UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Item 2.02 | Results of Operations and Financial Condition. |
On November 14, 2022, Envirotech Vehicles, Inc. issued a press release (the “Press Release”) announcing its financial results for the third quarter ended September 30, 2022. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section. Furthermore, such information, including Exhibit 99.1, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description | |
| 99.1 | Press Release dated November 14, 2022. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ENVIROTECH VEHICLES, INC. | ||||||
| Dated: November 15, 2022 | By: | /s/ Christian S. Rodich | ||||
| Christian S. Rodich | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
Envirotech Vehicles Announces Third Quarter 2022 Financial Results
Osceola, Arkansas, November 14, 2022, Envirotech Vehicles, Inc. (“Envirotech Vehicles” or the “Company”) (Nasdaq: EVTV), a provider of new zero-emission, purpose-built electric vehicles, today announced its results for the third quarter and nine months ended September 30, 2022.
Third Quarter 2022 Financial Results
Sales were $3,882,670 for the three months ended September 30, 2022, compared to $709,092 for the three months ended September 30, 2021. The sales increase was primarily related to the sale of 37 vehicles in the third quarter of 2022 compared to eight vehicles in the prior year period.
Total net operating expenses for the three months ended September 30, 2022, were $1,738,397, compared to $1,381,574 for the same period in 2021, as the Company continues to invest in its operations. The increase in expenses during the quarter is primarily related to increased headcount and sales and marketing expenses. Total net operating expenses included non-cash charges of $69,093 for the three months ended September 30, 2022.
Net income in the third quarter of 2022 was $126,749, or $0.01 per basic and diluted share, compared to a net loss of $850,475 or ($0.06) per basic and diluted share in the third quarter of 2021.
As of September 30, 2022, the Company had cash, cash equivalents, restricted cash and marketable securities of $4,659,538 and working capital of $20,246,804.
Phillip Oldridge, Chief Executive Officer of Envirotech Vehicles, commented, “In the third quarter, we generated a profit, the first in our company’s history. This achievement was driven by a more than 75% increase in vehicle deliveries relative to the second quarter, as we delivered 37 units, and is also a testament to our lean, cost-focused organization. We believe we could have hit our target of doubling deliveries on a quarter over quarter basis if not for shipping delays, but are nonetheless very proud to have navigated the myriad of challenges presented by global supply chains to have delivered a total of 70 vehicles this year as of September 30.”
“On the manufacturing front, we continued to make progress on refurbishing our Osceola, Arkansas facility during the third quarter,” continued Mr. Oldridge. “We performed extensive maintenance and upkeep inside and on the grounds of the facility. Further, we have secured our engineering, design and architecture teams as we pivot to commencement of construction inside the building to convert it to an electric vehicle manufacturing, production and assembly facility by 2024.”
“Looking ahead, legislative tailwinds and incentive programs are a big driver in these early days of what will be a generational shift to electric vehicles. As a result, we have hired a full-time grant writing firm, and have assembled a team of state and federal consultants to help ensure that we maximize our potential. As an example, we were excited to see the initial round of funding by the EPA to spur school bus electrification in the U.S., and we expect to be a beneficiary in 2023 and other future funding rounds as our school bus comes to market in the first half of next year. More broadly, we remain excited about large scale government fleet electrification opportunities, and have seen growing inquiries from prospective international customers as well. Going forward, growth may not be linear - and holiday shutdowns plus the impact on orders of the inherently lumpy state and federal funding programs would suggest we will see a retreat in fourth quarter 2022 deliveries relative to the third quarter - but we remain excited about the continued growing interest in and demand for our vehicles as we look out to 2023 and beyond,” concluded Mr. Oldridge.
Conference Call Information
The Company will host a conference call tomorrow, Tuesday, November 15, 2022, at 8:30 a.m. Eastern Time to discuss its results for the third quarter and nine months ended September 30, 2022.
To access the live webcast, please use the following link:
https://pr.report/zJK7SUWH
TTo participate by phone, please dial 877-545-0523 approximately five minutes prior to the scheduled start time and request the Envirotech Vehicles call. International callers should dial 973-528-0016. Participants may also provide the access code, which is 815808.
A replay of the teleconference will be available until Tuesday, November 29, 2022, and may be accessed by dialing 877-481-4010. International callers should dial 919-882-2331. The replay passcode is 47078.
About Envirotech Vehicles
Envirotech Vehicles 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
ICR, Inc.
