Zapp EV Reports Fiscal Year 2023 Financial Results
- Zapp reported financial results for the fiscal year ended September 30, 2023.
- The company entered into a standby equity purchase agreement to sell up to $10 million worth of shares.
- Zapp completed vehicle testing required for homologation in the European Union and Thailand.
- The company received two additional design awards, bringing the total to eight.
- Zapp partnered with the Paris-based fintech firm Younited to offer European customers instant credit payment solutions.
- Zapp's 2023 financial results showed a net loss of $222.1 million compared to $3.6 million in the prior year.
- Operating loss was $7.8 million compared to $3.6 million in the prior year.
- Zapp's Founder and CEO, Swin Chatsuwan, expressed optimism about the start of production and commercial rollout of the i300 electric urban motorcycle.
- IFRS Net loss of $222.1 million in 2023.
- Operating loss of $7.8 million in 2023.
Insights
Zapp Electric Vehicles Group Limited's recent financial results indicate a significant net loss of $222.1 million, which is a substantial increase from the previous year's $3.6 million. This loss primarily stems from other expenses related to a business combination, signaling a strategic move that could be transformative for the company's future. However, the magnitude of the loss warrants a closer examination of the company's operational efficiency and the synergies expected from the business combination.
The standby equity purchase agreement to sell up to $10 million worth of shares is a liquidity measure that provides Zapp EV with a capital infusion. This move is crucial as it offers the financial support needed for the company to transition into production and commercial rollout phases. Investors should note the potential dilutive effect of such an equity sale on existing shares, which could impact share value in the short term.
From an investment standpoint, the market will likely react to both the reported financial losses and the strategic moves undertaken by Zapp EV. The company's success in scaling up after the rollout in Europe and key Asian markets, including India, will be critical in determining its long-term financial health and stock performance.
Zapp's i300 electric urban motorcycle appears to be positioned to capitalize on the growing demand for urban mobility solutions, particularly in congested city environments. The completion of vehicle testing for homologation in the European Union and Thailand suggests that Zapp is targeting strategic markets with potential high demand for electric vehicles (EVs).
Partnerships, such as the one with Younited for instant credit payment solutions, could enhance customer acquisition by making the purchasing process more accessible. This could be a competitive advantage in the EV space, as financial barriers often deter potential buyers. The approach could also reflect positively on customer satisfaction and brand loyalty.
The operational highlights, including design awards and patents, may not directly influence financial performance but contribute to brand prestige and technological credibility. These factors can indirectly impact consumer perception and market acceptance, which are vital for the success of new products in the competitive EV industry.
The homologation process that Zapp EV has completed is a critical step for entering the European and Thai markets, ensuring that the i300 motorcycle meets all regulatory requirements. This process is often complex and costly, but it is essential for the legal sale of vehicles in these regions.
The granted patents for the weight- and component-reducing exoskeleton and interchangeable front fender indicate that Zapp EV is investing in proprietary technology that could provide a competitive edge in the EV market. Such innovations can lead to improved performance and cost savings, which are key factors in consumer purchasing decisions.
The company's focus on fit-for-purpose design for urban environments suggests that Zapp EV is not only addressing current market needs but also anticipating future trends in personal mobility. The ability to quickly scale following the commercial rollout will be pivotal in capturing market share and establishing Zapp as a serious player in the EV industry.
Milestones achieved support rotation to in-production and commercial rollout in 2024
LONDON, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Zapp Electric Vehicles Group Limited (Nasdaq: ZAPP) (“Zapp EV” or the “Company”), owner of “Zapp”, the British electric vehicle brand on a mission to revolutionise personal urban mobility, today reported financial results for the fiscal year ended September 30, 2023.
Recent Business Highlights
- Entered into a standby equity purchase agreement to sell up to
$10 million worth of shares, with a majority of the proceeds to be used to start production and commercial rollout of the i300 electric urban motorcycle. - Completed vehicle testing required for homologation in the European Union and Thailand.
