Successful completion of this process would enable timely vehicle deliveries and could generate further applications for potential new purchase orders. On the truck side, while this market is still at a very early stage with electrification just commencing, we remain very enthusiastic about our prospects in the Class 5 to 8 market. Leveraging our purpose-built truck platform, Lion stands out as one of the few players of critical mass of vehicle on road and we expect the upcoming deployments of Lion5 units to generate significant customer interest. Like in the school bus sector, we are closely monitoring billions in existing and upcoming subsidy programs aimed at accelerating fleet electrification. To conclude, we continue to experience strong customer engagement on fleet electrification underpinned by solid desire to transition to EVs as well as emerging regulation and attractive subsidy programs, and we believe Lion is very well positioned to address this upcoming demand.
On that note, Richard will now discuss our financial performance. Richard?
Richard Coulombe: Thank you, Nicolas. I will start by commenting on Q3 results, including an update on CapEx. I will then discuss our liquidity position. In Q3, we delivered 245 vehicles resulting in record revenue of $80 million. This represents revenue growth of almost 100% compared to the same period last year and close to 40% versus Q2, 2023. This increase in sales volume coupled with favorable product mix and average selling prices as well as continued cost discipline led to gross margins of 6.7% compared to negative 9.3% in the previous year. For the quarter, SG&A before noncash share-based compensation was $17 million. As a percentage of revenue, SG&A before noncash share-based compensation decreased from 36% to 21% over the last year due to disciplined cost containment efforts.
This is a trend we are looking at maintaining as we continue to focus on reaching our profitability and positive free cash flow objectives. Adjusted EBITDA improved to negative $3.9 million from negative $15.1 million in Q3 2022. Additions to net intangible assets mostly related to R&D amounted to $15 million, a decrease of $3 million when compared to $18 million in Q3 2022. Capital expenditures amounted to $16 million, including $4 million for Joliet and $8 million for the Lion Campus, a significant decrease as compared to 29 million last year. We anticipate combined CapEx spend of approximately $12 million in Q4 for the Joliet plant and the Lion Campus, leading us to the conclusion of our main initial investment on these projects. We therefore continue to expect minimal capital expenditures in the foreseeable future mostly maintenance CapEx as our growth projects have reached their targeted capacity level.
Now turning to liquidity and capital resources, in Q3, we successfully closed financing resulting in $142 million of growth proceeds or $136 million net which provides us with additional flexibility to continue to execute our plan. As of September 30th, 2023 our immediate liquidity stood at $132 million consisting of $36 million in cash and $96 million in immediate borrowing capacity on our revolver. At the end of the quarter, our debt balance stood at $176 million. Finally, as we move forward with our 2024 budgetary process, we continue to focus on decreasing product costs, optimizing working capital management and improving our internal cost structure. Back to you Marc.
Marc Bedard: Thank you, Richard. Before we open the lines for questions let me conclude by saying that we are pleased with our Q3 performance and thrilled about the opportunities unfolding in the EV market and our positioning. Our commitment is to achieve profitability and positive free cash flow and we are confident that we have the right elements in place, the right focus and the right strategy to achieve our objectives. Thank you for your attention this morning. Let’s now open the lines for questions.
Isabelle Adjahi: Operator, we will now open the lines for questions. I just want to ask you to limit to two the number of questions asked to allow other participants to ask their questions. You can of course go back in the queue if you have any follow-up questions.
Operator: [Operator Instructions]
Marc Bedard: I think we have a question from George. George, please go ahead.
George Gianarikas: Hey, good morning, everyone, and thank you for taking my question. And congratulations on a great quarter. I wanted to ask about the sustainability of your, the gross margin momentum that you showed. Now, how should we think about the next couple of few quarters in terms of modeling the gross margin going forward? Thank you.
