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Envirotech Vehicles Reports Fourth Quarter and Full Year 2020 Results

2021-03-31 16:00 ET - News Release

CORONA, CA / ACCESSWIRE / March 31, 2021 / ADOMANI, Inc. (OTCQB:ADOM), DBA Envirotech Vehicles, a provider of new zero-emission purpose-built electric vehicles and drivetrain solutions, today announced its results for the fourth quarter and full year ended December 31, 2020.

Highlights and Recent Developments

  • Entered into exchange agreements with the holders of outstanding warrants to purchase 5,499,997 shares of our common stock that were originally issued in January 2018. Pursuant to the exchange agreements, on December 4, 2020, the warrants were cancelled in exchange for the issuance of 27,499,985 shares of our common stock to the holders thereof.
  • Entered into a securities purchase agreement to raise gross proceeds of up to $23 million resulting from the sale of shares of our common stock and warrants to purchase additional shares of our common stock through a private investment in public equity (PIPE) financing, which is to occur in two separate closings (the "PIPE Financing"). The first closing of the PIPE Financing occurred on December 29, 2020, at which we raised aggregate gross proceeds of $5,750,000 through the sale and issuance of 11,500,000 shares of our common stock at a purchase price of $0.50 per share, and warrants to purchase up to an aggregate of 8,625,001 shares of our common stock at an exercise price of $0.50 per share. The second closing of the PIPE Financing is subject to and contingent upon the effectiveness of a registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") registering the shares of our common stock sold, or issuable under the warrants issued, in connection with the PIPE Financing, and the closing of our business combination transaction with Envirotech Drive Systems Inc. ("EVT"), which was completed on March 16, 2021. In the event that the second closing occurs, we will raise aggregate gross proceeds of approximately $17,250,000 through the sale and issuance of 38,333,334 shares of its common stock at a purchase price of $0.45 per share, and warrants to purchase up to an aggregate of 19,166,670 shares of its common stock at an exercise price of $1.00 per share.
  • Completed the acquisition of EVT, a supplier of zero-emission trucks, cargo vans, chassis and other commercial vehicles, on March 16, 2021, pursuant to the Agreement and Plan of Merger, dated February 16, 2021 (the "Merger Agreement"), with EVT and EVT Acquisition Company, Inc., a Delaware corporation and our wholly owned subsidiary ("Merger Sub"). As a result of such transaction, Merger Sub was merged with and into EVT, with EVT surviving as our wholly owned subsidiary (the "Merger"). In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of the common stock of EVT was automatically converted into the right to receive one share of the common stock of the Company. As a result of the Merger, we issued an aggregate of 142,558,000 shares of our common stock to the former EVT stockholders, which shares represented approximately 56% of the total issued and outstanding shares of our common stock as of immediately following the effective time of the Merger.
  • As a result of the Merger, we acquired over $5 million of additional capital from EVT. In addition, subject to the effectiveness of a registration statement filed with the SEC registering securities issued in connection with our PIPE financing, we intend to proceed with the second closing of the PIPE Financing, at which we would raise an additional $17.3 million of working capital.
  • As a result of the foregoing, we believe that we are a totally transformed company heading into 2021. Since September 2020, we have dramatically reduced costs, executed a transformative merger that repositions the business, strengthened our financial position, began doing business under our new name Envirotech Vehicles, and are positioned to go after an incredibly attractive emerging market opportunity that grows daily as the country embraces electric vehicles.
  • Added Ted Thordarson as our Chief Operating Officer in March 2021 and have retained Gameday HR to help us continue to bring in experienced people with the capabilities to support our growth.
  • Intend to expand or relocate to larger facilities in order to scale our manufacturing, installation and service operations and are currently evaluating potential sites.
  • We remain hopeful that we will receive HVIP vouchers in 2020, allowing our customers in California to access to incentives when purchasing our vehicles. We did not have approval for the HVIP voucher program in 2019, the last time applications for vouchers were opened, which hurt our ability to sell our products. Access to subsidy programs is helpful, and something we will continue to pursue, but we will not be held hostage by funding agencies and intend to explore alternative business models, such as the leasing program we intend to establish for customers in 2021.
  • Continue to work with California school districts and fleet owners. In March 2021, we delivered an upgraded Class 4 all-electric box truck to the Child Nutrition Services Department of the Pittsburg Unified School District (USD) in Contra Costa County, California. The Class 4 electric truck will replace a diesel truck that the Child Nutrition Services Department is currently operating to deliver food to schools in the Pittsburg, California, area.
  • Intend to expand our dealer and service network to provide sales and service on our products. We anticipate that, in some instances all functions will be handled at one location; in others, separate service centers for our all-electric vans and trucks will be established.
  • Plan to expand our fleet, which currently consists of 16 trucks and vans. We expect the delivery of 10 additional trucks between the end of April and middle of May. In addition, we are about to make deposits to purchase additional vehicles and plan to purchase more vehicles in the coming months.
  • We are targeting 100 vehicles on the road within a year. We will not sacrifice growth for profitability, but we believe that our model is such that, if we are able to effectively execute our business plan and capitalize on the opportunities that are presented to us, we very well could achieve profitability next year.
  • We feel that we have adequate cash to fund our operations during the next 18 months, with cash and cash equivalents of $4.1 million at December 31, 2020, plus the additional funds acquired as a result of the Merger and the possibility of raising additional amounts in the event we are able to satisfy the conditions required to proceed with the second closing of the PIPE Financing, which we will endeavor to complete in the second quarter of 2021.

