ECD Automotive Design Inc. (ECDA) reports earnings
ECD Automotive Design Inc. (ECDA) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenue to $6,440,049 from $4,954,277 in the same quarter the previous year. This increase is attributed to a rise in the number of units sold and an increase in the average selling price per vehicle.
Cost of goods sold for the quarter was $4,432,509, representing 69% of sales, compared to 81% in the same quarter of the previous year. This decrease in cost ratio is due to higher average selling prices and increased unit volume.
Operating expenses for the quarter increased to $2,642,467 from $1,250,797, primarily due to increased costs associated with being a public company and higher professional fees related to financial restatements.
The company reported a net loss of $2,563,014 for the quarter, compared to a net loss of $238,824 in the previous year. The increase in net loss is primarily due to higher interest expenses and changes in the fair value of warrant liabilities.
Interest expense for the quarter was $1,401,829, significantly higher than the $4,523 reported in the previous year, due to interest on convertible notes and floor plan financing.
ECD Automotive Design completed an asset purchase agreement with BNMC Continuation Cars LLC, acquiring certain assets for $1.25 million, which included the issuance of 1,250,000 shares of common stock.
The company entered into a securities purchase agreement in August 2024, issuing a senior secured convertible note for $1,154,681 and 300,000 shares of common stock.
As of September 30, 2024, ECD Automotive Design had cash and cash equivalents of $3,592,128 and a working capital deficit of $3.5 million. The company anticipates needing additional capital to fund operations over the next twelve months.
The filing also details various financial agreements, including a business loan and security agreement with Agile Lending, LLC, and a strategic partnership agreement with One Drivers Club to open a retail showroom in West Palm Beach, Florida.
ECD Automotive Design continues to focus on expanding its market presence and managing its financial obligations, while addressing challenges related to financial restatements and compliance with SEC requirements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ECD Automotive Design Inc. quarterly 10-Q report dated March 25, 2025. To report an error, please email [email protected].