, /PRNewswire/ -- – GreenPower Motor Company Inc. (Nasdaq: GP) (TSXV: GPV) ("GreenPower"), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced that its EV Star line of products are eligible for up to $130,000 in incentives uder the Innovative Small E-Fleet (ISEF) Set-Aside within the Clean Truck and Bus Voucher Incentive Project (HVIP). The ...

Accessibility StatementSkip Navigation State and GreenPower announce electric school bus pilot in Las Vegas, Santa Fe Governor Michelle Lujan GrishamEDD Cabinet Secretary Rob BlackEDD Deputy Cabinet Secretary Isaac RomeroGreenPower President Brendan RileyGreenPower CEO Fraser Atkinson SANTA FE, N.M., Sept. 29, 2025 /PRNewswire/ -- GreenPower Motor Company Inc. ("GreenPower") and the New Mexico Economic Development Department have announced the launching of the New Mexico All- Electric, Purpose-Built, Zero-E ...

Company Updates - GreenPower Motor Company Inc. has had its shares reinstated for trading on the TSX Venture Exchange after the completion of a review of its annual filings [1] - The British Columbia Securities Commission and the Ontario Securities Commission revoked a cease trade order related to GreenPower's securities on July 31, 2025, which was due to the company's failure to file audited financial statements by the deadline [1] - The cease trade order did not affect trading on the Nasdaq Stock Exchange [1] Financial Information - GreenPower has entered into a revolving loan facility with a credit limit of up to $5 million, with a current outstanding balance of approximately $3.6 million [2] - The loan bears interest at a floating rate of US Prime +5% per annum and has a maturity date of January 26, 2027 [2] - During the year ended March 31, 2025, the company received loans totaling CAD $475,000 from FWP Holdings LLC, USD $250,000 from Koko Financial Services Inc., and CAD $675,000 from 0851433 BC Ltd., with accumulated unpaid interest of approximately CAD $146,000 [3] Related Party Transactions - Loans from FWP Holdings with a principal balance of CAD $3,670,000 matured on March 31, 2023, but the principal remains outstanding, generating accrued and unpaid interest of approximately CAD $440,000 [3] - The company received unsecured, non-interest-bearing advances of $150,000 from Koko and CAD $50,000 from FWP Acquisition Corp., which were repaid during the quarter ended June 30, 2025 [3] - A short-term loan of $125,000 was received from Countryman, a company beneficially owned by a director, which was subsequently repaid [3] Company Overview - GreenPower designs, builds, and distributes a full suite of all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, and cargo vans [4] - The company employs a clean-sheet design to manufacture vehicles that are purpose-built to be battery-powered with zero emissions [4] - GreenPower was founded in Vancouver, Canada, and has primary operational facilities in southern California [4]

Core Points - GreenPower Motor Company Inc. has received a determination letter from Nasdaq stating it has not regained compliance with listing rules and faces potential delisting [1][2] - The company was notified on February 27, 2025, that its common shares had closed below US$1 for 30 consecutive business days, leading to a compliance deadline of August 26, 2025 [2] - The company is not eligible for a second compliance period due to not meeting the US$5,000,000 minimum stockholders' equity requirement [2] - On August 15, 2025, the company was informed of non-compliance with the Equity Rule and must submit a compliance plan by September 29, 2025 [3] - The company intends to appeal the determination, which will temporarily stay the suspension of its shares pending a decision [4] - If delisted, the company expects its shares to trade on OTC Markets and TSX Venture Exchange [5] Company Overview - GreenPower designs, builds, and distributes all-electric medium and heavy-duty vehicles, including transit buses and cargo vans [6] - The company employs a clean-sheet design for its vehicles, focusing on zero emissions and ease of maintenance [6] - Founded in Vancouver, Canada, GreenPower has primary operational facilities in southern California [6]

Company Overview - GreenPower Motor Company Inc. designs, builds, and distributes a range of all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, and cargo vans [2] - The company employs a clean-sheet design approach to manufacture vehicles that are purpose-built for battery power with zero emissions, integrating global suppliers for key components [2] - GreenPower was founded in Vancouver, Canada, and has primary operational facilities in southern California [2] Recent Developments - The company has delayed the implementation of its share consolidation from August 28, 2025, to September 8, 2025, which involves a consolidation ratio of one new common share for every ten old common shares [1] - The implementation of the share consolidation is subject to receiving all required approvals from the Nasdaq Stock Exchange [1]

