Company Overview - ECD Auto Design (NASDAQ: ECDA) is a leading creator of restored Land Rovers and custom classic vehicles, known for its bespoke luxury offerings [14] - The company was founded in 2013 by three British automotive enthusiasts and operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 105 skilled craftsmen [14] - ECD specializes in restoring various classic vehicles, including Land Rover Series, Range Rover Classic, and Ford Mustang, with each vehicle taking approximately 2,200 hours to build [14] Product Launch - ECD has introduced Project Beach Patrol, a unique Defender 90 soft top designed for warm weather and coastal adventures, handcrafted in the U.S.A [2][12] - The vehicle features a vibrant Land Rover AA Yellow gloss finish and is built entirely at ECD's Florida facility [3][10] Design and Features - Project Beach Patrol boasts a head-turning exterior with a matte black roll cage, Narvik Black accents, and 18" Satin Black Kahn wheels, making it suitable for both sand and street [4][10] - The interior combines luxury and utility with Corbeau Trailcat seats in black leather, a MOMO Prototipo steering wheel, and modern technology such as a Pioneer audio system with Bluetooth and CarPlay [8][12] Performance Specifications - The vehicle is powered by a GM LS3 6.2L V8 engine, producing over 430 horsepower, paired with a 6-speed automatic transmission [6][11] - It features high-performance Alcon brakes, heavy-duty axles, and an upgraded road suspension for enhanced driving confidence [6][11] Market Positioning - Project Beach Patrol is positioned as a symbol of coastal escape and weekend freedom, appealing to consumers seeking a unique and luxurious driving experience [12] - ECD emphasizes the personal and bespoke nature of its vehicles, catering to clients looking for one-of-a-kind automotive solutions [14]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and higher customization [24][25] - The average selling price per vehicle increased by $25,000, contributing to the overall revenue growth [30] Market Data and Key Metrics Changes - The company has begun to establish a retail presence, with the first retail location opened in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Currently, retail locations contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail strategy to enhance customer engagement and reduce marketing costs associated with mobile outreach [17][19] - ECD Auto Design is focusing on building a luxury brand akin to LVMH in the classic car space, leveraging licensing agreements to consolidate the custom defender market [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching a crossover point for cash flow positive operations at approximately 10 units sold per month, with current sales at about 8.5 units [39] - The company is actively monitoring tariffs and has implemented internal controls to mitigate potential impacts on pricing and margins [50][51] Other Important Information - The company has undergone a re-audit of its financials due to the shutdown of its prior auditor, which has delayed filings but is now up to date [7][12] - The company has a cash balance of $1.5 million as of December 31, 2024, down from $8.1 million the previous year, with plans to maintain production and sales at current cash levels [32][33] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - The analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive cash flow [38] Response: Cash flow crossover point - Management indicated that the crossover point for cash flow positive operations is around 10 units per month, with expectations to reach this soon due to backlog and retail site launches [39][40] Question: Split between web-based sales and retail locations - The analyst asked about the sales mix between digital channels and retail locations [44] Response: Current sales mix - Management noted that currently, 80% of sales come from digital channels and 20% from retail, indicating a significant shift in marketing strategy [48] Question: Mitigation of tariff impacts - The analyst requested insights on how the company plans to mitigate tariff impacts [49] Response: Internal controls and pricing strategy - Management explained that they have committed to not increasing base contract prices and have adjusted upgrade pricing to offset tariff impacts [50][51]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and average sales price [24][25] - The average selling price per vehicle increased by $25,000, contributing to higher revenue [30] Market Data and Key Metrics Changes - The company has begun to establish retail locations, with the first store opening in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Retail sales currently contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail presence, planning to open four locations in affluent areas, which is seen as a key growth strategy [23][22] - ECD Auto Design is focusing on enhancing the customer journey and customization options, which has led to an increase in orders for vehicles priced over $500,000 [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs but emphasized their strategy to mitigate impacts without raising base contract prices for clients [50][51] - The company expects to reach a cash flow positive position by increasing production to about 10 units per month, aided by a backlog of orders [39][40] Other Important Information - The company underwent a re-audit of financial statements due to the shutdown of its prior auditor, which has impacted its reporting timeline [7] - A non-cash write-down of $1.1 million in labor overhead allocation affected gross profit for the fourth quarter [26] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - Analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive results in 2025 [38] Question: Vehicle backlog and its impact - Analyst noted that the 12 vehicles pushed from Q4 to Q1 would provide a cushion for the first half of the year [42] Question: Split between web-based sales and retail locations - Management discussed the shift in sales strategy, noting that retail locations currently contribute 20% of leads and sales, allowing for reduced traditional marketing spending [44][48] Question: Mitigation of tariff impacts - Management explained their strategy to avoid increasing base contract prices while adjusting upgrade pricing to offset tariff impacts [50][51]

Core Concept - ECD Automotive Design has launched Project Big Sky, a custom Defender 110 that showcases luxury craftsmanship and modern engineering, all handcrafted in the USA [1][16]. Design and Craftsmanship - Project Big Sky features a unique Fiat Light Blue exterior, representing a blend of British heritage and American engineering, built entirely by hand at ECD's 100,000-square-foot facility in Florida [2][6]. - The interior is designed for luxury, with Corbeau Trailcat seats wrapped in custom tan leather, offering heated and cooled functionality, and a cohesive design throughout the seating layout [3][8]. - Premium details include custom door cards, Wenge wood cargo panels, and a bespoke double center console, elevating the cabin to a luxury environment [3][9]. Performance Specifications - The vehicle is powered by a GM LT1 V8 engine producing 455 horsepower, paired with an 8-speed automatic transmission and high-performance Alcon brakes, ensuring refined handling and performance [4][14]. - ECD's proprietary Air Ride suspension contributes to the vehicle's performance across various driving environments [4][14]. Unique Features - Project Big Sky includes a range of custom features such as a WARN 10,000 lb winch, LED spotlights, and Optimil exterior components, enhancing both functionality and aesthetic appeal [6][7]. - The vehicle's interior is equipped with advanced technology, including dual wireless chargers, a premium audio system, and various safety features like blind spot assistance and a backup camera [10][18]. Company Background - ECD Automotive Design, trading under NASDAQ: ECDA, specializes in restoring luxury vehicles, combining classic aesthetics with modern performance, and each vehicle is bespoke, taking approximately 2,200 hours to build [17]. - Founded in 2013 by three British automotive enthusiasts, ECD emphasizes high standards of quality and craftsmanship, employing 105 skilled workers with numerous certifications [17].

Core Concept - ECD Automotive Design has unveiled Project Big Sky, a custom Defender 110 that showcases luxury craftsmanship and modern engineering, all handcrafted in the USA [2][18]. Company Overview - ECD Automotive Design is a public company trading under the ticker ECDA on Nasdaq, specializing in the restoration of luxury vehicles, combining classic aesthetics with modern performance [19]. - Founded in 2013 by three British automotive enthusiasts, the company operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 105 skilled workers with a total of 80 ASE certifications [19]. Product Details - Project Big Sky features a unique Fiat Light Blue exterior, handcrafted at ECD's facility, blending British heritage with American engineering [3][7]. - The vehicle is powered by a GM LT1 V8 engine producing 455 horsepower, paired with an 8-speed automatic transmission and high-performance Alcon brakes [5][16]. - The interior includes custom Corbeau Trailcat seats in tan leather, a bespoke center console with dual wireless chargers, and premium wood paneling, creating a luxurious driving experience [4][11][12]. Design and Craftsmanship - The exterior design includes a full suite of Zermatt Silver accents, 18-inch Sawtooth wheels, and BFGoodrich All-Terrain tires, emphasizing a sophisticated and confident aesthetic [7][8]. - Every detail, from the integrated WARN winch to the custom Optimil exterior components, reflects a commitment to bespoke craftsmanship [9][10]. Customer Experience - ECD emphasizes a personalized design journey for clients, ensuring that each vehicle is a unique expression of taste and individuality [6][18]. - The company offers an immersive luxury design experience, allowing clients to customize their vehicles extensively [19].

