SEC Filing | Nuvve Holding Corp.

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nvve-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number: 001-40296

NUVVE HOLDING CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

86-1617000

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

2488 Historic Decatur Road, Suite 200

San Diego,

California

92106

(Address of principal executive offices)

(Zip Code)

(619)

456-5161

(Registrant’s telephone number), including area code

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

NVVE

The Nasdaq Stock Market

Warrants to Purchase Common Stock

NVVEW

The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes x No

As of August 6, 2024, 6,527,227 shares of the issuer’s common stock, par value $0.0001 per share, were issued and outstanding.

NUVVE HOLDING CORP.

FORM 10-Q FOR THE QUARTER ENDED June 30, 2024

TABLE OF CONTENTS


PART I—FINANCIAL INFORMATION			1
	Item 1.	Interim Condensed Consolidated Financial Statements and Notes (Unaudited).	1
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	32
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	42
	Item 4.	Controls and Procedures.	42

PART II—OTHER INFORMATION			43
	Item 1.	Legal Proceedings.	43
	Item 1A.	Risk Factors.	43
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	45
	Item 3.	Defaults Upon Senior Securities.	45
	Item 4.	Mine Safety Disclosures.	45
	Item 5.	Other Information.	45
	Item 6.	Exhibits.	45

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q and other documents incorporated herein by reference contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about us, our future performance, our financial condition, our products, our business strategy, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. These forward-looking statements can be identified by the use of words like “anticipates,” “estimates,” “projects,” “expects,” “plans,” “believes,” “intends,” “will,” “could,” “may,” “assumes” and other words of similar meaning. These statements are based on management’s beliefs, assumptions, estimates and observations of future events based on information available to our management at the time the statements are made and include any statements that do not relate to any historical or current fact. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward-looking statements due in part to the risks, uncertainties and assumptions described in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as well as those discussed elsewhere in this report and other factors described from time to time in our filings with the SEC.

Factors that could cause actual results to differ materially from those in forward-looking statements include, (i) risks related to the rollout of Nuvve's business and the timing of expected business milestones; (ii) Nuvve's dependence on widespread acceptance and adoption of electric vehicles and increased installation of charging stations; (iii) Nuvve's ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Nuvve's accounting staffing levels; (iv) Nuvve's current dependence on sales of charging stations for most of its revenues; (v) overall demand for electric vehicle charging and the potential for reduced demand if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of electric vehicles or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; (vi) potential adverse effects on Nuvve's backlog, revenue and gross margins if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by Nuvve; (vii) the effects of competition on Nuvve's future business; (viii) risks related to Nuvve's dependence on its intellectual property and the risk that Nuvve's technology could have undetected defects or errors; (ix) the risk that we conduct a portion of our operations through a joint venture exposes us to risks and uncertainties, many of which are outside of our control; (x) that our joint venture with Levo Mobility LLC may fail to generate the expected financial results, and the return may be insufficient to justify our investment of effort and/or funds; (xi) changes in applicable laws or regulations; (xii) the COVID-19 pandemic and its effect directly on Nuvve and the economy generally; (xiii) risks related to disruption of management time from ongoing business operations due to our joint ventures; (xiv) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (xv) the possibility that Nuvve may be adversely affected by other economic, business, and/or competitive factors; and (xvi) risks related to the benefits expected from the $1.2 trillion dollar infrastructure bill passed by the U.S. House of Representatives (H.R. 3684), as well as other risks described in this Quarterly Report on Form 10-Q and other factors described from time to time in our filings with the SEC.

Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this Quarterly Report on Form 10-Q and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required under federal securities laws and the rules and regulations of the SEC.

PART I—FINANCIAL INFORMATION

Item 1. Interim Financial Statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30, 2024		December 31, 2023
Assets
Current assets
Cash	$	1,431,414	$	1,534,660
Restricted cash	480,000		480,000
Accounts receivable, net	516,193		1,724,899
Inventories	6,044,136		5,889,453

Prepaid expenses	789,112		994,719
Deferred costs	1,394,824		1,667,602
Other current assets	633,565		751,412
Total current assets	11,289,244		13,042,745

Property and equipment, net	709,916		766,264
Intangible assets, net	1,132,484		1,202,203
Investment in equity securities	670,951		670,951
Investment in leases	106,916		112,255
Right-of-use operating lease assets	4,593,229		4,839,526

Financing receivables	—		288,872
Security deposit, long-term	24,285		27,690
Total assets	$	18,527,025	$	20,950,506

Liabilities and Equity

Current liabilities
Accounts payable	$	1,869,527	$	1,694,325

Accrued expenses	4,920,770		4,632,101
Deferred revenue	1,069,978		1,030,056

Operating lease liabilities - current	848,497		856,250

Other liabilities	7,170		105,141

Total current liabilities	8,715,942		8,317,873

Operating lease liabilities - noncurrent	4,413,069		4,646,383
Warrants liability	1,484,504		4,621
Derivative liability - non-controlling redeemable preferred shares	313,354		309,728
Other long-term liabilities	867,404		681,438
Total liabilities	15,794,273		13,960,043

