For the quarterly period ended March 31, 2025 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to__________ Commission file number: 001-40867 Volcon, Inc. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 84- ...

AUSTIN, Texas, May 09, 2025 (GLOBE NEWSWIRE) -- Volcon Inc. (NASDAQ: VLCN) (“Volcon'', the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the quarter ended March 31, 2025. Company Highlights: ● Sold all remaining Grunt EVO motorcycles in Q1● Signed amended and restated golf cart supply agreement with Venom-EV● Evaluating impact of tariffs on products In the first quarter of 2025, Volcon successfully sold all re ...

PRESS RELEASE Luxembourg, 29th April 2025 VELCAN HOLDINGS: ANNUAL RESULTS 2024 STRONG FINANCIAL RESULTS, STABLE TURNOVER OF THE RODEIO BONITO PLANT, NON-AUDITED KEY CONSOLIDATED FIGURES2024 2023 Var %Revenues (EUR m)3.02.9+2%EBITDA (EUR m)-5.61.8NA%Net Income (EUR m)11.2<td style="width:7.26%; ...

Financial Performance - Revenue for the year ended December 31, 2024, was $4,037,191, an increase of 23.8% compared to $3,260,988 in 2023[163][164]. - Cost of goods sold for 2024 was $18,168,288, significantly higher than $11,391,040 in 2023, reflecting increased production costs[165][168]. - Net loss for 2024 was $45,510,309, slightly higher than the net loss of $45,071,211 in 2023[186]. - Sales and marketing expenses decreased to $2,548,953 in 2024 from $7,405,705 in 2023, indicating a strategic shift in marketing approach[172][173]. - Product development expenses were $2,668,330 in 2024, down from $7,868,985 in 2023, as the company focuses on cost management[176][177]. - General and administrative expenses increased to $7,665,647 in 2024 from $6,388,007 in 2023, driven by higher professional fees and insurance costs[180][181]. - Total operating expenses for 2024 were $12,882,930, down 40.6% from $21,662,697 in 2023[212]. - Cash flow from operating activities showed a net cash used of $(16,037,552) in 2024, compared to $(29,568,092) in 2023, indicating improved cash management[218]. - The company reported a net cash provided by financing activities of $10,373,092 in 2024, a decrease from $27,084,318 in 2023[218]. Financial Position - As of December 31, 2024, the company has an accumulated deficit of $166.3 million[56]. - The company had cash and restricted cash of $2.3 million as of December 31, 2024, with a working capital of $0.4 million[187]. - Total current assets decreased from $19.5 million in 2023 to $5.1 million in 2024, with significant reductions in cash and inventory[210]. - Total liabilities decreased from $41.8 million in 2023 to $6.2 million in 2024, reflecting a substantial reduction in convertible notes and accrued liabilities[210]. - Shareholders' equity improved from a deficit of $19.6 million in 2023 to $40,761 in 2024, following additional capital raises[210]. - The company has recurring losses and has generated negative cash flows from operations since inception, indicating ongoing financial challenges[226]. Compliance and Regulatory Issues - The company is currently not in compliance with Nasdaq's continued listing requirements, with its common stock trading below $1.00 for 30 consecutive business days as of December 19, 2023[129]. - The market value of the company's listed securities has been below the minimum $35 million required for continued listing for the previous 180 calendar days[129]. - A hearing was held on March 26, 2024, resulting in an extension until June 24, 2024, to demonstrate compliance with Nasdaq Listing Rules[130]. - The company completed reverse stock splits in February, June, and November 2024 to regain compliance with Nasdaq's bid price rule[133]. - The company received notices from Nasdaq regarding non-compliance with listing rules, including a market value of listed securities below $35 million and a minimum bid price below $1.00 per share[232]. - The company completed multiple reverse stock splits in 2024, including a 1 for 8 split on November 8, 2024[242]. Operational Challenges - Management anticipates that current cash and expected operational cash flow will not be sufficient to fund planned operations beyond one year from the financial statement date[58]. - The company faces potential production delays due to reliance on single-source suppliers for key components[72]. - Increased costs or shortages of materials, particularly battery cells, could adversely affect the company's operating results and margins[79]. - The company has faced supply chain constraints leading to delays in vehicle production, impacting brand and financial condition[80]. - The ongoing conflict between Russia and Ukraine could affect the availability of nickel, which constitutes 5%-6% of the world's supply, potentially increasing production costs[83]. - The fulfillment of orders depends on third-party manufacturers successfully increasing production capacity, which is uncertain[103]. - The company faces risks of order cancellations due to delays between ordering and delivery, potentially harming financial condition[104]. Product Development and Market Strategy - The company launched the Brat E-Bike in December 2022 and expects to continue sales throughout 2025[62]. - The company signed agreements for the manufacturing of VLCN HF1 UTV and VLCN MN1 vehicles, along with a distribution agreement for golf carts in the U.S.[63]. - The company plans to expand its international distributor network, having already signed agreements with six distributors in Latin America[100]. - There is a significant need for product development and innovation to meet customer preferences and compete effectively[105]. - The company has limited experience in servicing vehicles and is developing a network of service providers, which is critical for customer satisfaction[106]. - The success of the company is tied to the adoption of electric vehicles in the off-road vehicle industry, which is rapidly evolving[111]. Cash Management and Financing - The company entered into an accounts receivable factoring arrangement to generate cash for working capital[98]. - The company received additional net proceeds of $8.8 million from the issuance of common stock after December 31, 2024[196]. - The company anticipates that its cash on hand and expected cash generation will not be sufficient to fund planned operations beyond one year from the financial statement issuance date, raising substantial doubt about its ability to continue as a going concern[231]. - The company converted approximately $7.4 million of principal from Convertible Notes to common stock and exchanged $24.7 million of remaining Convertible Notes for Preferred Stock in early 2024[227]. - The company issued Senior Notes with an aggregate principal amount of $2,942,170 due May 22, 2025, resulting in net proceeds of $2,255,851[228]. - As of February 4, 2025, the company raised net proceeds of $9,143,725 from an At the Market equity offering, with a total offering amount of up to $100 million[230]. Changes in Leadership - The company has made significant changes in its executive team, including the resignation of the CEO and the appointment of a new CEO with a salary of $800,000 and an annual bonus of $250,000[236][237].

