QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
OTC Markets Group Inc. |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
PAGE |
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Part I. FINANCIAL INFORMATION |
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20 |
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28 |
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28 |
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Part II. OTHER INFORMATION |
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29 |
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31 |
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32 |
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33 |
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Our ability to generate demand for our zero-emission commercial fleet vehicles in order to generate revenue. |
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Our ability to achieve independence from external sources for the financing of our operations. |
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Our ability to effectively execute our business plan. |
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Our ability and our suppliers’ ability to scale our zero-emission products assembling processes effectively and quickly from low volume production to high volume production. |
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Our ability to manage our expansion, growth and operating expenses and reduce and adequately control the costs and expenses associated with operating our business. |
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Our ability to obtain, retain and grow our customers. |
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Our ability to enter into, sustain and renew strategic relationships on favorable terms. |
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Our ability to achieve and sustain profitability. |
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Our ability to evaluate and measure our current business and future prospects. |
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Our ability to compete and succeed in a highly competitive and evolving industry. |
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Our ability to respond and adapt to changes in electric vehicle technology. |
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Our ability to protect our intellectual property and to develop, maintain and enhance a strong brand. |
September 30, |
December 31, |
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2021 |
2020 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
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Marketable Securities |
— | |||||||
Accounts receivable |
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Inventory, net |
— | |||||||
Prepaid expenses |
— | |||||||
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Total current assets |
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Property and equipment, net |
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Goodwill |
— | |||||||
Other non-current assets |
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Total assets |
$ | $ | ||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued liabilities |
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Notes payable, net |
— | |||||||
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Total current liabilities |
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Long-term liabilities |
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Other non-current liabilities |
— | |||||||
Notes payable, net |
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Total liabilities |
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Stockholders’ equity (deficit): |
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Preferred stock, $ and |
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Common stock, $ and issued and outstanding as of September 30, 2021 and tanding as of |
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Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ equity (deficit) |
( |
) | ||||||
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Total liabilities and stockholders’ equity (deficit) |
$ | $ | ||||||
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For the Three Months Ended |
For the Nine Months Ended |
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September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
September 30, 2020 |
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Sales |
$ | $ | — | $ | $ | |||||||||||
Cost of sales |
— | |||||||||||||||
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Gross profit |
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Operating expenses |
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General and administrative |
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Consulting |
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Total operating expenses, net |
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Loss from operations |
( |
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) | ( |
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Other income (expense): |
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Interest income , net |
— | — | ||||||||||||||
Other income |
— | |||||||||||||||
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Total other income |
— | |||||||||||||||
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Loss before income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax expense |
( |
) | — | ( |
) | — | ||||||||||
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Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Net loss per share to common stockholders: |
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Basic and diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Weighted shares used in the computation of net loss per share: |
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Basic and diluted |
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Common Stock |
Additional Paid-In |
Accumulated |
Stockholders’ |
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Shares |
Amount |
Capital |
Deficit |
Equity (Deficit) |
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Balance, December 31, 2020 |
$ | $ | — | $ | ( |
) | $ | ( |
) | |||||||||||
Common stock issued for cash |
— | |||||||||||||||||||
Common stock issued in merger |
— | |||||||||||||||||||
Offering costs netted against proceeds |
— | — | ( |
) | — | ( |
) | |||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
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Balance, March 31, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Common stock issued for cash |
— | |||||||||||||||||||
Offering costs netted against proceeds |
— | — | ( |
) | — | ( |
) | |||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
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Balance, June 30, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Common stock issued for cash |
— | |||||||||||||||||||
Stock based compensation |
— | — | — | |||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
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Balance, September 30, 2021 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
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Nine Months Ended |
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September 30, 2021 |
September 30, 2020 |
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Cash flows from operating activities: |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
— | |||||||
Unrealized gain on marketable securities |
( |
) | — | |||||
Stock based compensation expense |
— | |||||||
Provision for bad debt |
— | |||||||
Gain on debt forgiveness |
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( |
) |
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— |
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Changes in assets and liabilities: |
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Accounts receivable |
( |
) | ( |
) | ||||
Prepaid expenses |
( |
) | — | |||||
Inventory |
( |
) | — | |||||
Accounts payable |
( |
) | ( |
) | ||||
Accrued liabilities |
( |
) | — | |||||
Other non-current liabilities |
( |
) | — | |||||
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Net cash used in operating activities |
( |
) | ( |
) | ||||
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Cash flows from investing activities: |
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Purchase of property and equipment, net |
( |
) | ( |
) | ||||
Investment in marketable securities |
( |
) | — | |||||
Sale of marketable securities |
— | |||||||
