Electrovaya Inc. (“Electrovaya” or the “Company”) (TSX: EFL; OTCQB: EFLVF), a lithium-ion battery manufacturer with differentiated
intellectual property that allows heightened safety and improved longevity enabling industry leading performance, today reported its financial results for the fourth quarter and fiscal year ended September 30, 2021 (“Q4 FY2021” & “FY 2021”, respectively). All dollar amounts are in U.S. dollars unless otherwise noted.
Financial Highlights:
Business Highlights:
Positive Financial Outlook:
The Company anticipates revenue of approximately $27 million for the fiscal year ending September 30, 2022 (“FY 2022”), more than double the revenue total of $11.6 million in FY 2021. The revenue is anticipated to be generated from two primary sources: direct sales and sales through the Company’s OEM partner dealer network.
The revenue forecast takes into consideration the OEM Strategic Supply Agreement, which includes an exclusivity provision, pursuant to which the OEM must make annual purchases in the minimum amount of $15 million in order to maintain exclusivity. This annual period commences on January 1, 2022. While there is no assurance that the OEM will make more than $15 million of purchases in 2022, given the sales initiatives underway with the OEM, management anticipates achieving or even possibly exceeding this minimum purchase level and has accordingly included it in the revenue forecast of $27 million for FY 2022.
Impact of COVID-19 Pandemic:
Electrovaya is an essential business and has operated without major interruption during the COVID-19 pandemic to date. The Company’s customers include large global firms in industries such as grocery, logistics, and e-commerce that are continuing to provide critical services during
this difficult period. The crisis has highlighted Electrovaya’s important role in helping its customers execute mission-critical applications under highly challenging conditions. COVID-19 did disturb the Company’s supply chain from many of its global vendors, with resultant delays in delivery of the Company’s products to its customers and associated cost increases.
Electrovaya considers the health and safety of its employees and other stakeholders to be of the highest priority. To mitigate any potential spread of COVID-19, the Company has implemented a number of common-sense initiatives at its headquarters, including increased sanitization of frequently touched surfaces, use of masks, air purifiers, and social distancing guidelines, all of which somewhat reduce operational efficiency.
Selected Annual Financial Information for the Years ended September 30, 2021, 2020 and 2019
Results of Operations
(Expressed in thousands of U.S. dollars)
| Year Ended September 30, | ||||
| 2021 | 2020 | 2019 | ||
| Revenue | $ 11,584 | $ 14,525 | $ 4,891 | |
| Direct manufacturing costs | 7,660 | 9,592 | 2,949 | |
| Gross Margin | 3,924 | 4,933 | 1,942 | |
| GM% | 34% | 34% | 40% | |
| Expenses | ||||
| Research & development | 4,555 | 2,749 | 2,863 | |
| Government assistance | (871) | (273) | – | |
| Sales & marketing | 1,282 | 1,117 | 1,133 | |
| General & administrative | 2,649 | 1,710 | 1,620 | |
| Stock based compensation | 541 | 144 | 1,120 | |
| Finance Cost | 2,669 | 3,097 | 2,120 | |
| Patent & trademark expenses | 58 | 77 | 33 | |
| Total operating expenses | 10,883 | 8,621 | 8,889 | |
| (6,959) | (3,688) | (6,947) | ||
| Depreciation | 319 | 209 | 109 | |
| Gain (Loss) from operations | (7,278) | (3,897) | (7,056) | |
| Gain on redemption of debentures | – | (5,175) | – | |
| Gain on sale property | – | – | 4,184 | |
| Foreign exchange gain (loss) | (256) | (166) | 35 | |
| Net Profit (Loss) | $ (7,534) | $ (1,112) | $ (2,837) | |
Summary Financial Position
(Expressed in thousands of U.S. dollars)
| Year Ended September 30, | ||||
| 2021 | 2020 | 2019 | ||
| Total current assets | $ 12,028 | $ 8,067 | $ 2,083 | |
| Total non-current assets | 2,949 | 2,575 | 5 | |
| Total assets | $ 14,977 | $ 10,642 | $ 2,088 | |
| Total current liabilities | 13,453 | 16,451 | 16,211 | |
| Total non-current liabilities | 3,220 | 2,906 | 142 | |
| Equity (Deficiency) | (1,696) | (8,715) | (14,265) | |
| Total liabilities and equity (deficiency) | $ 14,977 | $ 10,642 | $ 2,088 | |
Quarterly Results of Operations
(Expressed in thousands of U.S. dollars)
| 2021 | |||||
| Q1 | Q2 | Q3 | Q4 | 2021 | |
| Total Revenue | $ 2,583 | $ 2,927 | $ 1,918 | $ 4,156 | $11,584 |
| Variable costs | 1,762 | 2,003 | 1,203 | 2,692 | 7,660 |
| Gross Margin | 821 | 924 | 715 | 1,464 | 3,924 |
| GM% | 32% | 32% | 37% | 35% | 34% |
| Expenses | |||||
| Research & development | 906 | 1,001 | 1,007 | 1,641 | 4,555 |
| Government assistance | – | (210) | (354) | (307) | (871) |
| Sales & marketing | 262 | 340 | 332 | 348 | 1,282 |
| General & administrative | 539 | 563 | 942 | 605 | 2,649 |
| Stock based compensation | 44 | 47 | 42 | 408 | 541 |
| Finance Cost | 516 | 885 | 364 | 904 | 2,669 |
| Patent & trademark expenses | 11 | 10 | 10 | 27 | 58 |
| 2,278 | 2,636 | 2,343 | 3,626 | 10,883 | |
| (1,457) | (1,712) | (1,628) | (2,162) | (6,959) | |
| Depreciation | 70 | 72 | 74 | 103 | 319 |
| Gain (Loss) from operations | (1,527) | (1,784) | (1,702) | (2,265) | (7,278) |
| Gain on redemption of debentures | – | – | – | – | |
| Foreign exchange gain (loss) | (317) | (82) | (90) | 233 | (256) |
| Net Profit (Loss) | (1,844) | (1,866) | (1,792) | (2,032) | (7,534) |
The Company’s complete Financial Statements, Management Discussion and Analysis and Annual Information Form for the fourth quarter and fiscal year ended September 30, 2021 are available at www.sedar.com or on the Company’s website at www.electrovaya.com.
