Financial Performance - The company's revenue for Q2 2024 was $0.9 million, a decrease from $1.0 million in Q1 2024 and consistent with Q4 2023 revenue[5]. - Operating expenses for Q2 2024 were $3.4 million, down from $3.7 million in Q1 2024 and $4.7 million in Q4 2023[7]. - The net loss for Q2 2024 was $0.6 million, significantly reduced from $26.0 million in Q1 2024 and $3.4 million in Q4 2023[9]. - Adjusted EBITDA for June 2024 was $(5,133,444) compared to $(4,135,683) for March 31, 2024, indicating a decline[16]. - Overall, the adjusted EBITDA reflects a worsening trend compared to the previous year, with a notable increase in losses[16]. Cost Management - Cost of goods sold for Q2 2024 included a $1.1 million charge for a settlement agreement with a vendor and a $0.4 million write-off for Stag tooling[6]. - The company has reduced headcount costs and streamlined product development to minimize cash requirements and inventory[5]. - Share-based compensation expense was $287,751, a decrease from $404,568 in the previous period[16]. - Interest expense decreased to $196,997 from $329,968, reflecting improved financial management[16]. - Depreciation and amortization expense increased to $99,517 from $75,405, indicating higher asset utilization[16]. Future Projections - The company anticipates completing Army Corp's orders by August 2024, delayed by one month due to manufacturing issues[2]. - Prototypes for the next generation Grunt and a new UTV model are expected by Q3 2024, with availability projected for Q1 2025[3][4]. - The company is focusing on reducing net losses and managing expenses more effectively moving forward[16]. Capital and Compliance - The company raised $12 million in July 2024 from an equity offering, improving its balance sheet and equity structure[1]. - The company regained Nasdaq compliance on July 17, 2024, and will be monitored for one year[1]. Other Financial Metrics - Loss from conversion and exchange of convertible notes was $1,647,608, which was not present in the previous period[16]. - Issuance costs were recorded at $1,444,547 in the previous period, with no new issuance costs reported for the current period[16]. - The gain/loss on change in fair value of derivative liabilities was $(5,111,291) compared to $(8,365,424) in the previous period, showing an improvement[16].
Volcon(VLCN) - 2024 Q2 - Quarterly Results