Electrovaya Reports Q3 FY2021 Financial Results

TORONTO, ON / ACCESSWIRE / August 9, 2021 / Electrovaya Inc. ("Electrovaya" or the "Company") (TSX:EFL)(OTCQB:EFLVF), a lithium ion battery manufacturer with industry-leading performance and substantial intellectual property, today reported its financial results for the fiscal third quarter and nine months ended June 30, 2021 ("Q3 FY2021" and "YTD FY2021", respectively). All dollar amounts are in U.S. dollars unless otherwise noted.

Foto: Accesswire

Financial Highlights:

• Revenue for Q3 FY2021 was $1.9 million (C$2.4 million), compared to $4.8 million (C$6.0 million) in the fiscal third quarter ended June 30, 2020 ("Q3 FY2020"). Management believes that the year-over-year decline was primarily due to a reduced order volume resulting from a transition to the OEM Strategic Supply Agreement, which was signed in December 2020. This agreement brought a new corporate sales team focused on large corporations, and management believes the sales cycle is relatively long for these customers. Continued disruptions to the supply chain caused by the COVID-19-pandemic, as well as component shortages, also impacted the Company.
• Revenue for YTD FY2021 was $7.4 million (C$9.3 million), compared to $7.6 million (C$9.5 million) for the nine months ended June 30, 2020 ("YTD FY2020").
• It appears that the delays discussed above are being mitigated, as the Company received a number of significant purchase orders late in Q3 FY2021 and early in the fiscal fourth quarter, as noted in the business highlights below. The majority of the new orders were generated through the OEM sales channel, but the Company also received a significant new order through its direct sales channel. Orders were received from both new and repeat customers.
• As at June 30, 2021, the Company had $0.9 million (C$1.1 million) of cash and had drawn $2.8 million (C$3.5 million) from its $5.6 million (C$7 million) working capital facility, leaving a further $2.8 million (C$3.5 million) undrawn. The Company also had $2.5 million (C$3.1 million) of accounts receivable and $4.9 million (C$6.1 million) of inventory.
• The Company's financial position improved during YTD FY2021. As at June 30, 2021, current assets increased by 40% compared to the end of the 2020 fiscal year, while current liabilities were reduced by 12% and the equity deficiency was reduced by 61%.

Business Highlights: