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]

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]

Safe Harbor Statement Corporate Overview August - 2025 (All figures in USD) NASDAQ : ELVA TSX : ELVA Forward-looking statements: This presentation contains forward-looking statements and forward looking information (collectively, "forward-looking statements"), including statements that relate to, among other things, the size of the Company's addressable market and target verticals and applications, margin performance capabilities of new target operating segments, future operating jurisdictions including pla ...

Group 1 - New industries often lead to significant capital loss despite their claims of disruption [1] - Shri Upadhyaya is an independent investor with over 15 years of experience in stocks and options [1] - Upadhyaya emphasizes the importance of personal investment strategies based on deep research and independent thinking [1] Group 2 - Upadhyaya's investment approach includes focusing on under-the-radar small caps with asymmetric upside and low-beta stocks [1] - He practices a strategy of pairing long positions with targeted short positions to manage risk effectively [1] - This investment methodology has contributed to a smoother volatility and improved long-term compound annual growth rate (CAGR) [1]

Group 1 - Electrovaya Inc. is currently in the execution phase, focusing on integrating its advanced battery technology into new industries [1] - The company has secured multiple tack-on deals, including a supply agreement with Janus Electric for interchangeable battery packs [1] Group 2 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of industry experience, contributing to the investment ecosystem [1]

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]

