Despite Falling Sales, Envirotech Narrows Losses in Q2

Phillip Oldridge, CEO and chairman of Envirotech Vehicles Inc., at the company's electric vehicle plant in Osceola in 2022. (Terrance Armstard)

Envirotech Vehicles Inc. of Osceola (Nasdaq: EVTV) recently reported a second-quarter loss of $755,093, improving on the loss of $1.3 million it posted in the same quarter a year ago.

Per share, the loss came to 5 cents.

The electric vehicle maker narrowed its losses in the period despite falling sales. Second-quarter revenue was $812,770, down from $2.1 million.

The company sold five logistics cargo vans, one cab and chassis truck, one electric sweeper and one passenger van in the period. Envirotech attributed the sales decrease primarily  to an “unfavorable product mix and less favorable market conditions” compared to a year ago.

Lower expenses helped the company offset the sales decline. Envirotech reported that general and administrative expenses fell to $1.5 million from $2 million, primarily due to a decrease in stock compensation as a result of lower fair valuation of equity awards.

The company also reported lower payroll costs, legal fees, marketing costs, travel costs, and investor relations costs under an initiative launched to conserve spending. Envirotech had been working with a consultancy to help it fill key roles in the company, but there were no payments to the firm in the second quarter.

The company ended the period with $437,064 in cash and cash equivalents, down from $833,282 a year ago. Envirotech reported working capital of about $7.7 million.

The company, led by CEO Phillip Oldridge, recently announced an expansion of its production team. It also announced it had secured $10 million in financing t0 help fill a 200-plus vehicle order from Texas-based startup PlugD Commercial Electric Leasing and Rentals Inc. The order for high roof vans and trucks, announced in March, is the company’s biggest ever.

Envirotech announced in August that Brock Pierce, a cryptocurrency entrepreneur and philanthropist, had joined the company’s board of directors. Pierce is known as a co-founder of the Tether cryptocurrency and a co-founder of the venture capital firm Blockchain Capital.

Shares of Envirotech have risen 50% to $1.89 this year.