Core Points - GreenPower Motor Company Inc. has announced the consolidation of its issued and outstanding common shares at a ratio of one new share for every ten currently outstanding shares, effective August 28, 2025 [1][2] - Following the consolidation, the total number of shares will decrease from 30,462,084 to approximately 3,046,229 shares, subject to rounding adjustments [2] - There will be no maximum number of authorized shares, and fractional shares will not be issued; instead, shareholders will be rounded up to the nearest whole number [2] Shareholder Instructions - Computershare Investor Services Inc. will send letters of transmittal to shareholders with instructions for exchanging pre-consolidation share certificates for post-consolidation certificates [4] - Shareholders are advised to send their share certificates along with the letter of transmittal to Computershare as per the provided instructions [4] Company Overview - GreenPower designs, builds, and distributes a range of all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, and cargo vans [5] - The company employs a clean-sheet design approach to manufacture vehicles that are battery-powered with zero emissions, integrating global suppliers for key components [5] - Founded in Vancouver, Canada, GreenPower has primary operational facilities in southern California and has been listed on the Toronto exchange since November 2015, completing its U.S. IPO and NASDAQ listing in August 2020 [5]

Core Points - GreenPower Motor Company Inc. plans to consolidate its common shares at a ratio of one new share for every ten currently outstanding shares [1][2] - The consolidation aims to comply with Nasdaq's minimum bid price requirement of $1 per share [2][6] - The number of outstanding shares will decrease from approximately 30,462,084 to about 3,046,208 post-consolidation [2] Company Compliance and Financial Status - The company received a notice from Nasdaq indicating non-compliance with the minimum stockholders' equity requirement of $2,500,000 [6][7] - GreenPower has until September 29, 2025, to submit a plan to regain compliance, with a potential extension until February 11, 2026, if accepted [7] - There is no immediate effect on the listing of the company's shares on the Nasdaq Capital Market [7] Shareholder Impact - No fractional shares will be issued; shareholders entitled to fractions will be rounded up to the nearest whole number [4] - The exercise price and number of shares for outstanding options, warrants, and convertible debentures will be proportionally adjusted following the consolidation [5] Company Overview - GreenPower designs and manufactures all-electric medium and heavy-duty vehicles, including transit buses and cargo vans [8] - The company was founded in Vancouver, Canada, and has operational facilities in southern California [8] - GreenPower has been listed on the Toronto exchange since November 2015 and completed its U.S. IPO and NASDAQ listing in August 2020 [8]

[Unaudited Consolidated Condensed Interim Statements of Financial Position](index=3&type=section&id=Unaudited%20Consolidated%20Condensed%20Interim%20Statements%20of%20Financial%20Position) As of June 30, 2025, GreenPower Motor Company Inc.'s financial position shows a decrease in total assets and cash balance, an increase in total liabilities and accumulated deficit, leading to an expanded shareholder's equity deficit Financial Position Overview (As of June 30, 2025 and March 31, 2025) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------- | :------------- | | **Assets** | | | | Cash | $248,184 | $344,244 | | Total Current Assets | $26,522,896 | $27,775,068 | | Total Assets | $33,334,460 | $35,071,725 | | **Liabilities** | | | | Total Current Liabilities | $20,567,637 | $19,668,259 | | Total Liabilities | $38,511,694 | $36,677,691 | | **Equity / (Deficit)** | | | | Accumulated Deficit | $(101,551,496) | $(97,423,507) | | Total Equity / (Deficit) | $(5,177,234) | $(1,605,966) | [Unaudited Consolidated Condensed Interim Statements of Operations and Comprehensive Loss](index=4&type=section&id=Unaudited%20Consolidated%20Condensed%20Interim%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended June 30, 2025, GreenPower's revenue significantly decreased year-over-year, but reduced selling, general, and administrative costs led to a period loss reduction from $5.39 million