Electrovaya, Inc. Q1 FY2025 earnings call

• Secured a $51 million direct loan approval from the Export-Import Bank of the United States under the Make More in America initiative for expanding lithium ion cell manufacturing in Jamestown, New York.
• Successfully completed an equity raise with gross proceeds of about $12.8 million, strengthening the balance sheet.
• Accelerated battery system assembly plans at the Jamestown facility, with plans to commence commercial operations in April 2025.
• Saw good sales momentum from material handling OEM partners, including a leasing program with an OEM showing high interest.
• Made progress in solid state developments, with cell cycling over 200 cycles and proof of concept for scalable manufacturing of solid state separators.

For Q1 2025, Electrovaya reported revenue of $11.2 million, down from $12.1 million in Q1 2024 due to delivery timing. Gross margin was 30.5%, an increase from the prior quarter's 29.2%. Adjusted EBITDA was $0.5 million, flat year-over-year. Net loss was $0.4 million. The company generated positive cash flow from operations of $1 million, with ending net working capital at $12.6 million as of December 31, 2024.

• Maintained 2025 revenue guidance with ramp up beginning Q2 2025.
• Anticipates closing loan documentation with EXIM and a leading North American bank for Jamestown expansion and working capital improvement this quarter.
• Expects revenue to exceed $60 million in 2025, with potential for upside in various business segments.

• Forward-looking statements involve risks and uncertainties where actual results may differ materially from expectations. Factors include market trends, competitive position, and potential impacts from political or policy changes.

Q: Sounds like existing facilities are becoming more of an opportunity for at least one customer. Do you expect other customers to follow suit?

A: Yes, existing facilities represent a larger opportunity size. Customers see benefits in new facilities and then expand to existing infrastructure, expecting more of this in the coming years.

Q: Any indication that the current U.S. administration's policies will potentially lead to delays in orders?

A: Haven't seen delays; some customers are trying to get orders in sooner in fear of potential price increases.

Q: Can you talk about steps left to finalize the EXIM Bank loan? And level of confidence in closing against current political backdrop?

A: At the stage of working out loan documents with two banks (EXIM and a North American bank). Confident as the project fits with the new administration's goals of domestic manufacturing.

Q: Update on new markets where important deliveries are expected this year?

A: Opportunities in robotics, mining, construction, defense, etc., with seeding opportunities and repeat orders from some partners.

Q: On solid state batteries, is it in customers' hands or still in the lab?

A: Still in the lab with ongoing optimization; refrained from sending to customers yet.

Q: Jamestown capacity and ramp operations plan?

A: Roughly $200 million capacity, starting battery system assembly in April 2025 and cell production in mid-2026.