Thunder Power Reports Unaudited Third Quarter 2024 Financial Results

/EIN News/ -- WILMINGTON, Del., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Thunder Power Holdings, Inc. (Nasdaq: AIEV) (“Thunder Power” or the “Company”), a technology innovator and a developer of premium passenger EVs, today announced its unaudited financial results for the three months ended September 30, 2024 (“Third Quarter 2024”).

Third Quarter 2024 Financial Highlights

• Revenues were nil, consistent with the same period in 2023.
• Operating expenses were approximately $0.9 million, compared to $0.6 million in the prior year. The changes were primarily attributed to an increase of professional expenses of approximately $0.4 million with the closing of Business Combination and an increase of approximately $0.1 million in insurance expenses for the management of the Company after the business combination, partially net off against a decrease of share-based compensation expenses of approximately $0.2 million.
• As a result, net loss was approximately $0.9 million, compared to $0.6 million for the same period in 2023.

Wellen Sham, Founder of Thunder Power, commented, “our mission is to power the future of sustainable transportation by creating stylish, innovative and cost-efficient premium EVs centered around differentiated designs and solutions tailored for every lifestyle. With our recent business combination and a forward stock purchase facility set up in August reported in a current report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 21, 2024, we endeavor to leverage our proprietary technologies and modular designs. This may enable us to be able to produce eco-friendly EVs that prioritize quality, comfort, and performance, allowing us to capture meaningful market share in the growing EV sector in the foreseeable future."

About Thunder Power Holdings, Inc.
Thunder Power is a technology innovator and a developer of premium electric vehicles (“EVs”). The Company has developed several proprietary technologies, which are the building blocks of the Thunder Power family of EVs. The Company is focused on design and development of high-performance EVs, targeting the EV markets in the U.S., Europe and Asia.

Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminologies such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's final proxy statement/prospectus pursuant to rule 424(b)(3) filed with the SEC on May 17, 2024 and the subsequent periodic reports that are filed with the SEC and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements, except as required by the applicable law, regulations or rules.

THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2024 and December 31, 2023 (Expressed in U.S. dollar, except for the number of shares)
	September 30, 2024				December 31, 2023
					(Audited)
ASSETS
Current Assets
Cash	$	33,636			$	196,907
Deferred offering costs		—				429,750
Prepaid expenses for forward purchase contract		13,114,964				—
Other current assets		338,289				623,221
Total Current Assets		13,486,889				1,249,878
Non-current Assets
Property and equipment, net		344				1,974
Right of use assets		11,453				5,740
Total Non-current Assets		11,797				7,714
Total Assets	$	13,498,686			$	1,257,592
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Advance of subscription fees from shareholders	$	—			$	590,000
Amount due to related parties		1,369,035				68,992
Other payable and accrued expenses		2,646,139				97,297
Lease liabilities		10,294				—
Underwriter fee payable		2,921,250				—
Total Current Liabilities		6,946,718				756,289
Total Liabilities		6,946,718				756,289
Commitments and Contingencies (Note 11)
Shareholders’ Equity
Common stock ($0.0001 par value, 1,000,000,000 shares authorized; 50,716,094 and 37,488,807 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively)*		5,072				3,749
Additional paid-in capital*		43,450,668				34,927,449
Accumulated loss		(36,904,151	)			(34,429,895	)
Accumulated other comprehensive income		379				—
Total Shareholders’ Equity		6,551,968				501,303
Total Liabilities and Shareholders’ Equity	$	13,498,686			$	1,257,592

*	The share information and additional paid-in capital are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading “Reverse Recapitalization” in “Note 1 – Organization and Business Description”).
	The accompanying notes are an integral part of the unaudited consolidated financial statements.

THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Three and Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar, except for the number of shares and loss per share)
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2024				2023				2024				2023
Revenues	$	—			$	—			$	—			$	—
Operating expenses
General and administrative expenses		(912,314	)			(645,635	)			(2,474,043	)			(1,594,212	)
Total operating expenses		(912,314	)			(645,635	)			(2,474,043	)			(1,594,212	)
Other income (expenses), net
Foreign currency exchange loss		(3	)			(513	)			(213	)			(514	)
Total other expenses, net		(3	)			(513	)			(213	)			(514	)
Loss before income taxes		(912,317	)			(646,148	)			(2,474,256	)			(1,594,726	)
Income tax expenses		—				—				—				—
Net loss		(912,317	)			(646,148	)			(2,474,256	)			(1,594,726	)
Other comprehensive income
Foreign currency adjustments		379				—				379				—
Comprehensive loss	$	(911,938	)		$	(646,148	)		$	(2,473,877	)		$	(1,594,726	)
Loss per share – basic and diluted*	$	(0.02	)		$	(0.02	)		$	(0.06	)		$	(0.05	)
Weighted average shares – basic and diluted*		50,552,367				36,609,437				42,729,350				33,988,602

