Envirotech Vehicles Inc. of Osceola (Nasdaq: EVTV) recently reported a third-quarter loss of $1.2 million, improving on a loss of $5.9 million in the same period a year ago.
Per share, the loss came to 8 cents. The company has yet to report a profitable quarter.
The electric vehicle manufacturer reported no sales for the period ending Sept. 30, compared to $100,024 in sales in the third quarter of 2023. The company attributed the decrease in sales primarily due to less favorable market conditions and a focus in the third quarter on building up its Osceola facility for future sales.
The company finished the quarter with $682,654 in cash and cash equivalents and working capital of about $8.7 million.
Envirotech recently announced the acquisition of Maddox Industries LLC of Puerto Rico, a provider of government contracting solutions. In a news release, Envirotech said the deal is expected to deliver a multimillion-dollar revenue stream from government contracts over the next three years. Maddox Industries will continue its independent operations under a cash-sharing arrangement with Envirotech and will sell Envirotech vehicles through its government infrastructure sales vertical.
Under the terms of the transaction, Maddox Industries founder Jason Maddox received 3.1 million shares of Envirotech’s common stock and is eligible to be paid up to $1 million over a six-month period that began when the deal closed.
The deal includes a three-year contract manufacturing agreement at Envirotech’s 580,000-SF facility in Osceola.
Maddox was also named president of Envirotech. He said the arrangement allows for the development of products for the first responder market, including electric ambulances and police vehicles, as well as the school consortium market, which includes energy-efficient and zero-emission school buses.
In other executive moves, Elgin Tracy, former chief operating officer of Maddox Industries, was named to the same role at Envirotech.
Susan Emry, the company’s executive vice president and corporate secretary, resigned from the company in October. She also held the roles of president, director and interim CFO during her time with the company.
Envirotech in August signed a one-year lease agreement in Manalpan, New Jersey, to set up a maintenance facility for 76 vehicles it delivered to business owners under a New Jersey voucher program. The monthly lease cost is $2,900.
“The certified Envirotech maintenance facility we have opened in New Jersey reinforces our deep commitment to our vehicle owners and our desire to serve them for years to come,” CEO Phillip Oldridge said in a statement.
During the third quarter, Envirotech also signed a $3,000 monthly lease for a home in Osceola “for the purpose of housing certain of the Company’s employees,” according to a quarterly earnings report.
Shares of Envirotech have risen nearly 13% this year to $1.42.
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