Group 1 - The focus has shifted from primarily tech stocks to include offshore drilling, supply industry, and shipping sectors such as tankers, containers, and dry bulk [1] - There is an emerging interest in the fuel cell industry, which is still in its nascent stage [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - The individual successfully navigated significant market events including the dotcom bubble burst, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Core Viewpoint - Electrovaya Inc. reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share, and compared to a loss of $0.02 per share a year ago, indicating a -33.33% earnings surprise [1] Financial Performance - The company posted revenues of $15.02 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 7.10%, and showing an increase from year-ago revenues of $10.7 million [2] - Over the last four quarters, Electrovaya has surpassed consensus EPS estimates two times [2] Stock Performance - Electrovaya shares have increased approximately 11.3% since the beginning of the year, outperforming the S&P 500's gain of 0.1% [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $18.69 million, and for the current fiscal year, it is $0.10 on revenues of $66.68 million [7] Industry Context - The Electronics - Miscellaneous Products industry, to which Electrovaya belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Viewpoint - Electrovaya Inc. (ELVA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For the fiscal year ending September 2025, Electrovaya Inc. is projected to earn $0.10 per share, reflecting a 350% increase from the previous year's reported figure [8]. Recent Trends in Earnings Estimates - Over the past three months, the Zacks Consensus Estimate for Electrovaya Inc. has risen by 46.4%, indicating a positive trend in earnings expectations [8]. - The upgrade to Zacks Rank 2 places Electrovaya in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - Electrovaya (ELVA) is positioned to enter a multi-year revenue growth cycle, with a price target set at $9.70, indicating a potential upside of 280% from the current price of $2.50 [1] Company Analysis - The focus is on small to mid-cap companies that possess disruptive technology, with an emphasis on competitive analysis and the backgrounds of founders [2] - The investment strategy typically spans a two-year timeframe, but investments may be held for longer periods [2] - The analyst has a strong background in investment, having experienced various market cycles and learned the importance of selecting winning stocks while avoiding losses [2] Investment Position - The analyst holds a beneficial long position in ELVA shares through stock ownership, options, or other derivatives [3]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $11.2 million, a decrease from $12.1 million in Q1 2024, attributed to delivery timing rather than production or order volume [20] - Gross margin for the quarter was 30.5%, an increase from 29.2% in the prior quarter, with battery system margin slightly higher at 30.8% [22] - Adjusted EBITDA was $0.5 million, flat compared to the prior year, marking seven consecutive quarters of positive adjusted EBITDA [24] - Net loss for the quarter was $0.4 million, compared to $0.2 million in the prior year, with a positive cash flow from operating activities of $1 million [25][26] Business Line Data and Key Metrics Changes - The company secured a $51 million direct loan approval from the Export-Import Bank of the United States to expand lithium-ion cell manufacturing [9] - An equity raise generated gross proceeds of approximately $12.8 million, strengthening the balance sheet and financial position [10] - Sales momentum was noted from material handling OEM partners and end customers, with a leasing program showing high sales interest [14][15] Market Data and Key Metrics Changes - Interest in Electrovaya's products is growing in Japan, particularly through partnerships with Sumitomo Corporation, with expectations of material contracts [16] - The company is on track to ship its first modules to a global construction OEM in Japan later this quarter [15] Company Strategy and Development Direction - The company is focused on domestic manufacturing, aligning with global trends and U.S. policies [28] - Plans to accelerate battery system assembly operations at the Jamestown facility, with commercial operations expected to commence by April 2025 [12] - A robust tariff mitigation strategy is being implemented to address potential trade barriers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for success, citing strong technology and market focus on domestic manufacturing [28] - The company anticipates a ramp-up in production and revenue growth throughout fiscal 2025, maintaining a revenue guidance of over $60 million [22][66] Other Important Information - The company ended Q1 2025 with positive net working capital of $12.6 million, compared to negative net working capital of $0.4 million in the prior year [25] - Total debt decreased to $15.3 million from $18.4 million in the prior year, with management focused on conservative cash management [26] Q&A Session Summary Question: Are existing facilities becoming more of an opportunity for customers? - Management confirmed that existing facilities represent a larger opportunity size, with expectations