Leadership Background — David Shiue LOS ANGELES, Jan. 6, 2026 /PRNewswire/ -- AZIO AI, Inc. ("AZIO AI"), a next-generation artificial intelligence infrastructure and compute platform, today announced growing support from a group of new strategic investors, including large corporate participants across the AI data-center and supply-chain ecosystem, as the Company advances toward completion of its proposed merger and related equity transactions with Envirotech Vehicles, Inc. (NASDAQ: EVTV). The proposed busin ...

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Core Viewpoint - Envirotech Vehicles, Inc. (EVTV) has entered into an Amended and Restated Letter of Intent (LOI) with AZIO AI Corporation for a merger transaction, with a proposed acquisition price of $3.00 per share, subject to independent third-party valuation [1][6]. Transaction Framework - The LOI establishes a framework for AZIO AI to become a wholly owned subsidiary of EVTV, indicating a potential strategic transformation for EVTV towards advanced artificial intelligence infrastructure and high-performance computing [3]. - The transaction is structured as a statutory merger, where a newly formed subsidiary of EVTV will merge into AZIO AI, with AZIO AI continuing as the surviving entity [4]. Shareholder Considerations - AZIO AI shareholders are expected to receive equity consideration in EVTV equity securities, with the final structure and allocation to be determined in the definitive agreement [5]. - The LOI assumes an enterprise value for AZIO AI of $480 million, with an agreed reference value of $3.00 per share of EVTV common stock [6]. Leadership Changes - Upon completion of the merger, Chris Young, the CEO of AZIO AI, is expected to be appointed as the CEO of EVTV [7]. Strategic Intent - The transaction reflects a disciplined approach to advancing EVTV's strategic evolution, aligning the company with a scaled AI infrastructure platform and an experienced technology leadership team [8].

Core Points - The 2025 Annual Meeting of Stockholders for Envirotech Vehicles, Inc. was called to order by the CEO and Chairman Phillip Oldridge on December 30, 2025, at 9:05 a.m. Pacific Time [2][3] - Melissa Barcellos was recognized for her service on the Board and will not be standing for reelection [3] Company Overview - The meeting included the introduction of other directors and officers present, specifically mentioning Ms. Terri Elk White, Mr. Michael Di Pietro, and Mr. Jason Maddox, who serves as President and Interim Chief Financial Officer [3]

Core Insights - AZIO AI Corporation is engaged in strategic discussions with Envirotech Vehicles, Inc. regarding a potential transaction to assist EVTV in entering the AI Data center space, with an independent valuation analysis indicating AZIO AI's enterprise value at approximately $480 million [1][2]. Transaction Framework and Shareholder Considerations - AZIO AI emphasizes a disciplined transaction framework that aligns the interests of all stakeholders, focusing on long-term value creation and capital discipline [3]. - The potential transaction structure is being evaluated to limit unnecessary dilution to existing shareholders of Envirotech Vehicles while balancing the strategic and financial objectives of both parties [5]. Ongoing Discussions - Discussions between AZIO AI and Envirotech Vehicles are ongoing, with efforts to reach a definitive agreement, considering transaction structure, timing, and additional financing [4]. - Any potential transaction will be subject to customary due diligence, board approvals, regulatory review, and shareholder approval [4]. Company Overview - AZIO AI Corporation is a next-generation AI infrastructure platform focused on scalable compute and specialized AI deployments, operating as a strategic spin-off of AZIO Corporation [7]. - The leadership team at AZIO AI has extensive experience in hardware distribution, data center operations, and AI hardware supply chain management, supporting the company's focus on disciplined execution and infrastructure scalability [8].

Core Insights - AZIO AI Corporation is pursuing a potential business combination with Envirotech Vehicles, Inc. (EVTV), informed by an independent third-party valuation of approximately $480 million [3] - The proposed transaction would involve EVTV acquiring 100% of AZIO AI's outstanding equity, contingent upon due diligence, definitive agreements, and necessary approvals [2] Transaction Framework - The transaction framework is based on a valuation of AZIO AI at around $480 million, positioning AZIO AI as the primary operating entity to shift EVTV's strategy towards AI infrastructure [3] - AZIO AI's leadership, including CEO Chris Young, is expected to guide the strategic direction of the combined organization, while EVTV's existing leadership will support the transition [4] Strategic Rationale - The transaction aims to enhance AZIO AI's focus on establishing AI infrastructure globally, particularly in sovereign growth economies in Asia, driven by increasing global demand for scalable AI compute infrastructure [5] - AZIO AI's offerings include enterprise-grade GPU systems and modular data-center solutions designed to meet the needs of government, institutional, and enterprise clients [6] Application of Technology - EVTV's drone operations are anticipated to serve as an application-level platform that utilizes AI infrastructure, generating significant data that requires robust backend computing for processing and analytics [7] Market Context - The growth of publicly traded AI infrastructure companies, exemplified by CoreWeave's market capitalization of approximately $32 billion, highlights the demand for dedicated AI compute infrastructure [8] Path Forward - AZIO AI plans to advance diligence and transaction planning, with next steps including EVTV shareholder approval, SEC registration filings, and compliance audits of AZIO AI [9]

