Canoo (US:GOEV)2022-05-10 20:48Financial Performance - The company reported a net loss of $125,367 thousand for the three months ended March 31, 2022, compared to a net loss of $15,227 thousand for the same period in 2021, indicating an increase in losses of approximately 724.5%[25] - Canoo reported a net loss of $125.4 million for the three months ended March 31, 2022, compared to a net loss of $15.2 million for the same period in 2021, representing a 723% increase in losses[120] - Adjusted EBITDA for the three months ended March 31, 2022, was $(117.4) million, compared to $(49.8) million for the same period in 2021[136] - The company expects to continue incurring net losses and negative cash flows as it expands research and development activities and scales operations[138] - The company has experienced operating losses and expects to continue incurring losses as it implements its business plans[160] Cash Flow and Liquidity - Cash and cash equivalents decreased from $224,721 thousand at the end of 2021 to $104,926 thousand by March 31, 2022, a reduction of about 53%[23] - As of March 31, 2022, the company's unrestricted cash balance is $104.9 million, with negative cash flow from operating activities of $120.3 million for the three months ended March 31, 2022[43] - Net cash used in operating activities was $120,337 thousand for Q1 2022, compared to $53,948 thousand for Q1 2021, indicating an increase in cash outflow of approximately 123%[37] - Unrestricted cash and cash equivalents amounted to $104.9 million as of March 31, 2022, primarily invested in money market funds[137] - The company acknowledges substantial doubt about its ability to continue as a going concern without obtaining additional capital[159] Assets and Liabilities - Total assets decreased from $523,074 thousand as of December 31, 2021, to $419,961 thousand as of March 31, 2022, representing a decline of approximately 19.7%[23] - The company had total liabilities of $172,252 thousand as of March 31, 2022, slightly down from $179,075 thousand at the end of 2021, a decrease of approximately 3.5%[23] - The company reported a total stockholders' equity of $247,709 thousand as of March 31, 2022, down from $343,999 thousand at the end of 2021, a decline of approximately 28%[23] Research and Development - Research and development expenses increased significantly to $82,487 thousand in Q1 2022, up from $39,319 thousand in Q1 2021, reflecting a growth of approximately 110%[25] - Canoo's research and development expenses increased by $43.2 million, or 110%, to $82.5 million for the three months ended March 31, 2022, compared to $39.3 million for the same period in 2021[122] - Research and development expenses are expected to increase to support growth initiatives related to the Lifestyle Vehicle, MPDVs, and Pickup, launching as early as 2022 and 2023[124] Capital and Financing - The company plans to raise additional capital through a combination of debt financing, non-dilutive financing, and/or equity financing, but cannot conclude that these plans are probable of being successfully implemented[45] - The company has entered into a Standby Equity Purchase Agreement (SEPA) allowing it to sell up to $250 million of its shares of Common Stock over 36 months[91] - The company expects to receive $50 million from a private placement at a price of $3.65 per share[93] - The company is exploring various financing options, including credit facilities and debt securities, to finance future expenditures[162] - The issuance of additional equity could dilute existing stockholders and may affect the per share projected earnings[163] Operational Challenges - The company has incurred losses since inception and expects to continue to do so, with significant increases in capital and operating expenditures anticipated[43] - The company has been affected by COVID-19, resulting in increased costs for logistics and supply chains, as well as temporary facility closures[47] - The company may face challenges in accessing capital, which could materially affect its financial condition and operations[160] Stock and Equity - The weighted-average shares outstanding increased to 233,661 thousand in Q1 2022 from 224,795 thousand in Q1 2021, an increase of about 3.5%[25] - The Company had 23,755,069 public warrants outstanding as of March 31, 2022, with an exercise price of $11.50 per share[86] - The company has issued 972,222 shares of common stock and warrants to purchase an additional 972,222 shares for a total purchase price of $8.4 million[169] - The company has repurchased a total of 296,772 shares of common stock at an average price of $0.01 per share from January to March 2022[171] Lease and Facilities - The Company entered into a real estate lease for its industrialization facility in Bentonville, Arkansas, with a 10-year term starting February 1, 2022[71] - As of March 31, 2022, the remaining operating lease right-of-use asset was approximately $26.8 million, and the operating lease liability was approximately $27.4 million[73] - The total lease payments for operating lease liabilities as of March 31, 2022, amounted to $39.1 million, with a present value of $27.4 million[76] Other Financial Metrics - Selling, general and administrative expenses were $55.6 million for the three months ended March 31, 2022, consistent with the prior year, with significant stock-based compensation expenses[125] - Professional fees increased by $8.4 million during the three months ended March 31, 2022, primarily due to business development and legal activities[127] - Stock-based compensation expenses were $20,680 thousand in Q1 2022, down from $45,146 thousand in Q1 2021, a decrease of approximately 54%[37] - Total accrued expenses decreased from $83.9 million at December 31, 2021, to $52.0 million at March 31, 2022[63]