Nxu, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets decreased to $8.44 million from $13.26 million at the end of 2023, while total current assets fell to $3.05 million from $4.10 million. Total liabilities also declined to $5.09 million from $6.60 million, with current liabilities decreasing to $5.02 million from $5.61 million. Stockholders' equity dropped to $3.35 million from $6.66 million, and the accumulated deficit increased to $(277.71 million) from $(259.64 million).

Revenue for the three months ended September 30, 2024, was $6,000, a sharp decline from $117,000 in the same period of 2023. For the nine months, revenue totaled $17,000, down from $117,000 in the prior year. The company reported total operating expenses of $3.05 million for Q3 2024, significantly reduced from $11.33 million in Q3 2023. The operating loss improved to $(3.07 million) from $(12.23 million) year-over-year, while the net loss for the quarter was $(4.99 million), compared to $(10.44 million) in Q3 2023.

For the nine-month period, the operating loss was $(14.27 million), an improvement from $(40.35 million) in the same period of 2023, with a net loss of $(18.07 million) compared to $(37.34 million) previously. The company’s cash position as of September 30, 2024, was $2.2 million, with net cash used in operating activities amounting to $(10.23 million), down from $(23.70 million) in the prior year.

Strategically, Nxu has been active in restructuring and exploring mergers. On October 23, 2024, the company entered into a merger agreement with Verde Bioresins, Inc., which will result in Verde becoming a wholly owned subsidiary of Nxu. This follows a reorganization merger completed on May 12, 2023, with Atlis Motor Vehicles Inc. Additionally, Nxu has been evaluating strategic alternatives to enhance long-term value creation.

The company has also implemented cost-saving measures, including headcount reductions across various departments, and has paused production of its battery systems. Nxu's management is currently addressing financial risks by exploring funding options, including potential equity and debt financing, as well as evaluating the sale of assets. The company has incurred recurring losses and has not achieved profitability in its operations, raising substantial doubt about its ability to continue as a going concern.