Financial Performance - Revenue for Q4 2024 was $0.99 million, a decrease from $1.08 million in Q3 2024 and consistent with Q2 2024[12] - Net loss for Q4 2024 was $5.22 million, compared to a net loss of $13.64 million in Q3 2024[9] - Adjusted EBITDA for Q4 2024 was a loss of $4.98 million, an improvement from a loss of $12.06 million in Q3 2024[18] - The total operating expenses for Q4 2024 were $2.95 million, a slight increase from $2.92 million in Q3 2024[9] Funding and Financial Activities - The company raised $19.5 million in February 2025 from At the Market and Equity Offerings[2] - The company initiated a share repurchase program in March 2025 for up to $2 million[6] - The company has no debt and expects to operate into 2026 with its current cash position[7] Product Development and Agreements - An exclusive distribution agreement was signed with Super Sonic Company Ltd. for golf carts in the U.S.[2] - The company launched the HF1 UTV in Q4 2024 and received prototypes of the FT1 motorcycle in February 2025[3][4] - Venom-EV placed an initial purchase order for $2.4 million under a supply agreement for golf carts[3]

Core Insights - Volcon ePowersports has signed a Supply Agreement with Venom-EV to supply golf carts, with an initial order of 500 units from Venom [1] - The partnership is expected to enhance Volcon's market presence in the golf cart sector, leveraging Venom's established brand and dealer network [1][2] - Volcon's recent funding will support its entry into the golf cart market and expansion plans, particularly in light of U.S. tariffs on Chinese-made golf carts [1] Company Overview - Volcon is based in Austin, Texas, and is recognized as the first all-electric power sports company, focusing on high-quality electric vehicles for outdoor activities [2] - The company aims to provide environmentally friendly and nearly silent vehicles, enhancing the outdoor experience for users [2] Product Development - Volcon's product lineup includes motorcycles, UTVs, and eBikes, with the Grunt being its first product launched in late 2021 [3] - The Grunt EVO, an upgraded version, began shipping in October 2023, while the Brat targets the eBike market [3] - In 2024, Volcon entered the LUV and UTV market, with the first production unit, MN1, shipped in October 2024 [3]

