PONO CAPITAL(US:PONO)2023-08-21 21:07Financial Performance - Total revenues decreased by $1,476,365, or 76.3%, to $457,753 for the six months ended June 30, 2023, compared to $1,934,118 for the same period in 2022, primarily due to a decrease in sales from the shared computing business [150]. - Total revenues decreased by $295,468, or 92.0%, to $25,703 for the three months ended June 30, 2023, from $321,171 for the same period in 2022, primarily due to a decrease in sales from the shared computing business [164]. - Net loss for the six months ended June 30, 2023, was $18,376,366, compared to a net loss of $6,548,417 for the same period in 2022, representing an increase in losses of 180.6% [149]. - Net loss from continuing operations was $10,737,846 for the three months ended June 30, 2023, representing a $7,368,030 or 218.6% increase from a net loss of $3,369,816 for the same period in 2022 [163]. - The company reported a net loss of $19,222,865 for the six months ended June 30, 2023, compared to a net loss of $7,227,936 for the same period in 2022 [200]. Cost and Expenses - Cost of revenue for the six months ended June 30, 2023, was $600,280, representing 131.1% of revenue, compared to $2,047,280, or 105.9% of revenue, for the same period in 2022, indicating a significant increase in costs relative to revenue [148]. - Total operating expenses increased by $9,701,502, or 133.5%, to $16,967,208 for the six months ended June 30, 2023, compared to $7,265,706 for the same period in 2022 [149]. - Total operating expenses increased by $5,265,551, or 141.2%, to $8,993,500 for the three months ended June 30, 2023, from $3,727,949 for the same period in 2022 [167]. - General and administrative expenses increased by $2,752,847, or 188.2%, to $4,215,208 for the three months ended June 30, 2023, from $1,462,361 for the same period in 2022, primarily due to share-based payments and consulting fees related to the business combination with Pono [170]. - Research and development expenses rose by $2,311,294, or 51.5%, to $6,795,396 for the six months ended June 30, 2023, compared to $4,484,102 for the same period in 2022, highlighting a focus on innovation [149]. - Research and development expenses increased by $2,542,836, or 115.1%, to $4,751,800 for the three months ended June 30, 2023, from $2,208,964 for the same period in 2022, driven by a significant rise in raw materials costs [172]. Cash Flow and Financing - As of June 30, 2023, cash was $35,359, down from $1,278,026 as of December 31, 2022, and accounts receivable was $159,278, down from $980,688 [178]. - The company reported a working capital deficit of $6,037,574 as of June 30, 2023 [178]. - The company plans to raise additional funds through debt or equity offerings to support operations and growth strategies [182]. - The company sold two Convertible Notes totaling $4,200,000 for an aggregate purchase price of $3,500,000, along with warrants to purchase 3,921,129 shares of common stock [179]. - Net cash used in operating activities was $8,186,637 for the six months ended June 30, 2023, slightly improved from $8,330,984 in the prior year [194]. - Net cash provided by financing activities amounted to $5,256,096 for the six months ended June 30, 2023, an increase from $2,892,417 in the same period of 2022 [197]. Market and Product Development - The XTURISMO LTD EDITION is priced at 77.7 million yen ($550,000 USD) per unit, with a production limit of 200 units due to high costs associated with custom parts [139]. - The autonomous vehicle services market is projected to grow from $1.1 billion in 2019 to $202.5 billion in 2030, at a CAGR of 60.1%, indicating significant market opportunities for air mobility solutions [137]. - The company aims to establish a profitable structure for mass production of hovercrafts using a fabless model, focusing on design and supply chain control [145]. - The company has completed its first manned flight test of the XTURISMO LTD EDITION prototype, with plans to enhance safety features and develop new models, including unmanned and hydrogen-based versions [138]. Other Financial Information - Total other income, net, decreased by $1,967,293, or 425.0%, from $462,924 of income for the three months ended June 30, 2022, to $1,504,369 of expenses for the three months ended June 30, 2023 [174]. - The company incurred a net loss from continuing operations of $18,376,366 and an accumulated deficit of $65,695,768 as of June 30, 2023, raising substantial doubt about its ability to continue as a going concern [181]. - The company has a history of operating losses and has not yet achieved profitable operations, expecting to incur further losses [179]. - The company’s cash flow from investing activities was negative at $56,943 for the six months ended June 30, 2023, compared to a positive cash flow of $455,206 in the same period of 2022 [194]. - The company’s long-term debt includes loans from banks and other financial institutions, with a balance of $3,002,699 as of June 30, 2023 [201]. - Future minimum loan payments total $3,045,886 as of June 30, 2023, with the largest payment of $2,049,191 due in 2025 [202]. - The company has future minimum lease payments of $477,404 under operating leases as of June 30, 2023 [199]. - No applicable market risk disclosures were provided in the earnings call [218].