Thunder Power Reports Unaudited Third Quarter 2024 Financial Results
WILMINGTON, Del., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Thunder Power Holdings, Inc. (NASDAQ:AIEV) ("Thunder Power" or the "Company"), a technology innovator and a developer of premium passenger EVs, today announced its unaudited financial results for the three months ended September 30, 2024 ("Third Quarter 2024").
Third Quarter 2024 Financial Highlights
- Revenues were nil, consistent with the same period in 2023.
- Operating expenses were approximately $0.9 million, compared to $0.6 million in the prior year. The changes were primarily attributed to an increase of professional expenses of approximately $0.4 million with the closing of Business Combination and an increase of approximately $0.1 million in insurance expenses for the management of the Company after the business combination, partially net off against a decrease of share-based compensation expenses of approximately $0.2 million.
- As a result, net loss was approximately $0.9 million, compared to $0.6 million for the same period in 2023.
Wellen Sham, Founder of Thunder Power, commented, "our mission is to power the future of sustainable transportation by creating stylish, innovative and cost-efficient premium EVs centered around differentiated designs and solutions tailored for every lifestyle. With our recent business combination and a forward stock purchase facility set up in August reported in a current report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on August 21, 2024, we endeavor to leverage our proprietary technologies and modular designs. This may enable us to be able to produce eco-friendly EVs that prioritize quality, comfort, and performance, allowing us to capture meaningful market share in the growing EV sector in the foreseeable future."
About Thunder Power Holdings, Inc.
Thunder Power is a technology innovator and a developer of premium electric vehicles ("EVs"). The Company has developed several proprietary technologies, which are the building blocks of the Thunder Power family of EVs. The Company is focused on design and development of high-performance EVs, targeting the EV markets in the U.S., Europe and Asia.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminologies such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's final proxy statement/prospectus pursuant to rule 424(b)(3) filed with the SEC on May 17, 2024 and the subsequent periodic reports that are filed with the SEC and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements, except as required by the applicable law, regulations or rules.
| THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2024 and December 31, 2023 (Expressed in U.S. dollar, except for the number of shares) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| (Audited) | |||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash | $ | 33,636 | $ | 196,907 | |||
| Deferred offering costs | — | 429,750 | |||||
| Prepaid expenses for forward purchase contract | 13,114,964 | — | |||||
| Other current assets | 338,289 | 623,221 | |||||
| Total Current Assets | 13,486,889 | 1,249,878 | |||||
| Non-current Assets | |||||||
| Property and equipment, net | 344 | 1,974 | |||||
| Right of use assets | 11,453 | 5,740 | |||||
| Total Non-current Assets | 11,797 | 7,714 | |||||
| Total Assets | $ | 13,498,686 | $ | 1,257,592 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current Liabilities | |||||||
| Advance of subscription fees from shareholders | $ | — | $ | 590,000 | |||
| Amount due to related parties | 1,369,035 | 68,992 | |||||
| Other payable and accrued expenses | 2,646,139 | 97,297 | |||||
| Lease liabilities | 10,294 | — | |||||
| Underwriter fee payable | 2,921,250 | — | |||||
| Total Current Liabilities | 6,946,718 | 756,289 | |||||
| Total Liabilities | 6,946,718 | 756,289 | |||||
| Commitments and Contingencies (Note 11) | |||||||
| Shareholders' Equity | |||||||
| Common stock ($0.0001 par value, 1,000,000,000 shares authorized; 50,716,094 and 37,488,807 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively)* | 5,072 | 3,749 | |||||
| Additional paid-in capital* | 43,450,668 | 34,927,449 | |||||
| Accumulated loss | (36,904,151 | ) | (34,429,895 | ) | |||
| Accumulated other comprehensive income | 379 | — | |||||
| Total Shareholders' Equity | 6,551,968 | 501,303 | |||||