to $4.16 million Operations and Comprehensive Loss Overview (For the Three Months Ended June 30, 2025) | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :----------------------------------- | :------------- | :------------- | :------------- | | Revenue | $1,549,467 | $2,997,058 | -48.3% | | Cost of Sales | $1,187,785 | $2,775,194 | -57.2% | | Gross Profit | $361,682 | $221,864 | +63.0% | | Total Selling, General and Administrative Costs | $3,946,659 | $5,126,932 | -23.0% | | Loss for the Period | $(4,163,851) | $(5,388,648) | -22.7% | | Loss per Common Share, Basic and Diluted | $(0.14) | $(0.21) | -33.3% | [Unaudited Consolidated Condensed Interim Statements of Changes in Equity / (Deficit)](index=5&type=section&id=Unaudited%20Consolidated%20Condensed%20Interim%20Statements%20of%20Changes%20in%20Equity%20%2F%20(Deficit)) As of June 30, 2025, the company's equity/deficit expanded from a $1.61 million deficit on March 31, 2025, to a $5.18 million deficit, primarily due to a $4.16 million net loss for the period, partially offset by proceeds from issued shares and warrants Equity / (Deficit) Changes Overview (For the Three Months Ended June 30, 2025) | Metric | Balance as of March 31, 2025 | Change | Balance as of June 30, 2025 | | :------------------- | :----------------- | :----- | :----------------- | | Share Capital | $80,538,262 | $163,770 | $80,702,032 | | Reserves | $15,239,622 | $348,282 | $15,587,904 | | Accumulated Other Comprehensive Loss | $39,657 | $44,669 | $84,326 | | Accumulated Deficit | $(97,423,507) | $(4,127,989) | $(101,551,496) | | **Total Equity / (Deficit)** | **$(1,605,966)** | **$(3,571,268)** | **$(5,177,234)** | | **Key Changes:** | | | | | Shares Issued | | $197,964 | | | Warrants Issued | | $200,000 | | | Net Loss for the Period | | $(4,163,851) | | [Unaudited Consolidated Condensed Interim Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Condensed%20Interim%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, the company's net cash decrease was $96,060, a significant improvement from the $622,610 net cash decrease in the prior year, primarily due to reduced cash outflows from operating activities Cash Flow Overview (For the Three Months Ended June 30, 2025) | Cash Flow Category | June 30, 2025 | June 30, 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :------------- | | Cash Outflow from Operating Activities | $(1,406,642) | $(3,211,888) | -56.2% | | Cash Outflow from Investing Activities | $0 | $(45,892) | -100.0% | | Cash Inflow from Financing Activities | $1,278,051 | $2,637,448 | -51.5% | | Net Cash (Decrease) Increase | $(96,060) | $(622,610) | -84.5% | | Cash Balance at End of Period | $248,184 | $528,281 | -53.0% | [Notes to the Unaudited Consolidated Condensed Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Condensed%20Interim%20Financial%20Statements) This section provides detailed notes to GreenPower Motor Company Inc.'s consolidated condensed interim financial statements as of June 30, 2025, covering the company's nature of operations, accounting policies, asset and liability composition and changes, financial instrument risks, related party transactions, segment information, contingent liabilities, and subsequent events [Note 1. Nature and Continuance of Operations and Going Concern](index=8&type=section&id=Note%201.%20Nature%20and%20Continuance%20of%20Operations%20and%20Going%20Concern) This note details GreenPower's business as an electric vehicle manufacturer and highlights significant uncertainties regarding its ability to continue as a going concern - GreenPower Motor Company Inc. designs, manufactures, and distributes all-electric, zero-emission medium and heavy-duty vehicles for cargo, delivery, shuttle, public transit, and school bus sectors[7](index=7&type=chunk) - As of June 30, 2025, the company reported a cash balance of **$248,184**, working capital of **$5,955,259**, an accumulated deficit of **($101,551,496)**, and a shareholder's equity deficit of **($5,177,234)**[9](index=9&type=chunk) - The company's ability to continue as a going concern depends on its capacity to raise capital and generate cash flow, presenting significant uncertainties and substantial doubt about its going concern status[9](index=9&type=chunk) [Note 2. Material Accounting Policies](index=8&type=section&id=Note%202.