Tue, May 20, 8:23 PM (55 days ago)
**Envirotech Vehicles, Inc. (EVTV) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $590,567, down from $810,490 in Q1 2024, primarily due to less favorable market conditions in the electric vehicle segment. - **Profit Margins:** The company reported a net loss of $14,036,381 for Q1 2025, compared to a net loss of $4,532,363 in Q1 2024. This includes a non-cash goodwill impairment charge of $10,103,048 and an unrealized loss on financial instruments of $283,793. - **Cash Flow:** Net cash used in operating activities was $4,217,480 for Q1 2025, primarily due to a net loss and changes in operating assets and liabilities. Financing activities provided $2,664,411, mainly from the issuance of convertible notes. **Segment Performance:** - **Electric Vehicles:** Sales were $373,130, consisting of two class 4 trucks and one cargo van. - **Medical Supplies:** Sales were $217,437, consisting of the delivery of medical gowns to a related party. - **Drones:** No sales reported for Q1 2025. **Trends and Uncertainties:** - The company is expanding its business portfolio with new segments in medical supplies and drones. - There is a dependence on external financing and government subsidies for vehicle purchases. - The company is investing in growth, which may adversely affect short-term results but is expected to contribute to long-term success. **Future Operations:** - The company is considering a reverse stock split to regain compliance with Nasdaq's minimum bid price requirement. - Plans include expanding U.S. manufacturing, strengthening fleet services, and supporting the growing demand for commercial electric vehicles. - The company is evaluating subsequent events, including a consulting and manufacturing agreement for a heavy lift drone and a potential acquisition of a marine craft manufacturer. **Risk Factors:** - The company faces risks related to market conditions, regulatory compliance, competition, and the availability of financing and government incentives. - There are uncertainties related to the successful execution of the business plan, integration of acquisitions, and scaling of operations. **Conclusion:** Envirotech Vehicles, Inc. is navigating a challenging market while expanding its product offerings and operational capabilities. The company's financial performance reflects significant investments in growth and strategic initiatives aimed at long-term success. However, it faces substantial risks and uncertainties that could impact its future operations and financial health.