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Lightning eMotors Inc

Lightning eMotors Inc (ZEV)

1.63
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Closed March 29 04:00PM
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ErnieBilco ErnieBilco 2 months ago
Well here's another one to throw on Biden's EV shitpile of failures.

Goddbye Lightning - you were just a flash in the pan.
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WeTheMarket WeTheMarket 3 months ago
Form 8-K
December 18, 2023
https://ih.advfn.com/stock-market/USOTC/lightning-emotors-pk-ZEVY/stock-news/92840088/form-8-k-current-report

Item 1.03 Bankruptcy or Receivership.

On December 15, 2023, the District Court, Larimer County, State of Colorado (the “Court”), appointed Cordes & Company as receiver (the “Receiver”) over Lightning eMotors, Inc. and its wholly owned subsidiary, Lightning Systems, Inc. (together, the “Company”).

The Receiver has broad powers and authority to take possession of, and protect and preserve, all of the assets of the Company, and administer the estate in accordance with Rule 66 of the Colorado Rules of Civil Procedure. Accordingly, the Receiver is empowered to sell all of the assets of the Company (together or separately) and distribute the proceeds of such sale to the Company’s creditors in a manner approved by the Court. The appointment of a receiver is considered an event of default under the Company’s senior notes and other financing arrangements. The Company’s shareholders will not receive distributions in the receivership.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Effective on December 15, 2023, in connection with the appointment of the Receiver, all members of the Company’s Board of Directors resigned from their respective positions on the Company’s Board and Committees, namely:
•Robert Fenwick-Smith, Chairman of the Board, Chair of the Finance and Investment Committee,
•Thaddeus Senko, Lead Independent Director, Chair of the Audit Committee and member of the Finance and Investment Committee,
•Diana Tremblay, Chair of the Compensation Committee, member of the Audit Committee and Finance and Investment Committee
•Bruce Coventry, Chair of the Nominating and Corporate Governance Committee, member of the Compensation Committee
•Kenneth Jack, member of the Audit Committee and Nominating and Corporate Governance Committee,
•Wanda Jackson-Davis, member of the Compensation Committee, and Nominating and Corporate Governance Committee, and
•Timothy Reeser.

Their resignations were solely the result of the appointment of the Receiver and not as a result of any disagreement between any of the directors and the Company, its management, the Board or any committee of the Board.
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WeTheMarket WeTheMarket 3 months ago
UK, apparently the company went out of business. I'm surprised how quickly they imploded. I thought they had a chance to recover in 2024. The reverse split was a terrible and fatal mistake in my opinion. I lost a ton of money in this company. Are there any insights, lessons learned, red flags that you can provide to learn from, so that I don't repeat the same mistakes in the future? Any input would be greatly appreciated.
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WeTheMarket WeTheMarket 4 months ago
LIGHTNING EMOTORS REPORTS RECORD REVENUE FOR THE THIRD QUARTER OF 2023
NOVEMBER 20, 2023
https://ir.lightningemotors.com/news-events/press-releases/detail/126/lightning-emotors-reports-record-revenue-for-the-third

Highlights
- GAAP revenue of $12.4 million, the highest quarterly revenue in company history
- Adjusted revenue of $12.7 million from sales of 110 units, excluding the final $0.3 million adjustment for legacy recall-related costs from earlier in the year
- Produced 55 units during the quarter, all of which were complete vehicles
- Net loss of $50.7 million during the quarter, largely due to non-cash impairments of $22.9 million

LOVELAND, Colo.--(BUSINESS WIRE)-- Lightning eMotors, a leading provider of zero-emission powertrains and medium-duty and specialty commercial electric vehicles for fleets, today announced consolidated results for the third quarter ended September 30, 2023.

Third Quarter Highlights

- We generated record quarterly revenue, selling 110 vehicles across a range of classes and vehicle applications. We sold a total of 69 ZEV3 vehicles, including both cargo and passenger applications. We also sold 41 ZEV4 vehicles, including school buses, shuttles, and cargo trucks.
- Through our partnership with Collins Bus, Lightning has sold 70 of our new ZEV4 school buses since we launched the product this Spring. School buses remain a key vehicle application for us, as the combination of incentives, mandates, and public sentiment support the demand for zero-emission school buses.
- We received an order for five ZEV4 electric shuttle buses to St. Louis Lambert International Airport, leveraging the FAA’s Voluntary Airport Low Emissions Program grant, which applies only to Buy American-compliant vehicles like the ZEV4. This is our second airport project; the first, involving parking shuttles, has exceeded 1 million driven miles.
- We continue to build the pipeline for our Lightning Mobile DC Fast Charger, and we have successful deployments of both customer and demonstration units in the field. The Lightning Mobile charger overcomes the permitting delays and lead times that are slowing the installation of permanent DC fast charging infrastructure.
- We are making progress toward positive gross margin as we replace sales of our legacy finished goods inventory with higher margin ZEV4 and Lightning Mobile DC Fast Charger products
- In August we announced that we had received ISO 9001:2015 certification. This recognition demonstrates our company-wide commitment to quality and continuous improvement, and it validates the investments we have made in ERP, MRP, MES and eQMS systems.
- Progress continues on our proprietary ZEV3 and ZEV4 Lightning eChassis, which we expect to include industry-leading features and performance
- Our fleet surpassed 5.8 million driven miles, with over 750 vehicles deployed
- We added CATL as an alternative to Proterra batteries in our current ZEV4 platform, and we are accepting orders today

“We are pleased with our performance with record revenue in the third quarter, and we still have vehicles in inventory to sell to satisfy customer demand and generate cash,“ stated Tim Reeser, Lightning Co-founder and CEO.

Continued Reeser, “We continue to discover new potential customers and applications for our Lightning Mobile DC Fast Charger, from rental car agencies and autonomous vehicle companies, to event and construction site equipment charging. And customer feedback regarding our new ZEV4 vehicles has been excellent, with special praise for the smooth ride, responsive handling, regenerative braking, and overall reliability.

“We remain supportive of the significant incentive programs that the U.S. and Canadian governmental agencies have allocated to accelerate adoption of Commercial EVs; however, one of the unintended consequences is that the programs can add significant delays in delivery of vehicles and collection of the payment from customers. This can create challenges for both the customer and OEM. We are committed to providing the support and input that the agencies need to evolve these programs to better support the industry,” concluded Reeser.

GAAP revenue was impacted by $0.3 million from the booking of the apportioned cost of an accommodation we made in Q1 to support our customers, as we bought back vehicles with defective Romeo batteries. This is the final booking of that accommodation on our financial statements.

Financial Condition

At September 30, 2023, cash was $6.0 million compared to $12.6 million at June 30, 2023. The Company reduced the cost of certain inventory to net realizable value by $18.0 million during the three months ended September 30, 2023, and $20.7 million for the nine months ended September 30, 2023, which was recorded in “Cost of revenues.” In addition, for the three and nine months ended September 30, 2023, the Company recorded a loss on the impairment of property and equipment of $4.9 million.

The continuation of the Company as a going concern is dependent upon the Company attaining and maintaining profitable operations and/or raising additional capital from equity offerings, debt financings or other capital markets transactions, collaborations, strategic partnerships or licensing arrangements, all of which may be impacted by our ability to fund operations in the short term. Furthermore, if we are unable to obtain the necessary funding and/or complete a strategic transaction, we could be required to liquidate inventory, cease or curtail operations, or seek protection under applicable bankruptcy laws or similar state proceedings. For further disclosures, please refer to the Form 10-Q for the quarter ended September 30, 2023.

Third Quarter 2023 Financial Results

Third quarter production was 55 units, down from 104 units in the third quarter of 2022. Unit sales were 110, compared to 93 in the year-ago quarter. Third quarter revenue was $12.4 million, compared to $11.1 million for the prior year quarter. Excluding customer refunds related to the Romeo battery recall, adjusted revenue was $12.7 million.

Third quarter net loss was $50.7 million, or $7.84 per share, compared to net loss of $1.2 million, or $0.33 per diluted share, during the third quarter of last year.

Third quarter adjusted EBITDA loss was $39.3 million, compared to a loss of $17.0 million during the same period in the prior year. Adjusted revenue and adjusted EBITDA are non-GAAP measures. See explanatory language and reconciliation to the GAAP measures below.

About Lightning eMotors

Lightning eMotors (OTC: ZEVY) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications, including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support a wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at lightningemotors.com.
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WeTheMarket WeTheMarket 4 months ago
Lightning eMotors to Report Third Quarter 2023 Financial Results on November 20
November 14, 2023
https://www.businesswire.com/news/home/20231114755192/en/

LOVELAND, Colo.--(BUSINESS WIRE)--Lightning eMotors, Inc. (OTC: ZEVY), a leading provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, today announced that the Company will release its third quarter 2023 results after the market closes on Monday, November 20. The change from our previously announced date is due to additional time required to finalize the Company’s financial statements and related disclosures required to be included in the Quarterly Report.

About Lightning eMotors

Lightning eMotors (OTC: ZEVY) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications, including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support a wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.

Contacts
Brian Smith
investorrelations@lightningemotors.com
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WeTheMarket WeTheMarket 6 months ago
Firm Announces Acceptances into IRS Commercial Clean Vehicle Credit Program.
October 05 2023
https://ih.advfn.com/stock-market/USOTC/lightning-emotors-pk-ZEVY/stock-news/92207634/firm-announces-acceptances-into-irs-commercial-cle
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WeTheMarket WeTheMarket 6 months ago
UK, thanks for the feedback.
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uksausage uksausage 6 months ago
Yes still bullish but was disappointed they got “relegated”.
Focus on the business which seems to be ramping up, albeit slower than I expected.
Electric School buses are free, so school boards just need to pay for the charging infrastructure.
Their own platform seems to be focused on some sweet spots - shuttle buses in particular.

Waiting to start investing to see which companies will start showing profits
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WeTheMarket WeTheMarket 6 months ago
UK, what do you make of the following news. Are you still bullish?

Personally, I am very disappointed. They announced a reverse split last year to avoid the OTC, which resulted in the share price crashing. In April of this year they execute the reverse split, the share price crashes even more. Wouldn't we have been much better off without announcing and executing the reverse split?

Lightning eMotors, Inc. (ZEV) will change its trading symbol to ZEVY effective September 19, 2023, due to the listing of the company on an OTC market.
09/19/2023
Link
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Renee Renee 6 months ago
ZEV changed to ZEVY; Delisted from the NYSE to the OTC:

https://otce.finra.org/otce/dailyList?viewType=Additions
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WeTheMarket WeTheMarket 6 months ago
Link to taped webcast of Lightning eMotors presentation at the H.C. Wainwright 25th Annual Global Investment Conference on September 12, 2023 https://journey.ct.events/view/c8378916-f287-41d2-8fb6-07b4a7679e92
Link to Presentation https://d1io3yog0oux5.cloudfront.net/_e73acb198c6637f6dac6750c11b2ffce/lightningemotors/db/1082/9850/presentation/ZEV+Investor+Presentation+-+HC+Wainright+Conference+September+12+2023.pdf
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uksausage uksausage 7 months ago
looks like airport shuttles are becoming an active market, orders for STL and DFW may be soon,
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/92020097/st-louis-lambert-international-airport-stl-to-dep
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WeTheMarket WeTheMarket 7 months ago
Lightning eMotors Obtains ISO 9001:2015 Certification
September 07 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91988218/lightning-emotors-obtains-iso-9001-2015-certificat

Highlights
- A significant milestone for Lightning’s Quality Management System, ISO certification demonstrates Lightning’s commitment to quality throughout the company
- Certification strengthens Lightning’s ability to comply with commercial and regulatory requirements

Lightning eMotors (NYSE: ZEV), a leading provider of zero-emission, medium-duty commercial vehicles and electric vehicle (EV) technology for fleets, announced today it has achieved International Organization for Standardization (ISO) 9001:2015 certification for its companywide quality management system. ISO is the leading international standard that specifies the requirements for a quality management system (QMS).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230907714988/en/

“This certification further demonstrates our unwavering commitment to quality across our systems and processes and is a clear milestone for Lightning as we continue to mature and scale the organization to meet increasing demand for commercial electric vehicles,” said Lightning eMotors’ vice president of quality Troy Mai. “But this is just the beginning. We must now be diligent to maintain our processes as we nurture our culture of continuous improvement.”