%20Material%20Accounting%20Policies) This note outlines the significant accounting policies adopted by GreenPower, including the basis of financial statement preparation and specific treatments for financial instruments - The consolidated condensed interim financial statements are prepared in accordance with IAS 34, "Interim Financial Reporting," issued by the IASB, and follow the same accounting policies and methods of computation as the annual audited financial statements as of March 31, 2025[8](index=8&type=chunk)[11](index=11&type=chunk) - For loans with attached bonus warrants or shares, the loan component is initially recognized as a financial liability at fair value, with the remaining consideration allocated to the residual equity components (warrant reserve or share capital/share-based payment reserve)[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Management exercises significant judgment in determining the fair value of the host debt, selecting warrant valuation models and key assumptions, and classifying warrants and bonus shares as equity[18](index=18&type=chunk) [Note 3. Cash](index=10&type=section&id=Note%203.%20Cash) This note provides a summary of the company's cash balances at the end of the reporting periods, indicating no cash equivalents Cash Balances | Date | Cash Balance | | :----------- | :--------- | | June 30, 2025 | $248,184 | | March 31, 2025 | $344,244 | - As of June 30, 2025, and March 31, 2025, the company had no cash equivalents[19](index=19&type=chunk) [Note 4. Accounts Receivable](index=10&type=section&id=Note%204.%20Accounts%20Receivable) This note details the composition of accounts receivable, including allowances for doubtful accounts and overdue balances Accounts Receivable and Allowances | Metric | June 30, 2025 | March 31, 2025 | | :--------------------- | :------------- | :------------- | | Allowance for Accounts Receivable | $570,619 | $563,152 | | Accounts Receivable Overdue by More Than 120 Days | $580,495 | $575,592 | | Provision for Overdue Accounts | $560,694 | $559,312 | [Note 5. Finance Lease Receivables](index=10&type=section&id=Note%205.%20Finance%20Lease%20Receivables) This note provides details on the company's finance lease receivables, distinguishing between current and long-term portions - As of June 30, 2025, the company had **3 vehicles** classified as finance leases and **2 vehicles** classified as operating leases[21](index=21&type=chunk) Finance Lease Receivables Details (As of June 30, 2025) | Item | Amount | | :----------------------- | :--------- | | Total Finance Lease Receivables | $126,947 | | Current Portion of Finance Lease Receivables | $62,862 | | Long-Term Portion of Finance Lease Receivables | $64,085 | [Note 6. Inventory](index=11&type=section&id=Note%206.%20Inventory) This note outlines the composition of inventory, including parts, work-in-progress, and finished goods, and the amount recognized as cost of sales Inventory Composition (As of June 30, 2025 and March 31, 2025) | Inventory Category | June 30, 2025 | March 31, 2025 | | :--------- | :------------- | :------------- | | Parts | $4,196,664 | $4,208,596 | | Work-in-Process | $10,895,823 | $11,282,556 | | Finished Goods | $9,888,317 | $10,110,736 | | **Total** | **$24,980,804** | **$25,601,888** | - For the three months ended June 30, 2025, **$1,180,135** of inventory was recognized as cost of sales, compared to **$2,556,085** for the same period in 2024[23](index=23&type=chunk) [Note 7. Right of Use Assets and Lease Liabilities](index=12&type=section&id=Note%207.%20Right%20of%20Use%20Assets%20and%20Lease%20Liabilities) This note details the company's right-of-use assets and lease liabilities, including related expenses and potential risks from lease disputes Right of Use Assets and Lease Liabilities Overview | Metric | June 30, 2025 | March 31, 2025 | | :------------------- | :------------- | :------------- | | Carrying Value of Right of Use Assets | $5,194,459 | $5,479,555 | | Total Lease Liabilities | $6,082,495 | N/A | | Current Portion of Lease Liabilities | $752,115 | $633,035 | | Long-Term Portion of Lease Liabilities | $5,330,380 | $5,535,051 | - The company received a default notice from its landlord due to a dispute over rent credit interpretation for its West Virginia leased facility, potentially facing risks of paying arrears, prepaying rent, or terminating the lease and vacating the premises[26](index=26&type=chunk) Lease-Related Expenses (For the Three Months Ended June 30, 2025) | Expense Category | 2025 | 2024 | | :------------- | :------- | :------- | | Interest Expense on Lease Liabilities | $149,769 | $86,483 | | Depreciation Expense on Right of Use Assets | $208,375 | $192,324 | | Total Lease Payments | $254,690 | $261,355 | [Note 8. Property and Equipment](index=13&type=section&id=Note%208.