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[161]. - 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[164]. - The company has incurred accumulated losses of approximately $36.0 million as of June 30, 2024, compared to $34.4 million as of December 31, 2023[166]. - Net cash used in operating activities for the six months ended June 30, 2024, was approximately $0.5 million, an increase from $0.4 million for the same period in 2023[170][171]. 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 of 2023, primarily due to share-based compensation expenses[160]. - 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 of 2023[163]. - The company anticipates an increase in general and administrative expenses as it launches production lines for its EVs[155]. - Minimal research and development expenses were incurred for the three and six months ended June 30, 2024, and 2023, recorded under general and administrative expenses[182]. Cash and Financing - As of June 30, 2024, the company's cash was approximately $0.9 million, primarily financed through loans and equity financing[165]. - Cash provided by financing activities for the six months ended June 30, 2024, was approximately $0.3 million, a decrease from $1.2 million in the same period of 2023[173]. - The company's working capital was approximately $(5.8) million as of June 30, 2024, down from $0.7 million as of December 31, 2023[166]. - The company is actively seeking private equity financing from outside investors to support its business plan and growth[168]. Business Development - The company completed a business combination on June 21, 2024, acquiring TP Holdings and changing its name to Thunder Power Holdings, Inc.[141]. - Following the business combination, the company issued 40 million shares of common stock and may issue up to an additional 20 million shares based on revenue performance targets through December 31, 2026[142]. - The company has committed to providing 20,000,000 shares of common stock as Earnout Shares, contingent on achieving specific revenue targets[174]. - The revenue condition for the first tranche of Earnout Shares requires sales of no less than $42.2 million for fiscal years ending from December 31, 2023, to December 31, 2025[175]. Product Development - The company has not generated any revenue from the sale of electric vehicles (EVs) as of June 30, 2024[153]. - The company has a phased development strategy featuring four EV models: Coupe, Sedan, City Car, and SUV, with no new models expected until at least 2030[149]. - The company is dependent on management's ability to execute its business plan to improve liquidity and generate positive cash flows[167].
Thunder Power Holdings, Inc.(AIEV) - 2024 Q2 - Quarterly Report