Electrovaya(ELVA) - 2025 Q2 - Quarterly Report

Unaudited Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statements of Financial Position As of March 31, 2025, total assets increased to $45.4 million from $39.5 million, while total liabilities decreased to $24.3 million, resulting in total equity more than doubling to $21.1 million Consolidated Statement of Financial Position (in thousands of U.S. dollars) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | 35,302 | 29,418 | | Trade and other receivables | 18,073 | 11,292 | | Inventories | 7,980 | 9,698 | | Total Assets | 45,423 | 39,482 | | Total Current Liabilities | 9,068 | 28,531 | | Working capital facilities | - | 16,283 | | Total Liabilities | 24,293 | 30,897 | | Long term loan | 13,087 | - | | Total Equity | 21,130 | 8,585 | Condensed Interim Consolidated Statements of Earnings Net income reached $408 thousand for the six months ended March 31, 2025, a significant turnaround from a prior-year loss, supported by increased revenue Statement of Earnings Highlights (in thousands of U.S. dollars) | Metric | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | 26,187 | 22,786 | | Gross Margin | 8,081 | 7,254 | | Income from operations | 1,206 | 603 | | Net income (loss) for the period | 408 | (1,047) | | Basic income (loss) per share | 0.01 | (0.03) | Quarterly Performance (in thousands of U.S. dollars) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Revenue | 15,018 | 10,695 | | Gross Margin | 4,673 | 3,725 | | Net income (loss) for the period | 828 | (839) | Condensed Interim Consolidated Statements of Comprehensive income (Loss) Total comprehensive income improved to $218 thousand for the six months ended March 31, 2025, a significant turnaround from a prior-year loss, primarily due to positive net income Comprehensive Income (Loss) Summary (in thousands of U.S. dollars) | Description | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net income (loss) for the period | 408 | (1,047) | | Cumulative translation adjustment | (190) | (54) | | Other comprehensive income (loss) for the period | 218 | (1,101) | Condensed Interim Consolidated Statements of Changes in Equity Total equity significantly increased to $21.1 million by March 31, 2025, primarily driven by $11.6 million from share issuance and net income - The primary drivers for the increase in total equity were the issuance of shares for $11.6 million and a net income of $408 thousand[5] Changes in Equity (in thousands of U.S. dollars) | Description | Six Months Ended Mar 31, 2025 | | :--- | :--- | | Balance – October 01, 2024 | 8,585 | | Issuance of shares | 11,624 | | Stock-based compensation | 703 | | Net income for the period | 408 | | Cumulative translation adjustment | (190) | | Balance – March 31, 2025 | 21,130 | Condensed Interim Consolidated Statement of Cash Flows Net cash outflow was $443 thousand for the six months ended March 31, 2025, primarily due to operating activities, partially offset by $5.2 million from financing Cash Flow Summary (in thousands of U.S. dollars) | Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash from (used in) operating activities | (4,752) | 322 | | Cash from (used in) investing activities | (889) | (395) | | Cash from (used in) financing activities | 5,198 | 86 | | Increase (decrease) in cash and cash equivalents | (443) | 13 | | Cash and cash equivalents at end of period | 283 | 1,116 | - Financing activities included a significant issuance of shares for $11.6 million, proceeds from new working capital facilities of $29.5 million, and substantial repayments of old facilities and loans totaling over $34 million[7] Notes to Unaudited Condensed Interim Consolidated Financial Statements Note 1: Reporting Entity Electrovaya Inc., a Canadian company, specializes in designing, developing, and manufacturing Lithium-Ion batteries for energy storage and electric transportation - The company is domiciled in Ontario, Canada, and its primary business is the design, development, and manufacturing of Lithium-Ion batteries and battery systems[10][11][12] Note 2: Basis of Presentation Financial statements are prepared under IAS 34 on a going concern basis, showing a net profit of $408 thousand and positive working capital of $26.2 million - The financial statements comply with International Accounting Standard 34, "Interim Financial Reporting"[13] Key Financial Health Indicators (in thousands of U.S. dollars) | Metric | As of/For Six Months Ended Mar 31, 2025 | As of/For Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Cash used in operations | (4,752) | 322 (provided) | | Working Capital | 26,234 | 887 (as of Sep 30, 2024) | | Net Profit/(Loss) | 408 | (1,047) | Note 4: Trade and Other Receivables Net trade and other receivables increased to $18.1 million by March 31, 2025, with 84.9% being current and minimal amounts over 90 days past due Trade and Other Receivables (in thousands of