Executive Summary

Breakout quarter with strong top-line inflection: revenue rose to $2.09M (+1,009% YoY) on 21 vehicle deliveries (vs. 2 in Q2’21) and up ~88% sequentially per management; net loss widened modestly given investment in sales, R&D and headcount .
Operational ramp catalysts: (i) product pipeline (Class 5 truck and 84-passenger school bus targeted by year-end 2022), (ii) Osceola facility build-out with up to $27M Arkansas incentive package, and (iii) expanded dealer presence (DaVinci Innovations) .
Estimate context: S&P Global consensus EPS and revenue estimates for Q2’22 were unavailable; we therefore benchmark against prior quarter and prior year. Management indicated Q3 deliveries could double to “40+” units, implying continued sequential growth momentum (directional, not formal guidance) .
Policy tailwinds and funding access (NJ ZIP, CA vouchers) continue to support demand; uplisting to Nasdaq (early July) enhances capital markets visibility—potential stock catalysts include sequential delivery acceleration, product launches, and Osceola milestones .

What Went Well and What Went Wrong

What Went Well
- Deliveries and revenue inflected: 21 vehicles delivered drove sales to $2.09M (+1,009% YoY; +~88% QoQ per CEO) .
- Funding/program leverage: Orders supported by voucher programs (notably NJ ZIP; also CA) plus bank financing relationships; demand broadening beyond voucher states .
- Strategic progress: Uplisting to Nasdaq and Arkansas incentive package (valued up to $27M over ~8–10 years) to support Osceola build-out; first Arkansas dealer added (DaVinci) .
What Went Wrong
- Losses persist amid investment: Total operating expenses rose to $1.83M (vs. $0.93M), widening operating loss as the company invested in sales/marketing, R&D (school bus, Class 5 truck), and added headcount; net loss was $1.01M (vs. $0.89M) .
- Estimate visibility limited: No formal numeric guidance and lack of published Street consensus complicate near‑term benchmarking; management’s Q3 “40+ units” target is directional, not formal guidance .
- Facility timing: Osceola full production is an ~18‑month build (roof/solar/electrical upgrades, equipment placement), delaying full in-house scale benefits; near term margin/throughput depends on outsourced supply and final assembly .

Financial Results

Core P&L and deliveries (oldest → newest)

Metric	Q2 2021	Q1 2022	Q2 2022
Revenue ($USD)	$188,266	$1,108,500	$2,087,700
Net Loss ($USD)	$(893,079)	$(2,527,397)	$(1,010,264)
Diluted EPS ($)	$(0.06)	$(0.01)	$(0.07)
Vehicles Delivered (units)	2	12	21

Margins (where disclosed or derivable)

Metric	Q2 2021	Q2 2022
Gross Profit ($USD)	$40,334	$827,220
Gross Profit Margin (%)	21.4% (=$40,334/$188,266)	39.6% (=$827,220/$2,087,700)

Operating expenses and loss from operations

Metric	Q2 2021	Q2 2022
Operating Expenses ($USD)	$931,354	$1,833,066
Loss from Operations ($USD)	$(891,020)	$(1,005,846)

Balance sheet and liquidity snapshots

Metric	Mar 31, 2022	Jun 30, 2022
Cash, Cash Equivalents, Restricted Cash and Marketable Securities ($USD)	$9,099,105	$6,332,984
Working Capital ($USD)	$21,034,550	$19,995,467
Inventory, net ($USD)	—	$5,607,135

Estimate comparison (S&P Global)

Q2 2022 Revenue Consensus Mean: Not available (S&P Global – coverage/availability constrained).
Q2 2022 Primary EPS Consensus Mean: Not available (S&P Global – coverage/availability constrained).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Deliveries (units)	Q3 2022	None	“On target to double” Q2’s 21 units to 40+ units (directional)	New directional commentary
Product timing	H2 2022	None	Class 5 truck and 84-passenger school bus “expected to be available by the end of 2022”	New timing detail
Facility ramp	18 months to initial full line	None	Osceola full-line production targeted ~18 months; roof/solar/electrical upgrades first 5+ months	New timeline
Financial guidance (revenue/margins/OpEx)	2022	None	None provided	Maintained: no formal guidance

