The Lion Electric pany(US:LEV)2024-11-06 22:08Financial Performance - Revenue for Q3 2024 was $30.63 million, a decrease of 62% compared to $80.35 million in Q3 2023[6] - Gross loss for Q3 2024 was $15.95 million, compared to a gross profit of $5.37 million in Q3 2023[6] - Operating loss for the nine months ended September 30, 2024, was $88.04 million, significantly higher than the $51.44 million loss in the same period of 2023[6] - Net loss for the nine months ended September 30, 2024, was $74.91 million, compared to a net loss of $47.22 million in the same period of 2023[6] - For the three months ended September 30, 2024, the net loss was $33,945,985, compared to a net loss of $19,852,573 for the same period in 2023, representing a 71.5% increase in losses year-over-year[10] - For the nine months ended September 30, 2024, the net loss totaled $74,908,660, up from $47,223,604 in 2023, indicating a 58.6% increase in losses[15] - The company reported a basic loss per share of $0.15 for Q3 2024, compared to a loss of $0.09 per share in Q3 2023[6] Assets and Liabilities - Total assets decreased to $780.20 million as of September 30, 2024, down from $841.12 million at the end of 2023[4] - Current liabilities increased to $259.89 million as of September 30, 2024, compared to $145.73 million at the end of 2023[4] - Cash and cash equivalents decreased to $26.29 million as of September 30, 2024, from $29.89 million at the end of 2023[4] - Total shareholders' equity decreased to $280.44 million as of September 30, 2024, down from $358.91 million at the end of 2023[4] - The accumulated deficit increased to $330,654,757 as of September 30, 2024, compared to $255,746,097 at the end of 2023[15] - The company reported a working capital of $32,407,364 as of September 30, 2024, down from $210,961,639 at the end of 2023[15] Cash Flow and Financing - Cash flows used in operating activities for the nine months ended September 30, 2024, were $31,568,669, significantly improved from $86,245,911 in the same period of 2023[15] - The company is currently seeking potential sources of financing to improve liquidity and strengthen its financial position[15] - Management is in discussions with debt holders to negotiate potential amendments or waivers related to its debt instruments[17] Revenue and Deferred Liabilities - Deferred revenue and other deferred liabilities increased to $44.25 million as of September 30, 2024, from $18.27 million at the end of 2023[4] - Total deferred revenue and other deferred liabilities reached $44,253,046 as of September 30, 2024, compared to $18,267,139 at December 31, 2023, marking an increase of 142%[36] - Deferred revenue related to the U.S. EPA Clean School Bus Program increased to $39,033,525 as of September 30, 2024, up from $16,293,067 at December 31, 2023, representing a growth of 140%[36] Debt and Interest Rates - Long-term debt and other debts rose to $292,636,055 as of September 30, 2024, up from $224,942,365 at the end of 2023[28] - The current portion of long-term debt increased significantly to $149,540,872 as of September 30, 2024, compared to $27,056,476 at December 31, 2023[39] - The weighted average all-in interest rate for the credit agreement was 8.6% as of September 30, 2024, compared to 6.96% at December 31, 2023[44] Government Assistance and Loans - The company has secured a non-repayable financial contribution of up to C$26,991,772 under the Project Innovation Program, with $12,475,417 received as of September 30, 2024[37] - The Lion Electric Company secured a loan of up to C$50,000,000 from Investissement Quebec, with a potential forgiveness of up to 30% based on specific operational criteria[46] - The Strategic Innovation Fund loan has a nominal value of $21,807,465 as of September 30, 2024, with a potential forgiveness of up to 30% subject to certain criteria[49] Stock Options and Warrants - As of September 30, 2024, the company had 13,371,146 outstanding stock options with a weighted average exercise price of C$1.54, an increase from 11,301,137 options at C$2.16 as of September 30, 2023[86] - The company issued warrants to Amazon.com NV Investment Holdings LLC, allowing the purchase of up to 35,350,003 common shares at an exercise price of $5.66 per share[72] - The total Business Combination Warrants outstanding as of September 30, 2024, were 27,111,323, with 15,972,364 publicly traded[76] Depreciation and Amortization - The Company recognized a depreciation expense of $8,073,128 for the nine months ended September 30, 2024, compared to $6,577,331 for the same period in 2023[26] - Depreciation and amortization for the nine months ended September 30, 2024, totaled $26,239,530, compared to $17,715,104 for the same period in 2023[103] Restructuring and Costs - The company incurred restructuring costs of $2,163,269 during the nine months ended September 30, 2024, with a liability of $293,482 remaining at the end of the period[91] - Share-based compensation expenses for the three months ended September 30, 2024, totaled $438,191, a decrease from $1,324,325 in the same period of 2023[85]