Preliminary unaudited results indicate record quarterly and annual revenue, beating internal guidance by over 5% and representing approximately 43% annual growth Deliveries in the quarter included core material handling battery system products in addition to initial deliveries of robotic battery products TORONTO, ON / ACCESS Newswire / October 6, 2025 / Electrovaya Inc. ("Electrovaya" or the "Company") (Nasdaq:ELVA)(TSX:ELVA), a lithium-ion battery technology and manufacturing company, today announced its p ...

Summary of Electrovaya Conference Call Company Overview - **Company Name**: Electrovaya - **Ticker**: ELVA (NASDAQ and Toronto Stock Exchange) - **Industry**: Lithium-ion battery technology and manufacturing Core Points and Arguments 1. **Differentiated Technology**: Electrovaya has developed a unique lithium-ion battery technology that significantly improves safety and longevity compared to traditional batteries. This technology is already in real-world applications, demonstrating key advantages [2][3][4] 2. **Safety Record**: The proprietary ceramic separator technology enhances safety, with over 30,000 battery systems deployed and a perfect safety record. This technology mitigates risks associated with thermal runaway, a common issue in conventional lithium-ion batteries [3][12][14] 3. **Longevity**: Electrovaya's batteries can last between 8,000 to 10,000 cycles, vastly outperforming typical phone batteries, which last about 800 cycles. This longevity is particularly beneficial for heavy-duty applications such as robotics and material handling [4][14] 4. **Market Applications**: The company is currently serving 16 Fortune 100 companies in material handling and is expanding into sectors like defense, airport ground equipment, and energy storage. The focus is on mission-critical applications that require high safety and cycle life [4][8][9][10] 5. **Revenue Growth**: Electrovaya has reported nine consecutive quarters of positive EBITDA and has achieved net profit in recent quarters. Revenue and profitability are on an upward trajectory [5][19][20] 6. **Domestic Manufacturing**: A new manufacturing facility in Jamestown, New York, is being developed with funding from the Export-Import Bank of the United States. This facility aims to triple production capacity and is eligible for production tax credits [6][17][19] 7. **Strategic Partnerships**: The company has established partnerships with major corporations, including Toyota Material Handling and Sumitomo Corporation, to enhance its market reach and capabilities [15][16] 8. **Future Technologies**: Electrovaya is also working on next-generation battery technologies, including solid-state batteries, which utilize the same ceramic separator technology [18] Additional Important Content 1. **Market Transition**: The material handling market is transitioning from lead-acid batteries to lithium-ion, creating a favorable environment for Electrovaya's products, which offer lower total cost of ownership despite higher initial costs [10] 2. **Focus on Safety**: The increasing concern over battery safety due to high-profile incidents has heightened demand for Electrovaya's technology, which is designed to prevent such occurrences [11][12] 3. **Financial Health**: The company has a break-even rate of approximately $50 million on a trailing 12-month basis and is exceeding this threshold, indicating strong financial health and operational efficiency [19][20] 4. **Vision for Growth**: Electrovaya aims to become a dominant player in the battery market for mission-critical heavy-duty applications, with a strong focus on execution and market expansion [21]

Core Insights - Electrovaya Inc. has initiated drawdowns on its $50.8 million EXIM debt Facility, which is designated for capital and engineering expenses at its Jamestown, NY facility [1] Financial Developments - The company expects to conduct further drawdowns regularly over the next 12 months, indicating a planned approach to financing its operational needs [1]

Core Viewpoint - Electrovaya Inc. has launched its next-generation Energy Storage Systems (ESS) to meet the increasing demand for safe, durable, and cost-effective stationary energy storage solutions [1] Group 1: Product Features - The new ESS products are based on Electrovaya's proprietary Infinity Technology, which offers industry-leading cycle life, significantly extending service duration and reducing replacement frequency [1] - Initial systems provide over 2MWh of storage capacity in a 20' containerized format, incorporating advanced safety technologies [1] Group 2: Market Position and Demand - The product is designed for a wide range of energy storage applications, with strong initial interest from a high-profile customer base [1] - The manufacturing of cells, modules, and packs in the USA allows the company to leverage strong ITC incentives [1]

Summary of Electrovaya (ELVA) FY Conference Call - August 26, 2025 Company Overview - **Company Name**: Electrovaya - **Ticker**: ELVA - **Location**: Toronto, Canada, and Jamestown, New York - **Industry**: Lithium-ion battery technology and manufacturing [2][3] Core Points and Arguments - **Market Position**: Electrovaya operates in a highly competitive lithium-ion battery market dominated by Chinese and Korean companies. The company has achieved two consecutive quarters of net profits and is growing at an annualized rate of approximately 40% [4][7]. - **Product Differentiation**: The company claims to have the longest cycle life (over 10,000 cycles) and the best safety record in the industry, with a perfect safety record across over 30,000 deployed batteries [4][5][22]. - **Target Markets**: Initial focus on material handling applications, now powering 16 Fortune 100 companies, including major retailers like Walmart and Target. The company is expanding into defense, robotics, and energy storage markets [6][9][12][55]. - **Production Expansion**: Electrovaya is expanding its production capacity at its Jamestown site, with plans to manufacture American-made lithium-ion cells starting next year. This expansion is supported by a $51 million loan [7][29]. - **Financial Performance**: The company has reported nine consecutive quarters of positive adjusted EBITDA and is moving towards profitability with expectations of over $60 million in revenue for the fiscal year ending September 30 [7][34]. Additional Important Insights - **Safety Technology**: Electrovaya's battery technology includes a ceramic separator that remains stable at high temperatures, significantly reducing the risk of battery fires. The company has passed stringent fire propagation tests [20][21]. - **Customer Relationships**: Strong partnerships with major companies like Walmart and Toyota have been crucial for Electrovaya's growth. Walmart's initial adoption of Electrovaya's batteries helped establish credibility and opened doors to other OEM partnerships [24][47]. - **Future Opportunities**: The company sees potential in the defense sector and energy storage applications, leveraging existing relationships with large end customers [55][56]. - **R&D Focus**: A significant portion of the workforce consists of engineers and scientists, indicating a strong emphasis on R&D, which is often funded by customer projects [57]. Conclusion Electrovaya is positioned for growth in the lithium-ion battery market, with a focus on safety, longevity, and expanding into new verticals. The company's strategic partnerships and production expansion plans are expected to drive future revenue growth and profitability.