New York, NY
Telephone: (646) 200-8873
Email: envirotech@icrinc.com
Envirotech Vehicles
Susan Emry, Executive Vice President
Telephone: (870) 970-3355 ext. 1001
Email: sue.e@evtvusa.com
ENVIROTECH VEHICLES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
| September 30, 2022 |
December 31, 2022 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 2,623,099 | $ | 4,846,490 | ||||
| Restricted cash |
60,131 | 60,035 | ||||||
| Marketable securities |
1,976,308 | 8,002,700 | ||||||
| Accounts receivable |
7,804,369 | 1,428,030 | ||||||
| Inventory, net |
3,603,852 | 3,850,541 | ||||||
| Inventory deposits |
4,812,439 | 4,503,079 | ||||||
| Prepaid expenses |
709,621 | 332,514 | ||||||
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| Total current assets |
21,589,819 | 23,023,389 | ||||||
| Property and equipment, net |
305,617 | 272,113 | ||||||
| Goodwill |
51,775,667 | 51,775,667 | ||||||
| Other non-current assets |
78,374 | 236,639 | ||||||
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| Total assets |
$ | 73,749,477 | $ | 75,307,808 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 161,545 | $ | 238,464 | ||||
| Accrued liabilities |
1,154,026 | 1,280,020 | ||||||
| Notes payable, net |
27,444 | 31,788 | ||||||
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| Total current liabilities |
1,343,015 | 1,550,272 | ||||||
| Long-term Liabilities |
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| Other non-current liabilities |
— | 2,427 | ||||||
| Notes payable, net |
18,234 | 13,245 | ||||||
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| Total liabilities |
1,361,249 | 1,565,944 | ||||||
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| Stockholders’ equity (deficit): |
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| Preferred stock, 5,000,000 authorized, $0.00001 par value per share, none issued and outstanding as of September 30, 2022, and December 31, 2021 |
— | — | ||||||
| Common stock, 350,000,000 authorized, $0.00001 par value per share, 15,021.088 and 14,912,189 issued and outstanding as of September 30, 2022, and December 31, 2021, respectively |
150 | 149 | ||||||
| Additional paid-in capital |
83,923,350 | 81,866,075 | ||||||
| Accumulated deficit |
(11,535,272 | ) | (8,124,360 | ) | ||||
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| Total stockholders’ equity |
72,388,228 | 73,741,864 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 73,749,477 | $ | 73,307,808 | ||||
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See Accompanying Notes to Unaudited Consolidated Financial Statements.
ENVIROTECH VEHICLES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
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| Sales |
$ | 3,882,670 | $ | 709,092 | $ | 7,078,870 | $ | 1,368,151 | ||||||||
| Cost of Sales |
2,046,491 | 469,611 | 3,998,533 | 930,977 | ||||||||||||
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| Gross Profit |
1,836,179 | 239,481 | 3,080,337 | 437,174 | ||||||||||||
| Operating expenses: |
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| General and administrative |
1,619,210 | 1,344,840 | 6,142,194 | 2,766,989 | ||||||||||||
| Consulting |
94,187 | 36,734 | 264,505 | 142,092 | ||||||||||||
| Research and development |
25,000 | — | 112,412 | — | ||||||||||||
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| Total operating expenses, net |
1,738,397 | 1,381,574 | 6,519,111 | 2,909.081 | ||||||||||||
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| Income (loss) from operations |
97,782 | (1,142,093 | ) | (3,438,774 | ) | (2,471,907 | ) | |||||||||
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| Other income (expense): |
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| Interest income, net |
30,200 | 8,116 | 37,956 | 2,357 | ||||||||||||
| Other income, net |
(1,233 | ) | 285,902 | (10,094 | ) | 288,186 | ||||||||||
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| Total other income (expense) |
28,967 | 294,018 | 27,862 | 290,543 | ||||||||||||
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| Income (loss) before income taxes |
126,749 | (848,075 | ) | (3,410,912 | ) | (2,181,364 | ) | |||||||||
| Income tax expense |
— | (2,400 | ) | — | (220 ,700 | ) | ||||||||||
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| Net income (loss) |
$ | 126,749 | (850,475 | ) | (3,410,912 | ) | (2,402,064 | ) | ||||||||
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| Net income (loss) per share to common stockholders |
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| Basic and diluted |
$ | 0.01 | $ | (0.06 | ) | $ | (0.23 | ) | $ | (0.23 | ) | |||||
| Weighted shared used in the computation of net income (loss) per share |
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| Basic and diluted |
15,013,236 | 14,715,694 | 14,981,836 | 10,349,101 | ||||||||||||
See Accompanying Notes to Unaudited Consolidated Financial Statements.
Document and Entity Information |
Nov. 14, 2022 |
|---|---|
| Cover [Abstract] | |
| Amendment Flag | false |
| Entity Central Index Key | 0001563568 |
| Document Type | 8-K |
| Document Period End Date | Nov. 14, 2022 |
| Entity Registrant Name | ENVIROTECH VEHICLES, INC. |
| Entity Incorporation State Country Code | DE |
| Entity File Number | 001-38078 |
| Entity Tax Identification Number | 46-0774222 |
| Entity Address, Address Line One | 1425 Ohlendorf Road |
| Entity Address, City or Town | Osceola |
| Entity Address, State or Province | AR |
| Entity Address, Postal Zip Code | 72370 |
| City Area Code | (870) |
| Local Phone Number | 970-3355 |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Security 12b Title | Common stock, $0.00001 par value |
| Trading Symbol | EVTV |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | true |
| Entity Ex Transition Period | true |