Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) (“FF,” “Faraday Future” or “the Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced financial results for its third quarter ended September 30, 2021. Results were delayed as a result of the previously announced Special Committee review.
“The third quarter of 2021 was eventful for Faraday Future as we completed our merger with PSAC and became a public company, ending the quarter well-capitalized with a strong balance sheet,” said Global CEO of Faraday Future Dr. Carsten Breitfeld. “We made strong progress building out the Hanford manufacturing facility and production area construction is advancing on schedule. We continued to make excellent progress with our supply chain partners in a challenging supply-chain environment. We significantly bolstered our management team with key hires who will help us navigate the challenging logistics climate, and strengthened other key areas in manufacturing, development, finance, and elsewhere.”
Dr. Breitfeld continued, “After quarter end, we marked our first four milestones toward SOP at the Hanford manufacturing facility. We remain confident that we will launch the FF 91 in the third quarter of 2022 and believe that Faraday Future is positioned to redefine the state-of-the-art in intelligent electrified mobility.”
COMMENT ON SPECIAL COMMITTEE REVIEW
Dr. Breitfeld added, “The Special Committee of independent Board members completed its previously announced review of past disclosures and allegations and submitted its findings and recommendations to the full Board. The Board accepted the findings and implementation of remediation actions is well underway. On behalf of the entire management team, I want to thank the Special Committee, our financial and legal advisors, and my fellow Board members for their hard work and for their commitment to holding the Company to the highest standards of ethics and conduct. I also want to thank all of my fellow employees, our suppliers, and our investors for their support and confidence. I believe that this review and the changes we are making will help us build a stronger, better company.”
KEY COMPANY HIGHLIGHTS DURING THIRD QUARTER 2021
Faraday Future continues to make progress towards the launch of the FF 91 and accomplishing our business plan, and made the following announcements during the three months ended September 30, 2021:
KEY EVENTS SUBSEQUENT TO THIRD QUARTER END
Subsequent to September 30, 2021, and through December 31, 2021, FF accomplished the following major milestones:
Subsequent to December 31, 2021, FF accomplished the following additional major milestones and made certain personnel and organizational changes:
RESULTS FOR THIRD QUARTER 2021
Operating expenses for the third quarter ended September 30, 2021, were $186 million compared to $18 million for the three months ended September 30, 2020. The increase is primarily due to an acceleration of costs to bring the Hanford manufacturing facility to full commercial production. Net loss was $304 million for the third quarter ended September 30, 2021, compared to a net loss of $33 million in the prior-year period. The increase in net loss is attributable to the significant increase in operating expenses, the loss relating to fair value measurement of related party notes payable, notes payable which the Company elected to account for using the fair value option, warrant liabilities, as well as loss on settlement of related party notes payable, notes payable, and vendor payables in trust.
Cash and cash equivalents were $666 million as of September 30, 2021. The cash balance as of March 31, 2022 was $276 million, which includes the repayment of a $97 million note and accrued interest on schedule.
EARNINGS CONFERENCE CALL
The Company plans to host a conference call open to investors after it files its Q1 2022 results in mid-May.
Customers can preorder an FF 91 now at: https://www.ff.com/us/preorder.
ABOUT FARADAY FUTURE
Faraday Future is a class-defining luxury electric vehicle company. The Company has pioneered numerous innovations relating to its products, technology, business model, and user ecosystem since its inception in 2014. Faraday Future aims to perpetually improve the way people move by creating a forward-thinking mobility ecosystem that integrates clean energy, AI, the Internet, and new usership models. Faraday Future’s first flagship product is the FF 91 Futurist.
