Forza X1(US:FRZA)2024-05-15 20:31Financial Performance - For the three months ended March 31, 2024, Forza X1, Inc. reported a net loss of $1,167,837, an improvement from a net loss of $2,005,132 for the same period in 2023, reflecting a reduction of approximately 41.7%[18] - Total operating expenses for the first quarter of 2024 were $1,285,767, down from $2,079,810 in the same quarter of 2023, marking a decrease of about 38.3%[18] - The company reported no net sales for the three months ended March 31, 2024, consistent with the same period in 2023[18] - The company reported a basic and diluted loss per common share of $0.07 for Q1 2024, compared to a loss of $0.19 per share in Q1 2023[18] - For the three months ended March 31, 2024, the company recorded stock-based compensation expense of $293,141, compared to $341,163 for the same period in 2023, reflecting a decrease of approximately 14.1%[58] Assets and Liabilities - As of March 31, 2024, Forza X1, Inc. reported total assets of $15,530,512, a decrease from $16,921,844 as of December 31, 2023, representing a decline of approximately 8.2%[15] - The total stockholders' equity as of March 31, 2024, was $15,145,837, down from $16,020,533 at the end of 2023, representing a decrease of about 5.5%[15] - The company had cash and cash equivalents of $9,952,749 as of March 31, 2024, compared to $9,821,531 at the end of 2023, indicating a slight increase of 1.3%[31] - The company incurred a net cash used in operating activities of $1,210,509 for the three months ended March 31, 2024, compared to $1,582,582 for the same period in 2023, indicating a decrease of approximately 23.4%[22] - The company had customer deposits of $5,700 recorded as contract liabilities, unchanged from December 31, 2023[29] - Provisions for excess and obsolete inventories were $464,410 as of March 31, 2024, up from $351,158 on December 31, 2023[36] - The company had a current liability of $122,322 due to affiliated companies as of March 31, 2024, down from $201,848 on December 31, 2023[49] - Accrued liabilities totaled $72,778 as of March 31, 2024, a decrease from $462,381 on December 31, 2023[54] Research and Development - Research and development expenses decreased significantly to $169,198 in Q1 2024 from $702,648 in Q1 2023, a reduction of approximately 76.1%[18] Management and Corporate Actions - The company completed a public offering that closed on June 14, 2023, which increased its cash by $6,929,552[37] - The company has no current source of revenue and may seek additional equity and/or debt financing[38] - The company recorded management fees of $140,011 for the three months ended March 31, 2024, compared to $20,400 for the same period in 2023[51] - The company has appointed Michael P. Dickerson as Interim Chief Financial & Administrative Officer on April 9, 2024[61] Stock Options and Dividends - As of March 31, 2024, the company had 1,493,074 options outstanding with a weighted average exercise price of $2.75 and a remaining life of 8.78 years[60] - The company granted 518,000 options during the year ended December 31, 2023, with a grant date fair value of $287,835[60] - The expected average volatility for option grants during the three months ended March 31, 2024, was between 108% and 113%[59] - The risk-free interest rate used for option valuation ranged from 2.98% to 4.72%[59] - As of March 31, 2024, there were 748,750 exercisable options with a weighted average exercise price of $3.48[60] - The company has never paid a dividend, resulting in a dividend yield of 0.0%[59] Subsequent Events - No material subsequent events were reported between March 31, 2024, and May 15, 2024[61] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[99]