Core Insights - Envirotech Vehicles, Inc. (EVTV) has secured deposits for 80 heavy capacity drones from Studio di Agronomia Baffetti and Venture Air Solutions, marking a significant expansion in its drone business [2][5] - This development aligns with new European drone regulations, allowing EVTV to enter the European market for the first time [3][5] Company Update - The deposits consist of 40 drones each from Studio Baffetti and Venture Air Solutions, indicating strong demand for EVTV's heavy capacity drones in both Europe and the U.S. [2][7] - The average unit value of the drones is confirmed to be over $75,000, contributing to a projected revenue of over $150 million for the drone division by Q4 2027 [6][8] Regulatory Context - The announcement coincides with the European Union's Regulation (EU) 2019/947 and Italy's ENAC framework, which facilitate large-scale agricultural and industrial drone operations [3][5] - EVTV's drones comply with both U.S. and European aviation regulations, positioning the company favorably for international expansion [3][5] Strategic Partnerships - Studio Baffetti's investment is aimed at leveraging the new European standards for precision agriculture, while Venture Air Solutions focuses on enhancing aerial infrastructure and logistics [7] - The partnerships validate EVTV's status as a leader in the heavy capacity drone market, ready for deployment in both American and European markets [5][7] Strategic KPIs & Program Milestones - Total drones under deposit: 80, with a target timeline of Q4 2025 [6] - Flight-test hours logged: over 2,000, completed [8] - Targeted U.S. production capacity: 250 units per month by Q3 2026 [8]

Core Insights - Envirotech Vehicles, Inc. (EVTV) has signed a Letter of Intent (LOI) with Studio di Agronomia Baffetti to deploy precision-spray fleets in Italy's Tuscany region, targeting 1.1 million hectares and a market opportunity exceeding $300 million in precision agriculture across Europe [1][4]. Group 1: Partnership Details - The collaboration will integrate EVTV's Heavy-Lift Agricultural Drones into vineyard and olive grove spraying operations, replacing traditional tractor-based methods with aerial systems designed for steep terrains [2][4]. - The partnership aims to establish Italy's first certified authority for commercial drone-based spray operations, adhering to EU aviation and environmental regulations [3]. Group 2: Market Potential - Tuscany has over 58,000 hectares of vineyards and 90,000 hectares of olive groves, contributing to the overall 1.1 million hectares of high-value agricultural land in Italy [4]. - The serviceable market opportunity for aerial spray operations is estimated to be between $250 million and $400 million [7]. Group 3: Operational Advantages - EVTV's agricultural drones offer several advantages, including the ability to spray immediately after rainfall, a reduction of up to 40% in chemical and water usage, and access to areas that tractors cannot reach [7]. - The deployment timeline includes the arrival of the first demo and regulatory test drone in late 2025, with a full commercial launch expected in 2026, pending certification [7].

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]