The ISO 9001 audit evaluated Lightning’s processes against seven key parameters: engagement of people, customer focus, leadership, process approach, improvement, evidence-based decision making and relationship management. The resulting certification demonstrates Lightning’s commitment to its customers’ quality expectations and to its overall quality culture.

“I have always believed a segment-leading product is not possible without rigorous quality processes and highly skilled and dedicated people behind it, so I’m proud to see our investments have been recognized with ISO 9001 certification,” commented Tim Reeser, CEO and cofounder of Lightning eMotors. “Over the past decade, Lightning vehicles have amassed over 5 million zero-emission, real world miles, and our current-generation vehicles demonstrate our relentless investment in quality by delivering customer uptime that competes with mature gasoline and diesel fleets.”

All ISO 9001 accredited certifications are issued by independent, third-party registrars that are recognized by an independent accreditation body. Lightning’s audit was carried out by DNV, a respected registrar in the automotive, environmental and energy sectors.

"Lightning eMotors had a very successful initial audit, with only minor findings that were quickly addressed. The ISO 9001:2015 certificate was issued, and we look forward to our continued partnership," said Ismael Belmarez, technical manager, Business Assurance North America for DNV."

ISO 9001 certification recognizes Lightning’s prioritization of quality control and furthers its reputation as a leader in the commercial fleet vehicle sector. To learn how to electrify your fleet with Lightning eMotors, please visit lightningemotors.com.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle (ZEV) solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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WeTheMarket WeTheMarket 7 months ago
Lightning eMotors to Present at the H.C. Wainwright 25th Annual Global Investment Conference on September 12
September 06 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91976739/lightning-emotors-to-present-at-the-h-c-wainwrigh

Lightning eMotors, Inc. (NYSE: ZEV), a leading provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, today announced that the Company’s CEO, Tim Reeser, will present at the H.C. Wainwright 25th Annual Global Investment Conference on September 12.

What: H.C. Wainwright 25th Annual Global Investment Conference
Where: Lotte New York Palace Hotel, New York, NY
When: Tuesday, September 12, at 2:30 p.m. ET

A webcast of the presentation will be made available on the company’s investors page at ir.lightningemotors.com/.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230906120431/en/

Brian Smith
investorrelations@lightningemotors.com
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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uksausage uksausage 7 months ago
why hasnt this got more visibility
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91890290/east-zion-initiative-welcomes-lightning-emotors-ze
national parks looking for national rollout ZEV already in 2
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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Monksdream Monksdream 7 months ago
ZEV new 52 week low
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WeTheMarket WeTheMarket 7 months ago
LIGHTNING EMOTORS REPORTS FINANCIAL RESULTS FOR SECOND QUARTER 2023
AUGUST 14, 2023
Link to Press Release https://ir.lightningemotors.com/news-events/press-releases/detail/115/lightning-emotors-reports-financial-results-for-second
Link to Presentation https://d1io3yog0oux5.cloudfront.net/_af835d8b13690450c4cdaee37e8a9b46/lightningemotors/db/1111/9848/earnings_presentation/Q2+2023+Earnings+Presentation+vFinal.pdf
Link to Webcast https://event.choruscall.com/mediaframe/webcast.html?webcastid=QKMFpnc5

Highlights
- GAAP revenue of $7.9 million, the second highest quarterly revenue in company history
- Adjusted revenue of $8.2 million from sales of 70 units, excluding $0.3 million of recall-related costs
- Produced 46 units during the quarter, consisting of vehicles, powertrains, and mobile DC fast chargers
- Nearly 5 million driven miles, compared to 2.2 million a year ago
- Full year revenue guidance of $35-45 million

LOVELAND, Colo.--(BUSINESS WIRE)-- Lightning eMotors, a leading provider of zero-emission powertrains and medium-duty and specialty commercial electric vehicles for fleets, today announced consolidated results for the second quarter ended June 30, 2023.

“The second quarter represented the second highest quarterly revenue in our history,” stated Tim Reeser, Lightning Co-founder and CEO. “With the supply issues and associated disruption from the Romeo battery issue now behind us, we are ramping production of our new ZEV4 trucks and buses to meet the growing demand and charting a path towards positive gross margin. We also delivered the first customer units of our Mobile DC Fast Charger and are seeing strong interest in this product.”

Continued Reeser, “During the end of Q2 and into the second half of 2023, we have seen our cash needs reduce materially as we sell through the finished goods inventory built over the last several quarters and use the existing raw materials inventory to build to meet new orders. In addition, we continue to see the benefits of previous cost reduction actions and are well positioned from an inventory perspective to meet our full-year guidance with minimal incremental purchases. While we convert our inventory to cash, we will also continue to seek additional sources of capital in order to strengthen our overall liquidity outlook.”

GAAP revenue was impacted by $0.3 million from the booking of apportioned cost of an accommodation we made to support our customers, as we bought back vehicles with defective Romeo batteries.

Second Quarter 2023 Financial Results

Second quarter production was 46 units, down from 74 units in the first quarter of 2022. Unit sales were 70, compared to 36 in the year-ago quarter. Second quarter revenue was $7.9 million, compared to $3.5 million for the prior year quarter. Excluding customer refunds related to the Romeo battery recall, adjusted revenue was $8.2 million.

Second quarter net loss was $21.4 million, or $3.70 per share, compared to net income of $35.7 million, or $6.94 per diluted share, during the second quarter of last year.

Second quarter adjusted EBITDA loss was $17.1 million, compared to a loss of $13.9 million during the same period in the prior year. Adjusted revenue and adjusted EBITDA are non-GAAP measures. See explanatory language and reconciliation to the GAAP measures below.

Guidance

Based on current demand and supply conditions, the Company expects:

- 2023 revenue to be in the range of $35 million to $45 million
- 2023 unit sales to be in the range of 300 to 350 units
- 2023 unit production to be in the range of 200 to 230 units

We have reduced the top end of our annual revenue guidance from $50 million to $45 million and also lowered the top end of the unit sales accordingly. We reduced the top end of the revenue and unit sales to reflect a change made to conserve cash. We are now only ordering inventory for firm orders, and while we may receive additional orders during the second half of this year we may not be able to obtain the inventory needed to complete the builds in the fourth quarter. We also lowered the unit production range to reflect both the change to a build-to-order model and because we still have a material amount of finished goods inventory to sell.

Webcast and Conference Call Information

Company management will host a conference call on Monday, August 14, 2023, at 4:30 p.m. Eastern Time, to discuss the Company's financial results.

Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s second quarter update presentation by logging onto the Investor Relations section of the Company's website at ir.lightningemotors.com.

The conference call can be accessed live over the phone by dialing (877) 407-6910 (domestic) or +1 (201) 689-8731 (international).
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Monksdream Monksdream 8 months ago
Lightning eMotors Inc NYSE: ZEV

GoSymbol lookup
Industrials : Machinery | Small Cap GrowthCompany profile
Lightning eMotors, Inc. designs and manufactures zero-emission vehicles (ZEV) and charging infrastructure solutions for commercial fleets, large enterprises, original equipment manufacturers, and governments. Its products range from cargo vans, transit and shuttle buses, school buses, specialty work trucks, ambulances and electric power trains for school buses, transit buses and motorcoaches. It offers a range of vehicles, including passenger vehicles, cargo vehicles, ambulances, and others. Its Lightning ZEV3 Transit van platform is equipped with an electric drivetrain and, depending on the selected battery configuration, offers a 140-mile to 200-mile range. Its Lightning ZEV4 platform can be outfitted as a shuttle bus with a capacity of up to 18 passengers in many applications, such as airport parking, college and corporate campuses, and senior communities, or as a work truck, as a cargo van or box truck for middle- and last-mile deliveries, or as a Type 3 ambulance.
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WeTheMarket WeTheMarket 8 months ago
Form 8k
7/27/2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91664164/form-8-k-current-report

Item 1.01 Entry into a Material Definitive Agreement

On July 24, 2023, Lighting eMotors, Inc. (the “Company”) entered into a Confidential Settlement Agreement and Mutual Release (the “Settlement Agreement”) with eMatrix Energy Systems, Inc. (“eMatrix”) and Linamar Corporation (“Linamar”) in the matter of eMatrix Energy Systems, Inc. v. Lightning eMotors, Inc. v. eMatrix Energy Systems, Inc. and Linamar Corporation, Case No. 2021-191769 (Oakland County Circuit Court, Michigan) (the “Action”).

The Settlement Agreement settles all claims asserted or that could have been asserted in the Action by eMatrix against the Company, and those asserted or that could have been asserted by the Company against eMatrix and Linamar, related to eMatrix’s sales of electric vehicle battery packs to the Company.

Pursuant to the Settlement Agreement, Linamar, on behalf of itself and eMatrix, has agreed to pay the Company $3.0 million in cash, and the Company, eMatrix and Linamar executed mutual releases and agreed to dismiss the Action with prejudice without any party admitting fault, liability or wrongdoing.
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WeTheMarket WeTheMarket 8 months ago
Lightning eMotors to Report Second Quarter 2023 Earnings on August 14
July 26 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91651025/lightning-emotors-to-report-second-quarter-2023-ea

Lightning eMotors, Inc. (NYSE: ZEV), a leading provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, today announced that the Company will release its second quarter 2023 results after the market closes Monday, August 14, 2023, followed by a conference call to be held at 4:30 p.m. Eastern Time the same day.

Interested investors and other parties can listen to a webcast of the live conference call by visiting the Investor Relations section of the Company's website at ir.lightningemotors.com.

The conference call can be accessed live over the phone by dialing 877-407-6910 (domestic) or +1-201-689-8731 (international).

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230726198452/en/

Brian Smith
investorrelations@lightningemotors.com
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stock1ace1 stock1ace1 8 months ago
Zev $4.16
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stock1ace1 stock1ace1 8 months ago
Zev $4.03
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uksausage uksausage 9 months ago
Doesn't sound like a lot but the new platform ZEV_4 was 40 of these 46 units compared to only 5 in Q1
https://ir.lightningemotors.com/news-events/press-releases/detail/113/lightning-emotors-announces-production-of-46-units-in-the

they need to start doing one a day at least
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WeTheMarket WeTheMarket 9 months ago
UK, agree. Several manufacturers of EV chargers have announced that they will add Tesla's NACS connectors to their chargers in the US market. It is likely to become the standard in the US, and all companies will gradually shift to NCAS connectors in the US, including Lightning eMotors.

Quote "Blink Charging BLNK.O said on Monday it would launch a new fast charger with Tesla's connector, as did ChargePoint Holdings Inc (CHPT.N) and Tritium DCFC Ltd (DCFC.O). EVgo said it will add NACS connectors to its fast-charging network." Source https://www.reuters.com/business/autos-transportation/ev-charger-makers-guardedly-look-adopt-tesla-standard-2023-06-12/
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uksausage uksausage 9 months ago
Hi WTM
missed this one, I wonder if ZEV are going to join the Tesla compatible crowd? For trucks like this it may be necessary? 80kW charging at a TEsla Super charger my be cheaper than installing high voltage systems at your own depot.
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WeTheMarket WeTheMarket 9 months ago
Lightning eMotors Announces Production Launch of Next-Gen Lightning ZEV4™ Work Trucks
June 15, 2023
https://lightningemotors.com/lightning-emotors-announces-production-launch-of-next-gen-lightning-zev4-work-trucks/

- Lightning’s GM-based platform allows the production of highly customized all-electric work trucks
- Production launch of next-gen Lightning ZEV4 offers multiple vehicle types built on a proven platform

LOVELAND, Colo., June 15, 2023 – Lightning eMotors (NYSE: ZEV), a leading provider of zero-emission, medium-duty commercial vehicles and electric vehicle (EV) technology for fleets, announced today a production launch of its next generation General Motors (GM)-based Lightning ZEV4™ work trucks. This announcement follows the company’s recent announcements of accelerated ZEV4 production to meet customer demands for Class 4 school buses and shuttle buses built on the same popular platform.

