Net Element(US:MULN)2025-08-14 21:13Revenue and Sales Performance - Revenue from vehicle sales increased to $473,686 for the three months ended June 30, 2025, compared to $65,235 for the same period in 2024, representing a 626% increase[303] - Vehicle sales for the nine months ended June 30, 2025, were $8,344,311, an increase of 8,365% compared to $98,570 in the same period of 2024[312] Costs and Expenses - Cost of revenues surged to $10,565,994, up from $36,008, indicating a significant increase of 29,243%[303] - General and administrative expenses decreased by approximately $11.3 million, or 24%, from $47.5 million in Q2 2024 to $36.2 million in Q2 2025[307] - Research and development expenses decreased by $2.7 million, or 19%, from $14.3 million in Q2 2024 to $11.6 million in Q2 2025[306] - Research and development expenses decreased by $21.3 million, or 39%, from $54.5 million in the nine months ended June 30, 2024, to $33.2 million in the same period of 2025[315] - General and administrative expenses decreased by approximately $24.6 million, or 18%, from approximately $138.6 million in the nine months ended June 30, 2024, to approximately $114.0 million in the same period of 2025[316] Losses and Financial Performance - Gross loss widened to $(10,092,308) from $29,227, reflecting a 34,631% increase in losses[303] - Net loss attributable to common stockholders was $129.8 million, or $11,231.39 per share, for the three months ended June 30, 2025, compared to a net loss of approximately $96.0 million, or $95,987,912 per share, for the same period in 2024[311] - Total other income (expense) amounted to $(73,588,076) in Q2 2025, compared to $(29,856,459) in Q2 2024, marking a 146% increase in losses[303] - The net loss attributable to common stockholders for the nine months ended June 30, 2025, was $291.8 million, or $74,887.88 net loss per share, compared to a net loss of approximately $289.9 million, or $289,858,116 loss per share, for the same period in 2024[322] - The company incurred a net loss of $304.4 million for the nine months ended June 30, 2025, with an accumulated deficit of approximately $2.6 billion as of the same date[330] Financing and Cash Flow - Other financing costs related to warrants increased to $33.2 million in Q2 2025 from $17.9 million in Q2 2024[308] - Interest expense rose by $17.4 million due to a higher volume of debt outstanding in Q2 2025 compared to Q2 2024[309] - The company recognized other financing costs on initial recognition of warrants amounting to $70.4 million for the nine months ended June 30, 2025, compared to $17.9 million in the same period of 2024[318] - The company used approximately $69.4 million of cash for operating activities during the nine months ended June 30, 2025[330] - Net cash used in operating activities was $69.4 million for the nine months ended June 30, 2025, a 52% decrease from $145.2 million used during the same period in 2024[341] - Net cash used in investing activities was $4.2 million for the nine months ended June 30, 2025, a 70% decrease from $14.1 million used in the same period in 2024[342] - Net cash provided by financing activities was $63.8 million for the nine months ended June 30, 2025, compared to $7.5 million net cash spent on financing activities for the same period in 2024[343] Impairments and Settlements - The company recognized a loss on settlement of $14.3 million related to the GEM case in May 2025[310] - Impairment of intangible assets amounted to $12.3 million for the nine months ended June 30, 2025, compared to $73.5 million in the same period of 2024[317] - The Company recognized an impairment loss of $12.3 million in respect of patents during the nine months ended June 30, 2025[351] - The write-down to net realizable value amounted to $8.9 million and $9.7 million for the three and nine months ended June 30, 2025, respectively[354] Strategic Developments - The company is pursuing strategies to address liquidity concerns, including equity or debt financing and operational restructuring, due to substantial doubt about its ability to continue as a going concern[331] - The company acquired a controlling interest in Bollinger Motors Inc. in September 2022, increasing ownership to over 95% in May 2025, expanding its position in the medium-duty truck and electric vehicle segments[326] Equity and Debt - As of August 14, 2025, the stockholders' equity of the Company exceeds $2.5 million[334] - During the nine months ended June 30, 2025, the Company issued Senior secured convertible notes with an aggregate principal of approximately $68 million, bearing 15% interest[335] - Scheduled debt maturities as of June 30, 2025, total $62.3 million[345] - The Company has not engaged in any off-balance sheet arrangements[346] Lease Obligations - Total future minimum lease payments as of June 30, 2025, amount to $21.9 million[344]