Lordstown Motors is among the startups (Rivian, Canoo) promising electric pickups that can compete with the current titans in the truck world, but an update today shows that the company’s future is in doubt. New York Times reports a submission to the SEC, which shows the company’s ability to move forward as the existing plant is at risk simply because it does not currently have enough money to start production of the Endurance electric truck.
The Company has cash and cash equivalents of approximately $ 587.0 million and an accumulated deficit of $ 259.7 million as of March 31, 2021and a net loss of $ 125.2 million for the quarter ended March 31, 2021. , Endurance, electric pickup in full size. The company’s ability to continue as a going concern depends on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial-scale production, and begin selling such vehicles. The company believes that the current level of cash and cash equivalents is not sufficient to finance commercial-scale production and start selling such vehicles. These conditions cast significant doubt on our ability to continue to operate for at least one year from the date of issue of these unaudited condensed consolidated financial statements.
To alleviate these conditions, management is currently evaluating various financing alternatives and may seek to raise additional funds by issuing shares, mezzanines or debt securities, through agreements with strategic partners or by obtaining credit from government or financial institutions. While we are looking for additional sources of funding, there can be no guarantee that such funding will be available to us on favorable terms or at all. Our ability to obtain additional financing in the debt and equity markets depends on several factors, including market and economic conditions, our performance and investor sentiment towards us and our industry.
The company went public in October through a maneuver known as SPAC, a special acquisition company, and recently warned investors it could be removed from the list due to missing a filing deadline. The plan was to sell his truck to the business, but with electric pickups coming from Ford and others, it will become increasingly difficult to compete, assuming Endurance enters the market in the first place.
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