ElectraMeccanica Reports Third Quarter 2020 Financial Results
November 10 2020 - 4:10PM
ElectraMeccanica Vehicles Corp. (NASDAQ:
SOLO) ("ElectraMeccanica" or the "Company"), a designer
and manufacturer of electric vehicles, reported financial results
for the third quarter ended September 30, 2020.
Third Quarter
and Recent Company Highlights
- Commenced
production and successfully delivered the first shipment of
SOLO EVs into the U.S. In-line with the Company’s
ongoing vehicle rollout strategy, these SOLO EVs
will be used specifically for high ROI activities, including press
events, marketing, retail distribution, test drives, corporate and
advertising purposes as well as fleet demonstrations.
- Expanded the
SOLO retail footprint into six (6) additional
high-traffic, upscale shopping centers in EV-friendly cities,
including San Diego, CA; Brea, CA; Scottsdale, AZ; Glendale, AZ;
Santa Clara, CA and Walnut Creek, CA. The Company also currently
maintains four (4) existing locations with two (2) storefronts in
Los Angeles, CA as well as one (1) location in Portland, OR and
Scottsdale, AZ, respectively.
- Revealed initial
concepts for the utility and fleet version of the
SOLO EV, which is expected to become available in
early 2021. These modified vehicles are being developed based on
direct input from potential commercial and fleet partners and will
be equipped with a stylish and functional cargo “cap,” offering
additional capacity and versatility to suit a variety of different
single-occupant commercial and utility fleet applications.
- Since late
February, the Company has been engaged with BDO USA’s Site
Selection & Business Incentives Practice (“BDO”) to lead a
nationwide search for an assembly facility and engineering
technical center in the U.S. BDO initially identified seven
candidate states. Following comprehensive proposals and site visits
at select candidate locations, the Company announced the remaining
two finalists as Arizona and
Tennessee. Within each finalist state, the Company
has selected two finalist sites within the Phoenix, AZ metro area
and the Nashville, TN region, respectively. Along with BDO, the
Company is now conducting final site and proposal reviews before
making a selection at the end of November 2020.
- Launched the
“Drive SOLO” marketing campaign, aimed at
educating and challenging consumers to reconsider their driving
habits, particularly when commuting to work, the gym, or visiting
friends. The campaign includes a digital storytelling operation
across all social and digital media platforms, including: Facebook,
Instagram, Twitter and the Company website. The “Drive
SOLO” campaign is characterized by bold,
minimalist visuals, which were designed by Narrative Media Group, a
specialty creative experience agency that has worked with some of
the country’s most high-profile influencers, organizations and
iconic brands.
Management Commentary“The third
quarter of 2020 brought with it a number of key milestones for
ElectraMeccanica but none more notable than the start of production
for our flagship SOLO EV,” said Company CEO Paul
Rivera. “Beginning last month we started shipping the first
production SOLOs and have already been putting
them to use in high-value commercial activities including
marketing, retail distribution, test drives and fleet
demonstrations. Over the next few weeks, we will be dramatically
expanding our sales efforts by opening an additional six locations
throughout the western U.S., bringing the ‘Drive
SOLO’ movement to an even greater retail audience
just in time for the holidays. As we continue to ramp our
production capacity, we are continuing to ensure that safety,
quality and a truly exceptional customer experience remain our core
focus. Looking ahead, we expect to finalize our decision on a
manufacturing partner later this month and are well on our way to
making the first customer deliveries early in the new year.”
Third Quarter
2020 Financial Summary
- Cash and cash
equivalents and short-term deposits were CAD$101.1 million as of
September 30, 2020, compared with CAD$11.1 million as of December
31, 2019.
- Cash used in
operations in the third quarter of 2020 was CAD$7.2 million,
compared with cash used in operations of CAD$2.8 million in the
same year-ago quarter.
- Total revenue in
the third quarter of 2020 was CAD$0.3 million, compared to CAD$0.2
million in the same year-ago quarter. The increase in revenue was
primarily attributable to an increase in custom-built roadsters
that were produced.
- General and
administrative expenses in the third quarter of 2020 were CAD$2.5
million, compared to CAD$2.3 million in the same year-ago quarter.
The increase in G&A expenses was primarily due to increased
rent, office, legal and professional, investor relations and salary
expenses, offset by decreased consulting fees.
- Research and
development expenses in the third quarter of 2020 were CAD$2.1
million, compared to CAD$3.3 million in the same year-ago quarter.
The decrease in R&D expenses was primarily due to a decrease in
materials costs, offset by an increase in labor costs.
- Operating loss
in the third quarter of 2020 was CAD$8.8 million, compared to an
operating loss of CAD$7.8 million in the same year-ago quarter. The
increase in operating loss was primarily due to the increased
G&A expenses mentioned above as well as increased stock-based
compensation expenses, offset by a decrease in R&D expenses
also mentioned above.
- Net loss in the
third quarter of 2020 was CAD$14.9 million, compared to a net loss
of CAD$5.3 million in the same year-ago quarter. The increase in
net loss was primarily related to the fair market revaluation of
the Company’s warrant derivative liability.
Company CFO Bal Bhullar added, “During Q3 we
increased our cash position by another $50 million, bringing our
total cash and cash equivalents to above $100 million at September
30. With our anticipated production ramp over the coming quarters
and future plans for a U.S. facility buildout, we have created a
financial pathway to execute on our immediate and longer-term goals
and objectives. While we are in the most financially secure
position in our Company’s history, our focus remains on managing
our resources effectively and efficiently to maximize results and
output for our business and generate greater value for our
shareholders over time.”
The SOLO is a purpose-built,
three-wheeled, all-electric solution for the urban environment.
Engineered for a single occupant, it offers a unique driving
experience for the environmentally conscious consumer. The
SOLO has a range of 100 miles and a top speed of
80 mph, making it safe for highways. The SOLO
features front and rear crumple zones, side impact protection, roll
bar, torque-limiting control, as well as power steering, power
brakes, air conditioning and a Bluetooth entertainment system. It
blends a modern look with safety features at an accessible price
point of $18,500. The SOLO is currently available
for pre-orders at
https://electrameccanica.com/product/solo-reservation/.
Please click here for the latest version of the
Company’s investor presentation.
About ElectraMeccanica Vehicles
Corp. ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a
Canadian designer and manufacturer of environmentally efficient
electric vehicles (EVs). The company’s flagship vehicle is the
innovative, purpose-built, single-seat EV 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 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.
Company ContactMs. Bal Bhullar, CPA, CGA,
CRMChief Financial Officer & Director(604)
428-7656Bal@electrameccanica.com
Investor Relations ContactGateway Investor
RelationsMatt Glover and Tom Colton(949)
574-3860SOLO@gatewayir.com
Public Relations ContactAmy
PandyaR&CPMK(310) 967-3418amy.pandya@rogersandcowanpmk.com
Electrameccanica Vehicles (NASDAQ:SOLO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Electrameccanica Vehicles (NASDAQ:SOLO)
Historical Stock Chart
From Sep 2023 to Sep 2024