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March 20, 2024 EDISON MOTORS
Dear Shareholder:
I am writing to share the details of important and exciting news about Edison Motors (the “Company”, “we”, or “our”) and to provide an update on the results of discussions with the British Columbia Securities Commission (“BCSC”).
We have made considerable progress over the last several months. We recently received a Vehicle Identification Number for our prototype L500 hybrid truck, Topsy. Topsy has also passed the Commercial Vehicle Safety and Enforcement's inspection standard. This allows the Company to begin testing on public roads and highways, which is an exciting step toward eventually seeing fleets of our hybrid trucks on the roads.
The Company has also achieved promising business milestones. We have secured deals for the sale of four pickup truck conversions, two L500 trucks and one semi-truck retrofit. We have also recently been exploring the possibility of purchasing a large modern commercial space. We look forward to making the transition to a facility that will accommodate our rapidly-growing needs, and to providing further details about this project at the appropriate time.
The Company continues to seek to secure additional private financing and is in advanced discussions with an Edison Motors shareholder to provide such financing. We look forward to updating you soon on these efforts.
We also wish to share an update with respect to an inquiry conducted in 2023 by the BCSC, which has since been resolved. We were made aware by the BCSC that, by issuing securities through Westinghouse Financial Ltd, a crowdfunding website that we created, we did not comply with National Instrument 45-110 Start-up Crowdfunding Registration and Prospectus Exemptions. As lifelong truckers and engineers unfamiliar with the world of finance regulations at the time we raised funds for the Company, we were hyperfocused on engineering the best possible hybrid truck. In so doing we did not comply with the strict requirements for raising capital – namely, to use an appropriate crowdfunding platform in order to be exempt from issuing a prospectus. We have engaged legal counsel to address these concerns and to offer continuing advice as our business and legal needs evolve.
Fortunately, we were able to arrive at an informal resolution with the BCSC, pursuant to which we have made a number of commitments that will bolster our operations and governance, and enhance transparency. As part of that commitment, we have engaged a professional accounting firm to audit our financial statements, which will be made available to all shareholders in the near future.
Until our audited financial statements are delivered, we have committed to providing shareholders with up to-date information regarding the use of proceeds from financing for management-related fees every three months.
Specifically, our Chief Executive Officer, Chace Barber received an annual salary of $31,144.85 in 2022 and $29,999.99 in 2023. Our Chief Technology Officer, Eric Little received an annual salary of $16,250.00 in 2022 and $65,000.00 in 2023. As of 2024, Mr. Barber and Mr. Little each make an annual salary of $70,000.00. We also currently pay Mr. Barber's mother, Wendy Barber, $5,600.00 per month to rent a shop, land and office space. We understand and believe that both the salaries and monthly rent are in amounts that are below-market.
Finally, we wish to thank all of you for the support you have given us. We are proud of what we have built together over the last few years, and excited to continue the journey toward making us the market leader in clean trucking technology and providing value for our shareholders.
Sincerely,
Chace Barber, CEO