GREENPOWER MOTOR COMPANY INC.
CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
For the Three and Nine Months Ended
(Expressed in US dollars)
(Unaudited)
|
GREENPOWER MOTOR COMPANY INC. Consolidated Condensed Interim Financial Statements |
December 31, 2024
|
GREENPOWER MOTOR COMPANY INC. Consolidated Condensed Interim Statements of Financial Position |
| December 31, 2024 | March 31, 2024 | |||||
| Assets | ||||||
| Current | ||||||
| Cash (Note 3) | $ | $ | ||||
| Accounts receivable, net of allowances (Note 4) | ||||||
| Current portion of finance lease receivables (Note 5) | ||||||
| Inventory (Note 6) | ||||||
| Prepaids and deposits | ||||||
| Non-current | ||||||
| Finance lease receivables (Note 5) | ||||||
| Right of use assets (Note 7) | ||||||
| Property and equipment (Note 8) | ||||||
| Restricted deposit (Note 9) | ||||||
| Other assets | ||||||
| $ | $ | |||||
| Liabilities | ||||||
| Current | ||||||
| Line of credit (Note 10) | $ | $ | ||||
| Term loan facility (Note 11) | ||||||
| Accounts payable and accrued liabilities (Note 16) | ||||||
| Current portion of deferred revenue (Note 14) | ||||||
| Current portion of lease liabilities (Note 7) | ||||||
| Current portion of loans payable to related parties (Note 16) | ||||||
| Current portion of warranty liability (Note 18) | ||||||
| Current portion of contingent liability (Note 19) | ||||||
| Non-current | ||||||
| Deferred revenue (Note 14) | ||||||
| Lease liabilities (Note 7) | ||||||
| Contingent liability (Note 19) | ||||||
| Loans payable to related parties (Note 16) | ||||||
| Other liabilities | ||||||
| Warranty liability (Note 18) | ||||||
| Equity | ||||||
| Share capital (Note 12) | ||||||
| Reserves | ||||||
| Accumulated other comprehensive loss | ( |
) | ||||
| Accumulated deficit | ( |
) | ( |
) | ||
| $ | $ |
Nature and Continuance of Operations and Going Concern - Note 1
Approved on behalf of the Board on February 14, 2025
| /s/ Fraser Atkinson | /s/ Mark Achtemichuk |
| Director | Director |
(The accompanying notes are an integral part of these consolidated condensed interim financial statements)
Page 3 of 23
GREENPOWER MOTOR COMPANY INC.
Consolidated Condensed Interim Statements of Operations and Comprehensive Loss
For the Three and Nine Months Ended December 31, 2024 and 2023
(Expressed in US Dollars)
(Unaudited)
| For the three months ended | For the nine months ended | |||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue (Note 17) | $ | $ | $ | $ | ||||||||
| Cost of Sales (Note 6) | ||||||||||||
| Gross Profit | ||||||||||||
| Sales, general and administrative costs | ||||||||||||
| Salaries and administration (Note 16) | ||||||||||||
| Depreciation (Notes 7 and 8) | ||||||||||||
| Product development costs | ||||||||||||
| Office expense | ||||||||||||
| Insurance | ||||||||||||
| Professional fees | ||||||||||||
| Sales and marketing | ||||||||||||
| Share-based payments (Notes 13 and 16) | ||||||||||||
| Transportation costs | ||||||||||||
| Travel, accomodation, meals and entertainment | ||||||||||||
| Allowance for credit losses (Note 4) | ||||||||||||
| Impairment of finance lease receivable (Note 5) | ||||||||||||
| Total sales, general and administrative costs | ||||||||||||
| Loss from operations before interest, accretion and foreign exchange | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Interest and accretion | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Foreign exchange gain | ||||||||||||
| Loss for the period | ( |
) | ( |
) | ( |
) | ( |
) | ||||
| Other comprehensive income | ||||||||||||
| Cumulative translation reserve | ||||||||||||
| Total comprehensive loss for the period | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| Loss per common share, basic and diluted | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| Weighted average number of common shares outstanding, basic and diluted | ||||||||||||
(The accompanying notes are an integral part of these consolidated condensed interim financial statements)
Page 4 of 23
GREENPOWER MOTOR COMPANY INC.