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) As of March 31, 2025, total assets increased to **$45.4 million** from **$39.5 million**, while total liabilities decreased to **$24.3 million**, resulting in total equity more than doubling to **$21.1 million** Consolidated Statement of Financial Position (in thousands of U.S. dollars) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **35,302** | **29,418** | | Trade and other receivables | 18,073 | 11,292 | | Inventories | 7,980 | 9,698 | | **Total Assets** | **45,423** | **39,482** | | **Total Current Liabilities** | **9,068** | **28,531** | | Working capital facilities | - | 16,283 | | **Total Liabilities** | **24,293** | **30,897** | | Long term loan | 13,087 | - | | **Total Equity** | **21,130** | **8,585** | [Condensed Interim Consolidated Statements of Earnings](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Earnings) Net income reached **$408 thousand** for the six months ended March 31, 2025, a significant turnaround from a prior-year loss, supported by increased revenue Statement of Earnings Highlights (in thousands of U.S. dollars) | Metric | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | 26,187 | 22,786 | | Gross Margin | 8,081 | 7,254 | | Income from operations | 1,206 | 603 | | Net income (loss) for the period | 408 | (1,047) | | Basic income (loss) per share | 0.01 | (0.03) | Quarterly Performance (in thousands of U.S. dollars) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | 15,018 | 10,695 | | Gross Margin | 4,673 | 3,725 | | Net income (loss) for the period | 828 | (839) | [Condensed Interim Consolidated Statements of Comprehensive income (Loss)](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Comprehensive%20income%20%28Loss%29) Total comprehensive income improved to **$218 thousand** for the six months ended March 31, 2025, a significant turnaround from a prior-year loss, primarily due to positive net income Comprehensive Income (Loss) Summary (in thousands of U.S. dollars) | Description | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net income (loss) for the period | 408 | (1,047) | | Cumulative translation adjustment | (190) | (54) | | **Other comprehensive income (loss) for the period** | **218** | **(1,101)** | [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 **$21.1 million** by March 31, 2025, primarily driven by **$11.6 million** from share issuance and net income - The primary drivers for the increase in total equity were the issuance of shares for **$11.6 million** and a net income of **$408 thousand**[5](index=5&type=chunk) Changes in Equity (in thousands of U.S. dollars) | Description | Six Months Ended Mar 31, 2025 | | :--- | :--- | | Balance – October 01, 2024 | 8,585 | | Issuance of shares | 11,624 | | Stock-based compensation | 703 | | Net income for the period | 408 | | Cumulative translation adjustment | (190) | | **Balance – March 31, 2025** | **21,130** | [Condensed Interim Consolidated Statement of Cash Flows](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash outflow was **$443 thousand** for the six months ended March 31, 2025, primarily due to operating activities, partially offset by **$5.2 million** from financing Cash Flow Summary (in thousands of U.S. dollars) | Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash from (used in) operating activities | (4,752) | 322 | | Cash from (used in) investing activities | (889) | (395) | | Cash from (used in) financing activities | 5,198 | 86 | | **Increase (decrease) in cash and cash equivalents** | **(443)** | **13** | | **Cash and cash equivalents at end of period** | **283** | **1,116** | - Financing activities included a significant issuance of shares for **$11.6 million**, proceeds from new working capital facilities of **$29.5 million**, and substantial repayments of old facilities and loans totaling over **$34 million**[7](index=7&type=chunk) Notes to Unaudited Condensed Interim Consolidated Financial Statements [Note 1: Reporting Entity](index=4&type=section&id=Note%201%3A%20Reporting%20Entity) Electrovaya Inc., a Canadian company, specializes in designing, developing, and manufacturing Lithium-Ion batteries for energy storage and electric transportation - The company is domiciled in Ontario, Canada, and its primary business is the design, development, and manufacturing of Lithium-Ion batteries and battery systems[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Note 2: Basis of Presentation](index=5&type=section&id=Note%202%3A%20Basis%20of%20Presentation) Financial statements are prepared under IAS 34 on a going concern basis, showing a net profit of **$408 thousand** and positive working capital of **$26.2 million** - The financial statements comply with International Accounting Standard 34, "Interim Financial Reporting"[13](index=13&type=chunk) Key Financial Health Indicators (in thousands of U.S. dollars) | Metric | As of/For Six Months Ended Mar 31, 2025 | As of/For Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash used in operations | (4,752) | 322 (provided) | | Working Capital | 26,234 | 887 (as of Sep 30, 2024) | | Net Profit/(Loss) | 408 | (1,047) | [Note 4: Trade and Other Receivables](index=6&type=section&id=Note%204%3A%20Trade%20and%20Other%20Receivables) Net trade and other receivables increased to **$18.1 million** by March 31, 2025, with **84.9%** being current and minimal amounts over 90 days past due Trade and Other Receivables (in thousands of U.S. dollars) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Net trade receivables | 16,935 | 10,513 | | Other receivables | 1,138 | 779 | | **Total** | **18,073** | **11,292** | - As of March 31, 2025, **84.90%** of trade receivables were current and only **0.71%** were over 90 days past due[24](index=24&type=chunk) [Note 5: