2022 Q3 Form 10-Q Financial Statement

#000162828022020609 Filed on August 03, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $195.5M $97.34M $57.68M
YoY Change 84148.71% 55840.23% 18326.52%
Cost Of Revenue $492.5M $292.3M $246.0M
YoY Change 14733.83% 1538542.11% 289276.47%
Gross Profit -$297.0M -$195.0M -$188.3M
YoY Change 9518.72% -125910.32% -82685.53%
Gross Profit Margin -151.96% -200.34% -326.48%
Selling, General & Admin $176.7M $163.8M $223.2M
YoY Change -29.74% 126.66% 69.51%
% of Gross Profit
Research & Development $213.8M $200.4M $186.1M
YoY Change -11.82% 13.34% 11.18%
% of Gross Profit
Depreciation & Amortization $50.65M $42.45M $38.24M
YoY Change 239.95% 522.5% 677.43%
% of Gross Profit
Operating Expenses $390.5M $364.2M $409.2M
YoY Change -20.95% 64680.66% 36.86%
Operating Profit -$687.5M -$559.2M -$597.5M
YoY Change 38.32% 124.65% 99.98%
Interest Expense $7.613M $7.189M $7.705M
YoY Change 9917.11% 23863.33% 154000.0%
% of Operating Profit
Other Income/Expense, Net $157.6M $338.8M $516.6M
YoY Change -676.53% -2746.79% -215.01%
Pretax Income -$530.0M -$220.4M -$80.96M
YoY Change 1.06% -15.8% -89.18%
Income Tax $100.0K $68.00K $300.0K
% Of Pretax Income
Net Earnings -$530.1M -$220.4M -$81.29M
YoY Change 1.09% -15.78% -89.13%
Net Earnings / Revenue -271.21% -226.46% -140.94%
Basic Earnings Per Share -$0.32 -$0.13 -$0.05
Diluted Earnings Per Share -$0.40 -$0.33 -$0.36
COMMON SHARES
Basic Shares Outstanding 1.673B shares 1.669B shares 1.654B shares
Diluted Shares Outstanding 1.691B shares 1.687B shares 1.682B shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.342B $4.294B $5.392B
YoY Change -30.33% 668.94% 565.26%
Cash & Equivalents $1.264B $3.157B $5.392B
Short-Term Investments $2.078B $1.137B
Other Short-Term Assets $69.01M $69.11M $95.49M
YoY Change 241.4% 1.83% 86.6%
Inventory $685.3M $553.0M $333.9M
Prepaid Expenses $57.26M $48.96M $42.33M
Receivables $2.659M $1.294M $867.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $4.156B $4.966B $5.864B
YoY Change -16.65% 296317.79% 575.16%
LONG-TERM ASSETS
Property, Plant & Equipment $2.166B $1.814B $1.494B
YoY Change 124.26% 78.78% 66.03%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $513.7M $278.1M
YoY Change
Other Assets $51.49M $71.23M $43.24M
YoY Change 20.59% 81.39% 38.3%
Total Long-Term Assets $2.731B $2.163B $1.537B
YoY Change 137.02% 4.47% 65.1%
TOTAL ASSETS
Total Short-Term Assets $4.156B $4.966B $5.864B
Total Long-Term Assets $2.731B $2.163B $1.537B
Total Assets $6.888B $7.129B $7.402B
YoY Change 12.19% 244.09% 311.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $79.78M $129.1M $66.44M
YoY Change 795.01% 823.91% 619.9%
Accrued Expenses $56.82M $67.27M $41.21M
YoY Change 30.45% 87.87% 41.14%
Deferred Revenue
YoY Change
Short-Term Debt $13.58M $2.470M $4.399M
YoY Change -44.98% -69.89%
Long-Term Debt Due $9.780M $4.657M $4.485M
YoY Change 199.27% 81.07% 78.69%
Total Short-Term Liabilities $825.1M $654.1M $511.9M
YoY Change 206.27% 31794.82% 97.42%
LONG-TERM LIABILITIES
Long-Term Debt $1.991B $1.989B $1.988B
YoY Change 42370.04% 50094.3% 46743.71%
Other Long-Term Liabilities $365.0M $233.7M $194.9M
YoY Change 99.35% 41.83% -85.12%
Total Long-Term Liabilities $2.356B $2.223B $2.183B
YoY Change 1186.53% 1217.27% 66.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $825.1M $654.1M $511.9M
Total Long-Term Liabilities $2.356B $2.223B $2.183B
Total Liabilities $3.657B $3.419B $3.572B
YoY Change 182.57% 104.23% 127.13%
SHAREHOLDERS EQUITY
Retained Earnings -$6.900B -$6.400B -$6.100B
YoY Change 38.0% 282.73%
Common Stock $168.0K $167.0K $167.0K
YoY Change 2.44%
Preferred Stock
YoY Change
Treasury Stock (at cost) $20.72M $20.72M
YoY Change
Treasury Stock Shares 857.8K shares 857.8K shares
Shareholders Equity $3.231B $3.710B $3.829B
YoY Change
Total Liabilities & Shareholders Equity $6.888B $7.129B $7.402B
YoY Change 12.19% 244.09% 311.26%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$530.1M -$220.4M -$81.29M
YoY Change 1.09% -15.78% -89.13%
Depreciation, Depletion And Amortization $50.65M $42.45M $38.24M
YoY Change 239.95% 522.5% 677.43%
Cash From Operating Activities -$569.5M -$513.6M -$494.6M
YoY Change 95.29% 118.49% 126.15%
INVESTING ACTIVITIES
Capital Expenditures -$290.1M -$309.8M -$185.1M
YoY Change 212.64% 177.23% 95.28%
Acquisitions
YoY Change
Other Investing Activities -$1.085B -$1.419B
YoY Change -7469694.74%
Cash From Investing Activities -$1.375B -$1.729B -$185.1M
YoY Change 1381.89% 1447.45% 95.28%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 17.64M 4.092M -$187.3M
YoY Change -99.62% -95.95% -136.65%
NET CHANGE
Cash From Operating Activities -569.5M -513.6M -$494.6M
Cash From Investing Activities -1.375B -1.729B -$185.1M
Cash From Financing Activities 17.64M 4.092M -$187.3M
Net Change In Cash -1.927B -2.239B -$867.0M
YoY Change -145.44% 810.71% -538.8%
FREE CASH FLOW
Cash From Operating Activities -$569.5M -$513.6M -$494.6M
Capital Expenditures -$290.1M -$309.8M -$185.1M
Free Cash Flow -$279.4M -$203.8M -$309.6M
YoY Change 40.53% 65.26% 149.76%

