LOS ANGELES, Calif. – GreenPower Motor Company Inc. (NASDAQ: GP) (“GreenPower” or the “Company”) a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced that it has entered into an agreement whereby more than $6 million in deposits that had been made to GreenPower for the manufacture of EV Star Cab & Chassis will be retained by GreenPower with no further obligation to deliver vehicles.
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 further information go to www.greenpowermotor.com
