Financial Performance - For the three months ended March 31, 2024, total operating expenses increased to $11,588, a 1,656% increase from $660 in the same period in 2023[87] - The net loss for the three months ended March 31, 2024, was $11,594, representing a 1,641% increase from a net loss of $666 in the same period in 2023[89] - For the six months ended March 31, 2024, total operating expenses rose to $12,006, a 1,120% increase from $984 in the same period in 2023[91] - The net loss for the six months ended March 31, 2024, was $12,018, reflecting a 1,107% increase from a net loss of $996 in the same period in 2023[93] - Graphjet Technology has incurred cumulative losses from operations totaling $15.3 million as of March 31, 2024[106] Business Operations - Graphjet Technology has not had any sales of its products to date but plans to sample its products to multinational companies for market acceptance[75] - The company aims to be a low-cost producer of high-quality artificial graphite and graphene, utilizing a patented biomass process[73] - Graphjet Technology's technology is based on transforming palm kernel shells into artificial graphene and graphite, significantly reducing carbon emissions[72] - The company has a patent granted for palm-based synthetic graphite and a pending patent for palm-based graphene[78] - The business combination with Graphjet Technology Sdn. Bhd. was completed on March 14, 2024, resulting in Energem changing its name to Graphjet Technology[69] Cash Flow and Financing - Cash used in operating activities for the six months ended March 31, 2024, was approximately $3,296, compared to $222 for the same period in 2023, representing a variance of 1,384%[95] - Cash used in investing activities during the six months ended March 31, 2024, was approximately $1,264, while there were no cash used in investing activities in the same period in 2023[98] - Cash provided by financing activities for the six months ended March 31, 2024, was $5,705, compared to $0 in the same period in 2023, indicating a significant increase[99] - The net increase in cash for the six months ended March 31, 2024, was $1,145, a 616% increase from a net decrease of $222 in the same period in 2023[94] - The company expects that the net impact of the Business Combination along with cash balances will be sufficient to fund operations for at least the next 12 months[106] - The company intends to finance future development activities through equity and debt financing, but there is no assurance that additional financing will be available[107] Risks and Uncertainties - The company has limited operating history and is currently in a research and development phase, with significant uncertainty regarding its ability to continue as a going concern[103] - The company is subject to risks from geopolitical tensions, which may affect its ability to procure raw materials and raise equity and debt financing[127] - The unaudited condensed consolidated financial statements do not include any adjustments that might result from the uncertainties related to geopolitical tensions[127] - As of March 31, 2024, the company was not subject to any market or interest rate risk[128] Tax and Regulatory Matters - The company has no unrecognized tax benefits as of March 31, 2024, and its tax provision was zero for the three months ended March 31, 2024[122] - As of March 31, 2024, the company had cash in excess of RM5,155,493, approximately $1,109,216, exceeding FDIC insured limits[125] - There are no potential dilutive securities outstanding for the six months period ended March 31, 2024, resulting in diluted loss per share being the same as basic loss per share[124] - The company has no off-balance sheet arrangements as of March 31, 2024[104]
Graphjet Technology(GTI) - 2024 Q1 - Quarterly Report