Mercator’s real-time construction intelligence platform mines and analyzes millions of data points across commercial and industrial projects to identify signals of early construction activity, reveal who’s involved, and tie the active project information back to company profiles. This allows business developers in construction, real estate, and manufacturing to find and qualify new business opportunities faster, according to Mercator. Currently, Mercator is live in Calgary, Edmonton, Vancouver, Toronto, Los Angeles, San Francisco, and Austin. Freestyle Ventures and Builders VC co-led the funding round, which Mercator said was oversubscribed. Others that participated included existing backers of Mercator, such as Standup Ventures and The51. Mercator has raised US$4.46 million USD in total funding, including a $1 million pre-seed round in June 2022. https://bit.ly/40hpaNp

Haply Robotics secures $4.8 million seed round to develop tactile tech used for surgical training, gaming.

Montréal-based Haply Robotics has secured $4.8 million (US$3.5 million) in a seed round of funding led by BDC Capital’s Deep Tech Venture Fund. Haply plans to use these funds to develop its haptic technology further for medical training and gamification, while also improving its robotic control and 3D interface. The round was also backed by an angel investor through their holding company, Spiritus Engineering. Since its founding, Haply was awarded $750,000 from the federal government’s Innovative Solutions Canada haptic challenge program, and received support from the McGill University Health Centre in the form of $500,000. It also raised US$500,000 from an undisclosed angel investor in 2022. http://bit.ly/3n409GP

Noze receives $1 million grant from Bill & Melinda Gates Foundation to build TB- and malaria-detecting breathalyzer.

Montréal-based Noze has received a $1 million grant from the Bill & Melinda Gates Foundation to build a breathalyzer that detects infectious diseases, more specifically tuberculosis and malaria. Noze’s portable breathalyzer is powered by the company’s AI-based digital odour perception platform, and detects unique biomarkers in exhaled breath to recognize infectious diseases. In addition, it can deliver instant diagnostics. Noze said it developed this breathalyzer to make health screenings and diagnostics less time-consuming, invasive, and costly. Formerly called Stratuscent, Noze was founded in 2015 by Ashok Prabhu, who is currently the company’s CTO. To date, Noze has received $24.4 million in funding from investors that include TandemLaunch, Mistral Venture Partners, Fonds Innovexport, and Creative Destruction Labs. http://bit.ly/3THesO2

Vertu Capital closes first private equity fund with over $300 million.

Vertu Partners Fund I is backed by a list of limited partners (LPs) that includes New York State Common Retirement Fund, BDC Capital, BMO Capital Partners, funds managed by BMO Global Asset Management, CIBC, EDC, Manulife Investment Management, as well as several undisclosed asset managers, family offices, and industry executives. Led by founder and managing partner Lisa Melchior, Vertu Capital appears to be Canada’s first private equity firm founded by a woman. Prior to launching Vertu Capital, Melchior spent 17 years at OMERS Private Equity, where she led the Ontario pension giant’s North American technology investment group as managing director. http://bit.ly/3Z9mjVI

Accenture to cut 19,000 jobs.

Tech consultancy giant Accenture plans to cut 19,000 jobs, or 2.5% of its workforce, and has lowered its annual revenue and profit forecasts, becoming the latest behemoth to trim expenses in the wake of dwindling global economic conditions. The reduction in jobs, over half of which affects individuals in non-billable corporate functions, will be undertaken in the next 18 months, Accenture said in an SEC filing Thursday. The company had increased its workforce by 38,000 in the year that ended in February 2023 to serve the increased demand in its services and solutions, it said. The company said it now expects annual revenue growth for the fiscal 2023 to be between 8% to 10%, down from 8% to 11%. http://bit.ly/3TEKAl5

Amazon laying off 9,000 more employees, including in AWS, Ads, Twitch.

Amazon plans to lay off 9,000 more employees primarily in Amazon Web Services, advertising, the streaming site Twitch and human resources, CEO Andy Jassy said on Monday. The layoffs will take place in the coming weeks, Jassy said, adding to the 18,000 employees Amazon had already cut starting in November. The latest round of layoffs is all the more notable given that AWS and advertising have been fast growing, high margin parts of Amazon’s business. Cloud computing rivals Google and Microsoft have struggled to compete with AWS, while retail rivals such as Walmart and Target are increasingly looking to replicate Amazon’s success in advertising. Amazon will continue to do limited hiring in “strategic areas” of some businesses, Jassy said. Meanwhile, Twitch CEO Dan Clancy said in a separate blog post that his division is cutting more than 400 jobs, writing that “user and revenue growth has not kept pace with our expectations.” Other Amazon divisions did not immediately announce layoff figures. https://bit.ly/3LRVi6a

UK says Microsoft’s Activision bid won’t harm console market, dealing blow to Sony.

