GreenPower Motor Co(GP) - 2026 Q2 - Quarterly Report

Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $2,489,820, a decrease of 53.4% compared to $5,347,190 for the same period in 2024[5] - Gross profit for the six months ended September 30, 2025, was $635,400, down from $681,499 in 2024, reflecting a decline of 6.8%[5] - For the six months ended September 30, 2025, total revenue was $4,454,135, down 46.6% from $8,344,248 in the prior year[70] - For the three months ended September 30, 2025, total revenue was $2,904,668, a decrease of 45.7% compared to $5,347,190 for the same period in 2024[70] Losses and Financial Performance - The company reported a net loss of $3,593,359 for the three months ended September 30, 2025, compared to a net loss of $4,701,864 in 2024, indicating an improvement of 23.6%[5] - For the six months ended September 30, 2025, the company reported a loss of $7,757,210, an improvement from a loss of $10,090,512 in the same period of 2024, representing a 23.3% reduction in losses[7] - The company has not generated positive EBITDA in the trailing four quarters ended September 30, 2025, impacting its compliance with financial covenants[38] Cash and Working Capital - Cash increased to $511,094 as of September 30, 2025, from $344,244 as of March 31, 2025, representing a growth of 48.4%[3] - Working capital as of September 30, 2025, was $6,352,309, while the accumulated deficit stood at $(105,123,190)[10] - The company's cash balance increased to $511,094 as of September 30, 2025, compared to $344,244 at the end of March 31, 2025, indicating a net increase of $166,850[10] Inventory and Accounts Receivable - Inventory decreased to $23,758,913 as of September 30, 2025, down 7.2% from $25,601,888 as of March 31, 2025[3] - Total inventory decreased to $23,758,913 as of September 30, 2025, from $25,601,888 at March 31, 2025, with a write-down of inventory amounting to $210,000 during the period[25] - The company recorded a provision of $595,681 against accounts receivable as of September 30, 2025, reflecting an increase from $563,152 at March 31, 2025[22] - The company’s total accounts receivable included $670,374 that was past due over 120 days as of September 30, 2025[22] Deferred Revenue and Liabilities - Deferred revenue increased to $12,629,065 as of September 30, 2025, up from $10,138,356 as of March 31, 2025, reflecting deposits received for undelivered all-electric vehicles and parts[51][52] - The company recognized $1,721,554 in revenue from deferred revenue during the six months ended September 30, 2025[52] - The warranty liability as of September 30, 2025, was $2,558,425, with an expected $810,112 in warranty costs to be incurred within the next twelve months[75][74] - The company recorded a contingent liability of $110,000 as of September 30, 2025, for potential judgments related to legal matters[79] Financing and Capital Structure - The Company issued a total of 128,345 common shares during the six months ended September 30, 2025, raising gross proceeds of $455,095 through the 2025 ATM[40] - The outstanding balance on the term loan facility was $3,591,507 as of September 30, 2025, with the Company anticipating non-compliance with the debt service coverage ratio at the 2026 fiscal year end[38] - The Line of Credit has a credit limit of $6,000,000, with a drawn balance of $5,940,276 as of September 30, 2025, and bears interest at 8.0% plus a margin of 5.25%[34][35] - The Company entered into a term loan offering of up to $2,000,000, with gross proceeds of $1.75 million received as of September 30, 2025[66] Shareholder and Management Compensation - Total compensation for directors, officers, and key management personnel for the six months ended September 30, 2025, was $689,867, a decrease from $1,265,550 for the same period in 2024[61] - The company recorded share-based compensation expense of $269,845 for the six months ended September 30, 2025, a decrease from $697,898 for the same period in 2024[49] Risks and Uncertainties - The company plans to address material uncertainties regarding its ability to continue as a going concern by selling vehicles in inventory and seeking new financing sources[10] - The company has exposure to currency risk, with a net exposure of approximately $450,967 to net income/loss based on a 10% change in the CAD/USD exchange rate[60] - As of September 30, 2025, the company had loans from related parties totaling CAD $3,670,000 that matured on March 31, 2023, but the principal balance remains outstanding[63] Assets and Depreciation - Right of Use Assets increased from $4,124,563 on March 31, 2024, to $5,479,555 on March 31, 2025, reflecting a net addition of $1,354,992[30] - Property and Equipment decreased from $1,310,581 on March 31, 2025, to $984,631 on September 30, 2025, primarily due to depreciation of $304,326 and disposals of $24,961[32] - The company recognized depreciation expense of $416,750 on Right of Use Assets for the six months ended September 30, 2025, compared to $384,648 in the same period of 2024[27] Legal and Compliance Matters - Personal guarantees totaling $5,020,000 were provided by the company's CEO and Chairman to support the operating line of credit[69] - The company issued 29,542 bonus shares and 256,410 bonus warrants to related party lenders, with the loans recorded at a fair value of $1.4 million, resulting in an effective interest rate of approximately 24%[67]