ElectraMeccanica Reports Fourth Quarter and Full Year 2019 Financial Results
March 25 2020 - 4:05PM
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("ElectraMeccanica"
or the "Company"), a designer and manufacturer of electric
vehicles, has reported its financial results for the fourth quarter
and full year ended December 31, 2019.
Recent Company Highlights:
- Unveiled production intent SOLO EV,
integrating upgrades that include an advanced liquid-cooled motor
incorporating torque-limiting electronic stability control, a wider
front steering track, a revised electronic power steering software
and additional occupant safety protection. Additional upgrades
include a more robust and rugged appearance, a more comfortable
seat design, an enhanced entertainment system and display with
Bluetooth technology and reduced interior cabin noise.
- ElectraMeccanica is currently preparing for a mid-year 2020
launch of its unique SOLO EV, with a strategic
launch in the Los Angeles market first, followed by other west
coast cities later in the year.
- Engaged BDO to lead search for a U.S. assembly facility and
state-of-the-art engineering technical center, with the goal of
assembling knock-down kits for SOLO EVs to be sold
in the U.S. market, thereby reducing uncertainties in the global
supply chain, increasing logistical efficiencies and eliminating
tariffs. BDO has identified seven states as finalists and sent
initial request for proposals to the chief economic development
entities in Arizona, Colorado, Florida, North Carolina, South
Carolina, Tennessee and Texas. The leading location and backup
sites are expected to be announced in the third quarter of
2020.
- Established EMV Automotive Technology, Inc. (Chongqing), a
wholly-owned subsidiary for in-country operations in China.
- Opened first retail kiosk at the Westfield Century City
Shopping Mall in Los Angeles, providing customers with the
opportunity to view, test drive and place pre-orders in a modern
sleek storefront. ElectraMeccanica will open additional kiosks
throughout 2020 in Southern California locations, as well as in the
San Francisco area, Washington and Oregon.
- 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 accomplished financial executive and ElectraMeccanica
Chief Financial Officer, Ms. Bal Bhullar, to the Board of Directors
effective December 6, 2019.
- 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
“2019 was a metamorphic year for
ElectraMeccanica as we laid the groundwork for the launch of our
flagship, single-occupant SOLO EV,” Paul Rivera,
Chief Executive Officer of ElectraMeccanica. “Since joining as CEO
in August 2019, our entire team has been focused on a reboot and
execution, moving the Company from a concept to one that is in
commercial production of the most efficient, trend-setting vehicle
to move a single occupant. As part of this endeavor, we’ve
re-engineered significant safety, comfort and design enhancements
that are being implemented into the production ready
SOLO. Today, more than ever, we remain
focused and committed as we move forward with production plans and
methodical launch in the Los Angeles area.”
“Importantly, we’ve also taken several strategic
steps to support our go-forward operations, such as the
establishment of EMV Automotive Technology, our wholly-owned
subsidiary in China that provides us with a greater presence in
this important market. In addition, we’ve engaged BDO’s Site
Selection & Business Incentives Group to lead a search for a
U.S. assembly facility and state-of-the-art engineering and
technical center. A U.S. facility dedicated to assembling
knock-down kits for SOLO EVs to be sold
domestically will minimize uncertainties in the global supply
chain, increase logistical efficiencies and reduce or eliminate
tariffs.
“In summary, we’ve made unbelievable progress in
our asset-light approach to preparing for the launch of a vehicle
unlike any other. We’ll continue to leverage our proven retail
kiosk model at highly trafficked areas throughout Southern
California and the broader West Coast, and as production volumes
ramp throughout the year, we look forward to increasing shareholder
value, revolutionizing the urban driver experience and providing a
long-overdue solution for ‘SOLO Mobility.’”
Fourth Quarter and Full Year 2019 Financial
Summary
- Revenue in the fourth quarter of 2019 was CAD$0.3 million,
compared to revenue of CAD$0.1 million in the same year-ago
quarter. Revenue in 2019 was CAD$0.8 million compared with CAD$0.8
million in 2018.
- Research and development expenses in the fourth quarter of 2019
were CAD$2.7 million, compared to CAD$1.4 million in the same
year-ago quarter. Research and development expenses in 2019 were
CAD$9.5 million, compared to CAD$5.6 million in 2018. Research and
development costs relate to the electric vehicle segment as the
Company continued to develop its first electric vehicle, the
SOLO.
- Operating loss in the fourth quarter of 2019 was CAD$8.3
million, compared to an operating loss of CAD$4.8 million in the
same year-ago quarter. Operating loss in 2019 was CAD$27.3 million,
compared to CAD$16.9 million in 2018.
- Net loss in the fourth quarter of 2019 was CAD$8.1 million,
compared to a net loss of CAD$2.1 million in the same year-ago
quarter. Net loss in 2019 was CAD$30.7 million, compared to
CAD$10.0 million in 2018.
- Cash and cash equivalents and short-term deposits were CAD$11.1
million as of December 31, 2019, compared with CAD$18.9 million as
of December 31, 2018.
- Cash used in operations in the fourth quarter of 2019 was
CAD$4.8 million, compared with cash used in operations of CAD$5.3
million in the same year-ago quarter. Cash used in operations in
2019 was CAD$22.5 million, compared to CAD$15.6 million in
2018.
“Throughout 2019, we’ve maintained our focus on
prudent expense control and strategically allocating our resources
as we prepare for the imminent launch of the SOLO
EV,” said Ms. Bal Bhullar, Chief Financial Officer of
ElectraMeccanica. “The entire leadership team at ElectraMeccanica
has also kept the safety of our employees and partners as a top
priority during these unprecedented times and we remain in a strong
position to execute upon our operational and production goals.”
With an MSRP of $18,500, the
SOLO EV is a trend-setting all-electric,
single-seat vehicle expected to revolutionize the commuting,
delivery and shared mobility experience. To be one of the first to
own a SOLO, please reserve yours online by
visiting www.electrameccanica.com.
About ElectraMeccanica Vehicles
Corp. ElectraMeccanica Vehicles
Corp. (NASDAQ: SOLO) is a Canadian designer and manufacturer of
environmentally efficient electric vehicles. The company’s flagship
vehicle is the innovative purpose built; single-seat electric
vehicle called the SOLO. This three-wheeled
vehicle will revolutionize the urban driving experience, including
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 61 years. For more information, please
visit www.electrameccanica.com.
Safe Harbor Statement
Except 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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