Financial Performance - The company has not generated any revenue from EV sales, with a net loss of approximately $2.5 million for the year ended December 31, 2024, compared to a net loss of $1.8 million in 2023[342][344]. - General and administrative expenses increased to approximately $2.5 million in 2024 from $1.8 million in 2023, primarily due to a rise in professional expenses and share-based compensation[343]. - As of December 31, 2024, the company had accumulated losses of approximately $36.9 million, up from $34.4 million in 2023[347]. - The company has a negative working capital of $6.6 million as of December 31, 2024, compared to a working capital of approximately $0.7 million in 2023[347]. Cash Flow - The company incurred net cash used in operating activities of approximately $1.2 million for the year ended December 31, 2024, compared to $0.7 million in 2023[347][350]. - For the year ended December 31, 2024, net cash used in operating activities was approximately $1.2 million, primarily due to a net loss of approximately $2.5 million[351]. - For the year ended December 31, 2023, net cash used in operating activities was approximately $0.7 million, primarily due to a net loss of approximately $1.8 million[352]. - Cash provided by investing activities for the year ended December 31, 2024 was approximately $0.9 million from the reverse acquisition closed in June 2024[353]. - Cash provided by financing activities for the year ended December 31, 2024 was approximately $0.2 million, primarily from subscription fees of $0.4 million and borrowings of approximately $1.0 million[355]. - Cash provided by financing activities for the year ended December 31, 2023 was approximately $0.6 million, primarily from subscription fees of approximately $1.8 million[356]. Business Developments - The company entered into a Share Exchange Agreement to acquire approximately 30.8% of Electric Power Technology Limited, subject to regulatory approvals, with the closing expected by October 31, 2025[328][329]. - The company completed a business combination with Feutune Light Acquisition Corporation on June 21, 2024, and began trading on Nasdaq under the symbol "AIEV" on June 24, 2024[324][326]. - The company has four EV models in phased development: Coupe, Sedan, City Car, and SUV, targeting both practical and luxury EV consumers[322][323]. - The company expects to generate future revenue from the sale of EV models, technology licensing, and research and development services[336]. - The company is actively seeking private equity financing to support ongoing capital expenditures and working capital needs[349]. Equity and Compensation - The company has committed to releasing 5,000,000 Earnout Shares if sales/revenues reach no less than $42,200,000 for fiscal years ending from December 31, 2023 to December 31, 2025[358]. - An additional 15,000,000 Earnout Shares will be vested if sales/revenues reach no less than $415,000,000 for fiscal years ending from December 31, 2023 to December 31, 2026[358]. - The Earnout Shares are classified as equity financial instruments and measured at fair value of $2.56 per share on the grant date[359]. Research and Development - Minimal research and development expenses were incurred for the years ended December 31, 2024 and 2023, recorded in general and administrative expenses[363]. - The company has not entered into any financial guarantees or derivative contracts that are not reflected in its consolidated financial statements[362].
Feutune Light Acquisition (FLFV) - 2024 Q4 - Annual Report