Canoo (US:GOEV)2022-05-10 23:20Financial Data and Key Metrics Changes - Research and development expenses increased to $82.5 million for Q1 2022, compared to $39.3 million in the prior year period, with adjusted R&D expenses at $75.5 million excluding stock-based compensation [30] - GAAP net loss for Q1 2022 was $125.4 million, significantly higher than a net loss of $15.2 million in the prior year period [31] - Cash used in operations was $120.3 million for Q1 2022, compared to $53.9 million for the same period in 2021 [32] Business Line Data and Key Metrics Changes - Stage 2 orders increased by 17% from Q4 2021 to Q1 2022, totaling over 17,500 units to date [28] - Battery module production increased by 156% sequentially, with production for 43 gamma vehicles [27] Market Data and Key Metrics Changes - The company is positioned to benefit from the $7.5 billion national electric vehicle infrastructure program, with over $665 million allocated to initial rollout states for EV charging infrastructure [18] - The administration's use of the Defense Production Act aims to increase the supply of critical materials for EV production, potentially benefiting the company [19] Company Strategy and Development Direction - The company is focused on building a mega micro factory in Pryor, Oklahoma, and is committed to workforce development in the Heartland [16][34] - The partnership with NASA to produce vehicles for the Artemis lunar missions highlights the company's strategic focus on advanced mobility and government contracts [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions but emphasized a disciplined approach to capital raising and operational execution [23] - The company anticipates hitting its start of production (SOP) target in Q4 2022, despite ongoing supply chain challenges [26] Other Important Information - The company has satisfied the final CFIUS dilution condition related to a shareholder, allowing for more flexibility in operations [17] - The company is actively exploring non-dilutive capital opportunities to support its construction efforts [24] Q&A Session Summary Question: CapEx related to financing timing - Management clarified that the lower CapEx in Q1 was due to milestone recognition of fixed assets, not financing timing [38] Question: Timeline for closing PIPE and drawdown - The first PIPE is expected to close within the week, with access to the Yorkville agreement shortly thereafter [43] Question: Update on NASA vehicle testing and milestones - Management indicated that the focus is on the second building in Bentonville, which is progressing rapidly, and emphasized the importance of securing non-dilutive capital [51][52] Question: Equipment update in the plant - The company is currently producing up to 12 units a week and is focused on refining processes for SOP [58] Question: Feedback from fleet customers - Management reported positive feedback from fleet customers regarding vehicle performance and design [61]