Bolt Projects Holdings, Inc. SEC 10-K Report

Bolt Projects Holdings, Inc. has released its annual Form 10-K report, revealing a 60% drop in revenue to $1.373 million, alongside a net loss of $65.393 million. The company focuses on its Vegan Silk Technology Platform, discontinuing other product candidates to enhance commercialization. A merger with Golden Arrow Merger Corp. has been completed, and a three-year supply agreement has been established. Financial challenges persist, with doubts about the company's ability to continue as a going concern due to significant losses and reliance on a single manufacturing partner.

Bolt Projects Holdings, Inc., a company specializing in sustainable biomaterials, has released its annual Form 10-K report, detailing its financial performance, business operations, strategic initiatives, and the challenges it faces. The report provides a comprehensive overview of the company's focus on its Vegan Silk Technology Platform and its strategic moves to enhance market presence and operational capabilities.

Financial Highlights

Revenue: $1.373 million, decreased by 60% compared to the previous year primarily due to decreased sales of products from the Vegan Silk Technology Platform.
Gross Loss: $0.093 million, improved by 93% from the previous year, primarily due to decreased cost of revenue.
Loss from Operations: $41.608 million, increased by 20% from the previous year, driven by higher general and administrative expenses.
Net Loss: $65.393 million, increased by 13% from the previous year, reflecting higher operating expenses and losses on extinguishment of convertible notes.
Net Loss Per Share (Basic and Diluted): $(4.14), reflecting the increased net loss and changes in the number of shares outstanding.

Business Highlights

Vegan Silk Technology Platform: Bolt Threads focuses on its Vegan Silk Technology Platform, which includes b-silk and xl-silk, as a sustainable alternative to silicone elastomers in the beauty and personal care industry. This platform is backed by a robust patent portfolio and significant trade secrets developed over 13 years.
Product Focus Shift: In early 2023, Bolt Threads made a strategic decision to discontinue the development of other product candidates, such as Mylo, to concentrate exclusively on the Vegan Silk Technology Platform, aiming to accelerate commercialization and unlock new applications.
Sales Units: Since 2019, Bolt Threads has been selling b-silk, and in 2024, over 1,700 kilograms of products were produced by Laurus Bio, the company's manufacturing partner.
Manufacturing Strategy: The company relies on a network of third-party fermentation specialists for manufacturing, with Laurus Bio as the primary partner. Laurus Bio is expanding its capacity with a new facility expected to be operational by the second half of 2026.
Research and Development: Bolt Threads has invested over $300 million in research and product development, focusing on refining the manufacturing process and supporting production at additional facilities.
Intellectual Property: The company holds 68 granted patents and 166 pending patent applications, with b-silk protected by 40 granted patents. This intellectual property is crucial for maintaining a competitive edge in the biomaterials market.
Customer Landscape: Bolt Threads targets large beauty and cosmetic manufacturers, emphasizing the cost-efficiency of its products due to lower loading levels compared to silicone elastomers.
Future Outlook: The company plans to expand its Vegan Silk Technology Platform to include additional sustainable materials, aiming to transform the global consumer goods industry and support high-volume consumer goods brands.

Strategic Initiatives

Merger with Golden Arrow Merger Corp. (GAMC): The company completed a merger with GAMC, resulting in Bolt Threads becoming a wholly-owned subsidiary of GAMC, which was renamed Bolt Projects Holdings, Inc. This strategic move was aimed at enhancing the company's market presence and operational capabilities.
Supply Agreement: The company entered into a three-year supply agreement with a new customer, which includes annual minimum order quantities, to secure future revenue streams.
Capital Management: The company engaged in several capital management activities, including a private placement equity offering with Triton Funds LP, allowing the company to require Triton to purchase up to $1.5 million in shares of common stock. Additionally, the company issued a warrant to Triton to purchase up to 3,000,000 shares of common stock at an exercise price of $0.50 per share. The company also restructured its debt through the Ginkgo Note Purchase Agreement Amendment, which involved exchanging $10 million of outstanding principal for convertible notes and modifying the terms of the remaining debt to extend the maturity date and adjust the interest rate.
Future Outlook: The company anticipates needing substantial capital to support planned product development and operations. It plans to obtain necessary funds through equity offerings, debt financing, or restructuring current obligations. The company is also exploring opportunities to expand its manufacturing capacity and enhance its product offerings. However, there is substantial doubt about the company's ability to continue as a going concern due to uncertainties in achieving expected operating results and restructuring current debt.

Challenges and Risks

Financial Challenges: The company faces significant financial challenges, including a history of losses and negative cash flows, which raise substantial doubt about its ability to continue as a going concern. The need for additional capital to support operations and product development is critical, and failure to secure funding could lead to severe operational cutbacks or cessation.
Operational Risks: The company's reliance on a single manufacturing partner, Laurus Bio, for the production of its Vegan Silk Technology Platform products poses a significant operational risk. Any disruption at the Laurus Bio Facility, located in Bangalore, India, could severely impact production capabilities. Additionally, the company is subject to risks inherent in operating globally, such as changes in laws, tariffs, and geopolitical instability, which could increase costs and disrupt operations.
Market Acceptance: Market acceptance of the company's Vegan Silk Technology Platform products is uncertain, with limited customer commitments and the need for successful commercialization to generate significant revenues. The company also faces competition from established and new entrants in the cosmetic ingredients market, which could impact its market share and profitability.
Regulatory Risks: Regulatory risks include compliance with new FDA regulations under the Modernization of Cosmetics Regulation Act of 2022, which imposes new requirements on cosmetic manufacturing and safety. Failure to comply could result in enforcement actions and reputational harm.
Management Strategies: Management acknowledges the challenges of achieving profitability and maintaining financial stability. Strategies to address these challenges include seeking additional financing, optimizing production processes to reduce costs, and expanding market reach for the Vegan Silk Technology Platform products. However, there is no assurance that these strategies will be successful in mitigating the identified risks.
Market Risks: The company is exposed to market risks, including fluctuations in raw material prices and foreign currency exchange rates, which could adversely affect financial results. The volatility in pricing and availability of raw materials, particularly urea, could impact production costs and pricing strategies, potentially affecting customer acquisition and retention.

SEC Filing: Bolt Projects Holdings, Inc. [ BSLK ] - 10-K - Mar. 18, 2025