Lordstown Motors, (RIDE) - Get Report the electric-truck maker, said in a Securities and Exchange Commission filing that it didn't have enough cash on hand to build vehicles at scale and sell them, and that "these conditions raise substantial doubt regarding our ability to continue as a going concern."
The Wall Street Journal reported that the company amended its annual report to include the going-concern notice.
At last check Lordstown Motors shares were trading off 7.8% at $10.34. In regular Tuesday trading they'd closed down 16% at $11.22.
At March 31 the Lordstown, Ohio, company had cash and equivalents of about $587 million. It had an accumulated deficit of $259.7 million at the end of Q1.
Lordstown Motors earlier had reported a first-quarter net loss of 72 cents a share compared with a loss of 16 cents in the year-earlier quarter. Shares outstanding more than doubled to 174.3 million from 71.9 million. The company reported no net sales for the period.
The company also said then that it expected 2021 production of its Endurance truck would be half prior expectations.
Lordstown Motors was founded in 2018 and went public via a special-purpose-acquisition company merger in October 2020.