- Our LDV vehicle is eligible for the full IRA commercial tax
credit of $7,500 in 2023
- 25% reduction in annual operating expenses compared to last
fiscal year
- Secured favorable long-term lease for Oklahoma City manufacturing facility
- Focused on exiting 2023 at a 20K
run-rate, which opens the ability for us to move to 40k run-rate by 2024 to meet demand
- Targeting Gross Margin positive in 2025
JUSTIN,
Texas, May 15, 2023 /PRNewswire/ -- Canoo Inc.
(Nasdaq: GOEV), a high-tech advanced mobility company, today
announced its financial results for the first quarter of 2023.
"Medium to long term demand for zero emission, technology driven
vehicles will continue to grow rapidly as the average age of
vehicle has reached an all-time high between 12 to 14 years
depending on the segment. These numbers prove that the stage is set
for zero emission, technology driven vehicles especially in the
TAM's and the geographies we are focused on where there is current
demand and high-volume buyers. We also believe that we are focused
on the geographies and segments where there is available capital
and favorable regulatory conditions," said Tony Aquila, Chairman
and CEO at Canoo.
First Quarter & Recent Business Updates:
- Raised over $150 million in on
and off balance sheet financing
- Battery module manufacturing system delivered at Pryor facility
- Initial installation of general assembly line at Oklahoma City facility
- 5% Q-o-Q growth in stage 2 and 3 orders
First Quarter Financial Highlights:
- As of March 31, 2023, we had cash
and cash equivalents of $6.7 million.
After giving effect to the issuance and sale by the Company of
convertible debentures of $48.0
million and exercise of warrants of $15.0 million on April 25,
2023, our cash balance would have been $69.7 million as of March
31,2023.
- GAAP net loss and comprehensive loss of $90.7 million for the three March 31, 2023, compared to a GAAP net loss and
comprehensive loss of $125.4 million
for the three March 31, 2022. The
GAAP net loss and comprehensive loss for the three months ended
March 31, 2023 included a gain of
$2.5 million on the fair value change
of the contingent earnout shares liability.
- Adjusted EBITDA of $(67.1)
million for the three months ended March 31, 2023, compared to $(117.4) million for the three months ended
March 31, 2022.
- Adjusted Net Loss of $72.0
million for the three months ended March 31, 2023, compared to $120.1 million for the three months ended
March 31, 2022.
- GAAP Net Loss per share of $(0.22) for the three months ended March 31, 2023, compared to $(0.54) for the three months ended March 31, 2022.
- Adjusted EPS of $(0.17) for the
three months ended March 31, 2023,
compared to $(0.51) for the three
months ended March 31, 2022.
- Net cash used in operating activities totaled $67.2 million for the three months ended
March 31, 2023, compared to
$120.3 million for the three months
ended March 31, 2022.
- Net cash used in investing activities was $18.4 million during the three months ended
March 31, 2023, compared to
$2.0 million net cash provided by
investing activities during the three months ended March 31, 2022.
Second Quarter 2023 Business Outlook
Based upon our current projections, Canoo expects:
- Operating Expenses (excluding stock-based compensation and
depreciation) of: $40 million to
$60 million
- Capital Expenditures of: $10
million to $20 million
See "Non-GAAP Financial Measures" section herein for an
explanation of Adjusted EBITDA. The Company is unable to provide a
reconciliation for forward-looking guidance of Adjusted EBITDA to
net loss, the most closely comparable GAAP measure, because certain
material reconciling items, such as depreciation and amortization
and interest expense cannot be estimated due to factors outside of
the Company's control and could have a material impact on the
reported results. A reconciliation is not available without
unreasonable effort.
Conference Call Information
Canoo will host a conference call to discuss the results today,
May 15, 2023, at 5:00 PM ET.
To listen to the conference call via telephone dial (877)
407-9169 (U.S.) and (201) 493-6755 (international callers/U.S.
toll) and enter the conference ID number 13738439. To listen to the
webcast, please click here. A telephone replay will be available
until May 29, 2023, at (877) 660-6853
(U.S.) and (201) 612-7415 (international callers/U.S. toll), with
Conference ID number 13738439. To listen to the webcast replay,
please click here.
About Canoo
Canoo's mission is to bring EVs to Everyone. The company has
developed breakthrough electric vehicles that are reinventing the
automotive landscape with bold innovations in design, pioneering
technologies, and a unique business model that spans the full
lifecycle of the vehicle. Distinguished by its experienced team
from leading technology and automotive companies – Canoo has
designed a modular electric platform purpose-built to deliver
maximum vehicle interior space that is customizable across all
owners in the vehicle lifecycle to support a wide range of vehicle
applications for consumers and businesses.
Canoo has teams in California,
Texas, Oklahoma and Arkansas. For more information, please visit
www.canoo.com. For Canoo press materials, please visit
press.canoo.com. For investors, please visit
investors.canoo.com.