%20Property%20and%20Equipment) This note details the changes in property and equipment, reflecting depreciation and foreign exchange translation adjustments Property and Equipment Changes (For the Three Months Ended June 30, 2025) | Item | Amount | | :----------------------- | :------------- | | Property and Equipment as of March 31, 2025 | $1,310,581 | | Less: Depreciation | $(162,724) | | Add: Foreign Exchange Translation | $5,162 | | **Property and Equipment as of June 30, 2025** | **$1,153,019** | [Note 9. Restricted deposit](index=13&type=section&id=Note%209.%20Restricted%20deposit) This note describes the company's restricted deposits, primarily pledged as collateral for an irrevocable standby letter of credit - The company has pledged **$400,000** in term deposits as collateral for an irrevocable standby letter of credit, supporting the company's import of goods into the United States[33](index=33&type=chunk) - On April 24, 2025, the standby letter of credit was amended, increasing by **$50,000** to **$450,000**, with the lender reserving **$50,000** from the company's line of credit as collateral for the revised letter of credit[33](index=33&type=chunk) [Note 10. Line of credit](index=14&type=section&id=Note%2010.%20Line%20of%20credit) This note details the company's line of credit, including its limit, interest rate, collateral, and compliance with financial covenants - The company has a line of credit up to **$6,000,000**, with an interest rate of the bank's U.S. prime rate (8.0% as of June 30, 2025) plus a 2.25% spread[34](index=34&type=chunk) - The line of credit is secured by a general floating charge over the company's assets and those of a subsidiary, and personally guaranteed by two directors for a total of **$5,020,000**[35](index=35&type=chunk) - The company is required to maintain a current ratio financial covenant greater than **1.2:1**, which it met as of June 30, 2025, and March 31, 2025[35](index=35&type=chunk) Line of Credit Balances | Date | Drawn Balance | | :----------- | :----------- | | June 30, 2025 | $5,948,580 | | March 31, 2025 | $5,983,572 | [Note 11. Term loan facility](index=14&type=section&id=Note%2011.%20Term%20loan%20facility) This note describes the company's term loan facility, including its purpose, interest rate, security, and compliance status with financial covenants - In February 2024, the company entered into a **$5,000,000** revolving loan agreement with Export Development Canada (EDC) to finance working capital investments for electric vehicle deliveries[37](index=37&type=chunk) - The loan bears a floating interest rate of the U.S. prime rate plus **5%**, secured by guarantees and security interests from the company and certain subsidiaries[37](index=37&type=chunk) - The company complies with the current ratio covenant of greater than **1.2:1**, but anticipates non-compliance with the debt service coverage ratio covenant (**1.25:1**) by the end of fiscal 2026 due to not generating positive EBITDA over the past four quarters[38](index=38&type=chunk) Term Loan Facility Balances | Date | Loan Balance | | :----------- | :----------- | | June 30, 2025 | $3,591,507 | | March 31, 2025 | $3,591,354 | [Note 12. Share capital](index=15&type=section&id=Note%2012.%20Share%20capital) This note outlines the company's authorized share capital and details the issuance of common shares during the period - The company is authorized to issue an unlimited number of common shares and preferred shares without par value[39](index=39&type=chunk) - For the three months ended June 30, 2025, the company issued **216,007** common shares through its 2025 ATM for gross proceeds of **$97,964**, and **234,447** common shares as bonus shares for a **$1.5 million** loan, totaling **450,454** common shares issued[39](index=39&type=chunk)[40](index=40&type=chunk) [Note 13. Stock Options](index=15&type=section&id=Note%2013.%20Stock%20Options) This note provides an overview of the company's stock option plans, including outstanding and exercisable options, and related share-based payment expenses - The company operates the 2023 Equity Incentive Plan and 2022 Equity Incentive Plan, granting stock options to directors, officers, employees, and consultants[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) Stock Option Overview (As of June 30, 2025) | Metric | March 31, 2025 | June 30, 2025 | | :------------------- | :------------- | :------------- | | Total Options Outstanding | 2,582,628 | 2,506,928 | | Total Options Exercisable | 1,681,378 | 1,803,178 | | Weighted Average Exercise Price | CDN$7.95 | CDN$7.92 | | Weighted Average Remaining Life | 3.2 years | 3.0 years | - For the three months ended June 30, 2025, **75,700** stock options were forfeited with a weighted average exercise price of **CDN$2.86**[46](index=46&type=chunk) Share-Based Payment Expense | Period | Share-Based Payment Expense | | :------------------- | :------------- | | Three months ended June 30, 2025 | $184,144 | | Three months ended June 30, 2024 | $408,005 | [Note 14. Warrants](index=18&type=section&id=Note%2014.