Envirotech Vehicles extends Maddox Industries earnout period to June 2026

Envirotech Vehicles, Inc. (NASDAQ:EVTV), a company currently valued at $5.47 million and showing signs of being undervalued according to InvestingPro analysis, announced this week that it has amended its agreement with the seller of Maddox Industries, LLC to extend the earnout period related to its prior acquisition of Maddox Industries. The information is based on a statement in a recent SEC filing.

Under the original Membership Interest Purchase Agreement, which closed on December 18, 2024, Envirotech Vehicles agreed to pay the seller, Jason Maddox, up to $1 million in monthly earnout payments over a six-month period following the closing. These payments were tied to gross revenue received by Maddox Industries from certain receivables, with a cap of $1 million. The extension comes as the company faces financial challenges, with InvestingPro data showing a significant debt burden and weak financial health metrics.

On Monday, Envirotech and Jason Maddox agreed to amend the purchase agreement, extending the earnout period to June 17, 2026. The terms and conditions for earnout payments remain unchanged, aside from the new expiration date.

Jason Maddox has been involved with both companies and currently serves as a director of Envirotech Vehicles since August 2025, interim chief financial officer since January 2025, and president since October 2024. He is also the chief executive officer of Maddox Defense, Inc. and previously led Maddox Industries until the acquisition closed.

Maddox Industries manufactures medical gowns for Maddox Defense under an agreement dated September 9, 2024. Envirotech Vehicles also leases a facility in Houston, Texas from Maddox Defense for its medical supplies operations under a three-year sublease.

The details of the amendment and business relationships were disclosed in an SEC Form 8-K filing. Despite current challenges, analysts expect significant revenue growth of 47% for fiscal year 2025. For deeper insights into EVTV’s financial outlook and access to 15+ additional ProTips, visit InvestingPro.

In other recent news, Envirotech Vehicles, Inc. has announced the completion of the first American-made heavy-lift drone with a 1,500-pound capacity. This drone features dual-use technology for agricultural spraying and wildfire protection, capable of delivering up to 100 gallons of liquid per deployment and maintaining flight for up to 45 minutes under full load. Additionally, Envirotech Vehicles has appointed Jason Maddox to its board of directors, where he will serve as a Class II director until the company’s 2025 annual meeting of stockholders. Maddox is currently the Interim Chief Financial Officer and President of the company. Furthermore, Envirotech Vehicles has announced a 1-for-10 reverse stock split of its common stock, which will be effective on August 6, 2025. The company’s shares are expected to trade on a split-adjusted basis on the Nasdaq Capital Market starting August 8, 2025. These developments highlight Envirotech Vehicles’ ongoing efforts to innovate and restructure its corporate governance.

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