2023 Operational Highlights
- Received two additional design awards, for a current total of eight, including the prestigious Red Dot Product Design Award in the motorcycles category.
- Two patents were granted relating to the weight- and component-reducing exoskeleton and interchangeable front fender.
- The first peer review from Electroheads received more than three million views across social media channels.
- Partnered with the Paris-based fintech firm Younited, which offers our European customers its Younited Pay instant credit payment solution when completing their order, with flexible payment plans designed to minimize monthly payments depending on the amount of the down payment and term of the desired repayment schedule.
2023 Financial Results
- IFRS Net loss of
$222.1 million compared to$3.6 million in the prior year. - 2023 results reflected primarily other expenses of
$213.7 million , which related to the business combination completed in April 2023. - Operating loss of
$7.8 million compared to$3.6 million in the prior year.
Swin Chatsuwan, Founder and Chief Executive Officer of Zapp EV, said: “We’ve taken a well-researched approach from day one and the start of production is a major tipping point for Zapp. The standby commitment of
Conference Call Information
Zapp will host a conference call for investors and analysts on Thursday, February 29, 2024, at 8:00 ET / 13:00 GMT. To join the conference call by phone, participants need to register in advance using the respective link below. Upon registration, participants will receive dial-in numbers and a unique code for use in joining the call. A live webcast of the conference call will be available through the link below and webcast participants may submit written questions during the call.
Event: Zapp Shareholder & Analyst Update
Date: Thursday, February 29, 2024
Time: 8:00 ET / 13:00 GMT
To register for dial-in details: https://register.vevent.com/register/BIefca2cabeb09491eb560e76ff8d01b8a
To register for webcast: https://edge.media-server.com/mmc/p/jxzwhyob
Following completion of the call, a replay will be available on the Zapp investor relations website at ir.zappev.com. Zapp uses this website as a means for complying with its disclosure obligations.
About Zapp EV
Zapp EV (Nasdaq: ZAPP) and its operating subsidiaries are run by a team of experts from the mobility industry, on a mission to redefine the electric two-wheeler segment. Zapp's debut product, the i300, is an urban electric high-performance two-wheeler capable of traditional motorcycle levels of performance in a step-through format, combining ease of use with exhilaration and fun. The i300 is the first in a suite of high-performance electric two-wheelers that Zapp plans to bring to market. Zapp will offer a high-quality direct-to-customer experience known as DSDTC (drop-ship-direct-to-customer). Customers ordering the i300 online will have their bikes conveniently delivered to their home by authorised “Zappers,” who will provide at-home inspection, service and support throughout the vehicle ownership lifecycle. Zapp is a registered trademark of Zapp Electric Vehicles Limited in the United Kingdom and other countries. For more information, visit www.zappev.com.
Zapp Investor Relations Contact:
Mark Kobal
Head of Investor Relations
ir@zappev.com
Zapp Media Relations Contact:
pr@zappev.com
No Offer or Solicitation
This press release is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security of Zapp EV or any of its respective affiliates. No such offering of securities shall be made except by means of a prospectus meeting the requirements of section 10 of the Securities Act, or an exemption therefrom. The contents of this press release have not been reviewed by any regulatory authority in any jurisdiction.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (or the “Exchange Act”). These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “budget,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are not historical facts but rather are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events and results to differ materially from those expressed or implied by the forward-looking statements in this document, including but not limited to various general and specific risks and uncertainties associated with the Company's business and finances in general.