Lightning is offering the ZEV4 for several vehicle applications, including, but not limited to box trucks, stake bed trucks, utility trucks, dump bed trucks, and daily work/landscaping trucks, in addition to cargo delivery vehicles, shuttle buses, school buses and more.

“Success in the commercial vehicle electrification market frequently revolves around providing customized products to meet the specific use cases of customers. This is where we have carved our niche,” said Lightning eMotors CEO Tim Reeser. “The fact that our trusted ZEV4 platforms can be built to accommodate such a broad set of applications is a huge benefit to our customers and positions Lightning well to be the vehicle manufacturer of choice for the growing medium-duty commercial vehicle market.”

The versatile Lightning ZEV4 model comes equipped with 120 kWh batteries located safely within the frame rails, delivering 241 horsepower, 790 lb-ft of torque and up to 130 miles of range as well as improved weight distribution for better handling and improved safety. The Lightning ZEV4 is capable of Level 2 AC and 80kW DC fast charging.

To help accelerate fleet vehicle electrification efforts, a number of state and federal level funding programs are available across North America to help offset the cost significantly.

- In the United States, state-level programs, including California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), New York’s Truck Voucher Incentive Program (NYTVIP), New Jersey’s Zero-Emission Incentive Program (NJZIP), and Colorado’s Clean Fleet Vehicle & Technology Grant Program, among others, can provide up to $100,000 in incentives per Class 4 vehicle.
- Federally, the United States’ passing of the $1.2 trillion Infrastructure and Jobs Act, and incentives that are part of the 2022 Inflation Reduction Act – including the Commercial Clean Vehicle Credit – have provided billions in new funding for both commercial EV acquisition and EV infrastructure.
- Canadian incentive programs, including Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program (iMHZEV), the Zero-Emission Transit Fund and the Zero Emission Vehicle Infrastructure Program, can not only help offset the cost of fleet vehicle electrification to nearly zero as many of these programs can be stacked, they also provide funding to accelerate the provision of EV charging solutions, both mobile (such as Lightning Mobile) and as installed infrastructure.

“There has never been a better time for Class 4 work truck operators to upgrade their fleets to zero-emission vehicle technology,” said Lightning eMotors CRO Kash Sethi. “Aggressive funding programs – many of which can be stacked to optimize both purchase subsidies and tax incentives – combined with advanced data tracking and insights capabilities and the reliability and proven performance of our GM-based Lightning ZEV4 create a near-perfect environment for operators to act.”

Lightning’s ZEV4 platform is compatible with a variety of bodies from manufacturers including, but not limited to, Knapheide, Rockport Trucks, Brown Industries, and Morgan Corporation. At current production volumes, ZEV4 work trucks are typically available for delivery four-to-six months from the order date.

To learn how to electrify your work truck fleet with Lightning eMotors, please visit lightningemotors.com.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle (ZEV) solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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WeTheMarket WeTheMarket 10 months ago
126 Lightning eMotors ZEVs heading to Ontario commercial auto distributor
May 16, 2023
https://electricautonomy.ca/2023/05/16/126-lightning-emotors-zevs-macnab/

Macnab EV Sales is set to receive 126 electric cargo vans, passenger vans and shuttle buses from Lightning eMotors by the end of 2023

Lightning eMotors, a leading provider of zero-emission commercial electric vehicles, is partnering with Ingersoll, Ont.-based Macnab EV Sales Corp. to bring 126 zero-emission vehicles (ZEVs) to the province by the end of this year.

This deal marks a significant milestone for both companies. This is the first time Macnab, a commercial vehicle distributor, is entering the commercial EV market, while Colorado-based Lightning eMotors is strengthening its presence in the Canadian market.

“It’s an honour — and a testament to the quality and reliability of our vehicles — to receive this order from Macnab as they begin their foray into commercial EVs,” said Tim Reeser, CEO of Lightning eMotors in a press statement. “We are proud they chose Lightning vehicles for their customer EV offering and look forward to getting these vehicles into customers’ hands this year as we further expand our footprint in Canada.”

The 126-vehicle deal includes a fleet of Lightening’s ZEV3 cargo and passenger vans and ZEV4 shuttle buses.

Deliveries of Lightning’s ZEV3 vans to Macnab are already starting and the full order of vehicles is to be complete by the end of this year. A Lightning eMotors ZEV3 Transit Cargo Van will be available for test drives this week at the EV & Charging Expo in Toronto.
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WeTheMarket WeTheMarket 10 months ago
Form 8-k, Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
June 2, 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91234974/current-report-filing-8-k
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WeTheMarket WeTheMarket 10 months ago
Vanderbilt University to Deploy Lightning eMotors ZEV4™ Electric Shuttle Buses for Intercampus Transit
May 18 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91103723/vanderbilt-university-to-deploy-lightning-emotors

Highlights
- Lightning eMotors supplying Vanderbilt’s first electric shuttles as part of the university’s carbon neutrality goals
- Vehicles expected to be delivered and deployed in Q2 2023

Lightning eMotors (NYSE: ZEV), a leading provider of zero-emission, medium-duty commercial vehicles and electric vehicle technology for fleets, announced today that it is supplying to Vanderbilt University six Lightning ZEV4™ electric shuttle buses. The shuttles are expected to be delivered and deployed in Q2 2023 for the intercampus transportation service, VandyRide.

The zero emission shuttle buses are built on the GM-based Lightning ZEV4 platform and feature 120 kWh of thermally-managed Proterra battery packs that deliver up to 130 miles of range and support both Level 2 AC and DC fast charge capability. Vanderbilt’s vehicles ride on a 159-inch wheelbase and have been upfitted with shuttle bus bodies from Forest River to carry 14 passengers each.

“A top 20 university nationally, Vanderbilt is renowned for its transformative approach to education and research. It is an honor for us to be a chosen fleet electrification provider as they transform their intercampus student transportation to zero-emission, all-electric platforms,” said Jeremy Hiler, sales director, Eastern US at Lightning eMotors. “We are confident drivers, passengers and fleet managers will appreciate the electric performance, quiet ride and reduced maintenance, and of course, the environmental benefits of the Lightning ZEV4.”

Vanderbilt is leasing the initial pilot run of six vehicles from Forest River dealer Carpenter Bus Sales, with charging infrastructure supported by Vanderbilt partner Electrada. The vehicles will also be equipped with Lightning’s leading EV fleet telematics software, Lightning Insights. This real-time telematics and charge management suite features an API for seamless integration with Electrada’s charging infrastructure.

“Vanderbilt is committed to lowering its carbon footprint, so switching to electric vehicles in our shuttle fleet is a top priority,” said Lindsey Ganson, assistant director of mobility at Vanderbilt University. “We’re so excited to have our Lightning ZEV4 shuttles in action before the fall semester begins, and we are looking forward to working with Lightning.”

This EV deployment further establishes Vanderbilt University as a sustainability leader among U.S. colleges. The university recently “flipped the switch” on the 35-megawatt Vanderbilt I Solar Farm in Bedford County, Tennessee, which was first announced in 2020. The location will reduce the majority of the university’s greenhouse gas emissions produced indirectly from electricity purchased from Nashville Electric Service and TVA. A planned second solar farm in Moore County, Tennessee, will supply enough renewable energy to mitigate the remaining emissions.

In 2021, Vanderbilt became the first member of the Association of American Universities to achieve carbon neutrality through its own renewable energy initiatives and a carbon pollution permit collaboration with Climate Vault. Recently, the university announced a new collaboration with Clearloop to further reduce its carbon footprint by investing in additional solar energy projects, the first of which will be located in Batesville, Mississippi. The transition to these new EV shuttles will help Vanderbilt further reduce its direct emissions.

To learn how to electrify your fleet with Lightning eMotors, please visit lightningemotors.com.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle (ZEV) solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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WeTheMarket WeTheMarket 10 months ago
Lightning eMotors Reports Financial Results for First Quarter 2023
May 17 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91091556/lightning-emotors-reports-financial-results-for-fi

Link to Q1 2023 Earnings Presentation https://d1io3yog0oux5.cloudfront.net/_b8d4a46c48d8e19113966364bcf68884/lightningemotors/db/1111/9843/earnings_presentation/Q1+2023+Earnings+Presentation+v1.pdf

Link to Q1 2023 Earnings Webcast https://event.choruscall.com/mediaframe/webcast.html?webcastid=NUyz5bfF

Highlights
- GAAP revenue of $1.3 million, after $2.3 million of recall-related costs
- Adjusted revenue of $3.6 million from sales of 29 units; produced 53 units during the quarter
- Today announced funding commitment with Yorkville Advisors to provide up to $50 million of capital
- Recent contract to sell 126 Lightning ZEV3 and ZEV4 cargo vans, passenger vans and shuttle buses to new Canadian customer expected to contribute to Q2 and Q3 revenue
- Strong order momentum in Type A zero-emission school buses through partnership with Collins Bus

Lightning eMotors, Inc., a leading provider of zero-emission powertrains and medium-duty and specialty commercial electric vehicles for fleets, today announced consolidated results for the first quarter ended March 31, 2023.

“I’m very excited about the progress we made in Q1 on our portfolio transition. Customer feedback on our new Class 4 vehicles built on the GM platform has been very positive,” stated Tim Reeser, Lightning Co-founder and CEO. “The large Macnab order announced Friday, plus sizeable orders for Type A school buses from Collins Bus Corporation are driving growth in our business in the near term. We are also seeing strong demand momentum for shuttle buses and other Class 4 zero-emission vehicles. Further, initial customer response to our Lightning Mobile DC Fast Charger has been tremendous. We believe we are on track to achieve our stated annual revenue guidance of $35-50 million. As government incentive programs take hold, we are helping customers navigate the application process and are seeing orders. While focusing on the revenue growth opportunities before us, we also have taken actions to reduce our expense structure and secure new growth capital.”

“The lower GAAP revenue resulted from booking the apportioned cost of an accommodation we made to support our customers, as we bought back vehicles with defective Romeo batteries. Many of those customers have placed new orders with us, and some have already received their new vehicles in Q2.”

“Today we announced an agreement with Yorkville Advisors that will provide us with up to $50 million of capital that we plan to use to fund our growth strategy,” said David Agatston, CFO of Lightning. “We believe this funding commitment from Yorkville is a strong endorsement of Lightning’s ability to attract new capital and provide returns for investors.”

First Quarter 2023 Financial Results

First quarter production was 53 units (vehicles and powertrains), down from 74 units in Q1 2022. Unit sales were 29, compared to 68 in the year-ago quarter. First quarter revenue was $1.3 million, compared to $5.4 million for the prior-year quarter. Excluding customer refunds, adjusted revenue was $3.6 million.

First quarter net loss was $23.4 million, or $4.89 per diluted share, compared to net loss of $10.8 million, or $2.86 per diluted share, during the first quarter of last year.

First quarter adjusted EBITDA loss was $19.7 million, compared to a loss of $14.8 million during the same period in the prior year. Adjusted revenue and adjusted EBITDA are non-GAAP measures. See explanatory language and reconciliation to the GAAP measures below.

Guidance

Based on current demand and supply conditions, the Company reiterates its prior 2023 guidance:

- 2023 revenue to be in the range of $35 million to $50 million
- 2023 unit sales to be in the range of 300 to 400 units
- 2023 unit production to be in the range of 400 to 450 units

Webcast and Conference Call Information

Company management will host a conference call on Wednesday, May 17, 2023, at 8:30 a.m. Eastern Time, to discuss the Company's financial results.

Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s first quarter update presentation by logging onto the Investor Relations section of the Company's website at ir.lightningemotors.com.

The conference call can be accessed live over the phone by dialing (877) 407-6910 (domestic) or +1 (201) 689-8731 (international).