First Quarter 2023
Financial Results
|
|
CANOO INC.
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
(in thousands, except
par values)
|
UNAUDITED
|
|
|
March
31, 2023
|
December 31,
2022
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
$
|
6,715
|
$
|
36,589
|
Restricted cash,
current
|
3,725
|
|
3,426
|
Inventory
|
5,105
|
|
2,954
|
Prepaids and other
current
assets
|
11,452
|
|
9,350
|
Total current
assets
|
26,997
|
|
52,319
|
Property and equipment,
net
|
328,907
|
|
311,400
|
Restricted cash,
non-current
|
10,600
|
|
10,600
|
Operating lease
right-of-use
assets
|
38,782
|
|
39,331
|
Deferred warrant
asset
|
50,175
|
|
50,175
|
Deferred battery
supplier
cost
|
30,000
|
|
30,000
|
Other non-current
assets
|
2,655
|
|
2,647
|
Total assets
$
|
488,116
|
$
|
496,472
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
$
|
88,835
|
$
|
103,187
|
Accrued expenses and
other current
liabilities
|
85,945
|
|
63,091
|
Convertible debt,
current
|
—
|
|
34,829
|
Warrant liability,
current
|
|
—
|
|
17,171
|
Total current
liabilities
|
174,780
|
|
218,278
|
Contingent earnout
shares
liability
|
508
|
|
3,013
|
Operating lease
liabilities
|
38,076
|
|
38,608
|
Warrant liability,
non-current
|
23,000
|
|
—
|
Total
liabilities
|
236,364
|
|
259,899
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred stock,
$0.0001 par value; 10,000 authorized, no shares issued and
outstanding at March 31, 2023
and December 31, 2022
|
—
|
|
—
|
Common stock, $0.0001
par value; 1,000,000 and 500,000 authorized as of March 31, 2023
and
December 31, 2022,
respectively; 475,598 and 355,388 issued and outstanding at March
31, 2023 and
December 31, 2022,
respectively
|
47
|
|
35
|
Additional paid-in
capital
|
1,522,260
|
|
1,416,361
|
Accumulated
deficit
|
(1,270,555)
|
|
(1,179,823)
|
Total stockholders'
equity
|
251,752
|
|
236,573
|
Total liabilities
and stockholders'
equity
$
|
488,116
|
$
|
496,472
|
CANOO INC.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
values)
|
UNAUDITED
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
Revenue
|
$
|
—
|
$
|
—
|
|
|
|
|
|
Costs and Operating
Expenses
|
|
|
|
|
Cost of revenue,
excluding depreciation
|
|
—
|
|
—
|
Research and
development expenses, excluding depreciation
|
|
47,104
|
|
82,487
|
Selling, general and
administrative expenses, excluding depreciation
|
|
29,849
|
|
55,621
|
Depreciation
|
|
4,575
|
|
2,678
|
Total costs and
operating expenses
|
|
81,528
|
|
140,786
|
Loss from
operations
|
|
(81,528)
|
|
(140,786)
|
|
|
|
|
|
Other (expense)
income
|
|
|
|
|
Interest
(expense)
|
|
(296)
|
|
(29)
|
Gain on fair value
change in contingent earnout shares liability
|
|
2,505
|
|
15,465
|
Gain on fair value
change in warrant liability
|
|
17,342
|
|
—
|
Loss on extinguishment
of debt
|
|
(26,739)
|
|
—
|
Other (expense),
net
|
|
(2,016)
|
|
(17)
|
Loss before income
taxes
|
|
(90,732)
|
|
(125,367)
|
Provision for income
taxes
|
|
—
|
|
—
|
Net loss and
comprehensive loss
|
$
|
(90,732)
|
$
|
(125,367)
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
|
(0.22)
|
$
|
(0.54)
|
|
|
|
|
|
Weighted-average
shares outstanding, basic and diluted
|
|
418,064
|
|
233,661
|
CANOO INC.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
UNAUDITED
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(90,732)
|
$
|
(125,367)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
|
4,575
|
|
2,678
|
Non-cash operating
lease expense
|
|
821
|
|
439
|
Stock-based
compensation expense
|
|
9,836
|
|
20,680
|
Gain on fair value
change of contingent earnout shares liability
|
|
(2,505)
|
|
(15,465)
|
Gain on fair value
change in warrants liability
|
|
(17,342)
|
|
—
|
Loss on extinguishment
of debt
|
|
26,739
|
|
—
|
Non-cash interest
expense
|
|
503
|
|
—
|
Non-cash offering cost
associated with the warrant liability
|
|
800
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
|
Inventory
|
|
(2,151)
|
|
—
|
Prepaid expenses and
other current assets
|
|
(2,102)
|
|
(998)
|
Other
assets
|
|
(8)
|
|
(1,176)
|
Accounts payable,
accrued expenses and other current liabilities
|
|
4,350
|
|
(1,128)
|
Net cash used in
operating activities
|
|
(67,216)
|
|
(120,337)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
|
(18,435)
|
|
(28,442)
|
Return of prepayment
from VDL Nedcar
|
|
—
|
|
30,440
|
Net cash (used in)
provided by investing activities
|
|
(18,435)
|
|
1,998
