
Unaudited Consolidated Condensed Interim Statements of Financial Position As of June 30, 2025, GreenPower Motor Company Inc.'s financial position shows a decrease in total assets and cash balance, an increase in total liabilities and accumulated deficit, leading to an expanded shareholder's equity deficit Financial Position Overview (As of June 30, 2025 and March 31, 2025) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------- | :------------- | | Assets | | | | Cash | $248,184 | $344,244 | | Total Current Assets | $26,522,896 | $27,775,068 | | Total Assets | $33,334,460 | $35,071,725 | | Liabilities | | | | Total Current Liabilities | $20,567,637 | $19,668,259 | | Total Liabilities | $38,511,694 | $36,677,691 | | Equity / (Deficit) | | | | Accumulated Deficit | $(101,551,496) | $(97,423,507) | | Total Equity / (Deficit) | $(5,177,234) | $(1,605,966) | Unaudited Consolidated Condensed Interim Statements of Operations and Comprehensive Loss For the three months ended June 30, 2025, GreenPower's revenue significantly decreased year-over-year, but reduced selling, general, and administrative costs led to a period loss reduction from $5.39 million to $4.16 million Operations and Comprehensive Loss Overview (For the Three Months Ended June 30, 2025) | Metric | June 30, 2025 | June 30, 2024 | Change (YoY) | | :----------------------------------- | :------------- | :------------- | :------------- | | Revenue | $1,549,467 | $2,997,058 | -48.3% | | Cost of Sales | $1,187,785 | $2,775,194 | -57.2% | | Gross Profit | $361,682 | $221,864 | +63.0% | | Total Selling, General and Administrative Costs | $3,946,659 | $5,126,932 | -23.0% | | Loss for the Period | $(4,163,851) | $(5,388,648) | -22.7% | | Loss per Common Share, Basic and Diluted | $(0.14) | $(0.21) | -33.3% | Unaudited Consolidated Condensed Interim Statements of Changes in Equity / (Deficit) As of June 30, 2025, the company's equity/deficit expanded from a $1.61 million deficit on March 31, 2025, to a $5.18 million deficit, primarily due to a $4.16 million net loss for the period, partially offset by proceeds from issued shares and warrants Equity / (Deficit) Changes Overview (For the Three Months Ended June 30, 2025) | Metric | Balance as of March 31, 2025 | Change | Balance as of June 30, 2025 | | :------------------- | :----------------- | :----- | :----------------- | | Share Capital | $80,538,262 | $163,770 | $80,702,032 | | Reserves | $15,239,622 | $348,282 | $15,587,904 | | Accumulated Other Comprehensive Loss | $39,657 | $44,669 | $84,326 | | Accumulated Deficit | $(97,423,507) | $(4,127,989) | $(101,551,496) | | Total Equity / (Deficit) | $(1,605,966) | $(3,571,268) | $(5,177,234) | | Key Changes: | | | | | Shares Issued | | $197,964 | | | Warrants Issued | | $200,000 | | | Net Loss for the Period | | $(4,163,851) | | Unaudited Consolidated Condensed Interim Statements of Cash Flows For the three months ended June 30, 2025, the company's net cash decrease was $96,060, a significant improvement from the $622,610 net cash decrease in the prior year, primarily due to reduced cash outflows from operating activities Cash Flow Overview (For the Three Months Ended June 30, 2025) | Cash Flow Category | June 30, 2025 | June 30, 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :------------- | | Cash Outflow from Operating Activities | $(1,406,642) | $(3,211,888) | -56.2% | | Cash Outflow from Investing Activities | $0 | $(45,892) | -100.0% | | Cash Inflow from Financing Activities | $1,278,051 | $2,637,448 | -51.5% | | Net Cash (Decrease) Increase | $(96,060) | $(622,610) | -84.5% | | Cash Balance at End of Period | $248,184 | $528,281 | -53.0% | Notes to the Unaudited Consolidated Condensed Interim Financial Statements This section provides detailed notes to GreenPower Motor Company Inc.'s consolidated condensed interim financial statements as of June 30, 2025, covering the company's nature of operations, accounting policies, asset and liability composition and changes, financial instrument risks, related party transactions, segment information, contingent liabilities, and subsequent events Note 1. Nature and Continuance of Operations and Going Concern This note details GreenPower's business as an electric vehicle