GreenPower Motor Company Inc. — FY2024 Form 20-F
Reporting period: Fiscal year ended March 31, 2024; this is an annual report, not a standalone 2023 Q4 filing. Financial statements are audited and prepared under IFRS in U.S. dollars. The auditor issued an unmodified opinion but highlighted substantial doubt about the Company’s ability to continue as a going concern.
Business context and key results
GreenPower designs, manufactures and distributes all-electric commercial vehicles, including school buses, transit buses, shuttles, cargo vehicles and cab-and-chassis models. Most manufacturing is contracted to third parties, with final assembly and some school-bus production in North America.
| Metric | FY2024 | FY2023 |
|---|---|---|
| Revenue | $39.27 million | $39.70 million |
| Gross profit / margin | $5.36 million / 13.6% | $7.25 million / 18.3% |
| Loss for the year | $18.34 million | $15.04 million |
| Loss per share, basic and diluted | $0.74 | $0.64 |
| Cash flow used in operations | $1.13 million | $14.76 million |
| Cash flow from financing | $2.32 million | $8.19 million |
| Cash at year-end | $1.15 million | $0.60 million |
FY2024 deliveries were 222 vehicles, down from 299. Revenue declined 1.1%, while cost of sales increased 4.5%. Gross margin contracted as inventory write-downs, West Virginia facility overhead at below-capacity production, and below-target GP Truck Body margins weighed on results. The Company recorded $1.08 million of inventory write-downs in cost of sales and $1.45 million of allowance for credit losses in operating expenses.
Balance sheet, debt and liquidity
At March 31, 2024, GreenPower reported total assets of $45.20 million, total liabilities of $33.64 million, shareholders’ equity of $11.57 million and working capital of $15.56 million. Inventory was $32.01 million, or the majority of current assets; accounts receivable, net, was $2.83 million. Management states that additional capital will likely be needed in the near term.
- The $8 million Bank of Montreal operating line had $7.46 million drawn. It is repayable on demand, and availability above $5 million is subject to margining requirements. The Company reported compliance with its current-ratio covenant at year-end.
- The EDC revolving loan facility has a limit of $5 million; $2.27 million was outstanding at year-end. It finances working capital for vehicles under approved purchase orders, bears floating interest at U.S. Prime plus 5%, and includes financial covenants.
- Related-party loans were reported at $2.43 million, representing CAD$3.67 million of principal owed to an entity beneficially owned by the CEO and Chairman. The loans bear 12% interest and are subordinated to the EDC lender; no payment is due before the EDC facility is repaid.
- Lease liabilities were $4.64 million and deferred customer revenue was $9.94 million. The latter primarily represents customer deposits for vehicles not yet delivered.
Operating cash outflow improved year over year, mainly as inventory and receivables were converted into cash. Financing included $0.52 million of ATM share proceeds and $2.24 million of EDC facility proceeds, partly offset by lease and related-party repayments. On May 9, 2024, after year-end, the Company raised gross proceeds of $2.33 million through an offering of 1.5 million shares and warrants for 1.575 million shares, before fees and expenses.
Changes, outlook and risks
- Sales shifted toward a more diverse group of end customers and markets, although Workhorse remained a key customer: GreenPower sold it 105 EV Star CCs in FY2024, compared with 220 in FY2023. The filing says one customer accounted for approximately 30% of FY2024 revenue, versus 59% in FY2023.
- School-bus sales increased to 41 BEAST and Nano BEAST vehicles from 9 in the prior year. Government voucher proceeds fell to $0.39 million from $4.61 million.
- Management’s plans to address going-concern uncertainty include selling inventory, collecting receivables, using available credit and seeking additional financing. The filing gives no quantified revenue, margin or profitability guidance.
- Risks include continued losses and negative operating cash flow, dependence on external financing, customer and government-incentive concentration, supplier and contract-manufacturer reliance, execution of production expansion, and possible U.S. tariffs on China-origin vehicles and components. The filing cites announced potential tariff increases to over 100% by August 2024 and says mitigation through alternative sourcing may take time.
- Credit risk increased: allowances were recorded against receivables and a promissory note, and multiple leased vehicles were repossessed after customer defaults. Subsequent to year-end, five EV 250s and one EV 350 were also repossessed.
- Several legal claims remained unresolved, including disputes involving a former CEO, a former employee’s company and a lease customer. The Company recorded no provision, stating it did not consider a material financial impact estimable.
- Management concluded disclosure controls and internal control over financial reporting were ineffective at year-end due to material weaknesses in inventory controls, revenue recognition and accounting for a non-cash related-party debt gain. Remediation efforts include external consulting and plans to add accounting resources.
Investor verification checklist
- Assess cash runway, access to the BMO and EDC facilities, covenant compliance and the need for additional financing; consider the May 2024 offering’s net proceeds and dilution.
- Verify inventory condition, conversion to deliveries and cash, production utilization in West Virginia, and whether gross margins can recover.
- Review receivable and lease-customer collections, including the adequacy of credit-loss allowances and recoveries from repossessed vehicles.
- Track Workhorse orders and customer concentration, school-bus demand, voucher funding and the timing of customer-deposit deliveries.
- Monitor tariff exposure and the cost, timing and feasibility of shifting suppliers or contract manufacturing.
- Check progress remediating the disclosed control weaknesses and developments in the unresolved legal matters and contingent liabilities.