Financial Performance - Graphjet Technology reported a net loss of $2,139,000 for the three months ended June 30, 2024, compared to a net loss of $433,000 for the same period in 2023, representing a 394% increase in losses [106]. - Total operating expenses increased to $2,133,000 for the three months ended June 30, 2024, up 400% from $427,000 in the same period in 2023 [106]. - General and administrative expenses increased from $427 in Q2 2023 to $2,133 in Q2 2024, a 400% increase [108]. - Net loss for Q2 2024 was $2,139, up from $433 in Q2 2023, representing a 394% increase [109]. - For the nine months ended June 30, 2024, general and administrative expenses rose to $14,139 from $1,411 in the same period of 2023, a 902% increase [113]. - The net loss for the nine months ended June 30, 2024 was $14,157, compared to $1,429 in the same period of 2023, an 891% increase [114]. - Cash used in operating activities for the nine months ended June 30, 2024 was approximately $4,346, compared to $217 in the same period of 2023, a variance of 1,903% [115]. - Cash used in investing activities during the nine months ended June 30, 2024 was approximately $1,272, while there were no investing activities in the same period of 2023 [119]. - Cash provided by financing activities for the nine months ended June 30, 2024 was $5,705, with no financing activities reported in the same period of 2023 [120]. - The company has incurred cumulative losses from operations totaling $17.4 million as of June 30, 2024 [127]. Production and Operations - The company plans to start production in August 2024, with an estimated output of 250 tons of graphite per month at full capacity [86]. - Graphjet Technology has not had any sales to date but intends to sample its products to multinational companies for market acceptance [85]. - The company has deferred plans to open its manufacturing plant in Kuantan due to challenging economic conditions [86]. - Graphjet Technology's production process utilizes palm kernel shells, which are currently facing price increases due to high demand [94]. - The qualification process for products typically takes 12 to 18 months, involving thorough testing and compliance checks [104]. Market and Strategic Positioning - Graphite pricing has declined following China's ban on graphite exports, which could adversely affect the company's financial condition [93]. - The company has a patent on its biomass process for graphite production and a pending patent for graphene, positioning it as a unique producer in the market [83]. - Graphjet Technology is actively diversifying its sourcing to mitigate risks associated with the US-China trade war and geopolitical tensions [96]. Financial Outlook - The company expects sufficient working capital for 9-12 months following the completion of the Business Combination and a $2,500,000 PIPE Investment [123]. - The company has no off-balance sheet arrangements as of June 30, 2024 [125].
Graphjet Technology(GTI) - 2024 Q2 - Quarterly Report