Company Overview - Atlis Motor Vehicles is a pre-revenue development stage company focused on manufacturing innovative battery cells and packs for electric vehicles and energy storage solutions [96]. - Atlis aims to capture the commercial and industrial electric vehicle market, which is currently underserved by existing EV companies [99]. Revenue Generation Plans - The company plans to generate revenue in the current fiscal year, having received deposits for battery packs and hardware for delivery in the second half of 2023 [102]. - The company raised $21 million through convertible debt and public offerings during the quarter ended March 31, 2023 [116]. Financial Performance - The company incurred a net loss of approximately $12.3 million for the three months ended March 31, 2023, compared to a net loss of $19.7 million in the same period in 2022, reflecting an improvement of $7.4 million [115]. - Total operating expenses decreased by $6.1 million from $19.7 million in Q1 2022 to $13.6 million in Q1 2023, primarily due to a reduction in stock-based compensation [108]. - Research and development expenses increased by $1.6 million from $1.3 million in Q1 2022 to $2.9 million in Q1 2023 as the company ramped up battery and platform development [109]. - General and administrative expenses rose by $2.1 million to $4.7 million in Q1 2023, driven by increased legal and professional fees related to convertible debt and equity offerings [110]. - Net cash used in operating activities was $9.4 million for the three months ended March 31, 2023, compared to $5.3 million in the same period in 2022 [114]. - The company had $12.9 million in cash and an accumulated deficit of approximately $231 million as of March 31, 2023 [115]. Operational Strategy - The company has a strategic "crawl-walk-run" approach to scaling operations, starting with the market introduction of AMV battery cells and charging technology [100]. - Atlis is currently producing AMV battery cells in a pilot capacity and plans to ramp up manufacturing while investing in automation and quality improvements [101]. - The company plans to continue investing heavily in research and development to bring products to market [109]. Funding and Financial Strategy - In November 2022, Atlis entered a Securities Purchase Agreement for up to $30 million in convertible debt and warrants, receiving net proceeds of $9 million from the first tranche [104]. - A public offering in February 2023 resulted in gross proceeds of approximately $13 million from the sale of 8.3 million units at an offering price of $1.56 per unit [104]. - The company is pursuing all available options for funding, including public markets, to ensure it can continue operations and execute business objectives [117]. Challenges and Risks - The company continues to incur losses from operations and negative cash flows, with expectations of ongoing losses until production capabilities are scaled [97][102]. - Limited supply availability due to ongoing global conflicts could lead to unforeseen cost and delivery challenges in 2023 [105]. - The company has not declared or paid cash dividends and has no plans to do so in the foreseeable future [87]. Corporate Changes - The merger with Nxu, Inc. was approved by shareholders on May 9, 2023, which will result in Atlis becoming a wholly-owned subsidiary of Nxu [97].
Nxu(NXU) - 2023 Q1 - Quarterly Report