We design and cause to be designed advanced zero-emission electric and hybrid drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles. We also design and cause to be designed re-power conversion kits to replace conventional drivetrain systems for combustion powered vehicles with zero-emission electric or hybrid drivetrain systems. We expect to expand our product offerings to include the sale of zero-emission systems in vehicles manufactured by outside, original equipment manufacture (“OEM”) partners located in China, Malaysia and the Philippines, that can be marketed, sold, warrantied and serviced through our developing distribution and service network. Our drivetrain systems can include options for telemetrics for remote monitoring, electric power-export and various levels of grid-connectivity. Our zero-emission systems 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.
Sales were $420,320 and $463,731 for the three months ended March 31, 2019 and 2018, respectively. Sales for the three months ended March 31, 2019 consisted of products and services sold to Blue Bird Corporation, and work performed under a DOE grant awarded to Blue Bird Corporation for which we were selected to provide products and services. Effective as of May 31, 2019, we agreed to terminate our supply agreement with Blue Bird Corporation, as further described under the heading “Subsequent Events” above.
Cost of sales were $390,845 and $478,731 for the three months ended March 31, 2019 and 2018, respectively. Cost of sales for the three months ended March 31, 2019 consisted of costs related to products and services sold to Blue Bird Corporation, and work performed under the DOE grant discussed in “Sales” above.
General and administrative expenses were $1.4 million and $3.9 million for the three months ended March 31, 2019 and 2018, respectively. The decrease is primarily due to decreases of $2.7 million in non-cash stock-based compensation expense and in other general and administrative expenses, offset by increases of $121,974 in legal and professional fees, and $64,780 in insurance expense. The decrease in stock-based compensation expense primarily relates to an expense reduction resulting from the forfeiture of options to purchase an aggregate of 3,450,000 shares of common stock previously issued to certain employees and directors in March 2017.