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Volcon Inc. (VLCN-5.97%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details Volcon's operations as an all-electric, off-road powersports vehicle company. The company sells electric two-wheeled E-Bikes, motorcycles, utility terrain vehicles (UTVs), and golf carts. In January 2025, Volcon entered into a distribution agreement with Super Sonic Company Ltd. in Vietnam to supply golf carts in the United States.
Volcon reported revenue of $4,037,191 for the year ended December 31, 2024, compared to $3,260,988 in 2023. The increase was driven by sales of the Brat E-Bike, Grunt EVO motorcycles, and other products. Cost of goods sold was $18,168,288, resulting in a gross margin loss of $14,131,097.
Operating expenses for the year totaled $12,882,930, down from $21,662,697 in 2023. This included sales and marketing expenses of $2,548,953, product development expenses of $2,668,330, and general and administrative expenses of $7,665,647.
Volcon reported a net loss of $45,510,309 for the year, slightly higher than the $45,071,211 loss in 2023. The company attributed the loss to high costs of goods sold and significant interest and other expenses.
The company faces challenges related to its reliance on third-party manufacturers, which could lead to production delays and quality control issues. Volcon also highlighted risks related to its financial condition, including a working capital of $0.4 million and accumulated deficit of $166.3 million as of December 31, 2024.
Volcon's liquidity strategy includes cash on hand, anticipated cash from operations, and proceeds from recent equity offerings. The company acknowledges that additional funding may be necessary to continue operations beyond one year.
Volcon's stock is listed on the NASDAQ Stock Market under the symbol VLCN. The company has faced compliance challenges with NASDAQ listing requirements and has completed multiple reverse stock splits to maintain its listing.
The filing also discusses Volcon's internal control weaknesses, which have not been fully remediated since identified in 2020. The company is working to improve its internal controls over financial reporting.
Volcon's future plans include expanding its product offerings and distribution network, particularly in the U.S. and international markets. The company is also focused on enhancing its brand recognition and market presence in the electric vehicle industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Volcon Inc. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.