UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
On March 8, 2023, Faraday Future Intelligent Electric Inc. (the “Company”) issued a press release announcing its results for the full year and quarter ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
In connection with the conference call to be held by the Company on March 8, 2023 to discuss its results for the full year and fourth quarter ended December 31, 2022, the Company intends to reference the presentation furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference.
Copies of the press release and presentation are available in the Investor Relations section of the Company’s website located at www.investors.ff.com. A recording of the conference call will be available after the event on the same website.
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed with this Current Report on Form 8-K:
| No. | Description of Exhibits | |
| 99.1 | Press Release issued by the Company on March 8, 2023 | |
| 99.2 | Investor presentation dated March 8, 2023 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FARADAY FUTURE INTELLIGENT ELECTRIC INC. | ||
| Date: March 8, 2023 | By: | /s/ Yun Han |
| Name: | Yun Han | |
| Title: | Interim Chief Financial Officer and Chief Accounting Officer | |
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Exhibit 99.1
FARADAY FUTURE REPORTS FINANCIAL RESULTS
FOR FISCAL FOURTH QUARTER AND FULL YEAR 2022
| ● | Announced the start of production (“SOP”) for the FF 91 Futurist at the “FF ieFactory California” on track for the end of March 2023, subject to the timely receipt of the previously announced and committed $135.0 million. |
| ● | The new financing commitments also provide for delivery by the end of April 2023 contingent on timely receipt of funds and suppliers meeting supply chain requirements. |
| ● | $111.6 million of funds have been received towards SOP funding target since December 2022, with an incremental $38.4 to $58.4 million to be received. |
| ● | Formed non-binding strategic partnership with the City of Huanggang in Hubei Province, China to relocate FF’s Future China headquarters. |
| ● | Announced Product and Technology Generation 2.0 Program featuring 26 major new system and component upgrades. |
| ● | Company to host final launch event of the FF 91 Futurist on April 26, 2023. |
Los Angeles, CA (March 8, 2023) - Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”, “Faraday Future”, or “Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced financial results for its fourth quarter and full year ended December 31, 2022.
RESULTS FOR FOURTH QUARTER 2022 AND FULL YEAR 2022
Operating expenses for the year ended December 31, 2022, were $451.0 million compared to $354.1 million for the year ended December 31, 2021. Operating expenses for the three-month period ended December 31, 2022, were $83.9 million compared to $121.4 million for the three months ended December 31, 2021. The change in operating expenses for the year was primarily due to the increase in engineering, design, and testing (“ED&T”) costs. The improvement in operating expenses for fourth quarter 2022 in comparison to fourth quarter 2021 is primarily due to timing as significant ED&T costs were incurred in the first 9 months of the year.
Net loss was $552.1 million for the year ended December 31, 2022, compared to net loss of $516.5 million in the prior-year period. The increase is primarily due to the increase in ED&T costs and the increase of changes in fair value measurement of certain notes payable and warrant liabilities measured at fair value in 2022, partially offset by an increase in loss on extinguishment of related party notes payable, notes payable, and vendor payables in trust, net, primarily recorded as part of the conversion of certain notes payables in connection with the closing of the business combination with Property Solutions Acquisition Corp consummated on July 21, 2021, which resulted in a loss of $94.7 million in 2021.
Net loss for the three-months ended December 31, 2022, was $153.9 million compared to $84.3 million for the three months ended December 31, 2021. The increase is primarily due to the increase in changes in fair value measurement of certain notes payable and warrant liabilities measured at fair value in 2022 and a gain at settlement of related party notes payable, notes payable and vendor payables in trust, net recorded for forgiveness of the Company’s Payroll Protection Loan principal of $9.1 million during the three months ended December 31, 2021, with no comparable activity in the current period.
