Shorepower Technologies Inc. (formerly United States Basketball League, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in Electric Vehicle Supply Equipment (EVSE) and Truck Stop Electrification (TSE), experienced a notable increase in revenue, with total revenue for Q3 2024 reaching $15,442,000, up from $3,676,000 in Q3 2023. For the nine months ended September 30, 2024, total revenue was $52,779,000, compared to $19,850,000 for the same period in the previous year.

Despite the revenue growth, the company reported a net loss of $77,195,000 for Q3 2024, an improvement from a net loss of $141,023,000 in Q3 2023. For the nine months ended September 30, 2024, the net loss was $311,005,000, down from $544,584,000 in the same period last year. The reduction in losses is attributed to a decrease in total operating expenses, which were $95,200,000 for Q3 2024, slightly higher than $94,692,000 in Q3 2023, but significantly lower for the nine-month period at $297,604,000 compared to $447,449,000 in 2023.

The company’s accumulated deficit increased to $(2,801,734,000) as of September 30, 2024, from $(2,490,729,000) at the end of 2023. Total stockholders’ deficit also rose to $(1,536,709,000) from $(1,225,704,000) during the same period. Current liabilities surged to $690,061,000, up from $501,278,000 at the end of 2023, while total liabilities increased to $1,609,742,000 from $1,534,203,000.

Strategically, Shorepower Technologies underwent a merger with Shorepower, LLC on March 22, 2023, which was treated as a reverse recapitalization. This merger resulted in a reduction of the accumulated deficit and an increase in additional paid-in capital by approximately $5,872,000. The company has also made changes to its management structure, with CEO Jeff Kim receiving a salary of $200,000 and potential incentives based on performance milestones.

The company’s cash position deteriorated significantly, with cash at the end of Q3 2024 reported at $19,381,000, down from $285,623,000 at the end of 2023. This decline reflects a net cash used in operating activities of $(152,998,000) for the nine months ended September 30, 2024, compared to $(122,488,000) for the same period in 2023. The company did not issue any common stock for cash during this period, contrasting with $660,000 raised in the previous year.

Overall, while Shorepower Technologies Inc. has shown revenue growth and reduced losses, it faces challenges with increasing liabilities and a declining cash position.