Readers should review and carefully consider the risks and uncertainties described in the “Risk Factors” section of Zapp's annual report on Form 20-F (File No. 001-41693), which is incorporated herein by reference, and other documents the Company files with or furnishes to the U.S. Securities and Exchange Commission from time to time. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those expressed or implied by the forward-looking statements herein. The forward-looking statements herein represent the Company’s views as of the date of this document. Subsequent events and developments may cause these views to change. Readers are cautioned not to place undue reliance on the forward-looking statements herein, all of which are qualified by these cautionary statements. Zapp assumes no obligation and does not intend to update or revise the forward-looking statements herein, whether as a result of new information, future events, or otherwise. Zapp does not give any assurance that it will achieve its expectations. The inclusion of any statement in this document does not constitute an admission by Zapp or any other person that the events or circumstances described in any such statements are material.
| ZAPP ELECTRIC VEHICLES GROUP LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (US | September 30, 2023 | September 30, 2022 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | 823.2 | 1,963.1 | ||||||
| Other current assets | 1,827.9 | 306.9 | ||||||
| Property, plant and equipment | 590.8 | 480.7 | ||||||
| Other non-current assets | 4,099.9 | 1,474.7 | ||||||
| Total assets | 7,341.8 | 4,225.4 | ||||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Trade, other payables and current liabilities | 5,653.1 | 1,303.2 | ||||||
| Liabilities related to business combination | 18,045.1 | - | ||||||
| Other non-current liabilities | 2,081.2 | 409.7 | ||||||
| Total liabilities | 25,779.4 | 1,713.0 | ||||||
| Stockholders' equity | (18,437.6 | ) | 2,512.4 | |||||
| Total liabilities and equity | 7,341.8 | 4,225.4 | ||||||
| ZAPP ELECTRIC VEHICLES GROUP LIMITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | ||||||||
| For the Year Ended September 30, | ||||||||
| ($US 000's, except per share data) | 2023 | 2022 | ||||||
| Revenue | - | - | ||||||
| Cost of sales | - | - | ||||||
| Selling and distribution expenses | (1,425.3 | ) | (423.1 | ) | ||||
| General and administrative expenses | (6,372.7 | ) | (3,187.0 | ) | ||||
| Operating loss | (7,798.1 | ) | (3,610.1 | ) | ||||
| Finance expense, net | (551.7 | ) | (302.8 | ) | ||||
| Other (expenses) / income1 | (213,747.7 | ) | 335.3 | |||||
| Loss before tax | (222,097.5 | ) | (3,577.6 | ) | ||||
| Income tax | - | - | ||||||
| Loss for the year | (222,097.5 | ) | (3,577.6 | ) | ||||
| Earnings per share | (4.65 | ) | (0.09 | ) | ||||
1Other expenses in 2023 consists primarily of fair value movements and share-based expenses related to the business combination.
| ZAPP ELECTRIC VEHICLES GROUP LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Year Ended September 30, | ||||||||
| (US | 2023 | 2022 | ||||||
| Net cash used in operating activities | (6,505.4 | ) | (2,802.9 | ) | ||||
| Net cash used in investing activities | (285.9 | ) | (466.2 | ) | ||||
| Net cash from financing activities | 5,648.8 | 5,070.0 | ||||||
| Net (decrease) / increase in cash and cash equivalents | (1,142.5 | ) | 1,800.9 | |||||
| Cash and cash equivalents at October 1, 2022 and 2021 | 1,963.1 | 159.7 | ||||||
| Effect of exchange rate fluctuations on cash held | 2.6 | 2.5 | ||||||
| Cash and cash equivalents at September 30, 2023 and 2022 | 823.2 | 1,963.1 | ||||||
Please refer to our Form 20-F for the year ended September 30, 2023 for the full financial statements and related notes and disclosures.
FAQ
What financial results did Zapp Electric Vehicles Group Limited report for the fiscal year ended September 30, 2023?
What agreement did Zapp enter into to start production of the i300 electric urban motorcycle?
With which fintech firm did Zapp partner to offer instant credit payment solutions to European customers?
What did Zapp's Founder and CEO, Swin Chatsuwan, mention about the start of production and commercial rollout of the i300 electric urban motorcycle?
What was the operating loss reported by Zapp in 2023?