Net cash used in operating activities for the year ended December 31, 2022 was $383.1 million compared to $339.8 million for the year ended December 31, 2021. Capital expenditures were $123.2 million for the year ended December 31, 2022, compared to $95.7 million for the year ended December 31, 2021. Net cash used in financing activities for the year ended December 31, 2022 was $6.7 million compared to net cash provided by financing activities of $966.6 million for the year ended December 31, 2021.
The Company ended the quarter with approximately $18.5 million in cash and restricted cash. The cash position was $37.5 million, including restricted cash of $2.1 million as of March 3, 2023.
“We have come a long way towards making the FF 91 Futurist available to our customers, and I am proud of the dedication and commitment shown by our team to achieve all major milestones,” stated Xuefeng (“XF”) Chen, Global CEO of Faraday Future. “Securing the necessary funding commitments to begin production and delivery of this vehicle is a major game changer for us. Going forward, we expect to utilize all available resources in order to deliver our car to our enthusiastic customers.”
KEY COMPANY HIGHLIGHTS DURING FOURTH QUARTER 2022
Faraday Future continues its path on the realization towards its long-term business plan, making the following announcements during the fourth quarter:
| ● | Appointed XF Chen as Faraday Future’s Global CEO |
| ● | Appointed Jie Sheng, XF Chen and Ke Sun to Faraday Future’s board of directors |
| ● | Selected Innovusion as LiDAR supplier for flagship FF 91 Futurist |
UPDATES
Subsequent to December 31, 2022, FF has announced the following major updates at the Company.
| ● | Formed a non-binding strategic partnership with the City of Huanggang in Hubei Province, China |
| ● | Signed a new shareholder agreement with FF Top Holdings LLC |
| ● | Announced $135.0 million in convertible secured notes financing commitments |
| ● | Received total gross committed payment of $70.0 million from $135.0 million round of financing, along with $23.6 million from prior commitments and $18.0 million from investors exercising their right to invest additional funds in the Company |
| ● | Shipped latest production-intent FF 91 Futurist to China for final evaluation and testing purposes |
| ● | Continued testing and refining all the key features of the FF 91 Futurist across the IoV, ADAS and Intelligent Internet App System |
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| ● | Integrated all fundamental ADAS features to the FF 91 Futurist and currently testing in proving grounds and public roads |
| ● | Released completed beta version of the FF 91 Futurist’s unique smart parking with summoning features integrated in the FF 91 Futurist |
| ● | Announced stockholder approval of the proposal to increase authorized shares to 1.69 billion shares of Class A common stock |
| ● | Secured all equipment necessary to build the FF 91 Futurist thanks to strong supplier partnerships with world-class equipment suppliers |
| ● | Faraday Future plans to hold a 2023 Faraday Future Global Supplier Summit at the end of April 2023 |
Production and Delivery Update
FF is targeting a SOP date for its flagship FF 91 Futurist of March 30, 2023, assuming timely receipt of funds from the Company’s investors and suppliers meeting our supply chain requirements, at the Company’s Hanford, California manufacturing facility, “FF ieFactory California,” with the first vehicles coming off the assembly line in early April 2023, and customer deliveries occurring before the end of April 2023.
Product and Technology Generation 2.0 Program
FF is completing its testing and validation of the FF 91 Futurist through the Product and Technology Generation 2.0 program (PT Gen 2.0). The generational upgrade from PT Gen 1.0 to PT Gen 2.0 consists of significant upgrades of systems and core components in both the vehicle and the I.A.I. area – the advanced core, which stands for Internet, Autonomous Driving, and Intelligence. PT Gen 2.0 was achieved through upgrades of 26 major systems and components, with 13 key upgrades throughout powertrain, battery, charging, chassis, interior from EV areas, and 13 key upgrades in computing, sensing, communication, user interaction, and performance of the FF 91 Futurist.
EARNINGS WEBCAST
Faraday Future management will host a webcast today, March 8, 2023, at 8:00pm Eastern time (5:00pm Pacific time). A question-and-answer session will follow management’s prepared remarks. Interested investors and other parties can listen to a webcast of the conference call by logging onto the Investor Relations section of the Company's website at https://investors.ff.com/.
