Financial Performance - For the three months ended March 31, 2025, net sales were $590,567, a decrease of 27.1% compared to $810,490 for the same period in 2024[19] - Gross profit for the first quarter of 2025 was $119,392, down 61.2% from $308,219 in the prior year[19] - The net loss for the first quarter of 2025 was $14,036,381, compared to a net loss of $4,532,363 for the same period in 2024, representing a 209.5% increase in losses[19] - The operating loss for the Company was $13,731,673, with the electric vehicle segment experiencing a loss of $13,250,409[124] Cash and Liquidity - Cash and cash equivalents at the end of the period were $211,284, a decrease of 89.1% from $1,049,357 at the end of the first quarter of 2024[25] - The company experienced a cash outflow from fraudulent activity amounting to $2,249,515, impacting its financial position[25] Operating Expenses - Total operating expenses increased significantly to $13,851,065, compared to $3,264,516 in the same quarter of 2024, primarily due to a goodwill impairment charge of $10,103,048[19] - Research and development costs increased to $98,398 for the three months ended March 31, 2025, compared to $70,265 for the same period in 2024, reflecting a 40% increase[53] - Non-cash stock-based compensation expense was $546,576 for the three months ended March 31, 2025, down from $1,818,383 for the same period in 2024, representing a decrease of 70%[54] Assets and Liabilities - Total current liabilities increased to $15,671,215, up from $11,744,671 at the end of 2024, indicating a rise of 33.3%[17] - The company had finished goods inventory of $6,261,697 as of March 31, 2025, with a net inventory balance of $6,249,268 after an inventory valuation allowance of $12,429[43] - Inventory deposits increased to $8,711,812 as of March 31, 2025, up from $6,036,809 as of December 31, 2024, indicating a 44% increase[44] - The company had trade accounts receivable of $865,721 as of March 31, 2025, with a net balance of $852,125 after an allowance for doubtful accounts of $13,596[40] Shareholder Information - The company reported a total of 23,106,392 common shares outstanding as of March 31, 2025, an increase from 19,872,612 shares at the end of 2024[22] - The Company has 9,672,482 outstanding stock options with a weighted average exercise price of $1.59 and an average remaining contractual life of 7.14 years[97] Business Operations and Expansion - The company added two new business operations in the first quarter of 2025: medical supplies and drones, expanding its business portfolio[27] - The Company plans to open a U.S. drone manufacturing facility following a Consulting and Manufacturing Agreement for a heavy lift drone, which is designed for the agricultural market[127] - The Company signed a non-binding letter of intent to acquire Kymera, a marine craft manufacturer, to establish a new marine division focused on electric marine mobility[128] Impairment and Charges - The company recorded a non-cash impairment charge of $10,103,048 for goodwill as of March 31, 2025, with no impairment charge recorded for the year ended December 31, 2024[52] - The company recorded a non-cash impairment charge of $10,103,048 for goodwill during the three months ended March 31, 2025, due to a decline in stock price[68] Debt and Financing - The total future annual minimum payments of the Company's outstanding debt as of March 31, 2025, amount to $4,570,099, including $186,756 for the remainder of 2025 and $4,383,343 for 2026[90] - The Company entered into a convertible promissory note agreement for $1,000,000 on January 18, 2024, which was later converted into 505,051 shares of common stock[77] - The Company has the right to require an investor to purchase up to $25 million of shares of common stock until November 1, 2027, under the amended standby equity purchase agreement[82] Market Risks - The Company is exposed to market risks related to raw material costs, particularly batteries, which could materially affect operating results[185]

Financial Performance - For the years ended December 31, 2024 and 2023, the company's net losses were $8.8 million and $12.7 million, respectively, with non-cash charges of approximately $2.7 million and $6.6 million included in those losses [19]. - The company has made substantial progress in expanding its operational footprint at its Osceola, Arkansas facility, including final assembly and battery balancing [58]. - The Company does not currently face material market risks such as interest rate fluctuation or foreign currency exchange risk [307]. - The Company anticipates that international selling, marketing, and administrative costs related to foreign sales will be largely denominated in the same foreign currency, mitigating foreign currency exchange risk exposure [308]. Acquisitions and Partnerships - The company completed the Maddox Acquisition on December 18, 2024, issuing 3,100,000 shares of common stock and potentially up to $1 million in cash payments based on revenue performance during the Earnout Period [21]. - The Exclusive Distribution Agreement with EEVI ensures product supply and design consistency until December 17, 2070 [68]. - The Company has entered into a purchase agreement for a manufacturing facility in Osceola, Arkansas, but the transaction has not yet closed [117]. - The Arkansas Economic Development Commission proposed up to $27 million in incentives for the Company's operations, pending approvals and performance thresholds [118]. Market Trends and Projections - In 2023, nearly 14 million new electric vehicles were registered globally, a 35% year-on-year increase, with electric vehicle sales accounting for 18% of all cars sold globally [26]. - The global market for hybrid and electric cars is projected to follow a double-digit growth trend from 2023 to 2028, with Asia-Pacific and Europe leading in adoption [26]. - The transition to electric heavy-duty vehicles is expected to result in lower total costs of ownership by 2030, making them more attractive than diesel counterparts [33]. - The electric vehicle market remains highly competitive, with traditional manufacturers and new entrants vying for market share amid significant operational challenges [72]. Infrastructure and Charging Needs - The U.S. will need 2.13 million Level 2 and 172,000 Level 3 chargers by 2030 to support electric vehicle infrastructure [28]. - Upfront costs for electric trucks and buses are expected to decline significantly