Consolidated Condensed Interim Statements of Changes in Equity
For the Nine Months ended December 31, 2024 and 2023
| (Expressed in US Dollars) | Share Capital | |||||||||||||||||
| (Unaudited) | Number of | Accumulated other | Accumulated | |||||||||||||||
| Common shares | Amount | Reserves | comprehensive loss | Deficit | Total | |||||||||||||
| Balance, March 31, 2023 | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||
| Shares issued for cash | - | - | - | |||||||||||||||
| Share issuance costs | - | ( |
) | - | - | - | ( |
) | ||||||||||
| Shares issued for exercise of options | ( |
) | - | - | ||||||||||||||
| Fair value of stock options forfeited | - | - | ( |
) | - | - | ||||||||||||
| Share based payments | - | - | - | - | ||||||||||||||
| Cumulative translation reserve | - | - | - | - | ||||||||||||||
| Net loss for the period | - | - | - | - | ( |
) | ( |
) | ||||||||||
| Balance, December 31, 2023 | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||
| Balance, March 31, 2024 | $ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||
| Shares issued | ||||||||||||||||||
| Share issuance costs | - | ( |
) | ( |
) | |||||||||||||
| Warrants issued | ||||||||||||||||||
| Warrant issuance costs | ( |
) | ( |
) | ||||||||||||||
| Fair value of stock options forfeited | ( |
) | - | |||||||||||||||
| Share based payments | ||||||||||||||||||
| Cumulative translation reserve | ||||||||||||||||||
| Net loss for the period | - | - | - | - | ( |
) | ( |
) | ||||||||||
| Balance, December 31, 2024 | $ | $ | $ | $ | ( |
) | $ | |||||||||||
(The accompanying notes are an integral part of these consolidated condensed interim financial statements)
Page 5 of 23
GREENPOWER MOTOR COMPANY INC.
Consolidated Condensed Interim Statements of Cash Flows
For the Nine Months Ended December 31, 2024 and 2023
(Unaudited)
| December 31, | December 31, | |||||
| 2024 | 2023 | |||||
| Cash flows from (used in) operating activities | ||||||
| Loss for the period | ( |
) | ( |
) | ||
| Items not affecting cash | ||||||
| Allowance (recovery) for credit losses | ||||||
| Depreciation | ||||||
| Share-based payments | ||||||
| Accretion and accrued interest | ||||||
| Foreign exchange loss | ( |
) | ||||
| Impairment of finance lease receivable | ||||||
| Cash flow used in operating activities before changes in non-cash items | ( |
) | ( |
) | ||
| Changes in non-cash items: | ||||||
| Accounts receivable | ||||||
| Inventory | ||||||
| Prepaids and deposits | ( |
) | ( |
) | ||
| Finance lease receivables | ||||||
| Accounts payable and accrued liabilities | ( |
) | ||||
| Deferred revenue | ||||||
| Warranty liability | ||||||
| ( |
) | |||||
| Cash flows from (used in) investing activities | ||||||
| Purchase of property and equipment | ( |
) | ( |
) | ||
| Restricted deposit | ( |
) | ||||
| ( |
) | ( |
) | |||
| Cash flows from (used in) financing activities | ||||||
| Loans from / (repayments to) related parties | ( |
) | ||||
| Proceeds from (repayment of) line of credit | ( |
) | ||||
| Proceeds from term loan facility | ||||||
| Payments on lease liabilities | ( |
) | ( |
) | ||
| Promissory note receivable | ||||||
| Repayment of other liabilities | ( |
) | ( |
) | ||
| Proceeds from issuance of common shares and warrants | ||||||
| Equity offering costs | ( |
) | ( |
) | ||
| Proceeds from exercise of stock options | ||||||
| Term loan | ( |
) | ||||
| Foreign exchange on cash | ( |
) | ||||
| Net (decrease) increase in cash | ( |
) | ||||
| Cash, beginning of period | ||||||
| Cash, end of period | $ | $ |
(The accompanying notes are an integral part of these consolidated condensed interim financial statements)
Page 6 of 23
|
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
1. Nature and Continuance of Operations and Going Concern
GreenPower Motor Company Inc. ("GreenPower" or the "Company") was incorporated in the Province of British Columbia on September 18, 2007. The Company is a manufacturer and distributor of purpose-built, all-electric, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector.
