The solar technology company Sono Group N.V. (OTCQB: SEVCF) (hereafter referred to as “Sono” or the “Company”, parent company to Sono Motors GmbH or “Sono Motors”) today announced its financial results for the first six months of 2024, highlighting a €60.6 million profit and its recovery following its exit from insolvency earlier this year.
Key financial highlights
- €60.6 million profit: The profit primarily stemmed from the extinguishment of liabilities, parental guarantee reversal and recapitalization and reconsolidation of Sono Motors.
- Operational efficiency: General and administrative expenses decreased significantly from €8.1 million in H1 2023 to €2.9 million in H1 2024, reflecting leaner operations post-restructuring.
- Substantial reduction in development expenses: Cost of development expenses decreased by over 96% from €16.0 million in H1 2023 to €0.6 million in H1 2024, reflecting the streamlined focus on retrofitting solar technology onto third party vehicles and the discontinuation of the Sion passenger car program.
- Strengthened cash position: The Company maintained a cash balance of €2.2 million as of June 30, 2024, which was further enhanced by receipt of the second tranche of funding from YA II PN, Ltd. (“Yorkville”) in September 2024 in the amount of €3.0 million. This funding reinforced the Company's financial stability and supported its operational growth.
Six-Month 2024 Milestone Achievements
- Exiting insolvency: The Company’s wholly-owned subsidiary, Sono Motors, successfully exited its self-administration proceedings in February 2024, marking what the Company believes is a crucial step towards the financial and operational stability of Sono.
- Additional funding: In H1 2024 Sono received funding commitments of up to €9 million, of which €4 million were received in February 2024 and €3 million in September 2024. Subject to compliance with the terms of the investment, the Company expects the commitments to position it to obtain sufficient funding for its business strategy and operations through June 2025.
- Commencement of OTCQB trading: On July 2, 2024, the Company's ordinary shares began trading on OTCQB under the symbol "SEVCF," enhancing access for investors and reinforcing shareholder transparency.
Recent Updates
- Green Innovation Award: Sono received the prestigious Green Innovation Award at the Intermobility and Bus Expo (IBE) in Rimini, Italy. The Company believes this accolade highlights the innovative and transformative nature of Sono's solar technology and reinforces its strong position in sustainable mobility solutions.
- Partnership with Hofmeister & Meincke: Sono is leveraging Hofmeister & Meincke’s strong market presence in Germany and globally to distribute its Solar Bus Kit, Solar Kits for trucks and vans and other solar products to potential customers. A recently completed training program for 80 Hofmeister & Meincke’s sales representatives ensures they are equipped to effectively promote Sono’s innovative solutions, expanding the reach of sustainable mobility technologies.
- Expanded product portfolio: Sono expanded its portfolio with new options for its solar bus kit, new solar kits for trucks, vans and trailers, as well as high-voltage solar solutions for refrigerated vehicles. These innovative solutions are designed to help fleet operators reduce fuel consumption, lower emissions and cut operational costs, showcasing Sono’s commitment to sustainable and versatile solar applications across various vehicle types.
- Progress Toward Planned Nasdaq Uplisting: On November 7, 2024, at an extraordinary general meeting of shareholders, key measures to advance Sono's planned uplisting to the Nasdaq Capital Market were approved. These included appointing Owen May to the Supervisory Board, approving amendments to the Articles of Association to meet Nasdaq requirements, and authorizing preferred shares intended to enable potential future conversion of debt into equity.
- Debt-to-Equity Conversion Term Sheet Signed: Sono has entered into a non-binding term sheet with Yorkville to convert approximately $32 million in outstanding debt into equity through the issuance of preferred shares. This initiative, pending the signing of definitive agreements, strengthens Sono’s balance sheet, reduces default risk, and marks significant progress towards the Company’s planned Nasdaq uplisting.
Looking Ahead
Managing Director, CEO and CFO George O’Leary said, “We believe our results demonstrate the resilience of our business model and the effectiveness of our strategic pivot to solar retrofit solutions. We see the €60.6 million profit and successful exit from insolvency mark as a key turning point for Sono, setting the stage for sustainable growth.”
The Company remains committed to advancing its solar integration technology, providing scalable solutions for the transportation sector and reducing dependence on fossil fuels.