through 2030 as battery prices fall, making them competitive on a total cost of ownership basis [40]. Regulatory and Incentive Programs - The Advanced Clean Truck Regulation requires truck manufacturers to sell increasing percentages of zero-emission trucks starting with the 2024 model year, although the status of this regulation remains uncertain [23]. - Federal tax credits for electric vehicles include $7,500 for vehicles under 14,000 lbs and up to $40,000 for commercial vehicles over 14,000 lbs [42]. - California offers point-of-sale vouchers ranging from $20,000 to over $120,000 per eligible Class 4–8 vehicle [57]. - The Clean Truck and Bus Voucher Incentive Project (HVIP) has allocated over $1.7 billion for clean transportation incentives, with $80 million approved for the 2023-2024 fiscal year [80]. - Zero-emission Class 3 trucks are eligible for up to $45,000 in HVIP vouchers, while Class 4 and Class 5 vehicles can receive $60,000 per vehicle [81]. - The New York State Energy Research & Development Authority has reported $46.1 million in total funding availability under the New York Truck Voucher Incentive Program (NYTVIP) as of March 2024 [83]. - The New Jersey Zero Emissions Incentive Program offers up to $175,000 towards the purchase of battery-electric vehicles, with a total funding of $90 million [88]. - California's Zero-Emission School Bus and Infrastructure project provides per vehicle incentives of up to $375,000 for electric school buses [89]. - The EPA's Clean School Bus program may fund up to 100% of the cost for replacing existing school buses with zero-emission buses [101]. - The Heavy-Duty Zero Emission Vehicle grant program plans to distribute $1 billion for clean heavy-duty vehicles and infrastructure between 2024 and 2031 [103]. - The Commercial Clean Vehicle Credit allows businesses to receive a tax credit of up to $40,000 for qualified commercial clean vehicles [97]. - The Congestion Mitigation and Air Quality Improvement Program allocates funding to states for projects that improve air quality, with at least 16 states using funds for alternative fuel vehicle projects [95]. - The Volkswagen Environmental Mitigation Trust Funds provide millions annually for on-road vehicle projects, including electric school buses [89]. Product Development and Innovation - The company plans to introduce new products and platforms, including Electric Vehicle Supply Equipment and stationary energy storage systems [58]. - The company is actively engaged in discussions to expand relationships with third-party service providers and technology integrators [58]. - The company plans to build out its dealership and service network, including a new service center in New Jersey and plans for a center in Houston, Texas [58]. - The company is focused on building a dedicated sales team to enhance its marketing and sales network across geographic regions [63]. - The company has established relationships with multiple vendors to mitigate supply chain risks related to raw materials and components [69]. Environmental Impact - Electric buses and trucks produce zero tailpipe emissions, leading to significant reductions in nitrogen oxides and particulate matter, with replacing a conventional diesel bus potentially achieving a reduction of 78 metric tons of GHG emissions [31]. - Electric transit buses cost approximately $200,000 more than diesel buses, but lifetime fuel and maintenance savings approximate $400,000 [39]. - The California Energy Commission aims for a 40% reduction in GHG emissions below 1990 levels by 2030, with significant funding allocated for alternative and renewable fuel projects [92]. - New York State mandates that all school buses purchased must be zero-emission by 2027 and all operating school buses must be zero-emission by 2035, supported by $500 million from the Clean Air, Clean Water and Green Jobs Environmental Bond Act [85]. - The Company has delivered a total of 76 vehicles under the New Jersey Zero-Emission Incentive Program since 2021, reflecting its commitment to clean vehicle deployment [121].

Financial Performance - For the three months ended September 30, 2024, sales were reported at $0, compared to $100,024 for the same period in 2023, indicating a decline of 100%[12] - The net loss for the three months ended September 30, 2024, was $1,234,986, a decrease from the net loss of $5,988,423 in the same period of 2023, showing an improvement of approximately 79.3%[12] - For the nine months ended September 30, 2024, the company reported a net loss of $6,522,441 compared to a net loss of $9,510,360 for the same period in 2023, indicating a 31.3% improvement in losses[16] - The company reported a gross profit of $(133,931) for the three months ended September 30, 2024, compared to a gross profit of $19,741 for the same period in 2023, indicating a decline in profitability[12] - For the nine months ended September 30, 2024, sales revenue was $1,623,260, down from $2,756,103 in the same period of 2023[103] - The net loss for the nine months ended September 30, 2024 was $6,644,237, compared to a net loss of $9,510,360 for the same period in 2023[103] Assets and Liabilities - As of September 30, 2024, total assets increased to $22,833,284 from $22,653,169 as of December 31, 2023, reflecting a growth of approximately 0.79%[8] - Total current liabilities increased to $3,571,519 from $1,773,546, reflecting a rise of 101.5%[9] - The accumulated deficit grew to $(71,134,940) from $(64,612,499), indicating an increase of approximately 10.5%[10] - Total stockholders' equity decreased to $18,953,034 from $20,633,578, a decline of about 8.1%[10] - The total stockholders' equity as of September 30, 2024, was $18,953,034, compared to $23,782,004 as of September 30, 2023, reflecting a decrease of 20.5%[14] Cash Flow and Financing Activities - The company experienced a net cash used in operating activities of $2,848,876 for the nine months ended September 30, 2024, an improvement from $4,039,576 in the same period of 2023[16] - The company issued common stock for cash totaling $1,799,248 during the nine months ended September 30, 2024, contributing to its financing activities[16] - Net cash provided by financing activities during the nine months ended September 30, 2024 was $3,303,840, primarily due to proceeds from the issuance of common stock of $1,799,248[132] Inventory and Receivables - Accounts receivable increased to $1,090,399 from $692,102, marking a growth of 57.6%[8] - The