A.L.I. Technologies, the Japanese startup that unveiled a futuristic hoverbike concept, has officially filed for bankruptcy. The company cited its inability to sustain operations amid escalating research and development costs as the primary reason for its financial downfall.
The filing comes barely a year after its parent company, Aerwins Technology Inc., debuted on the Nasdaq, which needed to generate more interest. The firm started pre-sales for its first hoverbike, Xturismo Limited Edition hoverbike, in 2021 for $684,000 (77.7 million yen). The firm's website has been taken down following the bankruptcy filing.
The Japanese firm has become the latest example of a startup featuring ideas ahead of time, needing more recognition. In April 2023, Virgin Orbit filed for Chapter 11 bankruptcy in the U.S. to finalize a value-maximizing sale. In an era where private entities spearhead satellite launches, Virgin Orbit aimed to distinguish itself by deploying a modified Boeing 747 aircraft.
Growing problems
As of the conclusion of December 2022, the startup's liabilities stood at approximately $8.3 million (¥1.2 billion), according to corporate data provider Teikoku Databank. During the same period, the annual net loss amounted to about 13 million (¥2 billion), nearly three times the revenue, reported BNN Bloomberg.
After its disappointing Nasdaq debut and dwindling cash flows, it was reported that the company shifted its primary focus towards stimulating demand in the Middle East while concurrently implementing cost-cutting measures. The company's share is now valued at $0.12 in New York.
The company's merger with a special purpose acquisition company (SPAC) marked a rare move for a Japanese startup to raise funds in the U.S. market. However, following the initial public offering, almost 99 percent of Aerwins's SPAC investors opted to redeem their shares, resulting in a nearly 90 percent decline in its stock value within a month, according to BNN Bloomberg.
Promising product
Despite the company's failure to materialize its goals, its first hoverbike remains an interesting proposition. The Xtourismo Limited Edition features a design with a motorcycle-style body mounted on propellers, which rest on landing skids when stationary.
The hoverbike relies on the thrust generated by two prominent central rotors driven by a 228-hp gas-powered Kawasaki motorcycle performance engine. Additionally, stability is provided by four smaller electric support rotors strategically positioned on the outer edges of the vehicle.
This innovative vehicle can achieve up to 62 miles per hour (100 kilometers per hour) during its 40-minute flight capability. Weighing just 660 pounds (299 kilograms) with a sleek carbon fiber body, the hoverbike measures approximately 12 feet long (3.65 meters). The drive system is the result of a collaborative effort between A.L.I. Technologies and Toda Racing. Enhanced safety features are integrated into the vehicle's automatic control unit.
Owing to stringent regulations in Japan, the utilization of these applications is confined to specific locations like race tracks in the near term. Flying over Japan's highways is not currently permitted. The firm only planned to produce 200 units, making it a niche luxury product, at least in the initial stages.
A.L.I. Technologies expressed its long-term goal of mass-producing electric hoverbikes suitable for urban transportation and applications in disaster response and search and rescue operations. It's a goal that seems implausible now.
Originally published on Interesting Engineering : Original article