Financial Performance - For the three months ended September 30, 2024, the company reported net sales of $0, compared to $1,315 for the same period in 2023[262]. - The net loss for the three months ended September 30, 2024, was $6,636,679, compared to a net loss of $1,437,494 for the same period in 2023[262]. - For the nine months ended September 30, 2024, the company reported a net loss of $14,384,526, compared to a net loss of $4,211,621 for the same period in 2023[266]. - Cash used in operating activities for the nine months ended September 30, 2024, was $5,677,192, primarily due to the net loss and non-cash adjustments[270]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, increased by $2,753,106, totaling $4,193,006, primarily due to third-party validation testing and administrative costs[264]. Financing Activities - The company generated cash of $7,056,000 from financing activities for the nine months ended September 30, 2024, primarily from private placement financing[274]. - The company received net proceeds from the merger totaling $17,555, which will be used for corporate growth strategies related to battery technology commercialization[247]. - The company entered into a private placement transaction on March 13, 2024, generating gross proceeds of $3,850,000[248]. Assets and Liabilities - As of September 30, 2024, the company had an accumulated deficit of $104,336,032[277]. - As of September 30, 2024, the company's total contractual obligations amount to $3,548,360, with short-term notes payable being the largest component at $1,953,335[281]. - The company has no long-term debt, capital lease obligations, or long-term liabilities as of September 30, 2024[282]. - The company has no obligations, assets, or liabilities considered off-balance sheet arrangements as of September 30, 2024[278]. Patents and Technology - The company holds a portfolio of over 550 patents, focusing on advanced battery technologies, including silicon anodes and lithium-sulfur technologies[244]. Accounting Estimates - The company considers its accounting estimates critical if they involve highly uncertain assumptions and could materially impact financial results[284]. - The company has identified critical accounting estimates that could affect its financial condition or results of operations[283]. - The fair value of the forward purchase agreement (FPA) is classified as Level 3, requiring significant estimates and judgments for valuation[287]. - The company does not expect the adoption of ASU 2023-09 to have a material impact on its financial statements and disclosures[289]. - The company anticipates that the amendments from ASU 2023-07 will not materially impact its financial statements or disclosures[290]. Debt and Commitments - The company has not entered into any off-balance sheet financing arrangements or established any special purpose entities[279]. - The company has not guaranteed any debt or commitments of other entities[279].
Nubia Brand International (NUBI) - 2024 Q3 - Quarterly Report