Nu Ride (NRDE) Q2 2024 earnings summary

Executive summary

• Emerged from Chapter 11 bankruptcy on March 14, 2024, rebranding as Nu Ride Inc. and ceasing all vehicle production and sales.

• Current operations focus on claims administration, litigation (notably against Foxconn), and exploring strategic alternatives to maximize NOLs.

• All full-time employees, including pre-emergence executives, were terminated upon emergence; some now serve as consultants.

• Company’s assets now primarily consist of cash, litigation claims, and tax attributes.

Financial highlights

• Net income of $1.5 million for Q2 2024, compared to a net loss of $154.5 million in Q2 2023.

• Net loss of $7.0 million for the six months ended June 30, 2024, versus a net loss of $326.2 million for the same period in 2023.

• Cash and cash equivalents were $20.9 million, with $41.3 million in restricted cash as of June 30, 2024.

• No sales or cost of sales in 2024 following cessation of operations; 36 vehicles sold in H1 2023 for $2.3 million revenue.

• SG&A expenses dropped to $1.5 million in Q2 2024 from $57.7 million in Q2 2023, reflecting the wind-down of operations.

Outlook and guidance

• Substantial doubt exists regarding ability to continue as a going concern due to accumulated deficit, lack of revenue, and ongoing claims.

• Future operations depend on resolution of claims, outcome of Foxconn litigation, and potential business combinations.

• Company intends to explore strategic alternatives to maximize value from NOLs.