Financial Performance - For the three months ended June 30, 2024, the net loss was $19,265,435 compared to a net loss of $11,787,585 for the same period in 2023, representing a 63.5% increase in losses[1]. - Basic loss per share for the three months ended June 30, 2024 was $(0.09), compared to $(0.05) for the same period in 2023, indicating an 80% increase in loss per share[1]. - For the six months ended June 30, 2024, the net loss was $40,962,675, compared to $27,371,031 for the same period in 2023, reflecting a 49.8% increase in losses[1]. - The net loss for the three months ended June 30, 2024, was $19,265,435, compared to a net loss of $11,787,585 for the same period in 2023, representing a 63% increase in losses year-over-year[53]. - For the six months ended June 30, 2024, the net loss was $40,962,675, which is a 50% increase compared to the net loss of $27,371,031 for the same period in 2023[53]. Revenue and Sales - Revenue from external customers for the three months ended June 30, 2024 was $30,276,027, a decrease of 47.9% from $58,015,843 in the same period of 2023[28]. - The company’s revenue from the United States for the three months ended June 30, 2024 was $6,818,234, down from $12,046,778 in the same period of 2023, a decrease of 43.5%[28]. - Revenue for the three months ended June 30, 2024, was $30,276,027, a decrease of 48.0% compared to $58,015,843 for the same period in 2023[35]. Expenses and Losses - Operating loss for the three months ended June 30, 2024, was $(31,815,435), an increase of 81.5% from $(17,526,587) in the same period last year[35]. - Gross profit (loss) for the six months ended June 30, 2024, was $(26,357,277), compared to $(1,838,382) for the same period in 2023[35]. - Depreciation and amortization expenses for the three months ended June 30, 2024, were $9,108,162, up from $5,561,359 in the same period of 2023, indicating a 64% increase[53]. - Administrative expenses for Q2 2024 were $140,751, up 49% from $94,401 in Q2 2023[4]. - Selling expenses increased to $318,743 in Q2 2024, compared to $167,430 in Q2 2023, representing a 90% rise[4]. - Cost of sales for Q2 2024 was $2,068,008, a 40% increase from $1,472,189 in Q2 2023[4]. Assets and Liabilities - Total assets decreased to $771,914,900 as of June 30, 2024, from $841,121,318 as of December 31, 2023[48]. - Total liabilities decreased to $460,816,576 as of June 30, 2024, from $482,207,327 as of December 31, 2023[48]. - The current portion of long-term debt increased to $31,886,443 as of June 30, 2024, from $27,056,476 as of December 31, 2023[48]. - Cash as of June 30, 2024, was $2,002,741, a significant decrease from $29,892,966 as of December 31, 2023[41]. - Trade receivables were reported at $37,204,642, down from $40,621,997 as of December 31, 2023[5]. - Long-term debt increased to $279,574,884 from $224,942,365, indicating a rise of approximately 24.3%[5]. Financing and Capital Structure - The company announced a workforce reduction of 30%, impacting approximately 300 employees across Canada and the United States, aimed at improving profitability[9]. - The company received a non-repayable financial contribution of $4,041,619 (C$5,535,805) from Investissement Quebec for future vehicle development project costs[31]. - The company estimates a total borrowing base under the Revolving Credit Agreement of $134,896,502, with $112,200,000 drawn as of June 30, 2024[41]. - The Revolving Credit Agreement was amended to increase the maximum principal amount from $100 million to $200 million, with a maturity extension to August 11, 2025[4]. - The credit agreement with the banking syndicate increased to $112,200,000 from $70,000,000, marking a rise of approximately 60.3%[72]. Shareholder Equity and Stock Options - Total equity as of June 30, 2024, was $311,098,324, down from $433,405,653 as of June 30, 2023, reflecting a decrease of approximately 28%[51]. - The company issued 4,894,060 shares through an "at-the-market" equity program, raising $8,617,953 during the six months ended June 30, 2023[51]. - The total number of stock options outstanding increased to 13,740,922 as of June 30, 2024, with a weighted average exercise price of C$1.58[173]. - The company recognized a compensation expense related to share-based compensation, with an ending balance of $4,688,793 as of June 30, 2024[187]. Cash Flow and Investments - Cash flows used in investing activities for the six months ended June 30, 2024, were $23,424,912, compared to $59,594,853 for the same period in 2023, indicating a decrease of 61%[53]. - The company reported a cash decrease of $2,797,519 for the three months ended June 30, 2024, compared to an increase of $8,180,497 in the same period of 2023[53]. - The acquisition of property, plant, and equipment for the six months ended June 30, 2024, was $8,197,410[200]. Currency and Foreign Exchange - The company recognized a foreign currency translation adjustment loss of $8,133,227 for the three months ended June 30, 2024[51]. Miscellaneous - The company completed a sale-leaseback transaction for its battery manufacturing building for a total sale price of $20,909,566, resulting in a recognized increase to the right-of-use asset[85]. - The company incurred $11,321,352 in additions to intangible assets for the three months ended June 30, 2024, compared to $18,747,189 in the same period of 2023[53].

