Fisker (US:FSR)2024-04-22 22:47Financial Performance - The Company reported revenues of $272.9 million for the year ended December 31, 2023, primarily from electric vehicle sales and related services [439]. - Total revenue for 2023 was $272,883 thousand, a significant increase from $342 thousand in 2022 [446]. - The net loss for Fisker Inc. in 2023 was $939.9 million, compared to a net loss of $547.5 million in 2022, representing an increase of 71.4% year-over-year [450]. - The company reported a basic and diluted net loss per share of $(2.73) for 2023, compared to $(1.80) in 2022 [446]. - The Company's income/(loss) before provision for income taxes was $(938.6) million for the year ended December 31, 2023, compared to $(547.3) million in 2022 [609]. Inventory and Assets - The Company's inventory balance as of December 31, 2023, was $406.5 million, with a write-down of total inventory to net realizable value totaling $232.7 million [436]. - The Company recorded a significant inventory write-down of $233.9 million in 2023, indicating potential challenges in inventory management [450]. - Total assets increased to $1,831,687 thousand in 2023 from $1,515,426 thousand in 2022, reflecting growth in the company's asset base [444]. - The total inventory as of December 31, 2023, was $406.5 million, a substantial increase from $4.3 million in 2022 [530]. Liabilities and Equity - Current liabilities rose to $902,629 thousand in 2023, up from $330,881 thousand in 2022, indicating increased short-term obligations [444]. - Stockholders' equity decreased to $(98,082) thousand in 2023 from $480,505 thousand in 2022, highlighting a decline in shareholder value [444]. - The Company did not make a required interest payment in March 2024, raising substantial doubt about its ability to continue as a going concern [428]. Operating Expenses - Cost of goods sold for 2023 was $558,821 thousand, resulting in a gross margin of $(285,938) thousand [446]. - Operating expenses totaled $316,517 thousand in 2023, compared to $530,324 thousand in 2022, indicating a reduction in operating costs [446]. - Research and development expenses were $67,357 thousand in 2023, down from $423,907 thousand in 2022, suggesting a shift in investment strategy [446]. Cash Flow and Financing - Cash and cash equivalents decreased to $325,452 thousand in 2023 from $736,549 thousand in 2022, indicating a reduction in liquidity [444]. - Proceeds from the issuance of convertible notes amounted to $450 million in 2023, contributing to the net cash provided by financing activities of $565.7 million [450]. - The company incurred cash paid for interest totaling $16.7 million in 2023, slightly down from $18 million in 2022 [451]. - Fisker Inc. is currently seeking additional financing and restructuring its debt obligations due to substantial doubt about its ability to continue as a going concern [464]. Revenue Recognition - The Company recognizes revenue from over-the-air software updates ratably over the warranty term, impacting revenue timing [439]. - Customer deposits for vehicle orders are generally non-refundable and are recognized as revenue upon delivery of the vehicle [478]. - The company recognized deferred revenue of $45.6 million as of December 31, 2023, with expectations to recognize $19.9 million of this revenue in the next 12 months [475]. Market and Economic Conditions - The Company expects inflationary pressure to persist, impacting manufacturing costs related to key components and labor [417]. - The Company anticipates that inflation will continue to affect its cost structure in the foreseeable future [417]. - The Company has not hedged its foreign currency exposure, which may result in exchange losses due to fluctuations in currencies like the Euro [415]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, affecting the reliability of financial statements [426]. - The Company has determined that it operates in one reportable segment, with financial information reviewed on a consolidated basis [505]. Stock and Compensation - Stock-based compensation expense totaled $8.2 million for the year ended December 31, 2023, a decrease of 58.3% from $19.6 million in 2022 [594]. - The total unrecognized compensation related to unvested stock option awards was $22.2 million, expected to be recognized over approximately 3.3 years [601]. - The Company has not declared or paid cash dividends and does not plan to do so in the foreseeable future [599].