SEC 8-K filings with transcript text
Nov 12, 2025
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Exhibit 99.1
Empery Digital Reports Operational Highlights and Third Quarter 2025 Financial Results
Empery Digital Has Repurchased 11.1 Million Shares
AUSTIN, TX, November 11, 2025 – Empery Digital Inc. (NASDAQ: EMPD) (“Empery Digital”, the “Company” or “we”), an E-bike and Bitcoin Treasury company, today reported its operational highlights and financial results for the quarter ended September 30, 2025, including an update on its previously authorized share repurchase program.
Company Highlights:
● Implemented Bitcoin (“BTC”) treasury strategy following approximately $500 million equity capital raise;
●
Repurchased 11.1 million shares of common stock under its $150 million share repurchase program at share prices below net asset value (“NAV”) and Bitcoin per share accretive; and
● Reduced costs by divesting the Volcon brand, IP and costs related to the four wheeled products and now focused on two-wheel products.
As previously announced, the Company implemented a BTC treasury strategy following a private placement that raised gross proceeds in excess of $500 million. The goal of the BTC treasury strategy is to optimize the Company’s capital structure to increase BTC per share to drive shareholder value. Under this strategy, we plan to opportunistically issue equity or equity-linked securities when market conditions allow us to raise capital at a premium to NAV1, and repurchase our shares at share prices below NAV, in each case seeking to increase NAV per share at a rate that exceeds the growth rate of BTC.
The Company put the key tools in place to implement the BTC treasury strategy, including increasing its ATM program to allow the Company to sell up to $1.1 billion of common stock, filing a universal shelf registration statement to facilitate the issuance of other equity or equity-linked securities, increasing its share repurchase program to $150 million and executing borrowing agreements providing access to $150 million of committed capital.
Since the implementation of the BTC treasury strategy, the Company has repurchased 11,082,934 shares of its common stock under its $150 million share repurchase program, at an average purchase price per share of $7.36, including all fees and commissions. Following these repurchases, approximately $68.5 million remains available for future repurchases and the current number of shares outstanding is 40,337,401, after giving effect to the potential exercise of pre-funded warrants to purchase an aggregate of 3,913,538 shares of common stock with an exercise price of $0.00001 per share. Share repurchases have been funded by borrowings under the $150 million borrowing facilities, of which $80 million has been drawn to date. Management remains committed to increasing BTC per share through accretive share repurchases at prices below NAV to continue to generate value for shareholders.
We also intend to continue to generate income through buying and selling derivatives tied to the price of BTC, including the use of short-term put and call contracts. To date, the Company realized net income of $955,087 from trading put and call contracts that have been closed out.
Ryan Lane, Co-CEO, notes, “We have implemented the Bitcoin treasury strategy and successfully increased our NAV per share at a rate that exceeds the return of Bitcoin . Although the price of BTC and our stock price has been volatile, we believe that BTC is well positioned to become mainstream and will continue to be the dominant digital currency and outperform markets as further discussed in our investor presentation (https://ir.emperydigital.com/company-information/presentations).” Mr. Lane continued, “the operating business has been transformed, and management is continuing to focus on reducing costs across the Company so that cash generated from operations derivative strategies and financing activities can cover operating expenses and generate excess cash to purchase more BTC.”
1 NAV means the quotient of (1) the value of BTC holdings plus cash, minus debt, divided by (ii) the number of shares of common stock outstanding plus all shares of common stock issuable upon exercise of all pre-funded warrants outstanding.
1
As previously announced, on October 15, 2025, the Company entered into an Asset Purchase Agreement with Venom EV, LLC, (“Venom”) pursuant to which the Company agreed to transfer to Venom the right, title and interests in certain intellectual property assets relating to the Company’s powersports business in exchange for the issuance by Venom to the Company 10% of the shares of common stock of Venom on a fully diluted and non-dilutable basis.
The Company also plans to leverage its existing relationships to expand its opportunity to finance inventory purchased by OEMs selling golf carts to generate positive cash flow by leveraging the spread between the Company’s cost of capital and interest income from vehicle financing. Co-CEO John Kim notes,
Aug 12, 2025
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Exhibit 99.1
Empery Digital Reports Operational Highlights and Second Quarter 2025 Financial Results
AUSTIN, TX, August 12th, 2025 – Empery Digital Inc. (NASDAQ: EMPD) (“Empery Digital'', the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the quarter ended
June 30, 2025.
Company Highlights:
●
Initiated Bitcoin (“BTC”) treasury strategy and completed private placements raising over $481 million in net proceeds
●
Purchased over $473 million of Bitcoin
●
Increased ATM program by $1 billion and share repurchase program to $100 million
●
Launched EmperyDigital.com, providing real time portfolio metrics, and social media accounts to expand distribution of Company communications
●
Continuing to evaluate impact of tariffs on products
Effective as of July 17, 2025, the Company adopted a BTC treasury strategy with the goal of becoming a leading, low cost, capital efficient, globally trusted aggregator of BTC. On July 21, 2025, we completed private placements with certain institutional and accredited investors for the sale of 44,414,189 shares of common stock and pre-funded warrants to purchase an aggregate of 5,728,662 shares common stock with an exercise price of $0.00001. The Company received net cash proceeds of approximately $481 million.
At the time of this release, we have acquired 4,026.71 BTC for an aggregate purchase price of approximately $473 million, reflecting an average purchase price of $117,546 per BTC.
The Company amended its At-The-Market Issuance
Sales Agreement which increased the maximum capacity of the program by $1 billion, in addition to the $90 million available under its existing ATM program. The Company filed a shelf registration statement to register the shares underlying such agreement on July 30, 2025. In addition, the board of directors of the Company approved a $100 million common stock repurchase program.
On August 6, 2025, the Company launched EmperyDigital.com, which includes real-time portfolio metrics updating the market on BTC holdings and key valuation metrics. The Company has also launched various social media accounts where the Company can provide updates to the BTC treasury strategy and where Ryan Lane, the Company’s Co-CEO can explain the various ways Empery Digital thinks about efficiently adding BTC per share and opine on various topics and happenings within the blockchain ecosystem where he believes he has expertise.
Website Homepage: https://www.emperydigital.com/
Treasury Dashboard: https://www.emperydigital.com/treasury-dashboard
X (f/k/a Twitter) Account: https://x.com/EMPD_BTC
Treasury Instagram Account: https://www.instagram.com/empd_btc
YouTube Account: https://www.youtube.com/@emperydigital
Mobility Instagram Account: https://www.instagram.com/Volcon.ev/
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These channels may be updated from time to time on our investor relations website. The information we post through these channels may be deemed material. The Company intends to use these channels as a means of complying with its disclosure obligations under Regulation FD and to provide broad, non-exclusionary distribution of information regarding the Company to the public, including information regarding market data for the Company’s BTC holdings and key valuation metrics. Accordingly, investors are encouraged to monitor them in addition to our investor relations website, press releases, SEC filings, and public conference calls and webcasts. This list may be updated from time to time.
On April 2, 2025, the U.S. imposed reciprocal tariffs on imports from various countries including China and Vietnam starting with a 10% baseline tariff. We continue to monitor the ongoing tariff situation, and we will modify our mobility business accordingly.
John Kim, the Company’s Co-CEO, stated “tariffs imposed by the current administration continue to impact the Company’s cost for vehicles and parts manufactured in China and Vietnam. With the expected Vietnam tariff rate of 20%, the Company can continue sourcing from Vietnam, though it would likely result in a modest reduction in margins and a corresponding increase in retail pricing. The Company remains actively evaluating strategic alternatives, including U.S. assembly or shifting production as well as potentially adjusting selling prices to offset elevated import costs.”
