- 45% or
$184.2 million Annual Adjusted EBITDA Improvement from$(408.6) million in 2022 to$(224.4) million in 2023 - 40% or
$11.9 million Reduction in Capital Expenditures versus already reduced 2023 Second-Half Guidance - Secured USPS Agreement to Purchase Right Hand Drive LDV 190s
- Started Commercial Fleet Customer Deliveries
- Acquired Advanced Manufacturing Assets at Deep Discounts Reducing Anticipated Capital Expenditures by ~34%
- Oklahoma City Manufacturing Facility Designated as
Foreign Trade Zone (“FTZ”) Opening International Expansion and Delivers up to$70.0 million in Estimated Vehicle Cost Savings and Duty Deferrals in 2024 and 2025 - Appointed Former NASA Chief Technology Officer
Deborah Diaz and Veteran EV Transportation LeaderJames Chen to Board of Directors
“In Q4 2023, we started our first commercial fleet customer deliveries from our
- Completed 22 Vehicles for Full Year 2023 and 17 vehicles in Q4
- Delivered Vehicles to
State of Oklahoma , Kingbee, and Zeeba in Q4, 2023 - Created 100+ Jobs in the
State of Oklahoma to Scale Manufacturing $45.0 million Investment from Foreign Strategic Institutional Investor- Unveiled the American Bulldog, builds upon rapid product development and real-world testing
- Conducted ~3,400 Miles of Customer Road Testing with LDV190 in Q4 and Reached over 20,000 Miles of Cumulative Testing
- Received First, Non-Dilutive Incentives from
State of Oklahoma
Fourth Quarter and Fiscal Year 2023 Financial Highlights
- GAAP net loss and comprehensive loss of
$29.0 million and$302.6 million for the three and twelve months endedDecember 31, 2023 , compared to a GAAP net loss and comprehensive loss of$80.2 million and$487.7 million for the three and twelve months endedDecember 31, 2022 . - Adjusted EBITDA of
$(54.6) million and$(224.4) million for the three and twelve months endedDecember 31, 2023 , compared to$(60.5) million and$(408.6) million for the three and twelve months endedDecember 31, 2022 . - Net cash used in operating activities totaled
$251.1 million for the twelve months endedDecember 31, 2023 , compared to net cash used in operating activities of$400.5 million for the twelve months endedDecember 31, 2022 . - Net cash used in investing activities was
$67.1 million during the twelve months endedDecember 31, 2023 , compared to net cash used in investing activities of$66.8 million during the twelve months endedDecember 31, 2022 . - Net cash provided by financing activities was
$288.5 million during the twelve months endedDecember 31, 2023 , compared to net cash provided by financing activities of$290.4 million during the twelve months endedDecember 31, 2022 .
2024 Business Outlook
Based upon our current projections,
- Annual Revenue –
$50 million to$100 million - Cash Outflow –
$45 million to$75 million per quarter - Capital Expenditures – as we continue to seek opportunities to acquire distressed assets, capital expenditures guidance will be provided in future quarters
Conference Call Information
To listen to the conference call via telephone dial (877) 407-9169 (
About
Fourth Quarter 2023 Financial Results | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands, except par value) | ||||||
2023 | 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 6,394 | $ | 36,589 | ||
Restricted cash, current | 3,905 | 3,426 | ||||
Inventory | 6,153 | 2,954 | ||||
Prepaids and other current assets | 16,099 | 9,350 | ||||
Total current assets | 32,551 | 52,319 | ||||
Property and equipment, net | 377,100 | 311,400 | ||||
Restricted cash, non-current | 10,600 | 10,600 | ||||
Operating lease right-of-use assets | 36,241 | 39,331 | ||||
Deferred warrant asset | 50,175 | 50,175 | ||||
