Greetings, and welcome to Electrovaya's Fiscal Year 2019 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Richard Halka, Executive Vice-President and Chief Financial Officer for Electrovaya. Thank you, you may begin.

Thank you, Melissa. Good morning, everyone, and thank you for joining us on today's conference call to discuss Electrovaya's fiscal 2019 financial results. Today's call is being hosted by Dr. Sankar Das Gupta, CEO of Electrovaya, and myself, Richard Halka, Executive Vice President and CFO. On December 23rd, Electrovaya issued a press release concerning its business highlights and financial results for the three and 12-month periods ending September 30, 2019. If you would like a copy of the release, you can access it on our website. If you want to review our financial statements, management discussion and analysis, you can access those documents on the SEDAR website at www.sedar.com. As with previous calls, our comments today are subject to normal provisions related to forward-looking information. We will provide information relating to our current views regarding trends in our markets, including their size and potential for growth and our competitive position in our target markets. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied in such statements. Additional information about factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the company's press release announcing the fiscal 2019 results and the most recent annual information form and management's discussion and analysis under risk and uncertainties, as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Also, please note that all numbers discussed on this call are in U.S. dollars unless otherwise stated. And now, I'd like to turn the call over to Sankar. Sankar?

Thank you, Richard. And good morning everyone. We are pleased that you joined us this morning, and I hope you all had a wonderful holiday season. Electrovaya’s business had strong momentum during fiscal 2019. Our order volume expanded over the course of the year as we experienced rising demand from both new and existing customers. Most significantly, we received repeat orders from Walmart Canada worth C$7.3 million. Walmart is replacing all the forklift factories at two of its distribution centers with Electrovaya’s lithium ion batteries. These will be the second and third Walmart distribution centers to be fully powered by Electrovaya’s batteries. We have also been working on a fourth distribution center of this. We ended the fiscal year with the order backlog of more than US$9 million with about C$12 million Canadian and that number has subsequently increased. On December 30th, we announced additional forklift battery orders worth approximately $4 million, which is slightly more than C$5 million from a large U.S. Company from for their distribution site in the U.S. This purchase order came from our OEM distribution channel and brings our total backlog to about $13 million or over C$17 million. We are now well positioned for near-term growth in revenue and profitability. Deliveries to Walmart Canada specifically should be completed by the end of the fiscal second quarter ending 30th March 2020. We expect positive EBITDA for that quarter, ofcourse barring unforeseen circumstances. For the first half of fiscal 2019 -- for the first half of fiscal 2020, we are anticipating revenue of approximately $6 million, which is nearly C$8 million compared to $3.2 million or C$4.3 million in the same period last year. As we noted few days ago on 30th December, we expect to complete deliveries on approximately $10.8 million or over C$14 million…

Thank you, Sankar. Revenue from continued operations for the 12 months ended September 30th 2019 was $4.9 million compared to $5.6 million in fiscal 2018. The decline was primarily due to higher revenue in Q2, 2018 as compared to Q2, 2019 as a major order was completed for a Canadian customer. Gross profit for the fiscal 2019 increased to $1.9 million or 40% of revenue, from $1.8 million or 31% of revenue last year. This increase reflects a significant reduction in direct manufacturing costs as we continue to improve our supply chain efficiency. Net loss from continued operations was $2.8 million in fiscal 2019 compared to a net loss of $10.2 million in the prior year. The reduced net loss is primarily attributable to lower operating expenses and a onetime gain of C$4.2 million on from our sorry U.S$4.2 million from the sale of our former head office building in Mississauga, Ontario. Our total operating expenses as Sankar pointed out were $8.9 million in fiscal 2019 compared to $11.6 million in fiscal 2018. As Sankar noted, we have provided some financial guidance for fiscal 2020 that reflects our strong order volume. We are anticipating revenue of approximately $6 million in the first half of fiscal year as we complete deliveries on recent orders. We expect to generate positive EBITDA in the second quarter and we plan to complete deliveries on orders amounting to $10.8 million in the first nine months of the fiscal year. So overall we anticipate significantly stronger financial performance in fiscal 2020 compared to fiscal 2019. Turning to our balance sheet. We had 0.3 million of cash and equivalents at September 30, 2019 compared to 0.1 as at September 30, 2019. We used a total of $2.9 million of cash in operating activities during 2019 compared to $7 million in 2018. We continue to manage our working capital carefully. Subsequent to fiscal 2019, we announced the closing of a secured 5.5 million credit facility agreement with the Canadian financial institutions, which increased our overall credit facility limit to C$7 million. This facility supports the fulfillment of our recently announced purchased orders. Inventory was $1 million as at September 30, 2019 compared to $1.8 as at September 30, 2018. The decreased inventory is due to continued fulfillment of purchase orders. Overall, we continue to expand sales, carefully manage our costs. We're also establishing the relationships needed to access essential financial resources to grow our business. I'd like now to turn the call back to Sankar to wrap up.