ABOUT FARADAY FUTURE
FF is the pioneer of the Ultimate Intelligent TechLuxury ultra spire market in the intelligent EV era, and a disruptor of the traditional ultra-luxury car civilization. FF is not just an EV company, but also a software-driven company of intelligent internet AI product.
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NO OFFER OR SOLICITATION
This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the Company’s planned financings, intention to hold the 2023 Annual Meeting, any stock split, reverse stock split or other similar corporate action, the Company’s compliance with listing requirements of Nasdaq Stock Market LLC (“Nasdaq”), including with regard to FF Top’s board designation rights, the non-binding City of Huanggang Framework Agreement and the timing thereof, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include whether the FF Top Holdings LLC Shareholder Agreement complies with Nasdaq listing requirements, including Nasdaq Listing Rule 5640 regarding voting rights, the market performance of the Company’s Common Stock, the Company’s ability to regain compliance with the Nasdaq listing requirements and the Company’s ability to execute definitive documentation in connection with and/or satisfy the conditions precedent and close on the various financings previously disclosed by the Company and anticipated additional financings, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s ability to amend its certificate of incorporation to permit sufficient authorized shares to be issued in connection with the Company’s existing and contemplated financings; the ability of the Company to agree on definitive documents to effectuate the non-binding City of Huanggang Framework Agreement; the Company’s ability to remain in compliance with its public filing requirements under the Securities Exchange Act of 1934, as amended, and Nasdaq listing requirements and to continue to be listed on Nasdaq (including following the execution of the Shareholder Agreement); the outcome of the SEC investigation relating to the matters that were the subject of the Special Committee investigation and other litigation involving the Company; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the success of other competing manufacturers; the performance and security of the Company’s vehicles; potential litigation involving the Company; the result of future financing efforts and general economic and market conditions impacting demand for the Company’s products; recent cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; and the ability of the Company to attract and retain directors and employees. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s registration statement on Form S-1 filed on February 13, 2023, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
###
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Faraday Future Intelligent Electric Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | Audited | |||||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | $ | 50,863 | $ | 80,429 | $ | 311,084 | $ | 174,935 | ||||||||
| Sales and marketing | 4,500 | 6,019 | 20,772 | 17,118 | ||||||||||||
| General and administrative | 27,264 | 33,757 | 116,437 | 97,905 | ||||||||||||
| Loss on disposal of property and equipment | 1,288 | 1,204 | 2,695 | 64,191 | ||||||||||||
| Total operating expenses | 83,915 | 121,409 | 450,988 | 354,149 | ||||||||||||
| Loss from operations | (83,915 | ) | (121,409 | ) | (450,988 | ) | (354,149 | ) | ||||||||
| Change in fair value measurements | (69,049 | ) | 37,694 | (69,671 | ) | (22,700 | ) | |||||||||
| Interest expense | (1,699 | ) | (3,631 | ) | (7,236 | ) | (30,181 | ) | ||||||||
| Related party interest expense | (948 | ) | (898 | ) | (3,879 | ) | (16,663 | ) | ||||||||
| Other income (expense), net | 1,763 | (4,950 | ) | (12,544 | ) | (5,668 | ) | |||||||||
| Gain (loss) on settlement of related party notes payable, notes payable, and vendor payables in trust, net | — | 9,132 | (7,690 | ) | (86,904 | ) | ||||||||||
| Loss before income taxes | (153,848 | ) | (84,062 | ) | (552,008 | ) | (516,265 | ) | ||||||||
| Income tax provision | (52 | ) | (237 | ) | (61 | ) | (240 | ) | ||||||||
| Net loss | $ | (153,900 | ) | $ | (84,299 | ) | $ | (552,069 | ) | $ | (516,505 | ) | ||||
| Per share information: | ||||||||||||||||
| Net loss per Common Stock – Class A and Class B – basic and diluted | $ | (0.32 | ) | $ | (0.26 | ) | $ | (1.50 | ) | $ | (2.21 | ) | ||||
| Weighted average Common Stock outstanding – Class A and Class B – basic and diluted | 473,622,385 | 321,533,817 | 367,254,444 | 233,390,675 | ||||||||||||
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Faraday Future Intelligent Electric Inc.
