Days after warning about a possible bankruptcy, Lordstown has painted a bleak picture in a filing with the U.S. Securities and Exchange Commission.
Kicking things off, the company listed approximately 30 different reasons why there is “substantial doubt regarding our ability to continue as a going concern.” Among them is their ability to timely resolve the dispute with Foxconn, their ability to timely obtain necessary funding to continue operations, and their ability to continue production of the Endurance.
Speaking of the Endurance, the company said production will remain at a very low rate as they continue to address quality problems that have prompted recalls. The automaker is also limiting production to “manage ongoing supply chain constraints with key components, including hub motor components, and [to] conserve funding given the high BOM [Bill of Materials] cost.” In regards to the latter, the company loses money on each truck they sell.
More: Lordstown Facing Possible Bankruptcy As Foxconn Deal Sours
While production continues for now, that might not be the case for much longer. As the company explained, “Due to the production delays from early January to mid-April 2023, the failure to identify a strategic partner for the Endurance, and [our] extremely limited ability to raise capital in the current market environment, we anticipate production of the Endurance will cease in the near future.”
The company went on to say they need “significant additional funding to execute our business plan” and are seeking strategic partners including other automakers. This search has been going on for awhile, but “to date, we have not identified a strategic partner for the Endurance” and “to the extent we do not identify such a partner, we anticipate that production of the Endurance will cease in the near future.”
Needless to say, the picture is far from rosy and the automaker posted a net loss of $171.7 (£136.4 / €155.8) million in the first quarter. While they have approximately $176.7 (£140.4 / €160.4) million in cash, cash equivalents, and short-term investments, they also have an accumulated deficit of $998.9 (£794.1 / €906.8) million.
