Core Viewpoint - GreenPower Motor Company reported a revenue of $8.5 million and a net income of $4.2 million for the third quarter of fiscal year 2026, highlighting a successful transition to a production strategy driven by customer orders despite challenges in the EV sector [1]. Financial Performance - Revenue for the third quarter was $8.5 million, an increase from $7.2 million in the same quarter of the previous year, generated from vehicle sales, parts, leases, and deferred income [1]. - Gross profit on vehicle sales was approximately 28% [1]. - Total sales, general, and administrative costs were reduced to $2.4 million from $5.2 million year-over-year, with recurring expenses excluding non-cash items being less than $2 million [1]. Capitalization and Funding - The company raised gross proceeds of $1,120,050 from the issuance of Series A convertible preferred shares, with a stated value of $1,179,000 [1]. - GreenPower has the right to issue additional Series A Shares in tranches of up to $2 million, totaling up to $16 million under certain conditions [1]. - The company completed several transactions to recapitalize, including closing two term loans totaling $5 million and establishing a new banking relationship with CIBC [1]. Project Developments - GreenPower is managing the New Mexico All-Electric, Purpose-Built, Zero-Emission School Bus Pilot Program, with over $5 million in funding for deploying various types of all-electric school buses and charging infrastructure [1]. - The company is focused on addressing specific challenges in New Mexico, including deployment in urban and rural settings and operating in extreme cold weather [1].

Financing Announcement - GreenPower Motor Company has closed a credit approval from CIBC for US$5 million in financing facilities, which includes a US$3 million revolving line of credit and a US$2 million term loan with a three-year term [1] - Two directors of the Company have provided personal guarantees of up to US$5 million in support of the financing facilities, and the Company has issued warrants and shares as incentives for these guarantees [1][2] Use of Proceeds - A portion of the net proceeds from the financing was utilized to repay and close the Company's existing operating line of credit, while the remainder is allocated for general corporate purposes [1] Related Party Transactions - The issuance of 2,016,129 non-transferable share purchase warrants and 403,225 shares to the Guarantors is classified as a related party transaction under Multilateral Instrument 61-101, but is exempt from formal valuation and minority approval requirements [2]

Market Overview - U.S. stocks traded higher, with the Dow Jones index gaining around 0.2% on Friday, reaching 49,342.43, while the NASDAQ climbed 0.29% to 23,547.90 and the S&P 500 rose 0.29% to 6,941.76 [1] - Utilities shares gained by 2% on Friday, indicating strength in that sector [1] Sector Performance - Consumer discretionary stocks dipped by 0.6% on Friday, reflecting weakness in that sector [2] Economic Indicators - The U.S. economy ended 2025 with a nonfarm payroll increase of 50,000 in December, slightly below expectations of 60,000 and mostly unchanged from November's revised gain of 56,000 [3][11] - The unemployment rate decreased from a revised 4.5% in November to 4.4%, below expectations of 4.5% [11] - Average hourly earnings rose by 0.3% in December, accelerating from November's 0.2% increase and matching forecasts [11] - Housing starts declined by 4.6% to an annualized rate of 1.246 million units, while building permits fell by 0.2% to an annualized rate of 1.412 million [11] - The University of Michigan's consumer sentiment index increased to 54.0 in January, marking its strongest reading since September 2025 [11] Commodity Market - Oil prices increased by 2.3% to $59.11, gold rose by 0.9% to $4,501.40, silver surged by 5.1% to $79.015, and copper rose by 1.7% to $5.893 [6] Stock Movements - Rich Sparkle Holdings Ltd shares surged 112% to $51.41 after signing a $39 million offering of 3 million ordinary shares at $13 per share [10] - Alpha Technology Group Ltd shares increased by 76% to $36.66 [10] - GreenPower Motor Company Inc shares rose by 61% to $1.32 after receiving a $5 million LEDA award and $9.6 million in tax credits [10] - Aquestive Therapeutics Inc shares dropped 39% to $3.79 following an FDA letter identifying deficiencies [10] - Aclarion Inc shares fell 37% to $5.15, and Beta Bionics Inc shares decreased by 34% to $21.12 after reporting preliminary fourth-quarter financial results [10]