The corporate office is located at Suite 240 - 209 Carrall St., Vancouver, Canada.
These consolidated condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the IASB. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with our audited financial statements for the year ended March 31, 2024.
The Company's continuing operations are dependent upon its ability to raise capital and generate cash flows. As at December 31, 2024, the Company had a cash balance of $
These consolidated condensed interim financial statements were approved by the Company's Audit Committee, as delegated by the Board of Directors, on February 14, 2025.
2. Material Accounting Policies
Basis of presentation
GreenPower has applied the same accounting policies and methods of computation in its Consolidated Condensed Interim Financial Statements as in the annual audited financial statements for the year ended March 31, 2024, except for the following which either did not apply to the prior year or are amendments which apply for the current fiscal year.
Page 7 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
2. Material Accounting Policies (Continued)
Adoption of accounting standards
Certain new accounting standards have been published by the IASB that are effective for annual reporting periods beginning on or after January 1, 2024, as follows:
Amendments to these standards did not cause a change to the Company's financial statements.
Future accounting pronouncements
Certain new accounting standards and interpretations have been published by the IASB that are mandatory for the annual period beginning April 1, 2025. The Company has reviewed new and revised accounting pronouncements that have been issued but are not yet effective. The Company has not early adopted any of these standards and is currently evaluating the impact, if any, that these standards might have on its consolidated condensed interim financial statements.
3. Cash
As at December 31, 2024 the Company has a cash balance of $
4. Accounts Receivable
As at December 31, 2024, the Company had accounts receivable of $
The Company has evaluated the carrying value of accounts receivable as at December 31, 2024 in accordance with IFRS 9 and has determined that an allowance against accounts receivable of $
5. Finance Lease Receivable
Greenpower's wholly owned subsidiaries San Joaquin Valley Equipment Leasing Inc. and 0939181 BC Ltd. lease vehicles to several customers, and as at December 31, 2024, the Company had a total of 3 (March 31, 2024 - 8) vehicles on lease that were determined to be finance leases and the Company had a total of 3 (March 31, 2024 - 4) vehicles on lease that were determined to be operating leases. Between March 31, 2024 and June 30, 2024, 5 vehicles previously under finance lease and 1 vehicle previously on operating lease were repossessed, and the finance leases were de-recognized, and the vehicles were transferred to inventory.
Page 8 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
5. Finance Lease Receivable - Continued
As at December 31, 2023 the Company recognized an impairment of $
As at December 31, 2024, the remaining payments to be received on Finance Lease Receivables are as follows:
| 31-Dec-24 | |||
| Year 1 | $ | ||
| Year 2 | $ | ||
| Year 3 | $ | ||
| Year 4 | $ | ||
| Year 5 | $ | ||
| less: amount representing interest income | $ | ( |
) |
| Finance Lease Receivable | $ | ||
| Current Portion of Finance Lease Receivable | $ | ||
| Long Term Portion of Finance Lease Receivable | $ |
6. Inventory
The following is a listing of inventory as at December 31, 2024 and March 31, 2024:
| December 31, 2024 | March 31, 2024 | |||||
| Parts | $ | $ | ||||
| Work in Process | ||||||
| Finished Goods | ||||||
| Total | $ | $ |
The Company's finished goods inventory is primarily comprised of EV Stars, EV Star Cab and Chassis, BEAST Type D school buses, and Nano BEAST Type A school buses. During the three months ended December 31, 2024, $
7. Right of Use Assets and Lease Liabilities
The Company has recorded Right of Use Assets and Lease Liabilities in its consolidated interim statement of financial position for lease agreements that the Company has entered into that expire in more than one year at the inception of the leases. The right of use assets have a carrying value at December 31, 2024 of $
Page 9 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
7. Right of Use Assets and Lease Liabilities (Continued)
Condensed consolidated Statement of Financial Position as lease liabilities. The value of the right of use assets is determined at lease inception and includes the capitalized lease liabilities, incorporate upfront costs incurred and incentives received, and the value is depreciated over the term of the lease. For the three months ended December 31, 2024 the Company incurred interest expense of $
Subsequent to the end of the quarter ended December 31, 2024, GreenPower entered into a lease for a 72,056 square foot property in Riverside, CA where it intends to consolidate its California operations. The lease has a commencement date of January 1, 2025, a termination date of December 31, 2029, and monthly lease payments of $
GreenPower entered into a contract of lease-purchase with the South Charleston Development Authority (the "lessor") for a property located in South Charleston, West Virginia during the year ended March 31, 2023. The terms of the lease required no cash up front and monthly lease payments started May 1, 2023. GreenPower is eligible for up to $
The following table summarizes changes in Right of Use Assets between March 31, 2024 and December 31, 2024:
| Right of Use Assets, March 31, 2024 | $ | ||
| Depreciation | (557,167 | ) | |
| Change from lease modification | ( |
) | |
| Right of Use Assets, December 31, 2024 | $ |
Page 10 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
7. Right of use assets and lease liabilities (Continued)
The following table summarizes changes in Right of Use Assets between March 31, 2023 and March 31, 2024:
| Right of Use Assets, March 31, 2023 | $ | ||
| Depreciation | ( |
) | |
| Transfer to deposit | ( |
) | |
| Additions during the period | |||
| Right of Use Assets, March 31, 2024 | $ |
The following table shows the remaining undiscounted payments on lease liabilities, interest on lease liabilities and the carrying value of lease liabilities as at December 31, 2024.