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at lightningemotors.com.
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WeTheMarket WeTheMarket 10 months ago
Lightning eMotors Announces a Delay in its First Quarter 2023 Earnings Release
May 14 2023 - 11:51PM
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/91052272/lightning-emotors-announces-a-delay-in-its-first-q
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BottomBounce BottomBounce 11 months ago
$ZEV vs IDEX https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171904117
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uksausage uksausage 11 months ago
The incentives to buy EV School Buses effective make them free to the school district (apart from infrastructure for the chargers).
Hope many more are signing up, lets run taht production lien at 100% for a few months, hope GM can supply the chassis...
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WeTheMarket WeTheMarket 11 months ago
My Tour of Lightning eMotors
By David Gines. Dave is an electrical engineer working at Keysight Technologies, specializing in algorithms for data analysis.
May 4, 2023
https://cleantechnica.com/2023/05/04/my-tour-of-lightning-emotors/
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WeTheMarket WeTheMarket 11 months ago
STEER and Lightning eMotors Announce Partnership to Upgrade Commercial Electric Vehicles to Autonomous Vehicles
May 02 2023
PR Newswire (US)
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90927732/steer-and-lightning-emotors-announce-partnership-t
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WeTheMarket WeTheMarket 11 months ago
Lightning eMotors Announces Deployments and Production Ramp up of Electric School Buses Built on the GM-Based Lightning ZEV4™ Platform
May 02 2023
Business Wire
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90925971/lightning-emotors-announces-deployments-and-produc
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WeTheMarket WeTheMarket 11 months ago
Lightning eMotors Showcases Specialized Vehicle Electrification Capabilities with EV School Bus and Ambulanceat ACT Expo
•See a ZEV4 Class A school bus and ZEV3 Delivery Van in Lightning booth #5611. •Experience a Ride & Drive in a Lightning-powered ZEV3 Ambulance. •See demonstrations of Lighting Insights, Lightning Mobile and the Lightning Fleet Planner. •Talk with company executives and engineers onsite, May 1-4
May 1, 2023
https://stnonline.com/industry-releases/lightning-emotors-showcases-specialized-vehicle-electrification-capabilities-with-ev-school-bus-and-ambulanceat-act-expo/
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WeTheMarket WeTheMarket 11 months ago
The Boring Old Box Truck Gets the Tesla Treatment
Federal and state incentives are bringing the cost of ownership in line with—or below—that of diesel rigs.
April 28, 2023
https://www.bloomberg.com/news/articles/2023-04-28/electric-delivery-trucks-costs-fall-thanks-to-ira-tax-breaks
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WeTheMarket WeTheMarket 11 months ago
Lightning eMotors to Report First Quarter 2023 Earnings on May 15
April 26 2023 - 08:30AM
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90862055/lightning-emotors-to-report-first-quarter-2023-ear

Lightning eMotors, Inc. (NYSE: ZEV), a leading provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, today announced that the Company will release its first quarter 2023 results before the market opens on Monday, May 15, 2023, followed by a conference call to be held at 8:30 a.m. Eastern Time the same day.

Interested investors and other parties can listen to a webcast of the live conference call by visiting the Investor Relations section of the Company's website at ir.lightningemotors.com.

The conference call can be accessed live over the phone by dialing 877-407-6910 (domestic) or +1-201-689-8731 (international).

Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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WeTheMarket WeTheMarket 11 months ago
Lightning eMotors to effect a 1-for-20 Reverse Stock Split
April 24 2023 - 04:05PM
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90840051/lightning-emotors-to-effect-a-1-for-20-reverse-sto
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uksausage uksausage 12 months ago
why couldn't they say hoa many systems they delivered.

makes sense if you have high inventory to cut back production so long as you meet your deliveries.

deliveries mean cash coming in - production is all about costs.

I have a feeling the market won't see it as positive without that number
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WeTheMarket WeTheMarket 12 months ago
Lightning eMotors Announces Production for the First Quarter of 2023
April 06 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90719857/lightning-emotors-announces-production-for-the-fir

Lightning eMotors, Inc. (NYSE: ZEV), a leading provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, today announced that it produced 53 units, consisting of vehicles and powertrains, in the first quarter of 2023.

“We entered the first quarter with significant finished goods inventory, reducing our production requirements for the quarter. We expect our production to increase as we respond to demand for our new ZEV4 platform and see the anticipated impact of the new incentives on customer demand for our products,” said Tim Reeser, CEO and Co-Founder.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle solutions for commercial fleets since 2018 – including cargo and passenger vans, ambulances, shuttle buses, Type A school buses, work trucks, city buses, and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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uksausage uksausage 1 year ago
great press release.
need one of these a month to demonstrate how they are growing and the mixed array of vehicles they can ship
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WeTheMarket WeTheMarket 1 year ago
ACE Parking Surpasses One Million All-Electric, Zero-Emission Miles with Lightning eMotors Lightning ZEV4™ & Lightning ZEV5™ Shuttle Buses
March 21 2023
https://ih.advfn.com/stock-market/NYSE/lightning-emotors-ZEV/stock-news/90560584/ace-parking-surpasses-one-million-all-electric-ze

- ACE Parking deployed 24 vehicles to ACE’s San Diego Airport fleet in 2020, creating the largest electric airport shuttle fleet in the U.S.
- The fleet has mitigated over 1,050 tons of carbon emissions from the atmosphere
- Deployment of these vehicles was partially funded by CARB’s HVIP program

Lightning eMotors (NYSE: ZEV), a leading provider of zero-emission, medium-duty commercial vehicles and electric vehicle technology for fleets, announced today that Lightning customer ACE Parking’s San Diego Airport fleet of ZEV4 and ZEV5 shuttle buses have surpassed one million all-electric, zero-emission miles.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230321005163/en/

“ACE Parking’s San Diego Airport fleet is a success story not just for Lightning, but for fleet vehicle electrification, and it’s been an honor to be ACE’s chosen partner in this important deployment,” said Lightning CRO Kash Sethi. “It’s always such a point of pride—and a testament to our shared commitment to providing clean, safe and sustainable transportation—to see one of our fleets pass the one-million-mile mark. We’re looking forward to many more miles with ACE.”

Lightning delivered 16 Class 4 ZEV4 and 8 Class 5 ZEV5 electric shuttle buses to ACE Parking in 2020. Since deployment, the fleet has transported more than 1.5 million passengers over one million miles and mitigated over 1,050 tons of CO2 emissions from the atmosphere. The fleet is supported by Lightning Insights™, Lightning’s leading EV-specific telematics service that monitors vehicle location, efficiency, charge status and more in real time. The ZEV4 and ZEV5 zero-emission shuttle buses have averaged 41.1 and 34.4 MPGe respectively, over 5x more efficient than comparable gasoline shuttles, such as the Ford E-450 with 7.3 mpg and the Ford F-550 with 5.9 mpg.

“Lightning has been a good partner for us, providing strong service and support throughout the deployment despite ongoing gen1-technology hurdles,” said Steve Burton, president of ACE Parking. “We’re very happy with the environmental benefits of our Lightning fleet, while our drivers and passengers enjoy the quiet, refined performance only an EV can deliver.”

Lightning is now delivering the third generation of their ZEV4 shuttle bus with additional benefits, such as the batteries fully contained between the frame rails, redundant parking brake, push button shifting and more.

The ACE Parking vehicles participated in the California Air Resources Board’s (CARB) Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP). HVIP provides point-of-sale discounts to organizations and companies for the purchase of low- or zero-emission commercial fleet vehicles. To date, program funding has helped more than 11,000 clean vehicles begin operation across the state, speeding up California’s electric transition, cutting emissions and improving air quality.

To learn how to electrify your fleet with Lightning eMotors, please visit lightningemotors.com.

About Lightning eMotors

Lightning eMotors (NYSE: ZEV) has been providing specialized and sustainable fleet solutions since 2009, deploying complete zero-emission-vehicle (ZEV) solutions for commercial fleets since 2018. In that time, we have deployed a variety of vehicle classes and applications including but not limited to cargo and passenger vans, ambulances, transit and shuttle buses, school buses, specialty work trucks, and electric powertrains for school buses, transit buses and motor coaches. The Lightning eMotors team designs, engineers, customizes, and manufactures zero-emission vehicles to support the wide array of fleet customer needs with a full suite of control software, telematics, analytics, and charging solutions to simplify the buying and ownership experience and maximize uptime and energy efficiency. To learn more, visit our website at https://lightningemotors.com.
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WeTheMarket WeTheMarket 1 year ago
Lightning eMotors (ZEV) Q4 2022 Earnings Call Transcript
Mar. 13, 2023 11:12 AM
https://seekingalpha.com/article/4587010-lightning-emotors-zev-q4-2022-earnings-call-transcript

Q4: 2023-03-13 Earnings Summary
EPS of -$0.31 misses by $0.05 | Revenue of $4.33M (2.68% Y/Y) misses by $5.88M

Lightning eMotors Inc. (NYSE:ZEV) Q4 2022 Earnings Conference Call March 13, 2023 8:30 AM ET

Company Participants

Timothy Reeser - Chief Executive Officer

Kash Sethi - Chief Revenue Officer

David Agatston - Senior Vice President, Chief Financial Officer

Brian Smith - Vice President, Investor Relations

Conference Call Participants

Colin Rusch - Oppenheimer & Co.

Mike Shlisky - DA Davidson

Sherif El Sabbahy - Bank of America

Abhi Sinha - Northland Securities

Michael Ward - The Benchmark Company

Operator

Good morning. Welcome to Lightning eMotors fourth quarter 2022 earnings call.

At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press star, zero on your telephone keypad. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Brian Smith, Vice President, Investor Relations for Lightning eMotors. Thank you, you may begin.

Brian Smith

Thank you Operator, and thanks for joining us. On the call today are Lightning’s co-Founder and CEO, Tim Reeser; Chief Revenue Officer, Kash Sethi; and CFO, David Agatston. Ahead of this call, Lightning issued our fourth quarter 2022 earnings press release and presentation deck, which we will reference today. These can be found on the Investor Relations section of our website at lightningemotors.com.

On this call, management will be making statements based on current expectations and assumptions which are subject to certain risks and uncertainties. Actual results could differ materially from these forward-looking statements due to risk factors that are listed in today’s earnings release and in our filings with the SEC, which can also be found on our website. We assume no duty to update any forward-looking statements except as required by law.

Today’s presentation also includes non-GAAP financial measures. Please refer to the information contained in today’s earnings press release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP measures.

With that, let me turn it over to Tim.

Timothy Reeser

Thank you Brian, and thanks to everyone for joining us today. I’ll start off on Slide 4 with today’s agenda. I will begin with an overview of Lightning, some highlights from the quarter, a discussion of our progress on managing our supply chain, and a discussion of the narrowing of our product focus. Kash will then provide an update on products, markets and incentives, and David will wrap up with a financial overview.

Moving to Slide 5, a summary of the quarter, Lightning produced a record 128 vehicles and power trains in the fourth quarter, 23% higher than our previous record of 104 achieved in Q3. As we announced in January, revenue in the quarter was impacted by quality issues with Romeo batteries plus customer financing delays and the timing of incentives.

Next, we will discuss our view of market forces and momentum and our refined product development focus on certain segments and applications most favored by government incentives and where we currently have a competitive advantage, specifically Class 4 trucks and buses plus the Lightning Mobile DC fast charger we just introduced, and finally we’ll discuss how this narrowing of our focus will allow us to reduce our expenses and cash burn.

Moving to Slide 6, we offer a full range of fleet electrification solutions from vehicles and service to power train technology, re-powering of pre-owned ICE vehicles, energy solutions for fixed and mobile charging including installation and support, and finally our Lightning Insights telematics and analytics offering which provides fleet intelligence, including driving efficiency, charging optimization and predictive maintenance.

Moving to Slide 7, let’s discuss the supply chain landscape. On the chassis side, our work with GM is providing a sufficient and predictable supply of chassis to serve our targeted market segment of Class 4 trucks and buses. The GM chassis is preferred by most Type A school bus providers and we are currently the only OEM with an electrified solution on this platform, plus our progress on our purpose-built Lightning E chassis is very exciting as we will begin initial testing in the first half of this year and volume production next year.

On the battery front, we have sufficient quantities of high quality batteries from Proterra and CATL for our near term needs. I will discuss the Romeo battery issue shortly.

