Shorepower Technologies Reports 78.7% Revenue Decline in Latest Quarter, Despite Six-Month Growth

Shorepower Technologies Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $7.1 million for the three months ended June 30, 2025, a decrease of 78.7% compared to $33.4 million in the same period last year. For the six months, revenue increased to $171.8 million, up 361.8% from $37.2 million in the prior year, primarily due to new government contracts. Despite the revenue growth over six months, the company reported a net loss of $105.9 million for the quarter, slightly improved from a loss of $116.3 million in the previous year, and a total net loss of $100 million for the six months, down from $233.8 million.

The company’s balance sheet as of June 30, 2025, showed total assets of $145 million, a significant increase from $65.4 million at the end of 2024. Current assets rose to $144 million, driven by an increase in accounts receivable, which reached $101.7 million, compared to none reported in the previous period. However, total liabilities also increased to $1.9 billion from $1.7 billion, with current liabilities rising to $987.1 million, reflecting higher accounts payable and accrued expenses. The accumulated deficit grew to $3.04 billion, indicating ongoing financial challenges.

Strategically, Shorepower has undergone significant organizational changes following its merger with Shurepower, LLC in March 2023. The merger has positioned the company as a manufacturer and service provider of electric vehicle supply equipment and truck stop electrification services, with 60 operational facilities across 31 states. The management team, led by CEO Jeff Kim, has extensive experience in transportation electrification and has managed over $16 million in government contracts. The company is also focused on expanding its infrastructure and service offerings, with plans to meet specific milestones that could lead to additional stock issuance to key personnel.

Operationally, Shorepower reported a decrease in professional fees and general administrative expenses, which fell by 61.7% and 56.7%, respectively, compared to the previous year. The company’s employee headcount remains stable, with no significant changes reported. The company has also seen a notable increase in customer concentration, with two customers accounting for over 95% of total revenue in the latest quarter. This concentration raises concerns about revenue stability and reliance on a limited customer base.

Looking ahead, Shorepower Technologies Inc. aims to leverage its recent growth in government contracts and expand its market presence in the electric vehicle infrastructure sector. However, the company acknowledges the challenges posed by its accumulated deficit and ongoing losses, which raise substantial doubt about its ability to continue as a going concern. Management is focused on improving operational efficiencies and exploring additional financing options to support its strategic initiatives.