Strongest quarter of FY 2021, with revenue expected to more than double in Fiscal 2022 to approximately $27 million
TORONTO, ON / ACCESSWIRE / December 20, 2021 /Electrovaya Inc. ("Electrovaya" or the "Company") (TSX:EFL)(OTCQB:EFLVF), a lithium-ion battery manufacturer with differentiated intellectual property that allows heightened safety and improved longevity enabling industry-leading performance, today reported its financial results for the fourth quarter and fiscal year ended September 30, 2021 ("Q4 FY2021" & "FY 2021", respectively). All dollar amounts are in U.S. dollars unless otherwise noted.
Financial Highlights:
- Revenue for Q4 FY2021 was $4.2 million (C$5.4 million), compared to $6.9 million (C$8.8 million) in the fiscal fourth quarter ended September 30, 2020 ("Q4 FY2020"). Revenue for Q4 FY2021 decreased by 40% compared to Q4 FY2020 but increased significantly on a sequential basis compared to $1.9 million (C$3.2 million) in the fiscal third quarter ended June 30, 2021 ("Q3 FY2021"). Management believes that the year-over-year revenue decline in Q4 FY2021 was primarily due to a reduced-order volume resulting from a transition to the OEM Strategic Supply Agreement, which was signed in December 2020. This agreement brought a new corporate sales team focused on large corporations, and management believes the sales cycle is relatively long for these customers. Continued disruptions to the supply chain caused by the COVID-19-pandemic, as well as component shortages, also impacted the Company. Management is encouraged by the strong quarterly sequential revenue growth in Q4 FY2021 and believes the situation has improved, as the Company has received indications of significant new orders for delivery in the 2022 calendar year.
- Revenue for FY 2021 was $11.6 million (C$14.8 million), compared to revenue of $14.5 million (C$18.5 million) in the fiscal year ended September 30, 2020 ("FY 2020"). The gross margin was 34% in FY 2021, which was consistent with FY 2020.
- The balance sheet was strengthened during FY 2021. On September 30, 2021, current assets were $12.0 million, current liabilities were $13.5 million, and the equity deficiency was $1.7 million. This represents an increase of $4.0 million in current assets, a reduction of $3.0 million in current liabilities, and a reduction in the equity deficiency of $7.0 million compared to the balances as of September 30, 2020.
- On September 27, 2021, the Company completed a brokered private placement of Common Shares and warrants to purchase Common Shares with an institutional investor in the United States for gross proceeds of approximately C$3.8 million. The Company issued 2,919,230 Common Shares and warrants to purchase up to 1,459,615 Common Shares at a price of C$1.30 per Common Share and associated warrant. Each warrant entitles the holder thereof to purchase one Common Share at an exercise price of C$1.60 per Common Share at any time prior to September 29, 2024.
- On December 7, 2021, the Company filed a final base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada. The base shelf prospectus is valid for a 25-month period, during which time the Company may offer and issue, from time to time, common shares, warrants, units, subscription receipts, and debt securities, or any combination thereof, having an aggregate offering price of up to $100 million. The ability to draw on the shelf prospectus was conditional upon extending the working capital and promissory note facilities. This condition is now fulfilled.
- On December 17, 2021, the Company amended its C$7 million working capital facility to extend the maturity from December 31, 2021 to December 31, 2022.
- On December 17, 2021, the promissory note which was due to mature on December 31, 2021 was amended to extend the maturity to July 1, 2022.
https://www.accesswire.com/678796/Electrovaya-Reports-Q4-FY2021-and-Fiscal-2021-Results