for more customers to follow suit [32][33] Question: Will U.S. administration policies lead to delays in orders? - Management has not seen any delays thus far, with some customers trying to place orders sooner due to potential price increases [35] Question: Update on EXIM Bank loan finalization? - Management indicated that they are working on loan documents and expect to close the loan this quarter [39][40] Question: Interest from Sumitomo Corporation? - Most interest is coming from the construction space, with ongoing discussions with multiple OEMs in Japan [42] Question: Guidance for revenue expectations throughout fiscal 2025? - Management expects a gradual increase in revenue each quarter, with a step-up anticipated based on backlog [45][47] Question: Update on new markets and growth opportunities? - Management highlighted various opportunities in robotics, mining, and defense, with a focus on seeding opportunities for future growth [52][54] Question: Status of solid-state battery development? - Solid-state battery technology is still in the lab, with ongoing optimization before customer testing [91] Question: Capacity and ramp-up plans for Jamestown? - The Jamestown facility has a capacity of approximately $200 million, with battery system assembly starting in April and cell production in mid-2026 [98]

Financial Performance - Electrovaya Inc. reported a quarterly loss of $0.01 per share, which was better than the Zacks Consensus Estimate of a loss of $0.02, representing an earnings surprise of 50% [1] - The company posted revenues of $11.17 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.46%, and down from $12.09 million year-over-year [2] - Over the last four quarters, Electrovaya has surpassed consensus EPS estimates two times but has not beaten revenue estimates [2] Stock Performance - Electrovaya shares have lost approximately 4.2% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The current Zacks Rank for Electrovaya is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $16.89 million, and for the current fiscal year, it is $0.06 on revenues of $66.92 million [7] - The trend of earnings estimate revisions for Electrovaya is mixed, which could change following the recent earnings report [6] Industry Context - Electrovaya operates within the Zacks Electronics - Miscellaneous Products industry, which is currently ranked in the bottom 46% of over 250 Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Offering Details - Electrovaya Inc. is offering a total of 5,175,000 common shares at a price of US$2.01025 per share[54] - The aggregate purchase price for the closing shares will be determined based on the number of shares purchased by each underwriter as specified in Schedule I[54] - An over-allotment option is granted to the representative to purchase up to 776,250 additional common shares at the same share purchase price[56] - The offering is expected to be made public as soon as deemed advisable by the representative[2] - The closing of the purchase and sale of the shares is contingent upon the satisfaction of certain conditions outlined in the agreement[55] - The offering is part of a Canadian Base Shelf Prospectus that qualifies for distribution of up to US$100,000,000 of the company's securities[7] - The company will deliver the shares to the underwriters upon receipt of the closing purchase price in US dollars[55] - The offering is structured to comply with Canadian Securities Laws and will be filed with the Canadian Securities Administrators[11] Regulatory Compliance - The Company has filed a Registration Statement with the SEC, which became effective on September 25, 2024, for the registration of Public Shares[73] - The Canadian Base Shelf Prospectus and the Canadian Prospectus Supplement complied with applicable Canadian Securities Laws at the time of filing[74] - The Company has filed all required reports under applicable Canadian Securities Laws and the Securities Act, ensuring compliance for the past two years[83] - Financial statements included in the SEC Reports comply with applicable accounting requirements and fairly present the Company's financial position[83] - The Company is in compliance with all applicable requirements of the Sarbanes-Oxley Act and similar Canadian legislation[95] - The Company is currently in compliance with all listing and maintenance requirements of the Trading Market[99] - The Company will comply with all legal requirements necessary to continue to qualify the Public Shares for distribution in each Canadian Jurisdiction[126] Shareholder and Financial Information - The Company has an unlimited number of Common Shares issuable, and all corporate actions required for the authorization, issuance, and sale of the Public Shares have been duly taken[79] - The Closing Shares have been approved for listing on NASDAQ, subject only to official notice of issuance[65] - The Public Shares will be duly and validly issued, fully paid, and non-assessable when issued and paid for[79] - The Company has not declared any dividends or made distributions to shareholders since the latest audited financial statements[84] - The fair saleable value of the Company's assets exceeds the amount required to be paid on its existing debts and liabilities[104] - The Company has made or filed all required tax returns and has paid all material