Sono Group NV Q3 FY2022 earnings call

• Sion progress: 17 vehicles and body-in-whites produced, with testing ongoing in locations like Sweden, the Northern U.S., and Spain. - Sono Solar: Achieved 130% growth since IPO, with customers including Scania, MAN, and Pepper, integrating solar technology into vehicles. - Patent activity: 240% growth in patents granted or filed, with 34 patents granted or filed. - Staff: Over 418 employees by end of Q3 2022, with 50% international background. - Partnerships: Bosch Automotive for servicing in Europe, Continental for electric drive units and other components. - U.S. tour: Positive feedback received, highlighting interest in solar EVs.

In the first nine months of 2022, Sono Solar and Sono Digital generated revenue of €180,000. In Q3 2022, revenue was €138,000. There are 21,000 B2C Sion reservation holders and 43,000 total Sion preorders and reservations, equating to a potential backlog over $1 billion. Sono Solar saw 130% growth since its IPO, with 23 customers, including industry leaders like Mitsubishi, Scania, and MAN.

• Need approximately €130 million to reach pre-series vehicle release next summer, then €80 million to start delivering Sion in Q1 2024. - Secured €30 million from convertible debentures and €7 million from committed equity facility. - Launching a community marketing campaign 'Save Sion' to raise €84 million via 3,500 Sion full price payments. - Plan to tap capital markets for additional €50 million and explore IP lending and asset-based financing.

• Challenging capital market conditions affecting equity financing. - Potential delays in Start of Production (SOP) due to reduced funding speed, moving from Q2 2023 to Q1 2024. - Uncertainty around the success of the community marketing campaign impacting funding and production timelines.

Q: Christopher Souther asked about steps and timelines for design wins with automotive customers and cash needs for pre-series production.

A: Laurin Hahn discussed prototype, series development steps; Torsten Kiedel talked about timing related to the community campaign.

Q: Eric Stine inquired about the 50-day campaign's impact on suppliers and strategic investments from large OEMs.

A: Laurin Hahn mentioned transparency with suppliers and interest from potential OEMs in strategic investments.

Q: Andres Sheppard asked about funding strategy, cash burn, and ATM usage.

A: Torsten Kiedel discussed limited usage of ATM due to stock volume, and Thomas Hausch talked about internal burn rate and CapEx needs.

Q: Austin Zocco asked about competition with Lightyear and concerns about upsetting customers with delivery delays.

A: Laurin Hahn compared Sion's affordability to Lightyear's product; Thomas Hausch spoke about transparency with the community and sprint reports.