FOLLOW FARADAY FUTURE:
https://www.ff.com/
https://twitter.com/FaradayFuture
https://www.facebook.com/faradayfuture/
https://www.instagram.com/faradayfuture/
www.linkedin.com/company/faradayfuture
NO OFFER OR SOLICITATION
This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, and include (among others) statements regarding the expected timing of the launch of FF 91 and FF 81 vehicles and anticipated production capacity of the Company’s Hanford, California facility. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the outcome of the SEC investigation relating to the matters that were the subject of the Special Committee investigation; the Company’s ability to satisfy the terms of the Nasdaq exception and to file Form 10-K by May 16, 2022 and its ability to regain compliance with the Nasdaq continued listing standards; the implementation of the Special Committee’s actions and related internal review by the Company; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the success of other competing manufacturers; the performance and security of the Company’s vehicles; potential litigation involving the Company; the result of future financing efforts and general economic and market conditions impacting demand for the Company’s products; the ability of the Company to attract and retain employees. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s registration statement on Form S-1 (File No. 333-258993) filed with the SEC on October 4, 2021, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Faraday Future Intelligent Electric Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
| Three Months Ended |
| Nine Months Ended | |||||||||||||
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Operating expenses |
|
|
|
|
|
|
| |||||||||
Research and development | $ | 79,757 |
|
| $ | 3,520 |
|
| $ | 94,506 |
|
| $ | 14,704 |
| |
Sales and marketing |
| 6,832 |
|
|
| 221 |
|
|
| 11,099 |
|
|
| 1,691 |
| |
General and administrative |
| 36,725 |
|
|
| 13,806 |
|
|
| 64,148 |
|
|
| 32,538 |
| |
Loss on disposal of property and equipment |
| 62,342 |
|
|
| — |
|
|
| 62,987 |
|
|
| — |
| |
Total operating expenses |
| 185,656 |
|
|
| 17,547 |
|
|
| 232,740 |
|
|
| 48,933 |
| |
|
|
|
|
|
|
|
| |||||||||
Loss from operations |
| (185,656 | ) |
|
| (17,547 | ) |
|
| (232,740 | ) |
|
| (48,933 | ) | |
Change in fair value measurements |
| (22,747 | ) |
|
| 1,394 |
|
|
| (60,394 | ) |
|
| 10,056 |
| |
Interest expense |
| (296 | ) |
|
| (8,505 | ) |
|
| (26,550 | ) |
|
| (22,955 | ) | |
Related party interest expense |
| (1,597 | ) |
|
| (7,030 | ) |
|
| (15,765 | ) |
|
| (24,902 | ) | |
Other income (expense), net |
| 1,117 |
|
|
| (2,260 | ) |
|
| (718 | ) |
|
| (2,697 | ) | |
(Loss)/gain on settlement of related party notes payable, notes payable and vendor payables in trust, net |
| (94,727 | ) |
|
| 609 |
|
|
| (96,036 | ) |
|
| 295 |
| |
Loss before income taxes |
| (303,906 | ) |
|
| (33,339 | ) |
|
| (432,203 | ) |
|
| (89,136 | ) | |
Income tax provision |
| — |
|
|
| — |
|
|
| (3 | ) |
|
| — |
| |
Net loss | $ | (303,906 | ) |
| $ | (33,339 | ) |
| $ | (432,206 | ) |
| $ | (89,136 | ) | |
|
|
|
|
|
|
|
| |||||||||
Per share information: |
|
|
|
|
|
|
| |||||||||
Net loss per Common Stock – Class A and Class B – basic and diluted | $ | (1.06 | ) |
| $ | (0.21 | ) |
| $ | (2.12 | ) |
| $ | (0.57 | ) | |
Weighted average Common Stock outstanding – Class A and Class B – basic and diluted |
| 287,951,929 |
|
|
| 157,060,201 |
|
|
| 203,686,758 |
|
|
| 157,055,242 |
| |
|
|
|
|
|
|
|
| |||||||||
Total comprehensive loss: |
|
|
|
|
|
|
| |||||||||
Net loss | $ | (303,906 | ) |
| $ | (33,339 | ) |
| $ | (432,206 | ) |
| $ | (89,136 | ) | |
Change in foreign currency translation adjustment |
| 189 |
|
|
| (3,169 | ) |
|
| (487 | ) |
|
| (1,392 | ) | |
Total comprehensive loss | $ | (303,717 | ) |
| $ | (36,508 | ) |
| $ | (432,693 | ) |
| $ | (90,528 | ) |
Faraday Future Intelligent Electric Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except share and per share data) | ||||||||
(Unaudited) | ||||||||
| September 30, |
| December 31, | |||||
|
|
|
| |||||
Assets |
|
|
| |||||
Current assets |
|
|
| |||||
Cash and cash equivalents | $ | 666,061 |
|
| $ | 1,124 |
| |
Restricted cash |
| 25,083 |
|
|
| 703 |
| |
Deposits |
| 50,221 |
|
|
| 6,412 |
| |
Other current assets |
| 13,246 |
|
|
| 6,200 |
| |
Total current assets |
