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LOS ANGELES--(BUSINESS WIRE)-- Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) ("FF”, “Faraday Future”, or “the Company"), a California-based global shared intelligent electric mobility ecosystem company, today announced financial results for its fourth quarter and full-year ended December 31, 2021. Results were delayed as a result of the previously disclosed Special Committee review.
“We made significant progress during the fourth quarter with several important milestones reached at our Hanford manufacturing plant and new Tier 1 supplier and partner agreements. In a challenging logistics and supply chain environment, we are working closely with our partners and remain on track for launch in Q3 2022,” said Carsten Breitfeld, Global CEO of Faraday Future.
Dr. Breitfeld continued, “After 2021 year-end we signed an agreement with Myoung Shin for FF 81 production in South Korea, securing our path to high volume production and cash flow breakeven. We also received our dealer license from the State of California, allowing us to sell our cars online nationally. We remain confident that we will launch the FF 91 in the third quarter of 2022, and when we do, we expect Faraday Future to redefine the state-of-the-art in intelligent, electrified mobility.”
COMMENT ON SPECIAL COMMITTEE REVIEW
Dr. Breitfeld added, “The Special Committee, made up of independent Board members, completed its previously announced review of past disclosures and allegations and submitted its findings and recommendations to the full Board. The Board accepted the findings, and implementation of remediation actions is well underway. On behalf of the entire management team, I want to thank the Special Committee, our financial and legal advisors, and my fellow Board members for their hard work and for their commitment to holding the Company to the highest standards of ethics and conduct. I also want to thank all of my fellow employees, our suppliers, and our investors for their support and confidence. I believe that this review and the changes we are making will help make us a better, stronger company.”
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:
Subsequent to December 31, 2021, FF accomplished several major milestones and made a number of organizational changes:
RESULTS FOR FOURTH QUARTER 2021 AND FULL YEAR 2021
Operating expenses for the year ended December 31, 2021, were $354 million compared to $65 million for the year ended December 31, 2020. The increase is primarily due to an increase in engineering, design, and testing (“ED&T”) services as the Company re-engaged suppliers and made significant purchases for ED&T services to progress the manufacturing of the FF 91; a significant increase in headcount and employee related expenses; a sublicensable license to use a platform from Geely Holding; an increase in professional services and legal expense; and a loss related to the abandonment of certain construction in progress FF 91 program assets, primarily vendor tooling, machinery, and equipment, due to the redesign of the related FF 91 components and implementation of FF’s cost reduction program.
Net loss was $517 million for the year ended December 31, 2021, compared to net loss of $147 million in the prior-year period. The change in net loss is attributable to the significant increase in operating expenses as well as to the change in fair value measurements from conversion premiums included in notes payable and related party notes payable and changes related to the carve-out of original issue discounts and the fair value of warrants issued on select borrowings; and to an increase in loss at settlement of related party notes payable, notes payable, and vendor payables in trust, net due to the settlement of certain related party notes payable, notes payable, and vendor payables in trust with the commitment to issue shares of Class A Common Stock at the July 2021 closing of the merger with Property Solutions Acquisitions Corp. at a price below the fair value on the date of settlement.
Cash was $505 million as of December 31, 2021. The cash balance as of March 31, 2022, was $276 million. The decrease in cash from December 31, 2021, to March 31, 2022, was due in part to a scheduled $97 million note and accrued interest payment.
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/
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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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.
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 Hanford, California facility. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the Company’s ability to remain in compliance with the listing requirements of The Nasdaq Stock Market LLC (“Nasdaq”) and to continue to be listed on Nasdaq; the outcome of the SEC investigation relating to the matters that were the subject of the Special Committee investigation; the implementation of the Special Committee’s actions and related internal review by the Company; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the success of other competing manufacturers; the performance and security of the Company’s vehicles; potential litigation involving the Company; the result of future financing efforts and general economic and market conditions impacting demand for the Company’s products; the ability of the Company to attract and retain employees. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 is being filed with the SEC today, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Faraday Future Intelligent Electric Inc.