Core Viewpoint - GreenPower Motor Company has announced plans to establish a manufacturing facility in New Mexico, citing the state's electric vehicle ecosystem, financial incentives, and the Santa Teresa Foreign Trade Zone designation as key factors for this decision [1][2][3]. Group 1: Company Overview - GreenPower Motor Company is a manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles, targeting the cargo, delivery, shuttle, transit, and school bus markets [1][6]. - The company employs a clean-sheet design approach to manufacture vehicles that are battery-powered and zero-emission, integrating global suppliers for key components [6]. Group 2: Economic Impact - The establishment of the new facility is expected to create 340 permanent jobs in Santa Teresa, contributing to local economic development and cleaner air [2][3]. - The state of New Mexico has committed a strategic investment of $14.6 million in financial incentives to support the facility's establishment, which includes $5 million from the New Mexico Local Economic Development Act (LEDA) [3]. Group 3: Strategic Location and Benefits - The Santa Teresa Borderplex is a growing economic zone that serves as a key U.S.-Mexico trade hub, enhancing manufacturing, logistics, and advanced technology opportunities [4]. - The Foreign Trade Zone designation allows GreenPower to streamline customs procedures and benefit financially from inventory, parts, and distribution, reducing tariff uncertainties [5]. Group 4: State Initiatives - New Mexico has implemented policies to promote the adoption of zero-emission vehicles, including contracts to electrify over 5,000 state fleet vehicles and significant investments in EV infrastructure [2][3]. - The state's "Electrify New Mexico" initiative aims to support the electrification of more than 2,000 school buses and 3,500 state transit vehicles, aligning with GreenPower's goals [2][3].

Core Viewpoint - GreenPower Motor Company has secured $5 million in financing from CIBC, which includes a $3 million revolving line of credit and a $2 million term loan, aimed at accelerating the production of all-electric vehicles to meet existing customer orders [1] Financing Details - The financing facilities consist of a $3 million revolving line of credit and a $2 million term loan with a three-year term [1] - GreenPower has also received approval for a letter of credit of $450,000 and a facility of up to $2.5 million, pending approval from another financial institution [1] - The company has closed an additional $5 million in term loans from two family offices, which provided personal guarantees for these credit facilities [1] Use of Proceeds - A portion of the net proceeds from the financing will be allocated to repay the existing operating line of credit, while the remainder will be used for general corporate purposes [1] Related Party Transactions - The company will issue 3,205,128 non-transferable share purchase warrants to one family office, allowing the purchase of common shares at an exercise price of $0.78 for 36 months [2] - Additionally, 641,025 shares will be issued to one of the family offices as part of the financing arrangement [2] - These transactions are classified as related party transactions but are exempt from formal valuation and minority approval requirements [2] Securities Regulation - All securities issued in connection with the loans will be subject to a statutory hold period of four months plus a day from the closing date [3]

Core Insights - GreenPower offers a comprehensive range of Class 4 all-electric, purpose-built, zero-emission commercial vehicles eligible for various incentives [1][4] - The new round of Standard HVIP funding provides over $140 million for fleets, with base vouchers of $60,000 available for each Class 4 zero-emission vehicle [2] - Small business fleets can access vouchers up to $130,000 per vehicle under the Innovative Small E-Fleet (ISEF) program, which allocates $20 million for flexible adoption pathways [3] Funding Opportunities - Medium and large fleets with 20 or more medium and heavy-duty vehicles can hold up to 20 unredeemed vouchers at a time, with funding available on a first-come, first-served basis [2] - Past funding rounds have been depleted quickly, emphasizing the need for fleets to prepare documentation and submit requests promptly [2][4] - The ISEF program supports innovative solutions like short-term leases and bundled offerings, helping smaller operators overcome initial cost and infrastructure challenges [3] Product Offerings - GreenPower's lineup includes various models such as the EV Star Passenger Van, EV Star Mobility Plus, and commercial cargo vehicles, all available for immediate delivery [4] - The company emphasizes collaboration with customers and upfitters to customize vehicles according to specific requirements [4] - GreenPower's vehicles are designed with a clean-sheet approach, ensuring they are purpose-built for battery power and zero emissions [6]