Financial highlights:
Statement of Operations 3 Months Ended
June 30, 2025 March 31, 2025 December 31, 2024
Revenue $702,936 $736,049 $986,916
Cost of goods sold (851,476) (781,383) (3,138,559)
Gross Margin (148,540) (45,334) (2,151,643)
Sales & Marketing 622,772 510,957 774,026
Product Development 221,159 388,523 519,483
General & Administrative 2,879,335 1,561,657 1,660,627
Total Operating Expenses 3,723,266 2,461,137 2,954,136
Loss from Operations (3,871,806) (2,506,471) (5,105,779)
Other Income (Expense) (28,091) 46,041 (111,590)
Mar 17, 2025
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Exhibit 99.1
Volcon ePowersports Reports Operational Highlights and Fourth Quarter 2024 Financial Results
AUSTIN, TX (March 17, 2025) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'', the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the quarter ended December 31, 2024
Company Highlights:
·
Signed exclusive golf cart distribution agreement with Super Sonic Company Ltd.
·
Signed golf cart supply agreement with Venom-EV
·
Launched the HF1 UTV in the fourth quarter of 2024
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Received the first prototypes of the FT1 dual sport motorcycle
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Raised $19.5 million in February 2025 from our At the Market and Equity Offerings
·
Announced share repurchase program in March 2025 for up to $2 million
As previously announced, in January 2025 we signed an agreement to be the exclusive distributor of Super Sonic Company Ltd.’s (“Super Sonic”) golf carts in the U.S. Super Sonic is also our supplier for the MN1 Adventurer and MN1 Tradesman and manufactures their golf carts in Vietnam which currently has a 2.5% tariff compared to China’s tariffs of 150% or more.
1
Also as previously announced, in February 2025 we signed a golf cart supply agreement with Venom-EV LLC (“Venom”) to supply Venom golf carts. Venom has placed an initial purchase order for $2.4 million.
In the fourth quarter of 2024 we received the first HF1 UTV shipment which has a single row bench seat and a dump bed. We completed testing and began selling the HF1 in December 2024.
We received the first prototypes of our next generation motorcycle, the FT1, in February 2025 and we are currently performing testing and will undergo regulatory compliance testing in the second quarter of 2025. We expect this model to be available in the third quarter of 2025.
In November 2024 we initiated an At the Market (“ATM”) equity offering. Through February 4, 2025, we raised net proceeds totaling $9.1 million from the ATM. On February 6, 2025, we raised net proceeds of $10.7 million from a registered offering of 6,000,000 units. Each of these units was sold at $2 per unit and each unit included one share of common stock (or pre-funded warrant) and a warrant to purchase one share of the Company’s common stock at $2.00 per share.
In March 2025 the board of directors authorized a share repurchase program whereby the Company can repurchase up to $2 million of its common stock at the Company’s discretion. The share repurchase program expires in March 2026.
John Kim, CEO, notes “the Company has substantially changed over the last 12 months. We have significantly improved our balance sheet; we have no debt and have cash that we expect will allow us to operate into 2026. We have revamped our product line and will continue to look for new products to complement our existing products. The supplier and exclusive distribution agreements with Super Sonic will allow us to avoid the high tariffs that other golf cart OEMs are facing with products coming from China. The supply agreement and initial purchase from Venom is the first of what we hope are many more to come. It has been a lot of work to move the Company forward and I want to recognize the dedication of our employees who have embraced these changes to put us in a position to be successful”
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Financial highlights:
3 Months Ended Years Ended December 31,
December 31, 2024 September 30, 2024 June 30,
2024 2024 2023
Revenue $986,916 $1,075,864 $940,863 $4,037,191 $3,260,988
Cost of goods sold (3,138,559) (10,294,720) (3,113,429) (18,168,288) (11,391,040)
Gross Margin (2,151,643) (9,218,856) (2,172,566 (14,131,097) (8,130,052)
Sales & Marketing 774,026 470,692 543,671 2,548,953 7,405,705
Product Development 519,483 528,352 805,550 2,668,330 7,868,985
General & Administrative 1,660,627 1,916,712 2,007,514 7,665,647 6,388,007
Total Operating Expenses 2,954,136 2,915,756 3,356,735 12,882,930 21,662,697
Loss from Operations (5,105,779) (12,134,612) (5,529,301) (27,014,027) (29,792,749)
Other Income (Expense) (111,590) (1,503,866) 4,922,883 (18,496,282) (15,278,462)
Net loss $(5,217,369) $(13,638,478) $(606,418) $(45,510,309) $(45,071,211)
The financial results presented herein are subject to change pending completion of the audit of the annual financial statements.
·
Revenue: The Company’s revenue for the fourth quarter of 2024 was $0.9 million compared to the third quarter which was $1.1 million, and the second quarter which was $0.9 million. Revenue for the fourth quarter includes Brat revenue of $0.4 million, Grunt EVO revenue of $0.3 million and $0.2 million for the adjustment of expired dealer rebates. Third quarter revenue includes Brat revenue of $0.3 million, Grunt EVO revenue of $0.3 million, Stag revenue of $0.1 million and $0.1 million for the adjustment of expired dealer rebates. Revenue for the second quarter incl
Aug 6, 2024
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Exhibit 99.1
Volcon ePowersports Reports Second Quarter 2024 Operational and Financial Results
AUSTIN, TX (August 6, 2024) - Volcon Inc. (NASDAQ: VLCN) (“Volcon’’, the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the quarter ended June 30, 2024
Company Highlights:
●
Regained Nasdaq compliance July 17, 2024 subject to Nasdaq’s Discretionary Panel Monitor
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Raised $12 million in July 2024 from an equity offering
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Delivered three additional Stags to the Army Corp
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Signed agreements with a manufacturer to build a new version of the Grunt EVO and with another manufacturer to build a new model of UTV, both pending completion of regulatory testing of these vehicles
●
Appointed Adrian Solgaard as a new independent member of the board of directors
As previously noted in our first quarter operational and financial results update, Volcon presented its plan of compliance to the Nasdaq Hearing Panel on March 26, 2024 regarding ongoing compliance with the bid price and equity compliance. On July 17, 2024, the Company received notice that we had demonstrated compliance with all requirements, but will be subject to a Discretionary Panel Monitor for a period of one year.
On July 12, 2024 the Company completed an offering of common stock and pre funded warrants that raised gross proceeds of $12 million, which further supported our equity compliance with Nasdaq as noted above. Approximately $2.9 million of the net proceeds were used to repay the outstanding principal on the May 2024 Notes resulting in the Company having less than $40,000 of debt on its balance sheet.
The Company shipped the Army Corp three more Stags in May 2024 and anticipates additional deliveries to complete the Army Corp’s orders by August 2024, a delay of one month from our previously announced anticipated shipment by July 2024. The delay was due to manufacturing delays incurred for the delayed availability of certain components. Our manufacturer has completed these units and they are awaiting a final quality inspection by us.
We have signed an agreement with a manufacturer to develop and produce the next generation of the Grunt. We expect to receive prototypes of this model by the third quarter 2024. We will be performing testing as well as completing regulatory compliance testing and expect this model to be available in the first quarter of 2025.
We have also signed an agreement with the manufacturer of a UTV to distribute this model in North America. This will be a utility UTV with a single row bench seat and a dump bed. We also granted the manufacturer the right to sell this unit outside of North America using the Volcon brand in exchange for a royalty on each unit sold by the manufacturer. The royalty period begins in year three of the agreement. We expect to receive prototypes of this model by third 2024. We will be performing testing as well as completing regulatory compliance testing and expect this model to be available in the first quarter of 2025. This UTV will initially be assembled by us in Texas using the manufacturer’s parts until the manufacturer can complete its production facility in Thailand and can ship completed units directly to us.
Finally, as previously announced, the board of directors has appointed Adrian Solgaard to the board as an independent director.
John Kim, CEO, notes “We have made some significant changes in the direction of our products and business. We have significantly improved our balance sheet and equity structure and, having demonstrated compliance with Nasdaq, have the ability to take advantage of opportunities to raise additional cash if circumstances are favorable to do so. We have reduced headcount costs and have streamlined the development of new products by working with manufacturers who have significant design, development and production capabilities allowing us to reduce product development costs and time to get new products to market. Where possible we are also negotiating to have no or insignificant minimum order quantities to reduce cash requirements and minimize inventory on hand. The future of Volcon’s products will follow this model as we work to achieve profitability.”
