Nu Ride Inc. Reports No Revenue for 2024 Following Bankruptcy, Sees Improved Net Loss

Nu Ride Inc., formerly known as Lordstown Motors Corp., has reported its financial performance for the year ending December 31, 2024, following its emergence from Chapter 11 bankruptcy on March 14, 2024. The company recorded no revenues for the year, a significant decline from $2.34 million in net sales in 2023. The cessation of production and sales of its flagship vehicle, the Endurance, in June 2023, due to bankruptcy proceedings, contributed to this lack of revenue. The cost of sales for 2023 was reported at $91.55 million, reflecting the expenses incurred prior to the bankruptcy filing.

In terms of operating expenses, Nu Ride Inc. reported a total of $10.89 million for 2024, a substantial decrease from $259.69 million in 2023. This reduction was primarily due to the company's restructuring efforts, which included significant cuts in selling, general, and administrative expenses, which fell from $54.41 million in 2023 to $12.90 million in 2024. The company also recognized a legal settlement and litigation benefit of $6.03 million in 2024, which was not present in the previous year. The net loss attributable to common shareholders for 2024 was $10.84 million, a marked improvement compared to a net loss of $345.56 million in 2023.

Strategically, the company has undergone significant changes, including the sale of certain assets to LandX Motors Inc. for $10.2 million, which closed on October 27, 2023. This sale was part of the company's efforts to streamline operations and focus on claims administration and litigation, particularly the ongoing Foxconn Litigation, which the company initiated in June 2023. The litigation seeks damages for alleged breaches of contract and tortious conduct by Foxconn, which the company claims have harmed its operations and prospects.

Operationally, Nu Ride Inc. has transitioned to a shell company with limited operations, primarily focusing on resolving claims and pursuing potential business opportunities. As of December 31, 2024, the company had approximately $23.1 million in cash and cash equivalents, alongside $6.4 million in short-term investments. The company has no full-time employees, relying instead on consultants and professional service providers to manage its operations. The board of directors has been restructured, with all previous executive officers terminated, and a new CEO appointed.

Looking ahead, Nu Ride Inc. aims to explore strategic alternatives and potential business combinations to create value, particularly leveraging its net operating loss carryforwards, which totaled approximately $1.1 billion in federal losses as of December 31, 2024. However, the company acknowledges the inherent risks and uncertainties associated with its current financial condition and ongoing litigation, which may impact its ability to generate future revenue and achieve profitable operations.