Financial Data and Key Metrics Changes - For Q3 2025, net sales were $2.4 million, a decrease of $100,000 from $2.5 million in Q3 2024, primarily due to lower truck deliveries [10] - Cost of sales increased to $10.1 million from $6.6 million year-over-year, driven by a $3.3 million increase in inventory excess and obsolescence reserve [11] - Net loss for Q3 2025 was $7.8 million, significantly improved from a loss of $25.1 million in the same period last year [12] - The company recognized a gain on the sale of assets of $13.8 million related to the sale leaseback of its Union City facility [13] - Cash and cash equivalents increased to $38.2 million from $4.6 million year-over-year, bolstered by $25 million in funding from Motiv's controlling investor [13][14] Business Line Data and Key Metrics Changes - The company sold 15 trucks during the quarter, reflecting progress in scaling sales and expanding the product portfolio [4] - The W56 step van continues to gain traction, with significant customer demand and positive feedback, achieving a 97% uptime availability in operations [5][8] Market Data and Key Metrics Changes - The company is actively engaging with logistics providers and service fleets to build order interest through its national dealer network [5] - The W56 step van is eligible for California's HVIP vouchers, which can provide $85,000 per truck, enhancing its market competitiveness [7] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in North America's medium-duty electric truck market, accelerating growth and expanding the product lineup [8][9] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the production launch of the W56 140 kW vehicle in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver value to shareholders and emphasized the importance of completing the transaction with Motiv [15][16] - The company is optimistic about the future, citing a potential 55-65% reduction in total cost of operation for its trucks compared to traditional vehicles [26] Other Important Information - The company completed a sale leaseback transaction for $20 million and secured a $5 million convertible note financing, strengthening its financial position [9][13] - The annual general shareholder meeting is scheduled for November 12, 2025, where shareholder approval for the Motiv transaction is sought [16] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement with California's HVIP vouchers, leading to increased orders, and mentioned positive developments in Washington and New York regarding similar incentives [20] Question: Cost trends as production ramps up in 2026 - Management indicated that both bill of material costs and labor costs are expected to improve as production increases, with ongoing efforts to reduce costs through engineering and supply chain optimization [22][23] Question: Total cost of operation reduction for trucks - Management highlighted that operational data shows a 55-65% reduction in total cost of operation, emphasizing the benefits of electric trucks over traditional vehicles [26]