EV Transportation Services, an electric vehicle start-up focused on lightweight delivery vehicles, has filed papers with the Securities and Exchange Commission for an initial public offering. The company is looking to tap into the rapidly growing electric utility vehicle market, which has witnessed a steady uptrend over the past decade.
The company is looking to raise about $20 million through the offering, pursuant to which the stock will start trading on the Nasdaq Capital Market under the ticker symbol EVTS. The proceeds from the offering will be used mainly for various initiatives aimed at scaling up the business. However, details like the offer price and the number of shares are yet to be disclosed.
EV Transportation was founded in May 2015 by David Solomont, who has been serving as the chief executive officer since then. The vehicles have certain specialties that can give the company an edge – they provide an application-flexible platform, and are easily configurable for multiple applications including parking management, perimeter patrol, and last-mile urban small package/food delivery. Also, cutting-edge technologies like connected vehicle solution and the use of lithium iron phosphate batteries, instead of lithium-ion batteries, help the business stand out among its peers.
Like all early-stage electric vehicle companies, EV Transportation is a loss-making company that has incurred a cumulative deficit of $16.1 million since its inception through June 2022, when the company had 22 employees and five full-time contractors. As a public entity, the primary challenge for EV Transportation would be to become profitable in a time-bound manner. The company will likely continue incurring quarterly losses until it scales up manufacturing to the required levels and meets early delivery targets.
It needs to be noted that designing, developing, and marketing electric vehicles is a time-consuming and cost-intensive process. The bottom line will come under pressure from the high costs related to procuring raw materials from third parties also. Plans are afoot to enter into more suitable purchasing agreements for procuring components. The main elements of the product road map include a 3-wheeled, all-electric design and autonomous drive.
The initial production of the company’s flagship FireFly ESV vehicles began in January 2022 at the Fort Worth facility, in limited quantities, for the purpose of development and demonstration. The demo version of the 2023 model FireFly ESV is currently under production, with commercial production for North America scheduled to begin in the fourth quarter and that for the U.K. and Europe in the first quarter.
In fiscal 2022, EV Transportation did not generate revenues due to the absence of marketable products. The company incurred a net loss of $4.8 million, compared to a loss of $2.53 million in the previous year. At $4.59 million, operating expenses were up 81% year-over-year.
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