The UK’s Competition and Markets Authority dropped one of the key pillars of its investigation into Microsoft’s US$69 billion bid to acquire Activision on Friday, saying that it was no longer concerned that the deal would harm competition in the gaming console market. The regulatory body, which has been investigating the proposed deal since July, said new evidence alleviates its prior concern that Microsoft could withhold popular games like Call of Duty from competitors’ consoles such as Sony’s Playstation. In fact, the CMA concluded that withholding the games from competitors “would result in a significant financial loss for Microsoft.” That decision marks a blow to Sony, which previously asked the CMA to block the deal on the grounds that Microsoft could pull Call of Duty from Playstation, and which had refused to enter an agreement with Microsoft that would keep Activision’s games available on other consoles for years into the future. The CMA is still investigating whether Microsoft’s acquisition of Activision will hamper competition in the cloud gaming market. The deal also faces antitrust hurdles in other jurisdictions — a separate regulator in the EU is investigating the deal, and the US Federal Trade Commission has sued to block the acquisition. https://bit.ly/3K9ALc2

Block slides 15% after short-seller Hindenburg says 2-year investigation indicates the company has ‘wildly overstated’ genuine user counts.

Block plunged Thursday after Hindenburg Research said it’s shorting shares in the payments company, alleging it has mislead investors with inflated metrics. Block called Hindenburg’s report on its Cash App business “factually inaccurate and misleading” in a response sent to Insider. Block shares dropped 15% to close at US$61.88, the lowest close since late December. More than US$6 billion was knocked off the company’s market capitalization on Thursday, bringing it down to over US$37 billion. The short-seller said its 2-year investigation indicated the company used inflated metrics for its Cash App platform. Hindenburg’s report is “factually inaccurate and misleading,” Block said in a statement. Block said it’s looking into taking legal action.  http://bit.ly/3ngMTif

Nvidia CEO says generative AI is an ‘iPhone Moment’.

Nvidia used its annual developer conference to remind the tech industry of its top-dog status in the AI chip market, unveiling new offerings such as a cloud-based supercomputing service that lets customers access tens of thousands of its graphics processing chips and software to run large-scale computing jobs. In a keynote at the event, Nvidia Founder and CEO Jensen Huang characterized the flood of generative AI development as similar to how Apple’s release of the iPhone in 2007 catalyzed a wave of innovation in the smartphone market. The supercomputing service, similar to the one Microsoft reportedly built to help OpenAI develop its ChatGPT assistant, shows how Nvidia plans to benefit from the tech industry’s race to develop generative AI products and features, despite competition from cloud providers that have designed custom AI chips. It’s another example of how cloud computing can make expensive technology accessible to a wider audience. The supercomputing service is now available on Oracle’s cloud service and is coming to Microsoft Azure and Google Cloud in the future, Huang said in the keynote. https://bit.ly/3lF6WGG

Apple again rumored to bid for English Premier League football streaming rights.

Following initial rumored interest, Apple is again rumored to be looking at bidding for English Premier League football streaming. This follows the debut of MLS Season Pass this past February, MLB Friday Night Baseball, and many rumors of other Apple sports streaming initiatives in development including negotiations with the Pac-12. In the UK, Premier League matches are currently broadcast by companies including Sky, BT Sport, and Amazon. In the US, Premier League games are streamed through Peacock. Apple has approached sports streaming from several directions. For instance, MLS Season Pass is a separate subscription package, priced at US$14.99 per month, including streaming and on-demand access to all Major League Soccer games without blackouts. It is unlikely that Apple would be able to attain all-inclusive Premier League streaming rights. An Apple Premier League package would probably be closer to the Friday Night Baseball arrangement, similar to existing deals the Premier League has struck with Amazon. http://bit.ly/3ndQgXd

Apple to splash US$1 billion a year on films to break into cinemas.

Apple Inc. plans to spend US$1 billion a year to produce movies that will be released in theaters, according to people familiar with the company’s plans, part of an ambitious effort to raise its profile in Hollywood and lure subscribers to its streaming service. Apple has approached movie studios about partnering to release a few titles in theaters this year and a slate of more films in the future, said the people, who asked not to be identified because the plans are private. The list of potential releases includes Martin Scorsese’s Killers of the Flower Moon, which stars Leonardo DiCaprio; the spy thriller Argylle, from director Matthew Vaughn; and Napoleon, Ridley Scott’s drama about the French conqueror. A spokesperson for Apple declined to comment.  http://bit.ly/3TBQdR8

Netflix’s ad-supported tier is reportedly gathering momentum in the US.

