Electrovaya Reports Financial Results for Fiscal 2017

TORONTO, ONTARIO--(Marketwired - Dec. 29, 2017) - Electrovaya Inc. ("Electrovaya" or the "Company") (TSX:EFL) (OTCQX:EFLVF) today reported its financial results for the fiscal year ended September 30, 2017 ("FY 2017"). All numbers are in US dollars unless otherwise noted.

The past fiscal year was a pivotal one for Electrovaya, as the Company launched its lithium ion battery product line for the global forklift market. Following a long pre-launch phase, Electrovaya has now received initial and follow-up purchase orders from leading Fortune 500 companies. These firms conducted extensive testing of the battery before placing orders. During the year, Electrovaya also continued to advance its work with OEM partners, which are developing complex new products utilizing the Company's lithium ion batteries. These products have long development cycles.

FY 2017 Financial Highlights:

• FY 2017 revenue was $8.8 million (Cdn $11.3 million), compared to $19.5 million (Cdn $25.1 million) for the fiscal year ended September 30, 2016 ("FY 2016").
• The net loss for FY 2017 was $21.2 million (Cdn $27.2 million), compared to $8.8 million (Cdn $11.3 million) for FY 2016. The increase was primarily attributable to:
  • Lower revenue, which was partially offset by a $0.8 million (Cdn $1 million) reduction in direct manufacturing costs;
  • A $2.2 million (Cdn $2.8 million) increase in finance costs, primarily due to costs associated with the Cdn $15 million convertible debenture issued in March 2017;
• Inventory as at September 30, 2017 was $14.2 million (Cdn $18.2 million), compared to $18.2 million (Cdn $23.4 million) as at September 30, 2016, as stocks were drawn down during FY 2017 for order fulfilment.

Recent Business Highlights:

Electrovaya received both initial and follow-up purchase orders from Fortune 500 customers for its lithium ion forklift battery systems. Most significantly, the Company announced a Cdn$4.3 million order from Walmart Canada on September 18, 2017. Other potential customers in the Material Handling Vehicles (MHV) sector continue to test the Company's forklift products.

The Company continued its product and component sales to integrators and OEMs, which develop products for the electromobility and energy storage market.

Electrovaya is developing multiple sales channels, with sales through equipment integrators and OEMs, as well as direct sales of systems to the final user.