manufacturer and highlights significant uncertainties regarding its ability to continue as a going concern - GreenPower Motor Company Inc. designs, manufactures, and distributes all-electric, zero-emission medium and heavy-duty vehicles for cargo, delivery, shuttle, public transit, and school bus sectors7 - As of June 30, 2025, the company reported a cash balance of $248,184, working capital of $5,955,259, an accumulated deficit of ($101,551,496), and a shareholder's equity deficit of ($5,177,234)9 - The company's ability to continue as a going concern depends on its capacity to raise capital and generate cash flow, presenting significant uncertainties and substantial doubt about its going concern status9 Note 2. Material Accounting Policies This note outlines the significant accounting policies adopted by GreenPower, including the basis of financial statement preparation and specific treatments for financial instruments - The consolidated condensed interim financial statements are prepared in accordance with IAS 34, "Interim Financial Reporting," issued by the IASB, and follow the same accounting policies and methods of computation as the annual audited financial statements as of March 31, 2025811 - For loans with attached bonus warrants or shares, the loan component is initially recognized as a financial liability at fair value, with the remaining consideration allocated to the residual equity components (warrant reserve or share capital/share-based payment reserve)14151617 - Management exercises significant judgment in determining the fair value of the host debt, selecting warrant valuation models and key assumptions, and classifying warrants and bonus shares as equity18 Note 3. Cash This note provides a summary of the company's cash balances at the end of the reporting periods, indicating no cash equivalents Cash Balances | Date | Cash Balance | | :----------- | :--------- | | June 30, 2025 | $248,184 | | March 31, 2025 | $344,244 | - As of June 30, 2025, and March 31, 2025, the company had no cash equivalents19 Note 4. Accounts Receivable This note details the composition of accounts receivable, including allowances for doubtful accounts and overdue balances Accounts Receivable and Allowances | Metric | June 30, 2025 | March 31, 2025 | | :--------------------- | :------------- | :------------- | | Allowance for Accounts Receivable | $570,619 | $563,152 | | Accounts Receivable Overdue by More Than 120 Days | $580,495 | $575,592 | | Provision for Overdue Accounts | $560,694 | $559,312 | Note 5. Finance Lease Receivables This note provides details on the company's finance lease receivables, distinguishing between current and long-term portions - As of June 30, 2025, the company had 3 vehicles classified as finance leases and 2 vehicles classified as operating leases21 Finance Lease Receivables Details (As of June 30, 2025) | Item | Amount | | :----------------------- | :--------- | | Total Finance Lease Receivables | $126,947 | | Current Portion of Finance Lease Receivables | $62,862 | | Long-Term Portion of Finance Lease Receivables | $64,085 | Note 6. Inventory This note outlines the composition of inventory, including parts, work-in-progress, and finished goods, and the amount recognized as cost of sales Inventory Composition (As of June 30, 2025 and March 31, 2025) | Inventory Category | June 30, 2025 | March 31, 2025 | | :--------- | :------------- | :------------- | | Parts | $4,196,664 | $4,208,596 | | Work-in-Process | $10,895,823 | $11,282,556 | | Finished Goods | $9,888,317 | $10,110,736 | | Total | $24,980,804 | $25,601,888 | - For the three months ended June 30, 2025, $1,180,135 of inventory was recognized as cost of sales, compared to $2,556,085 for the same period in 202423 Note 7. Right of Use Assets and Lease Liabilities This note details the company's right-of-use assets and lease liabilities, including related expenses and potential risks from lease disputes Right of Use Assets and Lease Liabilities Overview | Metric | June 30, 2025 | March 31, 2025 | | :------------------- | :------------- | :------------- | | Carrying Value of Right of Use Assets | $5,194,459 | $5,479,555 | | Total Lease Liabilities | $6,082,495 | N/A | | Current Portion of Lease