Company had finished goods inventory on hand of $6,715,650 as of September 30, 2024, with a recorded inventory valuation allowance of $12,429, leading to a net inventory balance of $6,703,221[30] - The company had accounts receivable, net of $1,090,399 as of September 30, 2024, up from $692,102 at the end of 2023, indicating a 57.5% increase[25] Operating Expenses - Operating expenses for the nine months ended September 30, 2024, were $6,264,270, down from $10,561,010 in the same period of 2023, representing a reduction of approximately 40.0%[12] - General and Administrative expenses for the three months ended September 30, 2024 were $1,395,921, a decrease from $2,578,727 in the same period of 2023[122] - Research and Development expenses for the three months ended September 30, 2024 were $20,470, down from $46,734 in the same period of 2023[125] Investments and Acquisitions - The Company is acquiring Maddox Industries for 3,100,000 shares of common stock and up to $1 million in earnout payments based on revenue from existing customers[99] - The Company entered into a Sale and Purchase Agreement with PlugD for the delivery of 200 electric high roof vans and trucks for a total of approximately $16.2 million over the next 13 months[81] Market Risks and Future Plans - The company is exposed to market risks related to the costs of raw materials, primarily batteries, as it goes into production[147] - The company plans to continue investing in growth, particularly in research and development for zero-emission electric vehicles and expanding its sales and marketing efforts[108]

Financial Performance - For the three months ended June 30, 2024, sales were $812,770, a decrease from $2,132,880 in the same period of 2023, representing a decline of approximately 62%[13] - Gross profit for the three months ended June 30, 2024, was $203,823, compared to $878,994 for the same period in 2023, indicating a decrease of about 77%[13] - The net loss for the three months ended June 30, 2024, was $755,092, compared to a net loss of $1,254,029 for the same period in 2023, showing an improvement of approximately 40%[13] - Operating expenses for the three months ended June 30, 2024, totaled $1,528,364, a decrease from $2,145,503 in the same period of 2023, reflecting a reduction of about 29%[13] - The accumulated deficit grew to $(69,899,954) from $(64,612,499), marking an increase of approximately 8.5%[10] - As of June 30, 2024, the company reported a net loss of $5,287,455, compared to a net loss of $3,521,937 for the same period in 2023, indicating a year-over-year increase in losses of approximately 50%[19] Assets and Liabilities - As of June 30, 2024, total assets decreased to $22,508,729 from $22,653,169 as of December 31, 2023, reflecting a decline of approximately 0.64%[8] - Current liabilities surged to $4,281,086, compared to $1,773,546 at the end of 2023, indicating an increase of approximately 141.5%[9] - Total liabilities as of June 30, 2024, were $4,359,930, significantly up from $2,019,591 at the end of 2023, primarily due to increased current liabilities[9] - Total stockholders' equity decreased to $18,148,799 from $20,633,578, a decline of approximately 12.0%[10] - The company had cash, restricted cash, and cash equivalents of $437,064 at the end of June 30, 2024, down from $833,282 at the end of June 30, 2023[19] Accounts Receivable and Inventory - Accounts receivable increased significantly to $1,426,100, up from $692,102, representing a growth of approximately 105.4%[8] - The Company had trade accounts receivable of $1,450,360 as of June 30, 2024, with a net balance of $1,426,100 after an allowance for doubtful accounts of $24,260[30] - Finished goods inventory on hand was $6,715,650 as of June 30, 2024, with a recorded inventory valuation allowance of $12,429[31] - Inventory, net, slightly decreased to $6,703,221 from $6,830,593, a reduction of approximately 1.9%[8] - The company had inventory deposits of $2,857,314 as of June 30, 2024, down from $3,300,388 as of December 31, 2023[32] Research and Development - Research and development expenses increased to $61,616 for the three months ended June 30, 2024, compared to $57,924 for the same period in 2023, marking an increase of approximately 4%[13] - The company recorded research and development costs of $61,616 and $131,880 for the three and six months ended June 30, 2024, respectively, compared to $57,924 and $128,812 for the same periods in 2023, indicating an increase in R&D spending[38] Stock and Compensation - The company reported a weighted average of 15,631,359 shares used in the computation of net loss per share for the three months ended June 30, 2024, compared to 15,021,088 shares for the same period in 2023[13] - The Company recorded stock compensation expense of $8,122 and $58,671 for the three and six months ended June 30, 2024, related to restricted shares awarded to a vendor[58] - The intrinsic value of the outstanding stock options as of June 30, 2024, was $351,400[56] - The company has a total of 5,644,030 outstanding stock options, with an average exercise price of $2.59[54] Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2024, was $1,700,563, an improvement from $3,073,334 used in the same period of 2023[19] - The company issued common stock for cash totaling $949,248 during the six months ended June 30, 2024[19] - The Company entered into a convertible promissory note agreement for $1,000,000 on January 18, 2024, with a maturity date of September 30, 2024[47] Legal and Regulatory Matters - The company is involved in ongoing litigation with GreenPower Motor Company, asserting meritorious defenses against claims made[65] - The Company received an award from the U.S. EPA for up to $8,570,000 to produce electric school buses, with the project running from September 1, 2024, to August 31, 2026[76] Operational Developments - The company is focused on generating demand for its zero-emission commercial fleet vehicles to drive revenue growth[6] - Strategic acquisitions and effective scaling of production processes are critical for the company's future success and profitability[6] - The Company has a Sale and Purchase Agreement with PlugD to deliver 200 electric high roof vans and trucks for approximately $16.2 million over the next 13 months[63] - The Company intends to use the leased warehouse space as a production facility to expand its business presence in the region and the United States[70]

