Adomani Inc (OTCMKTS: ADOM) has been on a powerful rise in recent weeks as EV stocks heat up across the board. The stock is nearing its 52 week high of $0;.489 which it needs to beat for confirmation of the next leg up. Adomani currently has a backlog of at least $3.1 million as of October.
The EV market is currently the place to be as Tesla makes new highs and EV startups such as Hyliion Inc., Fisker Inc. and Lordstown Motors Corp are trading at billion dollar valuations without a product on the market yet. The EV Market is projected to grow by 10 fold over the next decade.
Adomani Inc (OTCMKTS: ADOM) is a provider of new zero-emission electric vehicles and is a provider of zero-emission electric drivetrain systems for integration in medium to heavy-duty commercial fleet vehicles, as well as re-power conversion kits for the replacement of drivetrain systems in combustion-powered vehicles. ADOMANI’s zero-emission electric vehicles are focused on reducing the total cost of vehicle ownership and help fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price instability and federal environmental regulatory compliance.
The Company has developed advanced zero-emission electric drivetrain systems for integration in new buses and medium to heavy-duty commercial fleet vehicles. Adomani provide re-power conversion kits to replace conventional drivetrain systems for combustion powered vehicles with zero-emission electric drivetrain systems. The Companies vehicles and drivetrain systems are designed to help fleet operators unlock the benefits of technology that reduces greenhouse gases, nitrous oxide particulate matter and other pollutants, as well as to address the challenges of local, state and federal regulatory compliance and traditional-fuel price cost instability. The Companies vehicles and drivetrain systems can include options for telemetrics for remote monitoring, electric power-export and various levels of grid-connectivity. Adomani zero-emission products may also grow to include automated charging infrastructure and “intelligent” stationary energy storage that enables fast vehicle charging, emergency back-up facility power, and access to the developing, grid-connected opportunities for the aggregate power available from groups of large battery packs.
On November 12 ADOM announced Third Quarter 2020 Financial Results; Sales, severely impacted by the COVID-19 restrictions and the administrative delays and lack of access to HVIP funds, were approximately $164,000 and $577,000 for the three and nine months ended September 30, 2020, respectively, compared to $5.7 million and $10.6 million for the three and nine months ended September 30, 2019, respectively. The Company has approximately $224,000 in cash and debt was $414,000.
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The Company has made a lot of progress in recent mont hiring new CEO Phillip Oldridge; a senior executive with over 30 years of proven experience leading teams and delivering results in the electric transportation industries. Mr. Oldridge has been responsible for the introduction of a number of new EV products to the marketplace. According to Adomani previous CEO James L. Reynolds resigned in October and this was not the result from a disagreement with the Company on any matter relating to our operations, policies, or practices.
Adomani recently sold an all-electric, zero-emission logistics van to the City of Palmdale, California in July. The EV van will be used to deliver food and supplies to, and collect donations to benefit, residents in the South Antelope Valley Emergency Services (SAVES) program that is dedicated to alleviating hunger among very low and extremely low-income families and individuals in the SAVES service area. The Company also received a purchase order from the Pittsburg, California Unified School District Child Nutrition Services Department for one all-electric Class 5 box truck. It’s expected that the truck will be delivered in early 2021, and will be in service for the District to deliver food to its schools.
Phil Oldridge, CEO of ADOMANI, commented, “We wish Jim well in his retirement. As a result of the significant negative impact the COVID-19 virus has had on our business, combined with the lack of funding that continues to plague us, we have very recently had to make significant cost and headcount reductions in order to reduce cash burn until we are able to generate meaningful revenue again. While we support the government’s efforts to slow the spread of the virus while medical researchers try to create a vaccine, we also need to get the economy, and especially our business, going again, so we hope the relaxation of many of the restrictions happens soon, but that is out of our control. We remain convinced, however, that our biggest obstacle to success has been our inability to date to raise additional capital. Our most significant operating challenge remains the temporary inability for ADOMANI, a licensed California dealer for EV products and HVIP-certified since late October 2019, and our customers to access HVIP funding as a result of what we believe were serious administrative missteps by CARB and HVIP in 2019. The lack of access to HVIP funding has to-date prevented us from being able to deliver product to customers whose orders constitute the bulk of our backlog. We continue to believe that if those issues can be addressed and funds made available to us and our customers, we will benefit in 2021 from additional diversification of both our customer base and our product offerings. However, access to the HVIP funds may not be made available to us and others until ‘early 2021,’ per the HVIP website.
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Currently making a powerful move up the charts ADOM is an exciting story developing in small caps; the Company is fully funded moving forward with solid financials and they have been around for years and used to trade on the big boards. The stock is nearing its 52 week high of $0;.489 which it needs to beat for confirmation of the next leg up. Adomani currently has a backlog of at least $3.1 million as of October. The EV market is currently the place to be as Tesla makes new highs and EV startups such as Hyliion Inc., Fisker Inc. and Lordstown Motors Corp are trading at billion dollar valuations without a product on the market yet. The EV Market is projected to grow by 10 fold over the next decade. We will be updating on ADOM when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with ADOM.
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Disclosure: we hold no position in ADOM either long or short and we have not been compensated for this article.