Fisker Inc. Announces First Quarter 2022 Financial Results

LOS ANGELES–()–Fisker Inc. (NYSE: FSR) (“Fisker”) — passionate creator of the world’s most sustainable electric vehicles and advanced mobility solutions — today announced its financial results for the first quarter ended March 31, 2022.

“We continued to make rapid progress in Q1 toward on-schedule Fisker Ocean start of production on November 17, 2022. I would like to thank our Fisker team members, suppliers, and partners for collaboratively helping us advance both the Fisker Ocean and PEAR platforms while navigating the volatile supply chain environment,” stated Henrik Fisker, Chairman and Chief Executive Officer of Fisker.

“As customers discover more about the upcoming Fisker Ocean, demand continues to accelerate. Early indications suggest many customers want the premium trim levels, which highlights the vehicle’s compelling features. I just returned from Europe where I had the opportunity to put the latest Fisker Ocean prototype through its paces, and it delivered amazing handling and performance with just over six months until start of production,” Fisker added.

First Quarter 2022 Business Highlights:

  • Rapid progress moving from simulated to physical testing and validation across multiple workstreams. 23 out of 55 Fisker Ocean complete prototypes built in Magna’s production facility. Completed extensive winter testing in Sweden in March, durability testing in high-speed/high-load conditions in April, and ongoing IIHS crash testing.
  • Fisker made its European debut of the Fisker Ocean at Mobile World Congress (MWC) in February and confirmed estimates for EU range and indicative European pricing. Following MWC, Fisker kicked off European marketing efforts: the Fisker Ocean has been on display at the Hamburg Airport in Germany and Scandinavia’s premier luxury destination Illums Bolighus in Copenhagen and expects to open its first European experience center in Munich later this year.
  • On March 31st, Fisker announced that reservations had exceeded 40,000 for the Fisker Ocean SUV. Fisker does not expect to raise prices because of inflationary or commodity-cost pressures through 2023, but cannot guarantee pricing will remain static for vehicle orders received after the 40,000-reservation number or vehicles produced from 2024 onwards. Throughout 2023, Fisker will prioritize and manufacture all Fisker Ocean One and Extreme orders, with any additional capacity being then allocated to Fisker Ocean Ultra and Sport.
  • Fisker expects to begin contacting reservation holders later in May to prepare for the Fisker Ocean One launch edition pre-orders opening on July 1st. The Fisker Ocean One will be limited to 5,000 vehicles and will be fully loaded with all the features of the Fisker Ocean Extreme plus some signature features to stand out even further.
  • Fisker published its Environmental Policy well in advance of November 2022 start of production date, keeping with its commitment to sustainability. Fisker intends to publish its first annual ESG report this summer.
  • More than $1 billion of cash and cash equivalents at quarter-end was in line with internal expectations and is sufficient to fund the production launch of the Fisker Ocean in November 2022.

Recent Updates:

  • Affirming the expected timing plan for Fisker Ocean start-of-production on November 17, 2022.
  • Continued progress on the development of Fisker PEAR. Beginning to transition engineering and purchasing teams to PEAR.
  • Fisker Ocean reservations are over 45,000 as of May 2, 2022 (net of cancellations), including 1,600 fleet reservations, representing up to $2.5 billion in potential revenue. This compares to 31,000 as of our Q4 2021 earnings call and 18,600 as of our Q3 2021 earnings call. The net daily retail reservation rate has continued at an accelerated rate compared to FY2021 and is on an annualized pace of over 68,000. Fisker PEAR reservations are over 2,500.
  • As Fisker Ocean is entering into pre-production, we have intensified our “hyper” product plan development. PEAR design concept has been signed off and consists of at least three derivatives to be able to reach 1 million units a year by 2027.
  • Our third vehicle is codenamed “Project Ronin”. We are working on a new radical integrated battery pack technology, where we expect to deliver the world’s longest range in a production vehicle. We aim for this vehicle to redefine the luxury sports car segment, with a new concept that currently does not exist. We expect to show the “Project Ronin” in August 2023 with production to follow in the second half of 2024.
  • Fisker and Magna Steyr created a supply chain task force to ensure each supplier’s launch and ramp plans are aligned with Magna Steyr’s and to proactively address any supply chain challenges.
  • Established India headquarters in the southern city of Hyderabad, Telangana State. Fisker’s expansion into India represents both a strategic market opportunity and a significant boost to global engineering capabilities, specifically software development and embedded electronics, virtual vehicle development support functions, data analytics, and machine learning. The Hyderabad office will work alongside the Fisker engineering and product development facilities in California. Fisker expects to hire 200 employees in the India headquarters by year-end, which is already up and running with initial staff hired.
  • Fisker continues to expand its global footprint with 15 subsidiaries formed or in progress. Building on our existing presence in Germany, Austria, and the U.K., we have formed subsidiaries in India, China, France, Denmark and Canada in recent months with an additional half dozen countries currently underway.
  • Recruitment continues at a strong pace. Fisker currently has a global team of 455 as of May 2, 2022, with new hiring in US, Europe, and India projected to boost that number to over 800 by the end of 2022.

