Xos(US:XOS)2024-11-14 17:33Financial Performance - Revenues for Q3 2024 were $15,790,000, a decrease of 5.4% compared to $16,696,000 in Q3 2023[19] - Gross profit for Q3 2024 was $2,864,000, compared to a gross profit of $1,985,000 in Q3 2023, indicating an improvement in profitability[19] - Total operating expenses decreased to $12,555,000 in Q3 2024 from $14,610,000 in Q3 2023, reflecting cost reduction efforts[19] - The net loss for Q3 2024 was $10,512,000, an improvement from a net loss of $14,107,000 in Q3 2023[19] - Total comprehensive loss for the three months ended September 30, 2023, was $(14,051) thousand, compared to $(10,512) thousand for the same period in 2024, indicating a decrease of 3,539 thousand[20] - Net loss per share (diluted) for the three months ended September 30, 2023, was $(2.40), while for the same period in 2024, it improved to $(1.32), reflecting a 45% reduction in loss per share[20] - The net and comprehensive loss for the three months ended September 30, 2024, was $(10,512) thousand, compared to $(14,051) thousand for the same period in 2023, indicating an improvement of 25%[23] - The total comprehensive loss for the nine months ended September 30, 2023, was $(61,277) thousand, while for the same period in 2024, it was $(31,178) thousand, reflecting a significant reduction of 49%[20] - The company reported a net loss of $(23,578) thousand for the six months ended June 30, 2023, which improved to $(9,663) thousand for the same period in 2024, indicating a 59% reduction in losses[23] - The net loss for the nine months ended September 30, 2024, was $31.2 million, compared to a net loss of $62.0 million for the same period in 2023, indicating a 49.7% improvement[25] Cash and Liquidity - Cash and cash equivalents decreased to $8,432,000 as of September 30, 2024, down from $11,640,000 at the end of 2023[18] - The company is focused on improving liquidity and working capital availability through operational cost reduction measures[6] - The company plans to continue raising capital through various strategies, including debt financing and equity financing, to support its operations and growth[40] - The company’s liquidity is critical as it continues to incur net losses and cash outflows while scaling operations to meet anticipated demand[37] - The company’s ability to access capital is uncertain, which raises substantial doubt about its ability to continue as a going concern[39] - As of September 30, 2024, the Company has substantial doubt about its ability to continue as a going concern for at least one year, unless it can collect on accounts receivable or obtain new capital[42] Assets and Liabilities - Accounts receivable increased significantly to $36,441,000 as of September 30, 2024, compared to $15,142,000 at the end of 2023, indicating potential growth in sales[18] - Inventories rose to $42,398,000 as of September 30, 2024, up from $37,843,000 at the end of 2023, suggesting increased production or stockpiling[18] - The company reported a total of $120,513,000 in assets as of September 30, 2024, compared to $93,684,000 at the end of 2023, reflecting overall growth[18] - The total stockholders' equity decreased from $57,560 thousand as of September 30, 2023, to $50,841 thousand by September 30, 2024, a decline of approximately 12%[23] - Other current liabilities increased to $21.31 million as of September 30, 2024, compared to $16.82 million as of December 31, 2023[73] - Other non-current liabilities rose to $18.94 million as of September 30, 2024, from $8.56 million as of December 31, 2023[74] Operational Performance - In Q3 2024, the company delivered 78 vehicles and 16 powertrains, a decrease from 104 vehicles and 1 powertrain in Q3 2023, representing a 25% decline in vehicle deliveries[171] - Revenue for Q3 2024 was $14.9 million, down from $16.0 million in Q3 2023, reflecting a 6.9% decrease, with 95% of revenue from vehicle and powertrain sales[171] - For the nine months ended September 30, 2024, the company delivered 216 vehicles and 30 powertrains, compared to 171 vehicles and 3 powertrains in the same period of 2023, marking a 26.4% increase in vehicle deliveries[173] - Revenue for the nine months ended September 30, 2024, was $41.5 million, up from $24.8 million in the same period of 2023, indicating a 67.9% increase, with 93% of revenue from vehicle and powertrain sales[173] Strategic Initiatives - Future growth strategies include the commercialization of new products and services, as well as potential market expansion and strategic partnerships[6] - The company acquired ElectraMeccanica on March 26, 2024, for a total consideration of 1,766,388 shares of Common Stock, supplemented by approximately $50.2 million in net cash[177] - The company implemented a reduction in workforce, terminating approximately 26% of its total workforce to improve liquidity and working capital[178] - Senior executives, including the CEO and COO, accepted temporary salary reductions of 20% to 50% effective October 28, 2024, as part of cost-cutting measures[179] Stock and Financing - The Company issued Convertible Debentures totaling $35.0 million, with $20.0 million sold on August 11, 2022, and an additional $15.0 million on September 21, 2022[83] - The Company entered into a note purchase agreement with Aljomaih Automotive Co. for a convertible promissory note of $20.0 million, maturing on August 11, 2025[41] - The Company recorded interest expense of $0 in relation to the Convertible Debentures during the three months ended September 30, 2024, compared to $0.2 million for the same period in 2023[96] - The Company recorded interest expense of $0.5 million related to the Note during the three months ended September 30, 2024, consistent with the same period in 2023[103] Market and Economic Conditions - Supply chain disruptions continue to impact the company, with ongoing shortages for specific components and increased shipping costs due to global economic conditions[183] - The stock price as of September 30, 2024, was $4.55, down from $7.98 on December 31, 2023, reflecting a decrease of 43.5%[162]