Company Overview - Electrovaya (NASDAQ: ELVA) is experiencing growth with increasing revenue and has achieved profitability [1] - The company specializes in lithium-ion batteries, offering the longest cycle life and highest safety profile in the market [1] Market Position - Electrovaya's major clients include five Fortune 100 and 500 companies, indicating strong demand and credibility in the industry [1] - The company is being asked to expand into new verticals by its largest end users, suggesting potential for further growth and diversification [1] Investment Perspective - The focus is on small to mid-cap companies with disruptive technology, highlighting Electrovaya's innovative approach [1] - The analyst emphasizes a long-term investment strategy, typically holding investments for two years or longer, which aligns with the growth potential seen in Electrovaya [1]

Core Points - Seeking Alpha welcomes a new contributing analyst, ZhengJun Yu, who is encouraged to share investment ideas [1] - The platform offers opportunities for individuals to publish articles, earn money, and gain access to exclusive content [1] Analyst Disclosure - The analyst has a beneficial long position in the shares of ELVA through various means [2] - The article reflects the analyst's own opinions and is not influenced by compensation from any company mentioned [2] Seeking Alpha's Disclosure - Past performance does not guarantee future results, and no specific investment recommendations are provided [3] - The views expressed may not represent those of Seeking Alpha as a whole, and analysts may not be licensed or certified [3]

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Condensed Interim Consolidated Statements of Financial Position](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased by 36.44% to $53,871 thousand, driven by current assets, while total equity rose 160.15% to $22,334 thousand | Metric | June 30, 2025 (thousands USD) | September 30, 2024 (thousands USD) | Change (%) | | :-------------------------- | :----------------------------- | :-------------------------------- | :--------- | | Total Assets | 53,871 | 39,482 | 36.44% | | Total Current Assets | 42,285 | 29,418 | 43.74% | | Total Non-Current Assets | 11,586 | 10,064 | 15.12% | | Total Liabilities | 31,537 | 30,897 | 2.07% | | Total Current Liabilities | 10,490 | 28,531 | -63.24% | | Total Non-Current Liabilities | 21,047 | 2,366 | 789.56% | | Total Equity | 22,334 | 8,585 | 160.15% | - Current liabilities decreased significantly by **63.24%** from $28,531 thousand to **$10,490 thousand**, largely due to the repayment of working capital facilities and short-term loans[2](index=2&type=chunk) - Non-current liabilities increased substantially by **789.56%** from $2,366 thousand to **$21,047 thousand**, primarily driven by the reclassification of working capital facilities to a long-term loan[2](index=2&type=chunk) [Condensed Interim Consolidated Statements of Earnings](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Earnings) Net income for the nine months ended June 30, 2025, was $1,315 thousand, a significant turnaround from a prior year net loss | Metric (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | Change (%) | | :--------------------- | :------------------------------ | :------------------------------ | :--------- | | Revenue | 43,320 | 33,060 | 31.03% | | Direct manufacturing costs | 29,962 | 22,347 | 34.08% | | Gross margin | 13,358 | 10,713 | 24.69% | | Income (loss) from operations | 3,168 | 19 | 16573.68% | | Net income (loss) for the period | 1,315 | (1,371) | 195.92% | | Basic income (loss) per share | 0.03 | (0.04) | 175.00% | - Revenue for the three months ended June 30, 2025, increased by **66.76%** to **$17,133 thousand** from $10,274 thousand in the same period last year[4](index=4&type=chunk) - Income from operations for the nine months ended June 30, 2025, was **$3,168 thousand**, a substantial increase from $19 thousand in the prior year, indicating improved operational efficiency[4](index=4&type=chunk) [Condensed Interim Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income) Other comprehensive income for the nine months ended June 30, 2025, was $879 thousand, a significant improvement from a prior year loss | Metric (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | Change (USD) | | :--------------------- | :------------------------------ | :------------------------------ | :----------- | | Net income (loss) for the period | 1,315 | (1,371) | 2,686 | | Cumulative translation adjustment | (436) | (686) | 250 | | Other comprehensive income (loss) for the period | 879 | (2,057) | 2,936 | - For the three months ended June 30, 2025, other comprehensive income was **$661 thousand**, compared to a loss of $(956) thousand in the same period last year[5](index=5&type=chunk) [Condensed Interim Consolidated Statements of Changes in Equity](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity significantly increased to $22,334 thousand as of June 30, 2025, driven by share issuances and net income | Metric (thousands USD) | Balance – June 30, 2025 | Balance – October 01, 2024 | Change (USD) | | :--------------------- | :---------------------- | :------------------------- | :----------- | | Share Capital | 128,062 | 116,408 | 11,654 | | Contributed Surplus | 12,120 | 10,904 | 1,216 | | Warrants | 4,725 | 4,725 | 0 | | Accumulated other comprehensive income | 5,356 | 5,792 | (436) | | Deficit | (127,929) | (129,244) | 1,315 | | Total Equity | 22,334 | 8,585 | 13,749 | - Issuance of shares contributed **$11,582 thousand** to equity during the nine-month period ended June 30, 2025[6](index=6&type=chunk) - The company recorded a net income of **$1,315 thousand** for the nine-month period ended June 30, 2025, reversing the prior year's net loss[6](index=6&type=chunk) [Condensed Interim Consolidated Statement of Cash Flows](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash and cash equivalents increased by $631 thousand for the nine months ended June 30, 2025, driven by financing activities | Metric (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | Change (USD) | | :--------------------- | :------------------------------ | :------------------------------ | :----------- | | Cash from (used in) operating activities | (7,314) | 310 | (7,624) | | Cash (used in) investing activities | (2,588) | (538) | (2,050) | | Cash from (used in) financing activities | 10,533 | (129) | 10,662 | | Increase (decrease) in cash and cash equivalents | 631 | (357) | 988 | | Cash and cash equivalents at end of period | 1,290 | 534 | 756 | - Cash used in operating activities increased to **$(7,314) thousand** in 2025 from cash provided of $310 thousand in 2024, mainly due to net changes in working capital[9](index=9&type=chunk) - Financing activities provided **$10,533 thousand** in cash, a significant improvement from cash used of $(129) thousand in the prior year, largely due to the issuance of shares and net proceeds from working capital facilities[9](index=9&type=chunk) [Notes to unaudited condensed interim consolidated financial statements](index=4&type=section&id=Notes%20to%20unaudited%20condensed%20interim%20consolidated%20financial%20statements) [1. Reporting Entity](index=4&type=section&id=1.%20Reporting%20Entity) Electrovaya Inc. is a Canadian-domiciled company listed on TSX and NASDAQ, specializing in Lithium-Ion batteries and related products - Electrovaya Inc. is domiciled in Ontario, Canada, and its common shares trade on the Toronto Stock Exchange (ELVA.TO) and NASDAQ (ELVA)[11](index=11&type=chunk) - The Company's primary business involves the design, development, manufacturing, and sale of Lithium-Ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications[12](index=12&type=chunk) [2. Basis of Presentation](index=5&type=section&id=2.%20Basis%20of%20Presentation) Interim financial statements are prepared under IAS 34 on a going concern basis, presented in USD, with Electrovaya Inc.'s functional currency being CAD - The financial statements are prepared based on IAS 34, 'Interim Financial Reporting,' and authorized for issuance on August 13, 2025[13](index=13&type=chunk)[14](index=14&type=chunk) - The Company operates on a going concern basis, supported by working capital of **$31,795 thousand** and a net profit of **$1,315 thousand** for the nine months ended June 30, 2025[15](index=15&type=chunk)[16](index=16&type=chunk) - The consolidated financial statements are presented in U.S. dollars, while the functional currency of Electrovaya Inc. is the Canadian dollar[18](index=18&type=chunk) [a. Statement of Compliance](index=5&type=section&id=2.1%20Statement%20of%20Compliance) These unaudited interim consolidated financial statements comply with IAS 34 and should be read with the prior year's audited annual statements - The unaudited condensed interim consolidated financial statements comply with International Accounting Standard 34, 'Interim Financial Reporting,' as issued by the IASB[13](index=13&type=chunk) - These statements do not include all information required for full annual financial statements and should be read with the September 30, 2024, audited annual consolidated financial statements[13](index=13&type=chunk) [b. Basis of Accounting](index=5&type=section&id=2.2%20Basis%20of%20Accounting) Financial statements are prepared on a going concern basis, supported by improved working capital and net profit for the period - The financial statements are prepared on a going concern basis, assuming assets will be realized and liabilities settled in the normal course of business[15](index=15&type=chunk) - As of June 30, 2025, the Company had working capital of **$31,795 thousand** and a net profit of **$1,315 thousand** for the nine-month period, compared to working capital of $887 thousand and a net loss of $(1,371) thousand in the prior year[16](index=16&type=chunk) [c. Functional and Presentation Currency](index=5&type=section&id=2.3%20Functional%20and%20Presentation%20Currency) Consolidated financial statements are presented in USD, with Electrovaya Inc.'s functional currency being CAD and its subsidiaries using USD - Consolidated financial statements are presented in U.S. dollars, rounded to the nearest thousands[18](index=18&type=chunk) - The functional currency of Electrovaya Inc. is the Canadian dollar, while its subsidiaries (Electrovaya Corp., Electrovaya Company, Sustainable Energy Jamestown LLC, Electrovaya USA Inc.) use US Dollars as their functional currency[18](index=18&type=chunk) [d. Use of Judgements and Estimates](index=5&type=section&id=2.4%20Use%20of%20Judgements%20and%20Estimates) Financial statement preparation involves management judgments and estimates, especially for inventory, credit losses, asset impairment, and fair value of equity instruments - Preparation of financial statements requires management to make judgments, estimates, and assumptions affecting reported amounts, which are reviewed on an ongoing basis[19](index=19&type=chunk)[20](index=20&type=chunk) - Significant areas of estimation uncertainty include net realizable values of inventories, allowance for expected credit losses, impairment testing of non-financial assets, and fair value of stock option grants and warrants[21](index=21&type=chunk) [3. Material Accounting Policies](index=6&type=section&id=3.%20Material%20Accounting%20Policies) Accounting policies in these interim financial statements are consistent with those applied in the Company's prior year audited annual statements - The accounting policies adopted are consistent with those applied in the Company's consolidated financial statements as at and for the year ended September 30, 2024[22](index=22&type=chunk) [4. Trade and Other Receivables](index=6&type=section&id=4.%20Trade%20and%20Other%20Receivables) Trade and other receivables increased to $19,102 thousand, with a slight rise in over 90-day past due accounts and a corresponding loss provision adjustment | Metric (thousands USD) | June 30, 2025 | September 30, 2024 | | :--------------------- | :------------ | :----------------- | | Trade receivables, gross | 17,286 | 10,577 | | Expected credit losses | (58) | (64) | | Net trade receivables | 17,228 | 10,513 | | Other receivables | 1,874 | 779 | | Total | 19,102 | 11,292 | - As of June 30, 2025, **1.74%** of accounts receivable were over 90 days past due, compared to 0.77% at September 30, 2024[23](index=23&type=chunk) | Allowance for Credit Losses (thousands USD) | June 30, 2025 | September 30, 2024 | | :---------------------------------------- | :------------ | :----------------- | | Beginning balance | 64 | 257 | | Allowance provided/(recovery) | (7) | 51 | | Ending balance | 57 | 64 | [5. Inventories](index=6&type=section&id=5.