Commitments and Contingencies
Mezzanine equity
Redeemable non-controlling interests, preferred shares, zero par value, 1,000,000 shares authorized, 3,138 shares issued and outstanding at June 30, 2024 and December 31, 2023; aggregate liquidation preference of $3,901,709 and $3,750,201 at June 30, 2024 and December 31, 2023, respectively	4,516,561		4,193,629
Class D Incentive units, zero par value, 1,000,000 units authorized; 50,000 units issued and outstanding at June 30, 2024 and December 31, 2023, respectively	278,681		216,229
Stockholders’ equity


Preferred stock, $0.0001 par value, 1,000,000 shares authorized; zero shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	—		—

Common stock, $0.0001 par value, 100,000,000 shares authorized; 6,527,227 and 1,246,589 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	6,403		5,927

Additional paid-in capital	162,146,327		155,615,962
Accumulated other comprehensive income	71,932		93,676
Accumulated deficit	(158,894,045)		(148,240,859)
Nuvve Holding Corp. Stockholders’ Equity	3,330,617		7,474,706
Non-controlling interests	(5,393,107)		(4,894,101)
Total stockholders’ (deficit) equity	(2,062,490)		2,580,605
Total Equity	2,732,752		6,990,463
Total Liabilities and Equity	$	18,527,025	$	20,950,506

The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue
Products	$	369,192	$	1,546,723	$	845,661	$	2,975,609
Services	301,567		502,286		521,438		853,785
Grants	131,421		71,118		214,837		145,519
Total revenue	802,180		2,120,127		1,581,936		3,974,913
Operating expenses
Cost of products	256,902		1,311,268		593,574		2,679,841
Cost of services	345,813		639,848		518,585		732,179
Selling, general, and administrative	4,489,772		6,097,336		10,417,882		12,269,360
Research and development	1,473,567		2,387,215		3,063,144		4,487,303
Total operating expenses	6,566,054		10,435,667		14,593,185		20,168,683

Operating loss	(5,763,874)		(8,315,540)		(13,011,249)		(16,193,770)
Other income (expense)
Interest income, net	10,736		20,644		19,748		88,981


Change in fair value of warrants liability	1,584,772		143,794		2,312,434		(69,964)
Change in fair value of derivative liability	7,907		83,059		(3,626)		6,219
Other, net	211,444		83,946		4,941		524,332
Total other income, net	1,814,859		331,443		2,333,497		549,568
Loss before taxes	(3,949,015)		(7,984,097)		(10,677,752)		(15,644,202)
Income tax expense	—		—		—		—
Net loss	$	(3,949,015)	$	(7,984,097)	$	(10,677,752)	$	(15,644,202)
Less: Net (loss) income attributable to non-controlling interests	(10,268)		8,466		(24,566)		14,754
Net loss attributable to Nuvve Holding Corp.	$	(3,938,747)	$	(7,992,563)	$	(10,653,186)	$	(15,658,956)
Less: Preferred dividends on redeemable non-controlling interests	76,504		70,678		151,508		139,970
Less: Accretion on redeemable non-controlling interests preferred shares	161,466		161,466		322,932		322,932
Net loss attributable to Nuvve Holding Corp. common stockholders	$	(4,176,717)	$	(8,224,707)	$	(11,127,626)	$	(16,121,858)

Net loss per share attributable to Nuvve Holding Corp. common stockholders, basic and diluted	$	(0.67)	$	(11.86)	$	(2.15)	$	(24.68)

Weighted-average shares used in computing net loss per share attributable to Nuvve Holding Corp. common stockholders, basic and diluted	6,230,284		693,353		5,172,358		653,245

The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Net loss	$	(3,949,015)	$	(7,984,097)	$	(10,677,752)	$	(15,644,202)
Other comprehensive (loss) income, net of taxes
Foreign currency translation adjustments, net of taxes	(8,093)		1,299		(21,744)		10,233
Total comprehensive loss	$	(3,957,108)	$	(7,982,798)	$	(10,699,496)	$	(15,633,969)
Less: Comprehensive income (loss) attributable to non-controlling interests	(10,268)		8,466		(24,566)		14,754
Comprehensive loss attributable to Nuvve Holding Corp.	$	(3,946,840)	$	(7,991,264)	$	(10,674,930)	$	(15,648,723)
Less: Preferred dividends on redeemable non-controlling interests	(76,504)		(70,678)		(151,508)		(139,970)
Less: Accretion on redeemable non-controlling interests preferred shares	(161,466)		(161,466)		(322,932)		(322,932)
Comprehensive loss attributable to Nuvve Holding Corp. common stockholders	$	(3,708,870)	$	(7,759,120)	$	(10,200,490)	$	(15,185,821)

The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)



	Common Stock	Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit			Non-controlling Interests		Total
			Shares					Amount
Balances December 31, 2023		1,246,589		5,927		155,615,962			93,676		(148,240,859)		(4,894,101)		$	2,580,605
Exercise of stock options and vesting of restricted stock		174,137		18		(18)			—		—		—		—
Stock-based compensation		—		—		846,514			—		—		—		846,514

