Core Insights - ECD Automotive Design has launched a new Mustang program with the introduction of Project '67 Ghost, a fully bespoke 1967 Mustang Fastback, marking a significant expansion into American muscle cars [3][6] - The Mustang program emphasizes a client-driven, one-of-a-kind experience, allowing customers to customize every detail of their vehicles [4][8] - ECD has partnered with Roush Performance to provide upgraded Small Block Ford V8 engines, enhancing the performance while maintaining the original car's character [5][8] Company Overview - ECD Automotive Design is a public company listed on NASDAQ under the ticker ECDA, specializing in luxury vehicle restorations that blend classic aesthetics with modern performance [10] - Founded in 2013, the company operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 105 skilled craftsmen with a strong focus on quality and customization [10] - ECD's restoration process involves approximately 2,200 hours of hand-building each vehicle, ensuring a high level of craftsmanship and attention to detail [10] Product Highlights - The '67 Ghost features a 465-horsepower ROUSH 347 IR V8 engine, designed for a balance of raw power and everyday usability [6][11] - The vehicle is built on a Roadster Shop RS Spec chassis, providing responsive handling and modern comfort [6] - The exterior design includes High Gloss Mineral White paint with Santorini Black Metallic rally stripes, while the interior boasts heated Recaro seats and modern technology like Apple CarPlay and JBL premium audio [7][11] Market Position - ECD aims to redefine classic American muscle cars by offering bespoke builds that cater to individual preferences, setting itself apart from competitors who often use off-the-shelf components [8] - The company is already working on multiple commissions inspired by iconic Mustang models, indicating strong demand for its custom offerings [8]

