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Electrovaya Inc T.ELVA

Alternate Symbol(s):  ELVA

Electrovaya Inc. is a Canada-based lithium-ion battery technology and manufacturing company. The Company designs, develops and manufactures lithium-ion batteries and battery systems for energy storage, clean electric transportation, heavy duty electric vehicles and other specialized applications based on its Infinity Battery Technology Platform. The Company is focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The Company is also developing next generation solid state battery technology at its Labs division. The Company has two operating sites in Canada and has a 52-acre site with approximately 135,000 square foot manufacturing facility in New York state. Its battery products are used across various applications, including material handling, e-mobility and energy storage.


TSX:ELVA - Post by User

Bullboard Posts
Comment by Dacomon Dec 09, 2015 11:08pm
145 Views
Post# 24371685

RE:RE:RE:Thanks, GerriEtmans. Impressive analysis of situation.

RE:RE:RE:Thanks, GerriEtmans. Impressive analysis of situation.Nickto. I'm not sure how having a profitable quarter can explain the S&M and G&A numbers being negative or very low. Normally, in most technology companies, they are a much higher percentage of revenue than shown here. Profitability is usually achieved by having high levels of Gross Margin, which are bigger than these (fixed) costs...... You can't record that the fixed costs have gone down just because you had a good revenue quarter. Costs are costs are costs. The cash provided by Evonik provides a more likely explanation, although, even then, there are a couple of things to know. Cash receipts and cost/revenue accruals are not always seen in the same period. Therefore, it is perfectly reasonable to receive cash earlier or later without impacting the income statement. However, more importantly, I thought I remembered the difference between the purchase price and all of the assets received (which included all of the cash.....whenever it was due to be received)  being recorded on the balance sheet as "goodwill". Maybe I'm wrong, but I don't think they can arbritarily change their mind (after the event) and call it "prepaid S&M or G&A" which is a possible explanation (i.e. They offset the actual costs by recognising money from Evonik and reduced those line items on the income statement). As usual, Electrovayas financial statements are as clear as mud and the MD&A doesn't help. One wonders if this is incompetence or something more deliberate.
Bullboard Posts