Core Points - GreenPower Motor Company has entered an agreement to retain over $6 million in deposits for the manufacture of EV Star Cab & Chassis, with no further obligation to deliver vehicles [1] - The company will recognize a total of $6.8 million of deferred revenue in the current quarter ending December 31, 2025, improving its balance sheet [2] - The elimination of deferred revenue will reduce total liabilities and increase shareholders' equity by $6.8 million, strengthening the company's financial position [3] Financial Impact - The advance payments received for the EV Star Cab & Chassis were recorded as deferred revenue until vehicle delivery was accepted [2] - The recognition of this deferred revenue will positively impact the company's revenue and cash flow [3] Production and Future Plans - The EV Star Cab & Chassis manufactured with these payments will be utilized to produce the all-electric Type A Nano BEAST school bus, which is expected to reduce production lead times [3] - This strategic move is anticipated to create a clear path toward accelerated revenue recognition, margin expansion, and improved operating cash flow for the company [3]

Core Insights - GreenPower Motor Company is accelerating production of its all-electric school bus lineup, supported by a financing facility of up to $18 million, which will be deployed in tranches of up to $2 million [1][3] - The company has over $50 million in contracted orders for its Nano BEAST and BEAST school buses, allowing for efficient conversion of backlog into deliveries [3][6] - GreenPower is the only fully electric OEM manufacturing both Class 4 Type A and Class 8 Type D school buses, positioning itself to capture market share as the school transportation sector transitions to zero-emission fleets [3] Financing and Production - The financing facility is designed to optimize cash conversion cycles, enabling the company to align capital deployment with production timing as it scales output [1][6] - More than 130 chassis have already been produced, which positions GreenPower for improved gross margins and a pathway to positive operating cash flow [6] Market Position and Strategy - The company employs a vertically integrated, purpose-built platform strategy, integrating global suppliers for key components to meet various operator specifications [4] - Federal and state incentives are expected to support the transition to zero-emission fleets, benefiting GreenPower's market position [3]

Core Viewpoint - GreenPower Motor Company Inc. has entered into a Securities Purchase Agreement to issue up to US$18 million of Series A Convertible Preferred Shares, aimed at enhancing its capital structure and supporting its operations in the all-electric vehicle market [1][2]. Financing Details - The initial tranche includes 754 Series A Convertible Preferred Shares issued through a public offering and 425 shares through a private placement, totaling a stated value of $1,179,000 and a purchase price of $1,120,050 [2]. - A follow-on tranche of 926 Series A Convertible Preferred Shares is planned, with a stated value of $926,000 and a purchase price of $879,700, to be filed under a registration statement at a later date [2]. - The institutional investor has the right to acquire additional shares in tranches of up to $2 million, potentially totaling up to US$16 million [2]. Dividend and Conversion Terms - The Series A Convertible Preferred Shares carry a dividend rate of 9% per annum [2]. - Each share is convertible into common shares at 105% of the stated amount or at 125% of the closing price of GreenPower's common shares on NASDAQ prior to issuance, subject to adjustments [2]. Regulatory Compliance - The public offering is conducted under a shelf registration statement filed with the U.S. Securities and Exchange Commission, which was declared effective earlier in 2024 [3]. Company Overview - GreenPower designs, builds, and distributes a range of all-electric medium and heavy-duty vehicles, including transit buses, school buses, and cargo vans, focusing on zero-emission solutions [5].

Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $2,489,820, a decrease of 53.4% compared to $5,347,190 for the same period in 2024[5] - Gross profit for the six months ended September 30, 2025, was $635,400, down from $681,499 in 2024, reflecting a decline of 6.8%[5] - For the six months ended September 30, 2025, total revenue was $4,454,135, down 46.6% from $8,344,248 in the prior year[70] - For the three months ended September 30, 2025, total revenue was $2,904,668, a decrease of 45.7% compared to $5,347,190 for the same period in 2024[70] Losses and Financial Performance - The company reported a net loss of $3,593,359 for the three months ended September 30, 2025, compared to a net loss of $4,701,864 in 2024, indicating an improvement of 23.6%[5] - For the six months ended September 30, 2025, the company reported a loss of $7,757,210, an improvement from a loss of $10,090,512 in the same period of 2024, representing a 23.3% reduction in losses[7] - The company has not generated positive EBITDA in the trailing four quarters ended September 30, 2025, impacting its compliance with financial covenants[38] Cash and Working Capital - Cash increased to $511,094 as of September 30, 2025, from $344,244 as of March 31, 2025, representing a growth of 48.4%[3] - Working capital as of September 30, 2025, was $6,352,309, while the accumulated deficit stood at $(105,123,190)[10] - The company's cash balance increased to $511,094 as of September 30, 2025, compared to $344,244 at the end of March 31, 2025, indicating a net increase of $166,850[10] Inventory and Accounts Receivable - Inventory decreased to $23,758,913 as of September 30, 2025, down 7.2% from $25,601,888 as of March 31, 2025[3] - Total inventory decreased to $23,758,913 as of September 30, 2025, from $25,601,888 at March 31, 2025, with a write-down of inventory amounting to $210,000 during the period[25] - The company recorded a provision of $595,681 against accounts receivable as of September 30, 2025, reflecting an increase from $563,152 at March 31, 2025[22] - The company’s total accounts receivable included $670,374 that was past due over 120 days as of September 30, 2025[22] Deferred Revenue and Liabilities - Deferred revenue increased to $12,629,065 as of September 30, 2025, up from $10,138,356 as of March 31, 2025, reflecting deposits received for undelivered all-electric vehicles and parts[51][52] - The company recognized $1,721,554 in revenue from deferred revenue during the six months ended September 30, 2025[52] - The warranty liability as of September 30, 2025, was $2,558,425, with an expected $810,112 in warranty costs to be incurred within the next twelve months[75][74] - The company recorded a contingent liability of $110,000 as of September 30, 2025, for potential judgments related to legal matters[79] Financing and Capital Structure - The Company issued a total of 128,345 common shares during the six months ended September 30, 2025, raising gross proceeds of $455,095 through the 2025 ATM[40] - The outstanding balance on the term loan facility was $3,591,507 as of September 30, 2025, with the Company anticipating non-compliance with the debt service coverage ratio at the 2026 fiscal year end[38] - The Line of Credit has a credit limit of $6,000,000, with a drawn balance of $5,940,276 as of September 30, 2025, and bears interest at 8.0% plus a margin of 5.25%[34][35] - The Company entered into a term loan offering of up to $2,000,000, with gross proceeds of $1.75 million received as of September 30, 2025[66] Shareholder and Management Compensation - Total compensation for directors, officers, and key management personnel for the six months ended September 30, 2025, was $689,867, a decrease from $1,265,550 for the same period in 2024[61] - The company recorded share-based compensation expense of $269,845 for the six months ended September 30, 2025, a decrease from $697,898 for the same period in 2024[49] Risks and Uncertainties - The company plans to address material uncertainties regarding its ability to continue as a going concern by selling vehicles in inventory and seeking new financing sources[10] - The company has exposure to currency risk, with a net exposure of approximately $450,967 to net income/loss based on a 10% change in the CAD/USD exchange rate[60] - As of September 30, 2025, the company had loans from related parties totaling CAD $3,670,000 that matured on March 31, 2023, but the principal balance remains outstanding[63] Assets and Depreciation - Right of Use Assets increased from $4,124,563 on March 31, 2024, to $5,479,555 on March 31, 2025, reflecting a net addition of $1,354,992[30] - Property and Equipment decreased from $1,310,581 on March 31, 2025, to $984,631 on September 30, 2025, primarily due to depreciation of $304,326 and disposals of $24,961[32] - The company recognized depreciation expense of $416,750 on Right of Use Assets for the six months ended September 30, 2025, compared to $384,648 in the same period of 2024[27] Legal and Compliance Matters - Personal guarantees totaling $5,020,000 were provided by the company's CEO and Chairman to support the operating line of credit[69] - The company issued 29,542 bonus shares and 256,410 bonus warrants to related party lenders, with the loans recorded at a fair value of $1.4 million, resulting in an effective interest rate of approximately 24%[67]