(in thousands, except share and per share data)
Liabilities and stockholders’ equity (deficit)
Accrued expenses and other current liabilities
Capital leases, less current portion
Other liabilities, less current portion
Notes payable, less current portion
Class A Common Stock, $0.0001 par value; 750,000,000 shares authorized; 168,693,323 and 93,099,596 shares issued and outstanding as of December 31, 2021 and 2020, respectively
Class B Common Stock, $0.0001 par value; 75,000,000 shares authorized as of December 31, 2021 and 2020; no shares and 64,000,588 shares issued and outstanding as of December 31, 2021 and 2020, respectively
Total liabilities and stockholders’ equity (deficit)
Faraday Future Intelligent Electric Inc.
Consolidated Statements of Operations– (Unaudited)
(in thousands, except share and per share data)
Loss on disposal of property and equipment
Change in fair value measurements
(Loss) gain at settlement of related party notes payable, notes payable, and vendor payables in trust, net
Net loss per Common Stock – Class A and Class B – basic and diluted
Weighted average Common Stock outstanding – Class A and Class B – basic and diluted
Change in foreign currency translation adjustment
Faraday Future Intelligent Electric Inc.
Consolidated Statements of Cash Flows – (Unaudited)
Cash flows from operating activities
Adjustments to reconcile net loss to net cash used in operating activities
Vesting of restricted stock awards for employee bonus
Loss on disposal of property and equipment
Change in fair value measurements
Loss upon cancellation of a lease
(Gain) loss on foreign exchange
Gain on forgiveness of accounts payable and loss on write-off of vendor deposits, net
Loss (gain) at settlement of related party notes payable, notes payable, and vendor payables in trust, net
Gain on forgiveness of vendor payables in trust
Reserve for unrecoverable value added taxes
Changes in operating assets and liabilities
Other current and non-current assets
Accrued expenses and other current liabilities
Transfers between vendor payables in trust and accounts payable
Net cash used in operating activities
Cash flows from investing activities
Payments for property and equipment
Proceeds from payments on notes receivable
Net cash (used in) provided by investing activities
Cash flows from financing activities
Proceeds from issuance of Class A Common Stock in the Business Combination
Proceeds from issuance of Class A Common Stock pursuant to the PIPE Financing
Transaction costs paid in connection with the Business Combination
Transaction costs paid in connection with the PIPE Financing
Proceeds from related party notes payable
Proceeds from notes payable, net of original issuance discount
Payments of related party notes payable
Payments of notes payable, including liquidation premiums
Payments of notes payable issuance costs
Payment of payables in vendor payables in trust
Transfers between vendor payables in trust and accounts payable
Payments of capital lease obligations
Proceeds from exercise of stock options
Payments of stock issuance costs
Net cash provided by financing activities
Effect of exchange rate changes on cash and restricted cash
Net increase (decrease) in cash and restricted cash
Cash and restricted cash, beginning of period
Cash and restricted cash, end of period
Faraday Future Intelligent Electric Inc.
Consolidated Statements of Cash Flows — (Unaudited)
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:
Total cash and restricted cash, beginning of period
Total cash and restricted cash, end of period
Supplemental disclosure of noncash investing and financing activities
Conversion of related party notes payable and related party accrued interest to Class A Common Stock
Conversion of notes payable and accrued interest to Class A Common Stock
Conversion of assumed convertible and promissory notes payable to Class A Common Stock and Private Warrants
Conversion of The9 Conditional Obligation to Class A Common Stock
Additions of property and equipment included in accounts payable and accrued expenses
Conversion of related party customer deposit to related party notes payable
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
Exchange of Legacy FF convertible preferred stock for a commitment to issue Class B Common Stock
Settlement of notes payable and accrued interest for a commitment to issue Class A Common Stock
Settlement of related party notes payable and related party accrued interest for a commitment to issue Class A Common Stock
Settlement of vendor payable in trust to a commitment to issue Class A Common Stock
Reclassification of deferred transaction costs paid in prior periods against the proceeds received in the Business Combination
Supplemental disclosure of cash flow information
View source version on businesswire.com: https://www.businesswire.com/news/home/20220513005516/en/
Investors (English): [email protected] Investors (Chinese): [email protected] John Schilling Media: [email protected]
Source: Faraday Future Intelligent Electric Inc.
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