Fri, Jun 7, 10:04 AM (92 days ago)
Solidion Technology, Inc. (formerly Nubia Brand International Corp.) reported its financial results for the quarter ended March 31, 2024. The company completed a merger with Honeycomb Battery Company on February 2, 2024. Solidion's financial health shows significant changes due to this merger and subsequent financial activities. Key financial metrics include: - Total assets increased to $8.5 million from $4.4 million at year-end 2023. - Current assets rose to $3.5 million from $258,066. - Total liabilities surged to $49.1 million from $1.0 million, primarily due to derivative liabilities and short-term notes payable. - Stockholders' equity turned negative, with a deficit of $40.6 million compared to a positive $3.4 million previously. Operational performance: - No sales revenue was recorded for Q1 2024, compared to $300 in Q1 2023. - Operating expenses increased significantly to $3.8 million from $1.7 million, driven by research and development and selling, general, and administrative costs. - The net loss widened to $29.8 million from $1.7 million, largely due to non-cash losses from changes in derivative liability values and issuance of common stock and warrants. Cash flow: - Net cash used in operating activities was $2.0 million. - Cash used in investing activities was $91,348. - Financing activities provided $3.95 million, driven by capital contributions, private placement proceeds, and convertible notes. Future outlook: - The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and limited cash reserves. - Management plans to seek additional financing through equity or debt to support operations. Overall, Solidion's financial position reflects the impact of the merger and the need for further capital to sustain operations.