Core Insights - The Lion Electric Company reported a significant decrease in revenue for Q2 2024, amounting to $30.3 million, down $27.7 million from $58.0 million in Q2 2023, primarily due to a reduction in vehicle sales volume [33][36] - The company experienced a gross loss of $15.2 million in Q2 2024, compared to a gross profit of $0.4 million in the same quarter of the previous year, attributed to increased manufacturing costs and lower sales volume [33][43] - The net loss for Q2 2024 was $19.3 million, an increase from a net loss of $11.8 million in Q2 2023, reflecting higher finance costs and gross losses [33][50] Order Book and Vehicle Deliveries - As of July 30, 2024, the vehicle order book consists of 1,994 all-electric medium- and heavy-duty urban vehicles, with a total order value of approximately $475 million [2][19] - The company delivered 101 vehicles in Q2 2024, a decrease of 98 vehicles compared to 199 delivered in Q2 2023, impacted by delays in governmental subsidies and production challenges [33][36] - The order book includes 394 charging stations with a total order value of approximately $9 million, indicating ongoing expansion in charging infrastructure [2][19] Financial Performance - For the six months ended June 30, 2024, the company reported a gross loss of $26.4 million, an increase from a gross loss of $1.8 million in the same period of 2023, driven by higher manufacturing costs [6][50] - Administrative expenses decreased to $22.1 million for the six months ended June 30, 2024, down from $25.5 million in the prior year, reflecting cost reduction initiatives [44] - Finance costs surged to $12.3 million in Q2 2024, up from $2.0 million in Q2 2023, primarily due to higher interest expenses on long-term debt [8][50] Operational Updates - The company has 12 experience centers operational in the U.S. and Canada, enhancing customer engagement and product visibility [2] - The commercial launch of the Lion8 Tractor truck occurred at the ACT conference in May 2024, marking a significant product introduction [2] - The company is focused on streamlining operations and aligning its cost structure with current demand through an action plan announced on July 31, 2024 [34]

Core Viewpoint - Lion Electric is a leading manufacturer of zero-emission vehicles, focusing on all-electric commercial urban trucks and school buses, and aims to improve society and the environment through electric vehicle adoption [1][4]. Company Overview - Lion Electric designs, manufactures, and assembles various components of its vehicles, including chassis, battery packs, truck cabins, and bus bodies, establishing itself as a North American leader in electric transportation [1]. - The company is publicly traded on both the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV [4]. Upcoming Financial Results - Lion Electric will release its second quarter 2024 results on July 31, 2024, before market opening, followed by a conference call and webcast at 8:30 a.m. Eastern Time on the same day to discuss the results [3]. - Participation in the conference call can be done via phone or through a live webcast available on the company's website [5].

