Financial Performance - The company's net revenues were $7.0 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, representing an increase of approximately 7.7%[176] - For the six months ended June 30, 2025, net revenues remained stable at $13.4 million, unchanged from the same period in 2024[176] - The company reported a net loss of $4.3 million for the three months ended June 30, 2025, an improvement from a net loss of $7.0 million in the same period of 2024[176] - The company had a net loss of $2.0 million for the six months ended June 30, 2025, compared to a net loss of $4.9 million for the same period in 2024[176] - Revenue for the three months ended June 30, 2025, increased by $561,474 (9%) to $7,015,892 compared to the same period in 2024[214][215] - Revenue for the six months ended June 30, 2025, was $13,437,263, a decrease of $6,901 compared to $13,444,164 for the same period in 2024[222] - The net loss for the six months ended June 30, 2025, was $7,020,611, an increase of 44% from the net loss of $4,889,357 in 2024[236] Expenses and Profitability - Gross profit decreased by $666,399 (32%) for the three months ended June 30, 2025, primarily due to increased shipping and custom fees[216] - Operating expenses rose by $1,405,193 (55%) for the three months ended June 30, 2025, mainly driven by higher general and administrative costs[217] - Gross profit decreased by $427,460 to $3,153,016, representing a 12% decline due to increased shipping and customs fees[223] - Operating expenses increased by $2,605,116 to $7,721,045, primarily driven by a 60% increase in general and administrative expenses[224] - Interest expense rose by $1,519,503 to $3,962,327, a 62% increase due to additional debt and early loan repayments[227] - Adjusted EBITDA decreased by $1,533,862 for the three months ended June 30, 2025, compared to the same period in 2024[211] Financing Activities - The company entered into a Securities Purchase Agreement on October 6, 2023, issuing a senior secured convertible note for a principal amount of $15,819,209[180] - The December 2023 Convertible Note has a maturity date of December 12, 2026, and is secured by a first priority perfected security interest in all existing and future assets of the company[181] - The Company entered into a New Loan Agreement on April 4, 2025, receiving a term loan of $1,824,300, to be repaid in 69 weekly payments of $35,693 starting April 15, 2025[193] - The net proceeds from the New Loan were used to pay off the Agile Loan for a discounted amount of $1,749,300, including principal and interest[195] - As of June 30, 2025, the outstanding balance on the New Loan was $1,824,300, with interest expense for the three months ended June 30, 2025 amounting to $136,109[196] - The Company converted $2,462,805 under the Loan Agreement into 5,000 shares of Series C Preferred Stock on July 7, 2025[260] - The Company executed a senior secured convertible note for a loan of $823,960 on July 7, 2025, as part of a series of senior secured convertible notes totaling $21,972,275.38[262] - On August 4, 2025, the Lender exchanged $10,000,000 principal from the December 2023 Convertible Note into 15,000 shares of Series C Preferred Stock[263] - The Company sold 1,111 shares of Series C Convertible Preferred Stock for a discounted purchase price of $999,900 on August 13, 2025[264] - Financing activities provided cash of $3,373,127, primarily from proceeds of Convertible Notes issued in January and June 2025[240] Operational Developments - The company operates a logistics center in the UK to source and transport over-25-year-old vehicles for restoration[179] - The company employs 98 individuals at its headquarters, known as the "RoverDome," located in Kissimmee, FL[179] - The Company plans to relocate quality and warranty services to a new facility in 2025, enhancing operational efficiency and focusing on iconic American vehicles[204] - The Company opened new retail locations in West Palm Beach, FL, and Nantucket, MA, in 2025 to expand marketing channels[205] Liquidity and Going Concern - The company’s liquidity condition raises substantial doubt about its ability to continue as a going concern within one year[235] - Cash used in operating activities was $4,243,007, with $1,207,662 allocated to fund working capital[237] - As of June 30, 2025, the company had customer deposits of $7,988,974 and deferred revenue of $980,696[228] - The company reported a gain of $519,327 on the fair value of warrant liabilities and $360,989 on the conversion option for the six months ended June 30, 2025[226] - The total value of accounting and finance services provided by Flexible Consulting, LLC, to the Company is $123,000 as of August 15, 2025[268]
EF Hutton Acquisition I(EFHT) - 2025 Q2 - Quarterly Report