%20Inventories) Total inventories increased to $12,095 thousand, primarily due to raw materials, while the provision for slow-moving items remained stable | Inventory Category (thousands USD) | June 30, 2025 | September 30, 2024 | | :--------------------------------- | :------------ | :----------------- | | Raw materials | 10,461 | 8,433 | | Semi-finished | 55 | 324 | | Finished goods | 1,579 | 941 | | Total Inventories | 12,095 | 9,698 | - The provision for slow moving and obsolete inventories was **$223 thousand** for the period ended June 30, 2025, similar to $225 thousand in the prior year[30](index=30&type=chunk) - Materials expensed through direct manufacturing costs for the nine months ended June 30, 2025, were **$29,192 thousand**, up from $22,268 thousand in the prior year[30](index=30&type=chunk) [6. Prepaid expenses](index=7&type=section&id=6.%20Prepaid%20expenses) Prepaid expenses increased to $9,798 thousand, primarily driven by higher prepaid purchases for future inventory acquisitions | Prepaid Expense Category (thousands USD) | June 30, 2025 | September 30, 2024 | | :--------------------------------------- | :------------ | :----------------- | | Prepaid expenses | 1,671 | 612 | | Prepaid insurance | 5 | 54 | | Prepaid purchases | 8,122 | 6,981 | | Total Prepaid expenses | 9,798 | 7,647 | - Prepaid purchases, comprising vendor deposits on inventory orders, increased by **$1,141 thousand**[27](index=27&type=chunk) [7. Property, plant and equipment](index=7&type=section&id=7.%20Property,%20plant%20and%20equipment) Net book value of property, plant, and equipment increased to $11,327 thousand, driven by additions in production equipment and battery technology | Category (thousands USD) | Net Book Value June 30, 2025 | Net Book Value September 30, 2024 | | :----------------------- | :--------------------------- | :-------------------------------- | | Land & Building | 6,626 | 6,907 | | Right of Use Asset | 1,268 | 1,619 | | Production Equipment | 1,276 | 615 | | Capital work in progress | 670 | - | | Battery technology | 1,188 | 777 | | Total | 11,327 | 9,979 | - Additions to property, plant, and equipment amounted to **$2,414 thousand** for the nine months ended June 30, 2025, including $670 thousand in capital work in progress and $593 thousand in battery technology[28](index=28&type=chunk) - Depreciation and amortization expense for the nine months ended June 30, 2025, was **$1,033 thousand**[4](index=4&type=chunk) [8. Trade and Other payables](index=8&type=section&id=8.%20Trade%20and%20Other%20payables) Trade and other payables increased slightly to $9,830 thousand, with a minor rise in warranty provision reflecting ongoing product support | Category (thousands USD) | June 30, 2025 | September 30, 2024 | | :----------------------- | :------------ | :----------------- | | Trade payables | 7,167 | 7,073 | | Accruals | 2,188 | 1,745 | | Employee payables | 475 | 655 | | Total | 9,830 | 9,473 | | Warranty Provision (thousands USD) | June 30, 2025 | September 30, 2024 | | :--------------------------------- | :------------ | :----------------- | | Opening provision | 1,072 | 250 | | Provided during the period | 534 | 1,494 | | Utilised during the period | (509) | (672) | | Closing balance | 1,097 | 1,072 | [9. Working Capital Facilities](index=8&type=section&id=9.%20Working%20Capital%20Facilities) Working capital facilities saw significant changes, including repayment of the Cortland facility and a new $25 million credit agreement with Bank of Montreal - As of June 30, 2025, the revolving credit facility balance is **$18.83 million** (Cdn $25.65 million) with a maximum credit of $20 million[34](index=34&type=chunk) - On March 7, 2025, the Company entered a new three-year credit agreement with Bank of Montreal for up to **$20 million**, plus a $5 million accordion, and paid off the Cortland working capital facility[39](index=39&type=chunk) - The Company received a **$51 million** loan approval from Export–Import Bank of the United States for the Jamestown facility, with a term of 6.5 years, but has not drawn on it as of June 30, 2025[40](index=40&type=chunk) [a. Revolving Credit Facility](index=8&type=section&id=9.1%20Revolving%20Credit%20Facility) Revolving credit facility balance increased to $18,834 thousand, with a new three-year credit agreement established with Bank of Montreal - The revolving credit facility balance was **$18,834 thousand** as of June 30, 2025, up from $16,283 thousand at September 30, 2024[36](index=36&type=chunk) - The Company revised its revolving facility on February 12, 2024, expanding its maximum principal amount to **$22 million** and extending its term to July 29, 2025[38](index=38&type=chunk) - A new three-year credit agreement with Bank of Montreal was established on March 7, 2025, for up to **$20 million**, leading to the full repayment of the Cortland facility[39](index=39&type=chunk) [b. Promissory Note](index=9&type=section&id=9.2%20Promissory%20Note) The promissory note balance was fully repaid by June 30, 2025, after a portion was used for option purchases and the remainder paid off - The promissory note balance was fully repaid by June 30, 2025, from an opening balance of **$519 thousand** at September 30, 2024[41](index=41&type=chunk) - A portion of the promissory note (**$507 thousand**) was utilized to cover option purchase prices by the Executive Chairman and CEO on February 16, 2024[43](index=43&type=chunk) - The remaining balance of **$519 thousand** was substituted with a new promissory note on February 28, 2024, carrying a 14% interest rate, and was paid off in December 2024[43](index=43&type=chunk) [10. Short term loans](index=9&type=section&id=10.