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Withholding for
employee stock purchase plan
|
|
—
|
|
1,174
|
Repurchase of unvested
shares
|
|
—
|
|
(3)
|
Payment of offering
costs
|
|
(275)
|
|
(100)
|
Proceeds from the
purchase of shares and warrants by VDL Nedcar
|
|
—
|
|
8,400
|
Proceeds from employee
stock purchase plan
|
|
389
|
|
—
|
Proceeds from issuance
of shares under SPA
|
|
50,961
|
|
—
|
Payment of issuance
costs related to warrant liability
|
|
—
|
|
—
|
Proceeds from
PPA
|
|
5,001
|
|
—
|
Net cash provided by
financing activities
|
|
56,076
|
|
9,471
|
Net decrease in cash,
cash equivalents, and restricted cash
|
|
(29,575)
|
|
(108,868)
|
|
|
|
|
|
Cash, cash
equivalents, and restricted cash
|
|
|
|
|
Cash, cash equivalents,
and restricted cash, beginning of period
|
|
50,615
|
|
227,492
|
Cash, cash equivalents,
and restricted cash, end of period
|
$
|
21,040
|
$
|
118,624
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the condensed
consolidated balance sheets
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
|
6,715
|
$
|
104,926
|
Restricted cash,
current at end of period
|
|
3,725
|
|
3,448
|
Restricted cash,
non-current at end of period
|
$
|
10,600
|
$
|
10,250
|
Total cash, cash
equivalents, and restricted cash at end of period shown in the
condensed consolidated statements of cash flows
|
$
|
21,040
|
$
|
118,624
|
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted
Earnings Per Share ("EPS")
"EBITDA" is defined as net loss before interest expense, income
tax expense or benefit, and depreciation and amortization.
"Adjusted EBITDA" is defined as EBITDA adjusted for stock-based
compensation, restructuring charges, asset impairments, non-routine
legal fees, and other costs associated with exit and disposal
activities, acquisition and related costs, changes to the fair
value of contingent earnout shares liability, changes to the fair
value of warrants liability, loss on extinguishment of debt, and
any other one-time non-recurring transaction amounts impacting the
statement of operations during the year. Adjusted Net Loss is
defined as net loss adjusted for stock-based compensation,
restructuring charges, asset impairments, non-routine legal fees,
and other costs associated with exit and disposal activities,
acquisition and related costs, changes to the fair value of
contingent earnout shares liability, changes to the fair value of
warrants liability, loss on extinguishment of debt, and any other
one-time non-recurring transaction amounts impacting the statement
of operations during the year. Adjusted EPS is defined as Adjusted
Net Loss on a per share basis using the weighted average shares
outstanding.
EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS are
intended as a supplemental measure of our performance that is
neither required by, nor presented in accordance with, GAAP. We
believe EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted
EPS when combined with net loss and net loss per share are
beneficial to an investor's complete understanding of our operating
performance. We believe that the use of EBITDA, Adjusted EBITDA,
Adjusted Net Loss, and Adjusted EPS provides an additional tool for
investors to use in evaluating ongoing operating results and trends
and in comparing our financial measures with those of comparable
companies, which may present similar non-GAAP financial measures to
investors. However, you should be aware that when evaluating
EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS we may
incur future expenses similar to those excluded when calculating
these measures. In addition, our presentation of these measures
should not be construed as an inference that our future results
will be unaffected by unusual or non-recurring items. Our
computation of EBITDA, Adjusted EBITDA, Adjusted Net Loss, and
Adjusted EPS may not be comparable to other similarly titled
measures computed by other companies, because all companies may not
calculate EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted
EPS in the same fashion.
Because of these limitations, EBITDA, Adjusted EBITDA Adjusted
Net Loss, and Adjusted EPS should not be considered in isolation or
as a substitute for performance measures calculated in accordance
with GAAP. We manage our business utilizing EBITDA, Adjusted
EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental
performance measures.
