Empery Digital Receives Termination Notice from Super Sonic: Volcon Inc. Overview

Empery Digital receives termination notice from Super Sonic, a company that produces electric vehicles for the outdoor community. Volcon Inc. develops electric motorcycles, UTVs, and eBikes, including the Grunt EVO and Runt LT models, designed for off-road use. The Grunt EVO has a range of up to 35 miles and can be charged in under three hours from a standard outlet.

Empery Digital Inc. (NASDAQ: EMPD), a motor vehicles manufacturer with a market capitalization of $360 million, announced Thursday that its distribution agreement with Super Sonic Company Limited was terminated. The termination, effective immediately, was reported in a statement filed with the Securities and Exchange Commission (SEC) Empery Digital ends Super Sonic golf cart distribution agreement^[1]. The agreement, originally signed on January 31, 2025, had made Empery Digital the exclusive distributor of certain Super Sonic golf cart products in the United States.

The termination was carried out under Section 2.01 of the agreement, which allowed Super Sonic to end the contract if Empery Digital failed to meet minimum purchase requirements for two consecutive months. Empery Digital stated that it is not subject to any early termination penalties as a result of this action Empery Digital ends Super Sonic golf cart distribution agreement^[1]. Prior to the termination, the agreement would have required Empery Digital to issue 1% of its outstanding common stock for each 1,000 units ordered in 2025, up to a maximum of 7,000 units. Additionally, the agreement included a provision that would have granted Super Sonic a seat on Empery Digital’s board of directors if orders reached 10,000 units before February 1, 2026. With the termination, Empery Digital is no longer obligated to issue equity to Super Sonic under these terms Empery Digital ends Super Sonic golf cart distribution agreement^[1].

This development adds to the company’s challenges, as InvestingPro analysis indicates the company is currently operating with negative EBITDA of $23.29 million Empery Digital ends Super Sonic golf cart distribution agreement^[1]. The termination comes amidst significant volatility in Empery Digital’s stock, with shares down over 78% year-to-date according to InvestingPro data Empery Digital ends Super Sonic golf cart distribution agreement^[1].

In other recent news, Empery Digital has been actively involved in its share repurchase program, buying back over 2.5 million shares at an average price of $7.26 per share and an additional 1.6 million shares at $7.23 per share. These repurchases are part of a $100 million share buyback initiative, with approximately $88 million still available for future transactions Empery Digital ends Super Sonic golf cart distribution agreement^[1]. Additionally, Empery Digital has secured a $25 million borrowing facility to support these repurchases and anticipates adding another $75 million through an uncommitted facility Empery Digital ends Super Sonic golf cart distribution agreement^[1]. On the cryptocurrency front, Empery Digital has expanded its bitcoin holdings by acquiring 13 bitcoin for $1.5 million and an additional 17.51 bitcoin for $2 million, bringing its total holdings to approximately 4,065 BTC Empery Digital ends Super Sonic golf cart distribution agreement^[1].

Meanwhile, in the electric vehicle sector, Panasonic, a major supplier to Tesla, has revealed it might be close to a breakthrough that could extend the driving range by 25 percent. The battery giant is developing a battery system with higher energy storage capacity by eliminating the anode during the manufacturing stage Tesla supplier Panasonic targets 25% EV driving range boost with breakthrough battery tech by 2027^[2]. This technology, which is expected to be ready by the end of 2027, will enable Panasonic to pack in more active cathode materials, thereby increasing the energy capacity while maintaining the same volume. To put the gain in driving range in context, a 25 percent boost will add about 90 miles (145 km) to the Tesla Model 3, without any increase in weight or current battery pack size Tesla supplier Panasonic targets 25% EV driving range boost with breakthrough battery tech by 2027^[2].