%20Short%20term%20loans) All short-term loans, including the vendor take-back liability, were fully repaid by December 2024, resulting in a zero balance | Short Term Loans (thousands USD) | June 30, 2025 | September 30, 2024 | | :------------------------------- | :------------ | :----------------- | | Short term loans | - | - | | Vendor take back | - | 1,630 | | Total | - | 1,630 | - The VTB liability, along with interest, was fully repaid in December 2024[44](index=44&type=chunk) [11. Finance costs](index=10&type=section&id=11.%20Finance%20costs) Net finance charges for the nine months ended June 30, 2025, were $1,925 thousand, with a notable increase in non-cash costs | Finance Cost Category (thousands USD) | Nine months ended June 30, 2025 (Cash) | Nine months ended June 30, 2025 (Non-Cash) | Nine months ended June 30, 2025 (Total) | Nine months ended June 30, 2024 (Cash) | Nine months ended June 30, 2024 (Non-Cash) | Nine months ended June 30, 2024 (Total) | | :------------------------------------ | :------------------------------------- | :----------------------------------------- | :-------------------------------------- | :------------------------------------- | :----------------------------------------- | :-------------------------------------- | | Working capital facility | 1,373 | 69 | 1,442 | 1,703 | - | 1,703 | | Promissory notes | - | 17 | 17 | - | 55 | 55 | | Lease interest | 214 | - | 214 | 266 | - | 266 | | Changes in FV of derivative warrants | - | 96 | 96 | - | (895) | (895) | | Total Net Finance Charges | 1,621 | 304 | 1,925 | 2,380 | (470) | 1,910 | - Cash finance costs for the nine months ended June 30, 2025, decreased to **$1,621 thousand** from $2,380 thousand in the prior year[47](index=47&type=chunk) - Non-cash finance costs for the nine months ended June 30, 2025, increased to **$304 thousand**, compared to a recovery of $(470) thousand in the prior year, largely due to changes in the fair value of derivative warrants[47](index=47&type=chunk) [12. Lease liability](index=10&type=section&id=12.%20Lease%20liability) Total lease liability decreased to $1,981 thousand, with future undiscounted minimum lease payments extending through 2029 for key facilities | Lease Liability (thousands USD) | June 30, 2025 | September 30, 2024 | | :------------------------------ | :------------ | :----------------- | | Current | 409 | 471 | | Non-current | 1,572 | 1,871 | | Total | 1,981 | 2,342 | | Future Undiscounted Minimum Lease Payments (thousands USD) | | :------------------------------------------------------- | | Year | Amount | | :--- | :----- | | 2025 | 627 | | 2026 | 528 | | 2027 | 544 | | 2028 | 560 | | 2029 | 284 | - The Company's headquarters lease in Mississauga, Ontario, is for 10 years, expiring December 31, 2029. The lab facility lease was renewed for an additional three years starting January 2023[49](index=49&type=chunk)[50](index=50&type=chunk) [13. Share capital](index=11&type=section&id=13.%20Share%20capital) Share capital increased significantly due to new share issuances, with details provided on stock options and warrants, including their fair value determination - Total share capital increased to **$128,062 thousand** as of June 30, 2025, from $116,408 thousand at September 30, 2024[52](index=52&type=chunk) - Outstanding stock options increased to **5,314,789** as of June 30, 2025, with a weighted average exercise price of **$2.58**[58](index=58&type=chunk) - The number of outstanding warrants remained at **1,420,000** as of June 30, 2025, with an exercise price of **$0.63**[62](index=62&type=chunk) [a. Authorized and issued capital stock](index=11&type=section&id=13.1%20Authorized%20and%20issued%20capital%20stock) Authorized and issued capital stock increased significantly, driven by a substantial equity raise in December 2024, including an over-allotment option | Metric (thousands USD) | Number of Common Shares | Amount | | :--------------------- | :---------------------- | :----- | | Balance, September 30, 2023 | 33,832,784 | 115,041 | | Issuance of shares | 10,024 | 30 | | Issuance of shares | 42,157 | 169 | | Exercise of options | 252,700 | 667 | | Balance, September 30, 2024 | 34,137,665 | 116,408 | | Issuance of shares | 5,951,250 | 11,582 | | Stock option exercised | 18,000 | 72 | | Balance, June 30, 2025 | 40,106,915 | 128,062 | - In December 2024, the company issued **5,175,000 common shares** at $2.15, raising **$11,789 thousand** in equity[54](index=54&type=chunk) - An over-allotment option for **776,250 shares** was exercised by underwriters in December 2024[54](index=54&type=chunk) [b. Stock Options](index=12&type=section&id=13.2%20Stock%20Options) Outstanding stock options increased to 5,314,789 with a weighted average exercise price of $2.58, while stock-based compensation expense decreased | Stock Options Activity | Number Outstanding (June 30, 2025) | Weighted Average Exercise Price (June 30, 2025) | | :--------------------- | :--------------------------------- | :---------------------------------------------- | | Outstanding, September 30, 2023 | 4,714,388 | 2.44 | | Granted | 443,000 | 3.42 | | Outstanding, September 30, 2024 | 4,880,288 | 2.52 | | Granted | 484,000 | 2.50 | | Outstanding, June 30, 2025 | 5,314,789 | 2.58 | - The maximum number of common shares issuable upon exercise of stock options was increased to **6,000,000** in March 2022[57](index=57&type=chunk) - Stock-based compensation expense recognized for the nine months ended June 30, 2025, was **$1,246 thousand**, down from $1,669 thousand in the prior year[60](index=60&type=chunk) [c. Warrants](index=13&type=section&id=13.3%20Warrants) Outstanding warrants remained at 1,420,000 with an exercise price of $0.63, and their fair value is determined using the Black-Scholes model | Warrants Activity | Number Outstanding | Exercise Price | | :---------------- | :----------------- | :------------- | | Outstanding, September 30, 2023 | 1,711,924 | $2.38 |\ | Expired | (291,924) | $5.92 |\ | Outstanding, September 30, 2024 | 1,420,000 | $0.63 |\ | Outstanding, June 30, 2025 | 1,420,000 | $0.63 | - The fair value of derivative warrants as of June 30, 2025, was **$251 thousand**, determined using the Black-Scholes pricing model with a risk-free interest rate of **2.62%** and expected volatility of **53.46%**[63](index=63&type=chunk)[64](index=64&type=chunk) - As a result of a reverse stock split, every five warrants were consolidated into one, reducing the number of outstanding warrants from approximately 13.1 million to **2.6 million**[63](index=63&type=chunk) [14. Related Party Transactions](index=14&type=section&id=14.