Consolidated Balance Sheets
(in thousands)
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Audited | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 16,968 | $ | 505,091 | ||||
| Restricted cash | 1,546 | 25,386 | ||||||
| Deposits | 26,804 | 63,370 | ||||||
| Other current assets | 21,087 | 13,410 | ||||||
| Total current assets | 66,405 | 607,257 | ||||||
| Property and equipment, net | 417,803 | 293,135 | ||||||
| Operating lease right-of-use assets | 19,588 | — | ||||||
| Other non-current assets | 6,492 | 7,040 | ||||||
| Total assets | $ | 510,288 | $ | 907,432 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 87,376 | $ | 37,773 | ||||
| Accrued expenses and other current liabilities | 65,709 | 87,938 | ||||||
| Bridge warrants | 95,130 | — | ||||||
| Related party accrued interest | — | 11,231 | ||||||
| Accrued interest | 1,864 | 8,263 | ||||||
| Operating leases liabilities, current portion | 2,538 | — | ||||||
| Finance leases liabilities, current portion | 1,364 | 2,574 | ||||||
| Related party notes payable | 8,406 | 13,655 | ||||||
| Notes payable, current portion | 5,097 | 132,372 | ||||||
| Total current liabilities | 267,484 | 293,806 | ||||||
| Finance leases liabilities, less current portion | 6,570 | 7,570 | ||||||
| Operating leases liabilities, less current portion | 18,044 | — | ||||||
| Other liabilities | 9,429 | 3,720 | ||||||
| Notes payable, less current portion | 26,008 | 34,682 | ||||||
| Total liabilities | 327,535 | 339,778 | ||||||
| Total stockholders’ equity | 182,753 | 567,654 | ||||||
| Total liabilities and stockholders’ equity | $ | 510,288 | $ | 907,432 | ||||
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Faraday Future Intelligent Electric Inc.
Consolidated Statements of Cash Flows
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | Audited | |||||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net loss | $ | (153,900 | ) | $ | (84,299 | ) | $ | (552,069 | ) | $ | (516,505 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||||||||||
| Depreciation and amortization expense | 697 | 842 | 2,975 | 2,979 | ||||||||||||
| Amortization of operating lease right-of-use assets and intangible assets | 955 | 276 | 2,520 | 368 | ||||||||||||
| Stock-based compensation | 7,860 | 2,824 | 17,653 | 11,345 | ||||||||||||
| Vesting of restricted stock awards for employee bonus | — | 3,997 | — | 18,617 | ||||||||||||
| Loss on disposal of property and equipment | 1,288 | 1,204 | 2,695 | 64,191 | ||||||||||||
| Change in fair value measurement of related party notes payable and notes payable | (26,093 | ) | (37,694 | ) | (25,471 | ) | 22,700 | |||||||||
| Change in fair value measurement of warrant liability | 95,130 | — | 95,130 | — | ||||||||||||
| Loss (gain) on foreign exchange | — | 978 | 2,484 | (845 | ) | |||||||||||
| Loss (gain) on forgiveness of accounts payable and deposits, net | 2,208 | (2,814 | ) | 5,200 | (7,005 | ) | ||||||||||
| Non-cash interest expense | 1,610 | 4,536 | 10,078 | 41,014 | ||||||||||||
| (Gain) loss on extinguishment of related party notes payable, notes payable and vendor payables in trust, net | — | (9,132 | ) | 7,690 | 86,904 | |||||||||||
| Gain on forgiveness of vendor payables in trust | — | — | — | (1,731 | ) | |||||||||||
| Reserve for unrecoverable value added taxes | — | — | — | 6,404 | ||||||||||||
| Other | 452 | 842 | 776 | 842 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Deposits | 14,772 | (12,707 | ) | 28,136 | (48,503 | ) | ||||||||||
| Other current and non-current assets | (4,310 | ) | (499 | ) | (8,841 | ) | (16,906 | ) | ||||||||
| Accounts payable | 29,554 | 3,809 | 57,021 | (36,625 | ) | |||||||||||
| Accrued expenses and other current and non-current liabilities | 13,030 | 25,950 | (14,947 | ) | 31,824 | |||||||||||