Around one million accounts are now signed up to Netflix’s ad-supported tier in the US, according to internal figures seen by Bloomberg. The tier was first launched in early November, and is thought to have gotten off to a slow start. Come January, however, 19 percent of new signups in the US opted for the US$6.99 ad-supported tier, according to analytics firm Antenna. Antenna’s analysis suggests Netflix’s shift towards an ad-supported model has been slower than competitors HBO Max and Disney Plus when they introduced their ad tiers in June 2021 and December 2022. By its third month, 36 percent of new Disney Plus signups were opting for an ad-supported plan versus 21 percent for HBO Max and 19 percent for Netflix. http://bit.ly/3JDqanZ

Netflix plans to release 40 more games this year, will add Monument Valley in 2024.

Netflix has announced that it has 40 games slated for launch this year and has 70 in development with its partners. The company also has 16 games currently being developed by its in-house game studios. Netflix launched games in November 2021 and has released 55 titles since then. http://bit.ly/3JZP1ny

Microsoft plans mobile games app store to rival Apple and Google.

Microsoft is preparing to launch a new app store for games on iPhones and Android smartphones as soon as next year if its US$75 billion acquisition of Activision Blizzard is cleared by regulators, according to the head of its Xbox business. New rules requiring Apple and Google to open up their mobile platforms to app stores owned and operated by other companies are expected to come into force from March 2024 under the EU’s Digital Markets Act. Under the DMA, the EU is expected to designate Apple and Google as “gatekeepers”, requiring them to change the rules that govern how apps are distributed on iPhones and Android devices. However, the big tech companies could appeal against the designation, delaying enforcement beyond next March’s deadline. http://bit.ly/3ZiVRJm

Epic is going to give 40 percent of Fortnite’s net revenues back to creators.

Epic Games is trying to make a better economy for Fortnite creators with what its calls “Creator Economy 2.0,” which it announced at its State of Unreal keynote on Wednesday. Previously, Epic creators participated in the company’s “Support-A-Creator” program. In the program, creators were issued individual codes, and if somebody bought something in the Fortnite store with that code, that creator would get 5 percent of your purchase. As part of Creator Economy 2.0, Epic plans to distribute 40 percent of Fortnite’s net revenue to “eligible creators who publish games in Fortnite,” a description that includes Epic itself. http://bit.ly/3yX7GtX

TikTok reassures advertisers over ban threat as some set backup plans.

TikTok has sought to reassure advertisers in recent days that the app is unlikely to be banned in the U.S., according to people familiar with the situation, as some companies begin to make contingency plans for their ad spending. The U.S., which is concerned about the app’s Chinese owners collecting data on American users and potentially influencing the app’s content, has been applying pressure on TikTok for some time. The latest move marked an escalation by the Biden administration. In communications with ad executives in recent days, TikTok ad-sales staffers have played down the threat of an outright ban and sought to keep brands from cutting their spending, ad buyers said. The TikTok staffers have indicated they don’t think a ban will happen, the ad buyers said. http://bit.ly/3z6bybO

Google flags apps made by popular Chinese e-commerce giant as malware.

Google has flagged several apps made by a Chinese e-commerce giant as malware, alerting users who had them installed, and suspended the company’s official app. In the last couple of weeks, multiple Chinese security researchers have accused Pinduoduo, a rising e-commerce giant that boasts almost 800 million active users, of making apps for Android that contain malware designed to monitor users. Effectively, Google has set Google Play Protect, its Android security mechanism, to block users from installing these malicious apps, and warn those who have them already installed, prompting them to uninstall the apps. http://bit.ly/3lBTun4

Amazon tests palm-scanning technology at Panera Bread.

Panera Bread is testing Amazon’s palm-scanning checkout service at two restaurants, Amazon said Wednesday, marking the first example of a restaurant using the technology. The service, called Amazon One, will allow customers to connect their palmprint to their credit or debit cards, as well as to a Panera loyalty program, Amazon vice president Dilip Kumar said in a blog post. The restaurant chain plans to expand the service to 10 to 20 more locations over the next few months, a Panera executive told CNBC. Amazon has already rolled out Amazon One at many Amazon Fresh and Amazon Go physical stores, as well as some Whole Foods locations. The company has also licensed the technology to third parties including the Hudson travel store chain. https://bit.ly/3z7mndW

Coinbase says it could get sued by the SEC, which has identified ‘potential violations of securities law’ at the exchange.

