Financial Highlights:

• Revenue for Q1 FY2023 was $7.8 million (C$10.7 million), a significant increase compared to $1.3 million (C$1.7 million) in the fiscal first quarter ended December 31, 2021 ("Q1 FY2022"). Despite the year-over-year growth, revenue for Q1 FY2023 was impacted by seasonality, as some of Electrovaya's key customers in the retail sector prefer deliveries during other periods of the calendar year since the December quarter represents their peak season. Management anticipates continued strong revenue growth during Fiscal 2023 ("FY 2023") and materially higher revenue in the following quarters of FY 2023 compared to the first quarter. The Company has a strong order backlog, and has also received indications of significant new orders for delivery during the 2023 calendar year. The previously announced revenue guidance of $42 million (C$56.8 million) for FY 2023 is maintained.
• Adjusted EBITDA1 for Q1 FY2023 was $(0.4) million (C$0.5 million), which included approximately $0.2 million of one-time costs related to R&D expenses for projects that were completed during the quarter. Management anticipates that the Company will generate positive Adjusted EBITDA1 for the remainder of FY 2023.
• On November 9, 2022, Electrovaya completed a private placement of common shares and common share purchase warrants with existing institutional investors, new institutional investors and Company insiders for gross proceeds of approximately C$14.8 million. The proceeds were used to repay C$6.8 million of promissory notes, thus reducing monthly interest costs.
• Total debt as at December 31, 2022 was $9.7 million (C$13.2 million), compared to $16 million (C$21.7 million) as at September 30, 2022, Electrovaya's Fiscal 2022 ("FY 2022") year end. The Company is actively managing cash to reduce interest charges. On December 31, 2022, the Company had total cash on hand and availability in its revolving facility of $2.2 million. Management believes that this available liquidity, plus $7.5 million of accounts receivable and $5.8 million of inventory, will provide adequate working capital to support its operating activities and growth targets for FY 2023.

Business Highlights:

• On October 3, 2022, the Company announced that it selected New York State as the location for its first U.S. gigafactory ("the Gigafactory") for the planned production of cells and batteries. The Company is planning to set up operations at a 137,000 square foot plant on a 52-acre campus near Jamestown, NY. The Gigafactory will be located in a former electronics manufacturing facility. This U.S. site will be in addition to Electrovaya's two operating sites in Canada and it is expected to open in phases starting in 2023.
• Electrovaya is in late-stage discussions with two U.S.-based government-owned lending institutions to finance a significant portion of the first phase of the Gigafactory. The Company recently received a term sheet from one of the lenders, and negotiations are ongoing. Despite progress, there are no assurances that either institution will provide funding for the project.
• The Company recently co-bid, alongside a leading energy storage developer, on a large-scale energy storage project in the United States. While the results of this bid are uncertain, it represents Electrovaya's first recent foray into the growing energy storage market using its Infinity Battery Technology Platform.
• On February 9, 2023, the Company announced that it received a first battery purchase order through its OEM sales channel for a new Fortune 100 client. This Fortune 100 retailer has nearly 2000 retail outlets in the USA with many distribution centers. The Electrovaya batteries will be used to power Materials Handling Electric Vehicles ("MHEVs") for a distribution center application in the United States. Deliveries will be made in FY 2023. This represents Electrovaya's first order from this Fortune 100 retailer.
• The Company is developing customized battery systems for robotic, fuel cell hybrid and material handling vehicles for a variety of OEM customers.
• Electrovaya Labs continues to make progress on its research and development on Solid State batteries and to build its intellectual property portfolio.

Positive Financial Outlook:

The Company continues to anticipate revenue of approximately $42 million (C$56.8 million) for FY 2023, more than double the revenue total in FY 2022. The revenue is expected to be generated primarily from sales of battery systems for MHEVs.

The revenue forecast takes into consideration the Company's existing purchase order backlog, anticipated pipeline from existing customers, and additional demand from its OEM Strategic Supply Agreement, which includes an exclusivity provision pursuant to which the OEM must make annual purchases in the minimum amount of $15 million in order to maintain exclusivity. This annual period commenced on January 1, 2023. Given the sales initiatives underway with the OEM, management anticipates exceeding this minimum purchase level. This is reflected in the revenue forecast for FY 2023.

Impact of COVID-19 Pandemic:

The impacts of COVID-19 on supply chains continue to exist and could continue to impact the Company. To date, Electrovaya has been adept at combating shortages with long term planning and design changes, while responding to commodity cost increases with sales price adjustments.

1 Non-IFRS Measure: EBITDA does not have a standardized meaning under IFRS. Therefore it is unlikely to be comparable to similar measures presented by other issuers. Management believes that certain investors and analysts use EBITDA to measure the performance of the business.