Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and higher customization [24][25] - The average selling price per vehicle increased by $25,000, contributing to the overall revenue growth [30] Market Data and Key Metrics Changes - The company has begun to establish a retail presence, with the first retail location opened in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Currently, retail locations contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail strategy to enhance customer engagement and reduce marketing costs associated with mobile outreach [17][19] - ECD Auto Design is focusing on building a luxury brand akin to LVMH in the classic car space, leveraging licensing agreements to consolidate the custom defender market [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching a crossover point for cash flow positive operations at approximately 10 units sold per month, with current sales at about 8.5 units [39] - The company is actively monitoring tariffs and has implemented internal controls to mitigate potential impacts on pricing and margins [50][51] Other Important Information - The company has undergone a re-audit of its financials due to the shutdown of its prior auditor, which has delayed filings but is now up to date [7][12] - The company has a cash balance of $1.5 million as of December 31, 2024, down from $8.1 million the previous year, with plans to maintain production and sales at current cash levels [32][33] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - The analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive cash flow [38] Response: Cash flow crossover point - Management indicated that the crossover point for cash flow positive operations is around 10 units per month, with expectations to reach this soon due to backlog and retail site launches [39][40] Question: Split between web-based sales and retail locations - The analyst asked about the sales mix between digital channels and retail locations [44] Response: Current sales mix - Management noted that currently, 80% of sales come from digital channels and 20% from retail, indicating a significant shift in marketing strategy [48] Question: Mitigation of tariff impacts - The analyst requested insights on how the company plans to mitigate tariff impacts [49] Response: Internal controls and pricing strategy - Management explained that they have committed to not increasing base contract prices and have adjusted upgrade pricing to offset tariff impacts [50][51]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, a 29% increase from $19.5 million in 2023, driven by increased unit sales and higher average selling prices [30] - Gross profit for 2024 increased by 30% to $5.9 million compared to $4.5 million in the previous year, with a gross profit margin of 23.4% [30][32] - The net loss for 2024 was $10.8 million, or $0.32 per diluted share, compared to a loss of $1.2 million, or $0.05 per diluted share, in 2023 [32] Business Line Data and Key Metrics Changes - The company reported a fourth-quarter revenue of $5.3 million, up from $4.8 million in the prior year, attributed to increased sales volume and average sales price [24][25] - The average selling price per vehicle increased by $25,000, contributing to higher revenue [30] Market Data and Key Metrics Changes - The company has begun to establish retail locations, with the first store opening in West Palm Beach, Florida, and a second in Nantucket, which are expected to enhance customer engagement and sales [19][20] - Retail sales currently contribute about 20% of leads and sales, shifting from a previous 100% reliance on digital channels [48] Company Strategy and Development Direction - The company aims to expand its retail presence, planning to open four locations in affluent areas, which is seen as a key growth strategy [23][22] - ECD Auto Design is focusing on enhancing the customer journey and customization options, which has led to an increase in orders for vehicles priced over $500,000 [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs but emphasized their strategy to mitigate impacts without raising base contract prices for clients [50][51] - The company expects to reach a cash flow positive position by increasing production to about 10 units per month, aided by a backlog of orders [39][40] Other Important Information - The company underwent a re-audit of financial statements due to the shutdown of its prior auditor, which has impacted its reporting timeline [7] - A non-cash write-down of $1.1 million in labor overhead allocation affected gross profit for the fourth quarter [26] Q&A Session Summary Question: Regarding non-recurring charges and growth potential - Analyst inquired about the impact of non-recurring charges on future income from operations, suggesting that reasonable growth could lead to positive results in 2025 [38] Question: Vehicle backlog and its impact - Analyst noted that the 12 vehicles pushed from Q4 to Q1 would provide a cushion for the first half of the year [42] Question: Split between web-based sales and retail locations - Management discussed the shift in sales strategy, noting that retail locations currently contribute 20% of leads and sales, allowing for reduced traditional marketing spending [44][48] Question: Mitigation of tariff impacts - Management explained their strategy to avoid increasing base contract prices while adjusting upgrade pricing to offset tariff impacts [50][51]