Inventories](index=7&type=section&id=Note%205%3A%20Inventories) Total inventories decreased to **$8.0 million** by March 31, 2025, primarily due to reduced raw materials, with a **$212 thousand** provision for obsolete stock Inventory Breakdown (in thousands of U.S. dollars) | Category | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Raw materials | 7,025 | 8,433 | | Finished goods | 942 | 941 | | **Total** | **7,980** | **9,698** | - A provision for slow-moving and obsolete inventories of **$212 thousand** was included in direct manufacturing costs for the period ended March 31, 2025[29](index=29&type=chunk) [Note 9: Working Capital Facilities and Promissory Notes](index=8&type=section&id=Note%209%3A%20Working%20Capital%20Facilities%20and%20Promissory%20Notes) The company secured a new **$20 million** working capital facility and a **$51 million** loan approval, while fully repaying all promissory notes by December 2024 - In March 2025, the company entered a new three-year credit agreement with Bank of Montreal for up to **$20 million**, plus a **$5 million** accordion, used to pay off the outstanding balance with Cortland[39](index=39&type=chunk) - The company received a loan approval for **$51 million** from the Export-Import Bank of the United States for the Jamestown facility, with no funds drawn as of March 31, 2025[40](index=40&type=chunk) - The promissory note balance of **$519 thousand** as of September 30, 2024 was fully repaid by December 2024[41](index=41&type=chunk) [Note 13: Share Capital, Stock Options, and Warrants](index=11&type=section&id=Note%2013%3A%20Share%20Capital%2C%20Stock%20Options%2C%20and%20Warrants) Share capital increased to **$128.1 million** due to a **$11.6 million** equity raise, with **4.84 million** stock options and **1.42 million** warrants outstanding - In December 2024, the company raised **$11.8 million** in equity by issuing **5,175,000** common shares at **$2.15** per share and an additional **776,250** shares through an over-allotment option[51](index=51&type=chunk)[58](index=58&type=chunk) Outstanding Options and Warrants | Instrument | Number Outstanding (as of Mar 31, 2025) | Weighted Avg. Exercise Price | | :--- | :--- | :--- | | Stock Options | 4,842,789 | $2.37 | | Share Warrants | 1,420,000 | $0.63 | [Note 14: Related Party Transactions](index=14&type=section&id=Note%2014%3A%20Related%20Party%20Transactions) Key management compensation decreased to **$684 thousand**, and special performance-based stock options were granted to executives, alongside a facility usage agreement with a related entity Key Management Compensation (in thousands of U.S. dollars) | Category | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Salaries, bonus and other benefits | 431 | 432 | | Share based compensation | 253 | 486 | | **Total** | **684** | **918** | - The company has a facility usage agreement with a research firm acquired by an investor group controlled by the family of the CEO and Chairman, with monthly payments of **Cdn $25,265**[67](index=67&type=chunk)[68](index=68&type=chunk) - Special stock options were granted to Dr. Sankar Das Gupta (**700,000** options) and Dr. Rajshekar Das Gupta (**1,500,000** options in total) which vest upon reaching specific market capitalization targets[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Note 16: Financial Instruments and Risk Management](index=15&type=section&id=Note%2016%3A%20Financial%20Instruments%20and%20Risk%20Management) The company faces credit, liquidity, and market risks, with significant customer concentration, and manages liquidity through cash flow and a new revolving credit facility - The company faces significant customer concentration risk, with one customer accounting for **61%** of revenue and **49%** of accounts receivable as of March 31, 2025[87](index=87&type=chunk) - Liquidity risk is managed through operating cash flow and a revolving credit facility, with contractual maturities of financial liabilities totaling **$26.3 million**[88](index=88&type=chunk)[89](index=89&type=chunk) - Derivative warrant liabilities are measured at fair value using the Black-Scholes model and classified as Level 2, valued at **$113 thousand** as of March 31, 2025[78](index=78&type=chunk) [Note 17: Contingencies](index=18&type=section&id=Note%2017%3A%20Contingencies) The company is disputing two contingencies: a CRA SRED reassessment of **$601 thousand** and a **Cdn $830 thousand** claim from the Province of Ontario - The company is appealing a CRA notice regarding 2014 and 2015 SRED reassessments totaling approximately **$601 thousand** plus interest, believing the amounts may be reversed or reduced[95](index=95&type=chunk) - The Province of Ontario has a claim against the company for **Cdn $830 thousand**, which the company is disputing with no further provincial action taken[96](index=96&type=chunk) [Note 18: Segment and Customer Reporting](index=18&type=section&id=Note%2018%3A%20Segment%20and%20Customer%20Reporting) Operating as a single segment, the company's revenue of **$26.2 million** is primarily from large format batteries, with **98%** of revenue generated in the United States - The company operates in a single reportable segment[98](index=98&type=chunk) Revenue by Product Type (Six Months Ended, in thousands of U.S. dollars) | Product Type | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Large format batteries | 25,460 | 22,341 | | Other | 727 | 445 | | **Total** | **26,187** | **22,786** | Revenue by Geography (Six Months Ended, in thousands of U.S. dollars) | Region | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | United States | 25,738 | 21,621 | | Canada | 348 | 1,120 | | Others | 101 | 45 | | **Total** | **26,187** | **22,786** |

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]