Written by Cláudio Afonso | LinkedIn | X
Fisker stated in a new SEC filing on Monday after the market closing that it couldn’t complete its Quarterly Report on Form 10-Q for the first quarter by May 10.
The EV startup stated that the “management identified certain material weaknesses, including that the Company did not design and maintain an effective control environment commensurate with its financial reporting requirements”. Fisker added that is “unable to provide an estimate” for the timing of the filing.
Additionally, the independent auditor, PricewaterhouseCoopers (PwC), declined re-appointment for the audit of the fiscal year 2024. Fisker is now seeking a new auditor which will be announced”once the evaluation process has been completed by the Audit Committee”.
Fisker reaffirmed that is exploring strategic alternatives — as previously stated —, including bankruptcy protection.
“If capital is not available to the Company when, and in the amounts needed, the Company could be required to further curtail its operations and/or seek protection under applicable bankruptcy laws,” the company said.
Also today, Fisker announced the completion of a deal to sell senior secured notes due 2025 to an existing institutional investor, raising $3.456 million.
The offering carries the potential to raise the aggregate principal amount of the notes to $7,500,000. Wrapped up on May 10, it marks a significant financial move for the company as it seeks investment to restart production and launch new products such as Fisker Pear and the pick-up truck Alaska (known as Kayak in Europe).
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The company said it intends to use the proceedings to finance various expenses in line with the budget approved by the investor adding that these senior secured notes are set to mature on June 24, 2024.
Earlier today, Fisker announced it sold out all the inventory units from the Sport trim of its first model, the SUV Ocean, in the US.
The company also reported that it is adding three new dealership locations of which two are in California (Newport in Orange County and San Jose) and one in New Jersey. With this addition, Fisker reaches a total of 15 dealers in the US.
These new dealerships will be operational soon, offering authorized sales of Fisker vehicles, the EV startup said.
Since January, the company has been switching its business model from direct sales to a dealer partnership model. Earlier this month, the company closed its showroom in New York as part of the transition.
In late March, the startup started considerable discounts on the 2023 inventory with the Extreme variant now starting at $37,499 (down from $61,499), the Ultra variant starting at $34,999 (from $52,999), and the Sport’s one at $24,999 (from $38,999).
Fisker announced last week, via an SEC filing, that has an agreement been reached with an investor to extend the deadline until this Friday, May 17.
Last week Fisker’s entity in Austria (Fisker GmbH) announced that it had voluntarily filed to open a restructuring proceeding via self-administration under the Austrian Insolvency Code.
This proceeding will allow Fisker Austria to continue its operations under court protection, including paying employees and selling vehicles, while it pursues a strategic transaction or other sale of assets.
Written by Cláudio Afonso | LinkedIn | X
