Dr. Raj DasGupta reports

ELECTROVAYA REPORTS RECORD REVENUE OF $44.1 MILLION FOR FISCAL YEAR 2023; UP 171% Y/Y

Electrovaya Inc. has released its financial results for the fourth quarter and fiscal year ended Sept. 30, 2023 (FY 2023). All dollar amounts are in U.S. dollars unless otherwise noted.

"FY 2023 represented a breakthrough year for the company with strong revenue growth and over $3.2-million in adjusted EBITDA [earnings before interest, taxes, depreciation and amortization]", said Dr. Raj DasGupta, chief executive officer of Electrovya. "Furthermore, we are building the foundations for a strong FY 2024 including an increased order backlog, a new OEM [original equipment manufacturer] partner and new product lines. Given the strength of the backlog and the current line of sight for other orders, we are providing guidance of between $65-million and $75-million revenue for FY 2024, which represents approximately 59-per-cent annual growth at the midpoint.

"We are also looking ahead to 2025 and beyond and are seeding new markets with our recently developed high-voltage battery system line. We are making good progress in securing long-term supply contracts for these systems in the electric bus and other market segments that we are targeting."

John Gibson, chief financial officer of Electrovaya, commented: "Following listing on Nasdaq and due to increasing business size, combined with limited resources at our previous auditing firm, we made the decision to engage MNP LLP as our new auditors in September. First-year audits tend to take longer than expected as the audit team learns about our business. As a result of discussions and with the new auditor's guidance, management restated the financials for fiscal year 2022. The restatements pertain to the functional currency, revenue recognition, the addition of the Jamestown assets to the balance sheet in 2022, and non-cash valuation adjustments to warrants and performance-based stock options."

Please refer to the company's MD&A (management discussion and analysis) and financial statements for further clarification.

Financial highlights:

• Revenue for FY 2023 was $44.1-million, compared with restated revenue of $16.3-million in the fiscal year ended Sept. 30, 2022 (FY 2022). The overall gross margin was 27 per cent in FY 2023, which was a 300-basis-point increase from the FY 2022 level.
• Adjusted EBITDA was $3.2-million, a significant improvement of $6.7-million from negative $3.5-million in fiscal 2022. Fiscal 2023 adjusted EBITDA was more than enough to support relatively high-interest debt facilities that the company currently utilizes for working capital.
• As of Sept. 30, 2023, current assets were $25.9-million, current liabilities were $26.6-million, and equity was $7.1-million. This represents an increase of $11.1-million in current assets, an increase of $3.9-million in current liabilities, driven primarily by the increase to trade and other payables of $3.7-million and an increase in equity of $13.9-million compared with the balances as of Sept. 30, 2022.
• On Dec. 20, 2023, the company renewed its revolving facility and extended the term of the facility by three months to March 29, 2024, with the aim to refinance the facility with another lender by the end of Q2 FY 2024. The company retains the option to extend the existing facility by a further three months to June 29, 2024.

Business highlights:

• On July 3, 2023, the company announced that Nasdaq Stock Market LLC approved the listing of the common shares on the Nasdaq Capital Market. The company commenced trading on Nasdaq under the symbol ELVA at the opening of trading on Thursday, July 6, 2023, and will continue to trade on the Toronto Stock Exchange under the symbol ELVA.
• On July 20, 2023, the company announced the launch of its Infinity-HV battery systems. The Infinity-HV systems target heavy-duty, high-voltage applications, including buses, trucks, hybrid fuel-cell/battery systems and stationary energy storage systems. The first shipments were announced on Dec. 26, 2023, to a global aerospace and defence company.
• On Oct. 24, 2023, the company announced the appointment of Steven Berkenfeld to the company's board of directors. In previous roles, Mr. Berkenfeld served as managing director in investment banking at Barclays Capital co-heading the firm's clean technology initiative and leading the banking effort for emerging industrial technology companies, amongst other roles.
• On Nov. 2, 2023, the company announced that it had executed a strategic supply agreement with two leading affiliated OEM partners for material handling vehicles and other affiliates for the supply of battery systems. The new agreement supersedes a preceding agreement from December, 2020, with just one of the OEM partners and includes a longer term with larger minimum purchases to maintain exclusivity.
• In October, 2023, the company established a relationship with one of the four largest Japanese trading houses, or sogo shosha. Through this partnership, Electrovaya products are being marketed to a host of Japanese and international OEMs, representing a significant boost to the company's sales reach.
• The company continues to make progress with regards to its planned battery gigafactory in Jamestown, N.Y. The company has completed engineering studies for the manufacturing site and anticipated manufacturing equipment and also updated environmental studies. Recently, the company hired Lee Gilmore as the general manager and it continues to identify other key staff. The company also continues to make progress in securing additional non-dilutive financing, including government-backed debt, for the planned facility; however, it will only proceed on making significant investments once this is finalized.

Positive financial outlook and fiscal 2024 guidance

The company anticipates revenue of approximately $65-million to $75-million for the fiscal year ending Sept. 30, 2024 (FY 2024), representing year-over-year growth of approximately 58 per cent at the midpoint. The increase in revenue is anticipated to be underpinned by a recently expanded strategic supply agreement, which now includes an additional global OEM, increasing order backlogs and new products designed for new sectors. This guidance is subject to change and is made barring any unforeseen circumstances.

The company's complete financial statements, management discussion and analysis, and annual information form for the fourth quarter and fiscal year ended Sept. 30, 2023, are available on SEDAR+ or on the company's website.

Update on filing obligations and management cease trade order application

Further to the company's news release dated Dec. 22, 2023, with the respect to the potential for delay in filing its annual financial statements, management discussion and analysis, related certificates, and annual information form for the year ended Sept. 30, 2023, and the related application for a management cease trade order (MTCO) in the event the required filings were not filed by Dec. 29, 2023.

The company has filed a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission with respect to the filing of its annual report in the United States with the SEC. As a result, the company may file its Form 20-F or Form 40-F, if permitted under U.S. securities laws, on or before 13, 2023. The company expects to satisfy its annual filing obligations on either Form 20-F or Form 40-F, as applicable, by this date. The company is evaluating whether it will satisfy the eligibility requirements of the multijurisdictional disclosure system with respect to its U.S. filing obligations. In the event it does, it expects to satisfy its U.S. annual reporting obligations by preparing and filing its disclosure reports with the SEC on Form 40-F primarily in accordance with Canadian disclosure requirements.

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About Electrovaya Inc.

Electrovaya is a pioneering leader in the global energy transformation, focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The company has extensive IP (intellectual property) and designs, develops and manufactures proprietary lithium-ion batteries and battery systems for energy storage and heavy-duty electric vehicles based on its Infinity battery technology platform. This technology offers enhanced safety and industry-leading battery longevity. The company is also developing next-generation solid-state battery technology at its labs division. Headquartered in Ontario, Canada, Electrovaya has two operating sites in Canada and has acquired a 52-acre site with a 135,000-square-foot manufacturing facility in New York State for its planned gigafactory.

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