| Operating lease liabilities | 1,266 | — | (1,620 | ) | — | |||||||||||
| Accrued interest expense | (12,468 | ) | — | (12,468 | ) | — | ||||||||||
| Transfers between vendor payables in trust and accounts payable | — | — | — | 1,167 | ||||||||||||
| Net cash used in operating activities | $ | (27,949 | ) | $ | (101,887 | ) | $ | (383,058 | ) | $ | (339,765 | ) | ||||
| Cash flows from investing activities | ||||||||||||||||
| Payments for property and equipment | $ | (11,123 | ) | $ | (58,417 | ) | $ | (123,222 | ) | $ | (95,681 | ) | ||||
| Net cash used in investing activities | $ | (11,123 | ) | $ | (58,417 | ) | $ | (123,222 | ) | $ | (95,681 | ) | ||||
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Faraday Future Intelligent Electric Inc.
Consolidated Statements of Cash Flows - (Continued)
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | Audited | |||||||||||||||
| Cash flows from financing activities | ||||||||||||||||
| Proceeds from notes payable, net of original issuance discount | $ | 33,750 | $ | — | $ | 73,800 | $ | 172,031 | ||||||||
| Proceeds from exercise of stock options | — | 95 | 9,535 | 10,587 | ||||||||||||
| Payments of notes payable issuance costs | (1,021 | ) | — | (3,834 | ) | (3,355 | ) | |||||||||
| Payments of notes payable, including liquidation premium | (21 | ) | — | (87,279 | ) | (48,210 | ) | |||||||||
| Payments of related party notes payable | (517 | ) | — | (517 | ) | (38,217 | ) | |||||||||
| Proceeds from exercise of warrants | 2,501 | — | 4,229 | — | ||||||||||||
| Repurchase and retirement of Common Stock | — | — | (767 | ) | — | |||||||||||
| Payments of finance lease obligations | (478 | ) | — | (1,888 | ) | — | ||||||||||
| Payments of capital lease obligations | — | (521 | ) | — | (3,212 | ) | ||||||||||
| Proceeds from issuance of Class A Common Stock in the Business Combination | — | — | — | 229,583 | ||||||||||||
| Proceeds from issuance of Class A Common Stock pursuant to the PIPE Financing | — | — | — | 761,400 | ||||||||||||
| Transaction costs paid in connection with the Business Combination | — | — | — | (23,148 | ) | |||||||||||
| Transaction costs paid in connection with the PIPE Financing | — | — | — | (61,130 | ) | |||||||||||
| Payments of vendor payables in trust | — | — | — | (27,722 | ) | |||||||||||
| Transfers between vendor payables in trust and accounts payable | — | — | — | (1,167 | ) | |||||||||||
| Proceeds from related party notes payable | — | — | — | 200 | ||||||||||||
| Payments of stock issuance costs | — | — | — | (1,071 | ) | |||||||||||
| Net cash provided by (used in) financing activities | $ | 34,214 | $ | (426 | ) | $ | (6,721 | ) | $ | 966,569 | ||||||
| Effect of exchange rate changes on cash and restricted cash | (10,556 | ) | 63 | 1,038 | (2,473 | ) | ||||||||||
| Net (decrease) increase in cash and restricted cash | $ | (15,414 | ) | $ | (160,667 | ) | $ | (511,963 | ) | $ | 528,650 | |||||
| Cash and restricted cash, beginning of period | 33,928 | 691,144 | 530,477 | 1,827 | ||||||||||||
| Cash and restricted cash, end of period | $ | 18,514 | $ | 530,477 | $ | 18,514 | $ | 530,477 | ||||||||
| Cash | $ | 16,968 | $ | 505,091 | $ | 16,968 | $ | 505,091 | ||||||||
| Restricted cash | 1,546 | 25,386 | 1,546 | 25,386 | ||||||||||||
| Total cash and restricted cash, end of period | $ | 18,514 | $ | 530,477 | $ | 18,514 | $ | 530,477 | ||||||||
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Exhibit 99.2
Faraday Future Intelligent Electric Inc. Fiscal Fourth Quarter and Full Year 2022 Earnings Release March 08, 2023