Conference Call Details:
The Company will hold a conference call on Tuesday, December 21, 2021 at 8:00 a.m. Eastern Time (ET) to discuss the September 30, 2021 year-end financial results and to provide a business update.
US and Canada toll free: (877) 407-8291
International: + 1(201) 689-8345
To help ensure that the conference begins in a timely manner, please dial in 10 minutes prior to the start of the call. For those unable to participate in the conference call, a replay will be available for two weeks beginning on December 21, 2021 through January 4, 2022. To access the replay, the U.S. dial-in number is (877) 660-6853 and the non-U.S. dial-in number is +1 (201) 612-7415. The replay conference ID is 13725757.
For more information, please contact:
Investor Contact:
Jason Roy
Electrovaya Inc.
Telephone: 905-855-4618
Email: jroy@electrovaya.com
About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL) (OTCQB:EFLVF) designs, develops and manufactures proprietary Lithium Ion batteries, battery systems, and battery-related products for energy storage, clean electric transportation and other specialized applications. Electrovaya is a technology focused
company with extensive IP. Headquartered in Ontario, Canada, Electrovaya has production facilities in Canada with customers around the globe.
To learn more about how Electrovaya is powering mobility and energy storage, please explore www.electrovaya.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things, revenue
forecasts and in particular the revenue forecasts for the fiscal year ending September 30, 2022, expected improvements in sales
and revenues in fiscal year 2022, the Company’s ability to satisfy its ongoing debt obligations, the ability to draw under the
Company’s shelf prospectus, anticipated increased collaboration with OEMs and OEM channels constituting a source of sales
growth for the Company, in particular, the Company’s OEM partner making purchases under the OEM Strategic Supply
Agreement in the minimum amount necessary to maintain exclusivity, anticipated sales under the Vicinity Strategic Supply
Agreement, anticipated continued increases in sales momentum in fiscal 2022 in the Company’s direct sales channel, the future
direction of the Company’s business and products, the effect of the ongoing global COVID-19 public health emergency on the
Company’s operations, employees and other stakeholders, including on customer demand, supply chain, and delivery schedule,
the Company’s ability to source supply to satisfy demand for its products and satisfy current order volume, technology
development progress, plans for product development, and the Company’s markets, objectives, goals, strategies, intentions,
beliefs, expectations and estimates generally, and can generally be identified by the use of words such as “may”, “will”,
“could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”
and “continue” (or the negative thereof) and words and expressions of similar import. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and
undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forwardlooking
statements, and actual results may differ materially from those expressed or implied in such statements. Important
factors that could cause actual results to differ materially from expectations include but are not limited to: that current customers
will continue to make and increase orders for the Company’s products, and in accordance with communicated intentions and
expectations, that the Company’s alternate supply chain will be adequate to replace material supply and manufacturing, that the
Company’s settlement of the Litarion insolvency proceedings will proceed as outlined in the settlement agreement and without a
significant negative effect on the Company or its assets, general business and economic conditions (including but not limited to
currency rates and creditworthiness of customers), Company liquidity and capital resources, including the availability of
additional capital resources to fund its activities, competition in the battery production and energy storage industry, changes in
laws and regulations, legal and regulatory proceedings, the ability to adapt products and services to the changing market, the
ability to attract and retain key executives, the granting of additional intellectual property protection, and the ability to execute
strategic plans. Additional information about material factors that could cause actual results to differ materially from
expectations and about material factors or assumptions applied in making forward-looking statements may be found in the
Company’s Annual Information Form for the year ended September 30, 2021 under “Risk Factors”, and in the Company’s most
recent annual Management’s Discussion and Analysis under “Qualitative And Quantitative Disclosures about Risk and
Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The
Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in
this document, whether as a result of new information, future events or otherwise, except as required by law.
Revenue forecasts herein constitute future‐oriented financial information and financial outlooks (collectively, “FOFI”), and
generally, are, without limitation, based on the assumptions and subject to the risks set out above under “Forward‐Looking
Statements”. Although management believes such assumption to be reasonable, a number of such assumptions are beyond the
Company’s control and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. FOFI
is provided for the purpose of providing information about management’s current expectations and plans relating to the
Company’s future performance, and may not be appropriate for other purposes.
The FOFI does not purport to present the Company’s financial condition in accordance with IFRS, and it is expected that there
may be differences between actual and forecasted results, and the differences may be material. The inclusion of the FOFI in this
news release disclosure should not be regarded as an indication that the Company considers the FOFI to be a reliable prediction
of future events, and the FOFI should not be relied upon as such.