Liabilities | $752,115 | $633,035 | | Long-Term Portion of Lease Liabilities | $5,330,380 | $5,535,051 | - The company received a default notice from its landlord due to a dispute over rent credit interpretation for its West Virginia leased facility, potentially facing risks of paying arrears, prepaying rent, or terminating the lease and vacating the premises26 Lease-Related Expenses (For the Three Months Ended June 30, 2025) | Expense Category | 2025 | 2024 | | :------------- | :------- | :------- | | Interest Expense on Lease Liabilities | $149,769 | $86,483 | | Depreciation Expense on Right of Use Assets | $208,375 | $192,324 | | Total Lease Payments | $254,690 | $261,355 | Note 8. Property and Equipment This note details the changes in property and equipment, reflecting depreciation and foreign exchange translation adjustments Property and Equipment Changes (For the Three Months Ended June 30, 2025) | Item | Amount | | :----------------------- | :------------- | | Property and Equipment as of March 31, 2025 | $1,310,581 | | Less: Depreciation | $(162,724) | | Add: Foreign Exchange Translation | $5,162 | | Property and Equipment as of June 30, 2025 | $1,153,019 | Note 9. Restricted deposit This note describes the company's restricted deposits, primarily pledged as collateral for an irrevocable standby letter of credit - The company has pledged $400,000 in term deposits as collateral for an irrevocable standby letter of credit, supporting the company's import of goods into the United States33 - On April 24, 2025, the standby letter of credit was amended, increasing by $50,000 to $450,000, with the lender reserving $50,000 from the company's line of credit as collateral for the revised letter of credit33 Note 10. Line of credit This note details the company's line of credit, including its limit, interest rate, collateral, and compliance with financial covenants - The company has a line of credit up to $6,000,000, with an interest rate of the bank's U.S. prime rate (8.0% as of June 30, 2025) plus a 2.25% spread34 - The line of credit is secured by a general floating charge over the company's assets and those of a subsidiary, and personally guaranteed by two directors for a total of $5,020,00035 - The company is required to maintain a current ratio financial covenant greater than 1.2:1, which it met as of June 30, 2025, and March 31, 202535 Line of Credit Balances | Date | Drawn Balance | | :----------- | :----------- | | June 30, 2025 | $5,948,580 | | March 31, 2025 | $5,983,572 | Note 11. Term loan facility This note describes the company's term loan facility, including its purpose, interest rate, security, and compliance status with financial covenants - In February 2024, the company entered into a $5,000,000 revolving loan agreement with Export Development Canada (EDC) to finance working capital investments for electric vehicle deliveries37 - The loan bears a floating interest rate of the U.S. prime rate plus 5%, secured by guarantees and security interests from the company and certain subsidiaries37 - The company complies with the current ratio covenant of greater than 1.2:1, but anticipates non-compliance with the debt service coverage ratio covenant (1.25:1) by the end of fiscal 2026 due to not generating positive EBITDA over the past four quarters38 Term Loan Facility Balances | Date | Loan Balance | | :----------- | :----------- | | June 30, 2025 | $3,591,507 | | March 31, 2025 | $3,591,354 | Note 12. Share capital This note outlines the company's authorized share capital and details the issuance of common shares during the period - The company is authorized to issue an unlimited number of common shares and preferred shares without par value39 - For the three months ended June 30, 2025, the company issued 216,007 common shares through its 2025 ATM for gross proceeds of $97,964, and 234,447 common shares as bonus shares for a $1.5 million loan, totaling 450,454 common shares issued3940 Note 13. Stock Options This note provides an overview of the company's stock option plans, including outstanding and exercisable options, and related share-based payment expenses - The company operates the 2023 Equity Incentive Plan and 2022 Equity Incentive Plan, granting stock options