Cash acquired in merger |
— | |||||||
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Net cash used in investing activities |
( |
) | ( |
) | ||||
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Cash flows from financing activities: |
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Proceeds from issuance of common stock |
— | |||||||
Related-party investment |
— | |||||||
Payments for offering costs |
( |
) | — | |||||
Principal advances from (repayments on) long term debt (SBA) |
( |
) | ||||||
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Net cash provided by financing activities |
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Net change in cash, restricted cash, and cash equivalents |
( |
) | ||||||
Cash, restricted cash, and cash equivalents at the beginning of the period |
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Cash, restricted cash, and cash equivalents at the end of the period |
$ | $ | ||||||
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Supplemental cash flow disclosures: |
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Cash paid for interest expense |
$ | $ | — | |||||
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Cash paid for income taxes |
$ | $ | — | |||||
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Purchase Price Allocation of ADOMANI, Inc. |
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Accounts receivable and other current assets |
$ | |||
Property and equipment |
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Right of use asset |
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Other assets |
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Goodwill |
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Accounts payable and accrued expenses |
( |
) | ||
Lease liability |
( |
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Notes payable |
( |
) | ||
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Purchase price, net of $3,373,332 cash acquired |
$ | |||
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Pro forma combined results of operations |
For the three months ended |
For the nine months ended |
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September 30 |
September 30 |
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2021 |
2020 |
2021 |
2020 |
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Sales |
$ | $ | $ | $ | ||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
September 30, |
December 31, |
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2021 |
2020 |
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Furniture and fixtures |
$ | $ | — | |||||
Leasehold improvements |
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Machinery & equipment |
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Vehicles |
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Test/Demo vehicles |
— | |||||||
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Total property and equipment |
$ | $ | ||||||
Less accumulated depreciation |
( |
) | ( |
) | ||||
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Net property and equipment |
$ | $ | ||||||
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Number of |
Exercise |
Remaining |
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Shares |
Price |
Contractual Life (years) |
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Outstanding warrants expiring |
$ |
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Outstanding warrants expiring |
$ |
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Outstanding warrants expiring |
$ |
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Outstanding warrants expiring |
$ |
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Outstanding warrants expiring |
$ |
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Outstanding warrants on September 30, 2021 |
$ | |||||||||||
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Weighted |
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Average |
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Remaining |
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Number of Shares |
Exercise Price |
Contractual Life (years) |
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Outstanding at March 31, 2021 |
$ | |||||||||||
Exercised |
( |
) | $ | |||||||||
Cancelled / Forfeited at $0.12 Exercise Price |
( |
) | $ | |||||||||
Cancelled / Forfeited at $0.45 Exercise Price |
( |
) | $ | |||||||||
Cancelled / Forfeited at $1.31 Exercise Price |
( |
) | $ | |||||||||
Outstanding Options at $0.10 Exercise Price |
$ | |||||||||||
Outstanding Options at $0.12 Exercise Price |
$ | |||||||||||
Outstanding Options at $0.45 Exercise Price |
$ | |||||||||||
Outstanding Options at $1.31 Exercise Price |
$ | |||||||||||
Outstanding Options at $ 0 .2753 Exercise Price |
$ | |||||||||||
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Outstanding at September 30, 2021 |
$ |
Payments due by period | ||||||||||||||||||||
Total | Less than one year |
1 - 3 years | 4 - 5 years |
More than 5 years |
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Operating lease obligations |
$ | $ | $ | $ | — | $ | — | |||||||||||||
Employment contract |
— | — | — | |||||||||||||||||
Total |
$ | $ | $ | $ | — | $ | — | |||||||||||||
Nine months ended September 30, | ||||||||
2021 | 2020 | |||||||
Lease expenses |
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Operating lease expenses |
$ | $ | — | |||||
Short-term lease expenses |
$ | $ | ||||||
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Total lease cost |
$ | $ | ||||||
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Other information |
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Cash paid for the amounts included in the measurement of lease liabilities for operating leases: |
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Operating cash flows |
$ | $ | — | |||||
Weighted-average remaining lease term (in years): |
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Operating leases |
— | |||||||
Weighted-average discount rate: |
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Operating leases |
% | — |
Nine Months Ended |
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September 30, 2021 |
September 30, 2020 |
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Consolidated Statements of Cash Flow Data: |
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Net cash used in operating activities |
$ | (9,917,328 | ) | $ | (328,322 | ) | ||
Net cash used in investing activities |
(3,654,626 | ) | (30,166 | ) | ||||
Net cash provided by financing activities |
22,282,308 | 199,990 | ||||||
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Net change in cash and cash equivalents |
$ | 8,710,354 | $ | (158,498 | ) | |||
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Incorporated by Reference |
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Exhibit Number |
Exhibit Description |
Form |
File No. |
Exhibit |
Filing Date |
Filed Herewith |
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31.1 | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | X | ||||||||||||||||||||
31.2 | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | X | ||||||||||||||||||||
32.1# | 18 U.S.C. Section 1350 Certification of Chief Executive Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||
32.2# | 18 U.S.C. Section 1350 Certification of Chief Financial Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||
101.INS | Inline XBRL Instance Document* | X | ||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | X | ||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document* | X | ||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document* | X | ||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document* | X | ||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definitions Linkbase Document* | X | ||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
# | The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act (including this Quarterly Report), unless the Registrant specifically incorporates the foregoing information into those documents by reference. |
* | In accordance with Rule 402 of Regulation S-T, this interactive data file is deemed not filed or part of this Quarterly Report for purposes of Sections 11 or 12 of the Securities Act or Section 18 of the Exchange Act and otherwise is not subject to liability under these sections. |
Envirotech Vehicles, Inc. | ||||||
Date: November 12, 2021 | By: | /s/ Phillip W. Oldridge | ||||
Phillip W. Oldridge Chief Executive Officer (Principal Executive Officer) | ||||||
Date: November 12, 2021 | By: | /s/ Michael K. Menerey | ||||
Michael K. Menerey Chief Financial Officer (Principal Financial and Accounting Officer) |