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 2 Legal Disclaimers Forward Looking Statements This presentation includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Pr ivate Securities Litigation Reform Act of 1995. When used in this presentation, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “see ks, ” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward - looking statements. These forward - looking statements, which include statements regarding the Company’s intention to hold the 2023 Annual Meeting, any stock split, reverse stock split or other similar corp ora te action, the Company’s compliance with listing requirements of Nasdaq Stock Market LLC (“Nasdaq”), including with regard to FF Top’s board designation rights, the non - binding City of Huanggan g Framework Agreement and the timing thereof, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assu mpt ions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward - look ing statements. Important factors, among others, that may affect actual results or outcomes include whether the FF Top Holdings LLC Shareholder Agreement complies with Nasdaq listing req uirements, including Nasdaq Listing Rule 5640 regarding voting rights, the market performance of the Company’s Common Stock, the Company’s ability to regain compliance with the Nasd aq listing requirements and the Company’s ability to satisfy the conditions precedent and close on the various financings previously disclosed by the Company and anticipated additional f ina ncings, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s ability to amend its certificate of incorporation to permit suffi cie nt authorized shares to be issued in connection with the Company’s existing and contemplated financings; the ability of the Company to agree on definitive documents to effectuate the no n - binding City of Huanggang Framework Agreement; the Company’s ability to remain in compliance with its public filing requirements under the Securities Exchange Act of 1934, as a men ded, and Nasdaq listing requirements and to continue to be listed on Nasdaq (including following the execution of the Shareholder Agreement); the outcome of the SEC investigation relat ing to the matters that were the subject of the Special Committee investigation and other litigation involving the Company; the Company’s ability to execute on its plans to develop and market it s vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degr ee of market acceptance of the Company’s vehicles; the success of other competing manufacturers; the performance and security of the Company’s vehicles; potential litigation involving the Com pan y; the result of future financing efforts and general economic and market conditions impacting demand for the Company’s products; recent cost, headcount and salary reduction actions may no t b e sufficient or may not achieve their expected results; and the ability of the Company to attract and retain directors and employees. The foregoing list of factors is not exhaustive. Yo u s hould carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s registration statement on Form S - 1 filed on February 13, 2023, and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual even ts and results to differ materially from those contained in the forward - looking statements. Forward - looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward - looking statements, and the Company does not undertake any obligation to update or revise any forward - looking statements, whether as a result of new informa tion, future events or otherwise, except as required by law. No Offer or Solicitation This communication shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall th ere be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such juris dic tion. Trademarks This presentation contains trademarks, service marks, trade names and copyrights of Faraday and other companies, which are th e p roperty of their respective owners.