Deferred battery supplier cost | 30,000 | 30,000 | ||||
Other non-current assets | 5,338 | 2,647 | ||||
Total assets | $ | 542,005 | $ | 496,472 | ||
Liabilities, preferred stock and stockholders’ equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 65,306 | $ | 103,187 | ||
Accrued expenses and other current liabilities | 63,901 | 63,091 | ||||
Convertible debt, current | 51,180 | 34,829 | ||||
Derivative liability, current | 860 | — | ||||
Financing liability, current | 3,200 | — | ||||
Warrant liability, current | — | 17,171 | ||||
Total current liabilities | 184,447 | 218,278 | ||||
Contingent earnout shares liability | 41 | 3,013 | ||||
Operating lease liabilities | 35,722 | 38,608 | ||||
Derivative liability, non-current | 25,919 | — | ||||
Financing liability, non-current | 28,910 | — | ||||
Warrant liability, non-current | 17,390 | — | ||||
Total liabilities | 292,429 | 259,899 | ||||
Redeemable preferred stock, | 5,607 | — | ||||
Stockholders’ equity | ||||||
Common stock, | 85 | 35 | ||||
Additional paid-in capital | 1,725,728 | 1,416,361 | ||||
Accumulated deficit | (1,481,844) | (1,179,823) | ||||
Total preferred stock and stockholders’ equity | 249,576 | 236,573 | ||||
Total liabilities, preferred stock and stockholders’ equity | $ | 542,005 | $ | 496,472 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Three Months Ended | ||||||||||||
Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Revenue | $ | 367 | $ | — | $ | 886 | $ | — | ||||
Cost of revenue | 1,471 | — | 2,374 | — | ||||||||
Gross margin | (1,104) | — | (1,488) | — | ||||||||
Operating Expenses | ||||||||||||
Research and development expenses, excluding depreciation | 31,542 | 44,209 | 139,193 | 299,218 | ||||||||
Selling, general and administrative expenses, excluding depreciation | 28,100 | 36,430 | 113,295 | 196,029 | ||||||||
Depreciation | 3,211 | 2,534 | 13,843 | 11,554 | ||||||||
Total operating expenses | 62,853 | 83,173 | 266,331 | 506,801 | ||||||||
Loss from operations | (63,957) | (83,173) | (267,819) | (506,801) | ||||||||
Other (expense) income | ||||||||||||
Interest expense | 1,218 | (60) | (5,537) | (2,249) | ||||||||
Gain on fair value change in contingent earnout shares liability | 129 | 3,175 | 2,972 | 26,044 | ||||||||
Gain on fair value change in warrant and derivative liability | 28,598 | — | 68,689 | — | ||||||||
Loss on fair value change of derivative asset | (2,205) | — | (5,966) | — | ||||||||
Loss on fair value change of convertible debt | 8,064 | — | (61,551) | — | ||||||||
Loss on extinguishment of debt | (456) | (531) | (30,717) | (4,626) | ||||||||
Other expense, net | 164 | 358 | (2,092) | (62) | ||||||||
Loss before income taxes | (28,445) | (80,231) | (302,021) | (487,694) | ||||||||
Provision for income taxes | — | — | — | |||||||||
Net loss and comprehensive loss attributable to Canoo | $ | (28,445) | $ | (80,231) | $ | (302,021) | $ | (487,694) | ||||
Less: dividend on redeemable preferred stock | 459 | — | 459 | — | ||||||||
Less: additional deemed dividend on redeemable preferred stock | 141 | — | 141 | — | ||||||||
Net loss and comprehensive loss available to common shareholders | (29,045) | (80,231) | (302,621) | (487,694) | ||||||||
Per Share Data: | ||||||||||||
Net loss per share, basic and diluted | $ | (0.04) | $ | (0.25) | $ | (0.53) | $ | (1.81) | ||||
Weighted-average shares outstanding, basic and diluted | 753,023 | 326,130 | 576,199 | 269,768 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | ||||||||||||
Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (28,445) | $ | (80,230) | $ | (302,021) | $ | (487,694) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Depreciation | 3,211 | 2,534 | 13,843 | 11,554 | ||||||||
