Faraday Future(US:FFIE)2025-11-21 21:04Financial Performance - The company recorded a net loss of $222.187 million for the three months ended September 30, 2025, compared to a net loss of $77.686 million in the same period of 2024 [632]. - Total operating expenses for the three months ended September 30, 2025, were $172.588 million, significantly higher than $3.763 million in the same period of 2024, largely due to asset impairment and increased operational costs [632]. - Revenue for the three months ended September 30, 2025, increased by $28 thousand (311.1%) to $37 thousand compared to $9 thousand in the same period of 2024, primarily due to higher automotive sales revenue [634]. - For the nine months ended September 30, 2025, revenue increased by $103 thousand (33.9%) to $407 thousand compared to $304 thousand in the same period of 2024, driven by $37 thousand in automotive sales and $370 thousand in leasing revenue [635]. - The company reported a $138.5 million impairment loss related to long-lived assets for the three months ended September 30, 2025, primarily due to updated operational plans and production forecasts [660]. - The company has an accumulated deficit of $4,671.5 million and an unrestricted cash balance of $62.9 million as of September 30, 2025 [690]. Research and Development - Research and development expenses are expected to increase as the company focuses on the FF 92 and FX Series vehicles, following substantial completion of R&D for the FF 91 [620]. - Research and development expenses for the three months ended September 30, 2025, increased by $1.5 million (28.2%) to $6.640 million compared to $5.180 million in the same period of 2024, driven by higher operating consumables and equipment rental costs [640]. - The company is focusing on final validation and production readiness of the FX Super One vehicle, with ongoing R&D efforts aimed at enhancing vehicle performance and safety systems [641]. Product Development and Launch - The FF 91 series is currently being manufactured at the FF ieFactory California, with ongoing limited deliveries while reallocating resources towards the FF 92 upgrade and FX Super One development [575]. - The FX Super One is designed as the first "First Class AI-MPV," targeting a new market segment with advanced AI features and a goal of delivering "twice the performance at half the price" [575]. - The planned FF 92 upgrade program is in the research and development stage and aims to maintain the company's competitive edge in the ultra-luxury electric vehicle segment [575]. - The FX Super One features advanced AI technologies, including a voice interaction system based on large language models [577]. - The company commenced deliveries of the FF Series, specifically the FF 91 model, and is preparing for full-scale production of the FX Series, including the Super One model [691]. Market Strategy and Expansion - The company has established operations in the UAE to support assembly and sales for FF 91 series vehicles, further expanding its presence in the Middle East [566]. - The company has implemented a dual-home market strategy, integrating U.S. technological innovation with China's supply chain capabilities [569]. - The company is exploring potential manufacturing opportunities in China through joint ventures or other arrangements [565]. - The company aims to leverage its Eco Artificial Intelligence (EAI) mobility ecosystem with blockchain initiatives to create new value channels for users and investors [569]. - The company is expanding its U.S. and Middle East operations, with its Ras Al Khaimah facility ready for occupancy to support FX Super One production [577]. Financing and Capital Management - The Company secured approximately $105 million in new cash financing in July 2025, primarily through unsecured convertible notes and warrants [581]. - The Company raised over $100 million in total capital since September 2024 [585]. - The company expects to fund ongoing operations through various financing alternatives, including equipment financing and equity offerings, until sufficient revenue is generated from product sales [604]. - The anticipated start of FX Series production is expected to generate new revenue streams and enhance operational performance [701]. - The company projects substantial additional funds will be required to continue operations and support production of the FF 91 and FX Series vehicles [701]. Compliance and Governance - The company regained full compliance with Nasdaq's listing requirements in September 2025 [589]. - The Board approved the issuance of up to 61.9 million shares of Class A Common Stock under the March 2025 Securities Purchase Agreement [585]. - The Company confirmed it will not pursue a reverse stock split unless required for Nasdaq compliance [585]. - The company qualifies as a "smaller reporting company" and is not required to provide certain market risk disclosures [728]. Inventory and Revenue Recognition - The company recorded approximately $7.1 million in inventory reserve additions for the three months ended September 30, 2025, increasing the total inventory reserve from approximately $2.8 million in 2024 to approximately $14.2 million in 2025 [637]. - Customer deposits amounted to $4.1 million as of September 30, 2025, up from $3.0 million as of December 31, 2024, reflecting an increase in vehicle reservations driven by the launch of the FX Super One vehicle [613]. - The company recognizes revenue from automotive sales upon delivery, with payments typically received at that point [607]. - Deferred revenue related to products and services was insignificant as of September 30, 2025 [616]. Accounting Estimates and Risks - Management's estimates for financial statements are based on historical experience and reasonable assumptions, affecting reported amounts of assets and liabilities [723]. - Actual results may differ significantly from management's estimates due to changes in accounting estimates and current global macroeconomic conditions [724]. - Critical accounting estimates involve significant estimation uncertainty and may materially impact financial condition or results of operations [725]. - No major changes to critical accounting estimates have occurred that materially impact the financial statements as of the report date [726].