%20Related%20Party%20Transactions) The Company conducts related party transactions, including key management compensation, a research lab facility agreement, and special stock option grants [Key Management Compensation](index=14&type=section&id=14.1%20Key%20Management%20Compensation) Key management compensation for the nine months ended June 30, 2025, totaled $1,038 thousand, including salaries and share-based compensation | Compensation Category (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Salaries, bonus and other benefits | 526 | 864 | | Share based compensation | 512 | 727 | | Total | 1,038 | 1,591 | [Research Lab – Facility Usage Agreement](index=14&type=section&id=14.2%20Research%20Lab%20%E2%80%93%20Facility%20Usage%20Agreement) The research lab facility, controlled by the CEO's family, involves a monthly payment of Cdn $25,265, recognized as a lease liability - In July 2021, the research lab facility was acquired by an investor group controlled by the family of Dr. Sankar Das Gupta (CEO), making the monthly payment of **Cdn $25,265** a related party transaction[67](index=67&type=chunk) - The Facility Usage Agreement was retroactively extended for an additional three years from January 1, 2023, and recognized as a lease liability[68](index=68&type=chunk) [Special Options Grants](index=14&type=section&id=14.3%20Special%20Options%20Grants) Special option grants were made to the Executive Chairman and CEO, contingent on market capitalization targets, with associated expenses recorded - Dr. Sankar Das Gupta was granted **700,000 options** vesting in tranches based on specific target market capitalizations, with an expense of **$175 thousand** recorded for the nine months ended June 30, 2025[70](index=70&type=chunk) - Dr. Rajshekar Das Gupta was granted **900,000 options** in September 2021 and an additional **600,000 options** in April 2023, both contingent on market capitalization targets. An expense of **$78 thousand** was recorded for the 2023 grant for the nine months ended June 30, 2025[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [15. Change in Non-Cash Operating Working Capital](index=15&type=section&id=15.%20Change%20in%20Non-Cash%20Operating%20Working%20Capital) Non-cash operating working capital resulted in a cash outflow of $(12,688) thousand, primarily due to changes in trade receivables and inventories | Category (thousands USD) | June 30, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | | Trade and other receivables | (7,810) | 2,452 | | Inventories | (2,475) | (4,251) |\ | Prepaid expenses and other | (2,097) | (533) |\ | Trade and other payables | (306) | 49 |\ | Total | (12,688) | (2,283) | - The change in trade and other receivables shifted from a cash inflow of $2,452 thousand in 2024 to a cash outflow of **$(7,810) thousand** in 2025[73](index=73&type=chunk) [16. Financial Instruments](index=15&type=section&id=16.%20Financial%20Instruments) The Company manages various financial risks, including capital, credit, liquidity, and market risks, with derivative liabilities fair valued using the Black-Scholes Model - Derivative liabilities (warrants) are fair valued using the Black-Scholes Model, with a fair value of **$251 thousand** as of June 30, 2025[74](index=74&type=chunk)[77](index=77&type=chunk) - The Company's capital management objectives include ensuring its ability to continue as a going concern and providing an adequate return to shareholders[85](index=85&type=chunk) - The Company manages liquidity risk by maintaining liquid funds and access to a revolving credit facility, believing current resources are sufficient for anticipated financial obligations[87](index=87&type=chunk) [Derivative Liabilities](index=15&type=section&id=16.1%20Derivative%20Liabilities) Warrants are fair valued as derivative liabilities using the Black-Scholes Model, incorporating specific risk-free interest rate and volatility assumptions - Warrants are fair valued as derivative liabilities using the Black-Scholes Model[74](index=74&type=chunk) - Key assumptions for fair value determination as of June 30, 2025, include a risk-free interest rate of **2.62%**, expected volatility of **53.46%**, and an expected warrant life of **0.36 years**[74](index=74&type=chunk) [Fair Value](index=15&type=section&id=16.2%20Fair%20Value) Fair value is the exchange price in an orderly transaction, categorized into a three-level hierarchy, with warrants valued at Level 2 - Fair value is defined as the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants[75](index=75&type=chunk) - The fair value hierarchy categorizes inputs into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[76](index=76&type=chunk) | Financial Instrument | Fair Value (June 30, 2025) | Level 1 | Level 2 | Level 3 | | :------------------- | :------------------------- | :------ | :------ | :------ | | Warrants | 251 | - | 251 | - | [Risk Management](index=16&type=section&id=16.3%20Risk%20Management) Risk management processes identify risks and ensure adequate capital, with no significant changes in risk exposure since the prior year - The Company's risk management processes aim to identify risks and ensure adequate capital in relation to those risks[78](index=78&type=chunk) - No significant changes in risk exposure have occurred since the prior year[78](index=78&type=chunk) [Capital risk](index=16&type=section&id=16.4%20Capital%20risk) Capital is managed to ensure adequate resources for product development, with shareholders' equity forming the capital structure, aiming for going concern status - The Company manages its capital to ensure adequate resources for product maintenance and development, with its capital structure consisting of shareholders' equity[79](index=79&type=chunk) - Capital management objectives include ensuring going concern status and providing adequate shareholder returns[85](index=85&type=chunk) [Credit risk and Concentration