Fisker Files 10-Q on Nov. 22

Rhea-AI Summary

Fisker Inc. (FSR) filed its Q3 2023 10-Q with the SEC after delays due to personnel changes, internal control weaknesses, and increased business complexity. The company is focusing on scaling its infrastructure, expanding its finance and accounting team, and improving its sales and delivery strategy to support rapid growth in vehicle production and global deliveries.

Positive

• Filing of Q3 2023 10-Q with the SEC, indicating compliance with regulatory requirements
• Over 70% growth in total current assets from Q2 to Q3, reflecting significant business expansion
• Expansion of finance and accounting team with experienced professionals to support global growth
• Improvement in sales and delivery strategy, resulting in a new daily delivery record of 107 vehicles

Negative

• Delays in filing Q3 2023 earnings and 10-Q due to personnel changes, internal control weaknesses, and increased business complexity
• Identification of approximately $20 million of expenses related to production set-up activities, impacting net loss
• Change in internal delivery team set up and process may pose implementation challenges

• Fisker filed its Q3 2023 10-Q on Wednesday, Nov. 22.
• Fisker’s Q3 2023 earnings and 10-Q filing were delayed by personnel changes, identification of material weaknesses in internal controls, increased complexity from the company’s compressed and rapid growth in vehicle production, global deliveries, and revenue generation.
• Finance and Accounting resources expand.
• Fisker has made a strategic shift to improve the pace of deliveries in the US and Europe.

LOS ANGELES--(BUSINESS WIRE)-- Fisker Inc. (NYSE: FSR) (“Fisker”), driven by a mission to create the world’s most emotional and sustainable electric vehicles, today announced that it filed its Q3 2023 10-Q with the Securities and Exchange Commission. The company also announced changes to its finance and accounting leadership team.

“We are a growth company with innovative design and strong market appeal. There was a series of events that led to us filing late,” Chairman and CEO Henrik Fisker said. “We are committed to developing the infrastructure required to support our rapid expansion. With accelerating revenue growth, it is critical that we provide accurate and timely financial information to our shareholders. In order to achieve these objectives, we are scaling our systems, processes and people to match our high-quality vehicles and will redouble these efforts moving forward to advance sustainable growth.

“I am 100% dedicated to execute on our business plan, mature our organization, and drive long-term shareholder value. Our team is working day and night to deliver and sell even more vehicles,” continued Fisker.

Delays to Fisker’s Q3 2023 Earnings and Subsequent 10-Q Filing

Fisker’s Q3 2023 earnings and 10-Q filing were delayed earlier this month due to accounting personnel changes, material adjustments to financial information, identification of material weaknesses in internal controls, and increased business complexity and transactional volume, which collectively impacted the company’s financial close for the third quarter. Subsequent to the release of our preliminary earnings results on November 13, 2023, we identified approximately $20 million of expenses that were related to services performed after the start of production of salable vehicles. The expenses were incorrectly recorded primarily as selling, general and administrative expenses in our preliminary earnings results, but were later determined to be associated with production set-up activities and are now appropriately reflected in cost of revenues. Additionally, other inventory adjustments were recorded resulting in a $4.0 million increase in net loss subsequent to the preliminary earnings results. No material prior period misstatements were identified. With today’s filing of the 10-Q, Fisker is now current with the NYSE Listed Company Manual.

Expanding Finance Team Resources and Expertise to Support Global Growth

Total current assets grew by over 70% from the second quarter to the third quarter, significantly increasing the volume of transactions that required detailed analysis and reconciliation after the end of the quarter. Fisker is bolstering its finance and accounting resources and broadening its leadership teams to support business growth. Eric Sand, recently promoted to Corporate Controller, brings over two decades of finance and accounting experience managing complex processes and systems. In addition, Dan Quirk joins Fisker as Executive Vice President, Finance and Accounting. Dan joins Fisker after a 30+ year career with Ernst & Young LLP, where he spent the last 18 years as an Assurance Partner within the firm’s Advanced Manufacturing & Mobility practice. Across his seasoned career, he helped a variety of Fortune 500 and emerging growth companies with strategies to improve business and financial performance across controls, processes, long-term profitability, and strategic planning. Fisker will continue to invest in its people, processes, and technology to be an enabler of business growth.

New sales and deliveries strategy

Fisker has also reorganized its sales and delivery strategy. The company opened several new facilities in the past few weeks, including two locations in New York and one in California and expects to open several more facilities throughout the rest of the year. The company also changed the internal delivery team set up and process to expedite sales and deliveries. Fisker is also improving its logistics capabilities to transport vehicles from the manufacturing facility in Austria to markets in North America. In Europe, Fisker started delivering vehicles in two new countries in the past few weeks, after having already delivered most of the Ocean One’s sold in Europe and commencing deliveries of the Extreme trim. Last week, Fisker reported a new daily delivery record of 107 vehicles, up more than 120% from a month earlier. Overall, Fisker can now see that its delivery strategy is working and the company is ready to scale.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by designing and developing individual mobility in alignment with nature. Passionately driven by a vision of a clean future for all, the company is on a mission to create the world’s most sustainable and emotional electric vehicles. To learn more, visit Fiskerinc.com and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, Twitter, YouTube, and LinkedIn.

Download the revolutionary new Fisker mobile app from the App Store or Google Play .

Forward-Looking Statements

This press release includes forward-looking statements, which are subject to the "safe harbor" provisions of the US Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "feel," "believes," expects," "estimates," "projects," "intends," "should," "is to be," or the negative of such terms, or other comparable terminology and include, among other things, the quotation of our CEO, the statements regarding the planned launch timing, pricing, delivery, production, and estimated range of the Fisker Ocean, the planned timing of the opening of Fisker facilities, the Company's future performance, expansion of operations, software updates, and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker's limited operating history; Fisker's ability to enter into additional manufacturing and other contracts with Magna or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed-upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker's ability to execute its business model, including market acceptance of its planned products and services; Fisker's inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker's inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker's Annual Report on Form 10-K, under the heading "Risk Factors", filed with the Securities and Exchange Commission (the "SEC"), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231122273103/en/

European Media:

Press.europe@fiskerinc.com

US Media

Fisker@GODRIVEN360.com

Customer service: Support@fiskerinc.com

Fisker Inc. Communications:

Matthew DeBord

Sr Director, Communications Strategy & Storytelling

mdebord@fiskerinc.com

Franziska Queling

Regional Head of Public Relations Europe

fqueling@fiskerinc.com

Investor Relations:

Frank Boroch, VP of Investor Relations

fboroch@fiskerinc.com

Source: Fisker Inc.

FAQ

Why were Fisker's Q3 2023 earnings and 10-Q filing delayed?

The delays were due to accounting personnel changes, material adjustments to financial information, identification of internal control weaknesses, and increased business complexity.

What is Fisker's ticker symbol?

Fisker's ticker symbol is FSR on the NYSE.

What were the positive aspects of Fisker's Q3 2023 performance?

Fisker saw over 70% growth in total current assets, indicating significant business expansion. The company also achieved a new daily delivery record of 107 vehicles.

What were the negative aspects of Fisker's Q3 2023 performance?

The delays in filing Q3 2023 earnings and 10-Q, identification of $20 million of expenses related to production set-up activities, and changes in the internal delivery team set up and process were the negative aspects.

How is Fisker addressing the delays and challenges in its Q3 2023 performance?

Fisker is focusing on scaling its infrastructure, expanding its finance and accounting team, and improving its sales and delivery strategy to support rapid growth in vehicle production and global deliveries.