Financial Performance - Sales for Q1 2024 were $810,490, representing a 55% increase from $523,199 in Q1 2023[2] - Net loss for Q1 2024 was $4,532,363, or ($0.29) per share, compared to a net loss of $2,267,908, or ($0.15) per share in Q1 2023[3] - Adjusted net loss for Q1 2024 was $1,144,053, or ($0.07) per share, an improvement from an adjusted net loss of $2,180,764, or ($0.14) per share in Q1 2023[3] - Adjusted EBITDA for Q1 2024 was ($1,098,698), an increase of $1,085,235 compared to ($2,183,933) in Q1 2023[4] - As of March 31, 2024, the company had cash and cash equivalents of $1,049,357 and working capital of approximately $8,148,204[4] Business Developments - The company was awarded funding for 25 all-electric EVT school buses as part of the EPA's 2023 funding round for school bus electrification[5] - The company is expanding its manufacturing capabilities with refurbishments at its Osceola, Arkansas facility and leasehold improvements at the Clark facility in the Philippines[5] - The partnership with Plug'd has resulted in unit deliveries in Q1 2024, targeting fleet and government customers[5] - The company is experiencing increased demand for its vehicles, focusing on short-term deliveries rather than backlogs[5] - The company emphasizes a positive outlook for 2024 and beyond due to growing interest and demand for its electric vehicles[5]

Financial Performance - For the three months ended March 31, 2024, sales increased to $810,490, up 55% from $523,199 in the same period of 2023[16] - Gross profit for the same period was $308,219, compared to $118,363 in the prior year, reflecting a significant improvement[16] - The company reported a net loss of $4,532,363 for the three months ended March 31, 2024, compared to a net loss of $2,267,908 in the same period of 2023[16] - Operating expenses for the three months ended March 31, 2024, were $3,264,516, compared to $2,411,229 in the same period of 2023[16] Assets and Liabilities - Total current assets as of March 31, 2024, were $12,642,726, an increase from $12,056,159 as of December 31, 2023[13] - Total liabilities increased to $4,658,394 as of March 31, 2024, compared to $2,019,591 as of December 31, 2023[13] - The accumulated deficit increased to $69,144,862 as of March 31, 2024, from $64,612,499 as of December 31, 2023[13] - Cash and cash equivalents at the end of the period were $1,049,357, up from $456,719 at the beginning of the period[21] Receivables and Inventory - As of March 31, 2024, the company had accounts receivable of $1,025,187, an increase from $692,102 on December 31, 2023, indicating a growth of approximately 48%[31] - The company reported trade accounts receivable of $1,046,090 as of March 31, 2024, with an allowance for doubtful accounts of $20,903, resulting in a net trade accounts receivable balance of $1,025,187[37] - Finished goods inventory on hand was $7,253,148 as of March 31, 2024, compared to $6,830,593 on December 31, 2023, reflecting an increase of approximately 6.2%[38] - The company had inventory deposits of $2,833,631 as of March 31, 2024, a decrease from $3,300,388 on December 31, 2023[39] Research and Development - Research and development costs were $70,265 for the three months ended March 31, 2024, slightly down from $70,888 for the same period in 2023[49] Stock and Compensation - The company recorded non-cash stock-based compensation expense of $1,818,383 for the three months ended March 31, 2024, a significant increase from $87,144 in the same period of 2023[50] - The Company recorded stock compensation expense of $50,549 for 65,660 restricted shares awarded in November 2023 during the three months ended March 31, 2024[74] Financing and Agreements - The company issued 348,889 shares of common stock for cash, raising $585,499 during the period[21] - The Company entered into a convertible promissory note agreement for $1,000,000 with an origination fee of $99,000, maturing on September 30, 2024[60] - The net proceeds of $901,000 were allocated with $431,405 to Options and the remaining to the Note, resulting in unrealized losses of $557,497 for the Note and $1,012,430 for the Options for the three months ended March 31, 2024[62] - The Company issued options to purchase 2,000,000 shares at an exercise price of $2.75 contingent upon achieving sales targets, which were not met as of March 31, 2024[73] Lease Agreements - The Company has lease agreements with SRI Professional Services, resulting in a total rent expense of $23,312 for the three months ended March 31, 2024[75] - The Company has a commercial lease agreement with ABCI, incurring a rent expense of $15,000 for the three months ended March 31, 2024[76] - The total lease cost for the three months ended March 31, 2024, was $114,439, which includes $89,268 in operating lease expenses and $25,171 in short-term lease expenses[90] - The Company has future minimum payments under operating leases totaling $510,283, with $261,410 due in 2024 and $248,873 in 2025[90] Business Expansion - The company is focused on expanding its zero-emission vehicle offerings to meet the growing demand in commercial and last-mile fleet markets[25] - The Company entered into a Sale and Purchase Agreement to deliver 200 electric high roof vans and trucks for approximately $16.2 million over the next 13 months[80] - The Company has entered into an agreement to sublease a warehouse in the Philippines to expand its business presence in the region and the United States[79] - The Company entered into a sublease agreement for a warehouse in the Philippines, with monthly rent starting at $15,000, escalating to $16,530, and intends to use the space for production to expand its business presence[87] Risks and Market Conditions - The Company anticipates facing risks associated with raw material costs, particularly batteries, as it goes into production, which could materially affect operating results[137] - The Company does not currently face material market risks such as interest rate fluctuation risk and foreign currency exchange risk, as most expenses are denominated in U.S. dollars[136]