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 3 Table of Contents 01. Company Overview 02. Business Update 03. Flagship Product Offering, the FF 91 Futurist 04. Financials
01 — Company Overview
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 5 Company Introduction Faraday Future (FF) is the pioneer of the ultimate intelligent TechLuxury ultra spire market in the intelligent EV era, and a disruptor of the traditional ultra - luxury car civilization
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 6 We Envision Faraday Future’s Growth in Three Phases — Launch multiple vehicle models — Introduce and scale ecosystem revenue streams (internet apps, software and sharing) with a goal to establish ourselves as a major player in the high - value user market Phase 02 — Deliver FF 91 Futurist Alliance, FF 91 Futurist and FF 91 with high quality and high product power to our global ultra spire customers, thereby disrupting traditional luxury brands; Ultimately becoming the leader in the global spire customer market Phase 01 — Focused on retaining and growing high - value customers through hardware and eco revenue (internet apps, software and sharing services), thus increasing engagement and profitability Phase 03
02 — Business Update
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 8 Fully Aligned Stockholders, Board and Management — 20 - year automotive veteran with international and extensive operational industry experience — Led Jaguar Land Rover China to product delivery within two years and ramped up the total sales volume to hundreds of thousands of units Xuefeng (XF) Chen Global Chief Executive Officer Yun Han Chief Accounting Officer & Interim Chief Financial Officer — CPA with over 13 years at PricewaterhouseCoopers in its technical accounting and audit practice — Previously served as Sr. VP and CAO at Romeo Power
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 9 Faraday Future Remains on Track (1) to Achieve Start of Production (SOP) of its Flagship FF 91 Futurist by March 30, 2023 — FF 91 has received an official EPA rating of 381 miles of Electric Vehicle (EV) range, which is almost 50 - 70 miles more than our direct competitors in a comparable price category — Significant upgrades of systems and components – both in the EV area (powertrain, battery, charging, chassis, and interior) and I.A.I. (2) area (Computing, sensing, communication, user interface) make FF 91 Futurist a leading Ultimate Intelligent TechLuxury offering — Faraday Future shipped latest production - intent FF 91 Futurist to China for final evaluation and testing, validating the Company’s promotion of its US - China dual - home market strategy, which calls for production and sales in both the U.S. and China, the world’s two largest markets for electric vehicles Product and Engineering — FF’s direct sales model will allow customers to place orders online and experience our cars at FF’s self - owned and partners owned showroom and experience centers — FF has obtained the necessary direct sales licensing requirements to serve as a top tier ultra - luxury OEM — We are pleased to announce the launch of our Flagship Brand Experience Center project in Beverly Hills and eagerly anticipate the opportunity to demonstrate our cars there — Our initial 2023 sales efforts will begin in the Los Angeles metro region followed by the San Francisco Bay Area and subsequently, the New York metro region. In China, our initial sales efforts will begin with Shanghai and Beijing Sales and Service — Hanford plant ready for SOP with body shop and paint shop equipment installed — Company ramped up hiring at Hanford as it sprints towards its FF 91 Futurist SOP — Suppliers re - engaged; FF 91 Futurist critical components sourced — Commenced additional cost reduction activities Manufacturing and Supply Chain (1) Subject to timely receipt of financing from investors (2) Internet, Autonomous Driving and Intelligence
03 — Introducing our Flagship Product Offering, the FF 91 Futurist
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 11 FF 91 Futurist — Extreme Technology, Ultimate Intelligent User Experience and a Complete Ecosystem
