AUSTIN, TX - Volcon Inc. (NASDAQ:VLCN), the pioneering all-electric off-road powersports company, today disclosed its operational achievements and financial outcomes for the first quarter ending March 31, 2024. The company has successfully secured an extension from Nasdaq to meet compliance requirements by June 24, 2024, and has commenced deliveries of its Stag model to U.S. dealers and the Army Corps of Engineers.
The company’s revenue for the first quarter stood at $1.03 million, maintaining the level seen in the last quarter of 2023 and marking an increase from the third quarter of 2023. The Grunt EVO, an off-road motorcycle, contributed $0.3 million to the revenue. The Brat, Volcon's entry into the eBike market, also continued to perform well, generating $0.5 million in the same period.
Operating expenses have decreased to $3.7 million in the first quarter from $4.6 million and $6.4 million in the preceding two quarters, reflecting cost reductions in sales and marketing, product development, and general and administrative expenses. Despite these reductions, the net loss for the quarter was substantial, amounting to $26.0 million, largely due to a $19.8 million loss recognized for warrant liabilities.
The company has continued to expand its dealer network, now totaling 105 U.S. dealers, and has signed two new dealers in California, a state with a significant population of off-road enthusiasts. California's evolving regulations on off-road vehicle emissions are anticipated to benefit the adoption of electric vehicles in the industry.
John Kim, CEO of Volcon, stated, "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."
Volcon has decided not to launch the Runt LT, a smaller off-road motorcycle, to concentrate on the distribution of the Grunt EVO and the Stag. The company is exploring options for new two-wheel products to be developed over the next 9 to 12 months.
This report is based on a press release statement from Volcon Inc. and provides an objective overview of the company's performance in the first quarter of 2024.
InvestingPro Insights
Volcon Inc. (NASDAQ:VLCN) has shown commitment to growth and operational efficiency, as highlighted in their Q1 2024 report. However, an in-depth look at the company's financial health through InvestingPro metrics reveals a more nuanced picture. As of the last twelve months ending in Q4 2023, Volcon reported a market capitalization of approximately $4.9 million, with a revenue of $3.26 million. This revenue figure marks a significant decline of 28.28% compared to the previous year. The company's gross profit margin stands at a concerning -249.31%, indicating that the cost of goods sold significantly exceeds the revenue generated.
InvestingPro Tips suggest that Volcon operates with a significant debt burden and may struggle to make interest payments, which is particularly relevant given the company's recent net loss. Analysts on InvestingPro, however, anticipate sales growth in the current year, which could be a silver lining for the company's future performance. It's also worth noting that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which might interest investors looking for potential entry points. With the stock having taken a considerable hit over the past week, it's evident that Volcon experiences high price volatility.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available on InvestingPro's VLCN page. These insights could be invaluable for understanding Volcon's market position and making informed investment decisions. Readers can use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips.
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