Envirotech Vehicles Inc. (Nasdaq: EVTV) of Osceola on Tuesday announced it had hired Douglas Campoli as CFO and Franklin Lim as controller, an executive accounting shakeup that comes after the company incorrectly reported its financial performance in 2022.
Campoli and Lim join Envirotech from publicly traded Arcimoto Inc. of Eugene, Oregon, which makes three-wheeled electric vehicles. Arcimoto (NasdaqGM: FUV) has been running low on cash and warned investors Monday that there's "substantial doubt" it can stay in business.
Campoli takes over as CFO for Christian Rodich, who resigned in February after just a year on the job. Sue Emery held the position on an interim basis. She'll continue to serve as executive vice president of the company.
Campoli was CFO and treasurer for Arcimoto for nearly eight years, guiding the company through its IPO in 2017 and leading it through its first acquisition process, Envirotech said in a news release. He was named CFO of the Year by Portland Business Journal in the Public Companies category in 2021.
Lim had been with Arcimoto since 2021, serving as the company's corporate controller. He began his career as a tax accountant at Deloitte & Touche in 1989.
"Both gentlemen know the rigor that is required with respect to running the finance and accounting departments at companies that are relatively young and in industries that are nascent, such as the electric vehicle industry today," CEO Phillip Oldridge said in the release. "We look forward to Doug and Franklin strengthening our program across corporate finance and accounting."
Campoli and Lim come to Envirotech after the company disclosed in an SEC filing that it misstated sales revenue and cost of sales in each of the first three quarters of 2022. The company said those figures were incorrectly recognized at the time of approval of customer purchase incentives, and should've been recognized upon delivery of the vehicles to the customer.
Envirotech will recognize the same amount of revenue in later periods for approximately 32 vehicles that were delivered later in 2022 or 2023, and will not recognize revenue for 13 vehicles which had not been delivered as of April 4.
The company said it couldn't estimate when it would complete the restatements and file amended financial reports, but was "diligently pursuing completion of the restatements and intends to file the amended reports as soon as reasonably practicable."
The company has not filed quarterly results since the third quarter of 2022, when it reported the first quarterly profit in company history. Envirotech said it sold 37 vehicles in the period ending Sept. 30, compared to eight vehicles in the same quarter a year ago. Revenue was reported to be $3.9 million, up from $709,092 from the previous year.