Phillip Oldridge, CEO of Envirotech Vehicles, commented, "2020 was a challenging year, but the turnaround strategy initiated in Q4 has placed us on an exciting growth trajectory as we head into 2021. Now doing business as Envirotech Vehicles, our recently closed merger with EVT transforms our company from an undercapitalized and underperforming business focused on EV sales that required government subsidies for customers, to a well capitalized provider of purpose-built electric vehicles with an industry leading customer-ready product line. Furthermore, we expect that the additional capital resources we acquired as a result of the merger will provide the financial strength we need to fulfill the growing demand we are seeing from fleet truck operators who want to convert to electric."

Mr. Oldridge continued, "Our key focus is continuing to put the right building blocks in place to scale the business and drive sustained growth. This includes expanding our employee base to support the healthy pipeline of opportunities we are seeing and strategically scaling our engineering and manufacturing to support the anticipated ramp in the business. Finally, our already robust vehicle product line will be further expanded to ensure we can offer fleet owners the broadest suite of vehicles to fulfill their needs."

Mr. Oldridge concluded, "Having been a pioneer in the fleet EV space, it is gratifying to see the transition to EV truly taking hold. We are unique in the sector in that we have vehicles manufactured and ready for customers, as well as a breadth of experience across our organization that enables us to effectively support fleet customers and their unique requirements and needs. With a revitalized Company, strategy and balance sheet, we are optimistic about our ability to fulfill the growing need amongst fleet owners for a dependable, cost effective EV solution."

Fourth Quarter and Full Year 2020 Financial Results

Sales were approximately $41,000 and $618,000 for the three months and year ended December 31, 2020, respectively, compared to $2,011,000 and $12,561,000 for the three months and year ended December 31, 2019, respectively. The sales decrease was primarily related to the impact of COVID-19 restrictions on our business and the administrative delays and lack of access to HVIP funds.

Total net operating expenses for the fourth quarter of 2020 decreased by $338,000 compared to the fourth quarter of 2019, primarily due to general and administrative expense reductions. Total net operating expenses decreased by approximately $1.5 million for the year ended December 31, 2020, compared to the year ended December 31, 2019.

Net loss in the fourth quarter of 2020 was approximately $1.1 million, compared to a net loss of approximately $1.2 million in the fourth quarter of 2019. The total non-cash expenses included in the net loss totals for the quarters ended December 31, 2020 and December 31, 2019 were approximately $500,000 and $340,000, respectively.

Net loss for the year ended December 31, 2020 was approximately $4.4 million compared to $5.2 million for the year ended December 31, 2019. The total non-cash expenses included in the net loss totals for the years ended December 31, 2020 and 2019 were approximately $1.0 million and $1.2 million, respectively.

As of December 31, 2020, the Company had cash, cash equivalents, and short-term investments of approximately $4.1 million and debt of approximately $420,000, as compared to approximately $7.2 million of cash, cash equivalents and short-term investments and approximately $5.8 million of debt as of December 31, 2019. Working capital at December 31, 2020 was approximately $4.5 million as compared to approximately $2.7 million at December 31, 2019.

About Envirotech Vehicles

ADOMANI, Inc. (DBA Envirotech Vehicles) is a provider of purpose-built zero-emission electric vehicles focused on reducing the total cost of vehicle ownership and helping fleet operators unlock the benefits of green technology. We serve commercial and last-mile fleets, school districts, public and private transportation service companies and colleges and universities to meet the increasing demand for heavy duty electric vehicles. Our vehicles address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. For more information visit www.ADOMANIelectric.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements made in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in reports filed by ADOMANI, Inc. (DBA Envirotech Vehicles) with the Securities and Exchange Commission, all of which are available online at www.sec.gov. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech Vehicles undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Contact Information

Investor Relations Contacts:

Envirotech Vehicles

Michael K. Menerey, Chief Financial Officer
Telephone: (951) 407-9860 ext. 1205
Email: mike.m@ADOMANIelectric.com

IMS Investor Relations

John Nesbett/Jennifer Belodeau
Telephone: 203.972.9200
Email: jnesbett@imsinvestorrelations.com

SOURCE: ADOMANI, Inc. (DBA Envirotech Vehicles)



View source version on accesswire.com:
https://www.accesswire.com/638465/Envirotech-Vehicles-Reports-Fourth-Quarter-and-Full-Year-2020-Results

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