The UK-based EV maker Arrival announced Thursday its financial results for the second quarter reporting $513 million of cash and cash equivalents as of June 30 amid the restructuring plan while announcing a $300 million At The Market platform.
Last month, the company had said it will provide a business reorganization in response to “the challenging economic environment” ahead of starting production of its Van later this quarter adding that further details would be given during today’s call.
The company will start production this quarter in Bicester and deliver its first vehicles to UPS this year, and start production in Charlotte in 2023 with an optimized factory.
Second Quarter 2022 Financial Results
- Loss for the period of $89.6 million, compared to a loss for the period of $56.2 million in the second quarter of 2021
- Adjusted EBITDA loss for the period of $76.2 million, compared to an adjusted EBITDA loss of $41.2 million in the second quarter of 2021
- Administrative expenses were $82.2 million and non-capitalized R&D expenses were $32.6 million, compared to administrative expenses of $36.3 million and non-capitalized R&D expenses of $11.6 million in the second quarter of 2021
- Capital expenditure for the period, including tangible and intangible purchases, of $95.2 million, compared to $79.1 million in the second quarter of 2021
- Cash and cash equivalents of $512.6 million as of June 30, 2022
- Established an ATM platform to sell up to $300 million of stock from time to time which provides an additional source of capital needed to deliver business priorities through 2023
- Shares outstanding totaled 638,237,901 and weighted average shares outstanding in Q2 totaled 633,974,891 as of June 30, 2022
Denis Sverdlov, Arrival founder and CEO said, “We have had big achievements in Q2 including the European certification of our Van and Bus products and successful internal trials of both Van and Bus on public roads”.
“In addition, we’ve made recent strategic decisions that will allow us to start production this quarter in Bicester (UK), deliver our first vehicles to UPS this year, and start production in Charlotte (US) in 2023.
We are excited to be drawing closer to producing vehicles in our first ever Microfactory in a few weeks – a moment that we believe will fundamentally change the automotive industry. The start of our first Microfactory is a big step towards achieving our vision, it is the move from 0 to 1,” he added.
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The Company expects lower production volumes in 2022 compared to previous estimates. These changes allow the Company to operate the business through at least 2023 without needing to raise additional capital, other than through the ATM, and prepare the Company for growth. The Company will continue to opportunistically consider additional sources of capital.
The realignment of the strategy would enable Arrival to “deliver business priorities until late 2023 primarily utilizing the $500M cash on hand” but also “a targeted 30% reduction in spending across the company, which can impact up to 30% of employees globally,” Arrival said.
The company reiterated the “huge amount of interest in its products” believing that its proposals “are the right step at this time to ensure the long-term success of the business”. Arrival mentioned “supply chain issues, an ongoing pandemic, geopolitical tensions and rising inflation” as the main causes for this business reorganization.
Recently, the company announced that its Van has achieved EU certification and received European Whole Vehicle Type Approval (EUWVTA), a critical step towards starting trials with customers in the coming months. A couple months after achieving the same approval for its buses, Arrival gets the EUWVTA for its Van and expects to start production of the Van in Bicester, UK in Q3 2022.
Recently, Arrival announced that entered into a partnership with Enel X — the world’s largest supplier of e-bus solutions outside China operating over 3,200 e-Buses globally — to test the battery-electric bus in Italy.