Revenue Performance - Revenue for the full year 2024 increased by 29% to a record $25.2 million, compared to $19.5 million in 2023[5] - Revenue for the year ended December 31, 2024, increased to $25,165,733, up 29% from $19,492,606 in 2023[31] - In Q4 2024, revenues increased by 10% to $5.3 million, compared to $4.8 million in Q4 2023[9] Profitability Metrics - Gross profit for 2024 rose by 30% to $5.9 million, representing 23.4% of revenue, compared to $4.5 million or 23.2% of revenue in 2023[12] - Gross profit rose to $5,887,947, representing a 30% increase from $4,522,923 in the previous year[31] - Net loss for 2024 was ($10.8) million, or ($0.32) per diluted share, compared to a net loss of ($1.2) million, or ($0.05) per diluted share in 2023[14] - Net loss for 2024 was $(10,771,451), compared to a net loss of $(1,178,906) in 2023, reflecting a substantial decline in profitability[31] - Adjusted EBITDA for 2024 was a loss of ($3.6) million, compared to an Adjusted EBITDA gain of $1.8 million in 2023[15] - Adjusted EBITDA for 2024 was $(3,558,474), a decrease from an adjusted EBITDA of $1,812,290 in 2023[36] Operating Expenses - Operating expenses for the full year 2024 were $10.4 million, up from $6.1 million in 2023, primarily due to increased general and administrative expenses[13] - Operating expenses totaled $10,436,687, a significant increase of 73% compared to $6,058,757 in 2023[31] - The company reported a significant increase in advertising and marketing expenses, which rose to $1,171,696, up 83% from $641,831 in 2023[31] Assets and Liabilities - Cash and equivalents as of December 31, 2024, were $1.5 million, down from $8.1 million at the end of 2023[16] - Total current assets decreased to $12,943,542 in 2024 from $17,775,983 in 2023, a decline of 27%[34] - Total liabilities increased to $37,173,174 in 2024, up from $34,144,401 in 2023, indicating a rise of 6%[34] - Accounts payable increased to $2,494,664 in 2024, compared to $898,445 in 2023, reflecting a rise of 177%[34] Company Strategy and Operations - The company completed approximately 12 vehicles in 2024, with revenue recognition deferred to the first half of 2025[9] - ECD plans to expand its retail presence with new locations, enhancing customer engagement and driving sales[10] Shareholder Information - The weighted average number of common shares outstanding increased to 33,505,605 in 2024 from 24,875,667 in 2023, an increase of 35%[31] Q4 Performance - Q4 2024 gross profit was $0.3 million, significantly impacted by a non-cash $1.1 million write-down[19]

Core Insights - ECD Automotive Design, Inc. reported exceptional growth in 2024, with revenues increasing by 29% to a record $25.2 million, driven by higher sales volume and average selling prices [5][10][7] - The company experienced a gross profit increase of 30% to $5.9 million, reflecting improvements in customer customization and operational efficiency [5][11] - Despite revenue and gross profit growth, ECD reported a net loss of $10.8 million for 2024, primarily due to increased operating expenses related to financial restatements and non-cash items [5][13] Full Year 2024 Highlights - Revenue for the year ended December 31, 2024, was $25.2 million, up from $19.5 million in 2023, attributed to increased volume and higher average selling prices [10] - Gross profit rose to $5.9 million, representing 23.4% of revenue, compared to $4.5 million or 23.2% of revenue in 2023 [11] - Operating expenses increased to $10.4 million from $6.1 million in 2023, mainly due to higher general and administrative costs and one-time legal fees [12] - The net loss for 2024 was $10.8 million, or $(0.32) per diluted share, compared to a net loss of $1.2 million, or $(0.05) per diluted share in 2023 [13] Fourth Quarter 2024 Highlights - Fourth quarter revenues increased by 10% to $5.3 million compared to $4.8 million in the same quarter of 2023, driven by higher sales volume and average selling prices [15] - Gross profit for the fourth quarter was $0.3 million, down from $1.2 million in the same quarter of 2023, impacted by a non-cash write-down of $1.1 million [16] - The net loss for the fourth quarter was $3.3 million, or $(0.11) per diluted share, compared to a net loss of $0.7 million, or $(0.03) per diluted share in the same quarter of 2023 [18] Management Commentary - The CEO highlighted that 2024 was marked by exceptional growth and execution, with a focus on enhancing the customer journey and customization capabilities [5] - Strategic investments in operational infrastructure have significantly contributed to the company's growth, allowing for increased production capacity [6] - ECD plans to expand its retail presence to enhance customer engagement and drive sales, with new locations already contributing to order backlogs [9]

