Envirotech Vehicles(US:EVTV)2019-05-03 21:01Financial Performance - Net loss for the three months ended March 31, 2019, was $1,449,000 compared to a net loss of $4,077,000 for the same period in 2018, representing a 64.5% improvement[20] - Sales for the three months ended March 31, 2019, were $464,000, while the cost of sales was $479,000, resulting in a gross loss of $15,000[20] - Operating expenses totaled $4,120,000 for the three months ended March 31, 2019, compared to $4,135,000 for the same period in 2018, indicating a slight decrease[20] - The company reported a net cash used in operating activities of $794,000 for the three months ended March 31, 2019, compared to $1,974,000 for the same period in 2018, a reduction of approximately 59.8%[27] - Stock-based compensation expense for the three months ended March 31, 2019, was $253,000, down from $2,964,000 for the same period in 2018, a decrease of approximately 91.5%[27] - Research and development costs for the three months ended March 31, 2019, were $45,000, a decrease of approximately 71.2% compared to $155,933 for the same period in 2018[47] Assets and Liabilities - Total current assets decreased from $10,180,000 as of December 31, 2018, to $9,595,000 as of March 31, 2019, a decline of approximately 5.73%[16] - The company had total liabilities of $3,801,000 as of March 31, 2019, up from $3,229,000 as of December 31, 2018, reflecting an increase of approximately 17.7%[16] - Cash and cash equivalents decreased from $3,759,000 at the beginning of the period to $2,385,000 at the end of the period, a decline of approximately 36.5%[27] - The company reported trade accounts receivable of $382,732 as of March 31, 2019, down from $996,621 as of December 31, 2018, indicating a significant decrease of approximately 62.7%[41] - Inventory deposits amounted to $872,661 as of March 31, 2019, slightly down from $882,050 as of December 31, 2018[42] - The net property and equipment value was $145,019 as of March 31, 2019, down from $150,091 as of December 31, 2018, reflecting a decrease of about 3.4%[51] Financing and Capital Structure - The company secured a line of credit with a principal amount outstanding of approximately $2.5 million as of March 31, 2019, with undrawn borrowing availability of $4.5 million[55] - The company completed a follow-on offering of 3,666,667 units, raising approximately $11.0 million in gross proceeds, with net proceeds of about $9.8 million after expenses[57] - As of March 31, 2019, the company had issued warrants to purchase a total of 7,556,323 shares of common stock, with a weighted average exercise price of $4.45 and a remaining contractual life of 3.5 years[60] - The company's outstanding options had an intrinsic value of approximately $6.9 million as of March 31, 2019, excluding certain suspended options[66] - The company has future minimum payments under contractual commitments totaling approximately $1,140,209 as of March 31, 2019[72] Accounting and Compliance - The company does not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis[35] - The company has implemented new accounting guidance effective in 2019, which has minimal impact on its financial statements[48] Other Considerations - A hypothetical 10% adverse movement in 30-day LIBOR would increase the company's annual interest expense by approximately $250,000[131] - The company engaged a consultant for sales and marketing expertise, agreeing to pay $7,500 per month, which includes $5,000 in common stock[59] - The company anticipates that its international selling, marketing, and administrative costs related to foreign sales will largely be denominated in the same foreign currency, potentially mitigating foreign currency exchange risk exposure[133]