Non-cash operating lease expense | 858 | 840 | 3,362 | 2,355 | ||||||||
Non-cash commitment fee under the SEPA | — | — | — | 582 | ||||||||
Inventory write-downs | 1,816 | — | 2,182 | — | ||||||||
Non-cash legal settlement | — | — | — | 5,532 | ||||||||
Stock-based compensation expense | 6,755 | 18,593 | 30,206 | 79,573 | ||||||||
Gain on fair value change of contingent earnout shares liability | (129) | (3,175) | (2,972) | (26,044) | ||||||||
Gain on fair value change in warrants liability | (20,723) | — | (57,816) | — | ||||||||
Gain on fair value change in derivative liability | (7,875) | — | (10,873) | — | ||||||||
Loss on extinguishment of debt | 456 | 531 | 30,717 | 4,626 | ||||||||
Loss on fair value change in derivative asset | 2,205 | — | 5,966 | — | ||||||||
Loss on fair value change in convertible debt | (8,064) | — | 61,551 | — | ||||||||
Non-cash debt discount | (2,439) | — | 2,571 | 900 | ||||||||
Non-cash interest expense | 1,385 | 114 | 3,619 | 1,430 | ||||||||
Other | 207 | — | 1,046 | — | ||||||||
Changes in assets and liabilities: | ||||||||||||
Inventory | (2,285) | (1,672) | (5,381) | (2,954) | ||||||||
Prepaid expenses and other current assets | (3,305) | 1,635 | (6,750) | 5,672 | ||||||||
Other assets | (180) | (91) | (2,691) | 879 | ||||||||
Accounts payable & accrued expenses and other current liabilities | (3,147) | (9,691) | (17,693) | 3,114 | ||||||||
Net cash used in operating activities | (59,699) | (70,612) | (251,134) | (400,475) | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (21,688) | (8,453) | (67,064) | (97,270) | ||||||||
Return of prepayment from VDL Nedcar | — | — | — | 30,440 | ||||||||
Net cash used in investing activities | (21,688) | (8,453) | (67,064) | (66,830) | ||||||||
Cash flows from financing activities: | ||||||||||||
Repurchase of unvested shares | — | (3) | — | (12) | ||||||||
Payment of offering costs | — | (14) | (400) | (1,233) | ||||||||
Proceeds from the exercise of YA warrants | — | — | 21,223 | — | ||||||||
Proceeds from the purchase of shares and warrants by VDL Nedcar | — | — | — | 8,400 | ||||||||
Proceeds from issuance of shares under SEPA agreement | — | — | — | 32,500 | ||||||||
Proceeds from issuance of shares under PIPEs | — | 10,000 | 11,750 | 60,000 | ||||||||
Proceeds from the employee stock purchase plan | 123 | 424 | 989 | 2,923 | ||||||||
Proceeds from the exercise of stock options | — | 1 | — | 1 | ||||||||
Proceeds from issuance of shares under RDO, net of issuance costs | — | — | 50,961 | — |
Proceeds from convertible debenture, net of issuance costs | — | — | 107,545 | — | ||||||||
Payment made on financing arrangement | (543) | — | (1,492) | — | ||||||||
Proceeds from the issuance of shares under ATM | — | 49,263 | 1,155 | 49,263 | ||||||||
Proceeds from PPA, net of issuance costs | 35,000 | 52,000 | 51,751 | 141,100 | ||||||||
Repayments on PPA | — | (2,514) | — | (2,514) | ||||||||
Proceeds from Preferred Shares transaction | 45,000 | — | 45,000 | — | ||||||||
Net cash provided by financing activities | 79,580 | 109,157 | 288,482 | 290,428 | ||||||||
Net decrease in cash, cash equivalents, and restricted cash | (1,807) | 30,092 | (29,716) | (176,877) | ||||||||
Cash, cash equivalents, and restricted cash | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 22,706 | 20,523 | 50,615 | 227,492 | ||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 20,899 | $ | 50,615 | $ | 20,899 | $ | 50,615 | ||||
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets | ||||||||||||
Cash and cash equivalents at end of period | $ | 6,394 | $ | 36,589 | $ | 6,394 | $ | 36,589 | ||||