1
Financial highlights:
3 Months Ended
June 30, 2024
March 31, 2024
December 31, 2023
Revenue
$ 940,863
$ 1,033,548
$ 1,083,800
Cost of goods sold
(3,113,429 )
(1,621,580 )
(6,283,944 )
Gross Margin
(2,172,566 )
(588,032 )
(5,200,144)
Sales & Marketing
543,671
760,564
1,365,186
Product Development
805,550
814,945
1,932,705
General & Administrative
2,007,514
2,080,794
1,384,872
Total Operating Expenses
3,356,735
3,656,303
4,682,763
Loss from Operations
(5,529,301 )
(4,244,335 )
(9,882,907 )
Other Income (Expense)
4,922,883
(21,803,709 )
6,467,255
Net loss
$ (606,418 )
$ (26,048,044 )
$ (3,415,652 )
●
Revenue: The Company’s
May 7, 2024
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Exhibit 99.1
Volcon ePowersports Reports First Quarter 2024 Operational and Financial Results
AUSTIN, TX (May 7, 2024) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'', the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the quarter ended March 31, 2024
Company Highlights:
●
Nasdaq extension for compliance by June 24, 2024
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First Stag delivery to US Dealer and the Army Corp in May 2024
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Continued delivery of the Grunt EVO
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105 U.S. dealers and 9 international distributors covering 14 countries
As previously noted in our 2023 annual operational updates, Volcon presented its plan of compliance to the Nasdaq Hearing Panel on March 26, 2024 regarding ongoing compliance with the bid price and equity compliance. On April 2, 2024, Nasdaq informed the Company that it has provided an extension until June 24, 2024 for the Company to execute its plan of compliance.
On May 6, 2024, the Company shipped its first Stag to a U.S. dealer to fulfill our first consumer pre-order. The Company expects to ship additional Stags to U.S. dealers to begin fulfilling previously received pre-orders for the Stag from consumers who have paid a deposit. Although pre-orders are cancelable until the customer takes delivery of the Stag, the Company expects that we will be able to convert some of these pre-orders to sales in 2024. Also, as previously announced, the Company delivered its first Stag to the Army Corp of Engineers (Army Corp) on February 27, 2024, at its Fort Leonard Wood, Missouri facility. The Company expects to ship the Army Corp three more Stags on May 10, 2024 and anticipates additional deliveries to complete the Army Corp’s orders by July 2024.
Delivery of the Grunt EVOs continues to grow. Since we began taking on-line pre-orders for continental U.S. customers, we have seen an increase in EVO sales. Customer can pay a $100 deposit and order an EVO which will be delivered to a dealer closest to the customer. We expect that as we move into the Spring/Summer sales seasons we will see higher demand due to warmer weather in the U.S., and the previously discussed ramp up in manufacturing will allow us to fulfill the expected higher demand. As noted in our third quarter earnings release, we deferred the launch of the Runt LT, our smaller off-road motorcycle, to focus on distribution of the Grunt EVO as well as to start shipping the Stag. After further evaluation, we have concluded that we will no longer launch the Runt LT. We are currently evaluating options for new two-wheel products that we could develop and sell over the next 9 – 12 months. Brat sales continue to do well, and we also expect an increase in sales as we move into the Spring/Summer sales season.
To date, the Company’s U.S. dealer count is 105 dealers. We have signed two new dealers in California where there is a large population of off-road enthusiasts. Further, California, as well as other states, are implementing regulations on off-road vehicles to limit carbon emissions, which will help the adoption of EV in the off-road industry.
John Kim, CEO, notes “We’ve made major progress in the past three months. Our Stag UTV production has started, and we are beginning to make deliveries to our customers. Also, we’re seeing strong growth in the sales of the Grunt EVO, our offroad motorcycle. In the coming months, we’ll continue to move forward with reducing cost of operations and production.”
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Financial highlights:
3 Months Ended
March 31, 2024 December 31, 2023 September 30, 2023
Revenue $1,033,548 $1,083,800 $487,430
Cost of goods sold (1,621,580) (6,283,944) (3,542,468)
Gross Margin (588,032) (5,200,144) (3,055,038
Sales & Marketing 760,564 1,365,186 1,870,532
Product Development 814,945 1,932,705 2,983,197
General & Administrative 2,080,794 1,384,872 1,544,344
Total Operating Expenses 3,656,303 4,682,763 6,398,073
Loss from Operations (4,244,335) (9,882,907) (9,453,111)
Other Income (Expense) (21,803,709) (6,467,255) (1,874,785)
Net loss $(26,048,044) $(3,415,652) $(11,327,896)
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Revenue: The Company’s revenue for the first quarter of 2024 was $1.0 million, consistent with revenue for the fourth quarter of 2023, and an increase of $0.5 million over the third quarter of 2023. Revenue for the first quarter of 2024 includes Grunt EVO sales of $0.3 million compared to approximately $0.4 million and $37,000 of sales of Grunt EVOs in the fourth and third quarters of 2023, respectively. Brat revenue in the first quarter of 2024 was $0.5 million compared to Brat revenue of $0.6 million and $0.5 million in the fourth and third quarters of 2023, respectively.
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Operating Expenses: The Company’s operating expenses for the first quarter of 2024 were $3.7 million compared to $4.6 million and $6.4 million in the fourth and third quarters of 2023, respectively. Our sales and marketing costs have decreased as we h
Mar 28, 2024
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Exhibit 99.1
Volcon ePowersports Reports 2023 Operational and Financial Results
AUSTIN, TX (March 28, 2024) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'', the “Company” or “we”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the year ended December 31, 2023.
Company Highlights:
●
Completes hearing with Nasdaq
●
John Kim appointed as Chief Executive Officer and President
●
Delivered first Stag to the Army Corp. of Engineers on February 27, 2024
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Continued delivery of the Grunt EVO (1,189 pre-orders, 180 units shipped)
●
Discontinue sales of the Volcon Youth motorcycles
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103 U.S. dealers and 9 international distributors covering 14 countries
Volcon presented its plan of compliance to the Nasdaq Hearing Panel on March 26, 2024 regarding ongoing compliance with the bid price and equity compliance. Nasdaq is currently evaluating the Company’s plan and the timing of the decision is at the discretion of the Hearing Department. In the event that the Hearing Department does not agree with the Company’s plan or if the Hearing Committee provides the Company a stay from suspension and the Company is unsuccessful in carrying out its plan, the Company’s common stock would be delisted from Nasdaq and trading of the common stock could be conducted only in the over-the-counter market or on an electronic bulletin board established for unlisted securities such as the Pink Sheets or the OTC Bulletin Board.
John Kim, an independent board member of the Company since July 2021, agreed to assume the role of Chief Executive Officer and President effective February 4, 2024. Mr. Kim notes “I have a personal interest in off-road vehicles and personally own dune buggies and motorcycles. The opportunity to take the CEO role here at Volcon aligns my personal interest with the great products the Company has developed. I have taken the first couple of months to gain an understanding of where we are in product development and manufacturing of our products and have revamped the Company’s marketing strategy to align with industry and consumer interest in off-road electric vehicles. I look forward to the challenge of building Volcon to be a leader in off-road EV.”
The Company delivered its first Stag to the Army Corp of Engineers (Army Corp) on February 27, 2024 at its Fort Leonard Wood, Missouri facility. The Army Corp is testing the use of the Stag in humanitarian and military applications. Initial feedback from the Army Corp has indicated that so far they are pleased with how the Stag performs in relation to the Company’s specifications. The Company expects to deliver additional Army Corp units (8 more) over the next 3-6 months. In addition, the Company expects to deliver Stags to its U.S. dealers who are facilitating delivery of units to consumers who placed a reservation with the Company. To date, the Company has over 900 reservations for the Stag, which does not require a cash deposit, and over 500 pre-orders for the Stag from consumers who have paid a deposit. Although reservations and pre-orders are cancelable until the customer takes delivery of the Stag, the Company expects that we will be able to convert some of these pre-orders to sales in 2024.