| 754,611 |
|
|
| 14,439 |
| |
Property and equipment, net |
| 261,562 |
|
|
| 293,933 |
| |
Other non-current assets |
| 7,287 |
|
|
| 8,010 |
| |
Total assets | $ | 1,023,460 |
|
| $ | 316,382 |
| |
Liabilities and stockholders’ equity (deficit) |
|
|
| |||||
Current liabilities |
|
|
| |||||
Accounts payable | $ | 36,180 |
|
| $ | 86,601 |
| |
Accrued expenses and other current liabilities |
| 47,343 |
|
|
| 52,382 |
| |
Related party accrued interest |
| 10,140 |
|
|
| 82,260 |
| |
Accrued interest |
| 5,062 |
|
|
| 36,030 |
| |
Related party notes payable |
| 13,463 |
|
|
| 332,355 |
| |
Notes payable, current portion |
| 103,505 |
|
|
| 149,199 |
| |
Obligation to issue registered shares of Class A Common Stock |
| 22,511 |
|
|
| — |
| |
Vendor payables in trust |
| — |
|
|
| 110,224 |
| |
Total current liabilities |
| 238,204 |
|
|
| 849,051 |
| |
Capital leases, less current portion |
| 35,988 |
|
|
| 36,501 |
| |
Other liabilities, less current portion |
| 4,129 |
|
|
| 1,000 |
| |
Notes payable, less current portion |
| 99,618 |
|
|
| 9,168 |
| |
Total liabilities |
| 377,939 |
|
|
| 895,720 |
| |
Commitments and contingencies |
|
|
| |||||
Stockholders’ equity (deficit) |
|
|
| |||||
Class A Common Stock, $0.0001 par value; 750,000,000 shares authorized; 134,795,128 and 93,099,596 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively |
| 13 |
|
|
| 9 |
| |
Class B Common Stock, $0.0001 par value; 75,000,000 shares authorized; no shares and 64,000,588 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively |
| — |
|
|
| 6 |
| |
Additional paid-in capital |
| 3,475,314 |
|
|
| 1,817,760 |
| |
Accumulated other comprehensive loss |
| (6,461 | ) |
|
| (5,974 | ) | |
Accumulated deficit |
| (2,823,345 | ) |
|
| (2,391,139 | ) | |
Total stockholders’ equity (deficit) |
| 645,521 |
|
|
| (579,338 | ) | |
Total liabilities and stockholders’ equity (deficit) | $ | 1,023,460 |
|
| $ | 316,382 |
|
Faraday Future Intelligent Electric Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
| Nine Months |
| Nine Months | |||||
|
|
|
| |||||
Cash flows from operating activities |
|
|
| |||||
Net loss | $ | (432,206 | ) |
| $ | (89,136 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
| |||||
Depreciation and amortization expense |
| 4,268 |
|
|
| 3,046 |
| |
Stock-based compensation |
| 8,521 |
|
|
| 7,066 |
| |
Vesting of restricted stock awards for employee bonus |
| 14,620 |
|
|
| — |
| |
Loss on disposal of property and equipment |
| 62,987 |
|
|
| — |
| |
Change in fair value measurements |
| 60,394 |
|
|
| (10,056 | ) | |
Loss on cancellation of lease |
| — |
|
|
| 206 |
| |
(Gain)/loss on foreign exchange |
| (1,823 | ) |
|
| 3,234 |
| |
Gain on write-off of accounts payable and loss on write-off of vendor deposits, net |
| (4,191 | ) |
|
| — |
| |
Non-cash interest expense |
| 36,478 |
|
|
| 47,920 |
| |
Loss/(gain) on settlement of related party notes payable, notes payable and vendor payables in trust, net |
| 96,036 |
|
|
| (295 | ) | |
Gain on forgiveness of vendor payables in trust |
| (1,731 | ) |
|
| — |
| |
Reserve for unrecoverable value added taxes |
| 6,404 |
|
|
| — |
| |
Changes in operating assets and liabilities |
|
|
| |||||
Deposits |
| (35,796 | ) |
|
| (7,075 | ) | |
Other current assets |
| (15,260 | ) |
|
| 1,984 |
| |
Other non-current assets |
| (3,186 | ) |
|
| (45 | ) | |
Accounts payable |
| (40,434 | ) |
|
| 11,713 |
| |
Accrued expenses and other current liabilities |
| 5,874 |
|
|
| 4,041 |
| |
Transfers between vendor payables in trust and accounts payable |
| 1,167 |
|
|
| (134 | ) | |
Net cash used in operating activities |
| (237,878 | ) |
|
| (27,531 | ) | |
Cash flows from investing activities |
|
|
| |||||
Proceeds from payments of notes receivables |
| — |
|
|
| 3,600 |
| |
Payments for property and equipment |
| (37,264 | ) |
|
| (589 | ) | |
Net cash (used in) provided by investing activities |
| (37,264 | ) |
|
| 3,011 |
| |
Cash flows from financing activities |
|
|
| |||||
Proceeds from issuance of Class A Common Stock in the Business Combination |
| 229,583 |
|
|
| — |
| |
Proceeds from issuance of Class A Common Stock pursuant to the PIPE Financing |
| 761,400 |
|
|
| — |
| |
Transaction costs paid in connection with the Business Combination |
| (23,148 | ) |
|
| — |
| |
Transaction costs paid in connection with the PIPE Financing |
| (61,130 | ) |