Proposed combination positions EVTV at the forefront of sovereign and emerging-market AI infrastructure, spanning data centers, enterprise compute, AI-powered agriculture, and drone-enabled systems, anchored by AZIO AI's $50M+ active pipeline within its first two months of operationHOUSTON and NEWPORT BEACH, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) -- via IBN -- Envirotech Vehicles, Inc. (NASDAQ:EVTV) ("EVTV" or the "Company") today announced that it has entered into an exclusive strategic acquisition framewo ...

Core Insights - Premarket trading is showing notable activity with early price movements indicating potential opportunities before the market opens [1] Premarket Gainers - Mawson Infrastructure Group Inc. (MIGI) is up 10% at $5.65 [3] - Mingteng International Corporation Inc. (MTEN) is up 9% at $1.88 [3] - Barnwell Industries, Inc. (BRN) is up 9% at $1.20 [3] - Amentum Holdings, Inc. (AMTM) is up 8% at $27.57 [3] - Antelope Enterprise Holdings Limited (AEHL) is up 8% at $2.75 [3] - Protagenic Therapeutics, Inc. (PTIX) is up 8% at $2.43 [3] - Envirotech Vehicles, Inc. (EVTV) is up 8% at $1.18 [3] - Vir Biotechnology, Inc. (VIR) is up 6% at $6.49 [3] - Zoom Communications Inc. (ZM) is up 5% at $82.73 [3] - Core AI Holdings (CHAI) is up 5% at $2.68 [3] Premarket Losers - Foxx Development Holdings Inc. (FOXX) is down 13% at $4.00 [4] - Jaguar Health, Inc. (JAGX) is down 11% at $1.13 [4] - AlphaTON Capital Corp. (ATON) is down 7% at $2.54 [4] - Semtech Corporation (SMTC) is down 6% at $65.81 [4] - Cypherpunk Technologies Inc. (CYPH) is down 5% at $1.73 [4] - SunPower Inc. (SPWR) is down 5% at $1.59 [4] - Visionary Holdings Inc. (GV) is down 4% at $1.23 [4] - Gelteq Limited (GELS) is down 4% at $1.01 [4] - Capricor Therapeutics, Inc. (CAPR) is down 3% at $4.47 [4] - Mobile-Network Solutions (MNDR) is down 3% at $2.82 [4]

