Envirotech Vehicles Reports First Quarter 2021 Results

Rhea-AI Summary

Envirotech Vehicles (ADOM) reported its Q1 2021 results, showcasing significant advancements in the zero-emission vehicle sector. Highlights include the acquisition of Envirotech Drive Systems, raising $16.3 million through a private placement, and securing agreements with TLC Truck & Equipment and Zero Nox for expanding distribution. Sales surged to approximately $471,000 from $87,000 YoY, with a net loss of $659,000. Cash reserves improved to $8.5 million. CEO Phillip Oldridge emphasized the opportunity in the growing electric vehicle market and upcoming government support for EV initiatives.

Positive

• Acquired Envirotech Drive Systems, enhancing product offerings.
• Raised $16.3 million in private placement funding.
• Sales increased 440% to approximately $471,000 YoY.
• Joined New Jersey's Zero Emission Incentive Program, aiming to tap into the East Coast market.

Negative

• Net loss increased to $659,000 from $97,000 YoY.
• Operating expenses surged by $485,000, primarily due to legal fees related to the merger.

CORONA, CA / ACCESSWIRE / May 24, 2021 / ADOMANI, Inc. (OTCQB:ADOM), DBA Envirotech Vehicles, a provider of new zero-emission purpose-built electric vehicles, today announced its results for the first quarter ended March 31, 2021.

Highlights and Recent Developments

• On March 15, 2021, Envirotech Vehicles completed its previously announced acquisition of Envirotech Drive Systems, Inc. ("EVTDS"), a supplier of zero-emission trucks, cargo vans, chassis and other commercial vehicles, in accordance with an Agreement and Plan of Merger, dated February 16, 2021, by and among the Company, EVTDS and EVT Acquisition Company, Inc., a wholly owned subsidiary of the Company ("Merger Sub"). As a result of such transaction, Merger Sub was merged with and into EVTDS, with EVTDS surviving as a wholly owned subsidiary of Envirotech Vehicles (the "Merger").

• On May 7, 2021 Envirotech Vehicles completed the second closing of its previously announced private placement, resulting in approximately $16.3 million of additional cash proceeds, net of offering costs. The offering was the second and final closing under a securities purchase agreement entered into on December 24, 2020 to raise gross proceeds of approximately $23 million.

• Delivered an upgraded Class 4 all-electric box truck to the Child Nutrition Services Department of the Pittsburg Unified School District in Contra Costa County, California, replacing the diesel truck that was previously being used by the district.

• Announced a Factory Authorized Representative ("FAR") agreement with TLC Truck & Equipment ("TLC"), allowing the truck dealership to promote, sell and service Envirotech products throughout the U.S. The FAR agreement establishes a physical presence for Envirotech Vehicles on the East Coast and requires TLC to buy at least one van and one Class 4 or Class 5 truck at commencement of the agreement.

• Received deposits toward the purchase of two EV Class 4 cab and chassis trucks with custom dump boxes from a San Francisco-based entrepreneur and clean environment advocate who is pioneering the use of an EV truck fleet to augment his business repurposing and recycling junk/metals/recyclables and demolition debris. The Company is in discussions with the entrepreneur for the purchase of up to 24 additional similarly equipped trucks.

• Announced the signing of a FAR agreement with Zero Nox, Inc., a California-based developer and provider of electric powertrain technology and its integration into EV vehicles, for the sale and service of Envirotech Vehicles' products throughout the U.S. ZeroNox is required to purchase at least one van and one Class 4 or Class 5 truck at commencement of the agreement.

• In April, we gave deposits for 200 additional vehicles to our supplier. We expect these vehicles to arrive in stages, beginning in late August, and expect that we will receive the entire 200 by the end of 2021.

• In May, we applied to be an approved vendor for New Jersey's Zero Emission Incentive Program. NJ ZIP is a $15 million voucher program that will fund 100 to 300 vouchers ranging in value from $25,000 to $100,000 for businesses and institutional organizations in the Camden and Newark areas looking to transition their fleets to zero emissions. The program places a strong emphasis on assisting minority-, women-, and veteran-owned businesses in communities disproportionately impacted by transportation emissions. The NJ ZIP program aligns with our Company's values and affords us the opportunity to expand our share of the East Coast Market. The program administrator has recently informed us that we will likely be approved within the next several days.

• Joined the "Premier Dealer Network" of ev Transportation Services Inc. ("evTS"). The network consists of a select group of distribution partners who have committed to distributing the evTs 2021 model year Firefly ESV electric vehicle.

• Added Ted Thordarson as Chief Operating Officer in March 2021 and continue to work with Gameday HR to bring in experienced people with the capabilities to support Envirotech Vehicles' growth.

• Recently received delivery of 10 additional trucks, expanding the Envirotech Vehicle fleet to approximately 26 trucks and vans.

