GreenPower Improves Balance Sheet by $6.8 Million

Core Points - GreenPower Motor Company has entered an agreement to retain over $6 million in deposits for the manufacture of EV Star Cab & Chassis, with no further obligation to deliver vehicles [1] - The company will recognize a total of $6.8 million of deferred revenue in the current quarter ending December 31, 2025, improving its balance sheet [2] - The elimination of deferred revenue will reduce total liabilities and increase shareholders' equity by $6.8 million, strengthening the company's financial position [3] Financial Impact - The advance payments received for the EV Star Cab & Chassis were recorded as deferred revenue until vehicle delivery was accepted [2] - The recognition of this deferred revenue will positively impact the company's revenue and cash flow [3] Production and Future Plans - The EV Star Cab & Chassis manufactured with these payments will be utilized to produce the all-electric Type A Nano BEAST school bus, which is expected to reduce production lead times [3] - This strategic move is anticipated to create a clear path toward accelerated revenue recognition, margin expansion, and improved operating cash flow for the company [3]