Revenue Generation - The company has not generated any revenue from EV sales and expects to generate revenue from the sale of its EV models, technology licensing, and R&D services [157]. - The company did not meet the sales/revenue condition for the year 2024, which was set at no less than $42.2 million for the first tranche of Earnout Shares [178]. - The Earnout Shares include 5 million shares for the first tranche and 15 million shares for the second tranche, contingent on achieving specific revenue targets by December 31, 2025 [176]. Financial Performance - For the three months ended March 31, 2025, the company incurred a net loss of approximately $0.8 million, compared to a net loss of $0.2 million for the same period in 2024 [165]. - The company has incurred significant operating losses since inception and continues to face challenges in generating sufficient revenue to cover operational costs [166]. - For the three months ended March 31, 2025, the net cash used in operating activities was approximately $0.6 million, compared to $0.2 million for the same period in 2024, indicating a significant increase in cash outflow [170]. Expenses - General and administrative expenses increased to approximately $0.8 million for the three months ended March 31, 2025, primarily due to a $0.4 million rise in professional expenses related to being a publicly traded company [164]. - Minimal research and development expenses were incurred for the three months ended March 31, 2025, and 2024, recorded under general and administrative expenses [180]. Cash and Liquidity - The company’s cash balance as of March 31, 2025, was $19,812, highlighting liquidity challenges [166]. - The cash at the end of the period for March 31, 2025, was $19,812, a decrease from $28,466 at the end of March 31, 2024 [169]. - The company’s cash at the beginning of the period for March 31, 2025, was $52,616, down from $196,907 at the beginning of March 31, 2024 [169]. Business Developments - The company completed a business combination with Feutune Light Acquisition Corporation on June 21, 2024, resulting in the issuance of 40 million shares of common stock and potential earn-out payments of up to 20 million shares based on revenue performance targets [144]. - The company plans to acquire approximately 30.8% of Electric Power Technology Limited through a share exchange agreement, which is subject to regulatory approvals and shareholder consent [148]. - The company has four EV models in phased development: Coupe, Sedan, City Car, and SUV, with no new models expected to be introduced until at least 2030 [153]. Financial Challenges - The company is facing significant uncertainties regarding its ability to continue as a going concern, including ongoing operating losses and a suspension of trading on Nasdaq since April 21, 2025 [166][168]. - The company is exploring new financing options and evaluating business restructuring to address financial uncertainties [167]. - The company is subject to loss contingencies, including legal proceedings, and records liabilities when unfavorable outcomes are probable [178]. Investment Activities - The company reported cash used in investing activities of $1,400 for the three months ended March 31, 2025, which was allocated to the purchase of short-term investments [171]. - Cash provided by financing activities for the three months ended March 31, 2025, was approximately $0.6 million, primarily from borrowings from the controlling shareholder and family members [173]. Financial Instruments - The company has not entered into any financial guarantees or derivative contracts that would affect its financial obligations [179].
Thunder Power Holdings, Inc.(AIEV) - 2025 Q1 - Quarterly Report