Financial Performance - For the years ended December 31, 2023 and 2022, the company's net losses were $12.7 million and $43.8 million, respectively, with non-cash charges of approximately $6.4 million and $38.7 million included in those losses [17]. - Total sales for the year ended December 31, 2023, were $2,862,853, a decrease of 36.5% compared to $4,504,621 in 2022 [298]. - Gross profit for 2023 was $1,005,580, down 42.0% from $1,731,948 in 2022 [298]. - Net loss for 2023 was $12,683,979, significantly improved from a net loss of $43,804,160 in 2022, representing a reduction of 72.9% [298]. - Basic and diluted net loss per share improved to $(0.84) in 2023 from $(2.92) in 2022 [298]. - The accumulated deficit grew to $(64,612,499) in 2023 compared to $(51,928,520) in 2022, indicating a worsening financial position [294]. - The company's total assets decreased to $22,653,169 from $33,483,689 in 2022, representing a decline of approximately 32.4% [294]. - The total stockholders' equity decreased to $20,633,578 in 2023 from $31,994,980 in 2022, a decline of about 35.3% [294]. - Cash and cash equivalents significantly decreased to $456,719 in 2023 from $2,765,068 in 2022, a reduction of about 83.5% [294]. - Total current liabilities increased to $1,773,546 in 2023 from $1,472,038 in 2022, reflecting an increase of approximately 20.5% [294]. Electric Vehicle Market and Government Initiatives - Approximately 10.5 million passenger electric vehicles were sold globally in 2022, representing 14% of total vehicle sales and a 62% increase from the previous year [21]. - The U.S. government plans to replace approximately 456,000 government vehicles with U.S.-manufactured electric vehicles, equating to approximately $25 billion in total value [34]. - The EPA has committed to distributing $5 billion over five years via the Clean School Bus Program, with approximately $1 billion allocated in both 2022 and 2023 [33]. - The market for electric buses and medium- and heavy-duty trucks is expected to grow, with nearly 66,000 electric buses and 60,000 medium- and heavy-duty trucks sold worldwide in 2022 [25]. - The federal government has allocated $5 billion for the Clean School Bus Program and another $5 billion for the National Electric Vehicle Infrastructure program, indicating significant funding for electric vehicle purchases [62]. - California's zero-emission vehicle mandate may result in over $800 million in aggregate funding available for cleaner vehicles over the next several years [63]. - The HVIP program has allocated over $1.7 billion for clean transportation incentives for the fiscal year 2022-23 [64]. - HVIP vouchers can provide up to $85,000 per vehicle for Class 6 and Class 7 zero-emission trucks, with potential increases for disadvantaged areas [65]. - The New Jersey Zero Emissions Incentive Program offers up to $175,000 towards the purchase of battery-electric vehicles, with a total program budget of $90 million [70]. - The California program for electric school buses provides per vehicle incentives of $750,000, with several states allocating funds specifically for electric vehicles [71]. - The Inflation Reduction Act invests $1 billion to support the replacement of heavy-duty vehicles with clean, zero-emission vehicles and associated infrastructure [82]. - The Clean School Bus program may award up to 100% of the cost for replacing existing school buses with clean alternatives [81]. - The New York Truck Voucher Incentive Program can provide funding of up to $385,000 per vehicle for eligible trucks and buses [67]. - The Commercial Clean Vehicle Credit allows businesses to qualify for a tax credit of up to $40,000 for purchasing qualified commercial clean vehicles [78]. Company Operations and Strategy - The company offers a range of zero-emission vehicles including Class 2 through 4 logistics vans, Class 4 through 5 urban trucks, school buses, electric forklifts, and street sweepers [14]. - The company plans to install manufacturing equipment in Osceola, Arkansas, in 2024 to begin producing vehicles in the United States, moving towards becoming a fully integrated electric vehicle manufacturer [51]. - The company aims to expand its zero-emission vehicles into ancillary product verticals, including charging infrastructure and stationary energy storage [40]. - The company has established relationships with multiple vendors to mitigate supply chain risks and ensure adequate access to raw materials [55]. - The company’s current primary focus is on Class 3 to 5 trucks, cargo vans, and school buses, targeting public and private fleet operators [41]. - The company has participated in numerous demonstration events across the U.S., Canada, and Asia in 2023 to showcase its product offerings [40]. - The company has not reestablished its in-house sales team since 2020 and has relied on executives and industry consultants for sales activities [40]. - The company’s zero-emission products may expand to include automated charging infrastructure and intelligent stationary energy storage [16]. Financial Management and Risks - The company anticipates risks associated with raw material costs, particularly batteries, as it moves into production, which could materially affect operating results [278]. - The company has not faced material market risks such as interest rate fluctuation risk and foreign currency exchange risk, which may positively impact future financial stability [277]. - The company reported a net allowance for accounts receivable of $20,929 in 2023, compared to $271,218 in 2022, indicating improved receivables management [294]. - The company had accounts receivable of $692,102 as of December 31, 2023, down from $2,073,691 in 2022, indicating a 66.7% decrease [313]. - Eight customers accounted for approximately 75% of the annual revenue in 2023, compared to three customers accounting for 43% in 2022 [313]. Employee and Stock Information - The company has a total of 14 full-time employees as of December 31, 2023, with no employees covered by collective bargaining agreements [57]. - The company has 1,389,584 outstanding warrants as of December 31, 2023, with a weighted average exercise price of $17.43 and a remaining contractual life of 1.93 years [355]. - The total stock compensation expense recorded for the year ended December 31, 2023, was $1,095,199, with options granted during the year having a weighted average fair market value of approximately $4.71 per option [363]. - The company awarded 85,000 restricted shares in exchange for marketing services, resulting in a stock compensation expense of $204,850 for the year ended December 31, 2023 [364]. - The Company awarded 65,660 restricted shares to a vendor for marketing services, resulting in a stock compensation expense of $22,528 for the year ended December 31, 2023 [365]. Inventory and Assets - The company's inventory increased to $6,830,593 