ECD Automotive Design Reports $25.1M Revenue and $10.8M Net Loss for 2024

ECD Automotive Design, Inc. reported total revenue of $25.1 million for the year ended December 31, 2024, a 29.1% increase compared to the $19.5 million reported in 2023. The company experienced a net loss of $10.8 million in 2024, significantly higher than the $1.2 million net loss in 2023. The increase in net loss is attributed to increased costs associated with becoming a public company and expenses related to financial statement restatements. The company's gross margin was 23.4% in 2024, a 100 basis point improvement from the previous year.

Significant changes in 2024 included the acquisition of assets from BNMC Continuation Cars LLC for up to $1.25 million, paid through the issuance of common stock. The company also entered into several agreements, including investor relations and marketing services agreements resulting in the issuance of common stock, and various financing agreements with Defender SPV LLC, involving the issuance of both common stock and convertible notes. Additionally, there were changes in officer and director positions, with Benjamin Piggott appointed as Chief Financial Officer and Keven Kastner appointed as Chief Revenue Officer.

Operational developments included the delivery of 82 vehicles in 2024 across various models, including the addition of Jaguar E-Types, Ford Mustangs, and Toyota FJ40s to its product portfolio. The company currently has 67 contracted projects in its pipeline and operates two production lines, with plans to utilize a third line for quality control and warranty services. ECD also expanded its retail strategy with planned locations in West Palm Beach, Florida, and Nantucket, Massachusetts. The company employs 105 people, including 67 ASE-certified technicians.

ECD estimates its 2024 production represented over 25% of the Land Rover Defender restoration and customization market in the US. The company's growth was driven by a 28% annual increase in units sold and a 9% annual increase in the average selling price over the past three years. Approximately 20% of sales were to repeat customers. The company's market approach focuses on a high-end, immersive client experience, involving clients in design decisions every two weeks throughout the 12-14 month build process.

The company's outlook includes plans to increase annual revenues to between $70 million and $80 million, with a gross margin between 35% and 40%, upon full capacity utilization of its third production line. The company also intends to scale marketing efforts, expand its retail presence, and introduce new revenue streams. However, the 10-K filing also highlights several risk factors, including dependence on a limited number of vehicle models, competition from larger automotive manufacturers, and the need for additional financing. The company's financial statements also indicate substantial doubt about its ability to continue as a going concern for the next twelve months.