U.S. dollars) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Net trade receivables | 16,935 | 10,513 | | Other receivables | 1,138 | 779 | | Total | 18,073 | 11,292 | - As of March 31, 2025, 84.90% of trade receivables were current and only 0.71% were over 90 days past due[24] Note 5: Inventories Total inventories decreased to $8.0 million by March 31, 2025, primarily due to reduced raw materials, with a $212 thousand provision for obsolete stock Inventory Breakdown (in thousands of U.S. dollars) | Category | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Raw materials | 7,025 | 8,433 | | Finished goods | 942 | 941 | | Total | 7,980 | 9,698 | - A provision for slow-moving and obsolete inventories of $212 thousand was included in direct manufacturing costs for the period ended March 31, 2025[29] Note 9: Working Capital Facilities and Promissory Notes The company secured a new $20 million working capital facility and a $51 million loan approval, while fully repaying all promissory notes by December 2024 - In March 2025, the company entered a new three-year credit agreement with Bank of Montreal for up to $20 million, plus a $5 million accordion, used to pay off the outstanding balance with Cortland[39] - The company received a loan approval for $51 million from the Export-Import Bank of the United States for the Jamestown facility, with no funds drawn as of March 31, 2025[40] - The promissory note balance of $519 thousand as of September 30, 2024 was fully repaid by December 2024[41] Note 13: Share Capital, Stock Options, and Warrants Share capital increased to $128.1 million due to a $11.6 million equity raise, with 4.84 million stock options and 1.42 million warrants outstanding - In December 2024, the company raised $11.8 million in equity by issuing 5,175,000 common shares at $2.15 per share and an additional 776,250 shares through an over-allotment option[51][58] Outstanding Options and Warrants | Instrument | Number Outstanding (as of Mar 31, 2025) | Weighted Avg. Exercise Price | | :--- | :--- | :--- | | Stock Options | 4,842,789 | $2.37 | | Share Warrants | 1,420,000 | $0.63 | Note 14: Related Party Transactions Key management compensation decreased to $684 thousand, and special performance-based stock options were granted to executives, alongside a facility usage agreement with a related entity Key Management Compensation (in thousands of U.S. dollars) | Category | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Salaries, bonus and other benefits | 431 | 432 | | Share based compensation | 253 | 486 | | Total | 684 | 918 | - The company has a facility usage agreement with a research firm acquired by an investor group controlled by the family of the CEO and Chairman, with monthly payments of Cdn $25,265[67][68] - Special stock options were granted to Dr. Sankar Das Gupta (700,000 options) and Dr. Rajshekar Das Gupta (1,500,000 options in total) which vest upon reaching specific market capitalization targets[71][73][74] Note 16: Financial Instruments and Risk Management The company faces credit, liquidity, and market risks, with significant customer concentration, and manages liquidity through cash flow and a new revolving credit facility - The company faces significant customer concentration risk, with one customer accounting for 61% of revenue and 49% of accounts receivable as of March 31, 2025[87] - Liquidity risk is managed through operating cash flow and a revolving credit facility, with contractual maturities of financial liabilities totaling $26.3 million[88][89] - Derivative warrant liabilities are measured at fair value using the Black-Scholes model and classified as Level 2, valued at $113 thousand as of March 31, 2025[78] Note 17: Contingencies The company is disputing two contingencies: a CRA SRED reassessment of $601 thousand and a Cdn $830 thousand claim from the Province of Ontario - The company is appealing a CRA notice regarding 2014 and 2015 SRED reassessments totaling approximately $601 thousand plus interest, believing the amounts may be reversed or reduced[95] - The Province of Ontario has a claim against the company for Cdn $830 thousand, which the company is disputing with no further provincial action taken[96] Note 18: Segment and Customer Reporting Operating as a single segment, the company's revenue of $26.2 million is primarily from large format batteries, with 98% of revenue generated in the United States - The company operates in a single reportable segment[98] Revenue by Product Type (Six Months Ended, in thousands of U.S. dollars) | Product Type | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Large format batteries | 25,460 | 22,341 | | Other | 727 | 445 | | Total | 26,187 | 22,786 | Revenue by Geography (Six Months Ended, in thousands of U.S. dollars) | Region | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | United States | 25,738 | 21,621 | | Canada | 348 | 1,120 | | Others | 101 | 45 | | Total | 26,187 | 22,786 |