ELECTRA MECCANICA VEHICLES CORP. REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS
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ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) ("Electra Meccanica" or the "Company"), a designer and manufacturer of electric vehicles, today reported its financial results for the three-months ended September 30, 2018.
Recent Operational Highlights:
Q3 2018 Financial Summary
-- General and administrative expenses for the three months ended September 30, 2018, were CAD$1.7 million, compared to CAD$0.6 million in the corresponding quarter ended September 30, 2017. This increase is primarily due to increased rent and office expenses, legal and professional fees, consulting fees and increased salary expenses.
-- Research and development expenses increased to CAD$0.9 million for the three months ended September 30, 2018, up from CAD$0.8 million in the corresponding quarter ended September 30, 2017. This is primarily due to costs related to the development of the SOLO.
-- Operating loss for the three months ended September 30, 2018 increased to CAD$3.9 million, compared to an operating loss of $2.2 million in the corresponding quarter ended September 30, 2017.
-- Net loss for the three months ended September 30, 2018 was CAD$2.9 million, compared to CAD$3.0 million in the corresponding quarter ended September 30, 2017.
-- Cash used in operations was CAD$5.0 million, compared with cash used in operations of CAD$1.5 million in the corresponding quarter ended September 30, 2017.
-- Cash and cash equivalents and short-term deposits were CAD$12.1 million as of September 30, 2018, compared with CAD$3.5 million as of September 30, 2017. Subsequent to the close of the third quarter, the Company completed an USD$8.5 million registered direct offering.
Management Commentary
"We have made significant progress towards our production goals in the third quarter and are on the cusp of launching mass-production SOLO vehicles in the United States," said Jerry Kroll, CEO of Electra Meccanica. "Alongside a successful debut at the AltCar Expo in Santa Monica where we garnered hundreds of test drive requests, we saw initial deliveries of the SOLO arrive at our new Los Angeles dealership in order to facilitate customer test drives. We believe that our initial vehicles in the Los Angeles market will continue to garner significant consumer and media interest, steadily generating new sales leads.
"Additionally, I am extremely proud to announce immensely positive results from several crash tests we've conduced over the past few months. In one side-crush test in Canada, the SOLO withstood nearly seven times more pressure than the required minimum. We believe these positive test results are indicative of the high engineering standards that we hold ourselves to, as customer safety remains our highest priority. "
"Given our capital-light production model - which substantially reduces production and execution risk - as well as our disciplined cash management and robust balance sheet, we are now in a stronger position than ever to deliver on our promise of delivering our first production vehicles in the fourth quarter, as well as delivering 5,000 production vehicles by the end of 2019. With a strong pre-order queue of over 64,000 units representing $2.4 billion in potential sales at our expected vehicle MSRPs, there remains a massive market to address as we scale vehicle production with our strategic manufacturing partner. We look forward to providing our valued pre-order customers with a superior driving experience in the short term, and believe we are well positioned to create notable shareholder value as we continue to execute upon our strategic objectives," concluded Kroll.