Financial Performance - Revenue for the years ended December 31, 2024 and 2023 was $25.1 million and $19.5 million, respectively, representing a year-over-year increase of approximately 28.7%[307] - The company reported a net loss of $10.8 million for 2024 compared to a net loss of $1.2 million for 2023, indicating a significant increase in losses[307] - Adjusted EBITDA decreased by $5.4 million for the year ended December 31, 2024, compared to the previous year, primarily due to increased public company costs and expenses related to financial statement restatements[334] - The Company reported a net loss of $(10,771,451) for the year ended December 31, 2024, compared to a net loss of $(1,178,906) for the year ended December 31, 2023[333] - Net revenue for the year ended December 31, 2024, was $25,165,733, representing a 29.1% increase from $19,492,606 in 2023[352] - Gross profit increased to $5,887,947 in 2024, a 30.2% rise from $4,522,923 in 2023, with gross margin percentage improving to 23.4%[356] - Total operating expenses rose to $10,436,687 in 2024, a 72.3% increase from $6,058,757 in 2023, driven by higher advertising and general administrative expenses[359] - Interest expense surged to $5,270,404 in 2024, a 706.6% increase from $653,429 in 2023, primarily due to accrued interest on convertible notes[363] Business Operations - The company operates a logistics center in the UK to source and transport over-25-year-old work vehicles for restoration, enhancing its operational capabilities[310] - The company employs 105 individuals, including 67 craftsmen and technicians, contributing to its custom vehicle building process[310] - The Company increased production by approximately 20% utilizing one shift, and added an additional 10,000 sq. ft. of space in the second half of 2024[327] - The Company introduced the Jaguar E-type in 2022 and added the Ford Mustang and Toyota FJ to its lineup in 2024, targeting higher price points and gross margins[328] - The Company has expanded its manufacturing facility in Kissimmee, Florida, leasing 100,000 sq. ft. for 125 months to enhance production efficiencies[327] - The Company faced significant supply chain disruptions due to the COVID-19 pandemic, impacting operations and leading to the production of six fewer vehicles in 2020 compared to budget[324] Financial Obligations and Debt - The December 2023 Convertible Note has a principal amount of $15,819,209 and an annual interest rate of Prime + 5%, with a maturity date of December 12, 2026[313] - As of December 31, 2024, accrued interest on the December 2023 Convertible Note was $569,419, reflecting the company's financial obligations[319] - The company has experienced certain events of default under the December 2023 Convertible Note, resulting in additional default interest of $165,233 for the three months ended June 30, 2024[318] - Customer deposits amounted to $8,130,324 as of December 31, 2024, indicating reliance on customer funding for working capital[368] - Deferred revenue for completed vehicles not yet titled was $3,672,501 as of December 31, 2024, highlighting potential future revenue recognition[368] - The company has substantial doubt about its ability to continue as a going concern for the next twelve months due to liquidity concerns[377] - The company experienced cash flow challenges, with a net decrease in cash and cash equivalents of $6,657,361 for the year ended December 31, 2024[378] Strategic Initiatives - The Company plans to open new marketing channels in 2025, including outreach events and collaborations with market influencers[329] - The Company closed transactions related to the A&R Asset Purchase Agreement on April 24, 2024, and earned an additional $300,000 by June 24, 2024[321] - The Company entered into an Asset Purchase Agreement to acquire assets related to vehicle builds for up to $1.25 million, including a trademark, with a base price of $950,000[320] - The Company entered into a marketing services agreement with OTBC, agreeing to issue 100,000 shares of common stock valued at $100,000 for services rendered[436] - ECD announced a Strategic Partnership Agreement with One Drivers Club to launch its first retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[459] Compliance and Governance - The Company is currently working to regain compliance with Nasdaq Listing Rules after receiving notices regarding market value and filing delinquency[420][425] - The