Electra Meccanica Vehicles Corp. Reports Third Quarter 2018 Financial Results
November 19 2018 - 8:31AM
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("Electra Meccanica"
or the "Company"), a designer and manufacturer of electric
vehicles, today reported its financial results for the three-months
ended September 30, 2018.
Recent Operational
Highlights:
- Announced that total vehicle
pre-orders as of October 22, 2018 exceeded 64,000 units,
representing USD$2.4 billion in potential sales at the expected
vehicle MSRPs.
- Debuted the SOLO at the AltCar Expo
in Southern California, generating hundreds of test drive requests
from industry thought leaders; Received commendation from Canadian
consulate.
- Opened first Electra Meccanica
dealership in Los Angeles, California to facilitate test drives,
maintenance and initial SOLO vehicle deliveries to the strategic
U.S. market.
- Successfully completed Canadian
side-crush testing of the SOLO, having withstood 20,617 lb. in
side-crush testing as compared to the required minimum of 2,977
lb.
- Announced collaboration with
7-Eleven, Inc., the world’s largest convenience retailer with over
66,000 stores in 17 countries, to evaluate the SOLO for local
delivery applications from select Canadian locations with the
potential for potential future expansion.
- Completed uplisting to the NASDAQ
Capital Market in conjunction with a USD$10 million underwritten
public offering.
- Completed USD$8.5 million
registered direct offering to raise proceeds to further the design
and development of the Tofino electric sports car.
- Engaged MZ Group, the world’s
largest independent IR firm, to manage a comprehensive investor
relations and strategic financial communications program across all
key markets.
Q3 2018 Financial
Summary
- Total revenue for the three months
ended September 30, 2018, was CAD$190k, compared with negligible
revenue in the corresponding quarter ended September 30, 2017. The
increase in revenue was due to the acquisition of Intermeccanica
International Inc.
- General and administrative expenses for the three months ended
September 30, 2018, were CAD$1.7 million, compared to CAD$0.6
million in the corresponding quarter ended September 30, 2017. This
increase is primarily due to increased rent and office expenses,
legal and professional fees, consulting fees and increased salary
expenses.
- Research and development expenses increased to CAD$0.9 million
for the three months ended September 30, 2018, up from CAD$0.8
million in the corresponding quarter ended September 30, 2017. This
is primarily due to costs related to the development of the
SOLO.
- Operating loss for the three months ended September 30, 2018
increased to CAD$3.9 million, compared to an operating loss of $2.2
million in the corresponding quarter ended September 30, 2017.
- Net loss for the three months ended September 30, 2018 was
CAD$2.9 million, compared to CAD$3.0 million in the corresponding
quarter ended September 30, 2017.
- Cash used in operations was CAD$5.0 million, compared with cash
used in operations of CAD$1.5 million in the corresponding quarter
ended September 30, 2017.
- Cash and cash equivalents and short-term deposits were CAD$12.1
million as of September 30, 2018, compared with CAD$3.5 million as
of September 30, 2017. Subsequent to the close of the third
quarter, the Company completed an USD$8.5 million registered direct
offering.
Management Commentary“We have
made significant progress towards our production goals in the third
quarter and are on the cusp of launching mass-production SOLO
vehicles in the United States,” said Jerry Kroll, CEO of Electra
Meccanica. “Alongside a successful debut at the AltCar Expo in
Santa Monica where we garnered hundreds of test drive requests, we
saw initial deliveries of the SOLO arrive at our new Los Angeles
dealership in order to facilitate customer test drives. We believe
that our initial vehicles in the Los Angeles market will continue
to garner significant consumer and media interest, steadily
generating new sales leads.
“Additionally, I am extremely proud to announce
immensely positive results from several crash tests we’ve conduced
over the past few months. In one side-crush test in Canada, the
SOLO withstood nearly seven times more pressure than the required
minimum. We believe these positive test results are indicative of
the high engineering standards that we hold ourselves to, as
customer safety remains our highest priority. “
“Given our capital-light production model –
which substantially reduces production and execution risk – as well
as our disciplined cash management and robust balance sheet, we are
now in a stronger position than ever to deliver on our promise of
delivering our first production vehicles in the fourth quarter, as
well as delivering 5,000 production vehicles by the end of 2019.
With a strong pre-order queue of over 64,000 units representing
$2.4 billion in potential sales at our expected vehicle MSRPs,
there remains a massive market to address as we scale vehicle
production with our strategic manufacturing partner. We look
forward to providing our valued pre-order customers with a superior
driving experience in the short term, and believe we are well
positioned to create notable shareholder value as we continue to
execute upon our strategic objectives,” concluded Kroll.
About Electra Meccanica Vehicles
Corp.Electra Meccanica 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 the ultimate driving experience while making your commute more
efficient, cost-effective and environmentally friendly.
Intermeccanica, a subsidiary of Electra Meccanica, has successfully
been building high-end specialty cars for 59 years. The Electra
Meccanica family is delivering next generation affordable electric
vehicles to the masses. For more information,
visit www.electrameccanica.com.
Safe Harbor StatementsSome 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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