Golden Arrow Merger (GAMC) - 2025 Q2 - Quarterly Results

Introduction Bolt Projects Holdings, Inc. (Nasdaq: BSLK) develops biomaterials for the beauty and personal care industry, reporting Q2 2025 financial results Company Overview Bolt Projects Holdings, Inc. (Nasdaq: BSLK) is a biomaterials developer for the beauty and personal care industry, reporting Q2 2025 financial results - Bolt Projects Holdings, Inc. (Nasdaq: BSLK) is a developer of biomaterials for the beauty and personal care industry[2] CEO Statement and Highlights CEO Dan Widmaier highlighted growing Vegan Silk™ demand, leading to positive gross margins ahead of estimates due to pricing discipline and anticipated cost reductions, emphasizing the platform's high-performance, sustainable benefits - Demand for Vegan Silk™ continues to grow, resulting in positive gross margins a quarter ahead of estimate[3] - Pricing discipline helped achieve profitability on material from the last campaign, even before expected cost reductions[3] - The Vegan Silk Technology Platform delivers high-performance, sustainable benefits that meet customer needs and supports long-term growth[3] Business & Market Traction Bolt secured a major beauty conglomerate partner and expanded existing customer relationships, with Vegan Silk Technology Platform revenues growing significantly Vegan Silk™ Demand & Customer Expansion Bolt secured its first brand partner from a major beauty conglomerate and expanded existing customer relationships, with Vegan Silk Technology Platform revenues growing twenty-three-fold year-over-year to $1.3 million in Q2 2025 - Secured its first brand partner from one of the seven major beauty conglomerates[3] Vegan Silk Technology Platform Revenues | Metric | Q2 2025 | YoY Growth | | :----- | :------ | :--------- | | Vegan Silk Technology Platform revenues | $1.3 million | 23x | Key Partnerships & Product Launches Bolt supported Goddess Maintenance Company's 'Restorative Leave-In Hair Mask' launch and anticipates a global skincare brand's Vegan Silk™ product launch in 2026 - Supported the launch of Goddess Maintenance Company's 'Restorative Leave-In Hair Mask' formulated with the 'Goddess Molecule'[4] - A global skincare brand owned by one of the top seven beauty conglomerates plans to launch its first product featuring Bolt's Vegan Silk™ in 2026[6] - Goddess Maintenance Company is expanding international distribution, with plans to reach over 100+ markets by October 2025[7] Demand Drivers & Commercial Potential President Cintia Nardi identified reformulation pressure, changing consumer expectations, and stricter regulations as key demand drivers, fueling partnerships and underscoring Bolt's long-term commercial potential - Three demand drivers for growth: pressure to reformulate, changing consumer expectations, and stricter rules on silicones and microplastics[8] - Vegan Silk™ offers a high-performance, sustainable alternative that helps brands future-proof their products[8] - Breaking into the top seven beauty conglomerates for the first time is a major milestone, giving confidence in Bolt's long-term commercial potential[8] Operational & R&D Bolt is scaling production, optimizing processes for cost reduction, and expanding its IP portfolio to maintain a competitive edge Operational Scalability & Supply Chain Bolt is scaling production and optimizing processes with its manufacturing partner to reduce costs and expand gross margins, targeting double-digit manufacturing cost reductions in H2 2025 to offer sustainable, competitive pricing - Continued to scale production in 2025 to meet rising demand through process optimization with its manufacturing partner[9] - Expects double-digit manufacturing cost reductions in the second half of 2025[10] - A core part of the model is passing some savings to customers to offer sustainable, competitive pricing, supporting growth and volume expansion[10] Research and Development & IP Portfolio Research and Development remains central to Bolt's progress, with 5 new patents added in Q2 2025, bringing the total to 77 granted and 118 pending, enabling novel molecule creation and proprietary claims - Added 5 new patents in Q2 2025[11] Intellectual Property Metrics | IP Metric | Count (as of June 30, 2025) | | :-------- | :-------------------------- | | Granted Patents | 77 | | Pending Patent Applications | 118 | - Biotech expertise and growing IP portfolio allow for the creation of novel molecules that improve performance and enable proprietary claims[12] Corporate Milestones Bolt achieved several key corporate developments, including securing a non-binding term sheet for up to $20 million in financing, appointing two new independent directors, and agreeing to convert $1.7 million in vendor payables to equity, all subject to necessary approvals - Entered into a non-binding term sheet with Ascent Partners LLC for up to $20 million of financing in preferred stock and an equity line of credit[5][17] - Appointed Gail Zauder and Lorne Lucree as new independent directors to its Board, effective July 11, 2025[17] - Reached an agreement with Southern Point Capital to convert $1.7 million in vendor payables to equity, subject to court and shareholder approval[17] Financial Results for Q2 2025 Bolt reported significant revenue growth, positive gross margin, and reduced net loss in Q2 2025, reflecting operational improvements and cost management Revenues Revenues for Q2 2025 were approximately $1.3 million, a substantial increase from $56 thousand in Q2 2024, primarily driven by ongoing shipments and reorders Revenues Overview | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Revenues | $1.3 million | $56 thousand | +2214% | - Revenue growth was driven by ongoing shipments to Goddess Maintenance Company and reorders from prior launches[14] Cost of Revenues & Gross Margin Cost of revenues was approximately $1.2 million in Q2 2025, compared to $85 thousand in Q2 2024, with the company achieving a positive gross margin due to cost reductions and pricing discipline Cost of Revenues and Gross Income (Loss) | Metric | Q2 2025 | Q2 2024 | | :----- | :------ | :------ | | Cost of Revenues | $1.2 million | $85 thousand | | Gross Income (Loss) | $62 thousand | ($29) thousand | - Achieved a positive gross margin in Q2 2025, reflecting continued success in reducing material costs and ongoing pricing discipline[15] Operating Expenses Operating expenses decreased to approximately $4.9 million in Q2 2025 from $9.6 million in Q2 2024, primarily due to lower R&D consulting costs and absence of bridge note issuance costs, partially offset by higher personnel costs and expanded brand activity Total Operating Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Operating Expenses | $4.9 million | $9.6 million | -49% | - Research & Development decreases were driven by lower consulting costs, partially offset by higher personnel costs to support new material (xl-silk™) and cosmetic active claims (b-silk™)[16] - Sales & Marketing increases were driven by personnel and expanded brand activity, including trade shows and digital platforms[18] Loss from Operations & Net Loss Loss from operations decreased to approximately $4.8 million in Q2 2025 from $9.6 million in Q2 2024, with net loss significantly decreasing to $4.6 million from $58.9 million year-over-year, primarily due to the absence of bridge note issuance costs and decreased remeasurement losses Loss from Operations and Net Loss | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Loss from Operations | $4.8 million | $9.6 million | -50% | | Net Loss | $4.6 million | $58.9 million | -92% | - Loss from operations decreased primarily due to the absence of bridge note issuance costs in 2025[19] - Net loss decreased significantly year-over-year due to loss on extinguishment of convertible notes in Q2 2024 and decreased remeasurement losses on Bolt's shared-based liabilities in Q2 2025[19] Adjusted EBITDA Adjusted EBITDA was approximately ($3.3) million in Q2 2025, compared to ($2.6) million for Q2 2024, indicating a larger adjusted loss Adjusted EBITDA Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------- | :------------ | :------------ | :--------- | | Adjusted EBITDA | ($3.3) million | ($2.6) million | -27% (larger loss) | Net Loss per Share Basic and diluted net loss per share significantly improved to ($2.20) for Q2 2025, compared to ($252.21) for Q2 2024 Net Loss per Share | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------- | :------ | :------ | :--------- | | Net Loss per Share (Basic & Diluted) | ($2.20) | ($252.21) | +99% (smaller loss) | Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents were $1.0 million, roughly flat with the prior quarter but down from $3.5 million as of December 31, 2024, with management expecting existing cash to fund operations until anticipated financing is completed in Q3 2025 Cash and Cash Equivalents | Metric | June 30, 2025 | Dec 31, 2024 | | :-------------------- | :------------ | :----------- | | Cash and cash equivalents | $1.0 million | $3.5 million | - Management believes existing cash resources will be sufficient to fund planned operations until anticipated financing activities are completed in the third quarter of 2025[21] Financial Outlook Bolt projects revenues of at least $4.5 million in 2025 and $9.0 million in 2026, initiating gross profit guidance of $0.5 million for 2025 and $1.0 million for 2026 Financial Guidance | Metric | 2025 Guidance | 2026 Guidance | | :----------- | :------------ | :------------ | | Revenues | At least $4.5 million | At least $9.0 million | | Gross Profit | $0.5 million | $1.0 million | Nasdaq Listing Status On August 12, 2025, Bolt received a notice of determination of delisting from Nasdaq and intends to appeal this decision, requesting a stay of suspension to remain trading pending the hearing where it plans to present a compliance plan - Received a notice of determination of delisting from the Nasdaq on August 12, 2025[23] - Intends to submit a hearing request to appeal the delisting determination and request a stay of the suspension to remain trading pending the hearing[23] - The company intends to present a compliance plan at the hearing, but there can be no assurance that the request for continued listing will be granted[23] Forward-Looking Statements The press release contains forward-looking statements, subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially, including the company's ability to continue as a going concern, generate sufficient cash, meet Nasdaq listing requirements, and execute its business plan - Statements regarding financial outlook, cash runway, growth objectives, operational efficiencies, product launches, market potential, business strategy, and financing are forward-looking[24] - Important factors that could cause actual results to differ include substantial doubt as to the Company's ability to continue as a going concern, history of net losses, ability to generate sufficient cash, and meeting Nasdaq listing requirements[25] - Other risks include dependence on Vegan Silk Technology Platform products, reliance on single or limited manufacturing