Nuvve Holding Corp. Price & Performance (NVVE)

This quarter has been a good transition quarter. Though our top line revenue for the quarter is not yet where we want, we are in a much better position than Q1 twenty twenty four. We have received 28 orders for new charging stations versus only one a year ago. Our backlog is growing, but our revenue recognition slowed as we transition to a drop ship model with our new partner TELUS Power Grain that we announced in January. The quarter and the first half of Q2 have been reached in action. In February, Nuvve was awarded a critical contract with the State of Mexico. This framework agreement allows us to provide proposal to any governmental EV deployment either with school districts, municipalities, or state organizations, without going through an RFP process. It's infrastructure deployments, including charging stations, solar, storage, and microgrid implementation, will be financed for the state of New Mexico by our partner Jeffries. This project represents a potential opportunity greater than $400,000,000 of CapEx deployment over the next four years. In order to successfully support this opportunity, we have established a special company in the state of New Mexico named Nuvve New Mexico. The purpose of this LLC is to develop close ties with key stakeholders in the state.

Ted Smith, our former Chief Operating Officer has been named CEO of Nuvve New Mexico. He's our champion and will bring any component for from Nuvve in order to successfully support the state. We have also decided to open some of the capital of Nuvve, New Mexico to local investors in order to align interest. I'm looking forward to sharing more of our progress in the State of New Mexico soon. Moving on to Japan, after many years of managing bad batteries for tubular electric, collaboration with Toyota Tusho, we have decided to move on and create a new entity that will drive the energy storage business in Japan on its own. Nuvve Japan is now established and we have brought on board Masai Gashida to lead our operations in Japan. This new company is initially focused on stationary storage deployment monetization, With new deregulation in 2026, supporting the aggregation of distributed storage in order to participate across a variety of energy markets.

We are very bullish on the Japanese market we are convinced that we are doing this transition at the right time. In order to support and accelerate the deployment of Nuvve Japan, we have also made the decision to appoint a minority of the capital to local investors. This process is well underway we'll share more information as it becomes available. Later in the quarter, we also announced our Bachelor of the Service model for EdxStreet Cooperative, and we welcomed Michael Smucker as our energy storage sales leader. We believe that the problem of grid modernization needs to be resolved between substation and the end customers. At the end of the quarter, we made two important announcements. First, in late April, announced the acquisition of the assets of Fermata Energy. Into Fermata two point zero with 100% of the common shares owned by Nuvve. We made this decision based on a few key elements. First, we felt [indiscernible] been focusing, sorry, on behind the meter value extraction. The FEMATA platform tool stack was very advanced. Also. Second, Femada has developed solid relationship with vehicle manufacturers an area where Nuvve has been less focused. We have been able to execute this acquisition without any cash coming from the Nuvve Holding balance sheet, while acquiring a mature pipeline allowing for expanded long term opportunities.

We're very excited about the future of PHERMALA under the Nuvve umbrella, where provides us the opportunity to consolidate software development resources. Finally, in late April, Nuvve also announced the creation of a new subsidiary in order to address another Distributed Asset Management business. Digital Assets.

This effort led by James Alterscher, and supported by Tim Collins and me, is focusing on building a diversified portfolio of cryptocurrency. The Digital Asset Management Committee is going to oversee the portfolio distribution by targeting multiple picks and shovel tokens from high growth sectors such as decentralized finance, DeFi, decentralized physical infrastructure, deepening, programming and tokenization of real world assets. In summary, this color carries the fruit of many colors of hard work to transform Nuvve, reducing our cash burn at the holding level focusing the organization on profitability. This transformation is well underway and we are very excited about the future. And now, I will let David take you through the details of our financials.

Thanks, Gregory. I will start with a recap of first quarter twenty twenty five results. In the first quarter, we generated total revenues of 900,000.0 compared to $800,000 in the first quarter of twenty twenty four.

The growth was primarily driven by increased charger hardware sales, versus the same period last year. Margins on products, services, and grant revenues were 399% for the first quarter of twenty twenty five compared to 34.7% for the year ago period. The increase is primarily due to a higher mix of service revenues this quarter compared with last year. Excluding grant revenues, margins on product and service revenues were 32.6% for the February. Compared to 26.8% in the current year ago period. As a reminder, margins can be lumpy from quarter to quarter, depending on the mix. DC charger gross margins at standard pricing generally range from 15% to 25%. While AC charger gross margins are approximately 50% But in dollar terms, our small fraction of the revenue of the DC charger. Grid service revenue margins are generally 30%. While software and engineering service margins are as high as a %. Operating costs excluding cost of sales was 6,000,000 for the first quarter of twenty twenty five. Compared to 5,900,000.0 for the February and 7,500,000.0 for the February. We have continued to drive efficiencies in 2025. Resulting in lower overhead costs, We expect the lower operating costs we have realized this quarter compared to the prior year first quarter to continue in future quarters.

