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]

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].