Financial Performance - Revenue for Q1 2025 was $736,049, a decrease of 29% from $1,033,548 in Q1 2024[133] - Cost of goods sold for Q1 2025 was $781,383, down from $1,621,580 in Q1 2024, resulting in a gross margin loss of $45,334[132][134] - Operating expenses totaled $2,461,137 in Q1 2025, a reduction from $3,656,303 in Q1 2024, primarily due to lower sales and marketing and product development costs[132] - Net loss for Q1 2025 was $2,460,430, significantly improved from a net loss of $26,048,044 in Q1 2024[132] - Cash provided by financing activities in Q1 2025 was $19.1 million, mainly from the sale of common stock and prefunded warrant units[155] - As of March 31, 2025, the company had cash and cash equivalents of $17.7 million, with working capital of $16.4 million[151] - Net loss for Q1 2025 was $2,460,430, a significant reduction from the net loss of $26,048,044 in Q1 2024[150] - The company has incurred an accumulated deficit of $168.8 million since inception, raising concerns about its ability to continue as a going concern[156] Sales and Distribution - The company sold Grunt EVOs generating $304,905 in revenue, while Brats contributed $99,458 in Q1 2025[133] - The company has entered a distribution agreement with Super Sonic Company Ltd. to supply golf carts in the U.S.[115] - The company signed a five-year agreement to distribute the VLCN HF1 utility UTV model in North America, with royalties starting in the third year[122] - As of May 5, 2025, the company has 129 active powersports dealers, 20 active bicycle dealers, and 14 golf cart dealers[127] - The company has agreements with six importers in Latin America and plans to expand global sales of its vehicles and accessories in 2025[129] Product Development - The company is developing a new electric motorcycle model, with prototypes received in February 2025 and expected sales in the second half of 2025[117] - The company anticipates an increase in sales expenses in 2025 due to the expansion of international distributors and new product launches[140] - The company expects product costs to rise in 2025 due to increased sales and tariffs, with potential savings if parts can be sourced at lower costs[136] Historical Financial Data - Cost of goods sold for Q1 2024 was $1,621,580, with product costs including $343,981 for Grunt EVOs and $582,550 for Brats[135] - Sales and marketing expenses for Q1 2024 were $760,564, including $453,191 in employee payroll costs and $215,429 for product promotion[139] - General and administrative expenses for Q1 2024 totaled $2,080,794, primarily driven by employee payroll costs of $579,363 and insurance costs of $662,927[146] - Product development expenses for Q1 2024 were $814,945, including $436,902 in employee payroll costs and $91,925 for prototype costs[142]
Volcon(VLCN) - 2025 Q1 - Quarterly Report