Beyond chassis and batteries, we continue to work to diversify our supply chain with new higher production and lower cost suppliers to help reduce the cost and lead times we are seeing for components, such as high voltage heaters, high voltage air conditioners and heat pumps, and thermal management parts.

Turning to Slide 8, Lightning has been working closely with multiple battery pack suppliers for the last six years as our broad range of applications and customizations require multiple battery suppliers, configurations and technical specifications. Many early battery pack suppliers struggled with quality and availability and vehicle OEMs and their customers have had to work our way through that. Lightning has built a significant field service team both internally and through partners to manage the early challenges. We are having excellent success now with our current battery suppliers, Proterra and CATL, and in fact have built a proprietary safety system on the CATL packs in partnership with CATL for commercial vehicle applications. We are actively analyzing, testing and validating new battery suppliers to meet our requirements, which include best-in-class safety systems, Buy America compliance, modular support and fit for a wide variety of chassis configurations, and best-in-class energy and power density.

Turning to Slide 9, in January we announced revenue constraints in Q4 due primarily to defects we identified in the Romeo batteries. While we expected Romeo and its parent company, Nikola to support us and our customers and honor the warranty obligations, as they publicly stated they would, they are not. We filed suit against Nikola and Romeo on March 9. This battery issue directly and significantly impacted Q4 revenue and is expected to impact our revenues in Q1 and Q2 of this year as we lost planned sales of our legacy Class 4 40-450 base platform.

Looking forward, our new line-up of products, including all of our GM-based Class 4 products and our Lightning Mobile DC fast vehicle charger, all use high quality batteries from Proterra and CATL, of which we have more than ample supply. We are working with customers to convert our backlog of orders for the legacy Class 4 platform that had Romeo batteries to the new GM platform with Proterra batteries. While we are having some success and are optimistic given what we are currently seeing with the performance of the platform, we may not be able to replace all these orders, and this process is likely to impact the amount and timing of our revenue for the first half of the year.

Turning to Slide 10, early on our product development strategy prioritized optionality as we waited for more clarity on the market and the regulatory landscape. That clarity has arrived and fortunately the landscape now favors a market segment where we have an advantage in terms of both experience and the investments we have recently made. The Inflation Reduction Act is driving market momentum for Class 4 vehicles. The $40,000 IRA incentive on Class 4 and above is leading to strong demand for Class 4 school buses, shuttle buses and work trucks. School buses are seeing particularly strong momentum in terms of both incentives and public sentiment.

We will continue to participate in the Class 3 business with a focus on passenger vans and ambulances and focusing less on last mile delivery. Our Class 3 platforms are already designed and where it makes sense, we will produce vehicles and capitalize on the investments we have made. We will also focus on our Lightning Mobile DC fast charger which we unveiled last month and for which we are already taking orders. This can be a game-changing product, especially for customers wishing to electrify their fleets but who are experiencing delays in getting fixed charging installed. With this more focused product development and market strategy, we believe we can now lean out our expense base without sacrificing growth potential, which David will go into a little later.

Turning to Slide 11 which summarizes our product development focus for this year, Class 4 buses and trucks built on the GM platform with Proterra batteries and an optimized next-generation power train plus the mobile charger I spoke of. While the supply chain environment remains dynamic, we are not currently supply limited for components to build these products. We have delivered our first GM Class 4 vehicles to customers and the customer response has been positive. The platform rollout should continue in Q2 with a strong expected ramp in the second half of the year.

Initial customer response for our mobile charger has also been positive. I’m excited about this product and its prospects and proud of our development team for the job they have done because this product can be an electrification bridge for our customers as they build out or procure fixed charging capability to meet their charging needs. Although we expect the sales cycle to be a little slower given the newness of the product and the high ASP, we are working to accelerate it by helping customers rent or lease the product through our finance and lease partners.

Turning to Slide 12, you can see how the new North America and U.S. incentive programs stack up to provide very significant opportunities for customers to buy Lightning electric commercial vehicles at a much lower investment, de-risking the purchase and allowing them to electrify their fleets at a much faster pace. Most of these programs have launched in the last six months, so we believe the ability to stack these incentives will result in a demand inflection in the near term as customers align their purchasing plans with these new incentives.

Turning to Slide 13, you can see the current competitive landscape. Although there has been a lot of noise, we show here that there is little actual competition in the key markets we are focusing on. It is also important to note that many of the products listed from competitors are likely not design complete or on the road yet. We believe that we are well ahead of the competition with our completed designs and real world miles. Note that we believe we are on the only EV OEM today with an electrification solution for ambulances and Class 3 passenger shuttles.

Now I’ll turn it to Kash to provide an update of our products, markets, sales momentum, and a look at how the incentives are stacking up to drive market acceleration.

Kash Sethi

Thank you Tim. I’ll begin on Slide 15.

First off, we continue to be strongly positioned in our target markets because many of our peers are still in early prototype development and testing while we continue to deploy our zero emission vehicles in real world environments across multiple market verticals and commercial vehicle applications. Our deployed fleet of over 450 vehicles recently crossed a collective 3.7 million miles on the road, a number growing rapidly every week. Based on our data and estimates, our vehicles have spent more than 50,000 hours on the road moving goods and people without emissions. Although deploying new technologies isn’t easy and some bumps are expected, we continue to improve our products’ reliability and are receiving repeat orders from an expanding customer base.

Turning to Slide 16, I’d like to highlight our new generation Class 4 offering built on the GM 4500 platform. This product has been developed in close partnership with GM over the last two years and has gone through rigorous testing, including a crash test to validate battery disengagement and airbag deployment. We’re using batteries we’ve already deployed on our ZEV3 cargo vans and ZEV3 passenger vans over the last year and a half, we’ve packaged these batteries between chassis frame rails for higher safety and ease of manufacturing. This platform will be leveraged across several market applications, including zero emissions school buses, shuttle buses, box trucks, work trucks, and ambulances.

Moving onto Slide 17, we see here a summary of our most mature products that we expect to drive our business in 2023. We have strong vehicle body partnerships and distribution channels in place for all of these products. We are continuing to mature other vehicle partnerships we’ve talked about in the past and we are actively exploring new partnerships with OEMs and vehicle builders that have a strong growth potential in 2024 and beyond.

Turning to Slides 18 and 19, you will see how the combination of incentives, grants and mandates continues to drive demand for zero emission commercial vehicles and how our products can leverage multiple state and federal grants that are stackable with each other, including the $40,000 IRA tax credit mentioned by Tim. Combining these grants can dramatically offset the upfront cost of going electric, in some cases fully paying for the vehicle. We’re working very closely with our customers to help them leverage these programs and get ready for the upcoming mandates.

Moving onto Slide 20, I’m excited to report that our second generation Lightning Mobile DC fast charger is now in production. We have developed this product based on over two years of testing and feedback from our first generation Lightning Mobile. Now available in multiple sizes and configurations, this product can help solve several charging infrastructure hurdles faced by the wider EV industry, both passenger cars and commercial EVs. We already have orders for this product and are on track to deploy customer units in the first half of Q2.

With that, I’ll turn it over to David to provide an update on Lightning’s financial results and outlook.

Lightning eMotors (ZEV) Q4 2022 Earnings Call Transcript
Mar. 13, 2023 11:12 AM ETLightning eMotors, Inc. (ZEV)
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SA Transcripts
135.29K Followers
Q4: 2023-03-13 Earnings Summary
EPS of -$0.31 misses by $0.05 | Revenue of $4.33M (2.68% Y/Y) misses by $5.88M
Lightning eMotors Inc. (NYSE:ZEV) Q4 2022 Earnings Conference Call March 13, 2023 8:30 AM ET

Company Participants

Timothy Reeser - Chief Executive Officer

Kash Sethi - Chief Revenue Officer

David Agatston - Senior Vice President, Chief Financial Officer

Brian Smith - Vice President, Investor Relations

Conference Call Participants

Colin Rusch - Oppenheimer & Co.

Mike Shlisky - DA Davidson

Sherif El Sabbahy - Bank of America

Abhi Sinha - Northland Securities

Michael Ward - The Benchmark Company

Operator

Good morning. Welcome to Lightning eMotors fourth quarter 2022 earnings call.

At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press star, zero on your telephone keypad. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Brian Smith, Vice President, Investor Relations for Lightning eMotors. Thank you, you may begin.

Brian Smith

Thank you Operator, and thanks for joining us. On the call today are Lightning’s co-Founder and CEO, Tim Reeser; Chief Revenue Officer, Kash Sethi; and CFO, David Agatston. Ahead of this call, Lightning issued our fourth quarter 2022 earnings press release and presentation deck, which we will reference today. These can be found on the Investor Relations section of our website at lightningemotors.com.

On this call, management will be making statements based on current expectations and assumptions which are subject to certain risks and uncertainties. Actual results could differ materially from these forward-looking statements due to risk factors that are listed in today’s earnings release and in our filings with the SEC, which can also be found on our website. We assume no duty to update any forward-looking statements except as required by law.

Today’s presentation also includes non-GAAP financial measures. Please refer to the information contained in today’s earnings press release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP measures.

With that, let me turn it over to Tim.

Timothy Reeser

Thank you Brian, and thanks to everyone for joining us today. I’ll start off on Slide 4 with today’s agenda. I will begin with an overview of Lightning, some highlights from the quarter, a discussion of our progress on managing our supply chain, and a discussion of the narrowing of our product focus. Kash will then provide an update on products, markets and incentives, and David will wrap up with a financial overview.

Moving to Slide 5, a summary of the quarter, Lightning produced a record 128 vehicles and power trains in the fourth quarter, 23% higher than our previous record of 104 achieved in Q3. As we announced in January, revenue in the quarter was impacted by quality issues with Romeo batteries plus customer financing delays and the timing of incentives.

Next, we will discuss our view of market forces and momentum and our refined product development focus on certain segments and applications most favored by government incentives and where we currently have a competitive advantage, specifically Class 4 trucks and buses plus the Lightning Mobile DC fast charger we just introduced, and finally we’ll discuss how this narrowing of our focus will allow us to reduce our expenses and cash burn.

Moving to Slide 6, we offer a full range of fleet electrification solutions from vehicles and service to power train technology, re-powering of pre-owned ICE vehicles, energy solutions for fixed and mobile charging including installation and support, and finally our Lightning Insights telematics and analytics offering which provides fleet intelligence, including driving efficiency, charging optimization and predictive maintenance.

Moving to Slide 7, let’s discuss the supply chain landscape. On the chassis side, our work with GM is providing a sufficient and predictable supply of chassis to serve our targeted market segment of Class 4 trucks and buses. The GM chassis is preferred by most Type A school bus providers and we are currently the only OEM with an electrified solution on this platform, plus our progress on our purpose-built Lightning E chassis is very exciting as we will begin initial testing in the first half of this year and volume production next year.

On the battery front, we have sufficient quantities of high quality batteries from Proterra and CATL for our near term needs. I will discuss the Romeo battery issue shortly.

Beyond chassis and batteries, we continue to work to diversify our supply chain with new higher production and lower cost suppliers to help reduce the cost and lead times we are seeing for components, such as high voltage heaters, high voltage air conditioners and heat pumps, and thermal management parts.

Turning to Slide 8, Lightning has been working closely with multiple battery pack suppliers for the last six years as our broad range of applications and customizations require multiple battery suppliers, configurations and technical specifications. Many early battery pack suppliers struggled with quality and availability and vehicle OEMs and their customers have had to work our way through that. Lightning has built a significant field service team both internally and through partners to manage the early challenges. We are having excellent success now with our current battery suppliers, Proterra and CATL, and in fact have built a proprietary safety system on the CATL packs in partnership with CATL for commercial vehicle applications. We are actively analyzing, testing and validating new battery suppliers to meet our requirements, which include best-in-class safety systems, Buy America compliance, modular support and fit for a wide variety of chassis configurations, and best-in-class energy and power density.

Turning to Slide 9, in January we announced revenue constraints in Q4 due primarily to defects we identified in the Romeo batteries. While we expected Romeo and its parent company, Nikola to support us and our customers and honor the warranty obligations, as they publicly stated they would, they are not. We filed suit against Nikola and Romeo on March 9. This battery issue directly and significantly impacted Q4 revenue and is expected to impact our revenues in Q1 and Q2 of this year as we lost planned sales of our legacy Class 4 40-450 base platform.