Delivery of the Grunt EVO started in late September 2023 and our manufacturer has increased production of the Grunt EVO in the first quarter of 2024 and we expect that this will allow us to meet product demand as we move into the Spring/Summer sales seasons where we expect to see higher demand due to warmer weather in the U.S. As noted in our third quarter earnings release, we deferred the launch of the Runt LT, our smaller off-road motorcycle, to focus on distribution of the Grunt EVO as well as to start shipping the Stag. We are currently evaluating manufacturers to source components for the Runt LT as well as options for new two-wheel products that we could develop and sell over the next 9 – 12 months.
To date, the Company’s U.S. dealer count is 103 dealers. Although we have seen some attrition in dealers since our last earnings release, we believe the dealers we do have are strong dealer base and will continue to work to expand it in states like California where there is a large population of off-road enthusiasts. Further, California, as well as other states, are implementing regulations on off-road vehicles to limit carbon emissions, which will help the adoption of EV in the off-road industry.
1
Financial highlights:
3 Months Ended Year Ended December 31,
December 31, 2023 September 30, 2023 June 30, 2023 2023 2022
Revenue $1,083,800 $487,430 $519,300 $3,260,988 $4,546,686
Cost of goods sold (6,283,944) (3,542,468) (334,647) (11,391,040) (13,412,820)
Gross Margin (5,200,144) (3,055,038) 184,653 (8,130,052) (8,866,134)
Sales & Marketing 1,365,186 1,870,532 2,380,617 7,405,705 5,694,556
Product Development 1,932,705 2,983,197 1,166,732 7,868
Oct 31, 2023
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Exhibit 99.1
Volcon ePowersports Reports Third Quarter 2023 Operational and Financial Results
AUSTIN, TX (October 31, 2023) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'' or the “Company”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the third quarter of 2023.
Company Highlights:
·
Announced the Stag trim packages, including pricing, that includes four models with the Stag LTD being the first model we will be producing
·
As of September 30, 2023, we delivered the first Grunt EVOs to a customer and continue to fulfill orders to dealers and distributors in the fourth quarter of 2023
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As of September 30, 2023, we have 133 dealers and obtained an accounts receivable factoring agreement
·
Delayed the launch of the Runt LT until 2024
The Company continues to make significant progress on the development of the Stag. The Company completed all regulatory and safety tests for the Stag and continues to put test miles on the validation units. Jordan Davis, CEO notes, “Based on earlier regulatory and safety tests, we knew we were developing not only a great performance vehicle, but also one that will be safe for customers. The test results validate that the automotive grade components, although more expensive than UTV grade components, have proven to be the right choice for the Stag given the level of performance, without compromising safety, we have been working towards. Although this has resulted in higher vehicle cost requiring us to raise prices, we believe that this vehicle is at the top of its class, whether it be electric or gas powered.” The Company has asked that dealers, distributors, and consumers who placed pre-orders go back to the Company website or work with their regional sales managers to adjust their orders based on the new trim packages. Although the Company expected to begin delivery of the Stag in October 2023, due to a delay in certain parts, the launch is now anticipated to be November 2023.
Delivery of the Grunt EVO started in late September 2023 and as of date of this press release we have shipped over 50 Grunt EVOs to customers from our US warehouse in Round Rock, Texas and we have additional orders to fulfill both domestically as well as to our LATAM distributors. Although we expected that the Runt LT would launch in the fourth quarter of 2023, we have deferred the launch to focus on distribution of the Grunt EVO as well as to start shipping the Stag.
The Company’s US dealer count has declined by 10 dealers since June 30, 2023, as some dealers have terminated their dealer agreement due to higher prices on the Stag or due to credit terms not being extended by the Company due to the Company’s evaluation of creditworthiness. The Company has entered into an accounts receivable factoring arrangement with Prestige Capital Finance, LLC that will allow the Company to factor US dealer accounts receivables which will allow the Company to reinvest proceeds into additional purchases of inventory to fulfill customer orders. The Company has deferred the signing of Canadian dealers until 2024 at the earliest, due to delays in product availability and requirements to homologate all products that will be sold in Canada.
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Financial highlights:
3 Months Ended Nine Months Ended September
September 30, 2023
June 30,
2023
March 31,
2023
2023 2022
Revenue $487,430 $519,300 $1,170,458 $2,177,188 $3,795,065
Cost of goods sold (3,542,468) (334,647) (1,229,981) (5,107,096) (11,549,871)
Gross Margin (3,055,038) 184,653) (59,523) (2,929,908) (7,754,806)
Sales & Marketing 1,870,532 2,380,617 1,789,370 6,040,519 3,942,827
Product Development 2,983,197 1,166,732 1,786,351 5,936,280 6,775,768
General & Administrative 1,544,344 1,568,700 1,890,091 5,003,135 7,409,601
Total Operating Expenses 6,398,073 5,116,049 5,465,812 16,979,934 18,128,196
Loss from Operations (9,453,111) (4,931,396) (5,525,335) (19,909,842) (25,883,002)
Other Income (Expense) (1,874,785) (18,096,798) (1,774,134) (21,745,717) (554,989)
Net loss $(11,327,896) $(23,028,194) $(7,299,469) $(41,655,559) $(26,437,991)
·
Revenue: The Company’s revenue for the third quarter of 2023 was $0.5 million, consistent with the revenue for the second quarter 2023. Revenue for both quarters is primarily related to the sale of Brats with approximately $37,000 of sales of Grunt EVOs in the third quarter of 2023 compared to zero in the second quarter of 2023.Revenue in the first quarter of 2023 primarily related to Brats sold to US dealers and LATAM distributor initial orders being fulfilled in the first quarter of 2023.
·
Net loss: The Company’s net loss was $11.3 million for the third quarter of 2023 compared to a net loss of $23.0 million for the second quarter of 2023 and $7.3 million for the first quarter of 2023. Net loss in the third quarter of 2023 includes a write-down of $1.6 million related to Volcon Youth moto
Sep 6, 2023
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports Corrected Second Quarter 2023 Operational and Financial Results
AUSTIN, TX (September 6, 2023) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'' or the “Company”), the first all-electric, off-road powersports company, today corrected its operational highlights and financial results for the second quarter of 2023 that were previously released on August 11, 2023. The previously reported adjusted EBITDA amounts were incorrectly reported for the impacts of share-based compensation, depreciation and amortization expense and interest expense for the three and six months ended June 30, 2023. The GAAP reported amounts were correct in the previous earnings release. The Company also updated its expected shipping date of the Grunt EVO to customers to begin in September 2023.
Company Highlights:
●
As of June 30, 2023, we have 142 dealers
●
Taken delivery of our first eight Stag validation units in 2023 that include our custom suspension parts in addition to the GM propulsion components and expect to launch the Stag to dealers in the fourth quarter of 2023
●
Have taken pre-orders for the Stag of more than $115 million of expected revenue if all orders are fulfilled1
●
Grunt EVO launch expected in the third quarter of 2023 and Runt LT launch expected in the fourth quarter of 2023
The Company’s US dealer count has remained consistent with the count as of March 31, 2023 (143). The Company has deferred the signing of Canadian dealers until 2024 due to delays in product availability and requirements to homologate all products that will be sold in Canada.
