Xos(US:XOS)2025-11-13 21:15Financial Performance - Revenues for Q3 2025 were $16,500,000, a 4.5% increase from $15,790,000 in Q3 2024[23] - Gross profit for Q3 2025 was $2,531,000, down 11.6% from $2,864,000 in Q3 2024[23] - Net income for Q3 2025 was $2,123,000, compared to a net loss of $10,512,000 in Q3 2024[23] - Operating expenses for Q3 2025 were $9,525,000, a reduction of 24.2% from $12,555,000 in Q3 2024[23] - The company reported a loss from operations of $6,994,000 for Q3 2025, an improvement from a loss of $9,691,000 in Q3 2024[23] - For the nine months ended September 30, 2025, the company reported a net loss of $15.6 million, an improvement from a net loss of $31.2 million in the same period of 2024, representing a 50% reduction in losses[30] - Total revenues for the three months ended September 30, 2025, were $16,500,000, a 4.5% increase from $15,790,000 in 2024[78] - Product revenue for the three months ended September 30, 2025, was $16,435,000, up 9.3% from $15,042,000 in 2024[78] - The segment net income for the three months ended September 30, 2025, was $2.12 million, compared to a net loss of $10.51 million in the same period of 2024[159] Assets and Liabilities - Total current assets decreased to $62,526,000 as of September 30, 2025, from $82,301,000 at the end of 2024, representing a 24.1% decline[20] - Total liabilities decreased to $42,750,000 as of September 30, 2025, down 33.9% from $64,723,000 at the end of 2024[20] - The accumulated deficit increased to $218,988,000 as of September 30, 2025, from $203,420,000 at the end of 2024[20] - The company’s total stockholders' equity decreased to $31,060,000 as of September 30, 2025, down from $33,610,000 at the end of 2024[20] - Cash and cash equivalents increased to $14,066,000 as of September 30, 2025, up from $10,996,000 at the end of 2024, a 27.5% increase[20] - Accounts receivable totaled $15.4 million as of September 30, 2025, with one customer representing 64% of this amount[64] - Total inventories decreased to $25,224,000 from $36,567,000 as of December 31, 2024, representing a 30.9% decline[86] Cash Flow and Financing - The company generated net cash provided by operating activities of $3.0 million for the nine months ended September 30, 2025, compared to net cash used in operating activities of $52.1 million for the same period in 2024[30] - The company plans to raise additional capital through various strategies, including debt financing and equity financing, to support its operations and growth[44] - The company has incurred net losses and cash outflows since inception, with a total net cash used in operating activities of $48.8 million for the year ended December 31, 2024[42] - The company faces substantial doubt about its ability to continue as a going concern due to ongoing liquidity challenges and reliance on future capital raises[43] - The Company entered into a Standby Equity Purchase Agreement with Yorkville, allowing it to sell up to $125.0 million of Common Stock until February 11, 2026[115] - As of September 30, 2025, the Company had $119.4 million remaining commitment available under the SEPA, but access to capital is currently limited due to registration statement requirements[119] Operational Challenges - The company faces substantial doubt about its ability to continue as a going concern due to ongoing liquidity challenges and reliance on future capital raises[43] - The company’s operations may be adversely affected by global economic conditions, supply chain disruptions, and geopolitical events, which could impact its financial performance[37] - The Company is experiencing ongoing supply chain disruptions, particularly in power electronics and harnesses, due to global economic conditions and expects these effects to continue[49] - The company has undertaken measures to mitigate tariff impacts, including diversifying the supply base and renegotiating pricing and delivery terms[182] Customer Concentration - One customer accounted for 72% of the Company's revenues during the three months ended September 30, 2025, compared to two customers accounting for 28% and 21% in the same period of 2024[63] - As of September 30, 2025, one vendor accounted for 39% of the Company's accounts payable, indicating a concentration risk[66] Stock and Equity - The company recognized stock-based compensation expense of approximately $2.1 million and $5.2 million for the three and nine months ended September 30, 2025, respectively[140] - The total fair value of RSUs that vested was $1.1 million and $2.9 million during the three and nine months ended September 30, 2025, respectively[141] - The Company has 1,211 Options outstanding under the 2018 Stock Plan, which generally vest over four years[130] - The 2021 Equity Plan was approved to grant various forms of awards, with an increase of 3,100,000 shares reserved for issuance approved on June 24, 2025[137] Cost Management - The company plans to continue seeking opportunities to reduce costs and cash expenditures to address liquidity and working capital needs[167] - General and administrative expenses decreased by 27% from $8.897 million in Q3 2024 to $6.456 million in Q3 2025[203] - Research and development expenses decreased by 20% from $2.619 million in Q3 2024 to $2.101 million in Q3 2025[203] - Sales and marketing expenses for the nine months ended September 30, 2025, decreased by $1.0 million, or 29%, to $2.3 million, primarily due to lower personnel costs[215]