Proceeds from common stock offering, net of offering costs		3,035,000		304		5,029,118			—		—		—		5,029,422

Issuance of Pre-funded Warrants		1,614,916		108		—			—		—		—		108

Currency translation adjustment		—		—		—			(13,651)		—		—		(13,651)
Preferred dividends - non-controlling interest		—		—		—			—		—		(75,004)		(75,004)
Accretion on redeemable non-controlling interests preferred shares		—		—		—			—		—		(161,466)		(161,466)
Net loss		—		—		—			—		(6,714,438)		(14,299)		(6,728,737)
Balances March 31, 2024		6,070,642		$	6,357	$	161,491,576		$	80,025	$	(154,955,297)	$	(5,144,870)	$	1,477,791
Exercise of stock options and vesting of restricted stock		6,606		1		(1)			—		—		—		—
Stock-based compensation		—		—		481,800			—		—		—		481,800



Issuance of Pre-funded Warrants		149,979		15		(15)			—		—		—		—
Exercise of Warrants		300,000		30		172,967			—		—		—		172,997
Currency translation adjustment		—		—		—			(8,093)		—		—		(8,093)
Preferred dividends - non-controlling interest		—		—		—			—		—		(76,504)		(76,504)
Accretion on redeemable non-controlling interests preferred shares		—		—		—			—		—		(161,466)		(161,466)
Net loss		—		—		—			—		(3,938,747)		(10,268)		(3,949,015)
Balances June 30, 2024		6,527,227		$	6,403	$	162,146,327		$	71,932	$	(158,894,044)	$	(5,393,108)	$	(2,062,490)

The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (continued)

(Unaudited)


	Common Stock	Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit			Non-controlling Interests		Total
			Shares					Amount
Balances December 31, 2022		606,804		$	2,427	$	144,073,505		$	76,182	$	(116,956,528)	$	(3,950,186)	$	23,245,400
Exercise of stock options and vesting of restricted stock		2,283		9		(9)			—		—		—		—
Stock-based compensation		—		—		1,414,183			—		—		—		1,414,183
Proceeds from Direct Offering, net of offering costs		13,587		54		469,946			—		—		—		470,000
Proceeds from common stock offering, net of offering costs		1,966		8		136,709			—		—		—		136,717
Currency translation adjustment		—		—		—			8,934		—		—		8,934
Preferred dividends - non-controlling interest		—		—		—			—		—		(69,292)		(69,292)
Accretion on redeemable non-controlling interests preferred shares		—		—		—			—		—		(161,466)		(161,466)
Net loss		—		—		—			—		(7,666,393)		6,288		(7,660,105)
Balances March 31, 2023		624,639		2,498		146,094,334			85,116		(124,622,921)		(4,174,656)		17,384,371
Exercise of stock options and vesting of restricted stock options		15,610		62		391,129			—		—		—		391,191
Stock-based compensation		—		—		1,069,188			—		—		—		1,069,188
Proceeds from Direct Offering, net of offering costs		107,768		432		1,876,760			—		—		—		1,877,192
Proceeds from common stock offering, net of offering costs		33,409		134		644,773			—		—		—		644,907
Currency translation adjustment		—		—		—			1,299		—		—		1,299
Preferred dividends - non-controlling interest		—		—		—			—		—		(70,678)		(70,678)
Accretion on redeemable non-controlling interests preferred shares		—		—		—			—		—		(161,466)		(161,466)
Net loss		—		—		—			—		(7,992,563)		8,466		(7,984,097)
Balances June 30, 2023		781,426		$	3,126	$	150,076,184		$	86,415	$	(132,615,484)	$	(4,398,334)	$	13,151,907

The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended June 30,
	2024		2023
Operating activities
Net loss	$	(10,677,752)	$	(15,644,202)
Adjustments to reconcile to net loss to net cash used in operating activities
Depreciation and amortization	179,170		156,290
Stock-based compensation	1,390,808		2,069,227



Change in fair value of warrants liability	(2,312,434)		69,964
Change in fair value of derivative liability	3,626		(6,219)
Warrants issuance costs	305,065		—

Gains from sale of investments in equity securities	—		(325,155)
Noncash lease expense	252,997		233,730
Change in operating assets and liabilities
Accounts receivable	1,208,706		(903,652)
Inventory	(154,683)		2,612,535
Prepaid expenses and other assets	921,517		249,728
Accounts payable	175,202		(1,595,737)
Due to customers	—		2,980,318
Accrued expenses and other liabilities	(74,049)		1,195,845
Deferred revenue	45,261		(140,783)
Net cash used in operating activities	(8,736,566)		(9,048,111)
Investing activities

Purchase of property and equipment	(53,103)		(101,775)

Proceeds from sale of investments in equity securities	—		1,325,155

Net cash (used) provided in investing activities	(53,103)		1,223,380
Financing activities












