Electrovaya Inc.

Welcome to the ElectroVoya Q3 2023 Financial Results Conference 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. Please note, this conference is being recorded. I will now turn the conference over to your host, John Gibson, CFO. You may begin.

Thank you. Good evening, everybody, and thank you for joining us today on the call to discuss Electrovia's Q3 2023 financial results. Today's call is being hosted by Dr. Raj Dasgupta, CEO of Electrovia, and myself, John Gibson, CFO. Today, Electrovia issued a press release concerning its business highlights and financial results for the three-month period ended June 30, 2023. If you would like a copy of the release, you can access it on our website. If you want to view our financial statements and management discussions and analysis, you can access those documents on the new CEDARplus website at www.cedarplus.ca or on the SEC EDGAR website at sec.gov forward slash EDGAR. As with previous calls, our comments today are subject to the normal provisions related to forward-looking information. We will provide information relating to our current views regarding market trends, including the size and potential for growth and our competitive position within our target markets. Although we believe that the expectations reflected in such forward-looking statements are reasonable, They do obviously involve risk 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 Q3 fiscal 2023 results and the most recent annual information form and management discussion analysis under risks and uncertainties, as well as in other public disclosures filed with Canadian and U.S. security regulatory authorities. Also, please note that all the numbers discussed on the call are in U.S. dollars unless otherwise stated. And now I'd like to turn the call over to Raj.

Thank you, John, and good evening, everyone. Electrovia's fiscal third-year quarter was another strong quarter and further demonstrated our focus on execution, profitability, and growth. There is a long list of milestones that we achieved over and since the quarter, and I'd like to reflect on a few of them on today's call. First of all, we made a second consecutive quarterly profit, despite having increased legal and other costs associated with our recent NASDAQ listing. This was made possible through improved gross margins on our battery system sales. I expect us to continue to raise margins over the coming quarters, and as our top-line revenue increases, our profitability and financial strength will continue to improve. battery systems for material handling applications especially those at large corporations are responsible for the majority of our revenue in the last quarter we have continued to see revenue and order growth including two new fortune 100 pedestal customer orders overall we have seen over 50 growth in our backlog compared to last year with regards to our oem partners We are pursuing a number of new initiatives, including new product offerings, some of which will be launched in fiscal year 2024 and some in fiscal year 2025. We believe there is substantial untapped potential for our Infinity batteries in the material handling sector. I'd estimate our penetration for electrified vehicles with our main OEM partner to be under 10%. Market indications are that the lithium ion penetration rate should increase to about 50% by 2027, which would be about five times our current production rate. While electrified low voltage products may have been very successful in the material handling and robotic markets, we are now positioning the company to take a leadership position in other heavy duty market segments. This includes electric bus, truck, mining vehicles, and energy storage, which all require high voltage battery systems. We have developed our high voltage product line to take advantage of the core Infinity technology benefits with respect to safety and cycle life, and also the strong systems capabilities relating to performance and reliability that we have demonstrated in the material handling market for years now. Since we announced the product line on July 20th, we have had considerable interest and are expecting to start shipping pre-production packs starting in the first quarter of fiscal 2024. We have received some initial orders for packs which include heavy duty vehicle applications and are actively pursuing large opportunities. These are mostly for startup production in 2025, which is in time for our Jamestown, New York operations to supply. That brings me to our overall expansion plans. The heavy-duty market needs our Infinity battery technology, and this is going to be an enormous market, which is just starting to be electrified. These are applications that need better safety due to the size and sensitivity of the applications, as well as the higher duty cycle that they achieve. Furthermore, they operate with substantially higher duty cycles than automotive applications, and therefore longevity and cycle life are going to be key selection parameters. Unfortunately, most of the nascent electrification of these applications are utilizing batteries where the technology is optimized for passenger vehicles, and the results have been poor. If you examine recent news, even just in the last few weeks, you will see a large number of the initial electrified bus and truck segments have had safety recalls all relating to the batteries. So given our continuing growth in the material handling sector and the combined with anticipated demand for our high-voltage batteries, we see the need to increase our production capacity significantly. Currently, we are in late stages of securing the financing for the first phase of what should ultimately be a multi-gigawatt-hour manufacturing footprint at our Jamestown, New York campus. A further benefit of these expansion plans is our ability to leverage the Inflation Reduction Act incentives, which will provide approximately $45 million in cash incentives for every gigawatt hour of output. We recently provided a brief update on the progress on our plans in our press release dated August 2nd. With that, I'd like to pass the discussion back to John, who will go over the financial results in more detail.