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DESCRIPTION OF BUSINESS<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Overview</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Lucid Group, Inc. (“Lucid”) is a technology and automotive company focused on designing, developing, manufacturing, and selling the next generation of EV, EV powertrains and battery systems.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Lucid was originally incorporated in Delaware on April 30, 2020 under the name Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (“Churchill”) as a special purpose acquisition company with the purpose of effecting a merger with one or more operating businesses. On February 22, 2021, Churchill entered into a definitive merger agreement (the “Merger Agreement”) with Atieva, Inc. (“Legacy Lucid”) in which Legacy Lucid would become a wholly owned subsidiary of Churchill (the “Merger”). Upon the closing of the Merger on July 23, 2021 (the “Closing”), Churchill was immediately renamed to “Lucid Group, Inc.” The Merger between Churchill and Legacy Lucid was accounted for as a reverse recapitalization. See Note 3 “Reverse Recapitalization” for more information.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Throughout the notes to the condensed consolidated financial statements, unless otherwise noted, the “Company,” “we,” “us” or “our” and similar terms refer to Legacy Lucid and its subsidiaries prior to the consummation of the Merger, and Lucid and its subsidiaries after the consummation of the Merger.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Liquidity</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">From inception through June 30, 2022, the Company has incurred operating losses and negative cash flows from operating activities. For the six months ended June 30, 2022 and 2021, the Company has incurred operating losses, including net losses of $301.7 million and $1,009.7 million, respectively. The Company has an accumulated deficit of $6.4 billion as of June 30, 2022. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">During the quarter ended June 30, 2021, the Company completed the first phase of the construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company began commercial production of its first vehicle, the Lucid Air, in September 2021 and delivered its first vehicles in late October 2021. The Company continues to expand the Arizona plant, start the construction of a manufacturing facility in the Kingdom of Saudi Arabia (the “KSA Facility”), and build a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s existing sources of liquidity include cash, cash equivalents and investments. Historically, the Company funded operations primarily with issuances of convertible preferred stock and convertible notes. Upon the completion of the Merger, the Company received $4,400.3 million in cash proceeds, net of transaction costs. In December 2021, the Company issued an aggregate of $2,012.5 million principal amount of 1.25% convertible senior notes due in December 2026. In addition, during the six months ended June 30, 2022, the Company entered into a loan agreement with the Saudi Industrial Development Fund (“SIDF”) with an aggregate principal amount of up to approximately $1.4 billion, revolving credit facilities with Gulf International Bank (“GIB”) in an aggregate principal amount of approximately $266.5 million and a new five-year senior secured asset-based revolving credit facility (“ABL Credit Facility”) with an initial aggregate principal commitment amount of up to $1.0 billion, See Note 6 “Long-term Debt” for additional information.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Certain Significant Risks and Uncertainties</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s current business activities consist of (i) generating sales from the deliveries and service of vehicles, (ii) research and development efforts to design, engineer and develop high-performance fully electric vehicles and advanced electric vehicle powertrain components, including battery pack systems, (iii) production and manufacturing ramps at existing manufacturing facilities in Casa Grande, Arizona, (iv) Phase 2 of construction at Advanced Manufacturing Plant 1 (“AMP-1”) in Casa Grande, Arizona, (v) the start of construction of a manufacturing facility in the Kingdom of Saudi Arabia, and (vi) expansion of our retail studios and service centers capabilities throughout North America and across the globe. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including our ability to access potential markets, and secure long-term financing.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The COVID-19 pandemic continues to impact the global economy and cause significant macroeconomic uncertainty. Infection rates vary across the jurisdictions in which the Company operates. Governmental authorities have continued to implement numerous and constantly evolving measures to attempt to contain the virus, such as travel bans and restrictions, masking recommendations and mandates, vaccine recommendations and mandates, limits on gatherings, quarantines, shelter-in-place orders and business shutdowns. The Company has taken proactive action to protect the health and safety of its employees, customers, partners and suppliers, consistent with the latest and evolving governmental guidelines. Until the COVID-19 pandemic is adequately contained, the Company expects to continue to implement appropriate measures. The Company continues to monitor the rapidly evolving situation and guidance from international and domestic authorities, including federal, state and local public health authorities, and may take additional actions based on their recommendations and requirements or as the Company otherwise sees fit to protect the health and safety of its employees, customers, partners and suppliers.