Proceeds from exercise of warrants	172,997		—
Proceeds from Direct Offering of common stock, net of issuance costs	—		2,347,192
Proceeds from common stock offering, net of issuance costs	8,516,741		781,624

Payment of finance lease obligations	(5,477)		(4,480)






Net cash provided in financing activities	8,684,261		3,124,336
Effect of exchange rate on cash	2,162		5,503
Net decrease in cash and restricted cash	(103,246)		(4,694,892)
Cash and restricted cash at beginning of year	2,014,660		16,233,896
Cash and restricted cash at end of period	$	1,911,414	$	11,539,004









The accompanying notes are an integral part of these condensed consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Organization and Description of Business

Description of Business

Nuvve Holding Corp., a Delaware corporation headquartered in San Diego, California (the “Company” or “Nuvve”), was founded on November 10, 2020 under the laws of the state of Delaware. On March 19, 2021, the Company (at the time known as NB Merger Corp.) acquired the outstanding shares of Nuvve Corporation (“Nuvve Corp.”), and the Company changed its name to Nuvve Holding Corp.

Reverse Stock Split

At the Company’s Special Meeting of Stockholders held on January 5, 2024, the Company’s stockholders approved a proposal to authorize a reverse stock split of the Company’s common stock, at a ratio within the range of 1-for-2 to 1-for-40. The Board approved a 1-for-40 reverse split ratio, and on January 19, 2024, the Company filed a Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company with the Secretary of State of the State of Delaware to effect the reverse split effective January 19, 2024. The reverse stock split is also applicable to the Company’s outstanding warrants, stock options and restricted stock units. The number of shares of common stock into which these outstanding securities are convertible or exercisable are adjusted proportionately as a result of the reverse stock split. The exercise prices of any outstanding warrants or stock options will also be proportionately adjusted in accordance with the terms of those securities and the Company’s equity incentive plans. The reverse stock split did not affect the number of authorized shares of the Company's common stock or the par value of the common stock. All issued and outstanding common stock, options to purchase common stock, warrants to purchase common stock and per share amounts contained in the condensed consolidated financial statement have been retroactively adjusted to reflect the reverse stock split for all periods presented.

Structure of the Company

Nuvve has two wholly owned subsidiaries, Nuvve Corp. and Nuvve Pennsylvania LLC. Nuvve Corp. has four wholly owned subsidiaries: (1) Nuvve Denmark ApS, (“Nuvve Denmark”), a company registered in Denmark, (2) Nuvve SaS, a company registered in France, (3) Nuvve KK (Nuvve Japan), a company registered in Japan, and (4) Nuvve LTD, a company registered in United Kingdom. Nuvve Norway, a company registered in Norway is a branch of Nuvve Denmark.

On August 4, 2021, the Company formed Levo Mobility LLC, a Delaware limited liability company ("Levo"), with Stonepeak Rocket Holdings LP, a Delaware limited partnership ("Stonepeak"), and Evolve Transition Infrastructure LP, a Delaware limited partnership ("Evolve"). Levo is a consolidated entity of the Company. Please see Note 2 for the principles of consolidation.

Levo is a sustainable infrastructure company focused on rapidly advancing the electrification of transportation by funding vehicle-to-grid ("V2G") enabled Electric Vehicle ("EV") fleet deployments. Levo utilizes Nuvve’s V2G technology and conditional capital contribution commitments from Stonepeak and Evolve to offer Fleet-as-a-Service ("FaaS") for school buses, last-mile delivery, ride hailing and ride sharing, municipal services, and more to eliminate the primary barriers to EV fleet adoption including large upfront capital investments and lack of expertise in securing and managing EVs and associated charging infrastructure.

Levo's turnkey solution simplifies and streamlines electrification, can lower the total cost of EV operation for fleet owners, and supports the grid when the EVs are not in use. For a fixed monthly payment with no upfront cost, Levo will provide the EVs, such as electric school buses, charging infrastructure powered by Nuvve’s V2G platform, EV and charging station maintenance, energy management, and technical advice.

Levo focuses on electrifying school buses, providing associated charging infrastructure, and delivering V2G services to enable safer and healthier transportation for children while supporting carbon dioxide emission reduction, renewable energy integration, and improved grid resiliency.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Summary of Significant Accounting Policies

For a detailed discussion about the Company’s significant accounting policies, see Note 2, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”).

During the six months ended June 30, 2024, there were no significant updates made to the Company’s significant accounting policies.

Basis of Presentation

The accompanying (i) unaudited condensed consolidated balance sheet as of December 31, 2023, which has been derived from audited financial statements, and (ii) unaudited interim condensed consolidated financial statements have been prepared in accordance pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Therefore, it is recommended that these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes in the 2023 Form 10-K, filed with the SEC on March 28, 2024.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, cash flows, and total equity for the interim periods, but are not necessarily indicative of the results to be anticipated for the full year 2024 or any future period.