taxes due[107] - The Company has not made any significant acquisitions in the current or prior financial years that require additional financial statements[120] Internal Controls and Assets - The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance regarding financial reporting[95] - The Company possesses all necessary regulatory permits to conduct its business, with no notices of revocation or modification received[89] - The Company has good and marketable title to all material assets, free of significant liens[90] - There have been no material adverse events or liabilities incurred since the latest audited financial statements[84] - No material adverse change has occurred in the Company's business condition or prospects prior to the Closing Date[64] Intellectual Property and Security - The Company has taken reasonable measures to protect its intellectual property rights, which are enforceable and not subject to known infringements[91] - There has been no security breach or compromise of the Company's IT systems and data[115] - The Company is in compliance with all applicable data privacy and security laws and regulations[117] - The Company has received all necessary permits and licenses required under Environmental Laws[118] Indemnification and Liability - The Company agrees to indemnify Underwriters against any losses arising from untrue statements in the Registration Statement or Prospectus[153] - Underwriters are only liable to indemnify the Company for amounts not exceeding the underwriting discounts and commissions applicable to the Public Shares purchased[156] - Contribution rights are established for indemnification claims, with Underwriters contributing based on their underwriting discount percentage[158] Miscellaneous Provisions - The Company will apply the net proceeds from the Offering in a manner consistent with the application described under the caption "Use of Proceeds" in the Prospectus and the Canadian Prospectus[136] - The Company will reimburse Roth for its reasonable out-of-pocket expenses related to the Offering in an amount up to US$175,000[135] - The Company will deliver to the Underwriters complete conformed copies of the Registration Statement and Canadian Prospectus as requested[123] - The Company will notify the Underwriters promptly if any event occurs that makes the Prospectus or Canadian prospectus misleading[125] - The Company will make generally available to its security holders an earnings statement covering a period of at least twelve consecutive months beginning after the Execution Date[137] - The Company will not issue any press releases or engage in publicity without the Representative's prior written consent for a specified period[140] - The Company will prepare and file any supplementary material that may be necessary or advisable at the request of the Underwriters[126] - The Company is prohibited from entering into any Variable Rate Transaction for 90 days after the Closing Date[145] - The Company has not relied on Underwriters for legal, tax, or accounting advice related to the Offering[147] - If any Underwriter fails to purchase the agreed shares, the Representative will have 36 hours to procure other Underwriters to fulfill the purchase[150] - If the defaulting Underwriter's failure exceeds 10% of the shares, the Company has the right to terminate the Agreement without liability[150] - The Representative can terminate the Agreement if there are material disruptions in the securities markets or if the Company sustains a material loss[162] Underwriter Contributions - The total closing shares issued by the underwriters amount to 5,175,000 shares, with a total closing purchase price of US$10,403,043.75[185] - Roth Capital Partners, LLC is responsible for 2,587,500 shares, contributing US$5,201,521.87 to the total[185] - Craig-Hallum Capital Group LLC and Raymond James Ltd. each acquired 1,293,750 shares, with respective contributions of US$2,600,760.94[185]

Core Viewpoint - Electrovaya Inc. has announced a public offering of 5,175,000 common shares priced at US$2.15 per share, aiming to raise approximately US$11.1 million, potentially US$12.8 million if the over-allotment option is fully exercised [1][3]. Group 1: Offering Details - The offering is managed by Roth Capital Partners as the sole book-running manager, with Raymond James Ltd. and Craig-Hallum Capital Group LLC as co-lead managers [2]. - The gross proceeds from the offering are expected to be approximately US$11.1 million, or US$12.8 million if the over-allotment option is exercised in full [3]. - The offering is expected to close on or about December 18, 2024, subject to customary closing conditions [4]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to satisfy cash collateral conditions for a loan approved by the Export-Import Bank of the United States, repay existing working capital facility amounts, and cover costs related to financing and the purchase of the Jamestown, New York manufacturing facility [3]. Group 3: Regulatory and Compliance - The offering is made in the United States under a shelf registration statement declared effective by the SEC and will be qualified for distribution in Canada, excluding the Province of Québec [5]. - A preliminary prospectus supplement has been filed with the SEC and will be available for free on the SEC's website [6].