to directors, officers, employees, and consultants404243 Stock Option Overview (As of June 30, 2025) | Metric | March 31, 2025 | June 30, 2025 | | :------------------- | :------------- | :------------- | | Total Options Outstanding | 2,582,628 | 2,506,928 | | Total Options Exercisable | 1,681,378 | 1,803,178 | | Weighted Average Exercise Price | CDN$7.95 | CDN$7.92 | | Weighted Average Remaining Life | 3.2 years | 3.0 years | - For the three months ended June 30, 2025, 75,700 stock options were forfeited with a weighted average exercise price of CDN$2.8646 Share-Based Payment Expense | Period | Share-Based Payment Expense | | :------------------- | :------------- | | Three months ended June 30, 2025 | $184,144 | | Three months ended June 30, 2024 | $408,005 | Note 14. Warrants This note provides an overview of the company's warrants, including the total outstanding and newly issued warrants during the period Warrants Overview (As of June 30, 2025) | Metric | March 31, 2025 | June 30, 2025 | | :----------- | :------------- | :------------- | | Total Warrants Outstanding | 1,725,000 | 3,984,203 | | Warrants Issued During the Period | - | 2,259,203 | - As of June 30, 2025, the company issued a total of 2,259,203 new warrants, primarily related to several related party loans in May and June 2025, with exercise prices ranging from $0.38 to $0.4648 Note 15. Deferred Revenue This note details the changes in deferred revenue, primarily from customer deposits for undelivered vehicles and parts, distinguishing between current and long-term portions Deferred Revenue Changes (As of June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | | :----------------------- | :------------- | :------------- | | Deferred Revenue, Beginning of Period | $10,138,356 | $9,942,385 | | Deferred Revenue Added During Period | $374,312 | $1,077,193 | | Deposits Returned | $(3,000) | $(22,534) | | Deferred Revenue Recognized During Period | $(31,430) | $(858,688) | | Deferred Revenue, End of Period | $10,478,238 | $10,138,356 | | Current Portion | $3,619,418 | $3,279,536 | | Long-Term Portion | $6,858,820 | $6,858,820 | - Deferred revenue primarily consists of customer deposits for the purchase of undelivered all-electric vehicles and parts49 Note 16. Financial Instruments This note identifies the company's financial instruments and discusses the associated credit, liquidity, and market risks, including interest rate and foreign exchange exposures - The company's financial instruments include cash, accounts receivable, finance lease receivables, restricted deposits, line of credit, loans payable to related parties, term loans, accounts payable and accrued liabilities, other liabilities, and lease liabilities51 - The company faces credit risk (primarily from cash, accounts receivable, finance lease receivables, and restricted deposits), liquidity risk (significant uncertainty regarding going concern, reliance on additional financing), and market risk (interest rate and foreign exchange risks)535557 Canadian Dollar Denominated Financial Assets and Liabilities (As of June 30, 2025) | Item | Canadian Dollar Amount | | :----------------------- | :----------- | | Cash | $53,317 | | Prepayments and Deposits | $10,988 | | Finance Lease Receivables | $42,092 | | Accounts Payable and Accrued Liabilities | $(923,922) | | Related Party Loans | $(5,364,766) | | Net Exposure | $(6,182,291) | | Impact of 10% CAD to USD Exchange Rate Change on Net Income/Loss | Approximately $453,162 | Note 17. Related Party Transactions This note details transactions with related parties, including compensation for key management personnel, loans from related parties, and personal guarantees provided by directors Compensation for Directors, Officers, and Key Management Personnel (For the Three Months Ended June 30, 2025) | Compensation Category | June 30, 2025 | June 30, 2024 | | :--------------- | :------------- | :------------- | | Salaries and Benefits | $135,280 | $138,730 | | Consulting Fees | $126,250 | $141,250 | | Non-Cash Option Vesting | $109,517 | $291,914 | | Total | $371,047 | $571,894 | - As of June 30, 2025, accounts payable and accrued liabilities include $246,085 owed to officers, directors, their controlled