| Total Liabilities and Shareholders' Equity | $ | 13,498,686 | $ | 1,257,592 | |||
| * | The share information and additional paid-in capital are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading "Reverse Recapitalization" in "Note 1 – Organization and Business Description"). |
| The accompanying notes are an integral part of the unaudited consolidated financial statements. | |
| THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Three and Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar, except for the number of shares and loss per share) | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | — | $ | — | $ | — | $ | — | |||||||
| Operating expenses | |||||||||||||||
| General and administrative expenses | (912,314 | ) | (645,635 | ) | (2,474,043 | ) | (1,594,212 | ) | |||||||
| Total operating expenses | (912,314 | ) | (645,635 | ) | (2,474,043 | ) | (1,594,212 | ) | |||||||
| Other income (expenses), net | |||||||||||||||
| Foreign currency exchange loss | (3 | ) | (513 | ) | (213 | ) | (514 | ) | |||||||
| Total other expenses, net | (3 | ) | (513 | ) | (213 | ) | (514 | ) | |||||||
| Loss before income taxes | (912,317 | ) | (646,148 | ) | (2,474,256 | ) | (1,594,726 | ) | |||||||
| Income tax expenses | — | — | — | — | |||||||||||
| Net loss | (912,317 | ) | (646,148 | ) | (2,474,256 | ) | (1,594,726 | ) | |||||||
| Other comprehensive income | |||||||||||||||
| Foreign currency adjustments | 379 | — | 379 | — | |||||||||||
| Comprehensive loss | $ | (911,938 | ) | $ | (646,148 | ) | $ | (2,473,877 | ) | $ | (1,594,726 | ) | |||
| Loss per share – basic and diluted* | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.05 | ) | |||
| Weighted average shares – basic and diluted* | 50,552,367 | 36,609,437 | 42,729,350 | 33,988,602 | |||||||||||
| * | The shares and per share information are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading "Reverse Recapitalization" in "Note 1 - Organization and Business Description"). |
| The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. | |
| THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICITS) For the Three and Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar, except for the number of shares) | |||||||||||||||||||||||
| Common stock | Additional | Accumulated other | Total shareholders' | ||||||||||||||||||||
| Number of stock* | Amount* | paid-in capital * | Accumulated loss | comprehensive income | equity (deficits) | ||||||||||||||||||
| Balance as of December 31, 2023 | 37,488,807 | $ | 3,749 | $ | 34,927,449 | $ | (34,429,895 | ) | $ | — | $ | 501,303 | |||||||||||
| Capital injection from shareholders | 1,310,740 | 131 | 489,869 | — | — | 490,000 | |||||||||||||||||
| Net loss | — | — | — | (214,043 | ) | — | (214,043 | ) | |||||||||||||||
| Balance as of March 31, 2024 | 38,799,547 | $ | 3,880 | $ | 35,417,318 | $ | (34,643,938 | ) | $ | — | $ | 777,260 | |||||||||||
| Capital injection from shareholders | 1,200,453 | 120 | 456,680 | — | — | 456,800 | |||||||||||||||||
| Reverse recapitalization (Note 1) | 5,279,673 | 528 | 3,973,308 | — | — | 3,973,836 | |||||||||||||||||
| Issuance of common stock to a financial advisor (Note 8) | 1,200,000 | 120 | (120 | ) | — | — | — | ||||||||||||||||
| Issuance of common stock to independent directors | 90,000 | 9 | 899,991 | — | — | 900,000 | |||||||||||||||||
| Share-based compensation | — | — | 107,712 | — | — | 107,712 | |||||||||||||||||
| Settlement of working capital loans | 289,960 | 29 | 2,635,971 | — | — | 2,636,000 | |||||||||||||||||
| Net loss | — | — | — | (1,347,896 | ) | — | (1,347,896 | ) | |||||||||||||||
| Balance as of June 30, 2024 | 46,859,633 | $ | 4,686 | $ | 43,490,860 | $ | (35,991,834 | ) | $ | — | $ | 7,503,712 | |||||||||||
| Payment of offering cost | — | — | (61,745 | ) | — | — | (61,745 | ) | |||||||||||||||
| Issuance of ordinary shares pursuant to forward purchase contracts | 3,706,461 | 371 | (371 | ) | — | — | — | ||||||||||||||||
| Issuance of ordinary shares pursuant to a private placement | 150,000 | 15 | (15 | ) | — | — | — | ||||||||||||||||
| Share-based compensation to a non-employee (Note 10) | — | — | 21,939 | — | — | 21,939 | |||||||||||||||||
| Net loss | — | — | — | (912,317 | ) | — | (912,317 | ) | |||||||||||||||
| Foreign exchange adjustments | — | — | — | — | 379 | 379 | |||||||||||||||||