Thank you, Richard. We are more convinced than ever that we have the right products for the right market and at the right time. The Material Handling electric vehicle market continues to grow at a very rapid pace and convert to lithium ion batteries. According to the recent statistics we have seen, that U.S. alone is purchasing at least 150,000 new electric forklifts a year in addition to approximately 1.5 million electric forklifts currently in operation. The opportunities to install our lithium ion batteries in New forklift builds and as replacement batteries in existing vehicles is enormous and growing every day. The North American market is about 25% of the global market and we only need to capture a small portion of this demand to drive very strong revenue growth at Electrovaya. Over the last few years, we have been carefully positioning ourselves to build market share in the materials handling electric vehicle market primarily in electric forklifts. We have developed more than 25 different lithium ion ceramic factory models to date for this market, and are currently marketing 24 volts, 36 volt, 48 volts, and 80 volt batteries. New and existing customers have tested them extensively and they are understanding that our products offer superior cycle life and safety along with excellent energy, power and fast charging capabilities. We are at the cusp of the energy transformation in the electric materials handling vehicle market. Every 1000 lithium ion powered electric forklifts as it replaces those powered by diesel eliminates 8 million tons of carbon dioxide gases as well as 4 million tons of carbon monoxide. Also because these electric vehicles operate 10 times more intensely than electric cars, we eliminate 10 times more greenhouse gases per vehicle. Over lead acid or hydrogen powered forklifts that increase value Electrovaya gives…

Thank you. [Operator Instructions] Our first question comes from the line of Ashok Kumar with ThinkEquity. Please proceed with your question.

Hi. Good morning. Thank you Melissa and congratulations Sankar and Richard. Just following up on your comprehensive comments. Sankar, could you just flesh out as necessary, on the recent macro trends you'd indicated in terms of the lithium ion battery pack adoption among your primary markets; one is the MHEV and AGV and adjacent opportunity. And then three companies questions, one is on operational, as you said, you've made significant improvements in operational efficient and in combination with the topline recovery has accelerated your time line of profitability. So if you just flesh out any additional points there? And in terms of battery cell technology, I think you'd highlighted the roadmap on the E44 cell as it applies to cycle time safety and cell density with the sustainable competitive advantages. And then the last question is in terms of your channel given the outside footprint relative to your business cycle maturity in terms of penetrating, one, the OEM channel and two, the distribution channel, like, how it positions you in terms of going faster than end market? Thank you very much.

Yes. Thanks Ashok. They are really good questions. So the first question is why is Electrovaya doing well in penetrating this forklift market and with its lithium ion batteries. And really the answer is in two words. We are the forklifts battery -- the forklifts typically an intensive user is driving something like 200,000 to 300,000 kilometers equivalent every year. So that's like 2 to 3 million kilometers driving over an eight, 10-year period. And there was very difficulty for lithium ion batteries to meet that requirement. In addition, it had to meet all kinds of weight and energy density and power requirement. So when we came into the market, it was essentially and still is essentially lead acid batteries and also some hydrogen-fuel cells running there and people were not sure that the lithium ion batteries could make it in this field. And after I would say, testing over a year or two, people are getting very, very confident that it’s working so well. And we are working with really the Fortune 100 companies, Fortune 500 companies who are very sophisticated, who understands the whole global market, test everything on site and we're really pleased that they are driving our technology. So now, we have about 28 locations, which our batteries are powering. Some of these locations are complete distribution centers like Walmart which has moved to Electrovaya. Some are what I would call in a replacement basis. They are replacing their lead acid batteries with the Electrovaya lithium ion battery. So that's a really the driver. And we now have so intensive usage in pretty much all sectors that I can think of; warehousing, logistics, ecommerce, multishift to manufacturing, cold warehouses that we are not finding any place where the battery is not being usable. The second point, Ashok, was the operating efficiency. We have been trimming our operating costs lot. You can see that our overhead cost is coming down. We have kept our research team and we are actually adding to it. But we have reduced our other costs and our move -- our manufacturing move also is making a much more efficient in this new location than we were in our old location. So operating efficiency is going up.

Ashok, there's probably just one thing I would add to that as well. When you have the leverage of the significant PO with suppliers, we're able to negotiate some fairly good terms and prices in terms of the volume and what we're looking at in terms of volume orders coming up. So, we see this momentum continuing into the future. As our volume increases we would expect our cost structure to probably reduce a little bit or on the other hand if we have to make any concessions on pricing that its offset by efficiencies in the costs. Sorry, Sankar.

Ashok, your third area where we're looking at is the battery technology roadmap and what we have done is made of a significant breakthrough in the cycle life of a battery and that has been done through the inside chemistry of the cell. And so we are getting the cycle life which these forklift batteries need and which we believe all intensive battery users will need. This will be electric buses, electric truck, electric taxis and electric energy storage for both wind and solar which are looking for 15-year plus employments. So that is working well. We are working both internally and externally with a number of people and that's always been our style that we should be at the forefront, because we believe that technology is /still growing and we can keep on increasing energy density and power. The big driver also is safety. We have -- giving industry-leading safety in our batteries. And as people started increasing the energy density the safety of a battery becomes a big, big concern. So here again, we are very pleased that the major Fortune 500 companies who been testing our batteries for so long feels comfortable to move from their utilization into the Electrovaya battery. And the last point was a channel of sales. And we are -- both the channels are working very well. We have our own sales team, which is going into the replacement channels and the replacement channels we went after largest company in that business. And we're really very glad that they are moving from warehouse to warehouse and we are probably got the largest lithium ion batteries fleet in one location in North America now. And we are really pleased on our other channel partner which is the OEM partners and Raymond has the largest brand and largest market share in this business and we are really pleased that they have started driving our sales through their distribution network.

Sankar and Richard congratulations on your operational milestones, and all the best.

Thank you, Ashok.

Thanks, Ashok.

Thank you. Ladies and gentlemen, this concludes our question and answer session. I'll turn the floor back to Dr. Das Gupta for any final comment.

Well, thank you all for listening this morning. We look forward to speaking with you again later this winter or early spring after we report our fiscal first quarter results. And wishing all a very happy New Year. Thanks.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.