%20Warrants) This note provides an overview of the company's warrants, including the total outstanding and newly issued warrants during the period Warrants Overview (As of June 30, 2025) | Metric | March 31, 2025 | June 30, 2025 | | :----------- | :------------- | :------------- | | Total Warrants Outstanding | 1,725,000 | 3,984,203 | | Warrants Issued During the Period | - | 2,259,203 | - As of June 30, 2025, the company issued a total of **2,259,203** new warrants, primarily related to several related party loans in May and June 2025, with exercise prices ranging from **$0.38 to $0.46**[48](index=48&type=chunk) [Note 15. Deferred Revenue](index=18&type=section&id=Note%2015.%20Deferred%20Revenue) This note details the changes in deferred revenue, primarily from customer deposits for undelivered vehicles and parts, distinguishing between current and long-term portions Deferred Revenue Changes (As of June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | | :----------------------- | :------------- | :------------- | | Deferred Revenue, Beginning of Period | $10,138,356 | $9,942,385 | | Deferred Revenue Added During Period | $374,312 | $1,077,193 | | Deposits Returned | $(3,000) | $(22,534) | | Deferred Revenue Recognized During Period | $(31,430) | $(858,688) | | **Deferred Revenue, End of Period** | **$10,478,238** | **$10,138,356** | | Current Portion | $3,619,418 | $3,279,536 | | Long-Term Portion | $6,858,820 | $6,858,820 | - Deferred revenue primarily consists of customer deposits for the purchase of undelivered all-electric vehicles and parts[49](index=49&type=chunk) [Note 16. Financial Instruments](index=19&type=section&id=Note%2016.%20Financial%20Instruments) This note identifies the company's financial instruments and discusses the associated credit, liquidity, and market risks, including interest rate and foreign exchange exposures - The company's financial instruments include cash, accounts receivable, finance lease receivables, restricted deposits, line of credit, loans payable to related parties, term loans, accounts payable and accrued liabilities, other liabilities, and lease liabilities[51](index=51&type=chunk) - The company faces credit risk (primarily from cash, accounts receivable, finance lease receivables, and restricted deposits), liquidity risk (significant uncertainty regarding going concern, reliance on additional financing), and market risk (interest rate and foreign exchange risks)[53](index=53&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) Canadian Dollar Denominated Financial Assets and Liabilities (As of June 30, 2025) | Item | Canadian Dollar Amount | | :----------------------- | :----------- | | Cash | $53,317 | | Prepayments and Deposits | $10,988 | | Finance Lease Receivables | $42,092 | | Accounts Payable and Accrued Liabilities | $(923,922) | | Related Party Loans | $(5,364,766) | | **Net Exposure** | **$(6,182,291)** | | Impact of 10% CAD to USD Exchange Rate Change on Net Income/Loss | Approximately $453,162 | [Note 17. Related Party Transactions](index=20&type=section&id=Note%2017.%20Related%20Party%20Transactions) This note details transactions with related parties, including compensation for key management personnel, loans from related parties, and personal guarantees provided by directors Compensation for Directors, Officers, and Key Management Personnel (For the Three Months Ended June 30, 2025) | Compensation Category | June 30, 2025 | June 30, 2024 | | :--------------- | :------------- | :------------- | | Salaries and Benefits | $135,280 | $138,730 | | Consulting Fees | $126,250 | $141,250 | | Non-Cash Option Vesting | $109,517 | $291,914 | | **Total** | **$371,047** | **$571,894** | - As of June 30, 2025, accounts payable and accrued liabilities include **$246,085** owed to officers, directors, their controlled companies, and shareholders, which are non-interest bearing, unsecured, and without fixed repayment terms[60](index=60&type=chunk) - The company obtained new term loans totaling **$1.5 million** from related parties in Q2 2025, bearing an annual interest rate of **12%** and accompanied by bonus warrants or shares[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[69](index=69&type=chunk) - Existing loans from FWP Holdings LLC (beneficially owned and controlled by the company's CEO and Chairman) have been subordinated to the security interest of the term loan facility under an extension and subordination agreement, thus classified as non-current liabilities[61](index=61&type=chunk) - The fair value of the newly issued related party loans was **$1.2 million**, resulting in an effective interest rate of approximately **24%** over the loan term[66](index=66&type=chunk) - Company directors Fraser Atkinson and David Richardson provided personal guarantees totaling **$5,020,000** for the company's operating line of credit[68](index=68&type=chunk) [Note 18. Segmented information and supplemental cash flow disclosure](index=23&type=section&id=Note%2018.