Core Viewpoint - Envirotech Vehicles, Inc. has achieved a significant milestone by delivering over 5 million isolation gowns to the U.S. government as part of a larger contract for 35 million gowns, indicating strong performance and potential for future growth in supply chain security [1] Group 1 - The company, along with its subsidiary Maddox Industries, has successfully manufactured and delivered over 5 million isolation gowns [1] - The Gown Contract totals 35 million gowns, with 19 months remaining for completion [1] - There is an expectation that the Gown Contract will be extended, which may further enhance America's supply chain security [1]

Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - FGI Industries Ltd. (FGI) is up 278% at $15.02 [3] - Senmiao Technology Limited (AIHS) is up 96% at $4.22 [3] - Conifer Holdings, Inc. (CNFR) is up 86% at $2.11 [3] - WEBTOON Entertainment Inc. (WBTN) is up 39% at $20.81 [3] - Nukkleus Inc. (NUKK) is up 18% at $6.08 [3] - Tantech Holdings Ltd (TANH) is up 12% at $2.13 [3] - Check-Cap Ltd. (CHEK) is up 9% at $2.33 [3] - Ivanhoe Electric Inc. (IE) is up 8% at $9.71 [3] - Wolfspeed, Inc. (WOLF) is up 8% at $3.21 [3] - Bolt Projects Holdings, Inc. (BSLK) is up 5% at $3.95 [3] Premarket Losers - Envirotech Vehicles, Inc. (EVTV) is down 17% at $2.27 [4] - Dave & Buster's Entertainment, Inc. (PLAY) is down 15% at $20.40 [4] - NanoVibronix, Inc. (NAOV) is down 12% at $9.37 [4] - ADTRAN Holdings, Inc. (ADTN) is down 10% at $9.37 [4] - Rain Enhancement Technologies Holdco, Inc. (RAIN) is down 10% at $6.00 [4] - CNS Pharmaceuticals, Inc. (CNSP) is down 7% at $8.50 [4] - AVITA Medical, Inc. (RCEL) is down 7% at $6.22 [4] - Vince Holding Corp. (VNCE) is down 7% at $2.60 [4] - Monte Rosa Therapeutics, Inc. (GLUE) is down 6% at $6.50 [4] - Meiwu Technology Company Limited (WNW) is down 6% at $2.06 [4]

Core Insights - Envirotech Vehicles, Inc. has successfully completed the first American-made heavy-lift drone capable of carrying 1,500 pounds, featuring dual-use agricultural spray and wildfire protection technology [1] Company Overview - The drone has a payload capacity of 1,500 pounds, which is industry-leading for U.S. manufactured drones [1] - It can deliver 100 gallons of liquid per deployment and has an extended flight time of up to 45 minutes under full load [1] - The company will begin taking pre-orders for the drone next week [1] Market Opportunity - The agricultural market opportunity is valued at $7 billion annually, while the wildfire suppression market is valued at $5.7 billion [1] - The drone provides a scalable solution for farmers and cooperatives across America for crop spraying, fertilization, and pest control, which can significantly lower labor costs and increase yield efficiency [1] - The drone's capabilities allow it to reach difficult terrain, enhancing its utility in agricultural applications [1]

