Te total number of moving parts in the drivetrain of an electric school bus is dramatically reduced. Less moving parts generally means fewer things to go wrong. —Jim Reynolds, ADOMANI, Inc.
options this gives us is attracting and retaining top industry talent, building a brand name and making strategic acquisitions. STN: Why and how did the company crowdfund in preparation for the IPO? Reynolds: ADOMANI, probably much like other technology focused companies, started with a core group of founders, most of which were also investors. Ten, as technological progress and milestones were achieved and patent filings were made (and issued), this core group reached out to their own networks and, following legal guidelines, additional early funds were raised from both accredited and unaccredited investors. I think the technology, the team and the ADOMANI product line goals resonated with a lot of people and many wanted to be part of something that would bring positive change to the environments where they live and work. Te crowdfunding portion of the story came in with the help of our underwriter Boustead Securities and, thankfully, the JOBs act gave us a roadmap to follow. Te ADOMANI transac- tion is the first Regulation A offering to be listed on NASDAQ. Te amended “Regulation A+” provisions, part of the Jumpstart Our Business Startups (JOBS) Securities Act. We’re very proud to be the first company to successfully use this route and are eternally grateful to our investors that have believed in us and our abilities to execute on our current and future product development plans.
STN: Te industry is now collectively saying electric school buses need another decade to truly mature to the point of making fiscal sense to school districts nationwide, not just in California. Do you agree? Why or why not? Reynolds: Certainly, you need to have a total-life-cycle cost perspective when considering any technology. It is true that it will take some time for electric school buses to mature into the point of making total financial sense and showing an ROI that helps sell the bus. Battery prices, the largest single cost of an electric bus, are dropping every three to six months. Tis and improved battery chemistry will allow prices between diesel and electric to reach parity. When including cost savings on maintenance and fueling, (this will happen) sooner than most people think. However, that’s not the entire picture. When you think about electric vehicles, especially school buses, an important factor that is sometimes overlooked is the health benefit of the children riding these buses compared to most of the current buses running on diesel. Diesel buses are one of the major emitters of GHG within the sector. Every zero-emission bus
is able to eliminate 1,690 tons of CO2 over its 12-year lifespan. Tis is equivalent to taking 27 cars off the road. Tese buses also eliminate 10 tons of nitrogen oxides and 350 pounds of diesel particulate matter, improving air quality in the communities that they serve and the children that ride these buses to school every day. So, when we talk about the maturity and financial sense of electric buses we must consider the cost associated with the health link between exposure to diesel exhaust and asthma. Last year, the National Resources Defense Council conducted a study to measure the level of diesel exhaust to which children are typically exposed as they ride on buses to and from school. Te study showed that a child riding inside a diesel school bus may be exposed to as much as four times the level of diesel exhaust as someone riding in a car ahead of it. Exposure levels were higher in the back of the bus and when windows were closed. Te study indicated that exposure of children to diesel exhaust while riding in a school bus for one to two hours a day, 180 days a year for 10 years might result in 23 to 46 additional cancer deaths per 1 million children.
STN: Can we also talk about parts procurement for electric buses? Obviously, no need for fuel filters and the like thereof, but what should school bus fleet managers think about or ask regard- ing sourcing their parts should they go electric? Reynolds: Te answers are going to depend on the electric bus brand, but parts should be sourced directly from the electric school bus manufacturer or dealer to satisfy warranty requirements. Many parts and components will be immediately recognizable to experienced school bus maintenance technicians, but some systems will be new and there will be a learning curve to build familiarity and routines. We intend to be a part of the training process to make sure early adopters have the very best experience with the ADOMANI systems as possible. Parts related specifically to the electric drivetrain that need to be stocked by school maintenance directors should be minimal. Te total number of “moving parts” in the drivetrain of an electric school bus is dramatically reduced. Less moving parts generally means fewer things to go wrong. If I was a transportation director, I’d want to make sure a replacement windshield was readily available especially in the case of any “total- ly new design” school bus. We’ve found that rocks don’t favor any particular fuel type.
