Group N.V., it trades on the OTCQB under the symbol SEVCF, and with its wholly-owned subsidiary, Sono Motors GmbH, they're on a pioneering mission to accelerate the revolution of mobility by making every commercial vehicle solar. So happy to welcome Managing Director, CEO, and CFO, George O'Leary. Happy to have you back on the conference and excited to hear this update, George.
Thanks, Ana. Thanks for having me back. It's great to be able to give the shareholders and interested parties an update on where we are. Very exciting things going on, so let me jump right into it. Obviously, our forward-looking statements as a public company. Just to give anyone who's listening for the first time a quick update about the company. We're headquartered in Munich, Germany. We were incorporated in 2016. Our management board and supervisory board are based in the U.S. We're quoted on the OTCQB under the symbol SEVCF, as Ana mentioned, since July of 2024. We have approximately 45 employees. We're focused on integrating proprietary solar technology onto all commercial vehicles. One of our competitive advantages, for sure, is our patent portfolio of nine granted patents and over 30 pending patent applications. We've just filed our audited financial statements for 2024.
A quick update on that: profit of EUR 65 million, and we strengthened our balance sheet. Our net equity improved from EUR 88 million - to EUR 23 million -. We also filed a Form 8-K for the purpose of uplisting to Nasdaq. We're based on an exchange agreement. We have to convert our debt to equity and then additional funding. It'll increase our net equity to EUR 6 million. The requirement for the uplisting to Nasdaq is between EUR 4 million if you're a net income standard filer or EUR 5 million if you're an equity standard filer. So between EUR 4 million-EUR 5 million. We certainly check that box and meet that criteria. As I mentioned, we entered into an exchange agreement to convert all of our debt to equity, reducing the liability, certainly improving our financial stability once we get the notice from Nasdaq that we're able to uplift.
The income statement, we reported EUR 65 million of profit, primarily driven by a gain from the reconsolidation of our GmbH and lean operations. Our G&A expenses were cut by 65%. Our development expenses were reduced by 93%. From a cash flow perspective, we had EUR 1.4 million cash on the balance sheet as of December 31st. We have also added an additional EUR 2 million in subsequent funding, and we have an additional EUR 3 million coming in for our uplisting. That should get us through the first quarter of 2026, which obviously investors always worry about or care about anyways. Our net cash outflows decreased by 71%. A few things from Sono Group. We transitioned from a foreign private issuer to a domestic filer, and we also converted from IFRS to U.S. GAAP filing in 2025.
First, the IFRS to U.S. GAAP reporting differences on our audited financials, accounting for debentures, derivative accounting, and also leases. As I mentioned, the debentures will go away once we uplist to Nasdaq. It converts all of our debt to preferred equity. Foreign filer to U.S. filer. Key differences. In 2023, we filed our annual report on Form 20-F at the end of June 2024. For 2024 annual report on the Form 10-K, we filed it two and a half months earlier in mid-April. We just filed it. For six-month report, we filed on Form 6-K in December of 2024. Going forward in 2025, we're now going to be reporting quarterly on our Form 10-Qs going forward. From a transparency perspective for all of our shareholders and interested parties, they'll have a lot more information, much more time going forward. Key differences on the reconsolidation in 2024.
We went from 450 employees down to 40 employees in 2023. Substantial challenges for reporting for the reconsolidation, which was pretty complicated and more frequent reporting and earlier timeframes for reporting. Obviously, we've done pretty well with all that, but it's definitely a transition getting used to from our German colleagues. Let me tell you a little bit about our business, just as a reminder. End-to-end mobility solution for commercial vehicles. We have solar modules. I'll talk about a partnership we signed in January of this year. It's very exciting. That relates to that. Our solar charge controller, which we call our MCU, our vehicle integration wiring system, and our data and software. Our initial focus was on buses. In our last update, we actually gave information about that we expanded our product offering to include now trucks and vans, recreational vehicles, and refrigeration trailers.
In November of this year, at an Italy trade show, we won an innovation award for greener innovation. In January this year, we reported that we are the first German national certification for our Solar Bus Kit in Germany. Instead of having to get approval for every single bus kit we integrate, we actually can do an entire fleet without having to get every single vehicle accepted. That really helps our OEMs and their fleet operators' client base that we could integrate an entire fleet without having to get approvals on every vehicle. In January 2025, we announced our partnership with Merlin Solar Technologies out of the U.S. to expand our global solar solutions. We signed a mutual distribution agreement, co-marketing agreement. We are now focused on global expansion without additional cost to our company.
Now we're going to be focusing working together with Merlin Solar, what I call best of class. We're offering our best of class with our MCU and our data technology, along with their best of class on their solar panels, to offer it globally to all of our large OEMs and also new OEMs. The partnership's going great. A lot of opportunity, both with existing, but mostly with brand new customers coming in. What's nice is that's not part of our budget. This will be all incremental revenue for us in 2025 and beyond. We're very excited about the partnership with Merlin Solar. Our focus for our sales effort and our pillars for driving market growth is OEM operation and their fleet operators.
