UQM Technologies is a developer and manufacturer of power-dense, high-efficiency electric motors, generators, power electronic controllers and fuel cell compressors for the commercial truck, bus, automotive, marine and industrial markets. A major emphasis for UQM is developing propulsion systems for electric, hybrid electric, plug-in hybrid electric and fuel cell electric vehicles. UQM is IATF 16949 and ISO 14001 certified and located in Longmont, Colorado. For more information, please visit www.uqm.com.
The Merger is subject to several future conditions, including conditions that may not be within the power of UQM to complete and may not be completed on a timely basis, if at all.
Failure to complete the Merger in a timely manner, or at all, could negatively impact our future business and our financial condition and liquidity.
The Proposed Merger may disrupt our business and operations.
The Merger Agreement generally precludes us from pursuing alternatives to the Merger unless it is a “superior proposal”.
We have incurred significant losses and may continue to do so.
Our operating losses, anticipated capital expenditures and working capital requirements in the longer term may exceed our current cash balances.
Our business depends, in part, on the expansion of the market for all-electric and hybrid electric vehicles.
If our products do not achieve market acceptance, our business may not grow.
Our sales cycle is inherently long.
A reduction or elimination of government subsidies and economic incentives for alternative energy technologies, including our electric vehicle motor technology, could reduce demand for our products and services, lead to a reduction in our revenues and adversely impact our operating results.
We are subject to risks inherent in international operations.
Changes in U.S. trade relations may have a negative effect on our business.
Our revenue is highly concentrated among a small number of customers.
Our business relies on third parties, whose success we cannot predict.
Our electric propulsion systems use rare-earth minerals and unavailability or limited supply of these minerals could prevent us from manufacturing our products in production quantities or increase our costs.
Some of our contracts can be cancelled with little or no notice and could restrict our ability to commercialize our technology.
We face intense competition and may be unable to compete successfully.
Changes in environmental policies could hurt the market for our products.
If we are unable to protect our patents and other proprietary technology, we will be unable to prevent third parties from using our technology, which would impair our competitiveness and ability to commercialize our products. In addition, the cost of enforcing our proprietary rights may be expensive and result in increased losses.
We rely, in part, on contractual provisions to protect our trade secrets and proprietary knowledge, the adequacy of which may not be sufficient.
Use of our motors in vehicles could subject us to product liability claims or product recalls, and product liability insurance claims could cause an increase in our insurance rates or could exceed our insurance limits, which could impair our financial condition, results of operations and liquidity.
We may be subject to warranty claims, and our provision for warranty costs may not be sufficient.
Our future success will depend on our ability to attract and retain qualified management and technical personnel.
The maintenance and security of our information systems are critical to our operations.
Our stock price has been and could remain volatile.
Product sales revenue for the quarter ended March 31, 2019 increased to $2,991,409 versus $1,405,364 for the comparable period last year, reflecting increased shipments in all product lines.
Revenue from contract services was $692,327 for the quarter ended March 31, 2019 versus $206,210 for the comparable period last year. The increase is due to higher externally funded development contracts.
Total gross profit margin for the quarter ended March 31, 2019 increased to 19.6 percent compared to 19.0 percent for the comparable period in the prior year. Gross profit margin on product sales for the quarter ended March 31, 2019 decreased to 13.3 percent compared to 16.3 percent for the same period last year, primarily due to higher sales of lower margin products and increased production headcount. Gross profit margin on contract services was 46.6 percent for the quarter ended March 31, 2019 compared to 37.6 percent for the same period last year, due to more favorable pricing terms.