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the periods ended June 30, 2025, and 2024, detailing financial position, performance, and cash flows, impacted by a goodwill impairment and new business segments [Unaudited Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) The company's total assets decreased from **$32.7 million** at year-end 2024 to **$22.7 million** as of June 30, 2025, primarily due to the complete impairment of goodwill. Total liabilities increased from **$11.7 million** to **$16.8 million** over the same period, while stockholders' equity fell sharply from **$20.9 million** to **$5.9 million** Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $942,241 | $1,941,181 | | Goodwill | $0 | $10,103,048 | | Total Assets | $22,744,082 | $32,671,302 | | Total Liabilities | $16,836,671 | $11,748,839 | | Total Stockholders' Equity | $5,907,411 | $20,922,463 | - Goodwill was fully impaired, decreasing from **$10,103,048** at the end of 2024 to zero by June 30, 2025[17](index=17&type=chunk) [Unaudited Consolidated Statements of Operations](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of **$5.1 million** for Q2 2025, a substantial increase from the **$0.8 million** loss in Q2 2024. For the six-month period, the net loss widened to **$19.2 million** from **$5.3 million** year-over-year, primarily driven by a **$10.1 million** goodwill impairment charge and increased operating expenses Statement of Operations Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales, net | $1,047,029 | $812,770 | $1,637,595 | $1,623,260 | | Gross profit (loss) | ($1,457,717) | $203,823 | ($1,338,326) | $512,042 | | Loss from operations | ($4,799,626) | ($1,324,541) | ($18,531,300) | ($4,280,837) | | Net loss | ($5,146,737) | ($755,092) | ($19,183,118) | ($5,287,455) | | Net loss per share | ($2.01) | ($0.48) | ($8.10) | ($3.41) | - A significant non-cash goodwill impairment charge of **$10,103,048** was recorded in the first six months of 2025, which was the primary driver of the increased net loss[19](index=19&type=chunk) [Unaudited Consolidated Statement of Stockholders' Equity](index=8&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Stockholders%27%20Equity) Stockholders' equity decreased from **$20.9 million** at the end of 2024 to **$5.9 million** by June 30, 2025, primarily due to the **$19.2 million** net loss, partially offset by capital raised through note conversions and stock-based compensation Change in Stockholders' Equity (Six Months Ended June 30, 2025) | Description | Amount | | :--- | :--- | | Balance, December 31, 2024 | $20,922,463 | | Convertible note conversions | $3,581,011 | | Stock based compensation | $587,055 | | Net loss | ($19,183,118) | | **Balance, June 30, 2025** | **$5,907,411** | [Unaudited Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash used in operating activities increased to **$5.4 million** from **$1.7 million** in the prior-year period, with **$4.6 million** raised from financing activities, primarily through convertible notes, to fund operations Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($5,385,357) | ($1,700,563) | | Net cash used in investing activities | ($176,828) | ($135,288) | | Net cash provided by financing activities | $4,563,245 | $1,816,196 | | **Net change in cash** | **($998,940)** | **($19,655)** | - The company received **$4.75 million** in proceeds from the issuance of convertible notes in the first half of 2025, which was the primary source of financing[25](index=25&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide critical details on accounting policies and financial results, including business expansion, a reverse stock split, a goodwill impairment, related-party transactions, and new reporting segments - In Q1 2025, the company expanded its business portfolio by adding two new operations: medical supplies and drones[28](index=28&type=chunk) - A 1-for-10 reverse stock split was effected on August 8, 2025, and all share and per-share data has been retroactively adjusted[29](index=29&type=chunk) - A non-cash goodwill impairment of **$10,103,048** was recorded during the first quarter of 2025 due to a decline in the company's stock price[56](index=56&type=chunk)[68](index=68&type=chunk) - All revenue from the new medical supplies segment in H1 2025 was from Maddox Defense, Inc., a company owned by Envirotech's President and Interim CFO, Jason Maddox[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's operational and financial results, highlighting diversification into medical supplies and drones, a significant net loss driven by goodwill impairment, and actions taken to address Nasdaq compliance, while noting dependence on external financing and acknowledging tariff risks - The company began operating under three segments in January 2025: electric vehicles, medical supplies, and drones[131](index=131&type=chunk) - A Nasdaq deficiency notice for failing to meet the **$1** minimum bid price was received on March 6, 2025. The company subsequently effected a 1-for-10 reverse stock split on August 6, 2025, to regain compliance[136](index=136&type=chunk)[137](index=137&type=chunk) - Sales in the electric vehicle segment decreased due to less favorable market conditions, while the new medical supplies segment generated **$1.29 million** in revenue for the first six months of 2025[156](index=156&type=chunk) - As of June 30, 2025, the company had cash of **$942,241** and negative working capital of approximately **$120,030**. Management believes existing cash and financing plans are sufficient for the next twelve months[175](index=175&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company currently faces no material market risks from interest rate or foreign currency fluctuations but identifies potential future risks related to raw material costs, particularly batteries, as production scales - The company does not currently face material market risks such as interest rate or foreign currency exchange risk[191](index=191&type=chunk) - Potential risks may arise from the costs of raw materials, primarily batteries, as the company goes into production[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness related to an inability to maintain appropriate segregation of duties - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025[194](index=194&type=chunk) - The ineffectiveness is due to a material weakness from the inability to maintain appropriate segregation of duties[194](index=194&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material developments in its ongoing litigation with GreenPower Motor Company Inc. and continues to defend itself vigorously against the claims - The company is involved in ongoing litigation with GreenPower Motor Company Inc. and believes it has meritorious defenses[111](index=111&type=chunk)[197](index=197&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There were no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported for the period[198](index=198&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the Form 10-Q, including corporate governance documents, certifications by the CEO and CFO, and interactive data files (XBRL) - The report includes certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL documents[204](index=204&type=chunk)

Core Viewpoint - Envirotech Vehicles, Inc. aims to lead the future of electric mobility by integrating sustainable, American-assembled solutions across various sectors, targeting multi-billion-dollar markets [1][2]. Market Opportunities - The company is focusing on high-growth sectors such as agriculture, logistics, infrastructure, and marine applications, driven by the increasing demand for clean-energy solutions [2][3]. - Specific market projections include: - Agricultural Drones: U.S. market expected to reach $1.76 billion by 2030, fueled by precision farming and automation [8]. - Commercial & Industrial Drone Services: Global market projected to reach $58.4 billion by 2030, covering infrastructure inspection, surveillance, logistics, and delivery [8]. - Electric Watercraft: U.S. market anticipated to exceed $1.28 billion by 2032, including personal and light commercial vessels with electric jet propulsion [8]. Growth Drivers and Strategic Initiatives - Envirotech's integrated platform is designed for efficiency and scalability, with ongoing revenue generation from its commercial electric vehicle portfolio, including buses, vans, and trucks [4]. - The company expects additional topline growth starting in 2025, driven by strategic acquisitions and new revenue streams, including potential opportunities with government agencies [4][8]. Future Engagement - The company plans to provide updates on product launches and commercial operations as it executes its market strategy in the latter half of the year [5].

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]