The Lion Electric pany(US:LEV)2024-07-31 11:08Financial Performance - For the three months ended June 30, 2024, the net loss was $19,265,435 compared to a net loss of $11,787,585 for the same period in 2023, representing a 63.5% increase in losses[1]. - Basic loss per share for the three months ended June 30, 2024 was $(0.09), compared to $(0.05) for the same period in 2023, indicating an 80% increase in loss per share[1]. - For the six months ended June 30, 2024, the net loss was $40,962,675, compared to $27,371,031 for the same period in 2023, reflecting a 49.8% increase in losses[1]. - The net loss for the three months ended June 30, 2024, was $19,265,435, compared to a net loss of $11,787,585 for the same period in 2023, representing a 63% increase in losses year-over-year[53]. - For the six months ended June 30, 2024, the net loss was $40,962,675, which is a 50% increase compared to the net loss of $27,371,031 for the same period in 2023[53]. Revenue and Sales - Revenue from external customers for the three months ended June 30, 2024 was $30,276,027, a decrease of 47.9% from $58,015,843 in the same period of 2023[28]. - The company’s revenue from the United States for the three months ended June 30, 2024 was $6,818,234, down from $12,046,778 in the same period of 2023, a decrease of 43.5%[28]. - Revenue for the three months ended June 30, 2024, was $30,276,027, a decrease of 48.0% compared to $58,015,843 for the same period in 2023[35]. Expenses and Losses - Operating loss for the three months ended June 30, 2024, was $(31,815,435), an increase of 81.5% from $(17,526,587) in the same period last year[35]. - Gross profit (loss) for the six months ended June 30, 2024, was $(26,357,277), compared to $(1,838,382) for the same period in 2023[35]. - Depreciation and amortization expenses for the three months ended June 30, 2024, were $9,108,162, up from $5,561,359 in the same period of 2023, indicating a 64% increase[53]. - Administrative expenses for Q2 2024 were $140,751, up 49% from $94,401 in Q2 2023[4]. - Selling expenses increased to $318,743 in Q2 2024, compared to $167,430 in Q2 2023, representing a 90% rise[4]. - Cost of sales for Q2 2024 was $2,068,008, a 40% increase from $1,472,189 in Q2 2023[4]. Assets and Liabilities - Total assets decreased to $771,914,900 as of June 30, 2024, from $841,121,318 as of December 31, 2023[48]. - Total liabilities decreased to $460,816,576 as of June 30, 2024, from $482,207,327 as of December 31, 2023[48]. - The current portion of long-term debt increased to $31,886,443 as of June 30, 2024, from $27,056,476 as of December 31, 2023[48]. - Cash as of June 30, 2024, was $2,002,741, a significant decrease from $29,892,966 as of December 31, 2023[41]. - Trade receivables were reported at $37,204,642, down from $40,621,997 as of December 31, 2023[5]. - Long-term debt increased to $279,574,884 from $224,942,365, indicating a rise of approximately 24.3%[5]. Financing and Capital Structure - The company announced a workforce reduction of 30%, impacting approximately 300 employees across Canada and the United States, aimed at improving profitability[9]. - The company received a non-repayable financial contribution of $4,041,619 (C$5,535,805) from Investissement Quebec for future vehicle development project costs[31]. - The company estimates a total borrowing base under the Revolving Credit Agreement of $134,896,502, with $112,200,000 drawn as of June 30, 2024[41]. - The Revolving Credit Agreement was amended to increase the maximum principal amount from $100 million to $200 million, with a maturity extension to August 11, 2025[4]. - The credit agreement with the banking syndicate increased to $112,200,000 from $70,000,000, marking a rise of approximately 60.3%[72]. Shareholder Equity and Stock Options - Total equity as of June 30, 2024, was $311,098,324, down from $433,405,653 as of June 30, 2023, reflecting a decrease of approximately 28%[51]. - The company issued 4,894,060 shares through an "at-the-market" equity program, raising $8,617,953 during the six months ended June 30, 2023[51]. - The total number of stock options outstanding increased to 13,740,922 as of June 30, 2024, with a weighted average exercise price of C$1.58[173]. - The company recognized a compensation expense related to share-based compensation, with an ending balance of $4,688,793 as of June 30, 2024[187]. Cash Flow and Investments - Cash flows used in investing activities for the six months ended June 30, 2024, were $23,424,912, compared to $59,594,853 for the same period in 2023, indicating a decrease of 61%[53]. - The company reported a cash decrease of $2,797,519 for the three months ended June 30, 2024, compared to an increase of $8,180,497 in the same period of 2023[53]. - The acquisition of property, plant, and equipment for the six months ended June 30, 2024, was $8,197,410[200]. Currency and Foreign Exchange - The company recognized a foreign currency translation adjustment loss of $8,133,227 for the three months ended June 30, 2024[51]. Miscellaneous - The company completed a sale-leaseback transaction for its battery manufacturing building for a total sale price of $20,909,566, resulting in a recognized increase to the right-of-use asset[85]. - The company incurred $11,321,352 in additions to intangible assets for the three months ended June 30, 2024, compared to $18,747,189 in the same period of 2023[53].