The Company has made significant progress on the development of the Stag and has put thousands of miles of testing on the validation units received thus far. Jordan Davis, CEO notes, “Over the past quarter, we have conducted rigorous testing of the Stag and have learned a lot from the results. We have gone through dozens of testing iterations, having identified the weak points so common in off-road vehicle design, and have improved the safety, reliability, and durability of our parts and sub-assemblies. So much so, that to a great extent many of our components and assemblies are automotive grade, as the power and torque the Stag produces via its electric drivetrain has been too much for standard UTV parts. While testing has delayed the expected third quarter launch of the Stag, we remain confident that deliveries of the Stag will begin in the fourth quarter of 2023.” Pre-orders and interest for the Stag from dealers and consumers continues to be strong and we continued to take waitlist orders from interested dealers and end users alike during the second quarter of 2023.
Our third-party manufacturer has concluded that they will assemble
the Grunt EVO, Runt LT and Stag in their facility in Puebla, Mexico, rather than at Electrameccanica Motor Vehicles’ facility in Mesa, Arizona. Davis comments, “Although having final assembly of our products in Mexico is a significant change from our third-party’s original plans, this does not result in a significant increase in cost of these vehicles to our customers. We support the decision our partner made to move production to Mexico, as this provides for additional control of vertically integrated processes, additional manufacturing stability, as well as accretive margin in that we will not be paying another party to use their facility or labor. This also provides distribution efficiency for our Latin American and South American partners.”
Production of the Grunt EVO has started as of the date of this press release and we expect delivery of the vehicle to customers in September 2023. We expect that the Runt LT to launch in the fourth quarter of 2023 due to supply chain shortages of certain parts.
1 Pre-orders are cancelable until they are fulfilled.
1
Financial highlights:
3 Months Ended Six Months Ended
June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2023 June 30, 2022
Revenue $519,300 $1,170,458 $751,621 $1,689,758 $3,552,355
Cost of goods sold (334,647) (1,229,981) (1,862,949) (1,564,628) (9,537,042)
Gross Margin 184,653 (59,523) (1,111,328) 125,130 (5,984,687)
Sales & Marketing 2,380,617 1,789,370 1,751,729 4,169,987 2,660,813
Product Development 1,166,732 1,786,351 1,680,389 2,953,083 4,598,421
General & Administrative 1,568,700 1,890,091 1,637,176 3,458,791 5,324,391
Total Operating Expenses 5,116,049 5,465,812 5,069,294 10,581,861 12,583,625
Loss from Operations (4,931,396) (5,525,335) (6,180,622) (10,456,731) (18,568,312)
Other Income (Expense) (18,096,798) (1,774,134) (1,616,791) (19,870,932) 29,503
Net loss $(23,028,194) $(7,299,469) $(7,797,413) $(30,327,663) $(18,538,808)
●
Revenue: The Company’s revenue for the second quarter of 2023 was $0.5 million, a decrease of $0.7 million over the first quarter 2023. The decrease over the first quarter of 2023 was partially due to a decrease in Grunts
Aug 11, 2023
2 volcon_ex9901.htm VOLCON EPOWERSPORTS REPORTS SECOND QUARTER 2023 OPERATIONAL AND FINANCIAL RESULTS
Exhibit 99.1
Volcon ePowersports Reports Second Quarter 2023 Operational and Financial Results
AUSTIN, TX (August 11, 2023) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'' or the “Company”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the second quarter of 2023.
Company Highlights:
●
As of June 30, 2023, we have 142 dealers
●
Taken delivery of our first eight Stag validation units in 2023 that include our custom suspension parts in addition to the GM propulsion components and expect to launch the Stag to dealers in the fourth quarter of 2023
●
Have taken pre-orders for the Stag of more than $115 million of expected revenue if all orders are fulfilled1
●
Grunt EVO launch expected in the third quarter of 2023 and Runt LT launch expected in the fourth quarter of 2023
The Company’s US dealer count has remained consistent with the count as of March 31, 2023 (143). The Company has deferred the signing of Canadian dealers until 2024 due to delays in product availability and requirements to homologate all products that will be sold in Canada.
The Company has made significant progress on the development of the Stag and has put thousands of miles of testing on the validation units received thus far. Jordan Davis, CEO notes, “Over the past quarter, we have conducted rigorous testing of the Stag and have learned a lot from the results. We have gone through dozens of testing iterations, having identified the weak points so common in off-road vehicle design, and have improved the safety, reliability, and durability of our parts and sub-assemblies. So much so, that to a great extent many of our components and assemblies are automotive grade, as the power and torque the Stag produces via its electric drivetrain has been too much for standard UTV parts. While testing has delayed the expected third quarter launch of the Stag, we remain confident that deliveries of the Stag will begin in the fourth quarter of 2023.” Pre-orders and interest for the Stag from dealers and consumers continues to be strong and we continued to take waitlist orders from interested dealers and end users alike during the second quarter of 2023.
Our third-party manufacturer has concluded that they will assemble
the Grunt EVO, Runt LT and Stag in their facility in Puebla, Mexico, rather than at Electrameccanica Motor Vehicles’ facility in Mesa, Arizona. Davis comments, “Although having final assembly of our products in Mexico is a significant change from our third-party’s original plans, this does not result in a significant increase in cost of these vehicles to our customers. We support the decision our partner made to move production to Mexico, as this provides for additional control of vertically integrated processes, additional manufacturing stability, as well as accretive margin in that we will not be paying another party to use their facility or labor. This also provides distribution efficiency for our Latin American and South American partners.”
Production of the Grunt EVO has started as of date of this press release and we expect delivery of the vehicle to customers in August 2023. We expect that the Runt LT to launch in the fourth quarter of 2023 due to supply chain shortages of certain parts.
1 Pre-orders are cancelable until they are fulfilled.
1
Financial highlights:
3 Months Ended Six Months Ended
June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2023 June 30, 2022
Revenue $519,300 $1,170,458 $751,621 $1,689,758 $3,552,355
Cost of goods sold (334,647) (1,229,981) (1,862,949) (1,564,628) (9,537,042)
Gross Margin 184,653 (59,523) (1,111,328) 125,130 (5,984,687)
Sales & Marketing 2,380,617 1,789,370 1,751,729 4,169,987 2,660,813
Product Development 1,166,732 1,786,351 1,680,389 2,953,083 4,598,421
General & Administrative 1,568,700 1,890,091 1,637,176 3,458,791 5,324,391
Total Operating Expenses 5,116,049 5,465,812 5,069,294 10,581,861 12,583,625
Loss from Operations (4,931,396) (5,525,335) (6,180,622) (10,456,731) (18,568,312)
Other Income (Expense) (18,096,798) (1,774,134) (1,616,791) (19,870,932) 29,503
Net loss $(23,028,194) $(7,299,469) $(7,797,413) $(30,327,663) $(18,538,808)
●
Revenue: The Company’s revenue for the second quarter of 2023 was $0.5 million, a decrease of $0.7 million over the first quarter 2023. The decrease over the first quarter of 2023 was partially due to a decrease in Grunts sold in the second quarter of 2023 (none) compared to the first quarter of 2023 as the Grunt EVO launch was delayed due to part shortages and a decrease in Brats sold in the second quarter of 2023 compared to the first quarter of 2023, primarily due to US dealers and LATAM distributor initial orders being fulfilled in the first quarter of 2023 and reorders did not occur in the second quarter of 2023.
●
Net
May 5, 2023
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports First Quarter 2023 Operational and Financial Results
AUSTIN, TX (May 5, 2023) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'' or the “Company”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the first quarter of 2023.
Company Highlights:
●March 31, 2023 we have 143 dealers
●Have taken pre-orders for the Stag of more than $113 million of expected revenue if all orders are fulfilled1
●Taken delivery of our first five Stag validation units in 2023 that include our custom suspension parts in addition to the GM propulsion components
●Grunt EVO and Runt LT launch expected in the second quarter of 2023
●Signed Brazil distributor agreement
The Company had a net loss of 8 dealers and Stag pre-orders in the quarter due to dealer terminations. Jordan Davis, CEO notes “we stated in our press release announcing our annual 2022 results that we purposely slowed signing of powersports dealers as management expected product shortages in transitioning the manufacturing of the Grunt to a third-party manufacturer. The shortage of certain parts due to supply chain delays also was a factor. The Company still expects to have over 250 dealers in the US and Canada signed by the end of 2023. Preorders for the Grunt EVO and Runt LT from dealers and distributors began in April 2023 and shipments are expected to begin in the second quarter 2023. Pre-orders and interest for the Stag from dealers and consumers continues to be strong and we continued to take waitlist orders from interested dealers and end users alike during the first quarter of 2023, with shipments expected to begin in late second quarter or early third quarter 2023.
