This post has been de-listed
It is no longer included in search results and normal feeds (front page, hot posts, subreddit posts, etc). It remains visible only via the author's post history.
I just gave the Q2 Report a quick read. I like to look closely because the company won't tell you the specifics of how they are doing unless the news is good. The SEC requires you to tell the whole truth, so reading the filings can help find all sorts of stuff. I used to read SEC filings for a living. Fun stuff.
Weird:
The weirdest thing I found is the crazy mortgage Arcimoto took out on the buildings they already own. The buildings are supposedly worth around $12M. Arcimoto needed cash so they took out a $6M mortgage that provided them $5.4M in cash (it was a $6M mortgage with a 10% discount!). The APR on the mortgage is 20%!!!!! TWENTY PERCENT!!!!! The mortgage length was 6 months!!!! Six months in they need to pay it in full! In order to extend another 6 months they will need to pay roughly $900k in interest and fees. I've never seen an asset-backed loan that terrible.
Financial Status:
Another thing I found: Arcimoto owes its suppliers $8,200,000, much of it is overdue. $8.2M is more than an entire year's sales.
Sales:
This quarter they sold 77 (used and new) vehicles. It costs them twice what the vehicle sells for to build each one. Then the company spends three times what the vehicle sells for on R&D, Sales, and General Expenses. They lost $13.2M on $1.8M in sales.
Shareholders should know:
The latest rounds of stock/warrant sales eliminated all hopes that in the event of bankruptcy that there would be anything left for regular shareholders. The company has a preferred stock level that gives them first dibs on any funds left over.
Future sales:
The final point I will make is that Deposits for future deliveries are down significantly, (from $51k to $28k) so sales seem like they are decreasing not increasing.
You can read the filing here: https://dd7pmep5szm19.cloudfront.net/2532/0001213900-23-065538.htm
Subreddit
Post Details
- Posted
- 1 year ago
- Reddit URL
- View post on reddit.com
- External URL
- reddit.com/r/Arcimoto/co...