First Quarter 2022 Financial Highlights:

  • Cash and cash equivalents of $1.04 billion as of March 31, 2022.
  • Loss from operations totaled $123.5 million, including $5.1 million of stock-based compensation expense.
  • Net loss totaled $122.1 million and $0.41 loss per share.
  • Net cash used in operating activities totaled $106.0 million and cash paid for capital expenditures totaled $45.8 million.
  • Weighted average shares outstanding totaled 296.5 million for the three months ended March 31, 2022.

2022 Business Outlook

The following information reflects Fisker’s expectations for key non-GAAP operating expenses and capital expenditures for the full-year ending December 31, 2022. Fisker is projecting the total of these items to be within a range of $715 million to $790 million, consistent with our prior expectations last provided in the Q4 and Full Year 2021 Earnings Release.

Expense item USD, millions
Research & Development (Non-GAAP)1

$ 330 – 380

Selling, General, and Administrative (Non-GAAP)1

$ 105 – 120

Total Operating Expenses (Non-GAAP)1

$ 435 – 500

 

Capital Expenditures

$ 280 – 290

1Excludes stock-based compensation expense. A reconciliation to the corresponding GAAP amount is not provided as the quantification of stock-based compensation excluded from the non-GAAP measure, which may be significant, cannot be reasonably calculated or predicted without unreasonable efforts. The Non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price volatilities that are not currently ascertainable.

Conference Call Information

Fisker Inc. will host a conference call to discuss the results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today, May 4, 2022. The live audio webcast, along with supplemental information, will be accessible on Fisker’s Investor Relations website at https://investors.fiskerinc.com. A recording of the webcast will also be available following the conference call.

Use of Non-GAAP Financial Measures (Unaudited)

This press release and the accompanying tables references certain non-generally accepted accounting principles in the United States (GAAP) financial measures, including non-GAAP adjusted loss from operations, non-GAAP selling, general, and administrative expense, non-GAAP research and development expense and non-GAAP total operating expenses. These non-GAAP financial measures differ from their directly comparable GAAP financial measures due to adjustments made to exclude stock-based compensation expense. None of these non-GAAP financial measures is a substitute for or superior to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

Fisker believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about Fisker in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures Fisker uses may not be directly comparable to similarly titled measures of other companies. Therefore, both GAAP financial measures of Fisker’s financial performance and the respective non-GAAP measures should be considered together. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure in the tables below.

Disclosure Information

Fisker uses the investor relations section on its website as a means of complying with its disclosure obligations under Regulation FD. It also uses various social media channels as a means of disclosing information about Fisker and its products to its customers, investors and the public (e.g., @fiskerinc, @fiskerofficial, #fiskerinc, #henrikfisker and #fisker on Twitter, Facebook, Instagram, YouTube, TikTok and LinkedIn). Accordingly, investors should monitor Fisker’s investor relations website and social media channels in addition to following Fisker’s press releases, SEC filings, and public conference calls and webcasts.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by developing the most emotionally desirable and eco-friendly electric vehicles on Earth. Passionately driven by a vision of a clean future for all, the company is on a mission to become the No. 1 e-mobility service provider with the world’s most sustainable vehicles. To learn more, visit www.Fiskerinc.com – and enjoy exclusive content across Fisker’s social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn. Download the revolutionary new Fisker mobile app from the App Store or Google Play store.

Forward-Looking Statements

This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, the statements quoted by our Chief Executive Officer, the timing of start of production of the Fisker Ocean, the expected number of Fisker employees at 2022 year-end, the sufficiency of our cash to fund production launch of the Fisker Ocean, the opening of our first European experience center, and statements regarding Fisker’s future performance under ” 2022 Business Outlook,” the reported financial results for the first quarter 2022, which are subject to completion of Fisker’s internal review, and other future events that involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: Fisker’s limited operating history; Fisker’s ability to enter into additional manufacturing and other contracts with Magna, or other OEMs or tier-one suppliers in order to execute on its business plan; the risk that OEM and supply partners do not meet agreed upon timelines or experience capacity constraints; Fisker may experience significant delays in the design, manufacture, regulatory approval, launch and financing of its vehicles; Fisker’s ability to execute its business model, including market acceptance of its planned products and services; Fisker’s inability to retain key personnel and to hire additional personnel; competition in the electric vehicle market; Fisker’s inability to develop a sales distribution network; and the ability to protect its intellectual property rights; and those factors discussed in Fisker’s Annual Report on Form 10-K, under the heading “Risk Factors,” filed with the Securities and Exchange Commission (the “SEC”), as supplemented by Quarterly Reports on Form 10-Q, and other reports and documents Fisker files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Fisker undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