Phillip Oldridge, CEO of Envirotech Vehicles, commented, "As we begin 2021, we remain focused on leveraging the growing market interest in the adoption of greener transportation options, and more specifically, the interest in our purpose built, customer- ready trucks and industrial fleet vehicles. During the first quarter we made solid progress with our efforts to expand our market presence, and recently announced two new factory authorized representative (FAR) agreements for the promotion, sale and service of our vehicles. Our FAR agreement with TLC Truck & Equipment provides us a larger geographic footprint in the U.S. by establishing Envirotech on the East Coast. Additionally, last week we announced a FAR agreement with ZeroNox, a California-based provider of electric powertrain technology, further strengthening our presence on the West Coast."

Mr. Oldridge continued, "We are building our product lines and ramping our fleet and operations to effectively position Envirotech Vehicles for the growing pipeline of opportunities that we're seeing. As a pioneer in the fleet EV sector, we are energized by the recently announced American Jobs Plan, which proposes approximately $174 billion for building electric vehicle infrastructure and calls for the support and advancement of electric vehicle use through the transition of the federal fleet to EVs built and supplied by American companies. With our industry-leading, customer-ready product line, Envirotech Vehicles is uniquely positioned to capitalize on these initiatives and we are already seeing tremendous interest from fleet truck operators seeking the environmental and economic benefits of converting to electric vehicles.

The EV space has been steadily gaining momentum, and we're optimistic that the heightened government focus and support of our industry will benefit our business. We are a longstanding provider of reliable, cost efficient electric vehicle offerings, and as we move forward we remain intently focused on bringing our portfolio of fleet vehicles to a broader and deeper audience of commercial, industrial and government customers," Mr. Oldridge concluded.

First Quarter 2021 Financial Results

As a result of the consummation of the Merger, the financial results of Envirotech Vehicles presented below reflect the consolidated results of operations of EVTDS and its subsidiaries for the entire three month period ending March 31, 2021, and include the consolidated results of operations of Envirotech Vehicles and its subsidiaries for the post-Merger period March 16, 2021 through March 31, 2021.

Sales were approximately $471,000 for the three months ended March 31, 2021, compared to $87,000 for the three months ended March 31, 2020. The sales increase was primarily related to the sale of five vehicles in the current year period compared to one vehicle sold in the prior year period.

Total net operating expenses for the first quarter of 2021 increased by approximately $485,000 compared to the first quarter of 2020, $388,000 of which related to legal and professional fees, of which approximately $274,000 related to the Merger.

Net loss in the first quarter of 2021 was approximately $659,000, compared to a net loss of approximately $97,000 in the first quarter of 2020.

As of March 31, 2021, the Company had cash and cash equivalents of approximately $8.5 million and debt of approximately $418,000, as compared to approximately $107,000 of cash and approximately $164,000 of debt as of March 31, 2020. Working capital at March 31, 2021 was approximately $8.8 million as compared to a working capital deficit of approximately $235,000 at March 31, 2020.

Conference Call Information

The Company will host a conference call today, Monday, May 24, 2021 at 4:30 pm ET to discuss its first quarter 2021 results.

To access the live webcast, please use the following link:
https://www.webcaster4.com/Webcast/Page/2214/41346

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time and use entry code 509126. International callers should dial (973) 528-0011 and use entry code 509126.

A replay of the teleconference will be available until June 7, 2021 and may be accessed by dialing (877) 481-4010 and using replay passcode 41346. International callers should dial (919) 882-2331 and use replay passcode 41346.

About Envirotech Vehicles

ADOMANI, Inc. (DBA 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.ADOMANIelectric.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 ADOMANI, Inc. (DBA Envirotech Vehicles) 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: jnesbett@imsinvestorrelations.com

Envirotech Vehicles

Michael K. Menerey, Chief Financial Officer
Telephone: (951) 407-9860 ext. 1205
Email: mike.m@ADOMANIelectric.com

SOURCE: ADOMANI, Inc. DBA Envirotech Vehicles

View source version on accesswire.com:
https://www.accesswire.com/648745/Envirotech-Vehicles-Reports-First-Quarter-2021-Results

FAQ

What were the financial results for ADOM in Q1 2021?

ADOM reported sales of approximately $471,000, a net loss of $659,000, and cash reserves of $8.5 million.

What major acquisitions did ADOM announce recently?

ADOM completed the acquisition of Envirotech Drive Systems on March 15, 2021.

What funding did ADOM secure in 2021?

ADOM raised approximately $16.3 million through a private placement in May 2021.

How does ADOM plan to expand its market presence?

ADOM plans to expand through new agreements with distributors like TLC Truck & Equipment and Zero Nox, and participation in incentive programs.

What initiatives is ADOM taking to capitalize on government support for electric vehicles?

ADOM is positioned to benefit from the American Jobs Plan, which supports electric vehicle infrastructure and manufacturing.