Financial Data and Key Metrics Changes - ECD Automotive Design reported record revenue of $7 million for Q2 2025, an increase of $500,000 compared to Q2 2024, marking the highest quarterly revenue in the company's history [17] - Gross profit for the quarter was $1.4 million, down $700,000 from Q2 2024, resulting in a gross margin of 20%, compared to 32% in the prior year, primarily due to higher shipping and customs fees [17][18] - The net loss increased to $4.3 million from $2 million in Q2 2024, with a loss per share of 11 cents compared to 6 cents in the prior year [19] Business Line Data and Key Metrics Changes - The company has expanded its offerings to include custom-built Ford Mustangs, with the first Mustang, Project Ghost, being delivered in Q2 2025 [8][9] - The Mustang program is expected to diversify revenue streams and deliver high margins while leveraging existing manufacturing capabilities [9][11] Market Data and Key Metrics Changes - ECD operates within a $94 billion global classic car ecosystem, with strong demand for bespoke luxury vehicles [6] - The company has seen positive performance in its retail locations, contributing to backlog growth and accelerating inventory conversion into cash [10][11] Company Strategy and Development Direction - ECD is focusing on a capital-light model with scalable manufacturing and multiple growth channels, including retail and licensing [6] - The company has implemented cost-saving initiatives and secured a $500 million equity facility for strategic accumulation of Bitcoin, aligning with its view of Bitcoin as a next-generation store of value [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the current macro environment, including higher costs associated with tariffs and shipping, but remains optimistic about the company's growth trajectory [8][12] - The company is committed to regaining compliance with NASDAQ listing requirements and strengthening its balance sheet through various financial maneuvers [21][22] Other Important Information - ECD has engaged an advisory firm to navigate the NASDAQ compliance process and has filed a registration statement for 300 million shares in connection with its equity line of credit [21][22] - The company has raised an additional $1.7 million in equity capital to fund operations and improve its shareholder deficit [22] Q&A Session Summary Question: Details on Mustang rollout and pipeline deliveries for the next twelve months - Management highlighted the learning experience from the Mustang rollout, addressing initial challenges with part supply and production models, and expressed confidence in streamlining production for future units [25][26][29] Question: Is the $500 million Bitcoin financing more of a marketing tool or financing tool? - Management clarified that the financing serves as a combination of both, aimed at engaging the crypto demographic while also funding business expansion and new retail units [30][31]

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]