Volcon Inc (VLCN)

[StockLogistics]

“6:30p ET 3/6/2023 - Globe Newswire
Volcon ePowersports Reports Annual 2022 Operational and Financial Results

GlobeNewswireMarch 06, 2023

AUSTIN, Texas, March 06, 2023 (GLOBE NEWSWIRE) -- Volcon Inc. (NASDAQ: VLCN) ("Volcon'' or the "Company"), the first all-electric, off-road powersports company, today reported its operational highlights and financial results for fiscal year 2022.


Company Highlights:

Through December 31, 2022 signed 151 dealers
Delivered the first 2023 Volcon Brats to customers in December 2022
Have taken pre-orders for the Stag of more than $116 million if all orders are fulfilled1
Taken delivery of our first three Stag validation units in early 2023 that include our custom suspension parts in addition to the GM propulsion components
Grunt EVO and Runt launch expected in the second quarter of 2023
We signed 7 new dealers in the fourth quarter of 2022. Jordan Davis, CEO notes "In the fourth quarter of 2022, we purposely slowed signing of powersports dealers as we expected product shortages as we transitioned the manufacturing of the Grunt to a third party manufacturer and dealt with the shortage of certain parts due to supply chain delays. In February 2023 we hired two new regional sales managers who will cover the Northeast and Southwest US, including California, where we already have dealers who have expressed an interest in carrying the Volcon product line up. We have also hired a regional sales manager to build our dealer network in Canada. We expect to have over 250 dealers in the US and Canada signed by the end of 2023. Pre-orders and interest for the Stag from dealers and consumers continue to be strong. As of the date of our third quarter earnings release we had received pre-orders exceeding our initial planned production volume for 2023 and we continued to take waitlist orders from interested dealers and end users alike during the fourth quarter of 20221.

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1 Pre-orders are cancellable until they are fulfilled.

We launched the Volcon Brat, the Company's first E-Bike in September 2022, and began taking pre-orders during the third quarter of 2022. We began shipping the Brat to customers in December 2022 and we recognized revenue of approximately $500,000 in the fourth quarter of 2022. In February 2023, we began selling Brats on a direct-to-consumer basis in the US. Customers can purchase a Brat from our website and have it delivered to a location specified by the customer. Davis notes "the launch of the Brat provides Volcon with an entry into the very popular E-Bike product category and it's another way to connect with consumers who are interested in electric vehicle options."

The Stag's development has progressed significantly during the fourth quarter of 2022 and into early 2023. In early 2023, Volcon took delivery of the first three Stag validation units that include the Volcon designed suspension, GM propulsion components, as well as Elka shocks. Christian Okonsky, Chief Technology Officer notes "although there is still significant design and validation work to be completed, these advanced validation units have met our expectations for design and engineering and we expect to see continued improvement as we field additional iterations." Delivery of the Stag is expected to begin late in the second quarter of 2023.

In 2023, we received the first prototypes of the Grunt EVO, the replacement for the Grunt, which includes replacing the chain drive with a Gates belt drive, an improved rear suspension and ergonomically improved seat, as well as modifications to styling. The Grunt EVO will also be available in three colors. In 2023 we also received the first prototypes of the Runt, a smaller version of the Grunt for smaller statured riders. The Runt has a hub motor rather than a chain or belt drive and will also be available in two colors. Davis comments "we have taken feedback from customers on the Grunt and improved the product with the new features included in the Grunt EVO. We are also excited to finally bring the Runt to market as there has been interest in this product since we first announced we would design and build it in 2020. While we abhor delays, it was in the best interest of the company and shareholders to redesign the bike and explore more profitable choices for manufacturing and component sourcing." We expect both the Grunt EVO and Runt to be available for sale in the second quarter of 2023.”