Company has a compliance period until August 4, 2025, to regain a minimum bid price of $1 per share[426] - ECD's 2024 Annual Meeting had 36,199,662 shares entitled to vote, with 21,334,357 shares (58.94%) represented[464] - The stockholders approved an amendment to increase the number of shares reserved under the 2023 Equity Incentive Plan from 400,000 to 2,500,000 shares[464] - ECD appointed Barton CPA PLLC as the independent registered public accounting firm for the year ending December 31, 2024[464] Management Changes - ECD appointed Benjamin Piggott as Chief Financial Officer on September 16, 2024, following the resignation of Raymond Cole[455] - Keven Kastner was appointed as Chief Revenue Officer on November 11, 2024, to drive sales and manage revenue streams[457]

Core Insights - ECD Automotive Design has opened a seasonal pop-up location in Nantucket, coinciding with the Daffodil Festival Weekend, and will host events through December 2025 [1][9] - The company showcases two distinct vehicles, Project Essex and Project Race, highlighting its craftsmanship and performance [2][3][4] Vehicle Highlights - Project Essex is a Bahama Gold Defender 110 soft top featuring a 6.2L GM LT1 V8 engine and 8-speed automatic transmission, designed for a blend of rugged capability and coastal sophistication [3] - Project Race is a vintage-inspired Land Rover Series III 109, powered by a 6.2L GM LS3 V8 and 5-speed manual transmission, representing classic British style with modern performance [4] Customer Engagement - The pop-up at 10 Easy Street serves as a creative hub for potential clients to explore ECD's luxury design process and engage with the brand [5][6] - A dedicated brand ambassador is available for consultations and to guide clients through the custom vehicle build experience [6] Community Collaboration - ECD plans to collaborate with local Nantucket brands for unique lifestyle experiences, culminating in a Nantucket Special Edition vehicle [7] - The details of the special edition vehicle are currently undisclosed, inviting local brands to contribute ideas [8] Company Overview - ECD Automotive Design specializes in restoring luxury vehicles, combining classic design with modern performance, and operates from a 100,000-square-foot facility in Kissimmee, Florida [11] - Each vehicle is bespoke, taking over 2,200 hours to build, and is crafted by master-certified technicians [11]

Financial Performance - Revenue for the nine months ended September 30, 2024, was $19.9 million, a 35.5% increase from $14.7 million in the same period of 2023[189]. - The company reported a net loss of $7.5 million for the nine months ended September 30, 2024, compared to a net income of $0.5 million for the same period in 2023[189]. - Net revenue for the three months ended September 30, 2024, was $6,440,049, representing a 30.0% increase from $4,954,277 in the same period of 2023[234]. - For the nine months ended September 30, 2024, net revenue was $19,884,213, a 35.3% increase from $14,698,260 in the same period of 2023[248]. - The net loss for the nine months ended September 30, 2024, was $(7,458,875), a significant increase of 1,461.4% from $(477,698) in 2023[248]. - Vehicle builds accounted for 98.8% of total revenue in Q3 2024, with a revenue increase of $1,436,744 (29.2%) compared to Q3 2023[236]. - Vehicle builds accounted for 98.6% of total revenue for the nine months ended September 30, 2024, with an increase of $5,036,479, or 34.6%, driven primarily by higher average selling prices per vehicle[249]. Expenses and Losses - Operating expenses rose to $2,642,467, an increase of 111.3% from $1,250,797 in the prior year, driven by significant increases in sales and marketing expenses (158.0%) and general and administrative expenses (107.6%)[240][241]. - Total operating expenses increased by $3,846,996, or 98.2%, to $7,764,900 for the nine months ended September 30, 2024, primarily due to higher advertising and general administrative expenses[252]. - Interest expense surged to $(1,401,829) for the three months ended September 30, 2024, a dramatic increase of 30,893.3% from $(4,523) in 2023[243]. - Interest expense increased significantly by $3,840,130, or 84,902.3%, primarily due to accrued interest on convertible notes[256]. - The company reported a loss from operations of $(634,927) for the three months ended September 30, 2024, compared to a loss of $(287,848) in the same period of 2023, reflecting a 120.6% increase in losses[234]. Mergers and Acquisitions - ECD Automotive Design, Inc. completed a merger with EF Hutton Acquisition Corporation I on December 12, 