In accordance with the related Going Concern accounting standards, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the consolidated financial statements are issued. Since inception, the Company has incurred recurring losses and negative cash flows from operations and has an accumulated deficit of $158.9 million and $148.2 million as of June 30, 2024 and December 31, 2023, respectively. The Company incurred operating losses of approximately $13.0 million as of the six months ended June 30, 2024, and $32.1 million and $36.9 million for the years ended December 31, 2023, and 2022, respectively. The Company's cash used in operations were $8.7 million for the six months ended June 30, 2024, and $21.3 million and $34.1 million for the years ended December 31, 2023, and 2022, respectively. As of June 30, 2024, the Company had a cash balance, working capital, and total equity of $1.4 million, $2.6 million and $2.7 million, respectively. The Company continues to expect to generate operating losses and negative cash flows and will need additional funding to support its planned operating activities through profitability. The transition to profitability is dependent upon the successful expanded commercialization of the Company's GIVe platform and the achievement of a level of revenues adequate to support its cost structure.

Management plans to fund current operations through increased revenues and raising additional capital. Management's expectations with respect to the Company’s ability to fund current planned operations is based on estimates that are subject to risks and uncertainties. There is an inherent risk that the Company may not achieve such financial projections and if so, cash outflows could be higher than currently anticipated. However, as such, plans are not solely within management’s control, management cannot conclude as of the date of this filing that the plans are probable of being successfully implemented and as such has concluded that substantial doubt exists about the Company’s ability to continue as a going concern for twelve months from the date of issuance of our financial statements.

The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Principles of Consolidation

The condensed consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries and its consolidated variable interest entity. All intercompany accounts and transactions have been eliminated upon consolidation.

Variable Interest Entities

Pursuant to the consolidation guidance, the Company first evaluates whether it holds a variable interest in an entity in which it has a financial relationship and, if so, whether or not that entity is a variable interest entity ("VIE"). A VIE is an entity with insufficient equity at risk for the entity to finance its activities without additional subordinated financial support or in which equity investors lack the characteristics of a controlling financial interest. If an entity is determined to be a VIE, the Company evaluates whether the Company is the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. The Company concludes that it is the primary beneficiary and consolidates the VIE if the Company has both (i) the power to direct the activities of the VIE that most significantly influence the VIE's economic performance, and (ii) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

The Company formed Levo with Stonepeak and Evolve, in which the Company owns 51% of Levo's common units. The Company has determined that Levo is a VIE in which the Company is the primary beneficiary. Accordingly, the Company consolidates Levo and records a non-controlling interest for the share of the entity owned by Stonepeak and Evolve.

Assets and Liabilities of Consolidated VIEs

The Company's condensed consolidated financial statements include the assets, liabilities and results of operations of VIEs for which the Company is the primary beneficiary. The other equity holders’ interests are reflected in "Net income (loss) attributable to non-controlling interests" in the condensed consolidated statements of operations and "Non-controlling interests" in the condensed consolidated balance sheets. See Note 18 for details of non-controlling interests. The Company began consolidating the assets, liabilities and results of operations of Levo during the quarter ended September 30, 2021.

The creditors of the consolidated VIE do not have recourse to the Company other than to the assets of the consolidated VIE. The following table summarizes the carrying amounts of Levo assets and liabilities included in the Company’s condensed consolidated balance sheets at June 30, 2024 and December 31, 2023:


	June 30, 2024		December 31, 2023
Assets

Cash	$	4,953	$	27,337




Prepaid expenses and other current assets	341		1,363







Total Assets	$	5,294	$	28,700

Liabilities

Accounts payable	$	24,280	$	8,380
Accrued expenses and dividend payable	761,329		620,421






Derivative liability - non-controlling redeemable preferred shares	313,354		309,728

Total Liabilities	$	1,098,963	$	938,529

Redeemable Non-Controlling Interest - Mezzanine Equity

Redeemable non-controlling interest represents the shares of the preferred stock issued by Levo to Stonepeak and Evolve (the "preferred shareholders"), who own 49% of Levo common units. The preferred stock is not mandatorily redeemable or currently redeemable, but it could be redeemable with the passage of time at the election of Levo, the preferred shareholders or a triggering event as defined in the preferred stock agreement. As a result of the contingent put right available to the preferred shareholders, the redeemable non-controlling interests in Levo are classified as mezzanine equity in the Company’s unaudited condensed consolidated balance sheets. The initial carrying value of the redeemable non-controlling interest is reported at the initial proceeds received on issuance date, reduced by the fair value of embedded derivatives resulting in an adjusted initial carrying value. The adjusted initial carrying value is further adjusted for the accretion of the difference with the redemption price value using the effective interest method. The accretion amount is a deemed dividend recorded against retained earnings or, in its absence, to additional paid-in-capital. The carrying amount of the redeemable non-controlling interest is measured at the higher of the carrying amount adjusted each reporting period for income (or loss) attributable to the non-controlling interest, or the carrying amount adjusted each reporting period by the accretion amount. See Note 18 for details.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Non-controlling interests

The Company presents non-controlling interests as a component of equity on its condensed consolidated balance sheets and reports the portion of its earnings or loss for non-controlling interest as net earnings or loss attributable to non-controlling interests in the condensed consolidated statements of operations.