companies, and shareholders, which are non-interest bearing, unsecured, and without fixed repayment terms60 - The company obtained new term loans totaling $1.5 million from related parties in Q2 2025, bearing an annual interest rate of 12% and accompanied by bonus warrants or shares62636469 - Existing loans from FWP Holdings LLC (beneficially owned and controlled by the company's CEO and Chairman) have been subordinated to the security interest of the term loan facility under an extension and subordination agreement, thus classified as non-current liabilities61 - The fair value of the newly issued related party loans was $1.2 million, resulting in an effective interest rate of approximately 24% over the loan term66 - Company directors Fraser Atkinson and David Richardson provided personal guarantees totaling $5,020,000 for the company's operating line of credit68 Note 18. Segmented information and supplemental cash flow disclosure This note provides information on the company's single operating segment, geographical revenue breakdown, and supplemental cash flow details for interest and taxes paid - The company operates in one reportable operating segment: the manufacturing and distribution of all-electric medium and heavy-duty vehicles70 Revenue by Geographic Region (For the Three Months Ended June 30, 2025) | Region | June 30, 2025 | June 30, 2024 | | :----------- | :------------- | :------------- | | United States | $1,227,600 | $2,594,560 | | Canada | $321,867 | $402,498 | | Total | $1,549,467 | $2,997,058 | Cash Payments for Interest and Taxes (For the Three Months Ended June 30, 2025) | Item | June 30, 2025 | June 30, 2024 | | :------- | :------------- | :------------- | | Interest Paid | $391,028 | $262,623 | | Taxes Paid | $0 | $0 | - As of June 30, 2025, and March 31, 2025, over 90% of the company's property and equipment was located in the United States71 Note 19. Warranty Liability This note details the company's warranty liabilities, including the basis for estimation and expected future warranty costs - The company typically provides a basic warranty for its vehicles, mostly for a five-year term, and estimates provisions for future warranty claims based on historical claim information and recent trends7374 Warranty Liability Changes (As of June 30, 2025) | Item | June 30, 2025 | March 31, 2025 | | :--------------- | :------------- | :------------- | | Balance, Beginning of Period | $2,565,429 | $2,499,890 | | Additions to Warranty | $50,636 | $714,956 | | Warranty Payments | $(72,247) | $(649,092) | | Total | $2,544,104 | $2,565,429 | | Current Portion | $810,862 | $816,326 | | Long-Term Portion | $1,733,242 | $1,749,103 | - The company anticipates incurring approximately $810,862 in warranty costs over the next twelve months74 Note 20. Litigation and Legal Proceedings This note outlines the company's involvement in various pending legal actions, including civil claims, counterclaims, and customer disputes, and the associated contingent liabilities - The company is involved in several pending legal proceedings, including civil claims and counterclaims with a former CEO and director, a claim for breach of a confidentiality agreement, and a customer claim arising from lease termination and vehicle repossession767778 - As of March 31, 2025, the company recorded a contingent liability of $310,000 for potential legal judgments, classified as a current liability79 - Management believes there is an additional potential liability of $437,500 related to other legal matters, but no provision has been made for this amount due to management's assessment of a high probability of successful defense79 Note 21. Subsequent Events This note discloses significant events that occurred after the reporting period, including stock option forfeitures, new related party loans, and common share issuances - Between July 1 and August 8, 2025, 55,178 stock options were forfeited with a weighted average exercise price of CAD$3.7880 - On July 4, 2025, the company obtained loans totaling $250,000 from related parties, granting 304,878 warrants and issuing 60,975 common shares as inducements80 - In August 2025, the company issued 459,493 common shares through its ATM for gross proceeds of $247,43780