Financial Performance - For the three months ended September 30, 2024, sales were reported at $0, compared to $100,024 for the same period in 2023, indicating a decline of 100%[12] - The net loss for the three months ended September 30, 2024, was $1,234,986, a decrease from the net loss of $5,988,423 in the same period of 2023, showing an improvement of approximately 79.3%[12] - For the nine months ended September 30, 2024, the company reported a net loss of $6,522,441 compared to a net loss of $9,510,360 for the same period in 2023, indicating a 31.3% improvement in losses[16] - The company reported a gross profit of $(133,931) for the three months ended September 30, 2024, compared to a gross profit of $19,741 for the same period in 2023, indicating a decline in profitability[12] - For the nine months ended September 30, 2024, sales revenue was $1,623,260, down from $2,756,103 in the same period of 2023[103] - The net loss for the nine months ended September 30, 2024 was $6,644,237, compared to a net loss of $9,510,360 for the same period in 2023[103] Assets and Liabilities - As of September 30, 2024, total assets increased to $22,833,284 from $22,653,169 as of December 31, 2023, reflecting a growth of approximately 0.79%[8] - Total current liabilities increased to $3,571,519 from $1,773,546, reflecting a rise of 101.5%[9] - The accumulated deficit grew to $(71,134,940) from $(64,612,499), indicating an increase of approximately 10.5%[10] - Total stockholders' equity decreased to $18,953,034 from $20,633,578, a decline of about 8.1%[10] - The total stockholders' equity as of September 30, 2024, was $18,953,034, compared to $23,782,004 as of September 30, 2023, reflecting a decrease of 20.5%[14] Cash Flow and Financing Activities - The company experienced a net cash used in operating activities of $2,848,876 for the nine months ended September 30, 2024, an improvement from $4,039,576 in the same period of 2023[16] - The company issued common stock for cash totaling $1,799,248 during the nine months ended September 30, 2024, contributing to its financing activities[16] - Net cash provided by financing activities during the nine months ended September 30, 2024 was $3,303,840, primarily due to proceeds from the issuance of common stock of $1,799,248[132] Inventory and Receivables - Accounts receivable increased to $1,090,399 from $692,102, marking a growth of 57.6%[8] - The Company had finished goods inventory on hand of $6,715,650 as of September 30, 2024, with a recorded inventory valuation allowance of $12,429, leading to a net inventory balance of $6,703,221[30] - The company had accounts receivable, net of $1,090,399 as of September 30, 2024, up from $692,102 at the end of 2023, indicating a 57.5% increase[25] Operating Expenses - Operating expenses for the nine months ended September 30, 2024, were $6,264,270, down from $10,561,010 in the same period of 2023, representing a reduction of approximately 40.0%[12] - General and Administrative expenses for the three months ended September 30, 2024 were $1,395,921, a decrease from $2,578,727 in the same period of 2023[122] - Research and Development expenses for the three months ended September 30, 2024 were $20,470, down from $46,734 in the same period of 2023[125] Investments and Acquisitions - The Company is acquiring Maddox Industries for 3,100,000 shares of common stock and up to $1 million in earnout payments based on revenue from existing customers[99] - The Company entered into a Sale and Purchase Agreement with PlugD for the delivery of 200 electric high roof vans and trucks for a total of approximately $16.2 million over the next 13 months[81] Market Risks and Future Plans - The company is exposed to market risks related to the costs of raw materials, primarily batteries, as it goes into production[147] - The company plans to continue investing in growth, particularly in research and development for zero-emission electric vehicles and expanding its sales and marketing efforts[108]
Envirotech Vehicles(EVTV) - 2024 Q3 - Quarterly Report