Looking forward, our new line-up of products, including all of our GM-based Class 4 products and our Lightning Mobile DC fast vehicle charger, all use high quality batteries from Proterra and CATL, of which we have more than ample supply. We are working with customers to convert our backlog of orders for the legacy Class 4 platform that had Romeo batteries to the new GM platform with Proterra batteries. While we are having some success and are optimistic given what we are currently seeing with the performance of the platform, we may not be able to replace all these orders, and this process is likely to impact the amount and timing of our revenue for the first half of the year.

Turning to Slide 10, early on our product development strategy prioritized optionality as we waited for more clarity on the market and the regulatory landscape. That clarity has arrived and fortunately the landscape now favors a market segment where we have an advantage in terms of both experience and the investments we have recently made. The Inflation Reduction Act is driving market momentum for Class 4 vehicles. The $40,000 IRA incentive on Class 4 and above is leading to strong demand for Class 4 school buses, shuttle buses and work trucks. School buses are seeing particularly strong momentum in terms of both incentives and public sentiment.

We will continue to participate in the Class 3 business with a focus on passenger vans and ambulances and focusing less on last mile delivery. Our Class 3 platforms are already designed and where it makes sense, we will produce vehicles and capitalize on the investments we have made. We will also focus on our Lightning Mobile DC fast charger which we unveiled last month and for which we are already taking orders. This can be a game-changing product, especially for customers wishing to electrify their fleets but who are experiencing delays in getting fixed charging installed. With this more focused product development and market strategy, we believe we can now lean out our expense base without sacrificing growth potential, which David will go into a little later.

Turning to Slide 11 which summarizes our product development focus for this year, Class 4 buses and trucks built on the GM platform with Proterra batteries and an optimized next-generation power train plus the mobile charger I spoke of. While the supply chain environment remains dynamic, we are not currently supply limited for components to build these products. We have delivered our first GM Class 4 vehicles to customers and the customer response has been positive. The platform rollout should continue in Q2 with a strong expected ramp in the second half of the year.

Initial customer response for our mobile charger has also been positive. I’m excited about this product and its prospects and proud of our development team for the job they have done because this product can be an electrification bridge for our customers as they build out or procure fixed charging capability to meet their charging needs. Although we expect the sales cycle to be a little slower given the newness of the product and the high ASP, we are working to accelerate it by helping customers rent or lease the product through our finance and lease partners.

Turning to Slide 12, you can see how the new North America and U.S. incentive programs stack up to provide very significant opportunities for customers to buy Lightning electric commercial vehicles at a much lower investment, de-risking the purchase and allowing them to electrify their fleets at a much faster pace. Most of these programs have launched in the last six months, so we believe the ability to stack these incentives will result in a demand inflection in the near term as customers align their purchasing plans with these new incentives.

Turning to Slide 13, you can see the current competitive landscape. Although there has been a lot of noise, we show here that there is little actual competition in the key markets we are focusing on. It is also important to note that many of the products listed from competitors are likely not design complete or on the road yet. We believe that we are well ahead of the competition with our completed designs and real world miles. Note that we believe we are on the only EV OEM today with an electrification solution for ambulances and Class 3 passenger shuttles.

Now I’ll turn it to Kash to provide an update of our products, markets, sales momentum, and a look at how the incentives are stacking up to drive market acceleration.

Kash Sethi

Thank you Tim. I’ll begin on Slide 15.

First off, we continue to be strongly positioned in our target markets because many of our peers are still in early prototype development and testing while we continue to deploy our zero emission vehicles in real world environments across multiple market verticals and commercial vehicle applications. Our deployed fleet of over 450 vehicles recently crossed a collective 3.7 million miles on the road, a number growing rapidly every week. Based on our data and estimates, our vehicles have spent more than 50,000 hours on the road moving goods and people without emissions. Although deploying new technologies isn’t easy and some bumps are expected, we continue to improve our products’ reliability and are receiving repeat orders from an expanding customer base.

Turning to Slide 16, I’d like to highlight our new generation Class 4 offering built on the GM 4500 platform. This product has been developed in close partnership with GM over the last two years and has gone through rigorous testing, including a crash test to validate battery disengagement and airbag deployment. We’re using batteries we’ve already deployed on our ZEV3 cargo vans and ZEV3 passenger vans over the last year and a half, we’ve packaged these batteries between chassis frame rails for higher safety and ease of manufacturing. This platform will be leveraged across several market applications, including zero emissions school buses, shuttle buses, box trucks, work trucks, and ambulances.

Moving onto Slide 17, we see here a summary of our most mature products that we expect to drive our business in 2023. We have strong vehicle body partnerships and distribution channels in place for all of these products. We are continuing to mature other vehicle partnerships we’ve talked about in the past and we are actively exploring new partnerships with OEMs and vehicle builders that have a strong growth potential in 2024 and beyond.

Turning to Slides 18 and 19, you will see how the combination of incentives, grants and mandates continues to drive demand for zero emission commercial vehicles and how our products can leverage multiple state and federal grants that are stackable with each other, including the $40,000 IRA tax credit mentioned by Tim. Combining these grants can dramatically offset the upfront cost of going electric, in some cases fully paying for the vehicle. We’re working very closely with our customers to help them leverage these programs and get ready for the upcoming mandates.

Moving onto Slide 20, I’m excited to report that our second generation Lightning Mobile DC fast charger is now in production. We have developed this product based on over two years of testing and feedback from our first generation Lightning Mobile. Now available in multiple sizes and configurations, this product can help solve several charging infrastructure hurdles faced by the wider EV industry, both passenger cars and commercial EVs. We already have orders for this product and are on track to deploy customer units in the first half of Q2.

With that, I’ll turn it over to David to provide an update on Lightning’s financial results and outlook.

David Agatston

Thank you Kash. I will now provide some commentary on our fourth quarter results, followed by our 2023 outlook.

Beginning on Slide 22, for the fourth quarter we generated revenues of $4.3 million, which increased 3% from the year ago period. In the quarter, Lightning produced a record 128 vehicles and power trains and sold 31. The adjusted EBITDA loss for the fourth quarter was $20 million compared to a $16 million loss in the prior year period. The change is primarily related to higher operating expenses in the current period. Full year revenue increased by 16% versus 2021.

A reconciliation of net income to the adjusted EBITDA loss can be found on Slide 26.

Turning to Slide 23, Lightning ended the fourth quarter with $56 million in cash and cash equivalents, which we believe is sufficient to fund our operations for the next several quarters. We have yet to draw on our equity line of credit but we have the ability to do so if needed. We are working to raise sufficient capital in the first half of this year to fund operations to free cash flow positive and we are confident we will succeed.

Net inventory at the end of the third quarter was $47 million. The higher inventory level stems primarily from the larger number of chassis and batteries we have purchased to support future growth and almost $13 million of finished goods. We expect to draw down on our inventory over the course of the next several quarter, which will help materially slow our cash burn.

Tim and Kash discussed the narrowing of our product focus onto the products that are most attractive in terms of market opportunity, incentive support, and Lightning’s experience and competitive advantage. This focus will allow us to run the business in a more streamlined manner and we’ve begun taking actions to reduce expenses, improve gross margin, and lower our cash burn rate.

Turning to Slide 24, earlier today we announced that we took another step in strengthening our balance sheet by agreeing to exchange $10.5 million of debt for common stock with certain holders of our 2024 convertible notes. Since the end of the third quarter of 2022, we have reduced the principal on these notes by almost $30 million, which in turn lowers our annual interest expense by over $2 million. We are constantly evaluating opportunities to strengthen the balance sheet and reduce Lightning’s cost of capital to facilitate our growth.

Turning to Slide 25, I will summarize our outlook for the year. As Tim highlighted, the issues related to the Romeo batteries and the timing of our GM-based Class 4 ramp is likely to constrain our first half revenue. Based on current business conditions, we expect for 2023 revenues to be in the range of $35 million to $50 million - the high end of that range would represent a doubling of revenue versus 2022; vehicle and power train system sales to be in the range of 300 to 400 units, and vehicle and power train production to be in the range of 400 to 450 units.

Now I will turn it back over to Tim for closing remarks.

Timothy Reeser

Thank you David.

I remain very excited about the outlook for Lightning eMotors as we continue to execute our strategy. While many of our peers are still working on their first U.S. manufacturing facilities or working to build their first production vehicles, we have put more medium duty, zero emission commercial vehicles in customers’ hands and on the road in the U.S. than anyone else. We have introduced new products that benefit from the incentive landscape and remain focused on getting to positive gross margin.

Our industry is transforming and we continue to pursue opportunities through our strategic acquisition to achieve critical scale. We have a clear vision, a differentiated strategy, and tailwinds that we believe will accelerate our path to growth and profitability. The Lightning team is energized, passionate and focused, moving with velocity towards a strong future.

With each day that passes, the barriers to widespread EV adoption in the commercial vehicle space are falling and the government incentive programs are growing. Although these programs, most of which have at least a five-year horizon, provide an accelerated inflection point for commercial EVs, the fact is that today our products provide a very compelling return on investment versus their ICE counterparts even without these subsidies.

I would like to finish by thanking all of our customers for their confidence in Lightning, our partners for their contributions to our company’s success, and our shareholders for their support. I especially want to thank our employees who are executing at a high level through a challenging operating environment.

With that, thank you everyone and I appreciate your time today. Operator, we are now ready to open the line for questions.

Lightning eMotors (ZEV) Q4 2022 Earnings Call Transcript
Mar. 13, 2023 11:12 AM ETLightning eMotors, Inc. (ZEV)
SA Transcripts profile picture
SA Transcripts
135.29K Followers
Q4: 2023-03-13 Earnings Summary
EPS of -$0.31 misses by $0.05 | Revenue of $4.33M (2.68% Y/Y) misses by $5.88M
Lightning eMotors Inc. (NYSE:ZEV) Q4 2022 Earnings Conference Call March 13, 2023 8:30 AM ET

Company Participants

Timothy Reeser - Chief Executive Officer

Kash Sethi - Chief Revenue Officer

David Agatston - Senior Vice President, Chief Financial Officer

Brian Smith - Vice President, Investor Relations

Conference Call Participants

Colin Rusch - Oppenheimer & Co.

Mike Shlisky - DA Davidson

Sherif El Sabbahy - Bank of America

Abhi Sinha - Northland Securities

Michael Ward - The Benchmark Company

Operator

Good morning. Welcome to Lightning eMotors fourth quarter 2022 earnings call.

At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press star, zero on your telephone keypad. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Brian Smith, Vice President, Investor Relations for Lightning eMotors. Thank you, you may begin.

Brian Smith

Thank you Operator, and thanks for joining us. On the call today are Lightning’s co-Founder and CEO, Tim Reeser; Chief Revenue Officer, Kash Sethi; and CFO, David Agatston. Ahead of this call, Lightning issued our fourth quarter 2022 earnings press release and presentation deck, which we will reference today. These can be found on the Investor Relations section of our website at lightningemotors.com.

On this call, management will be making statements based on current expectations and assumptions which are subject to certain risks and uncertainties. Actual results could differ materially from these forward-looking statements due to risk factors that are listed in today’s earnings release and in our filings with the SEC, which can also be found on our website. We assume no duty to update any forward-looking statements except as required by law.

Today’s presentation also includes non-GAAP financial measures. Please refer to the information contained in today’s earnings press release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP measures.

With that, let me turn it over to Tim.

Timothy Reeser

Thank you Brian, and thanks to everyone for joining us today. I’ll start off on Slide 4 with today’s agenda. I will begin with an overview of Lightning, some highlights from the quarter, a discussion of our progress on managing our supply chain, and a discussion of the narrowing of our product focus. Kash will then provide an update on products, markets and incentives, and David will wrap up with a financial overview.

