Here's the company's response regarding the switch from ebikes to gas bikes as well as gross margin numbers.

In a very quick reply to an email I sent, Ali Mahdavi responded to my inquiries regarding the Q1 statement of ebike orders, then the switch as noted in yesterday's ammendment news. He said that I was correct on my understanding of the orderbook as at the end of Q1. Since the feedback they got from dealers and distributors was a surge in small gas bike (up to 50cc's) demand and slowness in educating the consumer market with premium ebikes, the company allowed them to shift their orders from ebikes to the small gas bikes.....given the allowance of this shift and ZPP's commitment to shareholders, they then negotiated the adjustment to the MSA to include small gas bikes in our product portfolio for the next 10 years. Essentially we (ZPP) acquired the gas bike at no cost.

Ali also stated that gross margins will be similar to the ebikes and targeted significantly north of 10 percent.

So, with bike order guidance the same as it had been and gross margins essentially the same, if not more, we should be able to expect continued growth in fundamental metrics of the company. Having said that, the only other thing I can think about is would there be some capital costs to initiate production of gas bikes. I'm sure the plant would need some "reconfiguration/retooling"??? Will get back to you after I find this out!

Have a good afternoon!