Faraday Future Reports Financial Results for Fourth Quarter and Full Year 2021
Faraday Future Intelligent Electric (NASDAQ: FFIE) reported its Q4 and full-year 2021 results, revealing a net loss of $517 million, a significant increase from $147 million in 2020. Operating expenses surged to $354 million, driven by engineering and employee costs. Despite challenges, progress was made at the Hanford manufacturing facility, with production set to start in Q3 2022. The company signed a deal with Myoung Shin for FF 81 production in South Korea and secured a dealer license for national online sales. Cash was $505 million as of December 31, 2021, decreasing to $276 million by March 31, 2022.
- Expected production launch of FF 91 in Q3 2022.
- Secured production agreement with Myoung Shin for FF 81 in South Korea.
- Received dealer license for national online vehicle sales.
- Completed installation of pilot equipment at Hanford facility.
- Net loss of $517 million for 2021, up from $147 million in 2020.
- Operating expenses increased to $354 million due to various costs.
- Cash decreased from $505 million to $276 million by March 31, 2022.
– Continued Progress at Hanford Manufacturing Facility –
– Launch of Community Outreach and Jobs Fair for Hanford Hiring Program –
– Announcement of
– Additional Tier 1 Supplier Announcements –
“We made significant progress during the fourth quarter with several important milestones reached at our
COMMENT ON SPECIAL COMMITTEE REVIEW
KEY COMPANY HIGHLIGHTS DURING FOURTH QUARTER 2021
Faraday Future continues to make progress toward launch of the FF 91 in third quarter 2022 and toward its long-term business plan, making the following announcements during the fourth quarter:
-
Completed the installation of pilot equipment in the pre-production build area of its
Hanford, California facility. TheHanford manufacturing facility is approximately 1.1 million square feet and, once it is built out, is expected to have the capacity to support production of 10,000 vehicles per year. Based on the current timeline, FF management anticipates production at theHanford facility will commence in the third quarter of 2022. -
Received its final Certificate of Occupancy (“CO”) for a dedicated area for pre-production manufacturing at the facility in
Hanford, California . The CO allows FF to begin crucial construction activities, including the building of additional pre-production vehicles at the facility. -
Started foundation construction for all remaining production areas in the
Hanford facility, including body, propulsion, warehouse, and vehicle assembly. Interior foundation work in the production area is essentially complete, and major mechanical systems, including electrical and plumbing, are being installed. -
Announced program with
Munro & Associates , which will serve as an FF co-creation consultant and will assist with the production-readiness process of the FF 91 through comparative analysis and quality assessment. -
Held a Community Day and Job Fair at the
Hanford Civic Auditorium onNovember 3, 2021 , andNovember 10, 2021 , respectively. - Announced HSL Italia as Exterior Lighting Supplier. HSL Italia will work with the Company throughout the production process to ensure a premium and innovative exterior lighting display.
Subsequent to
-
Announced that
Myoung Shin Co., Ltd. , an automotive manufacturer headquartered inSouth Korea , has been contracted to manufacture Faraday Future’s second vehicle, the FF 81, with start of production scheduled for 2024. - Unveiled the first production-intent FF 91. This marks Faraday Future’s manufacturing Milestone #4, pre-production builds for final engineering validation and certification, now referred to as production-intent vehicles.
