Bolt Projects Holdings, Inc. (formerly known as Bolt Threads, Inc.) reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on developing biomaterials products such as b-silk and Mylo, experienced a dramatic decline in revenue, with total revenue for the three months ending September 30, 2024, at $5,000, down from $1.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $80,000, a 96% decrease from $2.0 million in the prior year. This decline is attributed to reduced sales from the Vegan Silk Technology Platform, particularly the b-silk product.

Operating expenses surged to $20.2 million for the third quarter of 2024, compared to $5.2 million in the same quarter of 2023, marking a 292% increase. For the nine-month period, total operating expenses rose to $35.0 million, up 31% from $26.7 million in 2023. The increase in expenses was driven by higher research and development costs, which reached $3.5 million in Q3 2024, and general and administrative expenses, which totaled $15.1 million for the same period, reflecting a 275% increase year-over-year.

The company reported a net income of $6.4 million for the third quarter of 2024, a significant turnaround from a net loss of $5.6 million in the same quarter of 2023. However, for the nine months ended September 30, 2024, the net loss was $59.1 million, compared to a loss of $50.1 million in the prior year, indicating ongoing financial challenges.

Strategically, Bolt Projects completed a merger with Golden Arrow Merger Corp. on August 13, 2024, which resulted in the conversion of GAMC Class A and B common stock into the company’s common stock. The merger was treated as a reverse recapitalization, with Legacy Bolt deemed the accounting acquirer. The company raised approximately $5.3 million from the merger and PIPE financing, which has helped improve its cash position, with cash and cash equivalents reported at $6.5 million as of September 30, 2024, up from $0.4 million a year earlier.

Despite these developments, the company faces substantial doubt regarding its ability to continue as a going concern due to a history of losses and negative cash flows from operations. The accumulated deficit as of September 30, 2024, stood at $455.5 million. The company plans to seek additional capital to support its operations and product development, but it acknowledges the challenges posed by its current financial situation and market conditions.