Thunder Power Reports Unaudited Second Quarter 2024 Financial Results

Rhea-AI Summary

Thunder Power Holdings (Nasdaq: AIEV) reported its Q2 2024 unaudited financial results. Key highlights include:

- Zero revenues, unchanged from Q2 2023
- Operating expenses increased to $1.3 million from $0.7 million, mainly due to a one-time $1.0 million share-based compensation expense
- Net loss of $1.3 million, up from $0.7 million in Q2 2023

Recent developments:
- Completed business combination with Feutune Light Acquisition on June 21, 2024
- Entered into a $100 million Common Stock Purchase Agreement with Westwood Capital Group on August 20, 2024

Positive

• Completed business combination and began trading on Nasdaq Global Market
• Secured $100 million forward stock purchase facility for potential future funding

Negative

• Zero revenue for the quarter
• Net loss increased to $1.3 million from $0.7 million year-over-year
• Operating expenses rose to $1.3 million from $0.7 million year-over-year

Financial Analyst

Thunder Power's Q2 2024 results reveal a company still in its pre-revenue stage, with some concerning financial metrics. The nil revenue indicates no product sales yet, while operating expenses increased by 85.7% year-over-year to $1.3 million. This surge was primarily due to a one-time $1 million share-based compensation expense related to their recent business combination.

The net loss doubled to $1.3 million, raising questions about the company's cash burn rate and path to profitability. However, the $100 million forward stock purchase facility could provide important funding for operations and product development. Investors should closely monitor the company's progress in transitioning from development to production and revenue generation in the competitive EV market.

EV Industry Expert

Thunder Power's ambition to enter the premium EV market faces significant challenges. With established players like Tesla and traditional automakers rapidly expanding their EV offerings, Thunder Power's lack of revenue and increasing losses raise concerns about its ability to compete effectively.

The company's focus on "stylish, innovative and cost-efficient premium EVs" is a common strategy in the sector. However, without concrete details on their proprietary technologies or unique selling propositions, it's difficult to assess their potential market impact. The success of their modular designs and ability to quickly bring products to market will be important in determining whether they can capture meaningful market share as claimed.

Market Research Analyst

Thunder Power's recent Nasdaq listing through a business combination with FLFV could potentially increase its visibility and access to capital. However, the company faces an uphill battle in the crowded EV market. With no revenue and increasing losses, Thunder Power needs to demonstrate rapid progress to maintain investor confidence.

The $100 million forward stock purchase agreement provides a financial cushion but may lead to dilution for existing shareholders. Key factors to watch include:

• Timeline for product launch and initial sales
• Differentiation strategy in the premium EV segment
• Partnerships or collaborations to accelerate market entry

Investors should approach with caution, given the high-risk nature of pre-revenue EV startups in a competitive landscape.

WILMINGTON, Del., Sept. 4, 2024 /PRNewswire/ -- 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 June 30, 2024 ("Second Quarter 2024").

Second Quarter 2024 Financial Highlights

• Revenues were nil, consistent with the same period in 2023.
• Operating expenses were approximately $1.3 million, compared to $0.7 million in the prior year. This increase was mainly due to a one-time share-based compensation expense of about $1.0 million from issuing shares to three independent directors of Feutune Light Acquisition Corporation ("FLFV") as part of the Company's recent business combination. This rise was partially offset by a decrease of around $0.5 million in share-based settlement expenses compared to the same quarter last year, when shares were issued to its controlling shareholder to settle liabilities.
• As a result, net loss was approximately $1.3 million, compared to $0.7 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 as summarized below and 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."

Recent Developments

On June 21, 2024, the Company successfully completed its business combination with FLFV, marking a significant milestone in its growth strategy. Following the merger, its common stock began trading on the Nasdaq Global Market under the symbol "AIEV."

On August 20, 2024, the Company entered into certain Common Stock Purchase Agreement with Westwood Capital Group LLC, allowing the Company to issue and sell up to $100 million in newly issued shares of common stock over a 36-month period, subject to specific conditions, including the filing and effectiveness of a resale registration statement with the SEC.

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 June 30, 2024 and December 31, 2023
(Expressed in U.S. dollar, except for the number of shares)
		June 30, 2024				December 31, 2023
						(Audited)
ASSETS
Current Assets
Cash		$	921,349			$	196,907
Deferred offering costs			—				429,750
Prepaid expenses for forward purchase contract			13,264,964				—
Other current assets			359,175				623,221
Total Current Assets			14,545,488				1,249,878
Non-current Assets
Property and equipment, net			860				1,974
Right of use assets			18,109				5,740
Total Non-current Assets			18,969				7,714
Total Assets		$	14,564,457			$	1,257,592
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Advance of subscription fees from shareholders		$	—			$	590,000
Amount due to related parties			978,021				68,992
Other payable and accrued expenses			2,644,518				97,297
Lease liabilities			16,956				—
Deferred underwriter's discount			3,421,250				—
Total Current Liabilities			7,060,745				756,289
Total Liabilities			7,060,745				756,289
Commitments and Contingencies (Note 11)
Shareholders' Equity
Common stock ($0.0001 par value, 1,000,000,000 shares authorized; 46,859,633 and 37,488,807 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively)*			4,686				3,749
Additional paid-in capital*			43,490,860				34,927,449
Accumulated loss			(35,991,834)				(34,429,895)
Total Shareholders' Equity			7,503,712				501,303
Total Liabilities and Shareholders' Equity		$	14,564,457			$	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" of the filed 10-Q).

The accompanying notes in the filed 10-Q 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 Six Months Ended June 30, 2024 and 2023
(Expressed in U.S. dollar, except for the number of shares and loss per share)
		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2024				2023				2024				2023
Revenues		$	—			$	—			$	—			$	—
Operating expenses
General and administrative expenses			(1,347,897)				(738,442)				(1,561,729)				(948,577)
Total operating expenses			(1,347,897)				(738,442)				(1,561,729)				(948,577)
Other income (expenses), net
Foreign currency exchange gain (loss)			1				(1)				(210)				(1)
Total other income (expenses), net			1				(1)				(210)				(1)
Loss before income taxes			(1,347,896)				(738,443)				(1,561,939)				(948,578)
Income tax expenses			—				—				—				—
Net loss and comprehensive loss		$	(1,347,896)			$	(738,443)			$	(1,561,939)			$	(948,578)
Loss per share – basic and diluted*		$	(0.03)			$	(0.02)			$	(0.04)				(0.03)
Weighted average shares – basic and diluted*			39,628,798				33,182,622			$	38,774,859			$	32,656,465

 

*

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" of the filed 10-Q).

The accompanying notes in the filed 10-Q are an integral part of the unaudited condensed consolidated financial statements.

 

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SOURCE Thunder Power Holdings, Inc.

FAQ

What were Thunder Power's (AIEV) Q2 2024 revenue and net loss?

Thunder Power (AIEV) reported zero revenue and a net loss of $1.3 million for Q2 2024.

When did Thunder Power (AIEV) complete its business combination with FLFV?

Thunder Power (AIEV) completed its business combination with Feutune Light Acquisition (FLFV) on June 21, 2024.

What is the value of Thunder Power's (AIEV) stock purchase agreement with Westwood Capital Group?

Thunder Power (AIEV) entered into a $100 million Common Stock Purchase Agreement with Westwood Capital Group on August 20, 2024.

How did Thunder Power's (AIEV) operating expenses change in Q2 2024 compared to Q2 2023?

Thunder Power's (AIEV) operating expenses increased from $0.7 million in Q2 2023 to $1.3 million in Q2 2024, mainly due to a one-time share-based compensation expense.