| 1 year | $ | ||
| thereafter | $ | ||
| less amount representing interest expense | $ | ( |
) |
| Lease liability | $ | ||
| Current Portion of Lease Liabilities | $ | ||
| Long Term Portion of Lease Liabilities | $ |
Page 11 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
8. Property and Equipment
The following is a summary of changes in Property and Equipment for the nine months ended December 31, 2024:
| Property and Equipment, March 31, 2024 | $ | ||
| plus: purchases | |||
| less: transferred to inventory | ( |
) | |
| less: depreciation | ( |
) | |
| plus: foreign exchange translation | ( |
) | |
| Property and Equipment, June 30, 2024 | $ |
The following is a summary of changes in Property and Equipment for the twelve months ended March 31, 2024:
| Property and Equipment, March 31, 2023 | $ | ||
| plus: purchases | |||
| plus: transfers from inventory | |||
| less: depreciation | ( |
) | |
| plus: foreign exchange translation | ( |
) | |
| Property and Equipment, March 31, 2024 | $ |
9. Restricted deposit
The Company has pledged a $
10. Line of Credit
The Company's primary bank account denominated in US dollars is linked to its Line of Credit such that funds deposited to the bank account reduce the outstanding balance on the Line of Credit. As at December 31, 2024 the Company's Line of Credit had a credit limit of up to $
Page 12 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
10. Line of Credit (Continued)
The Line of Credit is secured by a general floating charge on the Company's assets and the assets of one of its subsidiaries, and one of the Company's subsidiaries has provided a corporate guarantee. Two directors of the Company have provided personal guarantees for a total of $
11. Term loan facility
During February 2024, the Company entered into a $
The term loan facility has two financial covenants. The first covenant is reported quarterly, and is to maintain a current ratio, defined as current assets over current liabilities, of greater than
As at December 31, 2024 the balance outstanding on the term loan facility, including fees and accrued interest, was $
12. Share Capital
Authorized
Unlimited number of common shares without par value
Unlimited number of preferred shares without par value
Page 13 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
12. Share Capital (Continued)
Issued
During October 2024, the Company issued
During May 2024, the Company issued a total of
During the year ended March 31, 2024, the Company issued a total of
At the Market Offering
In September 2022, the Company filed a prospectus supplement to its short form base shelf prospectus, pursuant to which the Company may, at its discretion and from time to time, sell common shares of the Company for aggregate gross proceeds of up to US$
The sale of common shares under the prospectus supplement was made through ATM distributions on the NASDAQ stock exchange. During the year ended March 31, 2024, the Company sold
The Company incurred approximately $
Page 14 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
13. Stock Options
The Company has two incentive stock option plans whereby it grants options to directors, officers, employees, and consultants of the Company, the 2023 Equity Incentive Plan (the "2023 Plan") which was adopted in order to grant awards to people in the United States, and the 2022 Equity Incentive Plan (the "2022 Plan").
