Revenue Generation - The company has not generated any revenue from EV sales as of June 30, 2024, and expects to generate revenue from the sale of EV models, technology licensing, and R&D services [126]. - The company has not yet released any commercially available vehicle and expects to continue incurring substantial operating losses for the foreseeable future [121]. Financial Performance - The net loss for the three months ended June 30, 2024, was approximately $1.3 million, compared to a net loss of $0.7 million for the same period in 2023 [134]. - The net loss for the six months ended June 30, 2024, was approximately $1.6 million, compared to a net loss of $0.9 million for the same period in 2023 [137]. - Accumulated losses amounted to approximately $36.0 million and $34.4 million as of June 30, 2024, and December 31, 2023, respectively [139]. - The company reported a net loss of approximately $1.6 million for the six months ended June 30, 2024 [143]. Expenses - General and administrative expenses for the three months ended June 30, 2024, were approximately $1.3 million, an increase from $0.7 million in the same period in 2023, primarily due to share-based compensation expenses [133]. - For the six months ended June 30, 2024, general and administrative expenses were approximately $1.6 million, up from $0.9 million in the same period in 2023 [136]. - The company anticipates an increase in general and administrative expenses as it launches production lines for its EVs and incurs higher costs associated with being publicly traded [128]. - The company incurred minimal research and development expenses for the three and six months ended June 30, 2024, and 2023 [151]. Cash Flow and Financing - As of June 30, 2024, the company had approximately $0.9 million in cash, primarily financed through loans from related parties and equity financing [138]. - Net cash used in operating activities for the six months ended June 30, 2024, was approximately $0.5 million, compared to $0.4 million for the same period in 2023 [143]. - Cash provided by investing activities for the six months ended June 30, 2024, was approximately $0.9 million, resulting from a reverse acquisition [144]. - Cash provided by financing activities for the six months ended June 30, 2024, was approximately $0.3 million, down from $1.2 million in the same period in 2023 [144]. - As of June 30, 2024, the working capital was approximately $(5.8) million, a decrease from $0.7 million as of December 31, 2023 [139]. - The company is actively seeking private equity financing from outside investors to support ongoing capital expenditures and working capital needs [141]. - The principal shareholder has committed to continue providing funds for working capital needs whenever necessary [140]. Business Combination - The company completed a business combination on June 21, 2024, acquiring TP Holdings in exchange for 40 million shares of common stock and potential earn-out payments of up to 20 million shares based on revenue performance targets [116]. - The company has committed to providing Earnout Shares contingent on achieving sales/revenues of no less than $42.2 million for fiscal years ending from December 31, 2023, to December 31, 2025 [146]. Product Development - The company is focused on developing four EV models: the Coupe, Sedan, City Car, and SUV, with plans to leverage a modular integration concept to reduce costs and production time [114].
Feutune Light Acquisition (FLFV) - 2024 Q2 - Quarterly Report