Financial Performance - The company reported a net loss of $65.4 million and $57.7 million for the years ended December 31, 2024, and December 31, 2023, respectively, with an accumulated deficit of $461.8 million as of December 31, 2024[38]. - The company reported substantial doubt about its ability to continue as a going concern, needing additional capital to support planned product development and operations[78]. - Estimated cash and cash equivalents as of the issuance date of the consolidated financial statements are insufficient to fund operating, investing, and financing cash flow needs for the next twelve months[78]. - The company expects significant losses and negative cash flow as it works to expand market share and incurs additional costs for product development and commercialization[83]. - The company has a limited history of commercial operations, making it difficult to accurately forecast revenues and earnings[84]. - The company incurred net losses of $65.4 million and $57.7 million for the years ended December 31, 2024, and 2023, respectively, with an accumulated deficit of $461.8 million as of December 31, 2024[81]. Market and Industry Insights - The overall beauty and personal care market is projected to grow at a compound annual growth rate (CAGR) of 7.7% to reach $973 billion by 2030[41]. - The global silicone market within the beauty and personal care sector is estimated to be between $16.7 billion and $19.9 billion, with the silicone elastomers subsector representing a market of $6.3 billion to $10.0 billion[43]. - The company is positioned to capture the market shift towards sustainable ingredients, although silicone elastomers are expected to remain the primary ingredient for the foreseeable future[66]. - The company may face substantial competition in the cosmetic ingredients segment, which could impact market share and financial performance[114]. Product Development and Technology - The Vegan Silk Technology Platform includes b-silk and xl-silk, which are fully biodegradable and have been in the market since 2019, supported by a patent portfolio of 68 granted patents and 166 pending applications[36][62]. - The Vegan Silk Technology Platform is designed to replace silicone elastomers, offering a wider range of potential claims as a functional cosmetic ingredient[44][46]. - The company has developed additional offerings from the Vegan Silk Technology Platform, including xl-silk, in response to customer needs for enhanced solubility and binding[57]. - The company is focused on developing and selling offerings from its Vegan Silk Technology Platform, which includes products like b-silk and xl-silk[65]. Operational Challenges - The company faces challenges in achieving market acceptance for its Vegan Silk Technology Platform products, which depend on factors such as public perception and regulatory approvals[93]. - The company relies on a single manufacturing partner, Laurus Bio, for the production of its products, which poses risks related to supply chain stability and production capacity[95]. - The company must increase production volumes to achieve economies of scale and reduce per-unit production costs, but may face challenges in selling output timely[112]. - The company faces significant risks in scaling up production due to potential delays and complications in manufacturing processes, which could adversely affect supply and gross margins[117]. Intellectual Property and Compliance - The company aims to protect its intellectual property through various means, including patents, trademarks, and trade secrets[63]. - Patent protection is critical for the company's competitive position, with current patents set to expire between 2034 and 2044, which may affect future revenue generation[132]. - The company may face challenges in defending its intellectual property rights, which could lead to costly litigation and impact its ability to commercialize products[135]. - The company is required to comply with various federal, state, and international laws and regulations, including those from the FDA and FTC, regarding its products[68]. Human Resources and Management - As of December 31, 2024, the company had 13 full-time employees in the United States and one in Canada, with a total of eight consultants[72]. - The management team has limited experience in operating a public company, which may impact the company's ability to meet regulatory obligations and manage investor relations effectively[121]. - The company relies on key personnel for its success, and the inability to attract or retain skilled employees may have a material adverse effect on its operations[120]. Financial Instruments and Market Conditions - The company has 9,583,265 Public Warrants, 5,000,000 Sponsor Warrants, and 3,000,000 Triton Warrants outstanding, all exercisable for shares of Common stock at exercise prices of $11.50, $0.50, and $0.50 respectively[157]. - The company may redeem outstanding Public Warrants at a price of $0.01 per warrant if the last reported sales price of Common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period[160]. - The market price of Common stock has been volatile and may decline regardless of the company's operating performance, potentially leading to losses for investors[167]. - The company has filed a registration statement covering the resale of up to 28,319,770 shares of Common stock, which could significantly impact the market price of its securities[177]. Regulatory and Compliance Issues - The company received a letter from Nasdaq on November 6, 2024, indicating that the closing bid price for its Common stock was below the minimum required share price for continued listing[185]. - The company has until May 5, 2025, to regain compliance with the Minimum Bid Price Requirement, which requires the closing bid price to be at least $1.00 for a minimum of 10 consecutive business days[186]. - The company also received notifications on February 10, 2025, regarding non-compliance with the minimum $50 million value of listed securities and the $15 million market value of publicly held shares, with a compliance deadline of August 11, 2025[227]. Cybersecurity and Risk Management - The company has developed a cybersecurity risk management program to protect its critical systems and information[202]. - The Board of Directors considers cybersecurity risk as part of its risk oversight function, delegating oversight to the Audit Committee[206]. - The Audit Committee receives periodic reports from management regarding cybersecurity risks and significant incidents[207]. - Cybersecurity risks are heightened due to the company's remote-first operational model, potentially exposing it to data or financial loss[144].
Bolt Projects Holdings, Inc.(BSLK) - 2024 Q4 - Annual Report