2023 Plan
Effective February 21, 2023, GreenPower adopted the 2023 Plan which was approved by shareholders at our AGM on March 28, 2023 in order to grant stock options or non-stock option awards to people in the United States. Under the 2023 Plan GreenPower can issue stock options that are considered incentive stock options, which are stock options that qualify for certain favorable tax treatment under U.S. tax laws. Nonqualified stock options are stock options that are not incentive stock options. Non-stock option awards mean a right granted to an award recipient under the 2023 Plan, which may include the grant of stock appreciation rights, restricted awards or other equity-based awards.
2022 Plan
Effective April 19, 2022 GreenPower adopted the 2022 Equity Incentive Plan (the "2022 Plan"), which was further ratified and re-approved by shareholders at our AGM on March 27, 2024, and which replaced the 2019 Plan. Under the 2022 Plan the Company can grant equity-based incentive awards in the form of stock options ("Options"), restricted share units ("RSUs"), performance share units ("PSUs") and deferred share units ("DSUs"). RSU's, DSU's and PSU's are collectively referred to as "Performance Based Awards". The 2022 Plan is a Rolling Plan for Options and a fixed-plan for Performance-Based Awards such that the aggregate number of Shares that: (i) may be issued upon the exercise or settlement of Options granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements), shall not exceed 10% of the Company's issued and outstanding Shares from time to time, and (ii) may be issued in respect of Performance-Based Awards granted under the 2022 Plan (and all of the Company's other Security-Based Compensation Arrangements) shall not exceed
Stock Option Plans from Prior Periods
On May 14, 2019, the Company replaced the 2016 Plan with a Rolling Stock Option Plan (the "2019 Plan"). Under the terms of the 2019 Plan, the aggregate number of Options that can be granted under the 2019 Plan cannot exceed ten (10%) of the total number of issued and outstanding Shares, calculated on a non-diluted basis. The exercise price of options granted under the 2019 Plan may not be less than the minimum prevailing price permitted by the TSXV policies with a maximum term of 10 years. On March 9, 2016, the shareholders approved the previous stock option plan which initially allowed for the issuance of up to
Page 15 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
13. Stock Options (Continued)
which was subsequently further increased to allow up to
The Company had the following incentive stock options granted under the 2022 Plan, the 2019 Plan, and 2016 Plan that are issued and outstanding as at December 31, 2024:
| Exercise | Balance | Forfeited | Balance | ||||||||||||||||
| Expiry Date | Price | March 31, 2024 | Granted | Exercised | or Expired | December 31, 2024 | |||||||||||||
| January 30, 2025 | CDN | $ | ( |
) | |||||||||||||||
| February 11, 2025 | CDN | $ | |||||||||||||||||
| July 3, 2025 | CDN | $ | ( |
) | |||||||||||||||
| November 19, 2025 | US | $ | |||||||||||||||||
| December 4, 2025 | US | $ | |||||||||||||||||
| May 18, 2026 | CDN | $ | ( |
) | |||||||||||||||
| December 10, 2026 | CDN | $ | ( |
) | |||||||||||||||
| July 4, 2027 | CDN | $ | ( |
) | |||||||||||||||
| November 2, 2027 | US | $ | ( |
) | |||||||||||||||
| February 14, 2028 | CDN | $ | ( |
) | |||||||||||||||
| March 27, 2029 | CDN | $ | ( |
) | |||||||||||||||
| June 28, 2029 | CDN | $ | |||||||||||||||||
| Total outstanding | ( |
) | |||||||||||||||||
| Total exercisable | |||||||||||||||||||
| Weighted Average | |||||||||||||||||||
| Exercise Price (CDN$) | $ | $ | $ | $ | $ | ||||||||||||||
| Weighted Average Remaining Life | |||||||||||||||||||
As at December 31, 2024, there were
Page 16 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
13. Stock options (Continued)
During the nine months ended December 31, 2024 the Company incurred share-based compensation expense with a measured fair value of $
Subsequent to the end of the quarter, between January 1, 2025 and February 11, 2025,
14. Deferred Revenue
The Company recorded deferred revenue of $
| Three months ended, | Twelve months ended, | |||||
| December 31, 2024 | March 31, 2024 | |||||
| Deferred Revenue, beginning of period | $ | $ | ||||
| Additions to deferred revenue during the period | ||||||
| Deposits returned | ( |
) | ( |
) | ||
| Revenue recognized from deferred revenue during the period | ( |
) | ( |
) | ||
| Deferred Revenue, end of period | $ | $ | ||||
| Current portion | $ | $ | ||||
| Long term portion | ||||||
| $ | $ |
15. Financial Instruments
The Company's financial instruments consist of cash, accounts receivable, promissory note receivable, finance lease receivables, restricted deposit, line of credit, loans payable to related parties, term loan, accounts payable and accrued liabilities, other liabilities and lease liabilities.
Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities;
Level 2: Inputs other than quoted prices that are observable for the asset or liabilities either directly or indirectly; and
Level 3: Inputs that are not based on observable market data
The fair value of the Company's financial instruments approximates their carrying value, unless otherwise noted.
Page 17 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
15. Financial Instruments (Continued)
The Company has exposure to the following financial instrument-related risks.
Credit risk
The Company's exposure to credit risk is on its cash, accounts receivable, finance lease receivable and restricted deposit. The maximum exposure to credit risk is their carrying amounts in the consolidated statement of Financial Position.
The Company's cash is comprised of cash bank balances. The Company's restricted deposit is an interest-bearing term deposit. Both cash and the restricted deposit are held in major financial institutions in Canada and the United States with a high credit quality and therefore the Company is exposed to minimal credit risk on these assets. The Company assesses the credit risk of its accounts receivable and finance lease receivables at each reporting period end and on an annual basis. As at December 31, 2024,
Liquidity risk
The Company tries to ensure that there is sufficient capital in order to meet short-term business requirements, after taking into account the Company's cash balances and available liquidity on the Company's operating line of credit and on the Company's revolving term loan facility. The Company's cash is invested in bank accounts at major financial institutions in Canada and the United States and is available on demand. The continuation of the Company as a going concern is dependent on future cash flows from operations including the successful sale and manufacture of electric vehicles to achieve a profitable level of operations and obtaining necessary financing to fund ongoing operations. The Company's ability to achieve its business objectives is subject to material uncertainty which casts substantial doubt upon the Company's ability to continue as a going concern (Note 1). The Company will continue to rely on additional financings to further its operations and meet its capital requirements.
Market risks
Market risk is the risk of loss that may arise from changes in market factors such as interest rates and foreign exchange. The Company is exposed to interest rate risk with respect to its Line of Credit (Note 10) and its term loan facility (Note 11). The Company is exposed to foreign exchange risk as it conducts business in both the United States and Canada. Management monitors its foreign currency balances, but the Company does not engage in any hedging activities to reduce its foreign currency risk.
Page 18 of 23
GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
15. Financial Instruments (Continued)
At December 31, 2024, the Company was exposed to currency risk through the following financial assets and liabilities in Canadian Dollars:
| CAD | |||
| Cash | $ | ||
| Accounts Receivable | $ | ||
| Prepaids and deposits | $ | ||
| Finance Lease Receivable | $ | ||
| Accounts Payable and Accrued Liabilities | $ | ||
| Related Party Loan | $ |
The CDN/USD exchange rate as at December 31, 2024 was $
A summary of compensation and other amounts paid to directors, officers and key management personnel is as follows:
| For the Three Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| Salaries and Benefits (1) | $ | $ | ||||
| Consulting fees (2) | ||||||
| Non-cash Options Vested (3) | ||||||
| Total | $ | $ | ||||
| For the Nine Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| Salaries and Benefits (1) | $ | $ | ||||
| Consulting fees (2) | $ | |||||
| Non-cash Options Vested (3) | $ | |||||
| Total | $ | $ | ||||
1) Salaries and benefits incurred with directors and officers are included in Salaries and administration on the Consolidated Condensed Interim Statements of Operations and Comprehensive Loss.
2) Consulting fees included in Salaries and administration on the Consolidated Condensed Interim Statements of Operations and Comprehensive Loss are paid to the Chairman and CEO for management consulting services, as well as Director's Fees paid to GreenPower's four independent directors.
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GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
16. Related Party Transactions (Continued)
3) Amounts recognized for related party stock-based compensation are included in Share-based payments on the Consolidated Condensed Interim Statements of Operations and Comprehensive Loss.
Accounts payable and accrued liabilities at December 31, 2024 included $
As at December 31, 2024 the Company has loans totaling CAD$
Loans totaling CAD$
Subsequent to the end of the quarter, on February 5, 2025, the Company received loans of $
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GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
17. Segmented information and supplemental cash flow disclosure
The Company operates in one reportable operating segment, being the manufacture and distribution of all-electric medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector.