First Quarter 2022 Financial Results

Fisker Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(amounts in thousands, except share and per share data)

 
Three Months Ended
Mar 31, 2022 Dec 31, 2021 Mar 31, 2021
 
Revenue

$

12

 

$

41

 

$

22

 

Costs of goods sold

 

11

 

 

40

 

 

17

 

Gross margin

 

1

 

 

1

 

 

5

 

 
Operating costs and expenses:
General and administrative

 

21,992

 

 

18,400

 

 

5,832

 

Research and development

 

101,460

 

 

115,049

 

 

27,271

 

Total operating costs and expenses

 

123,452

 

 

133,449

 

 

33,103

 

 
Loss from operations

 

(123,451

)

 

(133,448

)

 

(33,098

)

 
Other income (expense):
Other income (expense)

 

(371

)

 

(304

)

 

75

 

Interest income

 

265

 

 

212

 

 

156

 

Interest expense

 

(4,383

)

 

(4,399

)

 

 

Change in fair value of embedded derivative

 

 

 

 

 

(145,249

)

Unrealized gain on equity investment

 

5,120

 

 

 

 

 

Foreign currency gain (loss)

 

746

 

 

(493

)

 

1,273

 

Total other income (expense)

 

1,377

 

 

(4,984

)

 

(143,745

)

 
Net loss

$

(122,074

)

$

(138,432

)

$

(176,843

)

 
Basic and Diluted net loss per share

$

(0.41

)

$

(0.47

)

$

(0.63

)

Basic and Diluted weighted average common shares outstanding

 

296,508,619

 

 

296,706,320

 

 

279,837,563

 

Fisker Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands, except share and per share data)

 
As of:
March 31, 2022 December 31, 2021
Current assets:
Cash and cash equivalents

$

1,042,562

$

1,202,439

Prepaid expenses and other current assets

 

32,192

 

30,423

Total current assets

 

1,074,754

 

1,232,862

 
Non-current assets:
Property and equipment, net

 

122,662

 

85,643

Right of use asset, net

 

17,385

 

18,285

Other non-current assets

 

24,393

 

24,637

Investment in Allego

 

15,120

 

Intangible asset

 

238,219

 

231,525

Total noncurrent assets

 

417,779

 

360,090

Total assets

$

1,492,533

$

1,592,952

 
Current liabilities:
Accounts payable

$

10,890

$

28,143

Accrued expenses

 

102,377

 

79,634

Lease liabilities (short term)

 

4,612

 

4,552

Total current liabilities

 

117,879

 

112,329

 
Non-current liabilities:
Customer deposits

 

11,055

 

6,300

Lease liabilities

 

14,021

 

14,933

Convertible notes

 

659,552

 

659,348

Total non-current liabilities

 

684,628

 

680,581

Total liabilities

 

802,507

 

792,910

 
Stockholder’s equity (deficit)

 

690,026

 

800,042

Total liabilities and equity

$

1,492,533

$

1,592,952

Fisker Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(amounts in thousands, except share and per share data)

 
Three Months Ended March 31,

2022

2021

Cash flows from Operating Activities
Net loss

$

(122,074

)

$

(176,843

)

Stock-based comp

 

5,065

 

 

817

 

Depreciation and Amortization

 

379

 

 

93

 

Accretion of debt issuance costs

 

204

 

 

 

Change in fair value of derivatives

 

 

 

145,249

 

Unrealized gain on equity investment

 

(5,120

)

 

 

Change in operating assets and liabilities

 

15,402

 

 

1,692

 

Other operating activities

 

156

 

 

182

 

Net cash used in operating activities

 

(105,988

)

 

(28,810

)

 
Cash flows from Investing Activities
Investment in Allego

 

(10,000

)

 

 

Purchase of long-lived assets

 

(45,750

)

 

(65,665

)

Net cash used in investing activities

 

(55,750

)

 

(65,665

)

 
Cash flows from Financing Activities
Proceeds from exercise of warrants/stock options

 

 

 

88,638

 

Proceeds from exercise of stock options

 

1,861

 

 

101

 

Net cash provided by financing activities

 

1,861

 

 

88,739

 

 
Net decrease in cash and cash equivalents

 

(159,877

)

 

(5,736

)

Cash and cash equivalents, beginning of period

 

1,202,439

 

 

991,158

 

Cash and cash equivalents, end of period

$

1,042,562

 

$

985,422

 

GAAP Loss from Operations to Non-GAAP Adjusted Loss from Operations

(Unaudited, amounts in thousands, except share and per share data)

 
Three Months Ended
Mar 31, 2022 Dec 31, 2021 Mar 31, 2021
GAAP Loss from operations

$

(123,451

)

 

(133,448

)

$

(33,098

)

Add: stock-based compensation

 

5,065

 

 

1,544

 

 

817

 

Non-GAAP Adjusted loss from operations

$

(118,386

)

$

(131,904

)

$

(32,281

)

 

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