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">While certain of the Company and its suppliers’ operations have from time-to-time been temporarily affected by government-mandated restrictions, the Company was able to commence deliveries of the Lucid Air to customers and to proceed with the construction of the Arizona plant. Broader impacts of the pandemic have included inflationary pressure as well as ongoing, industry-wide challenges in logistics and supply chains, such as increased port congestion, intermittent supplier delays and a shortfall of semiconductor supply. Because the Company relies on third party suppliers for the development, manufacture, and/or provision and development of many of the key components and materials used in its vehicles, as well as provisioning and servicing equipment in its manufacturing facilities, the Company has been affected by inflation and such industry-wide challenges in logistics and supply chains. While the Company continues to focus on mitigating risks to its operations and supply chain in the current industry environment, the Company expects that these industry-wide trends will continue to impact its cost structure as well as its ability and the ability of its suppliers to obtain parts, components and manufacturing equipment on a timely basis for the foreseeable future.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the current circumstances, given the dynamic nature of the situation, any impact on the Company’s financial condition, results of operations or cash flows in the future continues to be difficult to estimate and predict, as it depends on future events that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, the duration and continued spread of the outbreak, its severity, potential additional waves of infection, the emergence of more virulent or more dangerous strains of the virus, the actions taken to mitigate the virus or its impact, the development, distribution, efficacy and acceptance of vaccines worldwide, how quickly and to what extent normal economic and operating conditions can resume, the broader impact that the pandemic is having on the economy and our industry and specific implications the pandemic may have on the Company’s suppliers and on global logistics. See “Risk Factors” in Part II, Item 1A of this </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Quarterly Report </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">on Form 10-Q (the “Quarterly Report”) for additional information regarding risks associated with the COVID-19 pandemic, including under the caption “The ongoing COVID-19 pandemic has adversely affected, and we cannot predict its ultimate impact on, our business, results of operations and financial condition.”</span></div>
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us-gaap Interest Paid Net
InterestPaidNet
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IncomeTaxesPaidNet
480000 usd
us-gaap Income Taxes Paid Net
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lcid Issuance Of Convertible Preferred Stock Upon Exercise Of Preferred Stock Warrants
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lcid Issuance Of Convertible Preferred Share Contingent Forward Contracts
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lcid Capital Contribution Upon Issuance Of Preferred Shares
CapitalContributionUponIssuanceOfPreferredShares
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CY2021Q3 lcid Proceeds From Reverse Recapitalization Net Of Transaction Costs
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<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, inventory valuation, warranty reserve, the determination of the useful lives of property and equipment, fair value of preferred stock warrants, fair value of common stock warrants, fair value of contingent forward contracts liability, valuation of deferred income tax assets and uncertain tax positions, fair value of common stock and other assumptions used to measure stock-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.</span></div>
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CY2021Q4 us-gaap Cash
Cash
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CY2021Q2 us-gaap Cash
Cash
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CY2020Q4 us-gaap Cash
Cash
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<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, and investments. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits.</span></div>
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CY2021Q3 lcid Reverse Recapitalization Transaction Costs Expensed
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CY2022Q2 us-gaap Inventory Net
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CY2021Q4 us-gaap Inventory Net
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CY2022Q2 us-gaap Inventory Write Down
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us-gaap Inventory Write Down
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us-gaap Inventory Write Down
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CY2021Q2 us-gaap Inventory Write Down
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23966000 usd
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14783333 shares
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25966976 shares
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CY2021 us-gaap Treasury Stock Shares Acquired
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24.15
us-gaap Treasury Stock Shares Acquired
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0 shares
CY2022Q2 us-gaap Treasury Stock Shares Acquired
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0 shares
us-gaap Treasury Stock Shares Acquired
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CY2021Q2 us-gaap Treasury Stock Shares Acquired
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CY2022Q2 us-gaap Common Stock Capital Shares Reserved For Future Issuance
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CY2021Q4 us-gaap Common Stock Capital Shares Reserved For Future Issuance
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210204258 shares
CY2021 lcid Reverse Recapitalization Contingent Consideration Contingency Period
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FinanceLeaseCost
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