Restricted cash, current at end of period | 3,905 | 3,426 | 3,905 | 3,426 | ||||||||
Restricted cash, non-current at end of period | 10,600 | 10,600 | 10,600 | 10,600 | ||||||||
Total cash, cash equivalents, and restricted cash at end of period shown in the Consolidated statements of Cash Flows | $ | 20,899 | $ | 50,615 | $ | 20,899 | $ | 50,615 | ||||
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Earnings Per Share ("EPS")
“EBITDA” is defined as net loss before interest expense, income tax expense or benefit, and depreciation and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation, restructuring charges, asset impairments, and other costs associated with exit and disposal activities, acquisition and related costs, changes to the fair value of contingent earnout shares liability, changes to the fair value of warrant and derivative liability, changes to the fair value of convertible debt, changes to the fair value of derivative asset and any other one-time non-recurring transaction amounts impacting the statement of operations during the year. "Adjusted Net Loss" is defined as net loss adjusted for stock-based compensation, restructuring charges, asset impairments, non-routine legal fees, and other costs associated with exit and disposal activities, acquisition and related costs, changes to the fair value of contingent earnout shares liability, changes to the fair value of warrants and derivative liability, changes to the fair value of the derivative asset, changes to the fair value of convertible debt, loss on extinguishment of debt, and any other one-time non-recurring transaction amounts impacting the statement of operations during the year. "Adjusted EPS" is defined as Adjusted Net Loss on a per share basis using the weighted average shares outstanding.
EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP. We believe EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS when combined with net loss and net loss per share are beneficial to an investor’s complete understanding of our operating performance. We believe that the use of EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate EBITDA, Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS in the same fashion.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We manage our business utilizing EBITDA and Adjusted EBITDA as supplemental performance measures.
ADJUSTED EBITDA RECONCILIATION TABLE | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
The following table reconciles net loss to EBITDA and Adjusted EBITDA: | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||
Adjusted | Adjusted | Adjusted | Adjusted | |||||||||||||||
EBITDA | EBITDA | Net Loss | EBITDA | EBITDA | Net Loss | |||||||||||||
Net loss | $ | (29,045) | $ | (29,045) | $ | (29,045) | $ | (80,231) | $ | (80,231) | $ | (80,231) | ||||||
Interest expense (income) | (1,218) | (1,218) | — | 60 | 60 | — | ||||||||||||
Depreciation | 3,211 | 3,211 | — | 2,534 | 2,534 | — | ||||||||||||
Gain on fair value change in contingent earnout shares liability | — | (129) | (129) | — | (3,175) | (3,175) | ||||||||||||
Gain on fair value change in warrant and derivative liability | — | (28,598) | (28,598) | — | — | — | ||||||||||||
Loss on fair value change of derivative asset | — | 2,205 | 2,205 | — | — | — | ||||||||||||
Loss on fair value change of convertible debt | — | (8,064) | (8,064) | — | — | — | ||||||||||||
Loss on extinguishment of debt | — | 456 | 456 | — | 531 | 531 | ||||||||||||
Other expense, net | — | (164) | (164) | — | (358) | (358) | ||||||||||||
Stock-based compensation | — | 6,755 | 6,755 | — | 18,593 | 18,593 | ||||||||||||
— | — | — | — | 1,500 | 1,500 | |||||||||||||