Coinbase, the largest cryptocurrency trading platform in the US, could get sued by the Securities and Exchange Commission over its crypto offerings. Coinbase said Wednesday that it got a Wells notice from the SEC alerting it of potential enforcement action for possible violations of securities law after “a cursory investigation,” but that the SEC didn’t expand much more. The regulator told the crypto exchange it had identified potential violations of securities law, but little more. Coinbase’s legal chief said they’re “prepared for this disappointing development.” Cathie Wood’s Ark Invest sold US$13.5 million worth of Coinbase stock on Tuesday. The famed money manager now holds a 7% stake in the crypto exchange worth US$837 million. Shares of Coinbase plunged nearly 11% in premarket trading on Thursday.  http://bit.ly/42zcqU0

Crypto giant Binance resumes withdrawals and spot trading after glitch caused outage.

Binance said it has completed the maintenance and resumed deposits, withdrawals and spot trading functionalities. Binance, the world’s largest crypto exchange, had temporarily suspended all spot trading, deposits and withdrawals citing an “issue” that it was working to resolve. Binance commands over 60% of all crypto spot volume. It has also increased its market share of Bitcoin spot volume to over 90% in recent quarters, thanks to zero commissions, according to according to Arcane Research. https://tcrn.ch/3lEPJx1

Nasdaq to launch crypto custody service by end of June.

Nasdaq will launch its new crypto custody service by the end of June, Ira Auerbach, senior vice president and head of Nasdaq digital assets, told Bloomberg on Friday. The exchange had unveiled plans for the custody business last September, but without giving a timeline. The crypto custody business, which will store and secure clients’ tokens, will focus first on bitcoin and ethereum and would be Nasdaq’s first major entrance into crypto. Nasdaq has applied for a charter to be regulated by the New York State Department of Financial Services, which already regulates custodians like Bank of New York Mellon, Coinbase Custody and Gemini Custody. It needs the charter for the custody business. https://bit.ly/407p237

Microsoft is building a cryptocurrency wallet into its Edge browser.

Microsoft is building a cryptocurrency wallet for its Edge browser even as the crypto markets struggle. Sources familiar with Microsoft’s plans tell The Verge that the software giant has been testing the Microsoft Edge built-in crypto wallet internally in recent months, with plans to eventually ship it to consumers. It’s just the latest feature coming to Microsoft’s increasingly bloated Edge browser. Screenshots of the crypto wallet leaked online last week thanks to Twitter user Albacore, who regularly documents unreleased features in Windows. Microsoft’s description of the crypto wallet says it has “simplified experiences that make Web3 easier to interact with” and that it has “integrated security features to protect you from unsecure addresses or apps.” http://bit.ly/3JDq4g7

Biden stunts growth in China for chipmakers getting US funds.

The Biden administration unveiled tight restrictions on new operations in China by chipmakers that get federal funds to build in the US, potentially hampering efforts to expand in the world’s largest semiconductor arena. The US$50 billion CHIPS and Science Act will now bar firms that win grants from expanding output by 5% for advanced chips and 10% for older technology. The Commerce Department also outlined other measures including a US$100,000 spending cap on investments in advanced capacity in China. http://bit.ly/3TKYdiY

Ford expects EV business unit to lose US$3 billion this year, hit profitability in late 2026.

Ford lost about US$3 billion on its EV and digital services business over the past two years, a unit now known as Model e, and isn’t expected to be profitable until late 2026 with an 8% operating profit margin. Meanwhile, its commercial and traditional internal combustion engine business units were profitable enough to offset losses incurred by making and selling electric vehicles. As a recap, Ford reported in February that on an adjusted basis it earned US$10.4 billion for all of 2022. Ford’s net income on an adjusted EBIT in 2021 was US$10 billion. On Thursday, Ford issued the restated earnings, which shows the Model e unit had losses of US$900 million in 2021 and US$2.1 billion in 2022. Ford currently has three EVs in its portfolio: the Mustang Mach e, the F-150 Lightning truck and the commercial transit van. Meanwhile, Ford Pro saw profits increase from US$2.7 billion in 2021 to US$3.2 billion in 2022. Ford Blue brought in the bulk of profits, earning US$3.3 billion in 2021 and jumping to US$6.8 billion in 2022. The automaker forecast that its Ford Blue unit will earn, on an adjusted basis, US$7 billion in profits in 2023. Ford Blue will approach US$6 billion in profits, nearly double its 2022 earnings. And Model e, the EV and digital services unit, is forecast to lose US$3 billion in 2023, a loss driven by a number of capital projects including building new factories such as the US$5.6 billion BlueOval city complex in Tennessee. http://bit.ly/3Z8WHbf