Electrovaya Inc.

Greetings. Welcome to the Electrovia Q1 2024 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, and good evening, everyone. Thank you for joining today's call to discuss Electrovia's Q1 2024 financial results. Today's call has been 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 December 31st, 2023. If you'd like a copy of the release, you can access that on our website, If you'd like to view our financial statements and management discussion and analysis, you can access those documents on the new CEDAR Plus 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 relating to forward-looking information. We will provide information relating to our current views regarding market trends, including their size and potential for growth, and our competitive position within those target markets. Although we believe that the expectations reflected in such forward-looking statements are reasonable, they do obviously involve risks and uncertainties, and actual results may differ materially from those expressed or implied in such statements. Additionally, information about factors that could cause actual results to differ materially from those expectations, and about material factors or assumptions applied in making forward-looking statements, may be found in the company's press release announced in the Q1 fiscal 2024 results, and the most recent annual information forum and management discussion and analysis under risks and uncertainties, as well as in other public disclosure documents filed with the Canadian and U.S. security regulatory authorities. Finally, please note that all the numbers discussed on the call are in U.S. dollars and less otherwise noted. Now I'd like to turn the call over to Raj.

Thank you, John, and good evening, everyone. Thank you for joining our fiscal Q1 2024 call. Our first quarter results met our internal targets, setting the company on track to achieve our full-year revenue targets. As those who have followed Electrovia for the last few years may recall, our first quarter is typically our weakest quarter of the year due to the purchasing patterns of our customer mix. Our revenue this quarter increased by 41% over the first quarter of last fiscal year, making for a good start to the current fiscal year. Importantly, our gross margins also improved substantially from the previous quarter with battery systems exceeding 30% and total revenue with more than 29% gross margin. We anticipate further margin improvements in the second half of fiscal 2024 from anticipated cost reductions and increased volumes. Finally, we continued our trend to profitability with our fourth consecutive quarterly positive EBITDA result. While it has been a short time since our last corporate update, I'd like to reflect on a few of the key milestones we achieved over the quarter and our vision going forward. First, we delivered a strong first quarter with strong revenue, improved margins, and order intake. We continue to track towards our fiscal year 2024 revenue and profitability targets. Sales of battery systems for material handling applications through our OEM partners drive the majority of our revenue. During the quarter, we also posted meaningful engineering services revenue, which is tied to a key development program with one of our OEM partners. I expect this particular development program to eventually lead to significant revenue potential as these products move from engineering and development to production by the end of the calendar year. This program also demonstrates the key partnership we have with this OEM and the level of investment being made into these new Electrify platforms by both Electrivia and the OEM partner. Second, we continue to make progress in broadening our market reach for other applications for our Infinity battery technology. We are in discussions with multiple potential partners in a diversity of markets, such as electrified construction, mining, transit, and energy storage. As we mentioned in our last quarterly update, Electrify is growing a relationship with one of the largest Japanese trading companies. Through them, we are in discussions with several potential OEM partners and are making good progress. I expect to have a customer win in the near term through this partnership. Also, last call, I mentioned some interactions with a leading bus OEM, and those have continued over the first few weeks of the new year. Our high voltage battery systems will also be going through a full ECE R100 certification in the coming months, which will support further sales development and prove some of the safety benefits of Electrivia's Infinity technology. My vision is for Electrivia to become the leading battery player for the heavy duty applications that require longer lasting and safer batteries. Thirdly, we are making progress in increasing our working capital availability through a new debt facility. This plan increase in working capital availability will be key to provide us with the runway to achieve our anticipated revenue growth for the current fiscal year. In parallel, we are making progress towards securing financing for investment in our project to expand manufacturing and sell assembly in Jamestown, New York. As mentioned previously, we anticipate the financing will have a government-backed component, which requires a higher level of due diligence to the part of the lenders. We have weekly calls with this government entity and are gaining a level of confidence in closing a transaction within the next two to three months. With that, I'd like to pass the call to John Gibson, who will go into the financial results in more detail.