Expecting shipping to begin in the second quarter of 2023, we also signed an agreement with a distributor in Brazil in March 2023 with minimum purchase requirements of $12 million (net of discounts and rebates) of our products over three years.”
Our third-party manufacturer has entered into an agreement to have
Electrameccanica Motor Vehicles (“EMV”) (Nasdaq ticker SOLO) complete final assembly of the Grunt EVO, RUNT and Stag in their Mesa, Arizona facility. Vertical integration of components such as frames, panels, and suspension components will continue to be done in our third-party manufacturer’s Puebla, Mexico facility for the foreseeable future. Davis comments “having final assembly of our products in the United States allows for better distribution to our domestic customers and reduces costs to move key components, primarily the GM propulsion components for the Stag. We will continue exploring gains in distribution efficiency for our Latin American and South American partners as well.”
1 Pre-orders are cancellable until they are fulfilled.
1
The Stag’s development continued to progress during the first quarter of 2023. In early 2023, Volcon took delivery of the first three Stag validation units that include the Volcon designed suspension, GM propulsion components, as well as Elka shocks. The Company has taken delivery of two more Stag validation units. Christian Okonsky, Chief Technology Officer notes, “These additional advanced validation units continue to improve in performance, fitment, and finish and we are pleased with the progress we are making as each additional unit is fielded.” Delivery of the Stag is expected to begin late in the second quarter of 2023 or early third quarter of 2023.
We continue to receive and test iterations of the Grunt EVO, the replacement for the Grunt, which includes replacing the chain drive with a Gates belt drive, an improved rear suspension and ergonomically improved seat, as well as modifications to styling. The Grunt EVO will also be available in three colors. Davis comments “the improvements the Grunt EVO provides in comparison to the Grunt demonstrates our commitment to continuously improve our products.” Similarly, we continue to receive and test iterations of the Runt LT, Grunt EVO’s baby brother, which has a hub motor rather than a chain or belt drive and will also be available in two colors. Okonsky notes, “The Runt LT’s performance has met the expectations of what we envisioned, providing an option for smaller statured riders and those with more limited space to ride.” We expect both the Grunt EVO and Runt LT to be available for sale in the second quarter of 2023.
Financial highlights:
3 Months Ended
March 31,
2023
December 31,
2022
September 30,
2022
Revenue $1,170,458 $751,621 $242,710
Cost of goods sold (1,229,981) (1,862,949) (2,012,829)
Gross Margin (59,523) (1,111,328) (1,770,119)
Sales & Marketing 1,789,370 1,751,729 1,282,014
Product Development 1,786,351 1,680,389 2,177,347
General & Administrative 1,890,091 1,637,176 2,085,211
Total Operating Expenses 5,465,812 5,069,294 5,544,572
Loss from Operations (5,525,335) (6,180,622) (7,314,691)
Other Inc
Mar 7, 2023
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports Annual 2022 Operational and Financial Results
AUSTIN, TX (March 6, 2023) - Volcon Inc. (NASDAQ: VLCN) (“Volcon'' or the “Company”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for fiscal year 2022.
Company Highlights:
·Through December 31, 2022 signed 151 dealers
·Delivered the first 2023 Volcon Brats to customers in December 2022
·Have taken pre-orders for the Stag of more than $116 million if all orders are fulfilled[1]
·Taken delivery of our first three Stag validation units in early 2023 that include our custom suspension parts in addition to the GM propulsion components
·Grunt EVO and Runt launch expected in the second quarter of 2023
We signed 7 new dealers in the fourth quarter of 2022. Jordan Davis, CEO notes “In the fourth quarter of 2022, we purposely slowed signing of powersports dealers as we expected product shortages as we transitioned the manufacturing of the Grunt to a third party manufacturer and dealt with the shortage of certain parts due to supply chain delays. In February 2023 we hired two new regional sales managers who will cover the Northeast and Southwest US, including California, where we already have dealers who have expressed an interest in carrying the Volcon product line up. We have also hired a regional sales manager to build our dealer network in Canada. We expect to have over 250 dealers in the US and Canada signed by the end of 2023. Pre-orders and interest for the Stag from dealers and consumers continue to be strong. As of the date of our third quarter earnings release we had received pre-orders exceeding our initial planned production volume for 2023 and we continued to take waitlist orders from interested dealers and end users alike during the fourth quarter of 20221.
We launched the Volcon Brat, the Company’s first E-Bike in September 2022, and began taking pre-orders during the third quarter of 2022. We began shipping the Brat to customers in December 2022 and we recognized revenue of approximately $500,000 in the fourth quarter of 2022. In February 2023, we began selling Brats on a direct-to-consumer basis in the US. Customers can purchase a Brat from our website and have it delivered to a location specified by the customer. Davis notes “the launch of the Brat provides Volcon with an entry into the very popular E-Bike product category and it’s another way to connect with consumers who are interested in electric vehicle options.”
The Stag’s development has progressed significantly during the fourth quarter of 2022 and into early 2023. In early 2023, Volcon took delivery of the first three Stag validation units that include the Volcon designed suspension, GM propulsion components, as well as Elka shocks. Christian Okonsky, Chief Technology Officer notes “although there is still significant design and validation work to be completed, these advanced validation units have met our expectations for design and engineering and we expect to see continued improvement as we field additional iterations.” Delivery of the Stag is expected to begin late in the second quarter of 2023.
[1] Pre-orders are cancellable until they are fulfilled.
1
In 2023, we received the first prototypes of the Grunt EVO, the replacement for the Grunt, which includes replacing the chain drive with a Gates belt drive, an improved rear suspension and ergonomically improved seat, as well as modifications to styling. The Grunt EVO will also be available in three colors. In 2023 we also received the first prototypes of the Runt, a smaller version of the Grunt for smaller statured riders. The Runt has a hub motor rather than a chain or belt drive and will also be available in two colors. Davis comments “we have taken feedback from customers on the Grunt and improved the product with the new features included in the Grunt EVO. We are also excited to finally bring the Runt to market as there has been interest in this product since we first announced we would design and build it in 2020. While we abhor delays, it was in the best interest of the company and shareholders to redesign the bike and explore more profitable choices for manufacturing and component sourcing.” We expect both the Grunt EVO and Runt to be available for sale in the second quarter of 2023.
Financial highlights:
3 Months Ended Year Ended
December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021
Revenue $751,621 $242,710 $373,752 $4,546,686 $448,819
Cost of goods sold (1,862,949) (2,012,829) (9,330,763) (13,412,820) (10,507,454)
Gross Margin (1,111,328) (1,770,119) (8,957,011) (8,866,134) (10,058,635)
Sales & Marketing 1,751,729 1,282,014 934,875 5,694,556 2,872,620
Product Development 1,680,389 2,177,347 2,869,605 8,456,157 10,465,186
General & Administrative 1,637,176 2,085,211 1,149,372 9,046,778 15,783,
Nov 10, 2022
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports Third Quarter 2022 Operational and Financial Results
AUSTIN, TX (November 10, 2022) - Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the third quarter of 2022.
