Faraday Future (Faraday Future, hereinafter referred to as FF), which has been slow to hand over its financial report, finally released its “transcript” for the third quarter of last year.
On May 7, Faraday Future (Nasdaq: FFIE) released its financial report for the third quarter ended September 30, 2021. In the third quarter, FF had a net loss of 304 million U.S. dollars, compared with a net loss of $33 million a year earlier, and the earnings report has been delayed several times. 
FF announced the third quarter financial report
Why the big loss? FF said it was due to the increase in operating expenses
For the increase in net loss, FF stated that it was mainly due to the substantial increase in operating expenses, and the use of fair value bills payable to related parties. Losses from changes in fair value of denominated notes payable and warrant liabilities, and losses arising from the processing of notes payable to related parties, notes payable and payable to suppliers.
In terms of specific expenses, the financial report shows that in the third quarter of last year, FF’s operating expenses were US$186 million, and the operating expenses in the same period last year were US$18 million, mainly because Hanfu German manufacturing plant ramps up investment in preparation for full commercial production.
In addition, FF’s cash and cash equivalents balance was $666 million in the third quarter of last year. The cash balance as of March 31 this year was $276 million, including planned repayments of $97 million in notes and accrued interest. According to FF’s previous forecast, the company’s total assets are $1 billion.
According to the financial report, as of March 31 this year, FF has received a total of 401 FF 91 reservation orders with a deposit, but the deposit is fully refundable and non-binding. FF has previously announced that it has received 14,000 FF 91 orders, but they are all free, of which there are only a few hundred paid orders.
Bifukang: FF 91 will still be delivered in the third quarter of this year
In the financial report, FF Global CEO Bi Fukang talked about the previous special committee’s interest inThe investigation launched by the company, Bi Fukang said, the board of directors accepted the findings, and the implementation of remedial measures is proceeding smoothly. “I believe this review and the changes we’ve made will help us build a stronger and better company.” FF is well capitalized and has a good balance sheet. “The construction of the Hanford manufacturing plant in California has made great progress, and the construction of the production area is progressing as planned.”
He mentioned that in the third quarter of last year, FF was in The Hanford manufacturing facility has achieved the first four milestones through mass production and remains confident of delivering the FF 91 in the third quarter of this year.
At the end of November last year, FF received a delisting warning from Nasdaq for not submitting its third-quarter financial report on time. According to a letter released by Nasdaq, Faraday Future needs to file an earnings report within 60 calendar days.
And until April this year, FF still failed to release its financial report on time. On March 31, FF said that it is expected to submit last year’s annual report and last year’s third quarter earnings report. According to the reporter’s inquiry, last year’s annual report FF has not yet been submitted.
On October 7 last year, J Capital Research (Meichkin Investment Consulting Company) issued a short-selling report on FF, saying that FF could not sell a car. To this end, the FF independent board of directors formed a special committee to conduct an investigation and submitted an investigation report to the SEC, claiming that the short-selling report was untrue.
As of the close on May 6, FF closed at $2.37, up 3.04%, with a total market value of $769 million. On July 22 last year, FF was listed at US$16.8 per share, with a market value of more than US$5 billion. Since then, the stock price has basically shown a downward trend, and the total market value has fallen by more than 80%.