risk](index=16&type=section&id=16.5%20Credit%20risk%20and%20Concentration%20risk) Credit risk from cash and receivables is managed through policies, with one customer representing a significant concentration of revenue and receivables - Credit risk arises from cash and cash equivalents, trade and other receivables, managed through credit limits and approval policies[83](index=83&type=chunk)[84](index=84&type=chunk) - For the nine months ended June 30, 2025, one customer accounted for **52% of revenue** and **31% of accounts receivable**[86](index=86&type=chunk) [Liquidity risk](index=17&type=section&id=16.6%20Liquidity%20risk) Liquidity risk is managed by maintaining liquid funds and access to a revolving credit facility, with most financial liabilities due within 90 days - Liquidity risk is managed by maintaining liquid funds and access to a revolving credit facility, with most financial liabilities due within 90 days[87](index=87&type=chunk) | Contractual Maturities (thousands USD) | 2025 | 2026 | 2027 | 2028 | 2029 & beyond | Total | | :------------------------------------- | :--- | :--- | :--- | :--- | :------------ | :---- | | Trade and other payables | 9,830 | - | - | - | - | 9,830 | | Lease liability | 184 | 574 | 532 | 548 | 706 | 2,544 | | Working capital facility | - | - | - | 18,834 | - | 18,834 | | Other payable | 167 | 187 | 220 | 258 | 758 | 1,590 | | Total | 10,181 | 761 | 752 | 19,640 | 1,464 | 32,798 | [Market risk](index=17&type=section&id=16.7%20Market%20risk) Market risk includes market price and currency risk, impacting financial asset and liability fair values, with profitability linked to competitor pricing - Market risk includes market price risk and currency risk, affecting the fair value of financial assets and liabilities[89](index=89&type=chunk) - The Company's profitability is linked to the market price of its primary competitors' products[89](index=89&type=chunk) [Interest rate risk](index=17&type=section&id=16.8%20Interest%20rate%20risk) Variable interest debt exposes the Company to interest rate risk, impacting future expenses and cash flows, without derivative mitigation - The Company has variable interest debt, meaning changes in interest rates will affect future interest expense and cash flows[90](index=90&type=chunk) - The Company does not use derivative instruments to mitigate interest rate exposure[90](index=90&type=chunk) [Foreign currency risk](index=17&type=section&id=16.9%20Foreign%20currency%20risk) Foreign currency risk arises from multiple functional currencies and transactions, with a 2% USD/CAD rate change impacting net gain/loss by $310 thousand - The Company is exposed to foreign currency risk due to its functional currency (CAD for Electrovaya Inc., USD for subsidiaries) and transactions in CAD, USD, and Euro[91](index=91&type=chunk)[92](index=92&type=chunk) - A **2% change** in the US dollar to Canadian foreign exchange rate would change the recorded net gain (loss) by **$310 thousand** as of June 30, 2025[93](index=93&type=chunk) [17. Contingencies](index=18&type=section&id=17.%20Contingencies) The Company faces contingencies, including tax credit disputes and a Ministry of Energy claim, which management believes will not materially affect financial condition - The Company received a Notice of Confirmation from the CRA regarding 2014 and 2015 SRED reassessment for **$299 thousand** and **$302 thousand**, which is being appealed[94](index=94&type=chunk) - The Province of Ontario filed a claim for **$655 thousand** against Electrovaya Corp. related to a Smart Grid Fund program dispute, which the Company is disputing[95](index=95&type=chunk) - Management believes the resolution of existing business-related claims will not have a material adverse effect on the Company's financial condition[96](index=96&type=chunk) [a. Refundable Ontario Investment Tax Credits](index=18&type=section&id=17.1%20Refundable%20Ontario%20Investment%20Tax%20Credits) The Company is appealing a CRA Notice of Confirmation for 2014 and 2015 SRED reassessments totaling $601 thousand, which is fully provided for - The Company received a Notice of Confirmation from the CRA on July 22, 2022, for 2014 and 2015 SRED reassessments totaling **$601 thousand** (Cdn$775 thousand) including interest[94](index=94&type=chunk) - The balance owing has been fully provided for in other payables, and the Company is appealing the decision[94](index=94&type=chunk) [b. Ministry of Energy](index=18&type=section&id=17.2%20Ministry%20of%20Energy) The Province of Ontario claimed $655 thousand against Electrovaya Corp. for a Smart Grid Fund dispute, which the Company is actively disputing - On May 28, 2018, the Province of Ontario claimed **$655 thousand** (Cdn $830 thousand) against Electrovaya Corp. related to a Smart Grid Fund program dispute[95](index=95&type=chunk) - A Statement of Defense disputing the claim was filed on March 21, 2019, and no further steps have been taken by the province[95](index=95&type=chunk) [c. Other Contingencies](index=18&type=section&id=17.3%20Other%20Contingencies) The Company is involved in various business-related claims, with management believing their resolution will not materially affect financial condition - The Company is party to business-related claims in the normal course of business, with potential outcomes not yet determinable[96](index=96&type=chunk) - Management intends to defend these actions and believes their resolution will not materially adversely affect the Company's financial condition[96](index=96&type=chunk) [18. Segment and Customer Reporting](index=18&type=section&id=18.%20Segment%20and%20Customer%20Reporting) Electrovaya Inc. operates as a single segment in power technology, with significant revenue growth driven by large format batteries, primarily in the United States - The Company operates in a single segment: the development, manufacturing, and marketing of power technology products[97](index=97&type=chunk) | Revenue Category (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------- | :------------------------------ | :------------------------------ | | Large format batteries | 42,514 | 32,452 | | Other | 806 | 608 | | Total Revenue | 43,320 | 33,060 | | Geographical Revenue (thousands USD) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | | Canada | 2,172 | 1,505 | | United States | 41,042 | 31,398 | | Others | 106 | 157 | | Total Revenue | 43,320 | 33,060 | [19. Other payables](index=19&type=section&id=19.