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Nuvve (NVVE) - 2024 Q2 - Quarterly Report
NVVENuvve (NVVE)2024-08-13 21:35
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Revenue Performance - Total revenue for Q2 2024 was 0.80million,adecreaseof62.20.80 million, a decrease of 62.2% from 2.12 million in Q2 2023, primarily due to a 1.18milliondropinproductrevenue[188].−ForthesixmonthsendedJune30,2024,totalrevenuewas1.18 million drop in product revenue [188]. - For the six months ended June 30, 2024, total revenue was 1.6 million, down 60.2% from 4.0millioninthesameperiodof2023,witha4.0 million in the same period of 2023, with a 2.1 million decrease in product revenue [189]. - Grants revenue increased by 85% to 0.13millioninQ22024comparedto0.13 million in Q2 2024 compared to 0.07 million in Q2 2023 [186]. Cost and Margin Analysis - Cost of products and services revenue for Q2 2024 decreased by 69.1% to 0.6millioncomparedto0.6 million compared to 2.0 million in Q2 2023, leading to a margin increase to 10.1% from 4.8% [190]. - For the six months ended June 30, 2024, cost of products and services revenue decreased by 2.3millionto2.3 million to 1.1 million, with a margin increase to 18.6% from 10.9% [191]. Loss and Improvement Metrics - Operating loss for Q2 2024 was 5.76million,a315.76 million, a 31% improvement from a loss of 8.32 million in Q2 2023 [186]. - Net loss attributable to Nuvve Holding Corp. for Q2 2024 was 3.94million,a513.94 million, a 51% improvement from a loss of 7.99 million in Q2 2023 [186]. - Net loss decreased by 4.0million,or50.54.0 million, or 50.5%, to 3.9 million for the three months ended June 30, 2024, compared to 8.0millionforthesameperiodin2023[200].OperationalExpenses−Selling,generalandadministrativeexpensesdecreasedby8.0 million for the same period in 2023 [200]. Operational Expenses - Selling, general and administrative expenses decreased by 1.7 million, or 26.4%, to 4.5millionforthethreemonthsendedJune30,2024,comparedto4.5 million for the three months ended June 30, 2024, compared to 6.1 million for the same period in 2023 [192]. - Research and development expenses decreased by 0.9million,or38.30.9 million, or 38.3%, to 1.5 million for the three months ended June 30, 2024, compared to 2.4millionforthesameperiodin2023[195].CashFlowandFinancing−Cashusedinoperationswas2.4 million for the same period in 2023 [195]. Cash Flow and Financing - Cash used in operations was 8.7 million for the six months ended June 30, 2024, compared to 21.3millionfortheyearendedDecember31,2023[204].−ThecompanycompletedapublicofferingonFebruary2,2024,raisinggrossproceedsofapproximately21.3 million for the year ended December 31, 2023 [204]. - The company completed a public offering on February 2, 2024, raising gross proceeds of approximately 9.6 million [206]. - Net cash provided by financing activities for the six months ended June 30, 2024, was 8.7million,primarilyfrom8.7 million, primarily from 8.5 million in proceeds from a public offering of common stock [222]. Future Outlook and Backlog - The estimated backlog as of June 30, 2024, was 18.2million,expectedtoberecognizedasrevenuefrom2024through2026[184].−Thecompanyexpectsgrowthincompany−ownedchargingstations,althoughtheseprojectswillconstituteadecliningpercentageoffuturebusinessascommercialoperationsexpand[180].SubsidiaryandBusinessModel−LevoMobilityLLC,aconsolidatedsubsidiary,focusesonelectrifyingtransportationandreducingbarrierstoEVfleetadoptionthroughaFleet−as−a−Servicemodel[182].−Levowasformedwithconditionalcapitalcontributioncommitmentsof18.2 million, expected to be recognized as revenue from 2024 through 2026 [184]. - The company expects growth in company-owned charging stations, although these projects will constitute a declining percentage of future business as commercial operations expand [180]. Subsidiary and Business Model - Levo Mobility LLC, a consolidated subsidiary, focuses on electrifying transportation and reducing barriers to EV fleet adoption through a Fleet-as-a-Service model [182]. - Levo was formed with conditional capital contribution commitments of 750 million to fund electric fleet acquisitions and infrastructure construction [215]. Debt and Interest Obligations - The Term Loan requires weekly payments of 50,750forthirtyweeks,totaling50,750 for thirty weeks, totaling 522,501 in expected interest payments [214]. - The weighted weekly average interest rate on the term loan is 2.96% [216]. Cash Position and Changes - The net decrease in cash and restricted cash for the six months ended June 30, 2024, was 103,246,comparedtoadecreaseof103,246, compared to a decrease of 4.7 million in the same period of 2023 [220]. - Net cash used in operating activities for the six months ended June 30, 2024, was 8.7million,adecreaseof8.7 million, a decrease of 0.3 million compared to 9.0millionforthesameperiodin2023[220].−Cashusedforinvestingactivitieswas9.0 million for the same period in 2023 [220]. - Cash used for investing activities was 0.05 million for the six months ended June 30, 2024, compared to net cash provided of $1.2 million in the same period of 2023 [221]. Regulatory and Compliance - The company has no off-balance sheet arrangements [224]. - There has been no change in internal control over financial reporting that materially affected the company during the quarter ended June 30, 2024 [234]. - The company is classified as an "emerging growth company" under the JOBS Act and intends to rely on the exemptions provided [230]. - The company expects to remain an emerging growth company until at least December 31, 2025, unless certain revenue or securities thresholds are met [231].