Financial Performance - For the three months ended September 30, 2025, net sales were $1,812,461, compared to $3,450,056 for the nine months ended September 30, 2025, indicating a significant increase from $1,623,260 in the same period last year[19] - Gross profit for the three months ended September 30, 2025, was $80,794, while the gross profit for the nine months ended September 30, 2025, was a loss of $1,257,532, compared to a profit of $378,111 in the same period last year[19] - The net loss for the three months ended September 30, 2025, was $6,357,557, compared to a net loss of $1,234,986 for the same period in 2024, indicating a worsening financial position[19] - For the nine months ended September 30, 2025, the company reported a net loss of $25,540,675 compared to a net loss of $6,522,441 for the same period in 2024[24] - The total operating loss for the three months ended September 30, 2025, was $6,063,194, with the electric vehicle segment contributing a loss of $3,057,470[123] - The total operating loss for the nine months ended September 30, 2025, was $24,594,494, with the electric vehicle segment reporting a loss of $19,581,724[125] Assets and Liabilities - The company reported a total of $15,477,584 in current assets as of September 30, 2025, down from $17,636,154 as of December 31, 2024[17] - Current liabilities increased to $15,977,016 as of September 30, 2025, compared to $11,744,671 as of December 31, 2024, indicating a rise in short-term financial obligations[17] - The accumulated deficit as of September 30, 2025, was $99,002,149, compared to $73,461,474 as of December 31, 2024, reflecting ongoing financial challenges[17] - The company had trade accounts receivable of $838,651 as of September 30, 2025, with an allowance for doubtful accounts of $413,169, resulting in a net trade accounts receivable balance of $425,482[41] - The company had finished goods inventory on hand of $6,040,410 as of September 30, 2025, with a recorded inventory valuation allowance of $1,184,731[43] - The company had inventory deposits of $7,465,129 as of September 30, 2025, an increase from $6,036,809 as of December 31, 2024[44] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $6,143,988, up from $1,471,391 in the same period last year, reflecting increased operational costs[19] - Research and development expenses for the nine months ended September 30, 2025, were $731,808, significantly higher than $152,351 in the same period last year, indicating a focus on innovation[19] - Non-cash stock-based compensation expense for the nine months ended September 30, 2025, was $614,307, a decrease from $1,871,386 for the same period in 2024, representing a reduction of about 67%[55] - Depreciation expense for the three months ended September 30, 2025, was $105,150, compared to $36,303 for the same period in 2024, reflecting an increase of approximately 189%[64] - Operating lease expenses for the three months ended September 30, 2025, were $99,863, compared to $89,240 for the same period in 2024, reflecting an increase of 18.3%[120] Stock and Equity - The company issued 1,003,045 shares from convertible notes conversion, increasing the total common stock to 4,223,165 shares as of September 30, 2025[22] - As of September 30, 2025, the Company had 4,223,165 shares of common stock outstanding, an increase from 1,987,262 shares on December 31, 2024[89] - The Company has outstanding warrants for 147,039 shares, with exercise prices ranging from $16.60 to $200.00[92] - The Company raised $850,000 from a private placement of 51,205 shares at $16.60 per share, with warrants exercisable at the same price[94] - The Company recorded a full impairment on its ROU asset for a warehouse lease in December 2024, as it decided not to use the facility for its intended purpose[116] Debt and Financing - The future annual minimum payments of the Company's outstanding debt total $2,875,363, with $1,366,040 due in the remainder of 2025 and $1,509,323 in 2026[88] - The balance of the equipment financing agreement with Wells Fargo Bank was $5,731 as of September 30, 2025, with monthly payments of $521[69] - The Company entered into a premium financing agreement with AFCO Insurance Premium Finance for $140,400, with a remaining balance of $99,284 as of September 30, 2025[70] - The Company entered into a premium financing agreement for a loan of $114,140, payable over eleven months at an interest rate of 8.24%[71] Business Operations - The company added two new business operations in the first quarter of 2025: medical supplies and drones[26] - The company is currently engaged in research and development activities for its drone operations, which are in the startup phase[122] - The electric vehicle segment reported no sales for the three months ended September 30, 2025, while the medical supplies segment generated $1,812,461 in sales[123] - The company recognized revenue from the delivery of medical supplies to a related party, accounting for 100% of the net revenue for the medical supplies segment for the three months ended September 30, 2025[33] Impairments and Charges - The company has faced significant goodwill impairment charges totaling $10,103,048 for the nine months ended September 30, 2025, impacting overall financial health[19] - The Company recorded a non-cash impairment of goodwill amounting to $10,103,048 during the first quarter of 2025, resulting in a goodwill balance of $0 as of September 30, 2025[53][66] - The Company recorded a non-cash impairment charge of $3,300,801 related to other intangible assets for the three and nine months ended September 30, 2025[57][66] Lease Agreements - The Company has a lease agreement with Maddox Defense for a facility in Houston, Texas, with a total monthly payment obligation of $7,771[107] - The Company entered into a two-year sublease for a warehouse in the Philippines with a monthly rent starting at $15,000, escalating to $16,530[116] - Future minimum payments under operating leases total $893,073, with $311,210 due in the remainder of 2025[120] - The weighted-average remaining lease term for operating leases is 2.5 years, with a weighted-average discount rate of 14%[120] Other Financial Information - The company recorded net cash used in operating activities of $6,295,792 for the nine months ended September 30, 2025, compared to $2,848,876 for the same period in 2024[24] - The company had cash and cash equivalents of $77,595 at the end of the period, down from $682,654 at the end of the previous period[24] - The Company has a concentration in accounts payable, with two vendors making up over 10% individually and 52% in total of the outstanding accounts payable balance as of September 30, 2025[50] - The company is negotiating a payment plan with Priority Workforce for outstanding unpaid invoices related to employee leasing services, expected to be settled in Q4 2025[127]

Core Insights - Envirotech Vehicles, Inc. has announced the commencement of production and certification for its heavy capacity drone division, AG Drone Inc. following confirmed orders for 80 drones from two clients [1] Company Developments - The company has received deposits for 80 heavy capacity drones from Studio di Agronomia Baffetti in Italy and Venture Air Solutions in Florida [1] - The COO of the company, Elgin Tracy, stated that the company is transitioning from planning to actual production [1]