Moving to Slide 5, a summary of the quarter, Lightning produced a record 128 vehicles and power trains in the fourth quarter, 23% higher than our previous record of 104 achieved in Q3. As we announced in January, revenue in the quarter was impacted by quality issues with Romeo batteries plus customer financing delays and the timing of incentives.

Next, we will discuss our view of market forces and momentum and our refined product development focus on certain segments and applications most favored by government incentives and where we currently have a competitive advantage, specifically Class 4 trucks and buses plus the Lightning Mobile DC fast charger we just introduced, and finally we’ll discuss how this narrowing of our focus will allow us to reduce our expenses and cash burn.

Moving to Slide 6, we offer a full range of fleet electrification solutions from vehicles and service to power train technology, re-powering of pre-owned ICE vehicles, energy solutions for fixed and mobile charging including installation and support, and finally our Lightning Insights telematics and analytics offering which provides fleet intelligence, including driving efficiency, charging optimization and predictive maintenance.

Moving to Slide 7, let’s discuss the supply chain landscape. On the chassis side, our work with GM is providing a sufficient and predictable supply of chassis to serve our targeted market segment of Class 4 trucks and buses. The GM chassis is preferred by most Type A school bus providers and we are currently the only OEM with an electrified solution on this platform, plus our progress on our purpose-built Lightning E chassis is very exciting as we will begin initial testing in the first half of this year and volume production next year.

On the battery front, we have sufficient quantities of high quality batteries from Proterra and CATL for our near term needs. I will discuss the Romeo battery issue shortly.

Beyond chassis and batteries, we continue to work to diversify our supply chain with new higher production and lower cost suppliers to help reduce the cost and lead times we are seeing for components, such as high voltage heaters, high voltage air conditioners and heat pumps, and thermal management parts.

Turning to Slide 8, Lightning has been working closely with multiple battery pack suppliers for the last six years as our broad range of applications and customizations require multiple battery suppliers, configurations and technical specifications. Many early battery pack suppliers struggled with quality and availability and vehicle OEMs and their customers have had to work our way through that. Lightning has built a significant field service team both internally and through partners to manage the early challenges. We are having excellent success now with our current battery suppliers, Proterra and CATL, and in fact have built a proprietary safety system on the CATL packs in partnership with CATL for commercial vehicle applications. We are actively analyzing, testing and validating new battery suppliers to meet our requirements, which include best-in-class safety systems, Buy America compliance, modular support and fit for a wide variety of chassis configurations, and best-in-class energy and power density.

Turning to Slide 9, in January we announced revenue constraints in Q4 due primarily to defects we identified in the Romeo batteries. While we expected Romeo and its parent company, Nikola to support us and our customers and honor the warranty obligations, as they publicly stated they would, they are not. We filed suit against Nikola and Romeo on March 9. This battery issue directly and significantly impacted Q4 revenue and is expected to impact our revenues in Q1 and Q2 of this year as we lost planned sales of our legacy Class 4 40-450 base platform.

Looking forward, our new line-up of products, including all of our GM-based Class 4 products and our Lightning Mobile DC fast vehicle charger, all use high quality batteries from Proterra and CATL, of which we have more than ample supply. We are working with customers to convert our backlog of orders for the legacy Class 4 platform that had Romeo batteries to the new GM platform with Proterra batteries. While we are having some success and are optimistic given what we are currently seeing with the performance of the platform, we may not be able to replace all these orders, and this process is likely to impact the amount and timing of our revenue for the first half of the year.

Turning to Slide 10, early on our product development strategy prioritized optionality as we waited for more clarity on the market and the regulatory landscape. That clarity has arrived and fortunately the landscape now favors a market segment where we have an advantage in terms of both experience and the investments we have recently made. The Inflation Reduction Act is driving market momentum for Class 4 vehicles. The $40,000 IRA incentive on Class 4 and above is leading to strong demand for Class 4 school buses, shuttle buses and work trucks. School buses are seeing particularly strong momentum in terms of both incentives and public sentiment.

We will continue to participate in the Class 3 business with a focus on passenger vans and ambulances and focusing less on last mile delivery. Our Class 3 platforms are already designed and where it makes sense, we will produce vehicles and capitalize on the investments we have made. We will also focus on our Lightning Mobile DC fast charger which we unveiled last month and for which we are already taking orders. This can be a game-changing product, especially for customers wishing to electrify their fleets but who are experiencing delays in getting fixed charging installed. With this more focused product development and market strategy, we believe we can now lean out our expense base without sacrificing growth potential, which David will go into a little later.

Turning to Slide 11 which summarizes our product development focus for this year, Class 4 buses and trucks built on the GM platform with Proterra batteries and an optimized next-generation power train plus the mobile charger I spoke of. While the supply chain environment remains dynamic, we are not currently supply limited for components to build these products. We have delivered our first GM Class 4 vehicles to customers and the customer response has been positive. The platform rollout should continue in Q2 with a strong expected ramp in the second half of the year.

Initial customer response for our mobile charger has also been positive. I’m excited about this product and its prospects and proud of our development team for the job they have done because this product can be an electrification bridge for our customers as they build out or procure fixed charging capability to meet their charging needs. Although we expect the sales cycle to be a little slower given the newness of the product and the high ASP, we are working to accelerate it by helping customers rent or lease the product through our finance and lease partners.

Turning to Slide 12, you can see how the new North America and U.S. incentive programs stack up to provide very significant opportunities for customers to buy Lightning electric commercial vehicles at a much lower investment, de-risking the purchase and allowing them to electrify their fleets at a much faster pace. Most of these programs have launched in the last six months, so we believe the ability to stack these incentives will result in a demand inflection in the near term as customers align their purchasing plans with these new incentives.

Turning to Slide 13, you can see the current competitive landscape. Although there has been a lot of noise, we show here that there is little actual competition in the key markets we are focusing on. It is also important to note that many of the products listed from competitors are likely not design complete or on the road yet. We believe that we are well ahead of the competition with our completed designs and real world miles. Note that we believe we are on the only EV OEM today with an electrification solution for ambulances and Class 3 passenger shuttles.

Now I’ll turn it to Kash to provide an update of our products, markets, sales momentum, and a look at how the incentives are stacking up to drive market acceleration.

Kash Sethi

Thank you Tim. I’ll begin on Slide 15.

First off, we continue to be strongly positioned in our target markets because many of our peers are still in early prototype development and testing while we continue to deploy our zero emission vehicles in real world environments across multiple market verticals and commercial vehicle applications. Our deployed fleet of over 450 vehicles recently crossed a collective 3.7 million miles on the road, a number growing rapidly every week. Based on our data and estimates, our vehicles have spent more than 50,000 hours on the road moving goods and people without emissions. Although deploying new technologies isn’t easy and some bumps are expected, we continue to improve our products’ reliability and are receiving repeat orders from an expanding customer base.

Turning to Slide 16, I’d like to highlight our new generation Class 4 offering built on the GM 4500 platform. This product has been developed in close partnership with GM over the last two years and has gone through rigorous testing, including a crash test to validate battery disengagement and airbag deployment. We’re using batteries we’ve already deployed on our ZEV3 cargo vans and ZEV3 passenger vans over the last year and a half, we’ve packaged these batteries between chassis frame rails for higher safety and ease of manufacturing. This platform will be leveraged across several market applications, including zero emissions school buses, shuttle buses, box trucks, work trucks, and ambulances.

Moving onto Slide 17, we see here a summary of our most mature products that we expect to drive our business in 2023. We have strong vehicle body partnerships and distribution channels in place for all of these products. We are continuing to mature other vehicle partnerships we’ve talked about in the past and we are actively exploring new partnerships with OEMs and vehicle builders that have a strong growth potential in 2024 and beyond.

Turning to Slides 18 and 19, you will see how the combination of incentives, grants and mandates continues to drive demand for zero emission commercial vehicles and how our products can leverage multiple state and federal grants that are stackable with each other, including the $40,000 IRA tax credit mentioned by Tim. Combining these grants can dramatically offset the upfront cost of going electric, in some cases fully paying for the vehicle. We’re working very closely with our customers to help them leverage these programs and get ready for the upcoming mandates.

Moving onto Slide 20, I’m excited to report that our second generation Lightning Mobile DC fast charger is now in production. We have developed this product based on over two years of testing and feedback from our first generation Lightning Mobile. Now available in multiple sizes and configurations, this product can help solve several charging infrastructure hurdles faced by the wider EV industry, both passenger cars and commercial EVs. We already have orders for this product and are on track to deploy customer units in the first half of Q2.

With that, I’ll turn it over to David to provide an update on Lightning’s financial results and outlook.

David Agatston

Thank you Kash. I will now provide some commentary on our fourth quarter results, followed by our 2023 outlook.

Beginning on Slide 22, for the fourth quarter we generated revenues of $4.3 million, which increased 3% from the year ago period. In the quarter, Lightning produced a record 128 vehicles and power trains and sold 31. The adjusted EBITDA loss for the fourth quarter was $20 million compared to a $16 million loss in the prior year period. The change is primarily related to higher operating expenses in the current period. Full year revenue increased by 16% versus 2021.

A reconciliation of net income to the adjusted EBITDA loss can be found on Slide 26.

Turning to Slide 23, Lightning ended the fourth quarter with $56 million in cash and cash equivalents, which we believe is sufficient to fund our operations for the next several quarters. We have yet to draw on our equity line of credit but we have the ability to do so if needed. We are working to raise sufficient capital in the first half of this year to fund operations to free cash flow positive and we are confident we will succeed.

Net inventory at the end of the third quarter was $47 million. The higher inventory level stems primarily from the larger number of chassis and batteries we have purchased to support future growth and almost $13 million of finished goods. We expect to draw down on our inventory over the course of the next several quarter, which will help materially slow our cash burn.

Tim and Kash discussed the narrowing of our product focus onto the products that are most attractive in terms of market opportunity, incentive support, and Lightning’s experience and competitive advantage. This focus will allow us to run the business in a more streamlined manner and we’ve begun taking actions to reduce expenses, improve gross margin, and lower our cash burn rate.

Turning to Slide 24, earlier today we announced that we took another step in strengthening our balance sheet by agreeing to exchange $10.5 million of debt for common stock with certain holders of our 2024 convertible notes. Since the end of the third quarter of 2022, we have reduced the principal on these notes by almost $30 million, which in turn lowers our annual interest expense by over $2 million. We are constantly evaluating opportunities to strengthen the balance sheet and reduce Lightning’s cost of capital to facilitate our growth.

Turning to Slide 25, I will summarize our outlook for the year. As Tim highlighted, the issues related to the Romeo batteries and the timing of our GM-based Class 4 ramp is likely to constrain our first half revenue. Based on current business conditions, we expect for 2023 revenues to be in the range of $35 million to $50 million - the high end of that range would represent a doubling of revenue versus 2022; vehicle and power train system sales to be in the range of 300 to 400 units, and vehicle and power train production to be in the range of 400 to 450 units.

Now I will turn it back over to Tim for closing remarks.

Timothy Reeser

Thank you David.

I remain very excited about the outlook for Lightning eMotors as we continue to execute our strategy. While many of our peers are still working on their first U.S. manufacturing facilities or working to build their first production vehicles, we have put more medium duty, zero emission commercial vehicles in customers’ hands and on the road in the U.S. than anyone else. We have introduced new products that benefit from the incentive landscape and remain focused on getting to positive gross margin.

Our industry is transforming and we continue to pursue opportunities through our strategic acquisition to achieve critical scale. We have a clear vision, a differentiated strategy, and tailwinds that we believe will accelerate our path to growth and profitability. The Lightning team is energized, passionate and focused, moving with velocity towards a strong future.

With each day that passes, the barriers to widespread EV adoption in the commercial vehicle space are falling and the government incentive programs are growing. Although these programs, most of which have at least a five-year horizon, provide an accelerated inflection point for commercial EVs, the fact is that today our products provide a very compelling return on investment versus their ICE counterparts even without these subsidies.

I would like to finish by thanking all of our customers for their confidence in Lightning, our partners for their contributions to our company’s success, and our shareholders for their support. I especially want to thank our employees who are executing at a high level through a challenging operating environment.

With that, thank you everyone and I appreciate your time today. Operator, we are now ready to open the line for questions.