Core Viewpoint - The Lion Electric Company has amended its senior credit instruments to enhance liquidity and financial flexibility during a covenant relief period until September 30, 2024, while maintaining certain financial obligations and reporting requirements [1][2][7]. Group 1: Revolving Credit Agreement Amendments - The amendments to the revolving credit agreement suspend financial covenants, including the tangible net worth test and fixed charge coverage ratio, until September 30, 2024 [1]. - The company must maintain a minimum available liquidity of C$15,000,000 during the covenant relief period [1]. - Enhanced reporting obligations and limitations on the use of advances under the revolving credit facility are introduced until the available amount equals or exceeds 50% of total borrowing capacity for 30 consecutive days [1]. - Certain previous requirements, such as the availability block and interest reserve account funding, are no longer applicable [1]. - The pricing grid will see increases, and interest payments under the revolving credit facility will be deferred during the covenant relief period [1]. Group 2: Loan Agreement Amendments - The loan agreement with Finalta Capital Fund and Caisse de dépôt et placement du Quebec has been amended to align the minimum liquidity requirement with that of the revolving credit agreement [2]. - The interest rate on the loan agreement has been increased to 13%, with 50% of the interest payable capitalized during the covenant relief period [2]. - Other material terms of the loan agreement, including the maturity date of November 6, 2024, remain unchanged [2]. Group 3: Financial Position and Opportunities - The company is actively evaluating opportunities to improve liquidity and strengthen its financial position, which may include refinancing initiatives related to its debt instruments [3]. Group 4: Company Overview - Lion Electric is a manufacturer of zero-emission vehicles, focusing on all-electric commercial urban trucks and school buses, and is a leader in North American electric transportation [4][11]. - The company designs and assembles many components of its vehicles, including chassis and battery packs [4]. Group 5: New Financing Agreement - The company has entered into a new ESSOR loan agreement for C$5,000,000, which may be drawn up to C$7,500,000 under certain conditions, with a fixed interest rate of 13% and a 12-month moratorium on principal and interest payments [7][8]. Group 6: Non-Convertible Debentures - Amendments to the non-convertible debentures issued in July 2023 include the capitalization of 50% of the interest payable during the covenant relief period [9].

Industry Overview - The EV industry has experienced slowed growth due to rising inflation, financial costs, and increased consumer skepticism, which have reduced demand and slowed sales growth [1] - Despite challenges, the EV industry continues to grow, with US EV sales increasing by 47% [9] Company Insights Lion Electric Company (LEV) - Lion Electric Company reported a loss of over $56.5 million in Q4 2023 and $103.8 million overall due to heavy losses outweighing revenue [3] - The company is restructuring its value chain, laying off over 150 employees and planning to lay off 120 more [3] - Lion Electric secured a $50 million government loan to establish a battery factory and has ramped up production from 519 vehicles in 2022 to 852 in 2023 [4][12] - A recent $38 million deal to supply over 97 school buses will significantly boost annual unit outputs [12] Polestar (PSNYW) - Polestar has seen a 6% increase in total vehicle production in 2023, reaching 54,600 units, although this is less than half of the projected output before the merger [5] - The company is adopting a "non-genuine" sales model, allowing dealers to set prices, which may enhance stock value [6] - Polestar's stock price has lost almost 90% of its value since going public and merging with a SPAC in 2022, and it faces ongoing supply chain constraints [14] - The EU and China tariff battles may provide Polestar with a strategic advantage to ramp up production in the European market [15] LiveWire Group (LVWR) - LiveWire Group, known as the "Tesla of Motorcycles," reported a consolidated net loss of $109.6 million in Q4 2023, but indicators suggest greater expansion prospects [18]

Core Viewpoint - Lion Electric has successfully achieved final certification for its LionBattery HD battery pack, enhancing its position in the electric vehicle market [1][6]. Group 1: Product Development - The LionBattery HD is a lithium-ion battery pack specifically designed for heavy-duty trucks, complementing the previously certified LionBattery MD pack for medium-duty vehicles [1][6]. - The LionBattery HD pack has a capacity of 105 kWh and will power the Lion8 Tractor, an all-electric Class 8 commercial truck [7]. Group 2: Manufacturing Capacity - Lion Electric's state-of-the-art battery production facility has an annual manufacturing capacity of 1.7 gigawatt hours, sufficient to power 5,000 commercial vehicles each year [2]. Group 3: Company Overview - Lion Electric is a leading manufacturer of zero-emission vehicles, focusing on all-electric class 5 to class 8 commercial urban trucks and school buses [3]. - The company designs, builds, and assembles many components of its vehicles, including chassis, battery packs, truck cabins, and bus bodies, reinforcing its leadership in North America's electric transportation sector [3][8].

Core Viewpoint - A class action lawsuit has been filed against Northern Genesis Acquisition Corp., now known as The Lion Electric Company, for alleged violations of the Securities Exchange Act of 1934 related to its 2021 merger with The Lion Electric Company [3]. Group 1 - The lawsuit seeks damages for stockholders who were harmed by the alleged misconduct of Northern Genesis Acquisition Corp. and its board of directors [3]. - The claims are directed against Northern Genesis Acquisition Corp., its directors and officers, The Lion Electric Company, and certain directors and officers of The Lion Electric [3]. - The deadline to seek appointment as lead plaintiff in the class action is June 10, 2024 [1]. Group 2 - Monteverde & Associates PC is a law firm specializing in class action securities and consumer litigation, with a focus on protecting shareholders from corporate wrongdoing [5]. - The firm has a track record of recovering millions of dollars for investors and has significant experience in litigating mergers and acquisitions [5].