We're focusing on really getting on the production line for our OEMs so that we're right at a gate offering our solar solutions for their product offering. We're working with five large OEMs that we have a great opportunity. One of the OEMs, not only are we in their product pipeline for 2025 and beyond, they're big clients where they're utilizing their products. They're introducing us to offer fleet operators, providing our products directly to the fleet operators, which is very exciting and going to really help drive our growth for our business, especially with our certification we got in Germany, where we could do a whole fleet without having to take additional time to do that. Again, strategic partnerships for 2025, our partnership with Merlin Solar Technologies, we're very excited about that.
That now expands our reach from Europe to now North and South America without having to add additional costs for operations, sales, and all of that. We're really working together, which is actually going to not only not increase our costs, but actually decrease our costs as we go forward. Also focused for this year on other geographic opportunities with global joint ventures and other geographic partnerships. Our management board and supervisory board are based in the U.S., and our managing directors are based in Germany. One of the things I want to mention is I was CFO, CEO, and CFO until the end of December, but for our planned uplisting to Nasdaq, we promoted our controller to our CFO. Now I'm Managing Director and CEO, and Scott Calhoun is now our CFO of the company.
I've worked with him for over 25 years, so I know him extremely well. Phenomenal guy, has great experience, especially in technology and derivative accounting and those kinds of opportunities for us. I'd be remiss not to mention always our most valuable resource, which is our dedicated team in Germany. One of the things I like to mention is they are so committed to creating a greener world. They're all vegans, and they drive their bicycles to work. When I show up to their operation, they have bicycles lined up because, again, they're committed to reducing the carbon footprint and creating a greener world. It's pretty awesome how much they care about that. Our focus for 2025, 2026 outlook, we're building on our 2024 momentum, and we're focused on advancing our OEM integration strategy, as I mentioned, right?
Looking to get on the production line with our OEMs, and we're seeing a lot of interest and progress in that area for growth for this year and going forward. Expanding our global partnerships like we did with Merlin Solar and continuing to innovate solar mobility solutions for commercial transport globally. We're pursuing an uplisting to the Nasdaq Capital Market, as I mentioned, to improve visibility, enhance our liquidity, and drive long-term value for our shareholders. One of the things I want to mention, I'll mention it here, is that we're currently at a $5 stock price. I personally believe when you look at our financials that we just reported, that I believe we're truly undervalued.
One of the things, if you look back for the last three months, we were priced as high as $15, at least twice for a week or two each month over the last three months. In my mind, that's a much more realistic valuation for market valuation for our company than where we are today. I'm hoping that with this filing and our continued focus on what our growth is and our opportunities, and also looking to get to the Nasdaq capital markets, our share price will more reflect what I believe our market value really is. Key takeaways in closing is solar is the largest and most affordable renewable energy source. I like to say solar bridges the gap between the conventional vehicles of today and the electric vehicles of tomorrow as the charging stations catch up to the demand for electric vehicles.
The awareness of solar benefits is growing, increasing customer demand across commercial vehicle applications. We are definitely seeing that with our top five large OEMs that we are working directly with. They are also introducing us to their fleet operator customer base to do fleet integration. We are very excited about the growth opportunity there. Our patent portfolio, as I mentioned, is a key competitive advantage along with our data-driven dashboard and our solar mobility know-how. Germany sets us apart from our competition. Sono Group N.V. is on track for our planned Nasdaq uplisting. We have been focused on it for quite some time. Getting the Form 10-K filed was an important component of that. Lastly, no matter what your politics are globally, everyone loves solar. With that, I will turn it over to you. If there are any questions, if we have any time, I will answer a question or two.
Great job, George. Yes, let's see. I guess we can have one question on tariffs. How will you be affected going forward with these tariffs, if any?
Great. Sure. I think with our partnership with Merlin, certainly helps with that because they're a U.S.-based company, right? The way they're going to work is they're using their name and their product offering in the U.S. while we're using our name and their product offering in Europe. I do think that helps with that, with the tariffs. Number two, as you know, Trump went and integrated the tariffs, and then he stalled them. I do believe there's going to be a clear coming to minds with Europe, the European nations, as well as with the United States. I think it'll benefit everybody.
I don't see this as going to slow us down, certainly not from our OEMs and their focus on our integration products that we're offering. I haven't seen any slowdown at all from what they're looking for us in their product pipelines.
Okay, perfect. Thank you so much. We are out of time. We'll send the rest of these questions to you so you can answer on your own. We appreciate this update, and we'd love to hear more from you in the future.
Yeah, thanks for having me, Ana, and thanks for everyone listening in. Look forward to being back on for another update in the month to come.
Perfect. Thank you, George. All right, everyone. 22nd Century Group had to postpone, but we will be back very shortly.