{"id":755718,"date":"2023-05-05T16:56:42","date_gmt":"2023-05-05T20:56:42","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/volcon-epowersports-reports-first-quarter-2023-operational-and-financial-results\/"},"modified":"2023-05-05T16:56:42","modified_gmt":"2023-05-05T20:56:42","slug":"volcon-epowersports-reports-first-quarter-2023-operational-and-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/volcon-epowersports-reports-first-quarter-2023-operational-and-financial-results\/","title":{"rendered":"\u00a0Volcon ePowersports Reports First Quarter 2023 Operational and Financial Results"},"content":{"rendered":"
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AUSTIN, Texas, May 05, 2023 (GLOBE NEWSWIRE) — Volcon Inc. (NASDAQ: VLCN) (\u201cVolcon\u201d or the \u201cCompany\u201d), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for the first quarter of 2023.<\/p>\n

\n Company Highlights: <\/strong>\n <\/p>\n\n\n\n\n\n\n\n
\u25cf<\/td>\n\u00a0<\/td>\nMarch 31, 2023 we have 143 dealers<\/td>\n<\/tr>\n
\u25cf<\/td>\n\u00a0<\/td>\nHave taken pre-orders for the Stag of more than $113 million of expected revenue if all orders are fulfilled1<\/sup><\/td>\n<\/tr>\n
\u25cf<\/td>\n\u00a0<\/td>\nTaken delivery of our first five Stag validation units in 2023 that include our custom suspension parts in addition to the GM propulsion components<\/td>\n<\/tr>\n
\u25cf<\/td>\n\u00a0<\/td>\nGrunt EVO and Runt LT launch expected in the second quarter of 2023<\/td>\n<\/tr>\n
\u25cf<\/td>\n\u00a0<\/td>\nSigned Brazil distributor agreement<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

The Company had a net loss of 8 dealers and Stag pre-orders in the quarter due to dealer terminations. Jordan Davis, CEO notes, \u201cWe stated in our press release announcing our annual 2022 results that we purposely slowed signing of powersports dealers as management expected product shortages in transitioning the manufacturing of the Grunt to a third-party manufacturer. The shortage of certain parts due to supply chain delays also was a factor. The Company still expects to have over 250 dealers in the US and Canada signed by the end of 2023. Preorders for the Grunt EVO and Runt LT from dealers and distributors began in April 2023 and shipments are expected to begin in the second quarter 2023. Pre-orders and interest for the Stag from dealers and consumers continues to be strong and we continued to take waitlist orders from interested dealers and end users alike during the first quarter of 2023, with shipments expected to begin in late second quarter or early third quarter 2023.<\/p>\n

Expecting shipping to begin in the second quarter of 2023, we also signed an agreement with a distributor in Brazil in March 2023 with minimum purchase requirements of $12 million (net of discounts and rebates) of our products over three years.\u201d<\/p>\n

Our third-party manufacturer has entered into an agreement to have Electrameccanica Motor Vehicles (\u201cEMV\u201d) (Nasdaq ticker SOLO) complete final assembly of the Grunt EVO, RUNT and Stag in their Mesa, Arizona facility. Vertical integration of components such as frames, panels, and suspension components will continue to be done in our third-party manufacturer\u2019s Puebla, Mexico facility for the foreseeable future. Davis comments, \u201cHaving final assembly of our products in the United States allows for better distribution to our domestic customers and reduces costs to move key components, primarily the GM propulsion components for the Stag. We will continue exploring gains in distribution efficiency for our Latin American and South American partners as well.\u201d<\/p>\n

________________
1<\/sup> Pre-orders are cancellable until they are fulfilled.<\/p>\n

The Stag\u2019s development continued to progress during the first quarter of 2023. In early 2023, Volcon took delivery of the first three Stag validation units that include the Volcon designed suspension, GM propulsion components, as well as Elka shocks. The Company has taken delivery of two more Stag validation units. Christian Okonsky, Chief Technology Officer notes, \u201cThese additional advanced validation units continue to improve in performance, fitment, and finish and we are pleased with the progress we are making as each additional unit is fielded.\u201d Delivery of the Stag is expected to begin late in the second quarter of 2023 or early third quarter of 2023.<\/p>\n

We continue to receive and test iterations of the Grunt EVO, the replacement for the Grunt, which includes replacing the chain drive with a Gates belt drive, an improved rear suspension and ergonomically improved seat, as well as modifications to styling. The Grunt EVO will also be available in three colors. Davis comments, \u201cThe improvements the Grunt EVO provides in comparison to the Grunt demonstrates our commitment to continuously improve our products.\u201d Similarly, we continue to receive and test iterations of the Runt LT, Grunt EVO\u2019s baby brother, which has a hub motor rather than a chain or belt drive and will also be available in two colors. Okonsky notes, \u201cThe Runt LT\u2019s performance has met the expectations of what we envisioned, providing an option for smaller statured riders and those with more limited space to ride.\u201d We expect both the Grunt EVO and Runt LT to be available for sale in the second quarter of 2023.<\/p>\n

\n Financial highlights:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n GAAP<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n 3 Months Ended<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n March 31,<\/strong>
\n
\n 2023<\/strong>\n <\/td>\n		\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n December 31,<\/strong>
\n
\n 2022<\/strong>\n <\/td>\n		\n \u00a0<\/strong>\n <\/td>\n\n \u00a0<\/strong>\n <\/td>\n\n September 30,<\/strong>
\n
\n 2022<\/strong>\n <\/td>\n		\n \u00a0<\/strong>\n <\/td>\n<\/tr>\n
Revenue<\/td>\n\u00a0<\/td>\n$<\/td>\n1,170,458<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n751,621<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n242,710<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cost of goods sold<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,229,981<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,862,949<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(2,012,829<\/td>\n)<\/td>\n<\/tr>\n
Gross Margin<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(59,523<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,111,328<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,770,119<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Sales & Marketing<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,789,370<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,751,729<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,282,014<\/td>\n\u00a0<\/td>\n<\/tr>\n
Product Development<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,786,351<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,680,389<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,177,347<\/td>\n\u00a0<\/td>\n<\/tr>\n
General & Administrative<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,890,091<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,637,176<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,085,211<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Operating Expenses<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,465,812<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,069,294<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n5,544,572<\/td>\n\u00a0<\/td>\n<\/tr>\n
Loss from Operations<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(5,525,335<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(6,180,622<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(7,314,691<\/td>\n)<\/td>\n<\/tr>\n
Other Income (Expense)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,774,134<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(1,616,791<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(584,493<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net loss<\/td>\n\u00a0<\/td>\n$<\/td>\n(7,299,469<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(7,797,413<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(7,899,184<\/td>\n)<\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n