Faraday Future Reports Financial Results for Third Quarter 2021
Faraday Future Intelligent Electric (FFIE) announced financial results for Q3 2021, reporting a net loss of $304 million, up from $33 million year-over-year, primarily due to increased operating expenses of $186 million. The company successfully completed a merger, listing publicly with gross proceeds of approximately $1 billion. FFIE is on track to launch the FF 91 by Q3 2022, following significant progress in manufacturing at its Hanford facility. The company has received 401 refundable preorders for the FF 91 and is expanding its workforce to support production.
- Completed merger with PSAC and accessed ~$1 billion in gross proceeds.
- FF 91 production launch anticipated for Q3 2022.
- Received 401 refundable preorders for FF 91.
- Net loss increased to $304 million from $33 million year-over-year.
- Operating expenses surged to $186 million from $18 million in Q3 2020.
– Successfully Completed Public Listing, Securing Gross Proceeds of
– 2,270 Mile Test Drive Confirmed Market-Leading Performance and Technology –
– Hanford Facility Build Out on Track –
– FF 91 Production Launch Expected Q3 2022 –
“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.
COMMENT ON SPECIAL COMMITTEE REVIEW
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
-
Completed its merger with
Property Solutions Acquisition Corp. (“PSAC”), a special purpose acquisition company. FF’s common stock and warrants began trading on NASDAQ under the tickers "FFIE” and “FFIEW”, respectively, onJuly 22, 2021 . -
Completed a 2,270-mile testing and evaluation journey following the historic
Route 66 , a highway that crosses numerousU.S. states as it winds its way fromChicago, Illinois toSanta Monica, California . - Announced its plans to partner with Qmerit, a leader in green energy transformation with the largest nationwide network of certified electrical installers for EV charging stations, to support future FF 91 drivers in need of home charging stations and other future energy-related installations.
-
Hired
Matt Tall as Vice President of Manufacturing.Mr. Tall is responsible for leading all facets of FF’s production and manufacturing, focusing on theHanford, California manufacturing plant, where he oversees the final phases of the plant upgrade, installation of component tooling, hiring, and the production of the FF 91. -
Hired Liu Yuchao as Senior Vice President of Supply Chain for FF’s operations in
China . Mr. Yuchao will help FF take a solid step forward in promoting the production and delivery of the FF 91. - Added new leadership members to its growing team: including Senior Director of Energy Storage and Charging; Head of Software Engineering, ADAS, and Self Driving; Lead of Vehicle Quality.
-
Announced plans to increase its employee headcount significantly over the next 12 months following the merger with PSAC that closed in
July 2021 . Hiring has been focused on filling positions in the areas of manufacturing, engineering, supply chain, design, marketing, brand, sales, finance and accounting, and other areas, along with the potential for higher-level executive positions. -
Hosted the first annual 919 Futurist Day co-creation festival at FF’s Headquarters in
Los Angeles, CA. Hundreds of attendees representing FF users, partners, car enthusiasts as well as global FF employees and family members gathered to celebrate FF’s successes, products, technologies, people, innovation, and user-centric philosophy. -
Outlined major milestones on the path to production for FF’s manufacturing facility in
Hanford, CA , and provided periodic milestone and other progress updates including videos and livestreams on various public media channels and the FF app.
KEY EVENTS SUBSEQUENT TO THIRD QUARTER END
Subsequent to
-
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 allowed 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 now essentially complete, and major mechanical systems, including electrical and plumbing, are being installed. -
Announced program with
Munro & Associates , which will serve as FF’s 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 SOP scheduled for 2024. - Unveiled the first “production-intent” build of the 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 , for online national 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 shall be 126 months, with two five-year tenant extension options. In addition, 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. -
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 .
RESULTS FOR THIRD QUARTER 2021
Operating expenses for the third quarter ended
Cash and cash equivalents were
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
|
||||||||||||||||
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 |
) |
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
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, |
|
13 |
|
|
|
9 |
|
|
Class B Common Stock, |
|
— |
|
|
|
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 |
|
|
||||||||
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 |
|
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005520/en/
Investors: ir@faradayfuture.com
Media: media@faradayfuture.com
Source:
FAQ
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