Emerging Growth Company

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits emerging growth companies (“EGC”) to delay complying with new or revised financial accounting standards that do not yet apply to private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act). The Company qualifies as an EGC. The JOBS Act provides that an EGC can elect to opt-out of the extended transition period and comply with the requirements that apply to non-EGCs, but any such election to opt-out is irrevocable. The Company has elected not to opt-out of such an extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an EGC, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This different adoption timing may make a comparison of the Company’s financial statements with another public company, which is neither an EGC nor an EGC that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include the impairment of intangible assets, the net realizable value of inventory, the fair value of share-based payments, lease incremental borrowing rate, derivative liability associated with redeemable preferred shares, revenue recognition, the fair value of warrants, annual bonus accrual, and the recognition and disclosure of contingent liabilities.

Management evaluates its estimates on an ongoing basis. Actual results could materially vary from those estimates.

Cash and Restricted Cash

The Company maintains cash balances that can, at times, exceed amounts insured by the Federal Deposit Insurance Corporation, which is up to $250,000. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk in this area. In connection with a new office lease agreement, the Company was required to provide an irrevocable, unconditional letter of credit to the landlord upon execution of the lease. The amount securing the letter of credit was recorded as restricted cash as of June 30, 2024 and December 31, 2023 was $480,000.

Concentrations of Credit Risk

At June 30, 2024 and December 31, 2023, the financial instruments which potentially expose the Company to concentration of credit risk consist of cash in financial institutions (in excess of federally insured limits) and trade receivables.

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows:

For the three and six months ended June 30, 2024 three customers accounted for 57.1% and 44.7% of revenue, respectively. For the three and six months ended June 30, 2023 two and one customer accounted for 28.4% and 27.5% of revenue, respectively.

During the three and six months ended June 30, 2024, the Company's top five customers accounted for approximately 75.4% and 62.4% of the Company’s total revenue, respectively. During the three and six months ended June 30, 2023, the Company's top five customers accounted for approximately 53.5% and 52.1% of the Company’s total revenue, respectively.

At June 30, 2024, three customers accounted for 68.9% of accounts receivable. At December 31, 2023, three customers accounted for 60.9% of accounts receivable.

Approximately 95.0% and 74.0% of the Company’s trade accounts receivable balance was with five customers at June 30, 2024 and December 31, 2023, respectively. The Company estimates its maximum credit risk for accounts receivable at the amount

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

recorded on the balance sheet. The trade accounts receivables are generally short-term and all probable bad debt losses have been appropriately considered in establishing the allowance for doubtful accounts.

Recently adopted accounting pronouncements

None Applicable

Recently issued accounting pronouncements not yet adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the Company’s CODM. The amendments in this update also provide new segment disclosure requirements for entities with a single reportable segment, and expand the interim segment disclosure requirements. ASU 2023-07 is effective for the fiscal year ending December 31, 2024 and for the Company’s interim periods beginning with the first quarter ended 2025. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. ASU 2023-09 requires disclosure of disaggregated income taxes paid in both U.S. and foreign jurisdictions, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s fiscal year ending December 31, 2025. Early adoption is permitted and the amendments in this update should be applied on a prospective basis, though retrospective adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 3 – Revenue Recognition

The disclosures below discuss the Company’s material revenue contracts.

The following table provides information regarding disaggregated revenue:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue recognized over time:
Services - engineering and others	$	186,269	$	409,895	$	366,500	$	631,731
Grid services	115,298		92,391		154,938		222,054
Grants	131,421		71,118		214,837		145,519
Revenue recognized at point in time:
Products	369,192		1,546,723		845,661		2,975,609
Total revenue	$	802,180	$	2,120,127	$	1,581,936	$	3,974,913

The aggregate amount of revenue for the Company’s existing contracts and grants with customers as of June 30, 2024 expected to be recognized in the future, and classified as deferred revenue on the condensed consolidated balance sheet, for year ended December 31, is as follows (this disclosure does not include revenue related to contracts whose original expected duration is one year or less):


2024 (remaining six months)	386,817
2025	286,168
2026	148,109
2027	113,197
Thereafter	135,687
Total (1)	$	1,069,978

__________________

(1) The revenue recognition is subject to the completion of construction and commissioning of the EV infrastructure.

