The company is experiencing cash flow problems, there is no near-term revenue, and they warn that they may not have enough money to stay in business.
Canoo Technologies, the electric vehicle company that has a contract with NASA, has warned that they might run out of money to stay in business.
In a Securities and Exchange Commission (SEC) filing last May 10, Canoo stated that “Our management has performed an analysis of our ability to continue as a going concern and has identified substantial doubt about our ability to continue as a going concern.”
“Our current business plans require a significant amount of capital. If we are unable to obtain sufficient funding or do not have access to capital, we may not be able to execute our business plans and our prospects, financial condition, and results of operations could be materially adversely affected.” It is further added in the SEC filing.
In its first-quarter reports, Canoo reported a net loss of $125.4 million for the first three months of 2022, with net cash used in operating activities of $120.3 million. The company stated that they built just 39 Gamma vehicles.
In its first-quarter earnings results conference call, Canoo executives have addressed their concerns over the issue, but CEO Tony Aquila has provided details on raising a $600 million in funding for its projects.
Aquila stated, “To start, we entered into a $250 million equity purchase agreement with financing partner Yorkville Advisors. Next, we have a commitment for a $50 million pipe from an existing shareholder, further demonstrating long-term support and belief in the company. We also filed a $300 million shelf, bringing our total accessible capital to $600 million, optimizing our financial needs to SOP.”—according to a transcript by Seeking Alpha.
Canoo Technologies has been selected by NASA for Artemis ground crew vehicles, which is expected to be the longest-lasting space exploration program in history. They will provide a modern version of “Astrovan” that NASA had been using to transport NASA astronauts for most of the shuttle program.
Canoo will deliver multiple customized all-electric LV models to NASA by June 2023. According to Aquila, these will be the first electric NASA crude transport vehicles.