partners, pricing and availability issues, market acceptance, and intellectual property protection[25][26] Non-GAAP Financial Measures Bolt utilizes non-GAAP financial measures like EBITDA, Adjusted EBITDA, and free cash flow as internal performance indicators and for benchmarking, considering them valuable for understanding underlying operating performance by excluding items not correlated with core operations - The Company uses non-GAAP financial measures (EBITDA, Adjusted EBITDA, free cash flow) as internal measures of business operating performance and for benchmarking[28][29] - These measures exclude items that vary from period to period without correlation to the Company's core operating performance[29] - EBITDA is net income (loss) adjusted for interest expense and depreciation; Adjusted EBITDA further adjusts for amortization, loss on extinguishment of convertible notes, non-cash fair value remeasurements, bridge note issuance costs, restructuring costs, and stock-based compensation; Free cash flow is net cash from operating activities less capital expenditures[31] About Bolt Projects Holdings Bolt Projects Holdings develops and produces innovative biomaterials, specifically b-silk and other offerings from its Vegan Silk Technology Platform, for the beauty and personal care industry, with these fully vegan and biodegradable ingredients on the market since 2019, supported by a robust intellectual property portfolio of 77 granted and 118 pending patents - Bolt Projects develops and produces innovative biomaterials for the beauty and personal care industry[33] - The Company's Vegan Silk Technology Platform produces b-silk and other offerings that are fully vegan and biodegradable, on the market since 2019[33] - Its intellectual property portfolio is anchored by 77 granted patents and 118 pending patent applications[33] Condensed Consolidated Financial Statements Bolt's condensed consolidated financial statements, including balance sheets, statements of operations, and cash flow information, are presented here Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets from $12.2 million at December 31, 2024, to $6.8 million at June 30, 2025, primarily due to reduced cash and current assets, while total liabilities increased from $20.8 million to $22.0 million, leading to an increased stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :-------------------- | :------------ | :----------- | | Cash and cash equivalents | $974 | $3,512 | | Total current assets | $3,184 | $8,735 | | Total assets | $6,811 | $12,230 | | Total current liabilities | $8,712 | $6,837 | | Total liabilities | $21,971 | $20,840 | | Total stockholders' deficit | ($15,160) | ($8,610) | Condensed Consolidated Statements of Operations and Comprehensive Loss For Q2 2025, revenue significantly increased to $1.3 million from $56 thousand year-over-year, gross income turned positive at $62 thousand from a loss of ($29) thousand, and net loss dramatically improved to ($4.6) million from ($58.9) million year-over-year, largely due to reduced other expenses Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,302 | $56 | $1,473 | $75 | | Cost of revenue | $1,240 | $85 | $1,412 | $150 | | Gross income (loss) | $62 | ($29) | $61 | ($75) | | Total operating expenses | $4,879 | $9,579 | $10,278 | $14,805 | | Loss from operations | ($4,817) | ($9,608) | ($10,217) | ($14,880) | | Total other income (expense), net | $234 | ($49,324) | ($325) | ($50,646) | | Net loss | ($4,583) | ($58,932) | ($10,542) | ($65,526) | | Net loss per share, basic and diluted | ($2.20) | ($252.21) | ($5.53) | ($280.43) | - A classification adjustment was made to correct an error by reducing research and development expense by $1.1 million and increasing general and administrative expense by $1.1 million for the six months ended June 30, 2024, with no impact on total operating expenses, net loss, or earnings per share[36] Selected Cash Flow Information Net cash used in operating activities decreased to ($2.9) million for the six months ended June 30, 2025, from ($7.4) million in the prior year, while net cash provided by financing activities significantly decreased to $330 thousand from $16.3 million year-over-year Selected Cash Flow Information (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net cash used in operating activities | ($2,856) | ($7,362) | | Net cash used in investing activities | ($12) | ($13) | | Net cash provided by financing activities | $330 | $16,300 | | Net change in cash and cash equivalents | ($2,538) | $8,878 | | Cash and cash equivalents at end of period | $974 | $9,812 | Reconciliation of GAAP to Non-GAAP Measures The reconciliation shows Adjusted EBITDA for Q2 2025 was ($3.3) million, compared to ($2.6) million in Q2 2024, with key non-GAAP adjustments including non-cash fair value remeasurements of liabilities, loss on extinguishment of convertible notes, bridge note issuance costs, and stock-based compensation Reconciliation of GAAP to Non-GAAP Measures (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net loss | ($4,583) | ($58,932) | ($10,542) | ($65,526) | | EBITDA | ($4,269) | ($58,574) | ($9,906) | ($64,881) | | Adjusted EBITDA | ($3,283) | ($2,584) | ($6,362) | ($5,060) | - Non-GAAP adjustments for Q2 2025 include ($577) thousand for non-cash fair value remeasurements and $1,563 thousand for stock-based compensation[40] - Q2 2024 adjustments included significant non-cash fair value remeasurements ($22.6 million), loss on extinguishment of convertible notes ($26.4 million), and bridge note issuance costs ($6.9 million)[40][41][42]