Envirotech Vehicles, Inc. Q1 FY2022 earnings call

• Achieved milestones in Q1 including increased revenues, new partnership agreements, and progress with U.S. manufacturing facility. • First-quarter revenues up due to sale of 12 vehicles. • Higher sightseeing activity with state incentive programs. • Placed additional orders for 100 Classified cabin chassis trucks and 100 Class 4 vans, with deliveries starting in late Q2/early Q3. • Successfully completed first phase of renovations in Osceola manufacturing facility, moving to next phase. • Favorable legislative incentives related to EV adoption providing opportunities for sales growth.

First-quarter revenues improved significantly to slightly more than $1.1 million, a 235% increase compared to the first quarter of 2021 ($470,793). Total net operating expenses for Q1 2022 increased by approximately $2.4 million compared to Q1 2021, with net losses in Q1 2022 being approximately $2.5 million vs. $659,000 in Q1 2021. As of March 31, 2022, the company had cash, cash equivalents, restricted cash, and marketable securities of approximately $9.1 million, total liabilities of approximately $961,000.

• Expect deliveries of ordered 100 Classified cabin chassis trucks and 100 Class 4 vans to begin in late Q2 and early Q3, continuing monthly through year-end. • Focused on driving sales growth in favorable EV adoption incentive environment. • Manufacturing facility in Osceola positions the company as one of few U.S. EV manufacturers with robust transport options and workforce.

• Dispute with GPV, with Green Power reaching out to settle but 11th-hour complications; legal case filed by GPV which is a mirrored image of a previous case in Canada. • Supply chain issues affecting the entire industry. • Legal uncertainties related to ongoing litigation.

Q: Could you provide more color on the end customers for the vehicles sold during the quarter?

A: One vehicle went to a municipal airport authority in Arkansas, several to a California upholstery company, several to a national solar company in Utah, and some to a local New Jersey public library.

Q: Has increased fuel prices impacted interest in vehicles and opportunities in the pipeline?

A: Yes, increased fuel prices have led to more interest as operating costs of diesel vehicles exceed price differences with electric vehicles, and more people are inquiring about the company's vehicles.

Q: Any update on the litigation with GPV?

A: Green Power reached out to settle earlier this year but had last-minute non-negotiables; defense filed, and both sides are talking with hope for settlement though ego may be an issue currently.

Q: Update on reverse split and financing?

A: Reverse split is concurrent with financing, and the company has received approval for up to $250 million in industrial bonds for expansion; they are conservative in raising money, have low burn rates, and are excited about being fully homologated and having vehicles on the road.

Q: Progress on right-hand drive vehicles and potential game-changing opportunities?

A: The company is the only in North America with homologated right-hand drive vehicles, which opens doors to European markets and potential opportunities like with the U.S. Postal Service.

Q: Update on ProGreens and plant utilization?

A: Work underway with ProGreens, intention to start battery manufacturing in Osceola plant, in discussions with a solar company for solar panel manufacturing, and unveiling a school bus later this fall to target fleet markets with infrastructure and renewable energy solutions.