Electrovaya Inc.

Greetings and welcome to the ElectroVaya second quarter 2020 conference call. At this time, all participants are in 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, Minister Richard Hulka, Executive Vice President, Chief Financial Officer for ElectroVaya. Thank you. You may begin.

Thank you, Melissa. Good morning, everyone, and thank you for joining us on today's conference call to discuss ElectroVaya's fiscal 2020 second quarter financial results. Today's call is being hosted by Dr. Shankar Dasgupta, CEO of ElectroVaya, and myself, Richard Halka, Executive Vice President and CFO. On May 15, 2020, ElectroVaya issued a press release concerning its business highlights and financial results for the three- and six-month periods ended March 31, 2020. If you would like a copy of the release, you can access it on our website. If you want to view the financial statements and MD&A, you can access those documents on the SEDAR website at www.SEDAR.com. As with previous calls, our comments today are subject to normal provisions related to forward-looking information. We will provide information relating to our current views regarding trends in our markets, including their size, potential for growth, and our competitive position in our target markets. Although we believe the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied in such statements. Additional information about factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the company's press release announcing the fiscal 2020 second quarter results and the most recent annual information form and management discussion and analysis under risks and uncertainties. as well as in other public disclosure documents filed by the Canadian Securities Regulatory Authority. Also, please note all the numbers discussed in this call are in U.S. dollars, unless otherwise noted. And now, I'd like to turn the call over to Shankar.

Thank you, Richard, and good morning, everyone. I hope all the Canadians joining us this morning Enjoyed the Victoria Day holiday yesterday, although many of us are in an extended leave. Your company had a very interesting quarter. COVID-19 has changed many things. Electrowire is deemed a critically important industry and is powering many e-commerce sites, groceries, medicines, goods, and important supply chains. For example, one of our clients' distribution centers supports much of the groceries and e-commerce goods in Western Canada. So we had to stay open, and our supportive and passionate staff came to work every day and kept the deliveries going. In spite of the dislocations from our supply chain and from dislocations as we moved locations and had to build the necessary infrastructure in our new operation. I would say our courageous and dedicated staff followed all of the guidelines and regulations relating to social distancing, frequent hand washing, wearing of masks, sanitization, ultraviolet, sea radiation, fans with HEPA filters and so on. We all admire their courage and dedication and their attention to details in complying to the COVID-19 guidelines. They are keeping the groceries and many vital goods moving in warehouses, cold storages, and in e-commerce distribution. We also had a virtual annual meeting in March, and we appreciate all of you who took part in it. I'm pleased to say that we overcame some significant operational challenges in the quarter as well. As you probably know, we moved into our head office and manufacturing facility last December, about four or five months ago. Our team worked hard to transfer and reorganize infrastructure to resume production at our new facility and did an excellent job. The new facility is running well and positions us to further scale up production as demand increases. We missed our target to be EBITDA breakeven in the March quarter, mainly because of the COVID and supply chain destruction. Yet, we doubled our revenue from the sequential December quarter. Another important milestone was our 15 million Canadian of debt due at the end of the quarter. We had a very supportive debt lender who allowed us to pay $2 million in cash and $2 million in shares now and another $2 million at the end of September and allowed us to fulfill the Canadian 15 million debt with this 6 million payment. We are extremely grateful to them We are all working hard such that their $2 million of shares can gain enough traction to compensate them for their support to us. In spite of COVID and relocation, we generated solid performance in the second quarter, revenue more than doubled to Canadian $2.7 million compared to the fiscal first quarter, a good sequential growth. We expect another doubling in revenues in the present quarter. This sequential and exponential growth is due to the demand for our batteries. We are delighted that after much testing, the largest OEM in the world in this field is selling our products through their distribution, as is the largest company in the world started to use us in upgrading their distribution centers. We are now in 31 locations in North America, about four in Canada, 24, 25 in the U.S., one in Mexico at a car assembly manufacturing plant. Our OEM partner or the world's largest company have access to all technology across the world, and we are humbled that they chose ElectroVaya And now, rather rapidly, we are in these 31 locations. We must be providing exceptional technology in terms of cyclized safety, energy, power, and fast charging. Otherwise, they would not have chosen us. Before we came to this market, the general consensus was that lithium-ion could not deliver the needed 12 to 20 times more work than the normal lithium ion in, say, an electric car uses. Plus, there was worry always about the safety of such batteries. Hence, these major customers kept using three lead-acid batteries per truck and swapping batteries every shift or use hydrogen-fueled fuel cells. A normal lithium ion battery in an electric car is guaranteed for, say, 150,000 kilometers over five to eight years of operations. Our materials handling customers instead want two to three million kilometers of operation, 12 to 20 times more. They need a remarkable battery, which we are delivering. Similar performances of cycle life and safety are needed for all intensive use applications, such as electric buses, electric trucks, electric taxis, automated guided vehicles, and so on. I will now turn the call over to Richard to review our fiscal second quarter results in greater detail. Richard?