-
Received dealer and distributor license from the
State of California , allowing national online sales. -
Signed the lease for FF’s flagship store in
Beverly Hills, California , and confirmed the design firm for the store. The initial term of the lease is 126 months, with two five-year tenant extension options. Further, FF announced the active search for a second flagship store in theU.S. -
Appointed
Susan Swenson as Executive Chairperson andJordan Vogel as Lead Independent Director of the Board of Directors. FF’s Board of Directors consists of nine directors, five of whom are independent under applicable rules. -
Announced that
Mathias Hofmann became the new Head of Global Supply Chain after the retirement ofBenedikt Hartmann effectiveFebruary 25, 2022 . Mathias comes to FF after a nearly 30-year career with BMW, where he served as a Vice President with global responsibilities in purchasing and plant management. He has worked on four continents, includingChina , and was most recently Plant Director inBrazil . He has extensive experience in both plant operations and direct and indirect purchasing. -
Appointed
Becky Roof as Interim Chief Financial Officer (CFO) and engaged an affiliate ofAlixPartners to accelerate the implementation of Special Committee recommendations including, but not limited to, financial controls and material weakness remediation.Ms. Roof is a seasoned financial executive who has served in an interim CFO capacity at numerous public and private companies. -
Completed additional investigation work of the Special Committee and implemented additional remediation actions as recommended by the Special Committee. The findings and remediation actions are summarized in our Form 10-K filed today with the
Securities and Exchange Commission (the “SEC”), and available on our website. -
Announced 401 preorders as of
March 31, 2022 . Preorders are fully refundable, non-binding, paid deposits for the FF 91 Futurist Alliance Edition and/or the FF 91 Futurist vehicles available initially for sale to customers in the US andChina . FF 91 Futurist Alliance Edition preorders require a deposit for customers in the US and an$5,000 RMB 50,000 deposit for customers inChina . FF 91 Futurist preorders require a deposit for customers in the US and an$1,500 RMB 20,000 deposit for customers inChina . -
Marked Production Milestone #5 at its
Hanford, California manufacturing facility, with the start of installation of all mechanical, electrical, and plumbing systems to support equipment installation.
RESULTS FOR FOURTH QUARTER 2021 AND FULL YEAR 2021
Operating expenses for the year ended
Net loss was
Cash was
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
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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
Consolidated Balance Sheets – (Unaudited)
(in thousands, except share and per share data) |
|||||||
|
|||||||
|
2021 |
|
2020 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash |
$ |
505,091 |
|
|
$ |
1,124 |
|
Restricted cash |
|
25,386 |
|
|
|
703 |
|
Deposits |
|
63,370 |
|
|
|
6,412 |
|
Other current assets |
|
13,410 |
|
|
|
6,200 |
|
Total current assets |
|
607,257 |
|
|
|
14,439 |
|
Property and equipment, net |
|
293,135 |
|
|
|
293,933 |
|
Other non-current assets |
|
7,040 |
|
|
|
8,010 |
|
Total assets |
$ |
907,432 |
|
|
$ |
316,382 |
|
Liabilities and stockholders’ equity (deficit) |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
37,773 |
|
|
$ |
86,601 |
|
Accrued expenses and other current liabilities |
|
90,512 |
|
|
|
52,382 |
|
Related party accrued interest |
|
11,231 |
|
|
|
82,260 |
|
Accrued interest |
|
8,263 |
|
|
|
36,030 |
|
Related party notes payable |
|
13,655 |
|
|
|
332,355 |
|
Notes payable, current portion |
|
132,372 |