Core Viewpoint - A class action lawsuit has been filed against Northern Genesis Acquisition Corp. and its board for alleged violations related to the 2021 merger with The Lion Electric Company, claiming misleading information was provided to shareholders [1][2]. Group 1: Lawsuit Details - The lawsuit is filed in the United States District Court for the Southern District of New York, case no. 1:24-cv-02155, on behalf of former shareholders of Northern Genesis Acquisition Corp. [1] - The complaint alleges that the Proxy Statement filed on March 24, 2021, contained materially misleading and incomplete information, violating Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act [2]. - The merger between Northern Genesis Acquisition Corp. and The Lion Electric Company was completed on May 6, 2021 [2]. Group 2: Legal Representation - Mr. Juan Monteverde is available to discuss the case and potential lead plaintiff appointments must be made by June 10, 2024 [3]. - Members of the putative class can either seek to serve as lead plaintiff through their counsel or remain absent from the class [3]. Group 3: Law Firm Background - Monteverde & Associates PC is a national class action securities and consumer litigation law firm that has recovered millions for shareholders and consumers [4]. - The firm specializes in litigating Mergers & Acquisitions and Securities Class Actions, aiming to protect investors from corporate misconduct [4]. - Mr. Monteverde has been recognized as a Rising Star in Securities Litigation by Super Lawyers and has received accolades from Martindale-Hubbell as a Top Rated Lawyer [4].

Core Viewpoint - The Lion Electric Company has introduced the Lion8 Tractor, an all-electric Class 8 commercial truck, at the ACT Expo, emphasizing its commitment to advancing electric vehicle technology in freight transportation [1][2]. Product Features - The Lion8 Tractor boasts the highest gross combination weight rating (GCWR) in the EV truck sector, reaching up to 127,000 lbs [3][10]. - It features a battery capacity of up to 630 kWh, providing a driving range of up to 275 miles (440 kilometers) and can charge to 80% state of charge (SOC) in approximately 1.5 hours [4][10]. - The vehicle is designed with a 6x4 axle configuration and two integrated 2-speed eAxles for optimized power distribution and efficiency [5]. - It includes advanced features such as a high-energy-density 750V battery system, Vehicle-to-Grid (V2G) compatibility, Advanced Driver Assistance Systems (ADAS), and an onboard weighing system [6]. Company Background - Lion Electric has over 15 years of experience in developing all-electric medium and heavy-duty vehicles and aims to lead the transition to zero-emission transportation [7]. - The company has more than 2,000 vehicles on the road, accumulating over 25 million miles (over 40 million kilometers) driven [7]. Customer Support - Fleet customers considering the Lion8 Tractor have access to a dedicated Customer Success team, which provides support in areas such as charging infrastructure, financing, and training [8].

Core Points - The Lion Electric Company held its annual meeting of shareholders, with 124,783,928 common shares represented, accounting for approximately 55.16% of all issued and outstanding shares [1] - Shareholders voted in favor of all items of business presented at the meeting [1] Election of Directors - The Board of Directors fixed the number of directors to be elected at ten, all of whom were re-elected [2] - Voting results showed high approval rates for each nominee, with the highest being Michel Ringuet at 99.40% and the lowest being Pierre-Olivier Perras at 95.62% [3] Appointment of Independent Auditors - Raymond Chabot Grant Thornton LLP was appointed as independent auditors with 98.98% of votes in favor [4] - The directors were authorized to fix the remuneration of the auditors [4] Renewal of the Company's Omnibus Plan - The renewal of the Company's Omnibus Plan was approved with 94.59% of votes in favor [5] Company Overview - Lion Electric is a manufacturer of zero-emission vehicles, focusing on all-electric commercial urban trucks and school buses [6] - The company is a leader in electric transportation in North America, designing and manufacturing many vehicle components [6][7] - Lion Electric aims to improve society and the environment through the transition to all-electric vehicles [7][8]