Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Delivered eight BEAST all-electric school buses to school districts in Southern California, reducing children’s exposure to harmful vehicle emissions.
• Three EV Star Transit Plus vehicles delivered to a company at Vancouver International Airport, contributing to the airport’s goal of eliminating emissions.

Social Achievements

• Expanded sales and marketing capabilities by adding additional EV Stars to its demonstration fleet and adding additional dealership partners.
• Entered into a lease/purchase agreement with the state of West Virginia to set up a school bus manufacturing facility, creating jobs.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting customer purchasing ability, supplier deliveries, employee work, and receivable collections.
• Competition from well-capitalized competitors in the all-electric bus market.
• Changing regulatory requirements and safety standards.
• Reliance on key suppliers and potential difficulties securing additional or alternate sources of supply.
• Higher initial price of electric buses compared to traditional diesel buses, reliance on government grants and subsidies.
• Increased shipping costs and delays in deliveries of parts and components.
• Tariffs on imported goods from China increasing the cost of buses.

Mitigation Strategies

• Monitoring ongoing capital requirements and exploring additional financing options.
• Developing and expanding sales opportunities and increasing sales backlog.
• Further developing sales and marketing, engineering, and technical resources and capabilities.
• Attempting to qualify and obtain components from multiple sources whenever feasible.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BEAST all-electric school buses
• EV Star Cab and Chassis
• EV Star Plus
• EV Stars
• EV Star Cargo
• EV 350
• Synapse shuttles

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on customer purchasing ability, supplier deliveries, employee work, and receivables collection.
• Competition from well-capitalized competitors in the all-electric bus market.
• Changing or more onerous regulatory requirements and safety standards.
• Reliance on key suppliers, potential for production delays due to supply chain issues.
• Higher initial product price compared to traditional diesel buses, reliance on government grants and subsidies.
• Increased shipping costs and delivery delays.
• Tariffs on imported parts and components from China.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Collaborated with Bridge Valley College to train 20 production employees.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher parts inventory costs and lower margins at Lion Truck Body.
• Increased shipping costs and delays in deliveries of parts and components.
• Reliance on key suppliers and potential difficulties securing additional or alternate sources of supply.
• Potential for delays in government grant funding.
• Changes in regulatory requirements and safety standards.
• Operational risks including fiduciary breaches, product liability claims, regulatory compliance failures, and business disruption.

Mitigation Strategies

• Implementing changes and controls to remediate material weaknesses in internal control over financial reporting.
• Engaging an external financial controls consultant and hiring additional accounting resources.
• Monitoring foreign currency balances (but not engaging in hedging activities).
• Evaluating and considering new sources of financing.
• Developing and expanding its dealer network.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• All-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo vans, and a cab and chassis.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Production of all-electric, zero-emission vehicles
• Highest number of vehicles delivered under New Jersey's Zero-Emission Incentive Program and second highest under California's HVIP voucher program

Social Achievements

• Positive gross profit for vehicles sold
• Creation of jobs in US manufacturing facilities

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• General economic conditions
• Transportation industry conditions
• Demand for products
• Potential delays in deployment of services or capital expenditures
• Changes in government laws, tariffs or policies
• Availability of sufficient financial resources
• Ability to locate satisfactory industry partners
• Continued funding and availability of grants, subsidies and vouchers
• Ability to meet production volume goals
• Competition for capital and skilled personnel
• Changes in economic and market conditions
• Competition in target markets
• Potential capital needs
• Management of future growth and expansion
• Risk of third-party claims of infringement
• Legal and/or regulatory risks
• Protection of proprietary information
• Success of brand development efforts
• Risks associated with strategic alliances
• Reliance on distribution channels
• Product concentration
• Ability to hire and retain qualified employees

Mitigation Strategies

• Manufacturing lite approach leveraging US and international partners for flexibility and cost-effectiveness
• Diversified manufacturing locations (West Virginia and California)
• Securement of a revolving loan facility from EDC for up to $5 million

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• All-electric, zero-emission vehicles

Awards & Recognition

• Not disclosed