Financial Data and Key Metrics Changes - Revenue for fiscal 2024 was $44.6 million, a slight increase from $44.1 million in fiscal 2023, with Q4 revenue at $11.6 million [26] - Gross margin improved to 30.7% in fiscal 2024 from 26.9% in the prior fiscal year, translating into an additional $1.8 million of gross profit [27] - Adjusted EBITDA grew by $0.8 million to $4.1 million for the year, with Q4 adjusted EBITDA at $1.5 million, marking six consecutive quarters of positive adjusted EBITDA [29] - Net loss for fiscal 2024 was $1.4 million, flat compared to the prior year, with positive cash flow from operating activities of $1 million, a significant improvement from cash used of $5.2 million in the prior year [30] Business Line Data and Key Metrics Changes - The battery system margin was slightly higher at 31.3% for the year, indicating strong operational performance [28] - The company experienced a flat revenue performance despite delays from customers, reflecting a higher degree of customer diversification [18] Market Data and Key Metrics Changes - There is increasing demand for material handling battery products, particularly from newly constructed distribution centers and retrofit opportunities [15] - A significant order was received from a Fortune 500 retailer to equip two distribution centers, with plans for further conversions [16] Company Strategy and Development Direction - The company secured a $51 million direct loan from the Export-Import Bank of the United States to expand lithium-ion cell manufacturing in Jamestown, New York, which is expected to enhance capacity and margins [11] - The Jamestown facility is anticipated to start commercial cell manufacturing in the first half of 2026, with battery system manufacturing beginning in 2025 [14] - The company is focusing on vertical integration to improve gross margins and reduce lead times, which will facilitate larger purchases from customers [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2025, expecting revenue growth to exceed $60 million driven by robust customer demand [11] - The company is well-positioned to navigate potential tariff impacts due to its domestic manufacturing capabilities [56] - Management highlighted the importance of domestic manufacturing and the potential for improved margins with the Jamestown facility coming online [58] Other Important Information - The company is developing new products based on its Infinity technology and progressing with solid-state battery development, with expectations for product launches in 2025 [23][24] - The company has established supply agreements for high voltage battery systems in various applications, including defense and electrified locomotives [22] Q&A Session Summary Question: What is the level of visibility into customer orders for fiscal '25? - Management indicated that the Fortune 100 customer, which typically orders over $10 million annually, had a disappointing fiscal 2024 but has already started ordering for 2025, with expectations to return to historical levels [40] Question: How does the company plan to approach fiscal '25 revenue guidance? - Management stated that they have been conservative in their approach and will provide updates each quarter, with expectations to ramp production starting in January [46] Question: How will the Jamestown facility impact gross margins? - Management expects vertical integration to improve margins by eliminating costs associated with overseas contract manufacturers and shipping [60] Question: How is the company addressing tariff-related issues? - Management believes the Jamestown operations will insulate the company from tariff impacts, allowing for domestic production [56] Question: What are the expectations for adjusted EBITDA margins once Jamestown is operational? - Management anticipates that Jamestown will be OpEx light, contributing significantly to EBITDA as revenue increases [91]

Core Viewpoint - The market is mispricing Electrovaya (NASDAQ: ELVA), with an estimated value of nearly $10 per share while currently trading at $2 [1] Company Analysis - The next earnings call for Electrovaya is anticipated in January, although the exact date has not been announced [1] - The focus is on small to mid-cap companies with disruptive technology, indicating a strategic investment approach [1] - The analyst emphasizes the importance of competitive analysis and researching company founders and their previous endeavors [1] Investment Strategy - The investment horizon is typically two years, but positions may be held for longer periods depending on performance [1] - The analyst has a background in investment, having experienced various market cycles, which informs their investment strategy [1] Historical Context - The analyst's family has a history of investing, with lessons learned from past market downturns, including the 1929 stock market crash and the oil crises of the 1970s [1] - The analyst's focus has shifted to the electrification of various sectors, reflecting current market trends [1]