The Company operates in a single business segment, which is the EV V2G Charging segment. The following table summarizes the Company’s revenues by geography:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues:
United States	$	746,454	$	1,979,610	$	1,502,064	$	3,738,063
United Kingdom	—		—		—		33,483
Denmark	55,726		140,517		79,872		203,367
	$	802,180	$	2,120,127	$	1,581,936	$	3,974,913

The following table summarizes the Company’s intangible assets and property, plant and equipment in different geographic locations:


	June 30, 2024		December 31, 2023
Long-lived assets:
United States	$	1,649,866	$	1,741,009
United Kingdom	2,154		2,894
Denmark	190,380		224,564
	$	1,842,400	$	1,968,467

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 4 – Fair Value Measurements

The following are the liabilities measured at fair value on the condensed consolidated balance sheet at June 30, 2024 and December 31, 2023 using quoted price in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):


	Level 1: Quoted Prices in Active Markets for Identical Assets		Level 2: Significant Other Observable Inputs		Level 3: Significant Unobservable Inputs		Total at June 30, 2024		Total Gains (Losses) For The Three Months Ended June 30, 2024		Total Gains (Losses) For The Six Months Ended June 30, 2024
Recurring fair value measurements
Private warrants	$	—	$	—	$	—	$	—	$	—	$	—
Stonepeak and Evolve unvested warrants	$	—	$	—	$	—	$	—	$	—	$	—
2022 July Institutional/Accredited Investor warrants	$	—	$	—	$	3	$	3	$	3	$	4,621
2024 February Institutional/Accredited Investor warrants	$	—	$	—	$	1,484,504	$	1,484,504	$	1,584,770	$	2,307,813
Derivative liability - non-controlling redeemable preferred shares	$	—	$	—	$	313,354	$	313,354	$	7,907	$	(3,626)
Total recurring fair value measurements	$	—	$	—	$	1,797,861	$	1,797,861	$	1,592,680	$	2,308,808


	Level 1: Quoted Prices in Active Markets for Identical Assets		Level 2: Significant Other Observable Inputs		Level 3: Significant Unobservable Inputs		Total at December 31, 2023		Total Gains (Losses) For The Three Months Ended June 30, 2023		Total Gains (Losses) For The Six Months Ended June 30, 2023
Recurring fair value measurements
Private warrants	$	—	$	—	$	—	$	—	$	784	$	1,784
Stonepeak and Evolve unvested warrants	$	—	$	—	$	—	$	—	—		—
2022 July Institutional/Accredited Investor warrants	$	—	$	—	$	4,621	$	4,621	$	143,010	$	(71,748)
Derivative liability - non-controlling redeemable preferred shares	$	—	$	—	$	309,728	$	309,728	$	83,059	$	6,219
Total recurring fair value measurements	$	—	$	—	$	314,349	$	314,349	$	226,853	$	(63,745)

The following is a reconciliation of the opening and closing balances for the liabilities related to the warrants (Note 11) and derivative liability - non-controlling redeemable preferred shares measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2024:


	Private warrants		Stonepeak and Evolve unvested warrants		2022 July Institutional/Accredited Investor warrants		2024 February Institutional/Accredited Investor warrants		Non-controlling redeemable preferred shares - derivative liability

Balance at December 31, 2023	$	—	$	—	$	4,621	$	—	$	309,728
Initial fair value	—		—		—		3,792,317		—
Total (gains) losses for period included in earnings	—		—		(4,619)		(723,043)		11,533
Balance at March 31, 2024	—		—		3		3,069,274		321,261
Total (gains) losses for period included in earnings	—		—		(3)		(1,584,770)		(7,907)
Balance at June 30, 2024	$	—	$	—	$	—	$	1,484,504	$	313,354

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The fair value of the level 3 Private Warrants was estimated at June 30, 2024 using the Black-Scholes model which used the following inputs: term of 1.72 years, risk free rate of 4.82%, no dividends, volatility of 46.0%, and strike price of $460.00.

The fair value of the level 3 Private Warrants was estimated at December 31, 2023 using the Black-Scholes model which used the following inputs: term of 2.22 years, risk free rate of 4.20%, no dividends, volatility of 60.0%, and strike price of $460.00.

The fair value of the level 3 2022 July Institutional/Accredited Investor warrants was estimated at June 30, 2024 using the Black-Scholes model which used the following inputs: term of 3.60 years, risk free rate of 4.47%, no dividends, volatility of 57.0%, common stock price of $0.80, and strike price of $150.00.

The fair value of the level 3 2022 July Institutional/Accredited Investor warrants was estimated at December 31, 2023 using the Black-Scholes model which used the following inputs: term of 4.10 years, risk free rate of 3.92%, no dividends, volatility of 63.0%, common stock price of $0.12, and strike price of $150.00.

The fair value of the level 3 2024 February Institutional/Accredited Investor warrants was estimated at June 30, 2024 using the Black-Scholes model which used the following inputs: term of 4.60 years, risk free rate of 4.37%, no dividends, volatility of 99.0%, common stock price of $0.80, and strike price of $2.00.

The following table presents the significant unobservable inputs and valuation methodologies used for the Company’s fair value measurements of non-recurring (level 3) Stonepeak and Evolve unvested warrants at June 30, 2024:

Series C Unvested Warrants

Series D Unvested Warrants

Series E Unvested Warrants

Series F Unvested Warrants

Fair value (in millions)

$—

Valuation methodology

Monte Carlo Simulation & Black Scholes

Capital expenditure forecast (in millions)

$—

Probability of warrants vesting (a)

—%

__________________

(a) During the second quarter ended June 30, 2022, the Company significantly lowered its forecast of Levo's capital deployments due to the passage by the United States Congress of the Infrastructure Investment and Jobs Act bill, and the related unveiling of the Environmental Protection Agency’s 2022 Clean School Bus rebates. The resulting lower forecast of capital deployments reduced the probabilities of the future vesting of the unvested warrants. Therefore, at June 30, 2024, the Company has determined that it is unlikely that the unvested warrants will vest.

