Envirotech Vehicles, Inc., a Delaware-based manufacturer of motor vehicle parts and accessories with a market capitalization of $21.47 million, announced the appointment of a new Chief Financial Officer (CFO) following the resignation of its current CFO, Franklin Lim. The company, trading on the NASDAQ under the ticker EVTV at $1.23 per share, disclosed these executive changes in a recent SEC filing. According to InvestingPro analysis, the company currently shows a weak financial health score of 1.32 out of 5, though analysts expect net income growth in the coming year.
Franklin Lim, who has served as CFO, will step down from his role effective December 31, 2024, due to health reasons. Following his departure, Lim will continue to provide consulting services to the company, with terms to be determined at a later date. The transition comes at a challenging time, with InvestingPro data showing the company's revenue declined by 62.7% in the last twelve months, though analysts project a 20% growth in the current fiscal year.
The company's board of directors has appointed William C. Miller as the new CFO, effective January 1, 2025. Miller, 49, brings over 25 years of accounting and finance experience to the role. Prior to this appointment, he operated his own public accounting firm and served as the Director of Internal Audit for the Office of the Arkansas Lottery. Miller is a Certified Public Accountant and Chartered Global Management Accountant, holding a Bachelor of Business Administration from Henderson State University.
According to the terms outlined in an offer letter, Miller will receive an annual base salary of $150,000. Additionally, he will be granted a stock option to purchase 100,000 shares of Envirotech Vehicles' common stock, which will vest over a period of 24 months. Ninety days into his employment, Miller will also be eligible for the company's employee benefit programs.
The company's SEC filing states that there are no familial relationships between Miller and any company directors or executive officers, nor are there any transactions involving Miller that would require disclosure under SEC regulations.
This executive transition comes at a time when Envirotech Vehicles is navigating the evolving landscape of the automotive parts industry. While the company maintains a healthy current ratio of 3.43 and operates with moderate debt levels, InvestingPro analysis reveals the company is currently burning through cash, with negative free cash flow of $3.28 million in the last twelve months. The information is based on a press release statement and InvestingPro data, which offers 12 additional key insights about the company's financial position.
In other recent news, Envirotech Vehicles has made significant strides in the electric vehicle market. The company has acquired Maddox Industries, a move expected to boost its manufacturing capabilities and provide a significant revenue stream from government contracts over the next three years. As part of the acquisition, Jason Maddox, founder of Maddox Industries, has been appointed as President of Envirotech, and Elgin Tracy, with extensive operational experience, has stepped in as Chief Operating Officer.
However, Susan M. Emry has resigned from her roles as Executive Vice President and Corporate Secretary, with no details on her successor or transition plan yet announced. The company has also welcomed cryptocurrency pioneer Brock Pierce to its board, a move expected to bring strategic insights and potential investment opportunities.
In terms of operations, Envirotech has sold 25 " Bumble (NASDAQ:BMBL) Bee" model electric school buses across Arkansas and Texas and added seven new hires to the team. The company has also secured a $16.2 million deal with Texas-based PlugD Commercial Electric Leasing and Rentals Inc. for the supply of 200 electric high-roof vans and trucks. Moreover, Envirotech obtained $4.3 million in binding purchase orders for 43 vehicles from 19 customers, backed by New Jersey's Zero Emission Incentive Program.
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