*	The shares and per share information are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading “Reverse Recapitalization” in “Note 1 - Organization and Business Description”).
	The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICITS) For the Three and Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar, except for the number of shares)
	Common stock								Additional								Accumulated other				Total shareholders’
	Number of stock*				Amount*				paid-in capital *				Accumulated loss				comprehensive income				equity (deficits)
Balance as of December 31, 2023		37,488,807			$	3,749			$	34,927,449			$	(34,429,895	)		$	—			$	501,303
Capital injection from shareholders		1,310,740				131				489,869				—				—				490,000
Net loss		—				—				—				(214,043	)			—				(214,043	)
Balance as of March 31, 2024		38,799,547			$	3,880			$	35,417,318			$	(34,643,938	)		$	—			$	777,260
Capital injection from shareholders		1,200,453				120				456,680				—				—				456,800
Reverse recapitalization (Note 1)		5,279,673				528				3,973,308				—				—				3,973,836
Issuance of common stock to a financial advisor (Note 8)		1,200,000				120				(120	)			—				—				—
Issuance of common stock to independent directors		90,000				9				899,991				—				—				900,000
Share-based compensation		—				—				107,712				—				—				107,712
Settlement of working capital loans		289,960				29				2,635,971				—				—				2,636,000
Net loss		—				—				—				(1,347,896	)			—				(1,347,896	)
Balance as of June 30, 2024		46,859,633			$	4,686			$	43,490,860			$	(35,991,834	)		$	—			$	7,503,712
Payment of offering cost		—				—				(61,745	)			—				—				(61,745	)
Issuance of ordinary shares pursuant to forward purchase contracts		3,706,461				371				(371	)			—				—				—
Issuance of ordinary shares pursuant to a private placement		150,000				15				(15	)			—				—				—
Share-based compensation to a non-employee (Note 10)		—				—				21,939				—				—				21,939
Net loss		—				—				—				(912,317	)			—				(912,317	)
Foreign exchange adjustments		—				—				—				—				379				379
Balance as of September 30, 2024		50,716,094			$	5,072			$	43,450,668			$	(36,904,151	)		$	379			$	6,551,968
Balance as of December 31, 2022		31,754,844			$	3,175			$	32,091,251			$	(32,614,251	)		$	—			$	(519,825	)
Capital injection from shareholders		563,823				56				299,944				—				—				300,000
Share-based compensation		—				—				45				—				—				45
Net loss		—				—				—				(210,135	)			—				(210,135	)
Balance as of March 31, 2023		32,318,667			$	3,231			$	32,391,240			$	(32,824,386	)		$	—			$	(429,915	)
Capital injection from shareholders		2,183,887				218				1,071,306				—				—				1,071,524
Net loss		—				—				—				(738,443	)			—				(738,443	)
Balance as of June 30, 2023		34,502,554			$	3,449			$	33,462,546			$	(33,562,829	)		$	—			$	(96,834	)
Capital injection from shareholders		2,835,526				284				1,390,966				—				—				1,391,250
Issuance of ordinary shares to a related party to settle liabilities due to the related party		150,727				15				73,938				—				—				73,953
Net loss		—				—				—				(646,148	)			—				(646,148	)
Balance as of September 30, 2023		37,488,807			$	3,748			$	34,927,450			$	(34,208,977	)		$	—			$	722,221

*	The share information and additional paid-in capital are presented on a retroactive basis to reflect the reverse recapitalization on June 21, 2024 (see the discussion under the heading “Reverse Recapitalization” in “Note 1 - Organization and Business Description”).
	The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

THUNDER POWER HOLDINGS, INC. (f/k/a Feutune Light Acquisition Corporation) UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2024 and 2023 (Expressed in U.S. dollar)
	For the Nine Months Ended September 30,
	2024				2023
Cash flows from operating activities:
Net loss	$	(2,474,256	)		$	(1,594,726	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expenses		1,630				3,769
Amortization of right of use assets		20,160				19,801
Share-based compensation		1,007,712				331,295
Share-based settlement expenses		—				479,174
Changes in operating assets and liabilities:
Other current assets		37,579				(11,745	)
Amount due to related parties		74,983				219,531
Other payable and accrued expenses		442,413				—
Lease liabilities		(15,579	)			656
Net cash used in operating activities		(905,358	)			(552,245	)
Cash flows from investing activities:
Cash acquired in reverse capitalization		929,302				—
Net cash provided by investing activities		929,302				—
Cash flows from financing activities:
Subscription fees advanced from shareholders		—				1,160,000
Subscription fees received from shareholders		356,800				—
Payment of offering cost		(999,700	)			—
Return of subscription fees to an investor		—				(100,000	)
Borrowings from a related party		710,060				—
Repayment of borrowings to a related party		(25,000	)			—
Payment of extension loans		(380,000	)			(315,000	)
Proceeds of prepayment shortfall under forward purchase contract		150,000				—
Net cash (used in) provided by financing activities		(187,840	)			745,000
Effect of exchange rates on cash		625				—
Net (decrease) increase in cash		(163,271	)			192,755
Cash at beginning of period		196,907				250,386
Cash at end of period	$	33,636			$	443,141
Supplemental cash flow information
Cash paid for interest expense	$	—			$	—
Cash paid for income tax	$	—			$	—
Non-cash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	25,824			$	—
Transfer of advance of subscription fees from shareholders to equity	$	590,000			$	300,000
Payable of expenses directly related to the business combination	$	1,353,913				—
Issuance of ordinary shares to settle the liabilities due to a controlling shareholder	$	—			$	609,958
Issuance of ordinary shares to settle the liabilities due to a related party	$	—			$	56,346
Share based compensation to a nonemployee as part of offering cost	$	21,939			$	—
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.