- Announced the start of production (“SOP”) for the FF 91 Futurist at the “FF ieFactory California” on track for the end of March 2023, subject to the timely receipt of the previously announced and committed $135.0 million.
- The new financing commitments also provide for delivery by the end of April 2023 contingent on timely receipt of funds and suppliers meeting supply chain requirements.
- $111.6 million of funds have been received towards SOP funding target since December 2022, with an incremental $38.4 to $58.4 million to be received.
- Formed non-binding strategic partnership with the City of Huanggang in Hubei Province, China to relocate FF’s Future China headquarters.
- Announced Product and Technology Generation 2.0 Program featuring 26 major new system and component upgrades.
- Company to host final launch event of the FF 91 Futurist on April 26, 2023.
Los Angeles, CA (March 8, 2023) – Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”, “Faraday Future”, or “Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced financial results for its fourth quarter and full year ended December 31, 2022.
RESULTS FOR FOURTH QUARTER 2022 AND FULL YEAR 2022
Operating expenses for the year ended December 31, 2022, were $451.0 million compared to $354.1 million for the year ended December 31, 2021. Operating expenses for the three-month period ended December 31, 2022, were $83.9 million compared to $121.4 million for the three months ended December 31, 2021. The change in operating expenses for the year was primarily due to the increase in engineering, design, and testing (“ED&T”) costs. The improvement in operating expenses for fourth quarter 2022 in comparison to fourth quarter 2021 is primarily due to timing as significant ED&T costs were incurred in the first 9 months of the year.
Net loss was $552.1 million for the year ended December 31, 2022, compared to net loss of $516.5 million in the prior-year period. The increase is primarily due to the increase in ED&T costs and the increase of changes in fair value measurement of certain notes payable and warrant liabilities measured at fair value in 2022, partially offset by an increase in loss on extinguishment of related party notes payable, notes payable, and vendor payables in trust, net, primarily recorded as part of the conversion of certain notes payables in connection with the closing of the business combination with Property Solutions Acquisition Corp consummated on July 21, 2021, which resulted in a loss of $94.7 million in 2021.
Net loss for the three months ended December 31, 2022, was $153.9 million compared to $84.3 million for the three months ended December 31, 2021. The increase is primarily due to the increase in changes in fair value measurement of certain notes payable and warrant liabilities measured at fair value in 2022 and a gain at settlement of related party notes payable, notes payable and vendor payables in trust, net recorded for forgiveness of the Company’s Payroll Protection Loan principal of $9.1 million during the three months ended December 31, 2021, with no comparable activity in the current period.
Net cash used in operating activities for the year ended December 31, 2022 was $383.1 million compared to $339.8 million for the year ended December 31, 2021. Capital expenditures were $123.2 million for the year ended December 31, 2022, compared to $95.7 million for the year ended December 31, 2021. Net cash used in financing activities for the year ended December 31, 2022 was $6.7 million compared to net cash provided by financing activities of $966.6 million for the year ended December 31, 2021.
The Company ended the quarter with approximately $18.5 million in cash and restricted cash. The cash position was $37.5 million, including restricted cash of $2.1 million as of March 3, 2023.
“We have come a long way towards making the FF 91 Futurist available to our customers, and I am proud of the dedication and commitment shown by our team to achieve all major milestones,” stated Xuefeng (“XF”) Chen, Global CEO of Faraday Future. “Securing the necessary funding commitments to begin production and delivery of this vehicle is a major game changer for us. Going forward, we expect to utilize all available resources in order to deliver our car to our enthusiastic customers.”
KEY COMPANY HIGHLIGHTS DURING FOURTH QUARTER 2022
Faraday Future continues its path on the realization towards its long-term business plan, making the following announcements during the fourth quarter:
- Appointed XF Chen as Faraday Future’s Global CEO
- Appointed Jie Sheng, XF Chen and Ke Sun to Faraday Future’s board of directors
- Selected Innovusion as LiDAR supplier for flagship FF 91 Futurist
UPDATES
Subsequent to December 31, 2022, FF has announced the following major updates at the Company:
- Formed a non-binding strategic partnership with the City of Huanggang in Hubei Province, China
- Signed a new shareholder agreement with FF Top Holdings LLC
- Announced $135.0 million in convertible secured notes financing commitments
- Received total gross committed payment of $70.0 million from $135.0 million round of financing, along with $23.6 million from prior commitments and $18.0 million from investors exercising their right to invest additional funds in the Company
- Shipped latest production-intent FF 91 Futurist to China for final evaluation and testing purposes
- Continued testing and refining all the key features of the FF 91 Futurist across the IoV, ADAS and Intelligent Internet App System
- Integrated all fundamental ADAS features to the FF 91 Futuristand currently testing in proving grounds and public roads
- Released completed beta version of the FF 91 Futurist’s unique smart parking with summoning features integrated in the FF 91 Futurist
- Announced stockholder approval of the proposal to increase authorized shares to 1.69 billion shares of Class A common stock
- Secured all equipment necessary to build the FF 91 Futurist thanks to strong supplier partnerships with world-class equipment suppliers
- Faraday Future plans to hold a 2023 Faraday Future Global Supplier Summit at the end of April 2023
Production and Delivery Update
FF is targeting a SOP date for its flagship FF 91 Futurist of March 30, 2023, assuming timely receipt of funds from the Company’s investors and suppliers meeting our supply chain requirements, at the Company’s Hanford, California manufacturing facility, “FF ieFactory California,” with the first vehicles coming off the assembly line in early April 2023, and customer deliveries occurring before the end of April 2023.
Product and Technology Generation 2.0 Program
FF is completing its testing and validation of the FF 91 Futurist through the Product and Technology Generation 2.0 program (PT Gen 2.0). The generational upgrade from PT Gen 1.0 to PT Gen 2.0 consists of significant upgrades of systems and core components in both the vehicle and the I.A.I. area – the advanced core, which stands for Internet, Autonomous Driving, and Intelligence. PT Gen 2.0 was achieved through upgrades of 26 major systems and components, with 13 key upgrades throughout powertrain, battery, charging, chassis, interior from EV areas, and 13 key upgrades in computing, sensing, communication, user interaction, and performance of the FF 91 Futurist.
EARNINGS WEBCAST
Faraday Future management will host a webcast today, March 8, 2023, at 8:00pm Eastern time (5:00pm Pacific time). A question-and-answer session will follow management’s prepared remarks. Interested investors and other parties can listen to a webcast of the conference call by clicking here or by logging onto the Investor Relations section of the Company’s website at https://investors.ff.com/.
ABOUT FARADAY FUTURE
FF is the pioneer of the Ultimate Intelligent TechLuxury ultra spire market in the intelligent EV era, and a disruptor of the traditional ultra-luxury car civilization. FF is not just an EV company, but also a software-driven company of intelligent internet AI product.
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