FORM 10-Q FOR THE QUARTERLY PERIOD ENDED March 31, 2024
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| Part I. FINANCIAL INFORMATION |
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| Item 1. Financial Statements: | 2 | |
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| Unaudited Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 | 2 |
| Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 | 3 |
| Unaudited Consolidated Statement of Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023 | 4 |
| Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 | 5 |
| Notes to Unaudited Consolidated Financial Statements | 6 |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | |
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| Item 3. Quantitative and Qualitative Disclosure about Market Risk | 21 | |
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| Item 4. Controls and Procedures | 21 | |
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| Part II. OTHER INFORMATION |
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| Item 1. Legal Proceedings | 22 | |
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| Item 1A. Risk Factors | 22 | |
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| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 22 | |
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| Item 3. Defaults Upon Senior Securities | 22 | |
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| Item 4. Mine Safety Disclosures | 22 | |
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| Item 5. Other Information | 22 | |
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| Item 6. Exhibits | 23 | |
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| Signatures | 24 | |
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (“Quarterly Report”) contains “forward-looking statements” that involve substantial risks and uncertainties. Forward-looking statements relate to future events or our future financial performance or condition and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms or other comparable terminology intended to identify statements about the future.
You should not place undue reliance on forward-looking statements. The special note set forth in this Quarterly Report, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:
| • | ability to generate demand for our zero-emission commercial fleet vehicles in order to generate revenue; |
| • | dependence upon external sources for the financing of our operations; |
| • | ability to effectively execute our business plan; |
| • | ability and our suppliers’ ability to scale our zero-emission products assembling processes effectively and quickly from low volume production to high volume production; |
| • | ability to manage our expansion, growth and operating expenses and reduce and adequately control the costs and expenses associated with operating our business; |
| • | ability and our manufacturing partners’ ability to navigate the current disruption to the global supply chain and procure the raw materials, parts, and components necessary to produce our vehicles on terms acceptable to us and our customers; |
| • | ability to obtain, retain and grow our customers; |
| • | ability to enter into, sustain and renew strategic relationships on favorable terms; |
| • | ability to achieve and sustain profitability; |
| • | ability to evaluate and measure our current business and future prospects; |
| • | ability to compete and succeed in a highly competitive and evolving industry; |
| • | ability to respond and adapt to changes in electric vehicle technology; and |
| • | ability to protect our intellectual property and to develop, maintain and enhance a strong brand. |
You should read this Quarterly Report and the documents that we reference elsewhere in this Quarterly Report completely and with the understanding that our actual results may differ materially from what we expect as expressed or implied by our forward-looking statements. Factors that may cause or contribute to such differences include, but are not limited to, those discussed in greater detail, particularly in Part I, Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) and in Part II, Item 1A (Risk Factors) of this Quarterly Report. In light of the significant risks and uncertainties to which our forward-looking statements are subject, you should not place undue reliance on or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. These forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report regardless of the time of delivery of this Quarterly Report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Quarterly Report.
Unless expressly indicated or the context requires otherwise, references in this Quarterly Report to “Envirotech,” the “Company,” “we,” “our,” and “us” refer to Envirotech Vehicles, Inc. and our consolidated subsidiaries, unless the context indicates otherwise.