Company Highlights:
●Through September 30, 2022 signed 144 dealers
●Have taken pre-orders for the Stag and Brat through September 30, 2022 of more than $100 million if all orders are fulfilled[1]
●Launched the 2023 Volcon Brat on September 8, 2022
●Awarded first Stag UTV pre-order with the US Army
●Closed $27.2 million senior convertible notes offering with warrants for net proceeds of $22.3 million
●Closed manufacturing operations August 25, 2022 and outsourced the assembly of the Grunt to GLV Ventures anticipated to improve cash flow and profitability
Jordan Davis, CEO notes “We continue to have success signing top tier powersports dealers as we have increased our dealer count since June 30, 2022 by more than 40 dealers as of September 30, 2022. We expect to have over 175 signed by the end of 2022. Pre-orders for the Stag from dealers and consumers continue to be strong. We have received pre-orders exceeding our initial planned production volume for 2023 and we will continue to take waitlist orders from interested dealers and end users alike1. Delivery of the Stag is expected to begin in late in the second quarter of 2023.
Davis continues “we have received our first Stag pre-order from the US Army and have seen interest in our vehicles by the US military and state and local governments as these entities continue to evaluate electrification of their vehicle fleets. We launched the Volcon Brat, the Company’s first E-Bike, and began taking pre-orders during the third quarter of 2022. Through September 30, 2022 we have taken pre-orders from dealers and consumers of more than $2.8 million if all pre-orders are converted to sales1.”
Finally, Davis notes “we believe the proceeds received from our senior convertible notes offering will provide us the funds to operate our business to grow our brand and launch our products. We have taken cost reduction measures by closing our manufacturing operations and reducing headcount in other areas of the Company to support our vehicle development strategy. We have reinvested some of these savings to market our products and our brand.”
[1] Pre-orders are cancellable until they are fulfilled.
1
Financial highlights:
●Revenue: The Company’s revenue for the third quarter of 2022 was $0.3 million, a decrease of $2.1 million over the second quarter 2022, and a decrease of $0.9 million over the first quarter of 2022 revenue. The decrease was partially due to promotional rebates provided to dealers and distributors in the third quarter of 2022 on inventory held by them as of August 1, 2022 resulting in $0.8 million being recorded to reduce revenue. The rebate is provided as a year-end incentive to dealers and distributors to sell their remaining 2022 Model Year Grunt inventory. In addition, the Company sold fewer Grunts compared to the second quarter of 2022 due to shortages on certain parts due to supply chain issues, the closing of the Company’s manufacturing operations in August 2022 and moving inventory and equipment to the third-party manufacturer. Manufacturing of the Grunt by the third-party manufacturer commenced in November 2022.
●Net loss: The Company’s net loss was $7.9 million for the third quarter of 2022, compared to a net loss of $9.9 million for the second quarter of 2022 and a net loss of $8.6 million for the first quarter of 2022.
●Adjusted EBITDA: The Company’s adjusted EBITDA for the third quarter of 2022 was a loss of $6.6 million compared to a loss of $9.1 million for the second quarter of 2022 and a loss of $6.9 million for the first quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure, which we reconcile below and define as net loss before interest, taxes, depreciation and amortization, loss on repayment of promissory notes and share based compensation expenses.
For the latest company updates, follow Volcon on YouTube, Facebook, Instagram, and LinkedIn. Investor information about the company, including press releases, company SEC filings, and more can be found at http://ir.volcon.com.
About Volcon
Volcon Inc. is the first all-electric, powersports company producing
high-quality off-road vehicles. Based in Round Rock, Texas, Volcon joins many major electric vehicle manufacturers near Austin, Texas, an area that is poised to become the electric vehicle capital of the world.
Volcon was founded with the mission to enhance the outdoor experience while reducing the industry’s environmental footprint so that adventurers and workers alike can enjoy the outdoors and preserve it for generations to come. Volcon produces all-electric, off-road vehicles that are designed
Aug 15, 2022
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports Second Quarter 2022 Operational and Financial Results
AUSTIN, TX (August 15, 2022) - Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company, today reported its financial results for the second quarter of 2022.
Company Highlights:
·Through June 30, 2022 signed over 100 dealers
·Fulfilled substantially all dealer initial Grunt orders
·Launched the 2023 Volcon Stag July 1, 2022 and have taken pre-orders of over $70 million if all orders are fulfilled[1]
·Signed agreement with General Motors (GM) to use GM’s electric propulsion system to power all Volcon off-road utility terrain vehicles (“UTV"), including the Company’s flagship UTV, the Stag, as well as the Company's planned “Project X” vehicle
Jordan Davis, CEO notes “We continue to have success signing top tier powersports dealers, and we expect to have over 200 signed by the end of 2022. We focused on supplying our dealers with their initial shipment of Grunts and look to continue to fulfill additional orders as demand increases.”
Davis continues “We have successfully launched the Stag, the Company’s first four-wheel UTV and pre-orders from dealers and consumers has been strong. We expect to obtain pre-orders covering our initial planned production volume for 2023, at which point we will continue to take waitlist orders from interested dealers and end users alike. Delivery of the Stag is expected late in the second quarter of 2023. We also continue to develop exciting new products and look forward to a number of product launches over the coming quarters. The agreement from General Motors provides the Stag and all future Volcon UTVs with a proven platform to provide exceptional performance.”
Financial highlights:
·Revenue: The Company’s revenue was $2.4 million, an increase of $1.2 million over the first quarter 2022, and an increase of $2.0 million over total fiscal 2021 revenue.
·Net loss: The Company’s net loss was $9.9 million for the second first quarter of 2022, compared to a net loss of $8.6 million for the first quarter of 2022 and $14.8 million for the fourth quarter of 2021 (fourth quarter 2021 also included an inventory write down of $5.5 million to adjust inventory to its net realizable value compared to a write down of $0.6 million for the second quarter of 2022).
·Adjusted EBITDA: The Company’s adjusted EBITDA for the second quarter of 2022 was a loss of $9.1 million compared to a loss of $6.9 million first quarter of 2022 and a loss of $13.5 million for the fourth quarter of 2021. Adjusted EBITDA is a non-GAAP financial measure, which we reconcile below and define as net loss before interest, taxes, depreciation and amortization, loss on repayment of promissory notes and share based compensation expenses.
For the latest company updates, follow Volcon on YouTube, Facebook, Instagram, and LinkedIn. Investor information about the company, including press releases, company SEC filings, and more can be found at http://ir.volcon.com.
[1] Pre-orders are cancellable until they are fulfilled.
1
About Volcon
Volcon Inc. is the first all-electric, powersports company producing
high-quality off-road vehicles. Based in Round Rock, Texas, Volcon joins many major electric vehicle manufacturers near Austin, Texas, an area that is poised to become the electric vehicle capital of the world.
Volcon was founded with the mission to enhance the outdoor experience while reducing the industry’s environmental footprint so that adventurers and workers alike can enjoy the outdoors and preserve it for generations to come. Volcon produces all-electric, off-road vehicles that are designed to elevate the adventure experience and help people get things done at work and on the home front.
Volcon’s first product, the innovative Grunt combines a fat tire physique with high-torque electric power and a near-silent drive train which started shipping in September of 2021. Future models may include the Runt, which is a youth-sized version of the groundbreaking Grunt and an eBike, the Brat. The Stag and Project X are expected to be Volcon’s venture into the rapidly expanding world of UTVs and coming in future years as the company continues to expand.
Volcon Contacts
For Media: media@volcon.com
For Dealers: dealers@volcon.com
For Investors: investors@volcon.com
For Marketing: marketing@volcon.com
For more information on Volcon or to learn more about its complete motorcycle and side-by-side line-up, visit: www.volcon.com
We believe presenting adjusted EBITDA provides management and investors consistency and facilitates period to period comparisons of operations, as it eliminates the effects of certain variations to overall performance.
The following table reconciles net loss to adjusted EBITDA for the three months ended June 30, 2022, March 31, 2022 and December 31,
Mar 24, 2022
2 volcon_ex9901.htm
Exhibit 99.1
Volcon ePowersports Reports 2021 Financial Results and Provides Corporate Review
AUSTIN, TX (March 23, 2022) - Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), an all-electric, off-road powersports company, today reported its financial results for 2021. The Company also provided a corporate update on its business from the past calendar year.
