John Gibson

Thanks, Raj. Revenue for Q3 was $10.3 million compared to a restated $10.6 million in Q3 fiscal 2023, a modest decline of 3% year-over-year. Revenue was not as high as we anticipated due to certain orders being delayed by customers. And as Raj mentioned, those delays were at our customer's request and largely related to construction projects. Importantly, however, we increased our gross margin both on a dollar basis and as a percentage of revenue.

Gross margin was $3.5 million or 33.7% of revenue compared to $3.2 million or 30.5% of revenue in the year ago quarter, further emphasizing the operational transformation of the company in general. Importantly, adjusted EBITDA was $594,000 compared to $1.7 million for the year ago quarter, giving us an EBITDA percentage of 6% for the current period. Our trailing 12-month adjusted EBITDA was $4.8 million and revenue of $49.4 million, giving us an adjusted EBITDA margin of 9.7%.

We had an operating loss of $0.6 million compared to an operating income of $0.8 million in the prior year. Our net loss for the quarter was $324,000, an improvement of $232,000 from the prior year. For the first nine months of the fiscal 2024, the company generated positive cash from operating activities of $0.5 million compared to cash used in operating activities of $2.6 million in the prior year. At June 30, 2024, total debt was $18.2 million compared to $17.3 million in the prior year. The company continues to manage cash conservatively.

With the additional capacity we have in our revolving facility, we believe we have adequate liquidity to support our anticipated growth for fiscal year 2025 and beyond. That concludes the financial overview.

I'll now turn the call over to Raj for concluding remarks.

Rajshekar DasGupta

Thank you, John. My vision for Electrovaya remains to become the world's leading lithium-ion battery manufacturer for heavy-duty, mission-critical applications. I've absolutely no doubt that we will achieve this goal. While we are disappointed that we did not hit the top line targets that we set out last year, fiscal 2024 is most definitely on a path to be a foundation year, and the company is today in a better position than it ever has been.

Electrovaya has outstanding customers and relationships, strong margins, technology, and a clear path to grow into our existing verticals and expand into new ones. This is clearly not illustrated in the markets, but fortunes are made in downturns. There are many companies in our sector, which are struggling at the moment. Electrovaya is not one of them. Our highly differentiated technology has no shortage of demand. Development, validation and scale takes time. And as observers, it is sometimes difficult to gauge progress. But it's there, and the timing for this ripening is in 2025.

Our next question comes from Craig Irwin with ROTH Capital Partners.

Craig Irwin

Good evening, and thanks for taking my questions. So, Raj, you mentioned some of the different things you're doing for market development away from materials handling, some of the newer opportunities that you're facing down, that you're working on actively. Can you maybe help us sort of rank the different opportunities there from a potential materiality standpoint? If we are looking at things you're possibly doing in Japan with Sumitomo or some of the other mining equipment producers and then some of the other high-voltage products that you're introducing, which one of these do you think could potentially make the largest contribution to revenue in 2025 or fiscal 2025? And are there other market opportunities you would call out as material that we should pay attention to and watch closely?

Rajshekar DasGupta

So, there are quite a number of -- and this is, of course, dynamic. It can change on a dime. But as it stands, right now, we have quite a breadth of applications our high voltage battery system can go into. So the same battery can go into a rail application. That same battery can go into a defense application. That same battery can go into a vehicle application.

Where we see things in 2025 will be, I'd say, the rail side of things can be quite substantial next year, surprisingly. The defense sector is, we have batteries with four defense groups right now, all small numbers that can become larger depending on their schedules. We don't really have a clear idea of that. So that one is a bit of an unknown. Then we see opportunities even somewhat adjacent to the material handling business, which would be, we're looking at airport ground equipment a little bit. We previously shied away from that market, but we do see some opportunities there.

And then -- which one have I missed there? In terms of mining, mining is really going to be the largest opportunity, I would say, mining and construction, but that will take 2025 is more going to be development -- engineering development projects, which we've slated. There'll be some revenue, but it's really 2026 where that starts to take off. In the long run, I'd say, mining is going to be a big opportunity for Electrovaya. But in the short run, 2025, of course, material handling is still going to dominate. Some of these other sectors are going to become meaningful. But in the long run, mining is going to be a terrific sector for us.