Volcon has released their third quarter financial results and operational highlights.
Through September 30th, 2022 they've taken pre-orders of over $100 million for the Stag and Brat!
AUSTIN, TX / ACCESSWIRE / November 10, 2022 / Volcon Inc. (NASDAQ:VLCN) (
USTIN, TX / ACCESSWIRE / 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.
- 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
- 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."
- 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.