Aptera Motors Corp(US:SEV)2025-11-14 21:06Financial Performance - For the three months ended September 30, 2025, the company's net loss was $5.5 million, a decrease from $8.2 million in the same period of the prior year [148]. - General, selling, and administrative expenses for the nine months ended September 30, 2025, increased by 25% to $19.2 million compared to $15.4 million in 2024, primarily due to higher stock-based compensation and legal costs [149]. - Research and development expenses for the three months ended September 30, 2025, decreased by 10% to $4.7 million from $5.3 million in 2024, mainly due to reduced outside services and prototype tooling costs [144]. - The company experienced a 50% increase in share-based compensation expenses for the nine months ended September 30, 2025, totaling $12.4 million compared to $8.3 million in 2024 [149]. - Research and Development expenses increased by 18% to $13.8 million for the nine months ended September 30, 2025, compared to $11.7 million in the same period of 2024, primarily due to higher stock-based compensation [153][154]. - Other income for the three months ended September 30, 2025, was $2.5 million, significantly up from $0.1 million in the same period of 2024, primarily due to matching grant funds from the California Energy Commission [147]. - Other income rose significantly to $4.6 million in the nine months ended September 30, 2025, from $1.1 million in the same period of 2024, largely due to $3.9 million in matching grant funds from the California Energy Commission [157]. Capital Requirements - The estimated capital required for the initial low-volume production phase is approximately $65 million, with an additional $140-$160 million needed to ramp up to a high-volume production rate of 20,000 vehicles per year [130]. - The company requires approximately $60-70 million in additional funding to advance through critical pre-production phases, including vehicle validation and low-volume manufacturing [162]. - The company secured a $75 million committed equity line of credit (ELOC) to support its capital needs, contingent upon certain conditions [125]. - The company has secured a committed equity line of credit (ELOC) of up to $75.0 million, which is subject to various conditions, to address liquidity needs [161]. Assets and Liabilities - As of September 30, 2025, the company had total assets of $34.9 million, including $12.0 million in cash and cash equivalents, with a monthly cash burn rate of approximately $1.5 to $2.0 million [158]. - Total liabilities as of September 30, 2025, were $7.7 million, including $1.2 million in accrued liabilities and $4.1 million in unearned reservation fees [168]. - During the nine months ended September 30, 2025, the company issued 278,417 shares of Class B Common Stock for total cash proceeds of $11.2 million at a weighted-average price of $40.12 per share [169]. Legal and Regulatory Issues - The company is currently involved in litigation with Zaptera, which asserts claims for design patent infringement and misappropriation of trade secrets [174][175]. - The company is cooperating with an ongoing SEC investigation related to its securities offerings and vehicle production, with no assurance on the outcome [176][177]. Production and Reservations - As of September 30, 2025, Aptera Motors had approximately 49,000 reservation holders but had not delivered any products or recognized any revenue from vehicle sales [126]. - The company is facing challenges in securing sufficient capital, which is critical for commencing production and achieving its business objectives [133]. - The company anticipates receiving approximately $3.5 million in grant disbursements from the California Energy Commission in 2025, contingent upon meeting specific project milestones [164].