2023, resulting in a name change and new capital structure[193][195]. - The total consideration for the merger included 26.5 million shares of common stock, 25,000 shares of preferred stock, and a cash payment of $2 million[197]. - The company entered into an Amended and Restated Asset Purchase Agreement to acquire assets related to vehicle builds for up to $1.25 million, including a trademark, with a base price of $950,000 and an additional $300,000 for new vehicle builds[203]. - The company issued 1,250,000 shares of common stock on August 11, 2024, following the completion of the asset purchase agreement[204]. Cash Flow and Capital Needs - The company reported a net cash decrease of $4,542,083 for the nine months ended September 30, 2024, compared to an increase of $1,667,658 in the same period of 2023[269]. - Cash used in operating activities was $7,199,988 for the nine months ended September 30, 2024, mainly due to a decrease in deferred revenue and an increase in inventory[270]. - The company anticipates needing to source additional capital over the next twelve months to fund operations before achieving positive cash flow[268]. Operational Developments - The company operates a 100,000-square-foot facility in Kissimmee, FL, with 102 employees, including 72 craftsmen and technicians[192]. - The company increased production by approximately 20% in 2023 and plans to add an additional 10,000 sq. ft. of space in the second half of 2024 to accommodate vehicle storage[210]. - The company introduced the Jaguar E-type in 2022, which has a higher price point and gross margin compared to traditional models, and plans to leverage the assets from the recent acquisition to produce Mustangs in 2024 and 2025[211]. - The company has opened new marketing channels in 2024, including outreach events and expanding into international markets such as Europe and Canada[212]. - The company plans to relocate quality control and warranty services to a new facility in 2024, enhancing operational efficiency[211]. Financial Instruments and Obligations - The company issued a senior secured convertible note for $15,819,209 in December 2023, with an interest rate of Prime + 5%[196]. - Default interest of $165,233 was calculated for the three months ended June 30, 2024, due to events of default under the December 2023 Convertible Note[200]. - The company recognized a gain on forgiveness of payable of $319,899 in the consolidated statements of operations following the waiver of pre-existing events of default[200]. - The company recorded amortization expenses of $537,054 for the nine months ended September 30, 2024, related to debt discounts and issuance costs[201]. - As of September 30, 2024, accrued interest on the December 2023 Convertible Note and the August 2024 Convertible Notes was $773,417[201]. General and Administrative Expenses - The company expects general and administrative expenses to increase as it continues to grow and comply with public company regulations[227]. - The company expects general and administrative expenses to increase in absolute dollars year-over-year but decline as a percentage of total revenue as the business grows[241]. Other Financial Information - The company has experienced varying levels of inflation, impacting product and labor costs, but inflation did not materially affect operations for the three and nine months ended September 30, 2024, or 2023[277]. - Net currency exchange gains (losses) were not material for the three and nine months ended September 30, 2024, and 2023[278]. - The company does not typically experience seasonality in its operations[279]. - The company has no uncertain tax positions requiring adjustment to the consolidated financial statements, with a reserve of zero as of September 30, 2024, and 2023[295]. - The company recognizes revenue when the product build is completed and title has been transferred, with approximately 50% of the total contract consideration billed upon contract acceptance[285][286]. - Warranty obligations are estimated at the time revenue is recognized, with potential revisions based on actual costs differing from estimates[290]. - The company evaluates the realizability of deferred tax assets quarterly, with a valuation allowance recorded against all deferred tax assets as of September 30, 2024[298]. - The estimated fair value of cash, accounts receivable, and accounts payable approximates their carrying amounts due to short maturities[299]. - The company assesses warrants for liability or equity classification based on specific accounting standards, impacting how changes in fair value are recorded[300].