Electric vehicle startup Canoo Inc., which is moving its headquarters to Bentonville and opening an advanced manufacturing facility there, on Tuesday reported widening second-quarter losses and a sales pipeline worth more than $1 billion.
That pipeline includes its previously announced deal with Walmart Inc. of Bentonville, which has agreed to purchase 4,500 electric vehicles from Canoo Inc. for final mile deliveries.
That agreement represents $300 million in potential revenue for the company, Chairman and CEO Tony Aquila said in an earnings call late Tuesday. He also said Canoo is poised to start delivering vehicles to Walmart early next year.
Canoo (Nasdaq: GOEV) lost $164.4 million, or 68 cents per share, in the second quarter. That is up from $112.6 million, or 50 cents per share, in the same quarter of 2021.
The company did not report any second-quarter total revenue, but did report net cash used in operating activities and net cash used in investing activities for the first half of the year.
Net cash used for operating activities totaled $237.6 million, up from $108.8 million for the first six months of last year. Net cash used in investing activities was $35 million, up from $28.7 million.
Canoo expects to begin production of its vehicles in the fourth quarter and has partnered with a third party for limited production while its facilities come online. The company aims to produce 20,000 EVs next year and to double that production by 2024, Aquila said on the call, adding that it is focused on delivering vehicles to NASA for Artemis crew transportation by June 2023.
The CEO said in a news release that the company has completed 90% of its crash testing and is moving on to the final phase of Federal Motor Vehicle Safety Standard certification.
"We have navigated a tough global economic backdrop in the first half, and will continue to take a disciplined, long-term, strategic and focused approach to deliver on our announced built in America vehicles, which are for and by America first with the intent of making EVs available to everyone,” he said. “We have also introduced phase one of our just in time, milestone-based approach to accessing the capital markets, which aid us as we continue to build on access to non-dilutive capital.”
As of June 30, Canoo said it had $33.8 million in unrestricted cash, down from $104.9 million in the first quarter. The company had $250 million in accessible capital.
The company has secured more than $400 million worth of incentives from Oklahoma and Arkansas, too.
Canoo also touted that it has access to more capital because it has:
- Entered into a $300 million Pre-Paid Advance Agreement with Yorkville Advisors and drawn its first $50 million advance.
- Filed an At-The-Market offering program for $200 million.
- Filed an additional $300 million universal shelf registration.
Canoo expects, for the second half of the year, operating expenses of $200 million to $245 million and capital expenditures of $100 million to $125 million.
The company in the first quarter warned investors that there was "substantial doubt about the company's ability to continue as a going concern." That remains the case this quarter.
Shares were down about 6% in after-hours trading Monday. Shares are down 51% year to date.
Also during the quarter, Canoo was awarded a U.S. Army contract worth $67,500 to supply an electric vehicle for analysis and demonstration.