Cash operating expenses, excluding cost of sales, stock compensation and depreciation and amortization expense was 5,300,000.0 in the first quarter of twenty twenty five versus 5,200,000.0 in the February versus 6,600,000.0 in the February. This represents a decline of 1,300,000.0 in expenses over the same quarter last year. Other expense was 1,300,000.0 in the February. Compared to 500,000.0 of other income in the February. The prior year period benefited from noncash gains from the change in the fair value of awards. While the current period had non cash losses from the change in the fair value of convertible debt and warrants in addition to interest expense from borrowings. Net loss attributable to Nuvve common stockholders decreased in the February to 6,900,000.0 from a net loss of 7,000,000 in February. The improvement was primarily a result of lower operating expenses, offset by higher non operating expenses. Now turning to our balance sheet, we had 1,200,000.0 in cash as of 03/31/2025, excluding 300,000.0 in restricted cash which represents an increase of 800,000.0 from December 2024. The increase was a result of capital raised for the issuance of common stock and the exercise of warrants totaling 1,400,000.0 and an increase in net borrowings of 1,200,000.0.

Primarily offset by 1,800,000.0 used in operating activities. During the quarter, inventory decreased by 500,000.0 to 4,100,000.0 at 03/31/2025, as we continue to improve our inventory turnover. During the quarter, accounts receivable decreased by 700,000.0 to 1,500,000.0 at 03/31/2025, due to improved collections of our customer balances. Accounts payable at the end of the February was 2,200,000.0 an increase of 300,000.0 compared to the fourth quarter of twenty twenty four of 1,900,000.0. Accrued expenses at the end of the first quarter of twenty twenty five was 4,800,000.0 an increase of 1,400,000.0 compared to the fourth quarter of twenty twenty four of 3,400,000.0.

Now turning to our megawatts under management and estimated future grid service revenues. As a reminder, megawatts under management is a metric we use to quantify the aggregate amount electrical capacity from the deployment of our V one g and V two gs charge which are primarily deployed in the electric school bus market in The United States and in light duty fleet deployments in Europe. In addition to stationary batteries, Currently, these chargers and batteries are located throughout The United States, Europe, and Japan. Megawatts under management in the first quarter increased 3.6% over the fourth quarter of twenty twenty four. To 31.8 megawatts from 30.7 megawatts. And a 19.5% increase compared to the first quarter of twenty twenty four. In terms of its composition, 7.1 megawatts were from stationary batteries and 24.7 megawatts were from EV chargers. We continue to expect further growth in our megawatts under management in 2025 as we continue to commission our backlog of customer orders we have earned, in addition to new business we anticipate winning which we have visibility to in our pipeline for both chargers and stationary batteries. Now turning to backlog. On March 31, our hardware and service backlog increased to 19,700,000.0 an increase of 1,400,000.0 from 18,300,000.0 reported at 12/31/2024.

This increase is related to contracts with customers that are expected to convert in sales in 02/2025. As we look out to the next several quarters, we expect to see more developments on our New Mexico contract and the Fresno project. We also anticipate improvements in our cash burn resulting from the benefits of lower operating costs compared with last year. That concludes my portion of the prepared remarks. Gregory, back to you to conclude. Thank you, David.

In summary, though our top line revenue is still work in progress, we have executed on some fundamental transformation aspects. We are reducing our cash burn while focusing the organization on profitability, and we have started to execute on our M and A plan. This quarter is a key stepping stone in our transformation.

Thank you.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then 2. At this time, we will pause momentarily to assemble our roster. This concludes our question and answer session. I would like to turn the conference back over to Gregory Polazny for any closing remarks.

I want to again emphasize our expectation in terms of the transformation that we are going through and the opportunities that we are facing, and we are looking forward to sharing more with you over the next few months. Thank you very much. [indiscernible] has now concluded. Thank you for attending today's presentation. May now disconnect.