Financial Performance - For the three months ended March 31, 2024, sales increased to $810,490, up 55% from $523,199 in the same period of 2023[16] - Gross profit for the same period was $308,219, compared to $118,363 in the prior year, reflecting a significant improvement[16] - The company reported a net loss of $4,532,363 for the three months ended March 31, 2024, compared to a net loss of $2,267,908 in the same period of 2023[16] - Operating expenses for the three months ended March 31, 2024, were $3,264,516, compared to $2,411,229 in the same period of 2023[16] Assets and Liabilities - Total current assets as of March 31, 2024, were $12,642,726, an increase from $12,056,159 as of December 31, 2023[13] - Total liabilities increased to $4,658,394 as of March 31, 2024, compared to $2,019,591 as of December 31, 2023[13] - The accumulated deficit increased to $69,144,862 as of March 31, 2024, from $64,612,499 as of December 31, 2023[13] - Cash and cash equivalents at the end of the period were $1,049,357, up from $456,719 at the beginning of the period[21] Receivables and Inventory - As of March 31, 2024, the company had accounts receivable of $1,025,187, an increase from $692,102 on December 31, 2023, indicating a growth of approximately 48%[31] - The company reported trade accounts receivable of $1,046,090 as of March 31, 2024, with an allowance for doubtful accounts of $20,903, resulting in a net trade accounts receivable balance of $1,025,187[37] - Finished goods inventory on hand was $7,253,148 as of March 31, 2024, compared to $6,830,593 on December 31, 2023, reflecting an increase of approximately 6.2%[38] - The company had inventory deposits of $2,833,631 as of March 31, 2024, a decrease from $3,300,388 on December 31, 2023[39] Research and Development - Research and development costs were $70,265 for the three months ended March 31, 2024, slightly down from $70,888 for the same period in 2023[49] Stock and Compensation - The company recorded non-cash stock-based compensation expense of $1,818,383 for the three months ended March 31, 2024, a significant increase from $87,144 in the same period of 2023[50] - The Company recorded stock compensation expense of $50,549 for 65,660 restricted shares awarded in November 2023 during the three months ended March 31, 2024[74] Financing and Agreements - The company issued 348,889 shares of common stock for cash, raising $585,499 during the period[21] - The Company entered into a convertible promissory note agreement for $1,000,000 with an origination fee of $99,000, maturing on September 30, 2024[60] - The net proceeds of $901,000 were allocated with $431,405 to Options and the remaining to the Note, resulting in unrealized losses of $557,497 for the Note and $1,012,430 for the Options for the three months ended March 31, 2024[62] - The Company issued options to purchase 2,000,000 shares at an exercise price of $2.75 contingent upon achieving sales targets, which were not met as of March 31, 2024[73] Lease Agreements - The Company has lease agreements with SRI Professional Services, resulting in a total rent expense of $23,312 for the three months ended March 31, 2024[75] - The Company has a commercial lease agreement with ABCI, incurring a rent expense of $15,000 for the three months ended March 31, 2024[76] - The total lease cost for the three months ended March 31, 2024, was $114,439, which includes $89,268 in operating lease expenses and $25,171 in short-term lease expenses[90] - The Company has future minimum payments under operating leases totaling $510,283, with $261,410 due in 2024 and $248,873 in 2025[90] Business Expansion - The company is focused on expanding its zero-emission vehicle offerings to meet the growing demand in commercial and last-mile fleet markets[25] - The Company entered into a Sale and Purchase Agreement to deliver 200 electric high roof vans and trucks for approximately $16.2 million over the next 13 months[80] - The Company has entered into an agreement to sublease a warehouse in the Philippines to expand its business presence in the region and the United States[79] - The Company entered into a sublease agreement for a warehouse in the Philippines, with monthly rent starting at $15,000, escalating to $16,530, and intends to use the space for production to expand its business presence[87] Risks and Market Conditions - The Company anticipates facing risks associated with raw material costs, particularly batteries, as it goes into production, which could materially affect operating results[137] - The Company does not currently face material market risks such as interest rate fluctuation risk and foreign currency exchange risk, as most expenses are denominated in U.S. dollars[136]
Envirotech Vehicles(EVTV) - 2024 Q1 - Quarterly Report