|
| — |
| |
Proceeds from related party notes payable |
| 200 |
|
|
| 10,132 |
| |
Proceeds from notes payable, net of original issuance discount |
| 172,031 |
|
|
| 25,621 |
| |
Payments of related party notes payable |
| (38,217 | ) |
|
| (1,000 | ) | |
Payments of notes payable, including liquidation premium |
| (48,210 | ) |
|
| — |
| |
Payments of notes payable issuance costs |
| (3,355 | ) |
|
| (2,554 | ) | |
Payments of vendor payables in trust |
| (27,722 | ) |
|
| (2,231 | ) | |
Payments of capital lease obligations |
| (2,691 | ) |
|
| (1,806 | ) | |
Transfers between vendor payables in trust and accounts payable |
| (1,167 | ) |
|
| 134 |
| |
Proceeds from exercise of stock options |
| 10,492 |
|
|
| 31 |
| |
Payments of stock issuance costs |
| (1,071 | ) |
|
| — |
| |
Net cash provided by financing activities |
| 966,995 |
|
|
| 28,327 |
| |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
| (2,536 | ) |
|
| (784 | ) | |
Net increase in cash and cash equivalents and restricted cash |
| 689,317 |
|
|
| 3,023 |
| |
Cash and cash equivalents and restricted cash, beginning of period |
| 1,827 |
|
|
| 3,354 |
| |
Cash and cash equivalents and restricted cash, end of period | $ | 691,144 |
|
| $ | 6,377 |
|
Faraday Future Intelligent Electric Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that aggregate to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:
| Nine Months |
| Nine Months | |||
Cash and cash equivalents | $ | 1,124 |
| $ | 2,221 | |
Restricted cash |
| 703 |
|
| 1,133 | |
Total cash and restricted cash, beginning of period | $ | 1,827 |
| $ | 3,354 | |
|
|
|
| |||
Cash and cash equivalents | $ | 666,061 |
| $ | 5,664 | |
Restricted cash |
| 25,083 |
|
| 713 | |
Total cash, cash equivalents and restricted cash, end of period | $ | 691,144 |
| $ | 6,377 | |
|
|
|
| |||
Supplemental disclosure of noncash investing and financing activities |
|
|
| |||
Conversion of related party notes payable and related party accrued interest into Class A Common Stock | $ | 294,796 |
| $ | — | |
Conversion of notes payable and accrued interest into Class A Common Stock |
| 98,375 |
|
| — | |
Issuance of warrants |
| 17,596 |
|
| 490 | |
Conversion of assumed convertible and promissory notes payable into Class A Common Stock and Private Warrants |
| 1,080 |
|
| — | |
Conversion of The9 Conditional Obligation into Class A Common Stock |
| 2,863 |
|
| — | |
Acquisitions of property and equipment included in accounts payable |
| 270 |
|
| 491 | |
Conversion of related party customer deposit to related party notes payable |
| — |
|
| 11,635 | |
|
|
|
| |||
Supplemental disclosure of noncash investing and financing activities related to the Business Combination |
|
|
| |||
Exchange of Legacy FF redeemable preference stock for a commitment to issue Class A Common Stock | $ | 859,182 |
| $ | — | |
Exchange of Legacy FF convertible preferred stock for a commitment to issue Class B Common Stock |
| 697,611 |
|
| — | |
Settlement of notes payable and accrued interest for a commitment to issue Class A Common Stock |
| 68,541 |
|
| — | |
Settlement of related party notes payable and related party accrued interest for a commitment to issue Class A Common Stock |
| 69,218 |
|
| — | |
Settlement of vendor payables in trust for a commitment to issue Class A Common Stock |
| 96,186 |
|
| — | |
Settlement of accounts payable for a commitment to issue Class A Common Stock |
| 2,879 |
|
| — | |
Reclassification of deferred transaction costs paid in prior periods against the proceeds received in the Business Combination |
| 7,865 |
|
| — | |
|
|
|
| |||
Supplemental disclosure of cash flow information |
|
|
| |||
Cash paid for interest | $ | 5,837 |
| $ | 63 |
Last Trade: | US$2.23 |
Daily Change: | -0.05 -2.19 |
Daily Volume: | 2,188,918 |
Market Cap: | US$27.590M |
August 14, 2024 August 12, 2024 |
Leveraging its vertically-integrated approach from mine to material manufacturing, Graphite One intends to produce high-grade anode material for the lithium-ion electric vehicle battery market and energy storage systems...
CLICK TO LEARN MOREUGE International develops, owns, and operates commercial and community solar projects in the United States and strategic markets abroad. Our distributed energy solutions deliver cheaper, cleaner energy to businesses and consumers...
CLICK TO LEARN MORECOPYRIGHT ©2022 GREEN STOCK NEWS