Arcimoto(US:FUV)2023-04-14 21:30Financial Performance - Total revenues for 2022 were approximately $6.56 million, representing a 50% increase compared to the prior year [171]. - The net loss attributable to common stockholders in 2022 was approximately $62.88 million, an unfavorable change of approximately $15.32 million compared to the prior year [172]. - The net loss for the year ended December 31, 2022, was approximately $62,879,398, compared to a net loss of approximately $47,563,751 for 2021, representing a 32% increase in losses year-over-year [304]. - Gross loss for 2022 was $16.70 million, compared to a gross loss of $12.76 million in 2021, reflecting a deterioration of 30.9% [299]. - Total operating expenses increased to $42.80 million in 2022, up from $38.88 million in 2021, representing an increase of 10.3% [299]. - Operating expenses increased by approximately 10%, or $3,919,000, for the year ended December 31, 2022, compared to the previous year [190]. - The company reported an accumulated deficit of $166.87 million as of December 31, 2022, up from $103.99 million in 2021, reflecting a 60.3% increase [297]. Cash Flow and Liquidity - Cash and cash equivalents at the end of 2022 were approximately $462,800, a decrease of approximately $16.51 million from the end of 2021 [173]. - The company experienced a net cash decrease of $16,509,000 for the year ended December 31, 2022, compared to a decrease of $22,480,000 in 2021, reflecting a 26% improvement [235]. - Cash flows used in operating activities during 2022 were approximately $47.52 million, an increase of approximately $8.23 million compared to approximately $39.29 million in 2021 [173]. - Net cash provided by financing activities was approximately $39,078,000 in 2022, an increase of 9% from $35,937,000 in 2021 [242][243]. - The company raised approximately $27,198,000 by issuing 429,743 common shares through an Equity Distribution Agreement by December 31, 2022 [231]. Capital Expenditures and Investments - Capital expenditures in 2022 amounted to approximately $8.06 million, down from approximately $17.36 million in 2021 [173]. - Capital expenditures are projected to be approximately $10,000,000 per year over the next three years, significantly lower than the previously projected $35,000,000 to $40,000,000 per year [188]. - The company has suspended several capital expenditure programs due to uncertainties in future market conditions [188]. - The company incurred $8,062,434 in capital expenditures for property and equipment in 2022, down from $17,355,966 in 2021, a reduction of approximately 53.5% [304]. Sales and Production - In 2022, the company produced 336 vehicles and sold 228 new vehicles, with 85 vehicles deployed into rental operations and 24 into fixed assets for marketing [170]. - As of December 31, 2022, the company sold a total of 563 FUVs, an increase of 228 units or approximately 68% from 335 FUVs sold as of December 31, 2021 [186]. - The average sales price for the year ended December 31, 2022, was $21,393, which is $1,493 or 7.5% above the starting price [187]. - The company has expanded its rental operations with new partnerships in Florida and introduced new electric vehicle models [181]. Research and Development - Research and Development (R&D) expenses rose by approximately $6,827,000 or 56% for the year ended December 31, 2022, primarily due to higher costs in developing new technology and production processes [217]. - Research and development expenses for 2022 were $18.93 million, a 56.2% increase from $12.11 million in 2021 [299]. Employee and Operational Changes - The number of full-time employees decreased by approximately 17%, from 250 as of December 31, 2021, to 208 as of December 31, 2022 [190]. - The company initiated a restructuring plan in Q4 2022 to reduce payroll overhead, which is expected to improve operational efficiency [189]. - The company reported a material weakness in internal control over financial reporting due to inadequate resources and lack of segregation of duties [252][253]. Inventory and Accounts - The company's inventory totaled $12,324,017 as of December 31, 2022, up from $7,856,105 in 2021, with raw materials increasing from $7,089,033 to $11,491,555 [328]. - As of December 31, 2022, the company reported accounts receivable of $262,643, an increase from $127,860 in 2021, with a reserve allowance of $0 in 2022 compared to $2,500 in 2021 [326]. - Accounts payable stood at approximately $8.0 million as of April 13, 2023, with a significant portion overdue by more than 30 days [313]. Financial Instruments and Valuation - The company does not have any outstanding derivative financial instruments or off-balance sheet guarantees [193]. - The company has classified its convertible notes as Level 2 under the fair value measurements hierarchy, indicating a recurring fair value measurement as of December 31, 2022 [323]. - The company recorded a full valuation allowance on its net U.S. deferred tax assets, indicating a likelihood that these assets will not be realized [210]. Future Outlook - The company anticipates continued negative cash flows until engineering cost improvements and increased sales volume are achieved [189]. - The company is exploring various financing solutions through credit and equity markets to address its financial challenges [314].