Core Insights - The strategic shift under CEO John Kim has transformed Volcon from a research-focused organization to a collaborative manufacturer of electric vehicles, positioning it as a disruptor in the ePowersports market [1] - The recent partnership with AODES (Super Sonic) has enabled Volcon to raise $19.45 million, facilitating entry into the golf cart and utility vehicle market, leveraging favorable tariffs from Vietnam [2][3] - Cost reductions and a focus on inventory management are expected to lead to cash flow positivity by Q4 2025, allowing the company to sustain operations into 2026 [4] Company Strategy - Volcon's new approach emphasizes collaboration with manufacturers to enhance product offerings and market presence, moving away from a solely R&D focus [1] - The company plans to utilize the recent investment primarily for inventory acquisition and expanding its sales team to meet consumer demand [3] - Outsourcing marketing efforts to specialized firms has contributed to reduced costs and improved market share [3] Market Positioning - The partnership with AODES (Super Sonic) is seen as a significant opportunity to capture market share in the US, especially given the low tariffs on Vietnamese imports compared to those from China [2] - Volcon aims to innovate within the two-wheel vehicle segment while also expanding its footprint in the golf cart and UTV markets [4][6] - The company’s vehicle roadmap includes a range of products, such as the Grunt and its evolution, the Grunt EVO, as well as the Brat eBike and the MN1 utility vehicle [6]

Core Viewpoint - Volcon Inc. has formed a strategic alliance with Super Sonic Company Limited to become the sole distributor of AODES-branded golf carts in the U.S., positioning the company to benefit from rising tariffs on Chinese imports [1][3]. Group 1: Strategic Alliance and Market Position - The partnership with Super Sonic allows Volcon to distribute golf carts at a significantly lower tariff rate of 2.5%, compared to tariffs ranging from 149% to 500% on Chinese imports [3][4]. - This strategic move is expected to enable Volcon to increase sales to dealers and large retailers, capitalizing on the favorable market conditions created by the tariffs [3][4]. Group 2: Market Context and Regulatory Environment - The American Personal Transportation Vehicle Manufacturer Coalition has raised concerns about unfair competition from Chinese manufacturers, leading to a review by the Department of Commerce [2]. - The U.S. Census Bureau reported that 114,000 golf carts valued at $450 million were imported from China in 2023, which are now facing increased scrutiny due to government subsidies in China [4]. Group 3: Stock Performance - Following the announcement of the strategic alliance, Volcon's shares increased by 37.7%, reaching $4.60 [5].

Core Insights - Volcon ePowersports has signed an exclusive distribution agreement with Super Sonic Company Limited for golf carts in the US, leveraging Super Sonic's manufacturing capabilities in Vietnam to gain a competitive edge in the market [1][2][3] Company Overview - Volcon is based in Austin, Texas, and is recognized as the first all-electric power sports company, focusing on sustainable electric vehicles for outdoor activities [5] - The company has a diverse vehicle roadmap that includes motorcycles, UTVs, and eBikes, with products like the Grunt and MN1 already in the market [6] Industry Context - The golf cart industry is currently experiencing favorable conditions for buyers, particularly due to recent tariffs imposed on Chinese imports, which can reach up to 500% [2][3] - In 2023, the US imported 114,000 golf carts valued at $450 million from China, highlighting the significant market size and the impact of tariffs on competitive dynamics [2] Competitive Advantage - Volcon's partnership with Super Sonic allows for a lower import tax of 2.5% on golf carts manufactured in Vietnam, compared to the high tariffs on Chinese imports, positioning Volcon to capture market share from competitors [3] - Super Sonic is also working on innovative designs for new golf cart models that could enhance performance and comfort, potentially revolutionizing the market [4]

Core Insights - Volcon ePowersports has officially launched the Volcon HF1 at Lithium Powersports in Jacksonville, FL, making it available for purchase [1] - The company focuses on producing high-quality, sustainable electric vehicles for the outdoor community, emphasizing environmental benefits and near-silent operation [2] Product Development - Volcon's vehicle lineup includes motorcycles and UTVs, with the Grunt being the first product shipped in late 2021, featuring a fat-tired design and high-torque electric power [3] - The Grunt EVO, an upgraded version of the original Grunt, began shipping in October 2023, offering improved features [3] - The Brat, Volcon's entry into the eBike market, is currently being delivered to dealers across North America [3] - In 2024, Volcon expanded into the LUV and UTV market, with the first MN1 unit shipped in October 2024 [3] - The new MN1 and HF1 products provide a unique outdoor exploration experience without the noise and pollution associated with gas-powered units [3]