%20Segmented%20information%20and%20supplemental%20cash%20flow%20disclosure) This note provides information on the company's single operating segment, geographical revenue breakdown, and supplemental cash flow details for interest and taxes paid - The company operates in one reportable operating segment: the manufacturing and distribution of all-electric medium and heavy-duty vehicles[70](index=70&type=chunk) Revenue by Geographic Region (For the Three Months Ended June 30, 2025) | Region | June 30, 2025 | June 30, 2024 | | :----------- | :------------- | :------------- | | United States | $1,227,600 | $2,594,560 | | Canada | $321,867 | $402,498 | | **Total** | **$1,549,467** | **$2,997,058** | Cash Payments for Interest and Taxes (For the Three Months Ended June 30, 2025) | Item | June 30, 2025 | June 30, 2024 | | :------- | :------------- | :------------- | | Interest Paid | $391,028 | $262,623 | | Taxes Paid | $0 | $0 | - As of June 30, 2025, and March 31, 2025, over **90%** of the company's property and equipment was located in the United States[71](index=71&type=chunk) [Note 19. Warranty Liability](index=23&type=section&id=Note%2019.%20Warranty%20Liability) This note details the company's warranty liabilities, including the basis for estimation and expected future warranty costs - The company typically provides a basic warranty for its vehicles, mostly for a **five-year** term, and estimates provisions for future warranty claims based on historical claim information and recent trends[73](index=73&type=chunk)[74](index=74&type=chunk) Warranty Liability Changes (As of June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | | :--------------- | :------------- | :------------- | | Balance, Beginning of Period | $2,565,429 | $2,499,890 | | Additions to Warranty | $50,636 | $714,956 | | Warranty Payments | $(72,247) | $(649,092) | | **Total** | **$2,544,104** | **$2,565,429** | | Current Portion | $810,862 | $816,326 | | Long-Term Portion | $1,733,242 | $1,749,103 | - The company anticipates incurring approximately **$810,862** in warranty costs over the next twelve months[74](index=74&type=chunk) [Note 20. Litigation and Legal Proceedings](index=24&type=section&id=Note%2020.%20Litigation%20and%20Legal%20Proceedings) This note outlines the company's involvement in various pending legal actions, including civil claims, counterclaims, and customer disputes, and the associated contingent liabilities - The company is involved in several pending legal proceedings, including civil claims and counterclaims with a former CEO and director, a claim for breach of a confidentiality agreement, and a customer claim arising from lease termination and vehicle repossession[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - As of March 31, 2025, the company recorded a contingent liability of **$310,000** for potential legal judgments, classified as a current liability[79](index=79&type=chunk) - Management believes there is an additional potential liability of **$437,500** related to other legal matters, but no provision has been made for this amount due to management's assessment of a high probability of successful defense[79](index=79&type=chunk) [Note 21. Subsequent Events](index=25&type=section&id=Note%2021.%20Subsequent%20Events) This note discloses significant events that occurred after the reporting period, including stock option forfeitures, new related party loans, and common share issuances - Between July 1 and August 8, 2025, **55,178** stock options were forfeited with a weighted average exercise price of **CAD$3.78**[80](index=80&type=chunk) - On July 4, 2025, the company obtained loans totaling **$250,000** from related parties, granting **304,878** warrants and issuing **60,975** common shares as inducements[80](index=80&type=chunk) - In August 2025, the company issued **459,493** common shares through its ATM for gross proceeds of **$247,437**[80](index=80&type=chunk)