Non-cash legal settlement (Note 12) | — | — | — | — | — | — | ||||||||||||
Adjusted Non-GAAP amount | $ | (27,052) | $ | (54,591) | $ | (56,584) | $ | (77,637) | $ | (60,546) | $ | (63,140) | ||||||
US GAAP net loss per share | ||||||||||||||||||
Basic | N/A | N/A | (0.04) | N/A | N/A | (0.25) | ||||||||||||
Diluted | N/A | N/A | (0.04) | N/A | N/A | (0.25) | ||||||||||||
Adjusted Non-GAAP net loss per share (Adjusted EPS) – Pre Stock Split | ||||||||||||||||||
Basic | N/A | N/A | (0.08) | N/A | N/A | (0.19) | ||||||||||||
Diluted | N/A | N/A | (0.08) | N/A | N/A | (0.19) | ||||||||||||
Adjusted Non-GAAP net loss per share (Adjusted EPS) – Post Stock Split | ||||||||||||||||||
Basic | N/A | N/A | (1.73) | N/A | N/A | (4.45) | ||||||||||||
Diluted | N/A | N/A | (1.73) | N/A | N/A | (4.45) | ||||||||||||
Weighted-average common shares outstanding | ||||||||||||||||||
Basic | N/A | N/A | 753,023 | N/A | N/A | 326,130 | ||||||||||||
Diluted | N/A | N/A | 753,023 | N/A | N/A | 326,130 |
Year Ended | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Adjusted | Adjusted | Adjusted | Adjusted | ||||||||||||||
EBITDA | EBITDA | Net Loss | EBITDA | EBITDA | Net Loss | ||||||||||||
Net loss | $ (302,621) | $ (302,621) | $ (302,621) | $ (487,694) | $ (487,694) | $ (487,694) | |||||||||||
Interest expense (income) | 5,537 | 5,537 | — | 2,249 | 2,249 | — | |||||||||||
Depreciation | 13,843 | 13,843 | — | 11,554 | 11,554 | — | |||||||||||
Gain on fair value change in contingent earnout shares liability | — | (2,972) | (2,972) | — | (26,044) | (26,044) | |||||||||||
Gain on fair value change in warrant and derivative liability | — | (68,689) | (68,689) | — | — | — | |||||||||||
Loss on fair value change of derivative asset | — | 5,966 | 5,966 | — | — | — | |||||||||||
Loss on fair value change of convertible debt | — | 61,551 | 61,551 | — | — | — | |||||||||||
Loss on extinguishment of debt | — | 30,717 | 30,717 | — | 4,626 | 4,626 | |||||||||||
Other expense, net | — | 2,092 | 2,092 | — | 62 | 62 | |||||||||||
Stock-based compensation | — | 30,206 | 30,206 | — | 79,573 | 79,573 | |||||||||||
— | — | — | — | 1,500 | 1,500 | ||||||||||||
Non-cash legal settlement (Note 12) | — | — | — | — | 5,532 | 5,532 | |||||||||||
Adjusted Non-GAAP amount | (283,241) | (224,370) | (243,750) | (473,891) | (408,642) | (422,445) | |||||||||||
US GAAP net loss per share | |||||||||||||||||
Basic | N/A | N/A | (0.53) | N/A | N/A | (1.81) | |||||||||||
Diluted | N/A | N/A | (0.53) | N/A | N/A | (1.81) | |||||||||||
Adjusted Non-GAAP net loss per share (Adjusted EPS) - Pre Stock Split | |||||||||||||||||
Basic | N/A | N/A | (0.42) | N/A | N/A | (1.57) | |||||||||||
Diluted | N/A | N/A | (0.42) | N/A | N/A | (1.57) | |||||||||||
Adjusted Non-GAAP net loss per share (Adjusted EPS) - Post Stock Split | |||||||||||||||||
Basic | N/A | N/A | (9.73) | N/A | N/A | (36.02) | |||||||||||
Diluted | N/A | N/A | (9.73) | N/A | N/A | (36.02) | |||||||||||
Weighted-average common shares outstanding | |||||||||||||||||
Basic | N/A | N/A | 576,199 | N/A | N/A | 269,768 | |||||||||||
Diluted | N/A | N/A | 576,199 | N/A | N/A | 269,768 | |||||||||||
Forward-Looking Statements
The information in 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. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding access to capital, estimates and forecasts of financial and performance metrics, expectations and timing related to commercial product launches and the achievement of operational milestones, including the ability to meet and/or accelerate anticipated production timelines,
Contacts:
Media Relations
Press@canoo.com
Investor Relations
IR@canoo.com
Source:
2024 GlobeNewswire, Inc., source