ElectraMeccanica Reports Third Quarter 2019 Financial Results
09 November 2019 - 8:05AM
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("ElectraMeccanica"
or the "Company"), a designer and manufacturer of electric
vehicles, today reported its financial results for the third
quarter ended September 30, 2019.
Recent Company Highlights:
- Took delivery of 50 pilot production vehicles from China for on
road validation testing throughout the United States and
Canada.
- Established EMV Automotive Technology, Inc. (Chongqing), a
wholly-owned subsidiary for in-country operations in China,
providing a greater presence throughout the massive Chinese
market.
- Entered into an agreement with FreedomRoad Financial, a
national lending institution providing retail vehicle loans to the
nation’s leading vehicle manufacturers, to provide consumers with
turnkey vehicle financing solutions for the Company’s flagship
SOLO EV.
- Appointed Peter Savagian as an Independent Director, a pioneer
in automotive electrification with a broad spectrum of expertise in
the technology, development, launch and production of electric
vehicles including the first modern Electric Vehicle, the GM EV1,
the first plug-in hybrid, the Chevy Volt, and the industry’s first
long-range value EV, the Chevy Bolt.
Management Commentary“ElectraMeccanica is in
the final stages of preparation to begin producing and delivering
single-seat EVs that will revolutionize commuting, delivery and
shared mobility,” said Paul Rivera, Chief Executive Officer of
ElectraMeccanica. “To this end, we are concluding final engineering
validation and fine-tuning production at our strategic partner’s
manufacturing facility in China. We expect to begin delivering our
flagship, single-seat SOLO electric vehicle to our
customers in 2020, while ramping production and delivery throughout
the year.
“Looking ahead towards 2020, we will remain steadfast in our
plan to launch the SOLO and position the vehicle
to redefine the commuter experience. Our strategic launch will be
in Los Angeles—a leading location in the U.S. for EV adoption and a
well-known commuter’s nightmare—followed by a broader roll-out
across key markets on the West Coast. We look forward to executing
upon the immense opportunity facing ElectraMeccanica today,”
concluded Rivera.
Third Quarter 2019 Financial Summary
- Total revenue for the three months ended September 30, 2019,
was CAD$0.2 million, compared to revenue of CAD$0.2 million in the
same year-ago quarter.
- Research and development expenses for the three months ended
September 30, 2019 were CAD$3.3 million, compared to CAD$0.9
million in the same year-ago quarter. The increase in research and
development expenses was primarily due to the costs related to
pre-production vehicles that are being expensed to research and
development.
- Operating loss for the three months ended September 30, 2019
was CAD$7.8 million, compared to an operating loss of CAD$3.9
million in the same year-ago quarter.
- Net loss for the three months ended September 30, 2019 was
CAD$5.3 million, compared to a net loss of CAD$2.9 million in the
same year-ago quarter. The increase in net loss was primarily
related to increased general and administrative expenses, stock
compensation and higher R&D costs.
- Cash and cash equivalents and short-term deposits were CAD$16.2
million as of September 30, 2019, compared with CAD$18.9 million as
of December 31, 2018.
- Cash used in operations in the quarter ended September 30, 2019
was CAD$2.8 million, compared with cash used in operations of
CAD$5.0 million in the same year-ago quarter.
“We continue to prudently manage expenses internally,
implementing tight cost controls over operating costs,” said Bal
Bhullar, Chief Financial Officer of ElectraMeccanica. “Today, we
stand in a strong financial position, with over $16 million in cash
and cash equivalents.”
About ElectraMeccanica Vehicles
Corp.ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a
Canadian designer and manufacturer of electric vehicles. The
company’s flagship vehicle is the innovative purpose built,
single-seat electric vehicle called the
SOLO. This vehicle will revolutionize
commuting, delivery and shared mobility. The
SOLO provides a driving experience that is unique,
trendy, fun, affordable and environmentally friendly.
InterMeccanica, a subsidiary of ElectraMeccanica, has successfully
been building high-end specialty cars for 60 years. For more
information, please visit www.electrameccanica.com.
Safe Harbor StatementExcept for the statements
of historical fact contained herein, the information presented in
this news release and oral statements made from time to time by
representatives of the Company are or may constitute
“forward-looking statements” as such term is used in applicable
United States and Canadian laws and including, without limitation,
within the meaning of the Private Securities Litigation Reform Act
of 1995, for which the Company claims the protection of the safe
harbor for forward-looking statements. These statements
relate to analyses and other information that are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans,
“estimates” or “intends”, or stating that certain actions, events
or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved) are not statements of historical fact and
should be viewed as forward-looking statements. Such forward
looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the availability of capital to fund programs
and the resulting dilution caused by the raising of capital through
the sale of shares, accidents, labor disputes and other risks of
the automotive industry including, without limitation, those
associated with the environment, delays in obtaining governmental
approvals, permits or financing or in the completion of development
or construction activities or claims limitations on insurance
coverage. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved. Forward-looking information is subject to certain
risks, trends and uncertainties that could cause actual results to
differ materially from those projected. Many of these factors
are beyond the Company’s ability to control or predict.
Important factors that may cause actual results to differ
materially and that could impact the Company and the statements
contained in this news release can be found in the Company’s
filings with the Securities and Exchange Commission. The
Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. Accordingly, readers should not
place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news
release. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy securities.
Investor Relations:Greg FalesnikManaging
DirectorMZ Group - MZ North America(949)
385-6449SOLO@mzgroup.uswww.mzgroup.us
Media Contact:Sean MahoneyC.
310-867-0670sean@electrameccanica.com
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