Series C Unvested Warrants

Series D Unvested Warrants

Series E Unvested Warrants

Series F Unvested Warrants

Fair value (in millions)

$—

Valuation methodology

Monte Carlo Simulation & Black Scholes

Capital expenditure forecast (in millions)

$—

Probability of warrants vesting (a)

—%

__________________

(a) During the second quarter ended June 30, 2022, the Company significantly lowered its forecast of Levo's capital deployments due to the passage by the United States Congress of the Infrastructure Investment and Jobs Act bill, and the related unveiling of the Environmental Protection Agency’s 2022 Clean School Bus rebates. The resulting lower forecast of capital deployments reduced the probabilities of the future vesting of the unvested warrants. Therefore, at December 31, 2023, the Company has determined that it is unlikely that the unvested warrants will vest.

The fair value of the level 3 derivative liability - non-controlling redeemable preferred shares are estimated at June 30, 2024 using the Monte Carlo Simulation model which used the following inputs: terms range from 0.09 years to 7.0 years, risk free rate of 4.4%, no dividends, volatility of 101.0% and probability of redemptions triggered of 75.0%.

The fair value of the level 3 derivative liability - non-controlling redeemable preferred shares are estimated at December 31, 2023 using the Monte Carlo Simulation model which used the following inputs: terms range from 0.60 years to 7.0 years, risk free rate of 3.9%, no dividends, volatility of 79.0% and probability of redemptions triggered of 75.0%.

There were no transfers between Level 1 and Level 2 of the fair value hierarchy in 2024 and 2023.

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Cash, accounts receivable, accounts payable, and accrued expenses are generally carried on the cost basis, which management believes approximates fair value due to the short-term maturity of these instruments.

Note 5 - Derivative Liability - Non-Controlling Redeemable Preferred Stock

The Company has determined that the redemption features embedded in the non-controlling redeemable preferred stock is required to be accounted for separately from the redeemable preferred stock as a derivative liability. Separation of the redemption features as a derivative liability is required because its economic characteristics and risks are considered more akin to a debt instrument, and therefore, not considered to be clearly and closely related to the economic characteristics of the redeemable preferred stock. The economic characteristics of the redemption features are considered more akin to a debt instrument because the minimum redemption value could be greater than the face amount, the redemption features are contingently exercisable, and the shares carry a fixed mandatory dividend.

Accordingly, the Company has recorded an embedded derivative liability representing the estimated fair value of the right of the holders to exercise their redemption option upon the occurrence of a redemption event. The embedded derivative liability is adjusted to reflect fair value at each period end with changes in fair value recorded in the “Change in fair value of derivative

liability” financial statement line item of the Company’s condensed consolidated statements of operations. For additional information on the non-controlling redeemable preferred stock, see Note 18.

The following table displays the fair value of derivatives by balance sheet line item:


	June 30, 2024		December 31, 2023

Derivative liability - non-controlling redeemable preferred shares	$	313,354	$	309,728

Note 6 – Investments

The Company accounts for its 13% equity ownership in Dreev as an investment in equity securities without a readily determinable fair value subject to impairment. The Company has a consulting services agreement with Dreev related to software development and operations. The consulting services were zero for the three and six months ended June 30, 2024. The consulting services were zero for the three and six months ended June 30, 2023. The consulting services are being provided to Dreev at the Company’s cost and is recognized as other income, net in the condensed consolidated statements of operations.

Note 7 – Account Receivables, Net

The following tables summarizes the Company's accounts receivable:


		June 30, 2024		December 31, 2023

Trade receivables		$	831,909	$	2,107,497

Less: allowance for credit losses		(315,716)		(382,598)

	Accounts receivable, net	$	516,193	$	1,724,899

Allowance for credit losses:

	Balance December 31, 2023	$	(382,598)
	Provision	(41,175)
	Write-off	—
	Recoveries	108,057
	Balance at June 30, 2024	$	(315,716)

NUVVE HOLDING CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 8 – Inventories

The following table summarizes the Company’s inventories balance by category:


	June 30, 2024		December 31, 2023
DC Chargers	$	5,357,368	$	5,275,934
AC Chargers	446,357		236,316

Component parts and Carbon Credit	240,411		377,203
Total	$	6,044,136	$	5,889,453

Note 9 – Property, Plant and Equipment

The following table summarizes the Company’s property, plant and equipment balance:

Useful Lives

June 30, 2024

December 31, 2023

Computers & Servers

1 year

3 years

169,528

154,337

Vehicles

5 years

7 years

65,492

65,577

Office furniture and equipment

3 years

5 years

366,323

Test units and loaned chargers (1)

5 years

7 years