%20Other%20payables) Other payables relate to TPC projects, with an amended agreement in September 2024 leading to new debt and a repayment schedule through 2031 - The TPC contribution agreement was amended in September 2024, resulting in the de-recognition of old debt and recognition of new debt with a revised payment schedule[101](index=101&type=chunk) | TPC Debt Changes (thousands USD) | June 30, 2025 | September 30, 2024 | | :------------------------------- | :------------ | :----------------- | | Opening balance | 379 | 984 | | Debt extinguishment | - | (1,474) | | Recognition of new debt | - | 370 | | Interest accretion on new debt | 99 | 9 | | Ending balance | 469 | 379 | | Long-term portion | 425 | 343 | | TPC Payment Schedule (thousands USD) | | :----------------------------------- | | Year | Amount | | :--- | :----- | | 2025 | 155 | | 2026 | 132 | | 2027 | 132 | | 2028 | 132 | | 2029 | 132 | | 2030 | 132 | | 2031 | 132 | [20. Subsequent event](index=20&type=section&id=20.%20Subsequent%20event) A significant portion of the Company's outstanding warrants were exercised in August 2025, subsequent to the reporting period - Out of **912,841 warrants** outstanding as of June 30, 2025, **845,000 warrants** were exercised at CDN $5.30 in August 2025[104](index=104&type=chunk)

Core Viewpoint - Electrovaya Inc. reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, representing a 50% earnings surprise [1]. Financial Performance - The company posted revenues of $17.13 million for the quarter ended June 2025, which aligns with the Zacks Consensus Estimate and shows an increase from $10.27 million year-over-year [2]. - Over the last four quarters, Electrovaya has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2]. Stock Performance - Electrovaya shares have increased approximately 102.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3]. Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.05 on $21 million in revenues for the upcoming quarter and $0.10 on $64.19 million in revenues for the current fiscal year [7]. - The estimate revisions trend for Electrovaya was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]. Industry Context - The Electronics - Miscellaneous Products industry, to which Electrovaya belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $17.1 million, a 67% increase from $10.3 million in Q3 2024, with year-to-date revenue of $43.3 million compared to $33.1 million in the prior year, reflecting a 31% increase [16][17] - Adjusted EBITDA for Q3 2025 was $2.9 million, representing 17% of revenue, compared to $600,000 in the prior year [20][21] - The company achieved a net profit of CAD 0.9 million for Q3 2025, a significant improvement from a net loss of CAD 0.3 million in Q3 2024 [21] Business Line Data and Key Metrics Changes - The material handling sector continues to drive growth, with over $21 million in orders secured during the quarter, totaling over $65 million in the nine months ending June 30, 2025 [6][16] - The company is expanding into new verticals, including robotics and airport ground equipment, with significant shipments expected to start soon [10][34] Market Data and Key Metrics Changes - The robotics sector is experiencing rapid growth, with advancements in AI technologies and e-commerce driving demand for battery systems [9] - The defense sector is identified as a high-value growth opportunity, with ongoing collaborations with global defense contractors [13] Company Strategy and Development Direction - The company is focused on expanding manufacturing capabilities in Jamestown, New York, with production expected to commence by mid-next year [25] - Investments in domestic manufacturing and supply chains are prioritized to meet the needs of sensitive customers, particularly in the defense sector [26] - The company plans to launch specialized energy storage products and recurring revenue stream products in fiscal year 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong margins and continued revenue growth, with a positive outlook for Q4 and beyond [22][24] - The company is optimistic about the potential contributions from new verticals, although growth rates in these areas remain uncertain [71] Other Important Information - The company has received a cash inflow of $3.2 million from the execution of warrants, enhancing liquidity [23] - The company is actively developing a next-generation ceramic separator for its battery products, aimed at improving performance and reducing costs [27] Q&A Session Summary Question: How will the revenue makeup change in 2026 due to new verticals? - Management indicated that new verticals, particularly robotics and airport ground equipment, will significantly contribute to revenue in fiscal 2026, with shipments expected to start soon [33][34] Question: Is the customer makeup similar in new verticals as in material handling? - Most new customers are OEMs, similar to the material handling space, with some overlap in energy storage solutions [36] Question: What is the status of energy storage products? - A separate launch for energy storage products is planned soon, with deployments expected in calendar year 2026 [42][43] Question: What is the capacity addition status in Mississauga and Jamestown? - A second shift has been added in Mississauga, and operations in Jamestown are growing to meet increased order intake [47] Question: What is the outlook for order momentum in Q4? - Order intake has continued to be strong, particularly from key end customers, providing confidence for future growth [49] Question: What is the company's approach to the robotics market? - The company is engaged with several large OEMs in the robotics sector, focusing on battery systems for warehouse and factory applications [56][104] Question: What is the status of the solid-state battery R&D? - The company is investing in improving lab conditions to enhance solid-state battery performance, targeting applications in aerospace and drones [110]