Financial Performance - For the three months ended June 30, 2024, the company recorded a net loss of $2.55 million, which includes impairments of $1.73 million related to lease ROU assets and held for sale assets [100]. - The net loss for the three months ended June 30, 2024, was approximately $6.5 million, an improvement of $8.2 million compared to a net loss of $14.7 million in Q2 2023 [118]. - The net loss for the six months ended June 30, 2024, was approximately $13.1 million, an improvement of $13.8 million compared to a net loss of $26.9 million in the same period of 2023 [130]. - For the six months ended June 30, 2024, revenue was approximately $11 thousand, again reflecting a significant increase from zero revenue prior to September 2023 [125]. Revenue Generation - The company generated approximately $0.5 million in revenue for the year ended December 31, 2023, from the sale of battery systems and components, but has not continued this revenue stream [115]. - Revenue for the three months ended June 30, 2024, was approximately $7 thousand, a significant increase from zero revenue prior to September 2023 [119]. Cost Management - Total operating expenses for the three months ended June 30, 2024, decreased by $10.0 million to $4.6 million compared to $14.6 million in the same period of 2023 [118]. - Total operating expenses for the six months ended June 30, 2024, decreased by $17.0 million to $11.2 million compared to $28.1 million in the same period of 2023 [124]. - Research and development expenses decreased by $4.5 million from $5.1 million in Q2 2023 to $0.6 million in Q2 2024 due to paused development and cost-saving measures [122]. - General and administrative expenses decreased by $5.4 million from $9.4 million in Q2 2023 to $4.0 million in Q2 2024, primarily due to reduced stock-based compensation [123]. Capital Raising - During the six months ended June 30, 2024, the company raised approximately $10.7 million net through its "At-The-Market" equity offering [110]. - The company raised approximately $10.7 million through its ATM during the six months ended June 30, 2024 [130]. Operational Developments - The company successfully launched its first NxuOne™ megawatt charging station and produced multiple units ready for deployment as of March 31, 2024 [109]. - The company incurred losses from the operation of its first NxuOne™ charging station in 2024 and expects to continue incurring losses until sufficient capital is obtained to scale production [109]. - The company paused production of the NxuOne™ charging station in the three months ended June 30, 2024, and reduced headcount across various functions to cut costs [116]. - The company aims to increase profitability through competitive pricing and deployment of additional NxuOne™ charging stations [114]. Strategic Initiatives - The company is exploring strategic alternatives for business combinations to achieve operational stability and growth [111]. - The company has identified targets for a business combination to strengthen its financial profile and create long-term value [111]. - The company plans to sell battery manufacturing equipment and other assets in an online auction scheduled for August 13, 2024 [115]. Financial Position - As of June 30, 2024, the company had $4.6 million in cash and an accumulated deficit of approximately $272.7 million [130]. - The company has contractual lease obligations for two properties with initial lease terms ending in the summer of 2025 [135]. - The lease agreement for the warehouse facility in Mesa, Arizona includes options to renew that can extend the lease term by five years or more [135]. - An equipment lease was added during the six months ended June 30, 2024, with a lease term ending in December 2025, but this lease was terminated after June 30, 2024 [135]. - The company has obligations under its convertible debt facility to repay the remaining balance not converted into equity at the maturity date, which is two years from issuance [135]. Accounting Policies - There have been no material changes to critical accounting policies and estimates disclosed in the 2023 Form 10-K [136].
Nxu(NXU) - 2024 Q2 - Quarterly Report