|
|
|
149,199 |
|
Vendor payables in trust |
|
— |
|
|
|
110,224 |
|
Total current liabilities |
|
293,806 |
|
|
|
849,051 |
|
Capital leases, less current portion |
|
7,570 |
|
|
|
36,501 |
|
Other liabilities, less current portion |
|
3,720 |
|
|
|
1,000 |
|
Notes payable, less current portion |
|
34,682 |
|
|
|
9,168 |
|
Total liabilities |
|
339,778 |
|
|
|
895,720 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity (deficit) |
|
|
|
||||
Class A Common Stock, |
|
17 |
|
|
|
9 |
|
Class B Common Stock, |
|
— |
|
|
|
6 |
|
Additional paid-in capital |
|
3,482,226 |
|
|
|
1,817,760 |
|
Accumulated other comprehensive loss |
|
(6,945 |
) |
|
|
(5,974 |
) |
Accumulated deficit |
|
(2,907,644 |
) |
|
|
(2,391,139 |
) |
Total stockholders’ equity (deficit) |
|
567,654 |
|
|
|
(579,338 |
) |
Total liabilities and stockholders’ equity (deficit) |
$ |
907,432 |
|
|
$ |
316,382 |
|
Consolidated Statements of Operations– (Unaudited)
Years Ended (in thousands, except share and per share data) |
|||||||
|
|
2021 |
|
|
|
2020 |
|
Operating expenses |
|
|
|
||||
Research and development |
$ |
174,935 |
|
|
$ |
20,186 |
|
Sales and marketing |
|
17,118 |
|
|
|
3,672 |
|
General and administrative |
|
97,905 |
|
|
|
41,071 |
|
Loss on disposal of property and equipment |
|
64,191 |
|
|
|
10 |
|
Total operating expenses |
|
354,149 |
|
|
|
64,939 |
|
|
|
|
|
||||
Loss from operations |
|
(354,149 |
) |
|
|
(64,939 |
) |
Change in fair value measurements |
|
(22,700 |
) |
|
|
(5,076 |
) |
Interest expense |
|
(30,181 |
) |
|
|
(32,173 |
) |
Related party interest expense |
|
(16,663 |
) |
|
|
(41,546 |
) |
Other expense, net |
|
(5,668 |
) |
|
|
(5,455 |
) |
(Loss) gain at settlement of related party notes payable, notes payable, and vendor payables in trust, net |
|
(86,904 |
) |
|
|
2,107 |
|
Loss before income taxes |
|
(516,265 |
) |
|
|
(147,082 |
) |
Income tax provision |
|
(240 |
) |
|
|
(3 |
) |
Net loss |
$ |
(516,505 |
) |
|
$ |
(147,085 |
) |
|
|
|
|
||||
Per share information: |
|
|
|
||||
Net loss per Common Stock – Class A and Class B – basic and diluted |
$ |
(2.21 |
) |
|
$ |
(0.94 |
) |
Weighted average Common Stock outstanding – Class A and Class B – basic and diluted |
|
233,390,675 |
|
|
|
157,063,103 |
|
|
|
|
|
||||
Total comprehensive loss |
|
|
|
||||
Net loss |
$ |
(516,505 |
) |
|
$ |
(147,085 |
) |
Change in foreign currency translation adjustment |
|
(971 |
) |
|
|
(2,690 |
) |
Total comprehensive loss |
$ |
(517,476 |
) |
|
$ |
(149,775 |
) |
Consolidated Statements of Cash Flows – (Unaudited)
Years Ended (in thousands) |
||||||||
|
|
|
2021 |
|
|
|
2020 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(516,505 |
) |
|
$ |
(147,085 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
||||
Depreciation and amortization expense |
|
|
8,158 |
|
|
|
3,517 |
|
Stock-based compensation |
|
|
11,345 |
|
|
|
9,505 |
|
Vesting of restricted stock awards for employee bonus |
|
|
18,617 |
|
|
|
— |
|
Loss on disposal of property and equipment |
|
|
64,191 |
|
|
|
10 |
|
Change in fair value measurements |
|
|
22,700 |
|
|
|
5,076 |
|
Loss upon cancellation of a lease |
|
|
— |
|
|
|
206 |
|
(Gain) loss on foreign exchange |
|
|
(845 |
) |
|
|
4,108 |
|
Gain on forgiveness of accounts payable and loss on write-off of vendor deposits, net |
|
|
(7,005 |
) |
|
|
— |
|
Non-cash interest expense |
|
|
41,014 |
|
|
|
66,020 |
|
Loss (gain) at settlement of related party notes payable, notes payable, and vendor payables in trust, net |
|
|
86,904 |
|
|
|
(2,107 |
) |
Gain on forgiveness of vendor payables in trust |
|
|
(1,731 |
) |
|
|
— |
|
Reserve for unrecoverable value added taxes |
|
|
6,404 |
|
|
|
— |
|
Other |
|
|
842 |
|
|
|
— |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Deposits |
|
|
