Envirotech Vehicles, Inc. Q2 FY2022 earnings call

• Second quarter was a breakout quarter with significant uptick in vehicle deliveries, driving revenue growth. Delivered 21 vehicles in Q2 2022 vs 2 vehicles in Q2 2021, and 33 vehicles to date in 2022.
• Ordered 100 Class 5 cab and chassis trucks and 100 Class 4 vans with deliveries beginning in Q3, anticipating continued deliveries through end of year at new Osceola facility.
• Strong order volume for electric trucks and vans,受益于州激励计划如新泽西州零排放激励计划，且《通胀削减法案》通过将推动清洁能源车队转型。
• Osceola facility renovations ongoing, partnership with Arkansas Economic Development Commission for $27 million economic incentive package. Licensed vehicle manufacturer in Arkansas.
• Expanded sales presence by adding DaVinci Innovations as first commercial electric vehicle dealer.
• Uplisted to NASDAQ Capital Market in early July 2022.

For the three months ended June 30, 2022, sales were $2,087,700 compared to $188,266 in the same period in 2021. For the six months ended June 30, 2022, sales were $3,196,200 compared to $659,059 in the same prior year period. Total net operating expenses for the second quarter of 2022 increased by approximately $902,000 compared to the second quarter of 2021. Net loss in the second quarter of 2022 was approximately $1 million or a loss of $0.07 per basic and diluted share compared to a net loss of approximately $900,000 or a loss of $0.06 per basic and diluted share in the second quarter of 2021. For the first half of 2022, net loss was approximately $3.5 million or a loss of $0.24 per basic and diluted share compared to a net loss of $1.6 million or a loss of $0.19 per basic and diluted share in the first half of 2021.

Phillip Oldridge stated the company is on target to double sales from the second quarter in the third quarter, expecting to deliver 40+ units in Q3 and continuing strong deal flow into Q4.

• Forward-looking statements are subject to risks and uncertainties including changes in operating performance, technical and economic factors, as disclosed in Envirotech's SEC filings.
• Ongoing green power lawsuit not yet settled.

Q: Can you describe what's in inventory in the $5.6 million and how the $4.5 million in deposits can be turned into revenue?

A: Phillip Oldridge said there are about 60 Class 3/Class 4 vans completed and ready, ~25 inbound trucks. Deposits for inbound Class 5/Class 6 trucks and 5 school buses are included, with deliveries scheduled for Q4 and end of year respectively.

Q: How should we think of the delivery cadence going forward, do you expect to continue to increase deliveries each quarter?

A: Phillip Oldridge stated the company is on target to double sales from Q2 in Q3, expecting 40+ units in Q3 and strong deal flow continuing into Q4.

Q: How should we think of sales via DaVinci and financing?

A: Phillip Oldridge explained sales via DaVinci involve both their own sales and Envirotech's sales through them, and a financing is expected in Q3/Q4 as the company has strong quarters and managed cash flow well.

Q: Can you comment on components sourcing and factory timeline?

A: Phillip Oldridge said most components now come from Taiwan and Malaysia, with plans to source more in North America. The Osceola facility roof replacement and renovations are underway, with full production expected in an 18-month window after roof and solar installation are completed