The Company's revenues allocated by geography for the three months ended December 31, 2024 and 2023 are as follows:
| For the Three Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| United States of America | $ | $ | ||||
| Canada | ||||||
| Total | $ | $ | ||||
The Company's revenues allocated by geography for the nine months ended December 31, 2024 and 2023 are as follows:
| For the Nine Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| United States of America | $ | $ | ||||
| Canada | $ | $ | ||||
| Total | $ | $ | ||||
As at December 31, 2024 and March 31, 2024, over 90% of the Company's property and equipment are located in the United States.
The Company's cash payments of interest and taxes during the nine months ended December 31, 2024 and 2023 are as follows:
| For the Nine Months Ended | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| Interest paid | $ | $ | ||||
| Taxes paid | $ | $ | ||||
18. Warranty Liability
The Company generally provides its customers with a base warranty on its vehicles including those covering brake systems, lower-level components, fleet defect provisions and battery-related components. The majority of warranties cover periods of five years, with some variation depending on the contract. Management estimates the related provision for future warranty claims based on historical warranty claim information as well as recent trends that might suggest past cost information may differ from future claims. This assessment relies on estimates and assumptions about expenditures on future warranty claims.
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GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
18. Warranty Liability (Continued)
Actual warranty disbursements are inherently uncertain, and differences may impact cash expenditures on these claims. It is expected that the Company will incur approximately $
The following table summarizes changes in the warranty liability over the nine months ended December 31, 2024 and the year ended March 31, 2024:
| Nine months ended | Year ended | |||||
| December 31, 2024 | March 31, 2024 | |||||
| Opening balance | $ | $ | ||||
| Warranty additions | ||||||
| Warranty disbursements | ( |
) | ( |
) | ||
| Warranty expiry | ( |
) | ||||
| Foreign exchange translation | ( |
) | ( |
) | ||
| Total | $ | $ | ||||
| Current portion | $ | $ | ||||
| Long term portion | ||||||
| Total | $ | $ |
19. Contingent Liability
On July 7, 2022 GreenPower entered into an asset purchase agreement with Lion Truck Body Inc., a truck body manufacturer located in Torrance, CA, under which Greenpower purchased all of the assets of the business through its wholly owned subsidiary, Lion Truck Body Incorporated.
The acquisition included that GreenPower would assume a term loan from the seller subject to the seller obtaining the required consents to allow for the assumption. The term loan had a principal outstanding of approximately $
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GREENPOWER MOTOR COMPANY INC. Notes to the Unaudited Consolidated Condensed Interim Financial Statements for the Three and Nine Months Ended December 31, 2024 and 2023 |
20. Litigation and Legal Matters
The Company filed a civil claim against the prior CEO and Director of the Company in the Province of British Columbia in 2019, and the prior CEO and Director of the Company has filed a response with a counterclaim for wrongful dismissal in the Province of British Columbia. The prior CEO and Director of the Company also filed a similar claim in the state of California in regards to this matter, and this claim has been stayed pending the outcome of the claim in British Columbia. There has not been a resolution on the British Columbia claim or counterclaim, or the California claim as at December 31, 2024.
In addition, a company owned and controlled by a former employee who provided services to a subsidiary company of GreenPower until August 2013 filed a claim for breach of confidence against GreenPower in July 2020, and this claim has not been resolved as at December 31,, 2024.
During April 2023 the Company repossessed 28 EV Stars and 10 EV Star CC's after a lease termination due to non-payment. During May 2023 this customer filed a claim in the state of California against the Company and a subsidiary, and this matter has not been resolved as at December 31, 2024. The Company has not booked a provision for the claims or the counterclaim as it does not believe there is a remote or estimable material financial impact as at December 31, 2024.
21. Subsequent Events
Subsequent to the end of the quarter GreenPower entered into a lease for a 72,056 square foot property in Riverside, CA where it intends to consolidate its California operations. The lease has a commencement date of January 1, 2025, a termination date of December 31, 2029, and monthly lease payments of $
Subsequent to the end of the quarter, on February 5, 2025, the Company received loans of $
Subsequent to the end of the quarter, between January 1, 2025 and February 11, 2025,
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