2024 Q2 Form 10-K Financial Statement

#000121390024039311 Filed on May 03, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2023 Q4 2023 Q3
Revenue $8.872M $15.12M $3.638M
YoY Change 80.57%
Cost Of Revenue $6.055M $10.87M $1.805M
YoY Change 90.07%
Gross Profit $2.817M $4.249M $1.833M
YoY Change 63.06%
Gross Profit Margin 31.75% 28.1% 50.4%
Selling, General & Admin $5.728M $1.517M
YoY Change
% of Gross Profit 134.8% 82.77%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $34.64K $71.76K $31.21K
YoY Change -35.85%
% of Gross Profit 1.23% 1.69% 1.7%
Operating Expenses $2.700M $5.885M $1.267M
YoY Change 101.16%
Operating Profit $117.5K -$1.636M -$614.2K
YoY Change -113.54% 1972.6%
Interest Expense -$653.4K $6.650K
YoY Change -94.76%
% of Operating Profit
Other Income/Expense, Net -$1.053M $171.5K $484.0K
YoY Change -191.74% 281.45%
Pretax Income -$935.8K -$2.117M -$130.3K
YoY Change -434.15% -233.94%
Income Tax -$9.712K -$515.4K $91.14K
% Of Pretax Income
Net Earnings -$926.1K -$1.602M -$221.4K
YoY Change -1973.19% -403.85%
Net Earnings / Revenue -10.44% -10.59% -6.09%
Basic Earnings Per Share -$0.03
Diluted Earnings Per Share -$0.03 -$0.02 $0.01
COMMON SHARES
Basic Shares Outstanding 31.90M shares 6.625M shares 6.625M shares
Diluted Shares Outstanding 31.98M shares

Balance Sheet

Concept 2024 Q2 2023 Q4 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.134M $5.183M
YoY Change
Cash & Equivalents $5.661M $8.100M $163.00
Short-Term Investments
Other Short-Term Assets $34.01K $63.83K
YoY Change
Inventory $10.12M $11.80M $11.74M
Prepaid Expenses $174.2K $34.01K $20.50K
Receivables $105.1K $2.491M
Other Receivables $33.28K
Total Short-Term Assets $16.29M $19.97M $88.69K
YoY Change 10633.43% 2707.22% -88.8%
LONG-TERM ASSETS
Property, Plant & Equipment $607.6K $968.7K $4.921M
YoY Change -88.08% 69.7%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $593.1K $75.99K
YoY Change
Total Long-Term Assets $5.454M $5.325M $37.75M
YoY Change -85.27% -95.46% -67.56%
TOTAL ASSETS
Total Short-Term Assets $16.29M $19.97M $88.69K
Total Long-Term Assets $5.454M $5.325M $37.75M
Total Assets $21.75M $25.29M $37.83M
YoY Change -41.5% -78.56% -67.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.105M $768.8K $878.6K
YoY Change 92.04% 57.93%
Accrued Expenses $1.411M $687.0K $150.5K
YoY Change 270.72% 347.83% 688.91%
Deferred Revenue $11.47M $17.60M
YoY Change 24.22%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $3.205M
YoY Change
Total Short-Term Liabilities $18.73M $20.90M $4.005M
YoY Change 439.1% 2967.84% 921.54%
LONG-TERM LIABILITIES
Long-Term Debt $10.68M $500.0K
YoY Change
Other Long-Term Liabilities $3.727M $4.068M
YoY Change
Total Long-Term Liabilities $14.41M $4.568M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $18.73M $20.90M $4.005M
Total Long-Term Liabilities $14.41M $4.568M
Total Liabilities $33.83M $35.31M $8.381M
YoY Change 351.18% 650.31% 89.75%
SHAREHOLDERS EQUITY
Retained Earnings -$12.52M -$10.02M -$7.332M
YoY Change 91.7% 183.29% 113.72%
Common Stock $435.1K $3.187K $313.00
YoY Change 138924.28% 918.21% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$12.09M -$10.02M -$7.331M
YoY Change
Total Liabilities & Shareholders Equity $21.75M $25.29M $37.83M
YoY Change -41.5% -78.56% -67.7%

