DDL is the first productive force!
Jia Yueting is almost about to cede the actual control of Faraday Future (hereinafter referred to as FF Auto) After more than half a year of internal investigation, finally rushed to the DEADLINE notified by nasdaq to come up with a financial report for the third quarter of 2021.
According to the financial report data, the net loss of FF Automobile in the third quarter of last year soared to $304 million year-on-year, and the cumulative loss in the first three quarters of last year reached $432 million.
For the soaring loss in a single quarter, FF Auto explained that it was mainly affected by the large increase in operating expenses. In addition, losses on changes in the fair value of related party notes payable, notes payable denominated at fair value, fair value changes in warrant liabilities, and losses arising from the handling of related party notes payable, notes payable and supplier payments payable were also important reasons for the further expansion of losses.
Specifically, FF Auto's operating expenses in the third quarter of last year were $186 million, which was mainly used for the production and manufacturing of the Hanford plant.
As of September 30, 2021, FF Auto's cash and cash equivalents were $666 million, although the cash balance on the company's books had fallen to $276 million as of the end of the first quarter of this year, which also included the repayment of $97 million notes and accrued interest on schedule.
At the end of November last year, FF's delay in filing its third-quarter financial report caused Nasdaq to send a letter reminding it to submit a report within 60 calendar days. According to NASDAQ's rules, if FF does not submit relevant reports within the prescribed time limit, it may face the risk of delisting.
Shortly after the warning letter, Chuck McBride, the newly inaugurated chief financial officer, alerted the company on a conference call about the company's losses and cash position, while saying that FF could not file earnings until the internal investigation into the allegations against short-selling agency J Capital Research was concluded.
Nasdaq has since issued an ultimatum: if FF fails to file Form 10-Q for the third quarter of 2021 and Form 10-K for the third quarter of 2021 and Form 10-K for the third quarter of 2021 by May 6, 2022, it will be delisted.
Judging from the current results, FF did "as promised" on the verge of delisting, submitting documents required by NASDAQ.
FF also completed a final internal investigation in April this year and announced the results of the penalty - Jia Yueting's salary reduction of 25% and no longer in the role of executive officer, CEO Carsten Breitfield's salary reduction (annual base salary) of 25%; chairman Brian Krolicki stepped down, vice president and general counsel Jarret Johnson left, and Wang Jiawei, a former FF core executive, vice president of the capital department and Jia Yueting's nephew, was also suspended.
With his nephew suspended without pay and retired to chief product officer, Jia Yueting's "suffocated for dreams" FF car looks infinitely close to the brink of collapse — as of press time today, FF closed at $2.37 per share, down 85.89 percent from $16.8 per share when it went public in July last year, and its market value evaporated by nearly $4.3 billion.
However, Bi Fukang still stressed that the Hanford plant is ready for full commercial production, and the set goal of launching FF91 in the third quarter of this year has not changed.
When a farce is repeated between "follow-up" and "dispersal", it doesn't seem very important how it ends. FF submitted the financial report of the third quarter of last year, and the next time, there is the 2021 annual report, the 2022 quarterly report... Before the FF91 was truly mass-produced, Jia Yueting and the "autobots" behind him who were put up had many rounds of final struggle.