Company Highlights:
·Launched development of our two and four-wheeled vehicles in October 2020, less than one year after the formation of the Company.
·Began taking direct-to-consumer (DTC) orders for the Grunt, our first motorcycle, in late 2020.
·Shipped our first Grunt in September 2021, less than a year from the start of vehicle development.
·Completed our initial public offering (IPO) and listing on the NASDAQ under the ticker symbol VLCN in October 2021 and a follow-on public offering in February 2022.
·Signed distribution agreements for Mexico, Costa Rica, Paraguay, Guatemala, Belize and Panama with initial orders received in 2021 and first shipments beginning in January 2022.
·Through March 2022 signed over 70 dealers with nearly 370 dealership applications now in the queue.
Jordan Davis, CEO notes, “Volcon has closed out 2021 with some great accomplishments. Starting an EV company and delivering the first vehicle within a year of vehicle development is very rare in this industry, yet we were able to accomplish this even with significant challenges such as the pandemic and supply chain constraints, particularly with respect to battery cells and plastic. By opportunistically buying in advance of our needs, we were able to keep manufacturing lines operating, albeit slower than we would have liked.” Davis continued “We are working to broaden our supply base by leveraging our existing relationships and establishing new ones.”
Davis continued, “We identified a number of operational areas for improvement to meet our scaling demand. In December 2021, we redesigned and relocated our Grunt manufacturing line. This move ultimately improved single shift production capacity to nearly five times that of our previous facility.”
“In January 2022, the Company hired Stephanie Davis as chief operating officer. She brings years of experience in manufacturing, including four wheel drive vehicles. Stephanie Davis notes, “While we hope to make additional improvements, we are already seeing improvement in efficiency and throughput. Throughout the upcoming year, we intend to focus on continuous improvement and lean manufacturing disciplines, as we continue to ship Grunts to market.”
Greg Endo, CFO, comments, “We have improved our operations in ways we believe will reduce costs and increase output. However, we recognize the current challenges in the global economy and especially the financial markets. The costs to develop our vehicles are high, and we will need to continue raising capital to meet our objective of being the leader in the EV off-road powersports industry. We are focused on creating long-term shareholder value by reducing costs and making investments in people and processes to develop, manufacture, and sell our vehicles that we believe will make Volcon the most recognized brand in the EV off-road powersports industry. In the short run, this will continue to be costly, but we believe it is the best plan for setting the company up for financial success in the long run.”
Finally, Davis notes “looking forward, we are focused on increasing revenue, improving profitability, and expanding our product range in part through new offerings in the motorcycle division, a foray into eBikes, and the further development of our flagship UTV, the Stag. We welcome the curves in the trail as we navigate the road ahead.”
1
Financial highlights:
·First Grunt delivery to customers: On September 15, 2021, Volcon delivered the first Grunt and has delivered a total of 75 Grunts to customers in 2021 and recognized $449K in total revenue in 2021, which includes accessory sales.
·Net loss: The Company’s net loss for 2021 was $40.1 million. The loss includes share-based compensation expense of $14.6 million and a write down of inventory and inventory deposits of $5.5 million in the fourth quarter to adjust these balances to their net realizable value.
·Adjusted EBITDA: The Company’s adjusted EBITDA for 2021 was a loss of $24.4 million. Adjusted EBITDA is a non-GAAP financial measure, which we reconcile below and define as net loss before interest, taxes, depreciation, and amortization, loss on repayment of promissory notes, and share-based compensation expenses.
·Follow on public offering: Volcon completed a follow-on public offering on February 1, 2022, in which it sold 6.667 million shares of common stock and raised over $18 million after expenses and commissions to underwriters.
·Sustaining engineering group has made progress to reduce Grunt production costs in an effort to become profitable and improve the stability
Nov 15, 2021
2 volcon_ex9901.htm
Exhibit 99.1
Volcon Reports Third Quarter 2021 Financial Report and Provides Corporate Update
AUSTIN, TX (November 15, 2021) - Volcon Inc. (NASDAQ: VLCN), the first all-electric, off-road powersports company, today reported its financial results for the quarter ended September 30, 2021. The Company also provided a corporate update on its business for 2021.
Recent Company Highlights:
●Listed on the NASDAQ stock exchange
●Began shipping Grunts in September 2021 to customers across the US and Latin America
●Grew to over 50 team members as of October 30th, 2021.
●Commenced launch of nationwide dealership network to bring Volcon products to market across the United States
●Expanded into six Latin American markets including Mexico, Costa Rica, Paraguay, Guatemala, Belize and Panama
●Expanded its Round Rock, Texas facilities from one building to three
●Partnered with Martin Technologies for the development of the Stag electric side-by-side UTV program.
●Covered by Bloomberg, CNET, Forbes, Yahoo, Gizmodo, Electrek, Jalopnik, Cycle World, Gear Patrol, Robb Report, Inside Hook, Austin Business Journal, Maxim, and many more
●Released Phase I version of its highly anticipated mobile app for Apple iOS and Android devices
●Partnered with world class archer and outdoorsman John Dudley to bring the Volcon brand into the hunting world
●Executed a nationwide consumer tour in Dallas (TX), Birmingham (AL), University Park (PA), North Branch (MN), Costa Mesa (CA), Flagstaff (AZ), Arrington (VA), Moultire (GA)
Management Commentary:
“Volcon is the most exciting and fastest growing company I’ve ever been involved with, having grown from just two founders in mid 2020, to a now publicly traded company listed on the NASDAQ.” said Jordan Davis, Volcon’s CEO. “The response to our official launch has been overwhelming and a confirmation to all of us that now is the time to be an electric vehicle manufacturer in the off-road powersports industry. The excitement has carried over to the press, where we’ve received solid coverage and great reviews from some of the top publications in the industry.
“Over the next five years, we know the move from internal combustion engines to electric will be dramatic and our five year goal is to become the largest off-road 100% dedicated EV powersports manufacturer in this space. Being a young, ambitious, fast-moving company gives us a strategic advantage in the marketplace as bigger companies tend to move much slower when having to pivot to new or emerging technologies. This is reflected by our success in having gone from an idea for the Grunt in 2020, to shipping production units to customers in September of 2021.”
Davis continued, “As we begin to grow our nationwide dealer network, which we just announced on November 8, 2021, off-road enthusiasts will now have the opportunity to see, touch, and feel our vehicles first-hand to appreciate the level of quality our products have. As well, our vehicles and accessories will be sold globally in a planned three-phase rollout to include Latin America in 2021, Canada, Europe, and Africa in 2022, Southeast Asia and Australia in 2023. Another exciting announcement that we recently made is that we’ve partnered with Martin Technologies to bring our automotive-industry expertise to our electric side-by-side UTV program for the Stag. They will be providing chassis and peripheral component development for the all-electric UTV, including working with us on the battery, power electronics systems, vehicle integration methodologies, and new eSPDM Smart Wiring Technology.”
“As we continue to grow, it’s of the utmost importance to us that we meet the needs and expected quality of our customers. As such, we launched the Volcon Center of Excellence, which focuses on building an environment and culture of continuous improvement through lean methodologies and mindset. We identified a huge opportunity to build in continuous improvement not only in process and procedure, but into who we are as a company. It’s widely known and accepted that lean, kaizen, and continuous improvement environments lead to improved quality and profitability, not to mention a level of customer satisfaction we believe will eclipse that of our competitors. These activities, along with a number of other key projects launched during the quarter, have positioned us well in the pursuit of our strategic goals.”
Q3 highlights include:
●First Grunt delivery to customers: On September 15, 2021, Volcon delivered its first Grunts to customers.
●IPO: Volcon completed its IPO on October 8, 2021 and sold 3.025 million shares of common stock and raised over $15 million after expenses and commissions to underwriters and raised an additional $1.1 million October 29, 2021 after the underwriter exercised their over allotment option to sell an additional 226,875 shares of common stock.
●Continuous Improvement: Sustaining engineering gro
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