CANOO INC.
|
|
NON GAAP RECONCILIATION
TABLE (in thousands)
|
|
These non-GAAP
financial measures are reconciled to the most closely comparable
U.S. GAAP measure below:
|
|
|
Three Months Ended
March 31,
|
|
|
|
2023
|
2022
|
|
EBITDA
|
Adjusted
EBITDA
|
Adjusted
Net Loss
|
EBITDA
|
Adjusted
EBITDA
|
|
Adjusted
Net Loss
|
Net loss
|
$
|
(90,732)
|
(90,732)
|
(90,732)
|
$ (125,367)
|
$ (125,367)
|
$
|
(125,367)
|
Interest expense
(income)
|
|
296
|
296
|
—
|
29
|
29
|
|
—
|
Provision for income
taxes
|
|
—
|
—
|
—
|
—
|
—
|
|
—
|
Depreciation
|
|
4,575
|
4,575
|
—
|
2,678
|
2,678
|
|
—
|
Gain on fair value
change in contingent earnout shares liability
|
|
—
|
(2,505)
|
(2,505)
|
—
|
(15,465)
|
|
(15,465)
|
Gain on fair value
change in warrants liability
|
|
—
|
(17,342)
|
(17,342)
|
—
|
—
|
|
—
|
Loss on extinguishment
of debt
|
|
—
|
26,739
|
26,739
|
—
|
—
|
|
—
|
Other expense (income),
net
|
|
—
|
2,016
|
2,016
|
—
|
17
|
|
17
|
Stock-based
compensation
|
|
—
|
9,836
|
9,836
|
—
|
20,680
|
|
20,680
|
Adjusted Non-GAAP
amount
|
|
(85,861)
|
(67,117)
|
(71,988)
|
(122,660)
|
(117,428)
|
|
(120,135)
|
|
|
|
|
|
|
|
|
|
US GAAP net loss per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
N/A
|
N/A
|
(0.22)
|
N/A
|
N/A
|
|
(0.54)
|
Diluted
|
|
N/A
|
N/A
|
(0.22)
|
N/A
|
N/A
|
|
(0.54)
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
net loss per share (Adjusted EPS):
|
|
|
|
|
|
|
|
|
Basic
|
|
N/A
|
N/A
|
(0.17)
|
N/A
|
N/A
|
|
(0.51)
|
Diluted
|
|
N/A
|
N/A
|
(0.17)
|
N/A
|
N/A
|
|
(0.51)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
N/A
|
N/A
|
418,064
|
N/A
|
N/A
|
$
|
233,661
|
Diluted
|
|
N/A
|
N/A
|
418,064
|
N/A
|
N/A
|
$
|
233,661
|
Forward-Looking Statements
The information in 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.
Forward-looking statements may be identified by the use of words
such as "estimate," "plan," "project," "forecast," "intend,"
"will," "expect," "anticipate," "believe," "seek," "target" or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding access to capital, estimates and forecasts of
financial and performance metrics, expectations and timing related
to commercial product launches and the achievement of operational
milestones, including the ability to meet and/or accelerate
anticipated production timelines, Canoo's ability to capitalize on
commercial opportunities, current or anticipated customer orders,
and expectations regarding the development of facilities. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of Canoo's management and are not predictions of actual
performance. These forward-looking statements are provided for
illustrative purposes only and are not intended to serve as, and
must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and will differ from assumptions. Many actual
events and circumstances are beyond the control of Canoo. These
forward-looking statements are subject to a number of risks and
uncertainties, including changes in domestic and foreign business,
market, financial, political and legal conditions; Canoo's ability
to continue as a going concern; Canoo's ability to access existing
and future sources of capital via debt or equity markets, which
will impact execution of its business plans and could require Canoo
to terminate or significantly curtail its operations; Canoo's
history of losses; Canoo's ability to adequately control the costs
associated with its operations; Canoo's ability to successfully
build and tool its manufacturing facilities, establish or continue
a relationship with a contract manufacturer or failure of operation
of Canoo's facilities ; the rollout of Canoo's business and the
timing of expected business milestones and commercial launch;
future market adoption of Canoo's offerings; risks related to
Canoo's go-to-market strategy and manufacturing strategy; the
effects of competition on Canoo's future business, and those
factors discussed under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in Canoo's Annual Report on Form 10-K for
the fiscal year ended December 31,
2022 filed with the U.S. Securities and Exchange Commission
(the "SEC") on March 30, 2023, as
well as its past and future Quarterly Reports on Form 10-Q and
other filings with the SEC, copies of which may be obtained by
visiting Canoo's Investors Relations website at investors.canoo.com
or the SEC's website at www.sec.gov. If any of these risks
materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by these
forward-looking statements. There may be additional risks that
Canoo does not presently know or that Canoo currently believes are
immaterial that could also cause actual results to differ from
those contained in the forwardlooking statements. In addition,
forward-looking statements reflect Canoo's expectations, plans or
forecasts of future events and views as of the date of this press
release. Canoo anticipates that subsequent events and developments
will cause Canoo's assessments to change. However, while Canoo may
elect to update these forward-looking statements at some point in
the future, Canoo specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing Canoo's assessments as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
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SOURCE Canoo