Cashflow Statement

Concept 2024 Q2 2023 Q4 2023 Q3
OPERATING ACTIVITIES
Net Income -$926.1K -$1.602M -$221.4K
YoY Change -1973.19% -403.85%
Depreciation, Depletion And Amortization $34.64K $71.76K $31.21K
YoY Change -35.85%
Cash From Operating Activities -$3.725M -$205.5K
YoY Change
INVESTING ACTIVITIES
Capital Expenditures $528.5K $12.57K
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change
Cash From Investing Activities -$528.5K -$12.57K
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 7.687M 3.123M
YoY Change
NET CHANGE
Cash From Operating Activities -3.725M -205.5K
Cash From Investing Activities -528.5K -12.57K
Cash From Financing Activities 7.687M 3.123M
Net Change In Cash 3.434M 2.904M
YoY Change
FREE CASH FLOW
Cash From Operating Activities -$3.725M -$205.5K
Capital Expenditures $528.5K $12.57K
Free Cash Flow -$4.253M -$218.1K
YoY Change

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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <b>1. NATURE OF OPERATIONS</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ECD Automotive Design, Inc (the “Company,” “ECD,” “we,” “us,” or “our), formerly known as EF Hutton Acquisition Corporation I (“EFHAC”) (the Company) is engaged in the production and sale of Land Rover vehicle. Since the Company’s commencement of operations in 2013, they have established a facility geared towards producing the most customized Land Rovers with the highest quality of parts and the highest quality labor force building each vehicle. The Company primarily earns revenue from the sale of the customized vehicle directly to the customer. Additionally, revenue is generated from providing repair or upgrade services to customers and from the sale of extended warranties.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 12, 2023, ECD completed the business combination contemplated by the merger agreement dated as of March 3, 2023 (the “Merger Agreement”) by and among EFHAC, Humble Imports Inc., d/b/a ECD Auto Design, a Florida corporation (“Humble” or “ECD”), ECD Auto Design UK, Ltd., an England and Wales corporation (the “ECD UK”), EFHAC Merger Sub, Inc., a Florida corporation (“Merger Sub”) and wholly-owned subsidiary of EFHAC, and Scott Wallace, as the Securityholder Representative. At part of the closing Merger Sub merged with and into ECD with ECD as the surviving corporation and becoming a wholly-owned subsidiary of EFHAC. In connection with the Merger, EFHAC changed its name to “ECD Automotive Design Inc.” or such other name designated by E.C.D. by notice to EFHAC. See Note 5 for further information.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The business combination was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, although EFHAC acquired the outstanding equity interest in ECD in the business combination, EFHAC is treated as the “acquired company” and ECD was treated as the accounting acquirer for financial statement purposes.  Accordingly, the Business Combination was treated as the equivalent of ECD issuing stock for the net assets of EFHAC, accompanied by a recapitalization. The net assets of EFHAC are stated at historical cost, with no goodwill or other intangible assets recorded.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, the historical financial statements of ECD became the historical financial statements of the Company upon the consummation of the merger. As a result, the financial statements included in this Annual Report reflect (i) the historical operating results of ECD prior to the merger; (ii) the combined results of EFHAC and ECD following the close of the merger; (iii) the assets and liabilities of ECD at their historical cost and (iv) ECD’s equity structure for all periods presented, as affected by the recapitalization presentation after completion of the merger. See Note 5 - Reverse Capitalization for further details of the merger.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also consolidates, ECD Audit Design UK LTD (“ECD UK”), a private limited company incorporated on July 16, 2021 in England and Wales. ECD UK was formed for the purpose of procuring parts overseas for the Company. ECD UK is a consolidated variable interest entity (“VIE”) for which the company is the primary beneficiary. The Company is the primary beneficiary of ECD UK as it has both the power to direct the most significant activities impacting its economic performance and the obligation to absorb losses or receive benefits significant to them.</p>
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CY2023 us-gaap Number Of Operating Segments
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Reclassification</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain prior period amounts have been reclassified to conform to the current period presentation in the consolidated financial statements and these accompanying notes. The reclassifications did not have a material impact on the Company’s consolidated financial statements and related disclosures. The impact on any prior period disclosures was immaterial.</p>
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CY2023 efht Schedule Of Consolidated Statement Of Changes In Stockholders Deficit Text Table Block
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The following table reconciles the elements of the Business Combination to the consolidated statement of changes in stockholders’ deficit for the period ended December 31, 2023:<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 88%; text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Cash-trust and cash, net of redemptions</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">241,329</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -7.25pt; padding-left: 7.25pt">Less: transaction expenses paid</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(241,329</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: -7.25pt; padding-left: 7.25pt">Net proceeds from the Business Combination</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">—</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -7.25pt; padding-left: 7.25pt">Less: recognition of SPAC closing balance sheet</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(762,710</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -7.25pt; padding-left: 7.25pt">Reverse recapitalization, net</td><td style="font-weight: bold; padding-bottom: 4pt"> </td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(762,710</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table>
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