Note: Management did not issue formal quantitative revenue, margin, OpEx, OI&E or tax guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2022)	Current Period (Q2 2022)	Trend
Demand & deliveries	12 vehicles delivered; finished goods inventory 24 trucks/100 vans; 100 trucks + 100 vans in production	21 deliveries in Q2; 33 YTD; targeting 40+ in Q3	Accelerating
Funding/vouchers	Leveraging NJ ZIP; broader incentives	NJ ZIP and CA vouchers cited; bank financing relationships growing	Supportive
Manufacturing footprint	Osceola phase-one renovations completed; moving to next phase	Osceola roof replacement, solar/electrical upgrades; 18‑month path to full line	Executing plan
Dealer network & Arkansas law	FAR network expanding	DaVinci Innovations as first dealer; Arkansas law requires dealer sales; legislative change being pursued	Network build-out
Margins & cost structure	Not detailed in Q1 PR	Margin sustainability tied to in-house engineering, cost controls; shipping costs currently elevated	Constructive
Capital markets/financing	—	Uplisted to Nasdaq (July); potential financing in Q3/Q4 given improving results	Improved access

Management Commentary

“Our second quarter was a breakout quarter… resulting in significant revenue growth year over year, as well as an 88% increase in sales sequentially… During the second quarter we delivered 21 vehicles and to date in 2022 we’ve delivered a total of 33 vehicles.” — CEO Phillip Oldridge .
“With… a new commercial clean vehicle credit, we anticipate businesses will be even more incentivized… EVTV is well‑positioned…” — CEO .
“Partnership with the Arkansas Economic Development Commission… an economic incentive package valued at up to $27 million.” — CEO; CFO clarified recognition over ~8–10 years, primarily tax rebates/credits .
Margin outlook: “Our margins are really good… great cost controls… in‑house engineering… shipping out of Taiwan and Malaysia… very expensive and that will all go away [with U.S. build‑out].” — CEO .
Facility timeline: roof replacement and solar prep first; “18 month window before you’d actually see full blown production” on one line — CEO .

Q&A Highlights

Inventory and pipeline: ~$5.6M inventory includes ~60 Class 3/4 vans ready, ~25 trucks inbound; remaining Class 3/4 trucks largely sold pending upfitting; deposits tied to upcoming Class 5/6 trucks and five 84‑passenger school buses planned by year‑end .
Voucher/geography: Sales supported by NJ ZIP and CA programs; also sales without vouchers, aided by three banks approving lines on EVTV vehicles .
Osceola incentives/accounting: ~$27M package recognized over ~8–10 years via tax rebates/employee credits and other instruments; operational savings expected as scale builds .
Delivery cadence: Management “on target” to double Q2 deliveries in Q3 (40+ units) .
Dealer/channel: Arkansas requires dealer sales (DaVinci). Legislative change underway to allow direct sales; avoids double counting in backlog .
Product roadmap: Five 84‑passenger school buses by year‑end; right‑hand‑drive vans certified (USPS-oriented), with broader interest; prisoner transport van pilot in Georgia .
Sourcing/localization: Increasing U.S. content (axles, motors, brakes, steel via U.S. Steel/Big River) as Osceola ramps; remaining outsourcing mainly batteries/harnesses .

Estimates Context

S&P Global consensus (EPS and revenue) for Q2 2022 was unavailable (coverage/availability constrained), so no formal beat/miss vs. Street can be determined for this quarter. We therefore benchmark performance vs. prior quarter and prior year [GetEstimates error noted; no published figures available].

Key Takeaways for Investors

Delivery ramp is the core near-term driver: 21 units in Q2 (33 YTD) with management targeting 40+ units in Q3; watch execution on scheduled deliveries and upfitting throughput .
Policy tailwinds + financing broaden TAM: NJ ZIP and CA vouchers, plus bank financing relationships, are catalyzing orders beyond voucher-centric regions .
Structural cost/margin path tied to Osceola: As U.S. assembly/local sourcing scales (18‑month build), freight and BOM should normalize, supporting margin sustainability outlined by management .
Capital markets positioning improved: Nasdaq uplisting completed; management indicated potential financing in Q3/Q4, which could fund capex/working capital for accelerating deliveries .
Product catalysts: Class 5 truck and 84‑passenger school bus targeted by year‑end; right‑hand‑drive and specialty (prisoner transport) variants expand use cases and customer set .
Channel strategy evolving: Dealer-first model required in Arkansas with active legislative efforts to enable direct sales; DaVinci provides immediate in‑state channel access .
Risk checks: Lack of numeric guidance and limited external estimate coverage increase forecast uncertainty; facility ramp (roof/solar/electrical/equipment) and supply chain timing remain critical execution variables .

Appendix: Primary Source References

Q2 2022 8‑K and press release, including financial statements and commentary .
Q2 2022 earnings call transcript (prepared remarks and Q&A) .
Q1 2022 8‑K and press release (prior quarter baselines) .
FY 2021 10‑K (context/backlog, incentives, competitive landscape) .

Envirotech Vehicles, Inc. (EVTV)·Q2 2022 Earnings Summary