Faraday Future announced on Monday evening its Q1 2022 Financial results reporting total assets of approximately $706 million ($276 million of cash) and 401 preorders for the upcoming FF91 model.
“Preorders are fully refundable, non-binding, paid deposits for the FF 91 Futurist Alliance Edition and/or the FF 91 Futurist vehicles available initially for sale to customers in the U.S. and China. FF 91 Futurist Alliance Edition preorders require a $5,000 deposit for customers in the US and an RMB 50,000 deposit for customers in China. FF 91 Futurist preorders require a $1,500 deposit for customers in the US and an RMB 20,000 deposit for customers in China,” the company stated.
“We continued to make progress during the first quarter at our Hanford manufacturing plant, where mechanical systems and equipment installation is underway in preparation for FF 91 production,” said Dr. Carsten Breitfeld, Global CEO of Faraday Future. “The signing of our manufacturing agreement with Myoung Shin has put our high-volume program for FF 81 production on track with an attractive, capital-efficient strategy in an ideal global manufacturing location.”
Dr. Breitfeld continued, “During the first quarter of 2022, we also secured our dealer license from the State of California, allowing us to sell our cars online nationally. We remain confident that Faraday Future will redefine the state-of-the-art in intelligent, electrified mobility when we launch the FF 91 in the third quarter of 2022.”
Operating loss of approximately $149 million during the three months ended March 31, 2022, as compared to an operating loss of approximately $19 million for the three months ended March 31, 2021. The increase was primarily driven by an increase in engineering, design, and testing (“ED&T”) services as the Company re-engaged suppliers and made significant purchases for ED&T services to progress the development of the FF 91; a significant increase in headcount and employee-related expenses; and an increase in professional services primarily related to the Special Committee Investigation.
Net loss increased to approximately $153 million during the three months ended March 31, 2022, as compared to an approximately $76 million net loss for the three months ended March 31, 2021. The significant increase in net loss in the first quarter of 2022 is primarily attributable to the loss from operations.
Turning to our balance sheet, total assets on March 31, 2022 were approximately $706 million, which include $276 million of cash. The decrease in cash from December 31, 2021, to March 31, 2022, was due in part to a scheduled $97 million note and accrued interest payment. Total liabilities were approximately $271 million, as compared to approximately $340 million in total liabilities as of December 31, 2021.
Since its inception, the Company has incurred cumulative losses from operations and negative cash flows from operating activities, and the Company’s accumulated deficit was approximately $3 billion as of March 31, 2022. The Company expects to continue to generate significant operating losses for the foreseeable future, as we continue to incur expenses before we generate meaningful revenue.
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Recently, the company announced its first retail store in Beverly Hills (California) selecting ASTOUND Group to implement design direction, and execute the physical experience. The retail space will be located at 464 N. Beverly Drive in Beverly Hills ahead of the FF 91 launch in Q3 2022, as previously announced.
The space will be equipped with a retail area, sales lounge, cafe, VR experience, co-creation lab, and VIP lounge, making the in-store sales experience complementary to the driving experience of the FF 91.
In April, Faraday Future announced that its FF91 Model will use Brembo as a supplier to the brake technology, as the main supplier of full brake caliper assembly. Brembo will provide a specialized caliper assembly for the FF 91. This includes assembly, pistons, calipers, and pads, along with the electronic parking brake — the company said.
The company also unveiled recently that will partner with Meta System to become the supplier of on-board power management module products. FF 91 EV and the upcoming FF 81 vehicles will be equipped with Meta System’s onboard battery charger. The system will feature 15.2 kW AC charging capability.