Financial Performance - Revenue for Q3 2025 was $60.12 million, a 20.24% increase from $50.00 million in Q3 2024[17] - Gross profit for the nine months ended September 30, 2025, was $75.12 million, compared to $99.79 million for the same period in 2024, reflecting a decrease of 24.83%[17] - Net loss for Q3 2025 was $2.48 million, compared to a net loss of $5.82 million in Q3 2024, indicating an improvement of 57.45%[17] - For the nine months ended September 30, 2025, the net loss was $5,187,125, a significant improvement compared to a net loss of $15,757,196 for the same period in 2024, indicating a reduction of approximately 67%[24] - The net loss for the three months ended September 30, 2025 was $2,481,975, a significant improvement of $3,341,108 from a net loss of $5,823,083 in the prior year[156] - For the nine months ended September 30, 2025, revenues were $75,120, a decrease of $24,670 from $99,790 in the same period of 2024[163][164] Assets and Liabilities - Total current assets increased to $1.83 billion as of September 30, 2025, up from $1.23 billion at the end of 2024, representing a growth of 49.49%[16] - Total liabilities decreased to $12.92 billion as of September 30, 2025, down from $15.51 billion at the end of 2024, a reduction of 16.73%[16] - The company reported a total stockholders' equity of $3.45 million as of September 30, 2025, an increase from $2.64 million at the end of 2024, reflecting a growth of 30.49%[16] - The company reported an accumulated deficit of $52,204,274 as of September 30, 2025, highlighting ongoing financial challenges[28] Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2025, was $5,344,393, down from $11,666,133 in the prior year, reflecting a 54% decrease[24] - Cash and cash equivalents are maintained in business checking and money market accounts, recorded at fair value, and held for short-term liquidity requirements[51] - The Company raised $4.4 million in cash and $0.5 million through offset obligations in the May Private Placement, selling 1,980,000 shares of Common Stock and 3,960,000 warrants[173] - Cash provided by financing activities for the nine months ended September 30, 2025, was approximately $5.88 million, down from $10.27 million in 2024[199] - The Company expects to continue seeking additional funds primarily through the issuance of debt or equity securities to support its operations[190] Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $9.37 million, down from $18.50 million in the same period of 2024, a decrease of 49.33%[17] - General and administrative expenses decreased to approximately $1,451,867 for the three months ended September 30, 2025, down by approximately $2,752,079 from $4,203,946 in the prior year[156][158] - Total operating expenses for the three months ended September 30, 2025 were $2,376,733, a decrease of $2,952,779 compared to $5,329,512 in the same period of 2024[156] Stock and Equity - The weighted average number of common shares outstanding increased to 42,166,121 for Q3 2025, compared to 35,539,043 for Q3 2024, an increase of 18.51%[17] - The Company has 19,148,526 potentially dilutive securities excluded from the calculation of weighted average shares of Common Stock outstanding as of September 30, 2025, compared to 27,816,055 in 2024[64] - The Company issued 200,000 shares and 400,000 warrants for gross proceeds of $500,000 on May 30, 2024[85] - The Company issued 1,500,000 shares of Common Stock to Yorkville under the Standby Equity Purchase Agreement during the nine months ended September 30, 2025[178] Future Outlook - The company expects to continue incurring operating losses and negative cash flows for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern[28] - The company plans to raise additional capital through equity or debt financing to fund operations and product development[171] - The Company plans to launch its Automotive AI Agent, which integrates with major automotive data platforms and supports over 13,000 dealerships nationwide, aiming to improve lead conversions and enhance service efficiency[142] Research and Development - The Company has a dedicated office in the Republic of Korea for research and development activities, indicating a focus on innovation and technology advancement[39] - The Company expects to continue incurring significant operating costs, including research and development expenses, which will impact future profitability[145] Agreements and Partnerships - The Company entered into a definitive Shareholder, License and Reseller Agreement with SKYE LATAM on November 6, 2025, to expand its AI footprint in Latin America and Spain[127] - The Company has established a partnership with SKYE Inteligencia LATAM to commercialize its AI technology across Latin America and Spain, receiving 25% of SKYE LATAM's common stock and 35% of gross revenues from software and services[132] Defaults and Financial Challenges - As of September 30, 2025, the Company is in default on the Yorkville Promissory Note with an outstanding balance of $416,667, which was settled for $487,453[134] - The Cohen Convertible Note, issued for $1.9 million, is in default with an outstanding balance of $760,000 as of September 30, 2025, after $380,000 was converted into 316,666 shares of Common Stock[135]
DHC Acquisition (DHCA) - 2025 Q3 - Quarterly Report