Financial Performance - Total revenue for the year ended December 31, 2022, was $18.475 million, a decrease of 55.7% compared to $41.708 million in 2021[10] - Vehicle sales contributed $13.165 million in 2022, down from $38.197 million in 2021, reflecting a significant decline in sales volume[10] - Gross profit for 2022 was $440 thousand, a decrease of 89.6% from $4.235 million in 2021[10] - Net loss for the year was $17.948 million, compared to a net loss of $7.323 million in 2021, indicating a worsening financial performance[11] - The company incurred total expenses of $18.186 million in 2022, an increase of 63.8% from $11.094 million in 2021[10] - The company reported a loss before tax of $17,746,000 for 2022, compared to a loss of $6,859,000 in 2021[15] Assets and Liabilities - Total assets increased slightly to $55.032 million in 2022 from $53.993 million in 2021[9] - Cash and cash equivalents decreased to $1.622 million at the end of 2022 from $4.402 million at the end of 2021[14] - Trade receivables decreased to $1,076,000 in 2022 from $1,268,000 in 2021[51] - The carrying value of intangible assets decreased to $14,273,000 in 2022 from $22,353,000 in 2021[54] - As of December 31, 2022, the company had cash of $322,000 and accounts receivable of $1,446,000, with accounts payable totaling $2,449,000[110] - The company had working capital of $1,573,000 as of December 31, 2022, and used cash for operating activities of $9,082,000 during the year[112] Shareholder Equity and Financing - Shareholders' equity rose to $36.832 million in 2022, up from $34.245 million in 2021, primarily due to the issuance of common shares[13] - The weighted average number of common shares outstanding increased to 39,650,426 in 2022 from 30,827,688 in 2021, reflecting dilution from share issuances[10] - The company issued 4,444,445 units in a private placement at $2.70 per unit, generating gross proceeds of $12,000,000 during the year ended December 31, 2022[76] - The company had drawn $628,000 from its credit facility as of December 31, 2022, compared to $0 in 2021, indicating increased utilization of available credit[63] - Subsequent to December 31, 2022, the company secured $30 million in credit commitments to fund production of the VMC 1200 class 3 electric trucks, with an interest rate of prime plus 2%[64] - The company secured $30M in credit commitments from Royal Bank of Canada and Export Development Canada for the production of VMC 1200 class 3 electric trucks[126] Inventory and Cost of Sales - Total inventory increased to $10,068,000 in 2022 from $9,416,000 in 2021, with finished goods rising to $8,098,000[52] - The company recognized $14,408,000 as the cost of inventory included as an expense in cost of sales for 2022, down from $31,914,000 in 2021[53] - Finished goods inventory included costs of assembled buses and trucks, as well as freight and other costs incurred directly by the company[52] - The company recognized a net realizable value write-down of $85,000 for buses available for lease during the year ended December 31, 2022, impacting the cost of goods sold[61] Impairment and Warranty - Management assessed impairment of intangible assets related to Optimal Electric Vehicles LLC, concluding no impairment was required as the recoverable amount exceeded the carrying value[19] - The company recorded an impairment loss of $4,640,000 related to the termination of the Sales and Marketing Agreement with Optimal EV[57] - The company performed an impairment assessment and determined that no impairment was required for the intangible asset despite the ongoing arbitration[57] - Warranty expenses recorded for the year ended December 31, 2022, were $499,000, a decrease from $1,598,000 in 2021, indicating improved warranty management[66] Foreign Exchange and Risk - The company reported a foreign exchange loss of $3.253 million in 2022, compared to a loss of $341 thousand in 2021, indicating increased volatility in currency exchange rates[10] - The company is exposed to foreign currency risk, with a net Canadian dollar monetary liability of CAD 9,031,000 and a net US dollar monetary liability of USD 749,000[117] Government Assistance and Grants - The company received a grant of $817,000 from Sustainable Development Technology Canada for the development of electric vehicles[58] - Government assistance is recorded as receivable when the company qualifies, reducing the cost of related assets or expenses[32] Stock-Based Compensation and Warrants - The company recognized $116 in stock-based compensation for stock options in 2022, a decrease from $814 in 2021[86] - The company recorded $569 in stock-based compensation for DSUs in 2022, up from $323 in 2021[95] - The company had 7,573,082 warrants outstanding as of December 31, 2022, with a weighted average exercise price of C$4.53[78] - During the year ended December 31, 2022, the company issued 1,000,000 warrants as part of a debt extension agreement with an exercise price of C$2.25[79]