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Canoo Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results

JUSTIN, Texas, April 01, 2024 (GLOBE NEWSWIRE) — Canoo Inc. (Nasdaq: GOEV), a high-tech advanced mobility company, today announced its financial results for the fourth quarter and fiscal year 2023.

“In Q4 2023, we started our first commercial fleet customer deliveries from our Oklahoma City manufacturing facility while we continue to prepare the site for our 20,000 unit run-rate production target. Our strategy to purchase manufacturing assets at deep discounts creates immediate shareholder value. We recently announced our OKC facility has received FTZ designation. With positive customer validation, we are now focused on harmonizing our supply chain to align with our step level manufacturing goals while maintaining disciplined capital allocation,” said Tony Aquila, Investor, Executive Chairman and CEO of Canoo.

Fourth Quarter & Recent Business Updates:

Fourth Quarter and Fiscal Year 2023 Financial Highlights

2024 Business Outlook

Based upon our current projections, Canoo expects:

Conference Call Information

Canoo will host a conference call to discuss the results today, April 1, 2024, at 5:00 PM ET.

To listen to the conference call via telephone dial (877) 407-9169 (U.S.) and (201) 493-6755 (international callers/U.S. toll) and enter the conference ID number 13744832. To listen to the webcast, please click here. A telephone replay will be available until April 15, 2024, at (877) 660-6853 (U.S.) and (201) 612-7415 (international callers/U.S. toll), with Conference ID number 13744832. To listen to the webcast replay, please click here.

About Canoo

Canoo Inc.’s (NASDAQ: GOEV) mission is to bring EVs to Everyone. The company has developed breakthrough electric vehicles that are reinventing the automotive landscape with their pioneering technologies, unique design, and business model that spans multiple owners across the full lifecycle of the vehicle. Canoo designed a modular electric platform that is purpose-built to maximize the vehicle interior space and is customizable for all owners in the vehicle lifecycle, to support a wide range of business and consumer applications.

Canoo has teams in California, Texas, Oklahoma, and Michigan. For more information, visit www.canoo.com. For Canoo press materials, visit press.canoo.com. For investors, visit investors.canoo.com.

 
Fourth Quarter 2023 Financial Results
 
CANOO INC.
 
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
 
    December 31,   December 31,
    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, $0.0001 par value; 10,000 shares authorized, 45 and no shares issued and outstanding as of December 31, 2023 and 2022, respectively     5,607    
             
Stockholders’ equity            
Common stock, $0.0001 par value; 2,000,000 and 500,000 shares authorized as of December 31, 2023 and 2022, respectively; 864,587 and 355,388 issued and outstanding as of December 31, 2023 and 2022, respectively     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
CANOO INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
 
    Three Months Ended
   
    December 31,
  Year Ended December 31,
    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
CANOO INC.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
    Three Months Ended
   
    December 31,
  Year Ended December 31,
    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.

 
CANOO INC.
 
ADJUSTED EBITDA RECONCILIATION TABLE
(in thousands)
 
The following table reconciles net loss to EBITDA and Adjusted EBITDA:
 
    Three Months Ended December 31,
    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
SEC settlement (Note 12)                     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 December 31,
    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
SEC settlement (Note 12)           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, Canoo’s ability to capitalize on commercial opportunities, current or anticipated customer orders, and expectations regarding the development of facilities. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Canoo’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Canoo. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; Canoo’s ability to continue as a going concern; Canoo’s ability to access existing and future sources of capital via debt or equity markets, which will impact execution of its business plans and could require Canoo to terminate or significantly curtail its operations; Canoo’s history of losses; Canoo’s ability to adequately control the costs associated with its operations; Canoo’s ability to successfully build and tool its manufacturing facilities, establish or continue a relationship with a contract manufacturer or failure of operation of Canoo’s facilities; the rollout of Canoo’s business and the timing of expected business milestones and commercial launch; future market adoption of Canoo’s offerings; risks related to Canoo’s go-to-market strategy and manufacturing strategy; the effects of competition on Canoo’s future business, and those factors discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Canoo’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 1, 2024, as well as its past and future Quarterly Reports on Form 10-Q and other filings with the SEC, copies of which may be obtained by visiting Canoo’s Investors Relations website at investors.canoo.com or the SEC’s website at www.sec.gov. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Canoo does not presently know or that Canoo currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Canoo’s expectations, plans or forecasts of future events and views as of the date of this press release. Canoo anticipates that subsequent events and developments will cause Canoo’s assessments to change. However, while Canoo may elect to update these forward-looking statements at some point in the future, Canoo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Canoo’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Contacts:

Media Relations
Press@canoo.com

Investor Relations
IR@canoo.com


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