On May 6, Faraday Future Intelligent Electric Inc., a global shared intelligent mobility ecosystem based in California, USA. (FF or Faraday Future) today announced its financial results for the third quarter ended September 30, 2021, and said it would hold a conference call open to investors after submitting its first quarter 2022 results in mid-May.
As of September 30, 2021, the balance of cash and cash equivalents on FF's books was $666 million. Cash balance as of March 31, 2022 was $276 million, including $97 million in notes and planned interest payments. Operating expenses for the third quarter were $186 million, primarily due to increased investment in the Hanford manufacturing facility in preparation for full commercial production.
In addition, FF's third-quarter net loss was $304 million, compared to a net loss of $33 million in the year-ago quarter. The increase in net loss was primarily due to a significant increase in operating expenses, losses on changes in the fair value of notes payable, notes payable denominated at fair value, losses on fair value changes in warrant liabilities, and losses arising from the processing of related party notes payable, notes payable and supplier payments payable.
"The third quarter of 2021 is significant for Faraday Future as we completed our merger with PSAC as a public company, with sufficient capital and a good balance sheet at the end of the third quarter." Dr. Fukang Bi, global CEO of the company, said, "We have made great progress in the construction of our manufacturing facility in Hanford, California, and the construction of the production area is progressing as planned. In a challenging supply chain environment, we continue to work closely with our supply chain partners and make outstanding progress. We have strengthened our management team by hiring key employees who help us navigate the challenging logistics environment, and we have strengthened our capabilities in other key areas such as manufacturing, development, finance, and more. ”
Dr. Bifukang further emphasized: "After the end of the third quarter, we achieved the first four milestones to SOP at our manufacturing facility in Hanford. We remain confident in delivering the FF 91 in the third quarter of 2022 and firmly believe that Faraday Future is positioned to redefine the most advanced smart electric vehicles. ”
There are reasons for the delay in the release of the Q3 quarterly report
The delay in the release of FF's Q3 2021 quarterly report is due to the investigation work previously announced by the Company's Special Committee.
In October last year, a short-selling agency maliciously shorted FF. In response to this short report, the FF Board of Directors deliberately set up a special committee composed of independent directors, with the assistance of independent legal counsel Kirkland & Ellis LLP law firm and independent audit firm Alvarez & Marsal, through several months of internal self-examination, and finally showed that FF's information disclosure was correct, clear and transparent.
Dr Bi Fukang said: "A special committee of independent directors completed a previously announced investigation into allegations related to historical disclosure and submitted its findings and recommendations to the Company's Board of Directors. The Board of Directors accepted the findings and the implementation of the remedial measures was proceeding smoothly. On behalf of the entire management team, I would like to thank the Special Committee, our financial and legal advisors, and the members of the Board of Directors for their hard work and their commitment to bringing the company to the highest ethical and ethical standards. I would also like to thank all my colleagues, suppliers and investors for their support and trust. I believe this review and the changes we make will help us build a stronger, better company. ”
FF 91 mass production delivery smoothly Booked vehicles have exceeded 400
The FF Q3 quarterly report shows that the company completed very important work in the third quarter ended September 30, 2021. One of the most important of these was the completion of the acquisition Corp with special purpose acquisition company Property Solutions. ("PSAC") merge.
After the successful merger and listing, FF quickly started the mass production and delivery of FF 91. Not only has it completed a 2,270-mile vehicle testing and validation trip across U.S. Route 66, but it has also announced plans to partner with Qmerit, the largest supplier of electric vehicle charging network installations in the United States. In addition, the company has hired new leadership members, as well as large-scale recruitment, and a growing team: including senior directors of energy storage and charging; heads of software engineering, ADAS and autonomous driving; and heads of vehicle quality.
The financial report shows that FF also made very significant progress after the third quarter. From September 30, 2021 to December 31, 2021, the FF Hanford plant successfully completed the first, second, third and fourth milestones, laying a solid foundation for the smooth delivery of FF 91 in the third quarter of this year. The Hanford manufacturing plant covers an area of about 1.1 million square feet and is expected to have the capacity to support the production of 10,000 cars per year when completed. According to the current schedule, delivery of FF 91 will begin in the third quarter of 2022.
In the earnings report, FF also revealed that the company has signed a lease agreement for the flagship store in Beverly Hills, California. In addition, FF announced that the number of vehicles booked as of March 31, 2022 was 401 units. When booking the FF 91 Futurist Alliance, a $5,000 deposit is required for U.S. users and a 50,000 RMB deposit is required for Chinese users. When booking FF 91 Futurist, a $1,500 deposit is required for U.S. users and a 20,000 RMB deposit is required for Chinese users.
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