GreenPower Motor Company (GP) Update Summary Company Overview - GreenPower Motor Company designs, manufactures, and distributes all-electric zero-emission medium and heavy-duty vehicles, focusing on the commercial vehicle market and school bus sector [5][6] Key Highlights - Over 700 Class 4 EV Star models delivered, including passenger and trucking variants [5] - Strong order book for GreenPower school buses, with significant demand in the school bus sector [8] - Unique position as the only OEM offering both Class 4 Type A and Class 8 Type D all-electric school buses [6] Industry Dynamics - Notable slowdown in the adoption of electric medium and heavy-duty commercial vehicles due to rescinded regulations, relaxed mandates, and reduced pressure for adoption [6][7] - School bus sector shows increasing demand, with over 12,000 electric school buses ordered by October 2024, compared to a total of 490,000 school buses in operation nationwide [9][10] Market Opportunities - Capturing just 1% of diesel bus replacements could yield a $1.3 billion annual revenue opportunity [11] - Key markets include New York (50,000 school buses) and California (30,000 school buses), representing nearly 20% of the marketplace [10] - State mandates are accelerating the adoption of electric school buses [10] Health and Environmental Impact - Electric school buses are seen as a solution to health issues caused by diesel emissions, particularly affecting children's respiratory health [12][13] - Research indicates that switching to electric buses can improve student attendance and test scores [13][14] Technological Innovations - Vehicle-to-grid (V2G) technology allows school buses to act as power sources for the grid, providing grid stabilization and peak demand offset [19][21] - The Mega Beast product features nearly 400 kWh of battery capacity, enhancing its role as a power resource [22] Competitive Landscape - GreenPower utilizes a native EV platform for its vehicles, unlike competitors who modify existing platforms [36][38] - The company has significant battery capacity, enabling longer ranges and V2G capabilities [41] Financial Performance - Reported revenues of just under $20 million for the fiscal year ending March 31, 2025, down from the previous year [58] - Gross profit margin of 9.7% for the year, with a target of 22-23% as operations stabilize [60] Challenges and Risks - Tariffs have caused production delays and increased costs, impacting the supply chain [44][64] - The company is navigating uncertainties related to tariffs and their potential impact on manufacturing and pricing [63][80] Legislative Efforts - GreenPower is actively lobbying against tariffs on school buses, arguing they are counterproductive and harmful to public entities [79][80] - The company is also working with other manufacturers to advocate for federal support for electric school bus adoption [85] Future Outlook - The company aims to achieve positive cash flow by the end of the year, focusing on profitable sales opportunities in the school bus market [77] - Anticipates growth in both core states (New York and California) and other states interested in adopting electric school buses [43]

Core Insights - GreenPower Motor Company has signed a contract with the state of New Mexico to implement an all-electric school bus pilot project, following an award from a request for proposal published in May [1][3] - The pilot project will last two years, deploying a total of six all-electric school buses, with three Nano BEAST Access buses in the first year and three BEAST and Mega BEAST buses in the second year [2][3] - The project is funded with over $5 million allocated for vehicle purchases, charging infrastructure, and overall management [3] Project Details - The pilot will consist of five rounds each school year, with each round lasting six weeks, allowing the buses to rotate around the state [2] - GreenPower will install charging systems and provide training for drivers, mechanics, and first responders to ensure a smooth testing period [2][3] - The Mega BEAST bus features a 387 kWh battery pack, offering a range of up to 300 miles on a single charge, which is the highest in its class [4] Charging Infrastructure - The pilot will evaluate both Level 3 DC fast chargers and Level 2 slow chargers, with a focus on charging rates and grid resiliency [4][5] - GreenPower is collaborating with Highland Electric Fleets to implement the necessary charging infrastructure for the pilot [5] - The project aims to reduce transportation-related emissions and modernize school transportation in New Mexico [5] Company Background - GreenPower designs and manufactures a range of all-electric medium and heavy-duty vehicles, including school buses, transit buses, and shuttles [7] - The company utilizes a clean-sheet design approach to create zero-emission vehicles, integrating global suppliers for key components [7] - GreenPower was founded in Vancouver, Canada, and has operational facilities in southern California, with a NASDAQ listing since August 2020 [7]