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New words:
abetting, abreast, al, alia, alleviate, ample, appealing, Baifu, belief, Bhavsar, Bin, BlackRock, boast, bulk, caption, captioned, cast, Ch, complaint, core, county, creation, crucial, cyberattack, Dan, Dec, Del, Denish, derecognised, disbursed, drivetrain, embarking, ERP, eventually, Evoy, fallout, Feb, forefront, fundraising, Gaussin, Gidardo, Gidaro, groundbreaking, HF, highlight, hoped, Hopkinsville, Hsu, Huang, Hudson, Incompatibility, inter, Intercity, interface, Israel, Jacob, Jan, Jiao, Kentucky, leisure, LGBTQ, LGMG, Lin, lingered, log, Mar, Marti, Matt, misleading, monetization, motion, necessitated, necessitating, petition, Piccadilly, Pingxun, pioneering, plaintiff, possession, posture, preconceived, predecessor, prevalent, prioritizing, privileged, profile, progressed, promisingly, prompted, purported, quantified, realm, refining, repurposed, revolutionary, robust, room, safeguard, scenario, Schelling, semi, Shangzhi, showing, Shuge, Southern, Stoncor, strive, strongly, SVP, Tenn, testament, Tex, timetable, Timnath, tolerance, tone, underperform, undrawn, unexpectedly, unfavourable, unmet, upcoming, vigorously, vital, Wang, Wealth, whilst, White, William, Windsor, worker, Yan
Removed:
attempted, consultant, enactment, letter, outbreak, prepare, retention, stop, treat
Financial report summary
?Risks
- There is substantial doubt regarding our ability to continue as a going concern.
- We may be unable to meet our current capital requirements and will require additional capital to meet our outstanding accounts payable and current liabilities.
- Because substantially all of our revenues are currently derived from outside of the U.S. and the significant costs and restrictions associated with the repatriation of cash from our non-U.S. operations, we may not have sufficient cash flow to cover our liabilities, which may result in a material adverse effect on the Company’s business.
- Our revenue heavily depends on a limited customer base, a trend likely to continue.
- We primarily produce and sell lithium-based battery systems. Should a viable alternative to lithium-based batteries emerge and gain market acceptance, it could significantly harm our business, financial health, and operational results. Furthermore, our failure to keep up with rapid technological changes and evolving industry standards within the lithium-based battery market may cause our products to become obsolete and less marketable, resulting in loss of market share to our competitors.
- Failing to anticipate customer preferences and develop appealing products could prevent us from maintaining or growing our revenue and profitability.
- Inaccurate manufacturing planning may lead to surplus inventory or shortages.
- Third parties manufacture essential chargers, poles, and stations for our products, upon which our marketing efforts depend. If any of the charging station networks are not compatible with our products and technologies, our sales could be adversely affected. The lack of a network or a compatible network could affect the implementation of our strategy and adversely affect our business and our operating results.
- Environmental regulation compliance is costly; non-compliance could lead to fines, damage our reputation, and negatively impact our business.
- U.S. tax law changes on international activities could significantly affect our finances and operational results.
- We may face unforeseen tax liabilities that could affect our financial health.
- International operations could lead to complex and unfavorable tax outcomes.
- Our $200 million grant from the DOE was cancelled and there is no certainty that the Company will qualify or have access to future awards or grants in the United States.
- Cyberattacks or risks related to cybersecurity could have a material effect on our business.
- PRC government regulations significantly impact our Chinese operations, with changes potentially increasing costs or limiting activities. Specifically, as a result of our operations in China, we could become subject to regulations issued by
- the CAC and the requirements of the PRC government’s cyber and data security laws, which could impact our activities in China.
- Our securities could face trading bans in the U.S. if the PCAOB can’t fully inspect or investigate our China-based auditors under the HFCAA. The delisting of the securities, or the threat of their being delisted, may materially and adversely affect the value of your investment.
- Our reliance on unpatented proprietary technologies is significant.
- Our success partly hinges on protecting our trade secrets, confidential information, technology, trademarks, and other intellectual property rights.
- Infringement claims against us could lead to substantial costs.
Management Discussion
- This section of this Form 10-K generally discusses 2022 and 2023 items and year-to-year comparisons between 2022 and 2023. Discussions of 2021 items and year-to-year comparisons between 2021 and 2022 are not included in this Form 10-K, and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-K filed on March 16, 2023.
- Our revenue increased from approximately $204.5 million for the year ended December 31, 2022 to approximately $306.6 million for 2023 primarily driven by an increase in sales volume from approximately 694.2 MWh for year ended December 31, 2022 to approximately 1,139.6 MWh for the same period in 2023, which is due to the increase in the sales of battery cell products to new and existing customers in the Asia & Pacific region and Europe.
- Our cost of revenues for the year ended December 31, 2023 increased 27.6% compared to the year ended December 31, 2022 as a result of our revenue increase, with the rate of increase being lower than the 49.9% increase in our revenues compared to the year ended December 31, 2022.