in 2023 from $5,671,326 in 2022, representing a rise of approximately 20.4% [294]. - Finished goods inventory on hand was $6,843,022 as of December 31, 2023, with a net inventory balance of $6,830,593 after an inventory valuation allowance of $12,429 [320]. - The Company had inventory deposits of $3,300,388 as of December 31, 2023, a decrease from $4,829,933 as of December 31, 2022 [321]. - Total property and equipment, net was $320,687 as of December 31, 2023, compared to $368,461 as of December 31, 2022 [343]. - The Company recorded a non-cash goodwill impairment charge of $5,098,784 for the year ended December 31, 2023, compared to $37,093,047 for the year ended December 31, 2022 [331]. Lease and Financing Agreements - The Company entered into a two-year sublease agreement for a warehouse in the Philippines to expand its production capabilities [308]. - The Company entered into a two-year and two-month lease for a warehouse in the Philippines, with a monthly rent starting at $15,000, escalating to $16,530 in the final year [371]. - The total monthly payment obligation under the SRI Equipment Leases is $7,771, leading to a rent expense of $93,247 for the year ended December 31, 2023 [365]. - The Company recorded a rent expense of $68,400 for the ABCI Office Lease, with a monthly rent of approximately $5,000 [368]. - Total lease costs for the year ended December 31, 2023 amounted to $278,189, compared to $228,747 in 2022, reflecting an increase of approximately 21.6% [384]. - A convertible note agreement for $1,000,000 was entered into with an unrelated third-party investor, with an origination fee of $99,000 [388]. - The Company plans to deliver 200 electric high roof vans and trucks to PlugD for a total of approximately $16.2 million over the next 13 months [389].

Financial Performance - For the three months ended September 30, 2023, sales were $100,024, a decrease of 90.3% compared to $1,029,280 for the same period in 2022[18]. - Gross profit for the three months ended September 30, 2023, was $19,741, down 94.4% from $351,425 in the prior year[18]. - Operating expenses for the three months ended September 30, 2023, totaled $6,004,278, an increase of 252.5% compared to $1,704,160 for the same period in 2022[18]. - The net loss for the three months ended September 30, 2023, was $5,988,423, compared to a net loss of $1,323,768 for the same period in 2022, representing a 352.5% increase in losses[18]. - For the nine months ended September 30, 2023, the company reported a net loss of $9,510,360 compared to a net loss of $5,437,212 for the same period in 2022, indicating an increase in losses of approximately 75.5%[23]. Assets and Liabilities - Total current assets decreased to $13,591,953 as of September 30, 2023, down 26.0% from $18,339,239 at the end of 2022[16]. - Total assets decreased to $25,422,084 as of September 30, 2023, down 24.0% from $33,483,689 at the end of 2022[16]. - The accumulated deficit increased to $(61,438,880) as of September 30, 2023, compared to $(51,928,520) at the end of 2022[16]. - Cash and cash equivalents decreased to $879,042 as of September 30, 2023, down 68.2% from $2,765,068 at the end of 2022[16]. Inventory and Receivables - The company had finished goods inventory valued at $6,894,676 as of September 30, 2023, compared to $5,683,755 at the end of 2022, representing an increase of approximately 21.3%[41]. - Trade accounts receivable stood at $1,895,587 with an allowance for doubtful accounts of $271,218, resulting in a net trade accounts receivable balance of $1,624,369 as of September 30, 2023[40]. - The company reported inventory deposits of $3,133,753 as of September 30, 2023, down from $4,829,933 at the end of 2022, indicating a decrease of approximately 35.2%[42]. Goodwill and Impairment - The company reported a goodwill impairment charge of $3,392,129 for the three months ended September 30, 2023[18]. - The company incurred a goodwill impairment charge of $3,392,129 during the nine months ended September 30, 2023, which was not present in the prior year[23]. - Goodwill impairment charge of $3,392,129 recorded for the three and nine months ended September 30, 2023, resulting in a goodwill balance of $11,290,491[49]. Research and Development - Research and development costs increased to $46,734 and $175,546 for the three and nine months ended September 30, 2023, compared to $25,000 and $112,412 for the same periods in 2022[50]. Cash Flow - Cash flows from operating activities showed a net cash used of $4,039,576, an improvement from $8,271,750 in the prior year, reflecting a decrease in cash outflow of approximately 51%[23]. - The company had cash, restricted cash, and cash equivalents of $879,042 at the end of the period, down from $2,683,230 at the end of the previous year, a decrease of approximately 67.3%[23]. Lease and Rent Expenses - The company entered into a sublease for a warehouse in the Philippines, with a monthly rent of $15,000 for the first year, escalating to $15,750 in the second year[77][78]. - Total net rent expense for the three months ended September 30, 2023, was $59,857, compared to $52,579 for the same period in 2022, reflecting an increase of 14.5%[99]. - Total lease cost for the nine months ended September 30, 2023, was $177,397, slightly down from $180,746 in 2022, indicating a decrease of 1.9%[100]. - Rent expense under the ABCI Office Lease was $53,400 for the nine months ended September 30, 2023, compared to $25,200 for the same period in 2022[91]. Legal Matters - The company has settled a class action lawsuit with Electric Drivetrains, resulting in no proceeds paid in the settlement[86]. - The company is involved in ongoing litigation with GreenPower Motor Company, alleging breach of fiduciary duties and seeking damages[81]. Management Compensation - Phillip W. Oldridge, the CEO, has an annual base salary of $300,000 and is eligible for a bonus based on 5% of the company's net income[76]. - The company reimbursed the CEO $81,269 for the use of a personal airplane for business-related activities during the first nine months of 2023[75]. Market Risks - The Company does not currently face material market risks such as interest rate fluctuation risk and foreign currency exchange risk, as most expenses are denominated in U.S. dollars[147]. - The Company anticipates risks associated with raw material costs, particularly batteries, as it moves into production, which could materially affect operating results[148].