(48,503 |
) |
|
|
— |
|
Other current and non-current assets |
|
|
(21,717 |
) |
|
|
(3,347 |
) |
Accounts payable |
|
|
(36,625 |
) |
|
|
11,500 |
|
Accrued expenses and other current liabilities |
|
|
31,824 |
|
|
|
11,606 |
|
Transfers between vendor payables in trust and accounts payable |
|
|
1,167 |
|
|
|
(174 |
) |
Net cash used in operating activities |
|
|
(339,765 |
) |
|
|
(41,165 |
) |
Cash flows from investing activities |
|
|
|
|
||||
Payments for property and equipment |
|
|
(95,681 |
) |
|
|
(607 |
) |
Proceeds from payments on notes receivable |
|
|
— |
|
|
|
3,600 |
|
Net cash (used in) provided by investing activities |
|
|
(95,681 |
) |
|
|
2,993 |
|
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 |
|
|
|
10,556 |
|
Proceeds from notes payable, net of original issuance discount |
|
|
172,031 |
|
|
|
40,595 |
|
Payments of related party notes payable |
|
|
(38,217 |
) |
|
|
(3,589 |
) |
Payments of notes payable, including liquidation premiums |
|
|
(48,210 |
) |
|
|
(32 |
) |
Payments of notes payable issuance costs |
|
|
(3,355 |
) |
|
|
(4,562 |
) |
Payment of payables in vendor payables in trust |
|
|
(27,722 |
) |
|
|
(4,500 |
) |
Transfers between vendor payables in trust and accounts payable |
|
|
(1,167 |
) |
|
|
174 |
|
Payments of capital lease obligations |
|
|
(3,212 |
) |
|
|
(1,926 |
) |
Proceeds from exercise of stock options |
|
|
10,587 |
|
|
|
115 |
|
Payments of stock issuance costs |
|
|
(1,071 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
966,569 |
|
|
|
36,831 |
|
Effect of exchange rate changes on cash and restricted cash |
|
|
(2,473 |
) |
|
|
(186 |
) |
Net increase (decrease) in cash and restricted cash |
|
|
528,650 |
|
|
|
(1,527 |
) |
Cash and restricted cash, beginning of period |
|
|
1,827 |
|
|
|
3,354 |
|
Cash and restricted cash, end of period |
|
$ |
530,477 |
|
|
$ |
1,827 |
|
Consolidated Statements of Cash Flows — (Unaudited)
Years Ended (in thousands) |
||||||
The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that aggregate to the total of the same such amounts shown in the Consolidated Statements of Cash Flows: |
||||||
|
|
2021 |
|
2020 |
||
Cash |
|
$ |
1,124 |
|
$ |
2,221 |
Restricted cash |
|
|
703 |
|
|
1,133 |
Total cash and restricted cash, beginning of period |
|
$ |
1,827 |
|
$ |
3,354 |
|
|
|
|
|
||
Cash |
|
$ |
505,091 |
|
$ |
1,124 |
Restricted cash |
|
|
25,386 |
|
|
703 |
Total cash and restricted cash, end of period |
|
$ |
530,477 |
|
$ |
1,827 |
|
|
|
|
|
||
Supplemental disclosure of noncash investing and financing activities |
|
|
|
|
||
Conversion of related party notes payable and related party accrued interest to Class A Common Stock |
|
$ |
294,796 |
|
$ |
— |
Conversion of notes payable and accrued interest to Class A Common Stock |
|
|
98,375 |
|
|
— |
Issuance of warrants |
|
|
17,596 |
|
|
490 |
Conversion of assumed convertible and promissory notes payable to Class A Common Stock and Private Warrants |
|
|
1,080 |
|
|
— |
Conversion of The9 Conditional Obligation to Class A Common Stock |
|
|
2,863 |
|
|
— |
Additions of property and equipment included in accounts payable and accrued expenses |
|
|
863 |
|
|
3,817 |
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 payable in trust to a commitment to issue Class A Common Stock |
|
|
96,186 |
|
|
— |
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 |
|
$ |
6,317 |
|
$ |
3,137 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220513005516/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: media@faradayfuture.com
Source:
FAQ
What were Faraday Future's financial results for Q4 2021?
When is FF 91 expected to launch?
What is the cash position of Faraday Future as of March 31, 2022?
What is the significance of the dealer license received by Faraday Future?