CORONA, CA / ACCESSWIRE / November 11, 2021 / Envirotech Vehicles Inc. (OTCQB:ADOM), a provider of new zero-emission purpose-built electric vehicles, today announced its results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Results
Sales were approximately $709,000 for the three months ended September 30, 2021, compared to $0 for the three months ended September 30, 2020. The sales increase was primarily related to the sale of eight vehicles in the third quarter of 2021 compared to no vehicles in the prior year period. Sales for the 2021 period also include maintenance and inspection service sales.
Sales were approximately $1,368,000 for the nine months ended September 30, 2021, compared to $89,000 for the nine months ended September 30, 2020. The sales increase was primarily related to the sale of 13 vehicles in the 2021 period compared to one vehicle in the prior year period. Sales for the 2021 period also include maintenance and inspection service sales.
Total operating expenses for the three and nine months ended September 30, 2021 were approximately $1,382,000 and $2,909,000, respectively, compared to $71,000 and $277,000 for the same periods in 2020, as the company invested in its operations in advance of anticipated higher sales. Total net operating expenses included non-cash charges of approximately $433,000 and $468,000, respectively, for the three and nine month periods ended September 30, 2021.
Net loss in the third quarter of 2021 was approximately $850,000 compared to a net loss of $71,000 in the third quarter of 2020. Net loss for the nine months ended September 30, 2021, was approximately $2,402,000 compared to a net loss of $255,000 for the same period in 2020.
As of September 30, 2021, the Company had cash, cash equivalents, restricted cash and marketable securities of approximately $17.6 million and debt of approximately $53,000, as compared to approximately $1.9 million of cash, cash equivalents, restricted cash and marketable securities, and debt of approximately $153,000 as of December 31, 2020. Working capital at September 30, 2021 was approximately $23.3 million as compared to a working capital deficit of approximately $789,000 at December 31, 2020.
Phillip Oldridge, CEO of Envirotech Vehicles, commented, "We reported strong revenue growth for the quarter and tremendous momentum in our business with heightened interest from the marketplace as evidenced by the many strategic partnerships, programs, and agreements we announced. It was gratifying to see several customer contracts that we've pursued during the past year convert into the sale and delivery of our vehicles. In the third quarter, we delivered a total of eight vehicles to customers through a combination of our expanding factory authorized representative, or FAR, network, the New Jersey Zero Emissions Incentive Program, and via individual sales. Additionally, the New Jersey Zero Emissions Incentive Program has approved a total of 13 vouchers for our customers, 12 of which remain outstanding for an aggregate value of approximately $1.1 million for the future purchase of our vehicles, representing a strong and increasing demand for our best-in-class fleet."
Highlights and Recent Company Developments:
- Announced our intent to enter into a transaction with ProGreens New Energy Technology Co. Ltd., pursuant to which, as currently contemplated, we would purchase certain battery manufacturing equipment from ProGreens and, if we are able to close the transaction and effectively execute our plan to establish a U.S. manufacturing facility, would position us as one of the few EV companies with in-house battery manufacturing capabilities. Completion of the purchase is subject to certain conditions, including the negotiation and execution of a definitive purchase agreement and approval by our Board of Directors.
- New Jersey Zero Emissions Incentive Program has approved a total of 13 vouchers, 12 of which remain outstanding for an aggregate value of approximately $1.1 million towards the future purchase of the Company's vehicles.
- Signed a FAR agreement with Shine Solar, LLC, allowing the Rogers, Arkansas based solar energy equipment provider to promote, sell and service Envirotech Vehicles' products throughout the United States; delivered one van and one truck to Shine Solar, for demonstration use.
- Entered into a FAR Agreement with Wasatch Clean Energy, the a Salt Lake City, Utah based truck and van equipment installation provider for the promotion, sale and service of Envirotech products throughout the United States; delivered three trucks and one cargo van to Basin Upfitting, an affiliate of Wasatch Clean Energy.
- Delivered one truck to Electric Junk and Hauling, LLC, based in Kensington, California
- Announced the appointment of Larry Caughlan as the Company's General Counsel.
Mr. Oldridge continued, "Furthering this growth and increase in demand for EVs is the American Jobs Plan, announced by the Biden administration in March of 2021, as well as the infrastructure bill passed by congress late last week. We believe we are in the final phases of choosing a location for a U.S. manufacturing facility, with which we would be well positioned to benefit from these legislative initiatives. Relocating our operations to the U.S. would also qualify us to benefit from consumer incentive programs and tax credits associated with the purchase of American made zero-emission, medium- and heavy-duty vehicles, while also improving margins and reducing supply chain risks associated with importing our vehicles from Asia. This would be a transformative next step for our business, and we look forward to keeping you apprised."
Conference Call Information
The Company will host a conference call today, Thursday, November 11, 2021 at 4:30 p.m. Eastern time to discuss its third quarter 2021 results.
To access the live webcast, please use the following link:
https://www.webcaster4.com/Webcast/Page/2214/43640
To participate in the call by phone, dial (844) 407-9500 approximately five minutes prior to the scheduled start time. International callers should dial (862) 298-0850.
A replay of the teleconference will be available until Thursday, November 25, 2021, and may be accessed by dialing (877) 481-4010 and using replay passcode 434640. International callers should dial (919) 882-2331and use replay passcode 43640.
About Envirotech Vehicles
Envirotech Vehicles, Inc. is a provider of purpose-built zero-emission electric vehicles focused on reducing the total cost of vehicle ownership and helping fleet operators unlock the benefits of green technology. We serve commercial and last-mile fleets, school districts, public and private transportation service companies and colleges and universities to meet the increasing demand for heavy duty electric vehicles. Our vehicles address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. For more information visit www.evtvusa.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in reports filed by Envirotech Vehicles, Inc. with the Securities and Exchange Commission, all of which are available online at www.sec.gov. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech Vehicles undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
Contact Information
Investor Relations Contacts:
IMS Investor Relations
John Nesbett/Jennifer Belodeau
Telephone: (203) 972-9200
Email: [email protected]
Envirotech Vehicles
Michael K. Menerey, Chief Financial Officer
Telephone: (951) 407-9860 ext. 1205
Email: [email protected]
SOURCE: Envirotech Vehicles, Inc.