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]

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 offset by an increase in deferred revenue recognition [10][11] - Cost of sales increased to $10.1 million from $6.6 million year-over-year, primarily due to a $3.3 million increase in inventory excess and obsolescence reserve [10][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] - 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 in Q3 2025, reflecting progress in scaling sales and expanding the product portfolio [4][5] - The W56 step van continues to gain traction, with a 97% or greater uptime availability reported during operations with FedEx [8][21] Market Data and Key Metrics Changes - Customer demand for the W56 step van is increasing, particularly in California, Washington, and New York, with successful engagement leading to repeat orders from FedEx ground operators [20][21] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in the medium-duty electric truck market, enhancing growth potential and product offerings [8][9][15] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the W56 140 kW production launch in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging market conditions and emphasized the importance of the Motiv transaction for long-term success [9][15][30] - The company is optimistic about the potential for cost reductions and operational efficiencies post-merger, which will enhance shareholder value [30] Other Important Information - The company recognized a gain of $13.8 million from the sale leaseback of its Union City facility and a $4.8 million gain related to deferred revenue [12][13] - The merger with Motiv is expected to close in Q4 2025, pending shareholder approval [9][14] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement in California leading to increased orders and mentioned positive developments in Washington and New York regarding incentives [20][21] Question: Cost trends as production ramps up for the W56 vehicle - 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 management [22][23] Question: Total cost of operation reduction for the W56 - Management highlighted a projected 55-65% reduction in total cost of operation, emphasizing the benefits of no fuel costs and high uptime [26]

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 offset by an increase in deferred revenue recognition [9] - Cost of sales increased to $10.1 million from $6.6 million, primarily due to a $3.3 million increase in inventory excess and obsolescence reserve [10] - Net loss for Q3 2025 was $7.8 million, significantly improved from a loss of $25.1 million in the same period last year [11] 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 see growing customer demand, with a 97% or greater uptime availability reported [7] Market Data and Key Metrics Changes - The W56 step van is eligible for California's HVIP vouchers, which can provide $85,000 per truck, contributing to increased orders from logistics providers [6][20] - Positive movements in state-level incentives are also noted in Washington and New York, indicating potential growth opportunities beyond California [20] Company Strategy and Development Direction - The proposed transaction with Motiv aims to create a stronger entity in the medium-duty electric truck market, enhancing growth and product offerings [7][8] - The company is focused on cash conservation, expense reduction, and operational efficiencies while preparing for the W56 140 kW production launch in 2026 [15] 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 merger with Motiv [16] - The company is optimistic about capturing new opportunities in the commercial EV transition and believes the merger will enhance operational capabilities and product offerings [31] Other Important Information - The company recognized a gain of $13.8 million from the sale leaseback of its Union City facility, which bolstered its financial position [12] - Cash and cash equivalents increased to $38.2 million from $4.6 million year-over-year, largely due to funding from Motiv's controlling investor [12] Q&A Session Summary Question: Broader market outlook for state-level incentives beyond California - Management noted successful engagement with state-level incentives in California, Washington, and New York, leading to increased orders from FedEx ground operators [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 the W56 step van - Management highlighted a 55-65% reduction in total cost of operation, emphasizing the benefits of no fuel costs and high uptime [26]