Revenue Generation - The company has not generated any revenue from EV sales as of September 30, 2024, and expects to generate revenue from the sale of EV models, technology licensing, and R&D services [160]. - The sales/revenue condition for the Earnout Shares was not met for the nine months ended September 30, 2024, indicating challenges in revenue generation [186]. Financial Performance - The net loss for the three months ended September 30, 2024, was approximately $0.9 million, compared to a net loss of $0.6 million for the same period in 2023 [168]. - The net loss for the nine months ended September 30, 2024, was approximately $2.5 million, compared to a net loss of $1.6 million for the same period in 2023 [172]. - Accumulated losses amounted to approximately $36.9 million and $34.4 million as of September 30, 2024, and December 31, 2023, respectively [174]. Expenses - General and administrative expenses for the three months ended September 30, 2024, were approximately $0.9 million, an increase from $0.6 million in the same period of 2023, primarily due to higher professional expenses [167]. - For the nine months ended September 30, 2024, general and administrative expenses were approximately $2.5 million, up from $1.6 million in 2023, driven by increased professional and share-based compensation expenses [171]. - The company incurred minimal research and development expenses for the three and nine months ended September 30, 2024, and 2023 [190]. Cash Flow and Financing - As of September 30, 2024, the company had cash of $33,636, primarily financed through loans from related parties and equity financing [173]. - Net cash used in operating activities for the nine months ended September 30, 2024, was approximately $0.9 million, compared to $0.6 million for the same period in 2023 [177][178]. - Cash provided by investing activities for the nine months ended September 30, 2024, was approximately $0.9 million, resulting from a reverse acquisition [179]. - Cash used in financing activities for the nine months ended September 30, 2024, was approximately $0.2 million, primarily due to subscription fees and borrowings [180]. - The company has a working capital of approximately $(6.6) million as of September 30, 2024, compared to $0.7 million as of December 31, 2023 [174]. - The company is actively seeking private equity financing from outside investors to support ongoing capital expenditures and working capital needs [176]. - The principal shareholder has committed to continue providing funds for working capital needs whenever necessary [175]. Business Operations - The company completed a business combination on June 21, 2024, acquiring all outstanding securities of TP Holdings in exchange for 40 million shares of common stock and potential earnout payments of up to 20 million shares [146][147]. - Following the business combination, the company's common stock began trading on the Nasdaq under the symbol "AIEV" on June 24, 2024 [149]. - The company is focused on developing four EV models: Coupe, Sedan, City Car, and SUV, with plans to leverage a modular integration concept to reduce costs and production time [144][145]. - The company anticipates significant capital requirements for operations, including expenses related to vehicle development, manufacturing, and general administrative costs [157]. Legal and Contingencies - The company is subject to loss contingencies, including legal proceedings and claims, which may impact financial results [187].
Thunder Power Holdings, Inc.(AIEV) - 2024 Q3 - Quarterly Report