Financial Performance - The company incurred losses from operations in the first quarter of 2025, primarily due to discounted prices offered to customers to encourage utilization of the charging station [146]. - The company reported no revenue from the sale of battery systems and components for the three months ended March 31, 2025 [147]. - In Q1 2025, the company recognized charging revenue of approximately $1 thousand, a decrease of $3 thousand from $4 thousand in Q1 2024, attributed to reduced sales activity related to a pending acquisition [156]. - The total operating expenses for Q1 2025 were $2.539 million, down from $6.568 million in Q1 2024, reflecting a decrease of $4.029 million primarily due to reduced stock-based compensation and payroll expenses [155][160]. - The net loss for Q1 2025 was approximately $2.475 million, an improvement of $4.066 million compared to a net loss of $6.541 million in Q1 2024 [155]. - The company incurred net cash used in operating activities of $1.689 million in Q1 2025, a decrease from $3.487 million in Q1 2024 [166][168]. - The gross loss increased to $21 thousand in Q1 2025 from $17 thousand in Q1 2024, primarily driven by a decline in revenue and an increase in depreciation expense [158]. Funding and Financial Strategy - The company continues to seek additional funding through equity and/or debt financing arrangements to support operations and growth [144]. - The company raised $2.4 million through a PIPE Securities Purchase Agreement, net of offering costs, in December 2024 [150][164]. - The company is pursuing various funding options, including public markets, to address substantial doubt about its ability to continue as a going concern [165]. - The company plans to continue focusing on capital financing and managing cash position to optimize growth and profitability [154]. Mergers and Acquisitions - The company is pursuing a merger with Verde Bioresins, Inc., with the goal of creating long-term value and strengthening its financial profile [132]. - The merger agreement includes termination rights if the merger is not consummated by March 31, 2025 [133]. Compliance and Stock Performance - The company has not regained compliance with Nasdaq's minimum bid price requirement, leading to a suspension of its securities trading on Nasdaq CM [138]. - A reverse stock split of 1-for-20 was executed on March 31, 2025, to help meet Nasdaq listing requirements [135]. Product Development and Operations - As of March 31, 2024, the company successfully launched its first NxuOne™ megawatt charging station and produced multiple units ready for deployment [131]. - The company is focused on increasing profitability through the utilization of its NxuOne™ charging station network and competitive pricing strategies [146]. - Research and development expenses decreased from $0.4 million in Q1 2024 to nil in Q1 2025 due to a pause in development and cost-saving measures [159].
Nxu(NXU) - 2025 Q1 - Quarterly Report