ElectraMeccanica Reports Second Quarter 2019 Financial Results
August 08 2019 - 4:05PM
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("Meccanica" or the
"Company"), a designer and manufacturer of electric vehicles, today
reported its financial results for the second quarter ended June
30, 2019.
Recent Company Highlights:
- Appointed automotive and advanced propulsion systems expert,
Paul Rivera, as the Company’s new Chief Executive Officer,
effective August 12, 2019. Jerry Kroll, the Company’s founder and
CEO since 2015, will remain on the Company’s board of
directors.
- To-date, Meccanica has produced 47 pre-production SOLO electric
vehicle at their strategic partner’s manufacturing facility in
Chongqing, China. These vehicles have undergone rigorous internal
quality assurance and safety tests, which include fine-tuning
calibration, stability, and brake systems, among other items.
- Obtained $2,500 per vehicle consumer rebate designation for
SOLO EV through the Oregon Clean Vehicle Rebate Program, and a $900
per vehicle consumer rebate from the California Air Resources Board
(CARB).
- Granted key patent in China for proprietary battery cartridge
design, further expanding international protection of key
technologies underlying the SOLO EV.
- Announced multi-year collaboration with Apollo Brands, whereby
Meccanica will supply the company with SOLO EVs for use in
last-mile delivery applications.
- Announced milestone of first SOLO EV owner driving 20,000
kilometers in first two years of ownership, utilizing the vehicle
primary in commuting and urban package delivery applications,
validating proof of concept and the reliability of the SOLO.
- Announced engagement with top tier automotive public relations
firm, jmpr. jmpr brings Meccanica over 40 years of experience
within the automotive and transportation lifestyle industries, as
well as extensive relationships with industry leaders, influencers
and consumer decision makers.
- Showcased the SOLO EV at the Advanced Clean Transportation EXPO
in Long Beach, California, where the Company offered test drives to
fleet managers and participated in an urban mobility panel
discussion.
Second Quarter 2019 Financial Summary
- Total revenue for the three months ended June 30, 2019, was
CAD$0.2 million, compared to revenue of CAD$0.3 million in the same
year-ago quarter. The decrease in revenue was primarily attributed
to decrease of the custom-built e-roadsters that were
produced.
- General and administrative expenses for the three months ended
June 30, 2019 were CAD$1.6 million, compared to CAD$0.9 million in
the same year-ago quarter. This increase is primarily due to
increased rent and office expenses, legal and professional fees,
consulting fees, investor relations and increased salary
expenses.
- Research and development expenses for the three months ended
June 30, 2019 were CAD$1.9 million, compared to CAD$1.7 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 June 30, 2019 was
CAD$4.9 million, compared to an operating loss of CAD$4.6 million
in the same year-ago quarter.
- Net Income for the three months ended June 30, 2019 was CAD$3.3
million, compared to a net loss of CAD$2.6 million in the same
year-ago quarter. The increase in net loss was primarily related to
the fair market value of the warrant derivative liability.
- Cash and cash equivalents and short-term deposits were CAD$21.4
million as of June 30, 2019, compared with CAD$18.9 million as of
December 31, 2018.
- Cash used in operations in the quarter ended June 30, 2019 was
CAD$8.2 million, compared with cash used in operations of CAD$3.0
million in the same year-ago quarter.
Management Commentary
“The second quarter of 2019 was highlighted by our continued
preparation for the production ramp of our flagship,
single-passenger SOLO EV,” said Bal Bhullar, Chief Financial
Officer of Meccanica. “Our team has made significant strides in
preparing for this roll-out, including finalization of the tooling
and automation at our strategic partner’s manufacturing facility in
China. Over the last few months, we have conducted rigorous
internal quality assurance and safety tests on the first 47
pre-production SOLO, all of which have been produced to date in
2019, testing items such as calibration, stability, and brake
systems, among others. We have positioned ourselves to
revolutionize the EV with a vehicle that is truly disruptive,
taking transportation of individuals and goods to the next
level.
“We have made considerable progress as an organization as we
transition to full-scale production. Some of these steps include
establishing a critical sales and service infrastructure, securing
key consumer rebates on the West Coast to further lower the cost of
the SOLO, fortifying our intellectual property portfolio and adding
key members to our team, including the appointment of seasoned
automotive executive, Paul Rivera, as CEO. Paul brings over 25
years of experience in the automotive sector with advanced
propulsion systems, industry ‘know-how’ and key relationships. With
these key strategic initiatives complete, we expect to transition
Meccanica into an innovative leader in the automotive technology
industry.”
“With the SOLO EV certified for sale in 37 states throughout the
U.S., we are well positioned to revolutionize the way people
commute by creating an affordable, fun and eco-friendly alternative
to the daily commuter experience. I am inspired to be a part of
this amazing Company as we prepare to deliver quality vehicles to
our customers in the latter half of 2019 and beyond,” concluded
Bhullar.
About Electrameccanica Vehicles Corp.
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a designer and
manufacturer of electric vehicles. The Company builds the
innovative, all-electric SOLO, a single passenger vehicle developed
to revolutionize the way people commute, as well as the Tofino, an
elegant high-performance two-seater electric roadster sports car.
Both vehicles are tuned for an incredible driving experience while
making your commute more efficient, cost-effective and
environmentally friendly. Intermeccanica, a subsidiary of
Electrameccanica, has successfully been building high-end specialty
cars for 60 years. For more information,
visit www.electrameccanica.com.
Forward Looking
Statements Some of the statements
contained in this press release are forward-looking statements and
information within the meaning of applicable securities laws.
Forward-looking statements and information can be identified by the
use of words such as “expects”, “intends”, “is expected”,
“potential”, “suggests” or variations of such words or phrases, or
statements that certain actions, events or results “may”, “could”,
“should”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking statements and information are not
historical facts and are subject to a number of risks and
uncertainties beyond the Company’s control. Actual results and
developments are likely to differ, and may differ materially, from
those expressed or implied by the forward-looking statements
contained in this news release. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements, except as may be required by
law.
Media Contact:Sean Mahoney (310)
867-0670sean@ElectraMeccanica.com
Investor Relations:Greg FalesnikManaging
DirectorMZ Group - MZ North America(949)
385-6449greg.falesnik@mzgroup.uswww.mzgroup.us
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