Canoo (US:GOEV)2021-11-15 22:00Financial Performance - The company reported no revenue for the three months ended September 30, 2021, compared to $2.55 million for the same period in 2020, indicating a year-over-year decline of 100%[28]. - Canoo Inc. experienced a net loss of $80.9 million for the three months ended September 30, 2021, compared to a net loss of $23.4 million for the same period in 2020, reflecting an increase in losses of approximately 245%[28]. - For the nine months ended September 30, 2021, Canoo reported a net loss of $208.656 million, compared to a net loss of $77.521 million for the same period in 2020, representing a 168% increase in losses year-over-year[37]. - The net loss for the three months ended September 30, 2021, was $80.9 million, an increase of 245.8% compared to a net loss of $23.4 million in the same period of 2020[148]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $(212.3) million, compared to $(60.8) million for the same period in 2020, indicating a significant increase in losses[171]. Assets and Liabilities - As of September 30, 2021, Canoo Inc. reported total assets of $614.5 million, a decrease from $753.5 million as of December 31, 2020, reflecting a decline of approximately 18.4%[25]. - The company's accumulated deficit increased to $554.0 million as of September 30, 2021, up from $345.4 million as of December 31, 2020, indicating a rise of approximately 60.4%[25]. - Total liabilities decreased to $153.1 million as of September 30, 2021, from $188.2 million as of December 31, 2020, reflecting a decline of approximately 18.6%[25]. - The company had cash and cash equivalents of $414.9 million as of September 30, 2021, down from $702.4 million as of December 31, 2020, a decrease of approximately 41%[25]. - Canoo's cash, cash equivalents, and restricted cash at the end of the period totaled $416.314 million, down from $702.422 million at the beginning of the period, indicating a decrease of $286.108 million[37]. Operating Expenses - Total operating expenses for the three months ended September 30, 2021, were $107.0 million, significantly higher than $29.7 million for the same period in 2020, representing an increase of approximately 260%[28]. - Selling, general and administrative expenses for the nine months ended September 30, 2021, were $144.1 million, up from $15.9 million in the same period of 2020, representing an increase of approximately 806%[28]. - Research and development expenses for the nine months ended September 30, 2021, totaled $158.0 million, compared to $52.9 million for the same period in 2020, marking an increase of approximately 198%[28]. - Total costs and operating expenses increased by $77.3 million, or 259.9%, to $107.0 million in the three months ended September 30, 2021, compared to $29.7 million in the same period of 2020[148]. - Selling, general and administrative expenses increased by $128.2 million, or 806.3%, to $144.1 million in the nine months ended September 30, 2021, compared to $15.9 million in the same period of 2020[158]. Cash Flow - The net cash used in operating activities for the nine months ended September 30, 2021, was $180.621 million, significantly higher than the $65.091 million used in the same period of 2020[37]. - Net cash used in investing activities was approximately $100.1 million for the nine months ended September 30, 2021, primarily for production tooling and machinery[183]. - Net cash used in financing activities was $5.4 million for the nine months ended September 30, 2021, mainly due to repayments of the PPP loan and offering costs[184]. Strategic Initiatives - The company plans to continue monitoring macroeconomic conditions and adapt its business strategy accordingly in response to the ongoing impacts of COVID-19[49][50]. - Canoo's mission is to bring electric vehicles to everyone, leveraging a breakthrough EV platform to innovate and reduce costs compared to competitors[38]. - The company plans to raise additional capital through a combination of debt financing, non-dilutive financing, and/or equity financing to support its growth strategy[174]. - The company finalized the selection of Oklahoma for its U.S. mega microfactory to execute Phase 2 of EV production, with initial production expected to start in 2022[207]. - The company also selected Arkansas for an advanced industrialization facility, which is anticipated to support initial EV production[208]. Risks and Challenges - The company faces risks from potential disruptions in manufacturing due to natural disasters or health epidemics, which could impact EV production[212]. - Cybersecurity risks associated with third-party vendors could harm the company's competitive advantage and cause production delays[213]. - Legal proceedings and regulatory actions may have a material adverse effect on the company's business and financial condition[216]. - There is no assurance that the company will be able to enter into definitive agreements for the financial incentives or meet the required milestones[210]. Stock and Compensation - The company awarded 6,985,548 Restricted Stock Units (RSUs) during the nine months ended September 30, 2021, with 998,994 vesting immediately[102]. - Total stock-based compensation expense for the three months ended September 30, 2021, was $19.1 million, compared to $0.3 million for the same period in 2020, representing a significant increase[109]. - Canoo's stock-based compensation for the nine months ended September 30, 2021, was $89.758 million, a significant increase from $1.059 million in the same period of 2020[37]. - The company reported a total unrecognized compensation cost of $59.6 million as of September 30, 2021[109]. - The CEO was awarded 6,000,000 PSUs based on stock price milestones, subject to continued service through the vesting dates[120].