Volcon(US:VLCN)2025-11-10 22:14Financing Activities - The Company raised approximately $501 million through private placements, selling 44,414,189 shares at $10 per share, including $28 million in Bitcoin[170]. - The net proceeds of $452 million from the private placements were used to acquire Bitcoin and establish cryptocurrency treasury operations[170]. - The Company has sold 136,053 shares under its ATM program for $1.5 million at an average price of $10.90 since the inception of its digital asset treasury strategy[171]. - The share repurchase program allows for up to $150 million in repurchases, with $81.5 million spent to buy back 11,082,834 shares at an average price of $7.36[172]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $485.3 million, primarily from the sale of common stock and prefunded warrants[234]. Revenue and Sales Performance - Revenue for the three months ended September 30, 2025, was $198,301, a significant decrease from $1,075,864 in the same period of 2024[194]. - For the nine months ended September 30, 2025, revenue totaled $1,637,286, compared to $3,050,275 for the same period in 2024, indicating a decline of approximately 46.3%[194]. - The company expects revenue to decrease in the three months ended December 31, 2025, as it transitions to providing golf cart inventory financing and developing new E-Bike products[198]. Expenses and Losses - The net loss for the three months ended September 30, 2025, was $34,555,301, compared to a net loss of $13,638,478 for the same period in 2024[194]. - General and administrative expenses for the three months ended September 30, 2025, were $19,400,760, significantly higher than $1,916,712 in the same period of 2024[215]. - General and administrative expenses for the nine months ended September 30, 2025, were $23,841,753, including $1,935,878 in employee payroll costs and $14,880,161 in stock-based compensation[216]. - Net loss for the nine months ended September 30, 2025, was $40,915,628, compared to a net loss of $40,292,940 for the same period in 2024[226][227]. - The company expects general and administrative expenses to decrease for the remainder of 2025, anticipating a reduction in one-time costs and lower insurance expenses[219]. Asset Management - The Company acquired 4,081 Bitcoin as of November 10, 2025, with 1,980 Bitcoin restricted as collateral for loans[174]. - The company recognized an unrealized loss of $14,106,222 on Bitcoin, with an average purchase price of $117,516 and a fair value of $114,061 as of September 30, 2025[220]. - An unrealized loss on digital assets of $14.1 million was recorded, representing 40.9% and 34.8% of operating expenses for the three and nine months ended September 30, 2025, respectively[176]. - Cash used in operating activities for the nine months ended September 30, 2025, was $14.9 million, including a $14.1 million unrealized loss on Bitcoin[229]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $453.8 million, primarily for the purchase of Bitcoin[232]. Operational Changes and Agreements - The Company plans to divest its Volcon brand to Venom EV, LLC, in exchange for a non-dilutable 10% equity position in Venom's reorganized corporation[179]. - The Company entered into a supply agreement with Venom to supply up to $2.7 million worth of golf carts, with initial orders already placed[187]. - As of November 10, 2025, the Company has 23 active dealers for its bicycle products while transitioning powersports and golf cart dealers to Venom[189]. - The company has signed agreements with six importers in Latin America and additional importers in New Zealand, Australia, and Japan to expand its international distribution[191]. Cost Management - Cost of goods sold for the three months ended September 30, 2025, was $291,602, a decrease from $10,294,720 in the same period of 2024[199]. - The company anticipates a decrease in cost of goods sold for the remainder of 2025 due to lower revenue from product sales[203]. - Product development expenses for the three months ended September 30, 2025, were $181,671, compared to $528,352 in the same period of 2024[210].