Financial Performance - Revenue for the three months ended March 31, 2025, was $6.4 million, a decrease of approximately 8.57% compared to $7.0 million for the same period in 2024[176]. - The company reported a net loss of $2.8 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024[176]. - Net revenues for the three months ended March 31, 2025, were $6,421,371, a decrease of 8.1% compared to $6,989,746 for the same period in 2024[215]. - Gross profit increased by 15.7% to $1,764,572 for the three months ended March 31, 2025, compared to $1,525,633 in 2024, driven by an increase in average selling price per vehicle[215][219]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(877,790), a decrease of $442,900 compared to $(434,890) for the same period in 2024[199]. - The company reported a net loss of $(2,750,317) for the three months ended March 31, 2025, a slight improvement of 3.8% compared to $(2,859,862) in 2024[215]. - Total operating expenses increased by 47.0% to $3,719,080 for the three months ended March 31, 2025, compared to $2,529,711 in 2024[220]. - General and administrative expenses rose significantly by 58.3% to $3,393,542 for the three months ended March 31, 2025, compared to $2,143,550 in 2024[220]. - Interest expense increased by 63.4% to $(1,856,979) for the three months ended March 31, 2025, compared to $(1,136,300) in 2024[215]. - The company experienced a significant increase in provision for credit losses, reporting $9,295 for the three months ended March 31, 2025, compared to $0 in 2024[220]. Production and Operations - The company increased production by approximately 20% in 2023 utilizing one shift[194]. - The company plans to leverage the assets of Brand New Muscle Car (BNMC) for the production of Mustangs in 2024 and 2025, resulting in 6 Mustang contracts[195]. - The company opened new retail locations in West Palm Beach, FL, and Nantucket, MA, in 2025[196]. - The company plans to relocate quality and warranty services to a new facility in 2024, which will also serve as a warranty and used vehicle sales center[195]. - Vehicle builds accounted for 99.8% of total revenue for the three months ended March 31, 2025, with a decrease of $491,455 compared to the same period in 2024[216][217]. - Warranty and other revenue decreased by 94.6% to $4,290 for the three months ended March 31, 2025, compared to $79,050 in 2024[216]. Financial Position and Liquidity - The company anticipates sufficient resources to operate during 2024[193]. - As of March 31, 2025, the company had customer deposits amounting to $7,721,542 and deferred revenue of $2,766,821 for vehicles completed but not yet titled[228]. - Cash used in operating activities was $3,045,185 for the three months ended March 31, 2025, compared to $2,554,971 for the same period in 2024[240][241]. - The company had cash and cash equivalents of $677,473 as of March 31, 2025, with primary operating funds sourced from cash receipts from sales and loans payable[232]. - The company anticipates needing to raise additional financing through loans or equity raises to support future capital requirements, with no assurance that such financing will be available on commercially acceptable terms[238]. - Management has raised substantial doubt about the company's ability to continue as a going concern for the next twelve months due to liquidity concerns[239]. Debt and Financing - The company has a senior secured convertible note with a principal amount of $15,819,209, accruing interest at an annual rate of Prime Interest rate plus 5%[180]. - The December 2023 Convertible Note has a maturity date of December 12, 2026, and ranks senior to all outstanding and future indebtedness of the company[181]. - The company provided cash of $2,249,565 from financing activities for the three months ended March 31, 2025, primarily from the January 2025 Convertible Note and the Agile Loan[244]. - Total future lease obligations as of March 31, 2025, amount to $4,734,564, with the largest obligations in 2029 and beyond totaling $2,765,365[246]. - The Company entered into a Business Loan and Security Agreement on February 20, 2025, receiving a term loan of $1,575,000, with total interest accruing to $661,500[281]. - The Company entered into a new loan agreement on April 4, 2025, receiving a term loan of $1,824,300, with total interest accruing to $638,505[290]. - The net proceeds from the new loan were used to pay off the previous Agile Loan of $1,749,300[291]. - The Company entered into loan agreements with a private lender for two term loans totaling $300,000, with an interest rate of 24.99%[294]. - The Company authorized a new series of Series B Convertible Preferred Stock, allowing for the conversion of $1,284,881 of outstanding notes into shares[295]. Revenue Recognition and Tax Assets - The company recognizes revenue upon completion of vehicle builds and transfer of title, with product revenue recorded when the build is completed[256]. - Approximately 25% to 50% of the total contract consideration is received as an upfront payment, recorded as deferred revenue, with the remaining 50% to 75% billed upon completion[257]. - The company generates additional revenue through extended warranties and repair services, with service revenue recognized upon completion of the work[258][259]. - The company has a warranty reserve based on historical warranty costs per vehicle, which may require adjustments if actual costs differ from estimates[261]. - As of March 31, 2025, the company has recorded a valuation allowance against all deferred tax assets, indicating it is more likely than not that the benefits of these assets will not be recognized[269]. - The company evaluates the realizability of deferred tax assets quarterly, considering factors such as future taxable income and historical taxable income[268]. Strategic Initiatives - The Company signed a Strategic Partnership Agreement with One Drivers Club to launch a retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[284]. - The Company will issue 725,000 unrestricted shares of capital stock to One Drivers Club upon completion of the showroom build-out, with a minimum value of $500,000[284]. - The Company issued 236,000 shares of common stock to an advisor for business advisory services on February 20, 2025[282]. - The Company appointed Keven Kastner as Chief Revenue Officer to drive sales and manage revenue streams[283]. Miscellaneous - The company’s financial instruments, such as cash and accounts receivable, approximate their carrying amounts due to their short maturity[270]. - The company’s warranty obligations are influenced by its product quality programs and historical warranty costs, which are monitored for potential adjustments[261]. - The Exchange Agreement allows the Lender to require the Company to participate in Additional Exchanges for converting outstanding amounts into Series B Preferred Stock[296]. - The Exchange Agreement is detailed in the Current Report on Form 8-K filed on May 15, 2025, as Exhibit 10.1[297]. - As a smaller reporting company, the Company is not required to provide quantitative and qualitative disclosures about market risk[298].

Core Insights - ECD Auto Design has introduced a new 700+ horsepower BLUEPRINT V8 engine, available as an upgrade for the Defender lineup and Range Rover Classic builds, marking a significant enhancement in performance options for luxury SUVs [2][9]. Company Overview - ECD Auto Design is a public company listed on NASDAQ under the ticker ECDA, specializing in the restoration of luxury vehicles, combining classic aesthetics with modern performance [10]. - Founded in 2013 by three British automotive enthusiasts, the company operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 105 skilled craftsmen with extensive certifications [10]. Product Development - The new BLUEPRINT V8 engine is a response to client demand, integrating decades of experience with LS-based drivetrains to deliver a powerful yet classic driving experience [3][4]. - Key upgrades for the 700+ HP configuration include a new front-end rotating assembly, enhanced cooling systems, upgraded transmission and differentials, and refined ECU tuning [7][5]. Market Positioning - The 700HP option is designed for clients seeking a blend of classic design and modern performance, appealing to performance-focused collectors and luxury clients [9][8]. - ECD emphasizes a bespoke process, allowing clients to customize their vehicles extensively, with each build taking approximately 2,200 hours to complete [10].

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]