Question-and-Answer Session

Operator

Thank you. [Operator instructions]

Our first question comes from the line of Colin Rusch with Oppenheimer & Company. Please proceed with your question.

Colin Rusch

Thanks so much, guys. As you look at the supply chain situation, all the changes that you’ve made in terms of qualifying incremental suppliers and optimizing operations, can you talk a little bit about seasonality within the guidance you’ve provided for the full year and when you’re expecting to reach gross margin positive on production?

Timothy Reeser

Thank you Colin. I’ll start and then let David finish on the gross margin question. Great to hear from you again, so appreciate all of your engagement and the research you’re doing.

Broadly, seasonality in the commercial vehicle space has usually been last half, as you know, focused primarily because of when new vehicle model years hit. Supply chain and certainly chassis supply has changed that over the last 18 to 24 months, but we still expect the business to return a bit to last half seasonality based primarily on chassis availability. But certainly, some of the challenges we’ve had in the past around battery supply, etc. have not been seasonal, they’ve just been ad hoc, so do expect it to even out but as I look at it, I think most commercial vehicles will move back towards the second half weighted seasonality at some level.

David, do you want to talk a little about the gross margin?

David Agatston

Yes, hey Colin. We think probably now moving into early 2024, first half of 2024 given the impacts we’ve had from the Class 4, the Romeo batteries and the ramp of our GMs, a lot of it has to do with obviously volume. We’ve talked about before that if we get to 100 vehicles a month, we get towards gross margin positive, and so it could happen towards the back end of this year depending on some of the seasonality that Tim talked about and the cost down initiatives that we’re implementing, but more likely first half of ’24.

Colin Rusch

Okay, that’s super helpful. Then just in terms of the sales cycle, obviously this can be a fairly long sales cycle for folks, but can you just give us an update on what you’re seeing both in terms of the Class 4 market as well as the school bus market, in terms of the cadence of orders coming in, and then also about your win rate, just curious about the number of things you’re bidding on and how that’s moving into backlog for you guys.

Kash Sethi

Hey Colin, this is Kash. In gasoline vehicles for Class 4, whether that’s school buses, shuttles buses, on the school bus side it’s heavier on the late summer - schools usually like to get ready with their buses before the next year starts, but when it comes to electric buses, it’s really more tied with timelines. School districts using HFIP in California are going to buy throughout the year but they will try to get most deliveries towards the end of the summer, but nationwide now that the EP program is available, we’re still learning what the cycle looks like but I predict it will be heavier towards the summer and Q4 again.

On your question on win rates, we are already in the Class 4 shuttle bus and school bus space, we were addressing it with the 40/450 platform, now we have the GM 4500 platform. Both those platforms also existed in the space already, but when it comes to win rates, we usually win more than 50% of actual bids in this space. Now, I’m talking about bids when a customer is trying to award a bid to someone to place a purchase order. I’m not talking about contracts, which basically everybody can get a contract and become an eligible option for a state agency to buy something, but when there’s an actual bid, when they try to win and buy one product over the other, we’re winning more than 50% of the time.

Colin Rusch

That’s incredibly helpful. Thanks so much, guys.

Operator

Thank you. Our next question comes from the line of Mike Shlisky with DA Davidson. Please proceed with your question.

Mike Shlisky

Good morning and thanks for taking my question. I guess I wanted to start with the lawsuit you filed against Romeo. Another player has taken their claim to arbitration, it may be contractual. I’m curious if you can just tell us, is your claim also going to go to arbitration or are you planning to be it in for the long haul for a trial if you have to? Just your thoughts as to how this may turn out without anything obviously confidential, but how this thing might progress over the next couple of quarters here.

Timothy Reeser

We do expect it to go to court. Obviously very few--I think when I was reading the other day in terms of actual civil litigation that actually ends up at a trial, most of them, a large, large percentage of them do not, so who knows where that’s going to go. But we aren’t at this point planning an arbitration, we are planning on--it is headed to court.

Mike Shlisky

And as far as the timeline goes, what would be the next step? It was just filed last week, correct?

Timothy Reeser

Yes, exactly - it was just filed last week, so I think we’ll see where the courts take it from a timeline, etc.

Mike Shlisky

Okay. I guess my other question, maybe just wanted to ask about last week’s NTEA show. I guess I’d be curious how it went for Lightning, and we saw a new Ford e-Transit passenger van coming from Ford directly. I wonder if you can just give us--is that Class 2 or Class 3, it’s not going to compete much with your vehicle with a much shorter range, or is that supposed to be something that’s very close to the wheelhouse that you’re working with, with your GM product?

Kash Sethi

Yes, so the show was a success for us. We showcased our GM 4500, a lot of our customers and our vehicle partners. That show is excellent not just to meet truck fleets but also to meet vehicle builders, second stage vehicle builders, people putting box trucks, work trucks and buses on top of platforms, so we were able to show our product to fleets and to our vehicle partners, chassis up in the air, they could see the neatly packaged Proterra batteries. It was a success.

Specific to that bus you’re talking about, that is built by a bus company, not by Ford itself. The underlying platform seems to be a Class 2 Ford E-transit cutaway product, but I don’t believe it was a certified roadworthy product, seems to be an early stage prototype. As you hinted, it is a lower payload, a lower range version - I think the battery size is 67 kilowatt hours, and we’ve got almost twice as much and we have a lot more payload, so. I think if that product hits the road, it will be a very different application - you are carrying eight or nine kids for 40 miles, versus we’re in the 16 to 20 kids over 100 miles, so.

It’s good to see more people enter the market, it proves that we are in the right space, electric school bus is worth focusing on, but I believe it’s a very different product that you’re talking about.

Timothy Reeser

I think also important to note, because it’s not a Class 2--or because it is a Class 2, it’s not a Class 4, the incentive offerings are very, very different for that product than they are for ours, and that again is part of the reason we’ve stepped up into the Class 4 product.

Mike Shlisky

Okay, great. That’s great color. I’ll pass it along, thank you.

Timothy Reeser

Thank you Mike.

Operator

Thank you. Our next question comes from the line of Sherif El Sabbahy with Bank of America. Please proceed with your question.

Sherif El Sabbahy

Hi, good morning. I just wanted to ask a bit more on the inventory wind down. You said you expected that to help your cash burn somewhat, but do you foresee customers potentially not wanting some of those older platforms, just given some the headwinds with Romeo or some of those headlines, and if so, do you expect to see any potential inventory write-downs from those units that have been produced but not sold?

Timothy Reeser

At this point, the units that have been produced and not sold today are our Class 3 product, not our Romeo-based product, so they are Proterras, and we do expect to sell those. We don’t expect to write those down on inventory. We do know customers want them, so we’re not worried about the product, and it’s been a very, very good product for us. Again, our focus is moving up a level just because of the higher grant money, but there’s still state money for specifically HFIP and State of Colorado and New York money as well for the Class 3s, so we do expect to continue on that.

With the Romeo-based products, at this point we’re working on how to convert all those customers to running GM, so we’ll see where that plays off in terms of inventory write-down, etc.

Sherif El Sabbahy

And then are you able to give us what backlog stood at on a dollar and unit basis at the end of the year?

David Agatston

Yes, we’ve stopped reporting backlog, Sherif. We just--at the moment, because of some of these transitions, we don’t feel it’s as meaningful as we would like it to be as an indicator for the business, so we have a bunch of these Romeo Ford products sitting in backlog that we’re trying to convert into GM products and so we just felt like at this time, it wasn’t meaningful to provide that as an indicator for the business.

Sherif El Sabbahy

Understood. Just one last one, you mentioned you have several quarters, or enough cash to fund the next several quarters and expect to raise capital in the first half. Should we expect the capital raise in the first half to be dilutive to equity, as we’ve seen with some of these share raises?

David Agatston

We would expect that to be via equity, yes.

Sherif El Sabbahy

Got it, thank you.

Operator

Thank you. Our next question comes from the line of Abhi Sinha with Northland Securities. Please proceed with your question.

Abhi Sinha

Yes, hi. Thanks for taking my question, and I apologize in advance - I dropped out of the call for some reason twice, so maybe the questions that I’ll ask might have been already asked, so.

The first thing, I want to understand what options and how much time do you have to answer the de-listing, or [indiscernible]?

David Agatston

We had six months, so we have through June of this year to address and get back into compliance.

Abhi Sinha

Okay, and how do you try--in terms of options you have, is the reverse split an option? I’m just trying to understand what options do you guys have in terms of trying to--

David Agatston

[Indiscernible] fortunately if--you know, the business conditions could change and the stock could increase, but certainly a reverse split is one of the obvious options.

Abhi Sinha

Sure, and in terms of percentage of orders that you were able to convert from Romeo to Proterra, can you--I know [indiscernible] complete all of them, but what percentage should we think that we should be able to safely assume that will be converted?

Kash Sethi

It’s hard to say if there’s a number that’s safe to assume, but we--I’m hoping more than 75%.

Abhi Sinha

Sure, perfect. Last one, if you could just elaborate more on the difference in operating and financial aspects when you compare and contrast the two batteries, from Romeo to Proterra, I mean, [indiscernible] in terms of what benefits you’re getting in the operating and the financial aspects?

Timothy Reeser

Yes, obviously multiple ones, and we’ve been running Proterra batteries now for a year and five months on the road, in other words, and validating and testing them for a year before that, so we have a lot of experience at this point with the Proterra batteries. The biggest thing is, frankly, reliability and consistency, and that’s why we standardized on them over a year ago rather than Romeo, because they were a higher quality battery, more consistent manufacturing.

Historically, they have been less expensive as well, so obviously that has been a benefit on the other side, and I think our relationship with Proterra has been deep and we’ve found them from an engineering standpoint to be a capable engineered product that we work with. In the end, with batteries you look at reliability, safety and cost, and Proterra certainly has consistently won on all three of those by a long shot versus Romeo, and that’s why we switched over a year ago.

Abhi Sinha

Got it. Thank you. That’s all I have.

Operator

Thank you. Ladies and gentlemen, as a reminder, if you’d like to join the question queue, please press star, one on your telephone keypad.


Our next question comes from the line of Michael Ward with The Benchmark Company. Please proceed with your question.

Michael Ward

Thanks, good morning everyone. I wonder if I could just clarify the order production-slash-revenue process. There were 130 units produced in Q4 but only roughly 30 got counted as revenue - is that correct?

David Agatston

Correct.

Michael Ward

Okay. Were those units produced to a customer order?

Timothy Reeser

Some were, so to the case o the complexity of this, some were produced to a customer order that had Romeo batteries, so those are being rebuilt, re-allocated for those customers that are now willing, as Kash said, the three-quarters of them we expect are willing to switch to a GM-based product with Proterra batteries, so some were that. Others of them were built either speculatively or for customers who in the end delayed getting their financing, so a combination of all three scenarios.

Michael Ward

Okay, so those 100 units that were produced but not delivered are expected to be delivered and counted as revenue in the first half, is that what you’re thinking?

Timothy Reeser

I think some of them will be.

Michael Ward

Okay, depending on when they get resolved? Okay.

Then that has implications for cash flow, and that’s part of the unwind you see in that working capital, correct, in the revenue?

David Agatston

Correct.

Michael Ward

Then when I’m looking at the outlook for this year, so the production rate, you’re going from the 128, whatever it was in the fourth quarter, and for the full year next year you’re looking at a lower rate in the first half, is that because of these retrofits?

Timothy Reeser

Yes, it’s because of having to resolve the issues around the Romeo battery rebuilds, yes.

David Agatston

And the transition.

Timothy Reeser

And the transition - well stated, David. Yes, we are--the transition to a whole new product in terms of the GM does have--it created a time lag.

Michael Ward

So in Q1 and Q2, we can expect lower year-over-year production, but then the second half, look at it to expect higher production and accelerate as the full transition takes place?

David Agatston

Correct.

Michael Ward

Beautiful, thank you very much.

Operator

Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I’ll turn the floor back to Mr. Reeser for final comments.

Timothy Reeser

Thank you Operator, and thank you everyone for the time. This now concludes our call.

Operator

Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
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