Financial Performance - For the three months ended June 30, 2024, sales were $812,770, a decrease from $2,132,880 in the same period of 2023, representing a decline of approximately 62%[13] - Gross profit for the three months ended June 30, 2024, was $203,823, compared to $878,994 for the same period in 2023, indicating a decrease of about 77%[13] - The net loss for the three months ended June 30, 2024, was $755,092, compared to a net loss of $1,254,029 for the same period in 2023, showing an improvement of approximately 40%[13] - Operating expenses for the three months ended June 30, 2024, totaled $1,528,364, a decrease from $2,145,503 in the same period of 2023, reflecting a reduction of about 29%[13] - The accumulated deficit grew to $(69,899,954) from $(64,612,499), marking an increase of approximately 8.5%[10] - As of June 30, 2024, the company reported a net loss of $5,287,455, compared to a net loss of $3,521,937 for the same period in 2023, indicating a year-over-year increase in losses of approximately 50%[19] Assets and Liabilities - As of June 30, 2024, total assets decreased to $22,508,729 from $22,653,169 as of December 31, 2023, reflecting a decline of approximately 0.64%[8] - Current liabilities surged to $4,281,086, compared to $1,773,546 at the end of 2023, indicating an increase of approximately 141.5%[9] - Total liabilities as of June 30, 2024, were $4,359,930, significantly up from $2,019,591 at the end of 2023, primarily due to increased current liabilities[9] - Total stockholders' equity decreased to $18,148,799 from $20,633,578, a decline of approximately 12.0%[10] - The company had cash, restricted cash, and cash equivalents of $437,064 at the end of June 30, 2024, down from $833,282 at the end of June 30, 2023[19] Accounts Receivable and Inventory - Accounts receivable increased significantly to $1,426,100, up from $692,102, representing a growth of approximately 105.4%[8] - The Company had trade accounts receivable of $1,450,360 as of June 30, 2024, with a net balance of $1,426,100 after an allowance for doubtful accounts of $24,260[30] - Finished goods inventory on hand was $6,715,650 as of June 30, 2024, with a recorded inventory valuation allowance of $12,429[31] - Inventory, net, slightly decreased to $6,703,221 from $6,830,593, a reduction of approximately 1.9%[8] - The company had inventory deposits of $2,857,314 as of June 30, 2024, down from $3,300,388 as of December 31, 2023[32] Research and Development - Research and development expenses increased to $61,616 for the three months ended June 30, 2024, compared to $57,924 for the same period in 2023, marking an increase of approximately 4%[13] - The company recorded research and development costs of $61,616 and $131,880 for the three and six months ended June 30, 2024, respectively, compared to $57,924 and $128,812 for the same periods in 2023, indicating an increase in R&D spending[38] Stock and Compensation - The company reported a weighted average of 15,631,359 shares used in the computation of net loss per share for the three months ended June 30, 2024, compared to 15,021,088 shares for the same period in 2023[13] - The Company recorded stock compensation expense of $8,122 and $58,671 for the three and six months ended June 30, 2024, related to restricted shares awarded to a vendor[58] - The intrinsic value of the outstanding stock options as of June 30, 2024, was $351,400[56] - The company has a total of 5,644,030 outstanding stock options, with an average exercise price of $2.59[54] Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2024, was $1,700,563, an improvement from $3,073,334 used in the same period of 2023[19] - The company issued common stock for cash totaling $949,248 during the six months ended June 30, 2024[19] - The Company entered into a convertible promissory note agreement for $1,000,000 on January 18, 2024, with a maturity date of September 30, 2024[47] Legal and Regulatory Matters - The company is involved in ongoing litigation with GreenPower Motor Company, asserting meritorious defenses against claims made[65] - The Company received an award from the U.S. EPA for up to $8,570,000 to produce electric school buses, with the project running from September 1, 2024, to August 31, 2026[76] Operational Developments - The company is focused on generating demand for its zero-emission commercial fleet vehicles to drive revenue growth[6] - Strategic acquisitions and effective scaling of production processes are critical for the company's future success and profitability[6] - The Company has a Sale and Purchase Agreement with PlugD to deliver 200 electric high roof vans and trucks for approximately $16.2 million over the next 13 months[63] - The Company intends to use the leased warehouse space as a production facility to expand its business presence in the region and the United States[70]
Envirotech Vehicles(EVTV) - 2024 Q2 - Quarterly Report