GreenPower received advance payments to manufacture EV Star Cab & Chassis and these deposits were recorded as deferred revenue until delivery of the vehicles was accepted. The parties have agreed to not proceed and a total of $6.8 million of deferred revenue will be recognized as revenue in the current quarter ending December 31, 2025.
"The elimination of this deferred revenue reduces the total liabilities of the Company with a corresponding increase in our shareholders equity of $6.8 million strengthening our balance sheet," said Fraser Atkinson, CEO of GreenPower. "The EV Star Cab & Chassis that we manufactured with these payments will be used to produce our all-electric, purpose-built Type A Nano BEAST school bus, which will significantly reduce production lead times for these vehicles. This creates a clear path toward accelerated revenue recognition, margin expansion and improved operating cash flow for GreenPower."
About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements.
For more information please visit, www.greenpowermotor.com