| Balance as of September 30, 2024 | 50,716,094 | $ | 5,072 | $ | 43,450,668 | $ | (36,904,151 | ) | $ | 379 | $ | 6,551,968 | |||||||||||
| Balance as of December 31, 2022 | 31,754,844 | $ | 3,175 | $ | 32,091,251 | $ | (32,614,251 | ) | $ | — | $ | (519,825 | ) | ||||||||||
| Capital injection from shareholders | 563,823 | 56 | 299,944 | — | — | 300,000 | |||||||||||||||||
| Share-based compensation | — | — | 45 | — | — | 45 | |||||||||||||||||
| Net loss | — | — | — | (210,135 | ) | — | (210,135 | ) | |||||||||||||||
| Balance as of March 31, 2023 | 32,318,667 | $ | 3,231 | $ | 32,391,240 | $ | (32,824,386 | ) | $ | — | $ | (429,915 | ) | ||||||||||
| Capital injection from shareholders | 2,183,887 | 218 | 1,071,306 | — | — | 1,071,524 | |||||||||||||||||
| Net loss | — | — | — | (738,443 | ) | — | (738,443 | ) | |||||||||||||||
| Balance as of June 30, 2023 | 34,502,554 | $ | 3,449 | $ | 33,462,546 | $ | (33,562,829 | ) | $ | — | $ | (96,834 | ) | ||||||||||
| Capital injection from shareholders | 2,835,526 | 284 | 1,390,966 | — | — | 1,391,250 | |||||||||||||||||
| Issuance of ordinary shares to a related party to settle liabilities due to the related party | 150,727 | 15 | 73,938 | — | — | 73,953 | |||||||||||||||||
| Net loss | — | — | — | (646,148 | ) | — | (646,148 | ) | |||||||||||||||
| Balance as of September 30, 2023 | 37,488,807 | $ | 3,748 | $ | 34,927,450 | $ | (34,208,977 | ) | $ | — | $ | 722,221 | |||||||||||
| * | The share information and additional paid-in capital are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading "Reverse Recapitalization" in "Note 1 - Organization and Business Description"). |
| The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. | |
| THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar) | |||||||
| For the Nine Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (2,474,256 | ) | $ | (1,594,726 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation expenses | 1,630 | 3,769 | |||||
| Amortization of right of use assets | 20,160 | 19,801 | |||||
| Share-based compensation | 1,007,712 | 331,295 | |||||
| Share-based settlement expenses | — | 479,174 | |||||
| Changes in operating assets and liabilities: | |||||||
| Other current assets | 37,579 | (11,745 | ) | ||||
| Amount due to related parties | 74,983 | 219,531 | |||||
| Other payable and accrued expenses | 442,413 | — | |||||
| Lease liabilities | (15,579 | ) | 656 | ||||
| Net cash used in operating activities | (905,358 | ) | (552,245 | ) | |||
| Cash flows from investing activities: | |||||||
| Cash acquired in reverse capitalization | 929,302 | — | |||||
| Net cash provided by investing activities | 929,302 | — | |||||
| Cash flows from financing activities: | |||||||
| Subscription fees advanced from shareholders | — | 1,160,000 | |||||
| Subscription fees received from shareholders | 356,800 | — | |||||
| Payment of offering cost | (999,700 | ) | — | ||||
| Return of subscription fees to an investor | — | (100,000 | ) | ||||
| Borrowings from a related party | 710,060 | — | |||||
| Repayment of borrowings to a related party | (25,000 | ) | — | ||||
| Payment of extension loans | (380,000 | ) | (315,000 | ) | |||
| Proceeds of prepayment shortfall under forward purchase contract | 150,000 | — | |||||
| Net cash (used in) provided by financing activities | (187,840 | ) | 745,000 | ||||
| Effect of exchange rates on cash | 625 | — | |||||
| Net (decrease) increase in cash | (163,271 | ) | 192,755 | ||||
| Cash at beginning of period | 196,907 | 250,386 | |||||
| Cash at end of period | $ | 33,636 | $ | 443,141 | |||
| Supplemental cash flow information | |||||||
| Cash paid for interest expense | $ | — | $ | — | |||
| Cash paid for income tax | $ | — | $ | — | |||
| Non-cash investing and financing activities | |||||||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 25,824 | $ | — | |||
| Transfer of advance of subscription fees from shareholders to equity | $ | 590,000 | $ | 300,000 | |||
| Payable of expenses directly related to the business combination | $ | 1,353,913 | — | ||||
| Issuance of ordinary shares to settle the liabilities due to a controlling shareholder | $ | — | $ | 609,958 | |||
| Issuance of ordinary shares to settle the liabilities due to a related party | $ | — | $ | 56,346 | |||
| Share based compensation to a nonemployee as part of offering cost | $ | 21,939 | $ | — | |||
| The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. | |||||||
