Dr. Raj DasGupta reports

ELECTROVAYA REPORTS REVENUE OF $12.1 MILLION FOR Q1 FY2024; UP 41 per cent Y/Y

Electrovaya Inc. has released its financial results for the first quarter fiscal year ended Sept. 30, 2024. All dollar amounts are in U.S. dollars unless otherwise noted.

"Q1 FY 2024 represented a good start for the fiscal year for the company with strong revenue growth, improved margins and our fourth consecutive positive [earnings before interest, taxes, depreciation and amortization] result," said Dr. Raj DasGupta, Electrovya's chief executive officer. Given the strength of the backlog and the current line of sight for other orders, we are reaffirming guidance of between $65-million and $75-million revenue for FY 2024.

"We continue our long-term planning with respect to increasing the adoption of our Infinity battery technology into new verticals from 2025, and are making good progress including in the electric bus, construction and mining vehicles, as well as energy storage applications. While not having meaningful revenue in 2024, these new vertices will help support our vision to become the leading battery player for heavy-duty applications that require longer-lasting and safer batteries."

John Gibson, Electrovaya's chief financial officer, commented: "Q1 FY 2024 was by far our strongest first quarter in recent history. The company is making progress in reaching a new debt facility with increased working capital availability, which is going to support further revenue growth in the quarters ahead. In parallel, good progress is also being made with our project financing goals to support our Jamestown, N.Y., gigafactory buildout."

Financial highlights:

• Revenue for Q1 FY 2024 was $12.1-million, compared with restated revenue of $8.6-million in Q1 FY 2023, an increase of 41 per cent.
• The company had over $1.7-million within finished goods at the end of the quarter. This would represent completed units that are in transit to customers but have not yet been delivered and are not counted to the quarter's recognized revenue.
• Gross margins improved to 29.2 per cent in Q1 FY 2024 from 25.6 per cent in Q1 FY 2023, a 360-basis-point increase.
• Adjusted EBITDA increased by $900,000 primarily due to the increase in revenue and improvement in gross margin. The quarter figure for adjusted EBITDA of $600,000 included some one-off expenses.
• As of Dec. 31, 2023, current assets were $24.8-million, current liabilities were $25.2-million and equity was $7.5-million. This represents an increase of $7.3-million in current assets, an increase of $5-million in current liabilities and an increase in equity of $8.8-million compared with the balances as of Dec. 31, 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 by the end of second quarter FY 2024. The company retains the option to extend the existing facility by a further three months to June 29, 2024.

Business highlights:

• 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 cleantech 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 original equipment manufacturer 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 regard to its planned battery Gigafactory in Jamestown, N.Y. The company has completed engineering studies for the manufacturing site and anticipated manufacturing equipment, and has 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, 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 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's discussion and analysis, and annual information form for the fourth quarter and fiscal year ended Sept. 30, 2023, are available at SEDAR+ or on the company's website.

Conference call details:

• Date: Monday, Feb. 12, 2024;
• Time: 5 p.m. Eastern Time;
• Toll-free: 888-506-0062;
• International: 973-528-0011;
• Participant access code: 437462.

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 Feb. 12, 2024, through Feb. 26, 2024. To listen to the replay, the dial-in number is 877-481-4010 and 919-882-2331. The replay access ID is 49873.

About Electrovaya Inc.

Electrovaya (Nasdaq: ELVA) (Toronto Stock Exchange: ELVA) 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 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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