Financial Performance - For Q2 2023, Envirotech reported sales of $2,132,880, a 42% increase from $1,505,910 in Q2 2022[18] - Gross profit for Q2 2023 was $878,994, compared to $660,902 in Q2 2022, reflecting a 33% increase[18] - The net loss for the six months ended June 30, 2023, was $3,521,937, an improvement from a net loss of $4,113,444 in the same period of 2022[24] - Operating expenses for Q2 2023 were $2,145,503, up from $1,833,066 in Q2 2022, indicating an increase of 17%[18] - The company reported a basic and diluted net loss per share of $0.08 for Q2 2023, consistent with the loss per share in Q2 2022[18] Assets and Liabilities - Total current assets decreased to $14,828,690 as of June 30, 2023, down from $18,339,239 at the end of 2022, a decline of approximately 19%[16] - Cash and cash equivalents at the end of Q2 2023 were $833,282, significantly lower than $2,765,068 at the end of 2022[16] - Total liabilities decreased to $1,374,789 as of June 30, 2023, compared to $1,488,709 at the end of 2022, a reduction of about 8%[16] - The company’s accumulated deficit increased to $55,450,457 as of June 30, 2023, from $51,928,520 at the end of 2022[21] Inventory and Receivables - Envirotech's inventory increased to $6,938,250 as of June 30, 2023, compared to $5,671,326 at the end of 2022, representing a rise of approximately 22%[16] - The Company reported trade accounts receivable of $3,004,937 as of June 30, 2023, with an allowance for doubtful accounts of $271,218, resulting in a net trade accounts receivable balance of $2,733,719[41] - Finished goods inventory on hand was $6,950,679 as of June 30, 2023, with an inventory valuation allowance of $12,429 related to three vehicles not intended for sale, leading to a net inventory balance of $6,938,250[42] Research and Development - Research and development costs were $57,924 and $128,812 for the three and six months ended June 30, 2023, compared to $87,412 for both periods in 2022[51] Stock and Compensation - Non-cash stock-based compensation expense was $105,166 and $192,310 for the three and six months ended June 30, 2023, respectively, compared to $0 and $1,614,845 for the same periods in 2022[52] - The company granted 15,000 stock options at an exercise price of $2.65 during the six months ended June 30, 2023, bringing the total outstanding options to 623,266[66] - The company awarded 85,000 restricted shares during the first quarter of 2023, resulting in a stock compensation expense of $102,991 for the three months ended June 30, 2023[74] Property and Equipment - As of June 30, 2023, the total property and equipment net value increased to $390,463,000 from $368,461,000 as of December 31, 2022, representing a growth of 3%[55] - The accumulated depreciation increased from $245,157,000 to $304,703,000, indicating a depreciation expense of $30,561,000 for the three months ended June 30, 2023, compared to $18,948,000 for the same period in 2022[55] Loans and Credit - The company has a remaining balance of $21,360,000 on a loan from Wells Fargo, with $6,252,000 classified as current and $14,066,000 as long-term as of June 30, 2023[57] - The company has no principal amount outstanding on its line of credit as of June 30, 2023, and there is no current plan to borrow from it[60] Rent and Lease Agreements - The company recorded a rent expense of $23,312 and $46,624 for the three and six months ended June 30, 2023, respectively, related to equipment leases with SRI Professional Services[75] - The company recorded a rent expense of $17,800 and $38,400 for the three and six months ended June 30, 2023, respectively, related to a commercial lease with Alpha Bravo Charlie, Inc.[77] - The Company has total net rent expenses of $59,277 and $117,540 for the three and six months ended June 30, 2023, compared to $55,118 and $128,167 for the same periods in 2022, indicating a decrease in six-month expenses by approximately 8.5%[102] - The Company entered into a sublease agreement with Berthaphil, Inc. for a warehouse in the Philippines, with a monthly rent of $15,000 for the first year, escalating to $15,750 for the second year[101] - The Company has eight operating leases as of December 31, 2022, with five being office or warehouse leases and three being equipment leases[91] Legal Matters - The Company intends to vigorously defend against a lawsuit filed by GreenPower Motor Company Inc., which alleges breach of fiduciary duties and seeks damages[84] - The Company believes that ongoing lawsuits are without merit and intends to vigorously defend against them[86] - The Company has resolved the Mollik Litigation and the Brooks Litigation, with both cases being completely dismissed[88][90] Market Risks - The Company anticipates facing risks associated with the costs of raw materials, primarily batteries, as it goes into production, which could materially affect operating results[148] - The Company does not currently face material market risks such as interest rate fluctuation risk and foreign currency exchange risk, as most expenses are denominated in U.S. dollars[147] Investments - The aggregate amount of the Company's investments in marketable securities was $1,013,044 as of June 30, 2023, down from $2,336,402 at December 31, 2022[39]

Financial Performance - For Q1 2023, Envirotech Vehicles reported sales of $523,199, a significant increase from $89,900 in Q1 2022, representing a growth of approximately 482%[14] - The gross profit for Q1 2023 was $118,363, compared to $13,473 in Q1 2022, indicating a substantial improvement in profitability[14] - The net loss for Q1 2023 was $2,267,908, a decrease from a net loss of $2,936,862 in Q1 2022, reflecting a reduction in losses by about 23%[14] - Operating expenses for Q1 2023 were $2,411,229, down from $2,953,648 in Q1 2022, showing a decrease of about 18.3%[14] Assets and Liabilities - Total current assets decreased to $15,996,269 as of March 31, 2023, down from $18,339,239 as of December 31, 2022, a decline of approximately 12.3%[12] - Cash and cash equivalents at the end of Q1 2023 were $1,668,909, down from $2,765,068 at the end of Q4 2022, a decrease of about 39.6%[12] - Total liabilities decreased to $1,317,001 as of March 31, 2023, compared to $1,488,709 as of December 31, 2022, a reduction of approximately 11.5%[12] - The company’s accumulated deficit increased to $54,196,428 as of March 31, 2023, from $51,928,520 at the end of 2022, indicating a rise in losses[15] Inventory and Receivables - As of March 31, 2023, the company had trade accounts receivable of $2,160,732 and a recorded allowance for bad debt of $271,218, resulting in a net trade accounts receivable balance of $1,889,514[32] - The company reported finished goods inventory of $5,745,850 as of March 31, 2023, with a recorded inventory valuation allowance of $12,429[33] - The company had inventory deposits of $5,169,872 as of March 31, 2023, an increase from $4,829,933 as of December 31, 2022[34] Research and Development - Research and development costs incurred during the three months ended March 31, 2023, were $70,888, compared to no research and development costs for the same period in 2022[43] Manufacturing and Operations - Envirotech Vehicles is focused on expanding its zero-emission commercial fleet vehicles to meet increasing demand in the market[18] - The company has established a state-of-the-art manufacturing facility in Osceola, Arkansas, which spans approximately 580,000 square feet[19] Financial Agreements and Obligations - The Company entered into a $63,576 equipment financing agreement with Navitas Credit Corp., with monthly payments of $2,648.99, and a current balance of $5,298 as of March 31, 2023[47] - A $18,755 loan with Wells Fargo for facility grounds equipment has a current balance of $21,360, with $6,252 classified as current and $15,108 as long-term[48] - The Company secured a $225,000 premium financing agreement with First Insurance Funding, which was fully paid off by March 31, 2023[49] - A second premium financing agreement for $214,088 has a current balance of $48,451, classified as current[50] - The Company has a total monthly payment obligation of $7,771 under lease agreements with SRI Professional Services, resulting in a rent expense of $23,312 for Q1 2023[65] Stock and Compensation - The Company recorded stock compensation expense of $87,144 for 85,000 restricted shares awarded during Q1 2023[63] - The Company has 608,266 outstanding stock options with an intrinsic value of $355,670 as of March 31, 2023[62] - As of March 31, 2023, the Company has 1,389,584 outstanding warrants with an average exercise price of $17.43 and a remaining life of 2.68 years[53] Legal Matters - The Company is involved in ongoing litigation with GreenPower Motor Company, alleging breach of fiduciary duties and seeking damages[73] - The company resolved the Mollik Litigation on September 30, 2023, with the court dismissing the action with prejudice, indicating no financial proceeds from the company were used for the resolution[77] - The Brooks Litigation, where the plaintiff sought $13.5 million in damages, has been completely dismissed following a settlement approved by the court on March 7, 2022[79] Lease and Rent Expenses - As of March 31, 2023, the company reported total lease costs of $58,264, a decrease of 67.7% from $180,746 in the same period of 2022[90] - The company has entered into a new sublease agreement in March 2023 for a warehouse in the Philippines, with a monthly rent starting at $15,000, escalating to $16,530 over the lease term[88] - The company has recognized an operating liability and corresponding Right-Of-Use asset related to its leases, with a weighted-average discount rate of 14% as of March 31, 2022[90] - The company’s rent expense under the SRI Equipment Leases was $23,312 for both the three months ended March 31, 2023, and March 31, 2022[81] - The company’s weighted-average remaining lease term for operating leases was 0.62 years as of March 31, 2022[90] Market Risks - The company does not currently face material market risks such as interest rate fluctuation risk or foreign currency exchange risk, as most expenses are denominated in U.S. dollars[131] - The company anticipates potential risks associated with the costs of raw materials, particularly batteries, as it moves into production[132]