Xos(US:XOS)2025-05-15 17:29Financial Performance - Revenues for Q1 2025 were $5,879,000, a decrease of 55.4% compared to $13,162,000 in Q1 2024[24]. - Gross profit for Q1 2025 was $1,211,000, down 56.5% from $2,788,000 in Q1 2024[24]. - Net loss for Q1 2025 was $10,186,000, compared to a net loss of $11,003,000 in Q1 2024, representing a 7.4% improvement[24]. - Operating expenses for Q1 2025 totaled $10,480,000, down 19.5% from $13,031,000 in Q1 2024[24]. - The company reported a basic net loss per share of $1.26 for Q1 2025, an improvement from $1.80 in Q1 2024[24]. - Total revenues for the three months ended March 31, 2025, were $5,879,000, a decrease of 55% compared to $13,162,000 for the same period in 2024[69]. - Vehicle sales accounted for $3,600,000 (61% of total revenue) in Q1 2025, down from $11,600,000 (88% of total revenue) in Q1 2024, reflecting a significant decline in deliveries[162]. - The company delivered 22 vehicles in Q1 2025, compared to 60 vehicles in Q1 2024, primarily due to delays in executing sales orders[162]. - The net loss for Q1 2025 was $10.2 million, compared to a net loss of $11.0 million in Q1 2024, reflecting a decrease of $0.8 million or 7%[189]. - Revenues decreased by $7.3 million, or 55%, from $13.2 million in Q1 2024 to $5.9 million in Q1 2025, primarily due to a decrease in unit sales and average selling price[190]. Assets and Liabilities - Total current assets decreased to $73,089,000 as of March 31, 2025, from $82,301,000 as of December 31, 2024, a decline of 11.1%[21]. - Total liabilities decreased to $62,874,000 as of March 31, 2025, from $64,723,000 as of December 31, 2024, a reduction of 2.6%[21]. - Cash and cash equivalents at the end of Q1 2025 were $4,758,000, down from $10,996,000 at the end of Q4 2024, a decrease of 56.7%[21]. - As of March 31, 2025, accounts receivable totaled $22.2 million, net of an allowance of $0.3 million[61]. - Inventory as of March 31, 2025, was $38,006,000, an increase from $36,567,000 as of December 31, 2024[81]. - Other current liabilities increased to $18,878,000 as of March 31, 2025, compared to $17,768,000 as of December 31, 2024[88]. - As of March 31, 2025, total other non-current liabilities amounted to $17.325 million, a decrease from $17.933 million as of December 31, 2024, reflecting a reduction of approximately 3.4%[91]. Cash Flow - The Company reported negative cash flow from operating activities of $4.8 million for the three months ended March 31, 2025, compared to $14.6 million for the same period in 2024[42]. - The net cash used in operating activities was $4.8 million for Q1 2025, compared to $14.6 million for Q1 2024[209]. - Net cash provided by investing activities was $0 for Q1 2025, down from $51.3 million in Q1 2024 due to the acquisition of ElectraMeccanica[213]. - Net cash used in financing activities was $1.5 million for Q1 2025, primarily related to short-term insurance financing and equipment lease principal payments[214]. Acquisitions and Investments - The Company acquired ElectraMeccanica Vehicles Corp. on March 26, 2024, converting each ElectraMeccanica Share into 0.0143739 of a share of the Company's Common Stock, totaling 1,766,388 shares[36]. - As of March 31, 2025, the Company's cash and cash equivalents totaled $4.8 million, reflecting the acquisition of ElectraMeccanica[42]. - The total identifiable assets acquired from ElectraMeccanica amounted to $54,630,000, while total liabilities assumed were $19,042,000, resulting in net assets acquired of $35,588,000[73]. - The acquisition of ElectraMeccanica on March 26, 2024, involved the issuance of 1,766,388 shares of Xos Common Stock, resulting in Xos stockholders owning approximately 79% of the combined entity[72]. Operational Challenges - The Company is experiencing ongoing supply chain disruptions, particularly in power electronics and harnesses, impacting its ability to source inventory[49]. - The Company has significant reliance on single-source suppliers, which poses a risk to its operations and financial condition[62]. - The company is subject to ongoing supply chain disruptions and is actively working with vendors to find alternative solutions[173]. - The company is continuing efforts to find more cost-effective vendors and sources of parts to lower overall production costs[183]. Future Outlook and Strategies - The company is focused on expanding its fleet electrification solutions and charging infrastructure to support electric vehicle fleets[33]. - The company expects future revenue growth to be supported by the increasing demand for e-commerce and last-mile delivery solutions, influenced by regulatory and consumer interest in sustainability[163][164]. - The company plans to raise additional capital through various strategies, including debt financing and equity financing, to support its operations[44]. - The company plans to continue seeking opportunities to reduce costs and cash expenditures to address liquidity and working capital needs[167]. Stock and Equity - The Company issued a convertible promissory note with a principal amount of $20.0 million, maturing on August 11, 2025, bearing an interest rate of 10.0% per annum[97][98]. - The Company entered into a Standby Equity Purchase Agreement allowing it to sell up to $125.0 million of Common Stock until February 11, 2026, with $119.4 million remaining available under the agreement as of March 31, 2025[108][113]. - The Company has a contingent obligation to issue 547,000 shares of Common Stock upon achieving certain market share price milestones, with specific tranches based on the volume-weighted average closing share price[92]. - As of March 31, 2025, the Company had 18,633,301 Public Warrants and 199,997 Private Placement Warrants outstanding, with fair values of $0.2 million and $2,000, respectively[114]. Tax and Compliance - The Company recognized stock-based compensation expense totaling approximately $1.5 million for the three months ended March 31, 2025, compared to $2.0 million for the same period in 2024[132]. - The Company's effective tax rate for the three months ended March 31, 2025, was (0.12)%, lower than the statutory tax rate of 21% due to state taxes and losses not benefited[140]. - The Company reported a net asset position in deferred income taxes at March 31, 2025, primarily due to deferred tax assets from net operating losses[143]. - The company is evaluating the impact of new accounting standards effective after December 15, 2024, which will require additional income tax disclosures[67].