On April 1, Jia Yueting's car manufacturing business in the United States encountered new troubles again, and Faraday Future Automobile Company filed a form with the U.S. Securities Commission (SEC) on March 31, informing the other party that they would not be able to file the annual Form 10-K (i.e., annual return) for the year ended December 31, 2021 within the stipulated deadline.
Jia Yueting
In addition, Faraday Future Motors also revealed that they submitted a Form 8-K (current report) to the SEC on February 1, 2022, after which some members of Faraday Future's management team and company employees received a security notice and subpoena from SEC staff in the United States. The SEC said it had opened a formal investigation into matters investigated by the Special Committee.
The reason for the investigation was that Faraday Future was suspected of releasing inaccurate information to investors.
Faraday Future also said: "We have previously contacted the SEC on the special commission's investigation and are now fully cooperating with the SEC investigation." ”
The SEC had approved an exception clause for Faraday Future, which required Faraday Future to file third quarter Form 10-Q (Quarterly Return) and Form 10-K (Annual Return) on or before May 6, 2022. Faraday Future said it is working to finalize and prepare to submit the statements as soon as possible.
In addition, Faraday Future also disclosed their main financial position in 2021:
The annual operating loss as at December 31, 2021 is expected to be between $345 million and $385 million. The annual operating loss for the same period in 2020 was $65 million, and the operating loss in 2021 widened by at least 431% year-on-year.
They explained that the increase in operating losses was primarily due to increased costs for full commercial production at the Company's Hanford, California facility, increased costs for developing and producing future electric vehicle models, additional accrued costs in certain corporate lawsuits, and losses on the disposal of assets related to the abandonment of certain FF91 program assets,primarily supplier tools, machinery and equipment.
Jia Yueting test drove FF91
Faraday Future said it improved the redesign of the FF91 automotive components and implemented the FF91's cost reduction program.
In 2021, Faraday Future's net loss will be between $510 million and $550 million, compared to an annual net loss of $147 million for the same period in 2020, an increase of at least 247% year-over-year.
Faraday Future expects its cash and cash equivalents and restricted cash to be approximately $530 million as of December 31, 2021, compared to approximately $2 million for the company as of December 31, 2020.
In its announcement, Faraday wrote:
Since its inception, the Company has accumulated operating losses and negative cash flow from operating activities, and is expected to have accumulated losses of approximately $2.9 billion as of December 31, 2021. The Company expects to continue to incur significant operating losses for the foreseeable future. Based on the Company's recurring operating losses since its inception, the anticipation of continued operating losses for the foreseeable future, and the need to raise additional capital to fund future operations, management concluded that there were significant doubts about the Company's ability to continue as a going concern for a period of one year from the expected release date of the Company's financial statements as of December 31, 2021.
Behind the difficulty in financial reports and the difficulties in the company's operation, Faraday Future has also replaced 3 CFOs in more than 1 year. The current CFO, Betsy Love, just took office in early March.
Jia Yueting's Faraday Future Motors Company landed on the NASDAQ stock market through SPAC on July 22, 2021, and its stock price reached $20.75 at its peak, but its current stock price is only $4.99, corresponding to a market value of $1.619 billion.
Jia Yueting and Bi Fukang
Jia Yueting and the current CEO Bi Fukang have repeatedly mentioned that the mass production of FF91 will be achieved on July 22, 2022, and there are less than 4 months left, and before that, they also need to complete the release of the annual financial report on May 6, otherwise NASDAQ is likely to punish them.
In short, although Jia Yueting's company has been listed, the future development prospects are still not clear.