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 12 — NASA inspired zero gravity rear passenger seats with industry leading 60 degree recline and leg room — FF AI supports complex voice commands for comfort, productivity, entertainment and navigation — Advanced safety, autonomous driving (2) and parking — Spa mode function for passenger wellness — User experience is carried from seat - to - seat and vehicle - to - vehicle via the user’s unique FFID (3) — Facial recognition in each seat position configures product preferences and settings for each passenger — Seamless mobile 5G connectivity for vehicle controls, productivity & entertainment — Intuitive on - screen gesture control for distraction free driving — Driver, passenger, rear passenger displays provide a truly unique and immersive digital experience for every individual Immersive Connected Intuitive FF 91 Futurist Experience (1) All statements shown reflect expected performance / capabilities for production ready vehicles. Actual performance / capabili tie s may be different. Please see Risk Factors within the S - 1 filed on 2/13/2023 (1) Some of the functionality may not be not available at launch (2) FF 91 hardware at start of delivery capable of supporting L3 autonomous driving (3) FFID is a unique Faraday Future user profile that ensures a consistent experience across the FF Ecosystem, recognizing the us er no matter where they are or which FF vehicle they are driving
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 13 Significant Upgrades of Key Components — FF 91 Futurist is a Competitive TechLuxury Offering
04 — Financials
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 15 Governance Resolution, Timely SEC Filings Allowed Faraday Future to Raise Financing Commitments that is Expected to Provide Sufficient Funding to Achieve FF 91 Start of Production (SOP) — Implemented cost - cutting initiatives that has allowed the Company to focus on core budget items — Developing business and system processes and implementing internal control to strengthen corporate governance Finance & Cost Controls — On February 05, 2023, FFIE announced $135.0 million financing commitments that are expected to provide sufficient funding to reach FF 91 Futurist Start of Production by late March 2023 (1) — Additional flexibility with equity line of credit (ELOC) of up to $350.0 million (2) , $20.0 million financing commitments after the Company achieves FF 91 Futurist Start of Deliveries (3) and optional convertible notes (4) in an aggregate amount of ~$160.0 million — On February 28, 2023, FFIE stockholders approved increase of Authorized Shares of Faraday Future Class A Common Stock - a milestone to receiving a portion of the $135.0 million financing announced on February 05, 2023 Capital Markets — SEC filings up to date — Registrations statements are on file (effective and pending) — A substantial portion (69.1%) of operating expenses was allocated to Research and Development, emphasizing Company's commitment to creating industry leading products and technologies SEC Filings (1) SOP timeline is subject to timely receipt of funds from our investors; Financing commitments are subject to certain condition s (2) Equity line of Credit is subject to certain conditions including but not limited to sufficient authorized shares and an effec tiv e registration statement (3) Deliveries to bona fide customers (4) Investors in the $135 million Secured Convertible Notes have the option to invest additional funding of up to $67.5 million a t t he same economics and Investors in Tranche A of the Securities Purchase Agreement have the option to invest an additional $103.0 million; Also assumes investors fund as per the funding sch edu le
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 16 Consolidated Statements of Operations Three Months Ended December 31, Twelve Months Ended December 31, (Unaudited) (Audited) 2022 2021 2022 2021 Operating expenses Research and development $ 50,863 $ 80,429 $ 311,084 $ 174,935 Sales and marketing 4,500 6,019 20,772 17,118 General and administrative 27,264 33,757 116,437 97,905 Loss on disposal of property and equipment 1,288 1,204 2,695 64,191 Total operating expenses 83,915 121,409 450,988 354,149 Loss from operations (83,915) (121,409) (450,988) (354,149) Change in fair value measurements (69,049) 37,694 (69,671) (22,700) Interest expense (1,699) (3,631) (7,236) (30,181) Related party interest expense (948) (898) (3,879) (16,663) Other income (expense), net 1,763 (4,950) (12,544) (5,668) Gain (loss) on settlement of related party notes payable, notes payable, and vendor payables in trust, net — 9,132 (7,690) (86,904) Loss before income taxes (153,848) (84,062) (552,008) (516,265) Income tax provision (52) (237) (61) (240) Net loss $ (153,900) $ (84,299) $ (552,069) $ (516,505) Per share information: Net loss per Common Stock – Class A and Class B – basic and diluted $ (0.32) $ (0.26) $ (1.50) $ (2.21) Weighted average Common Stock outstanding – Class A and Class B – basic and diluted 473,622,385 321,533,817 367,254,444 233,390,675 (in thousands, except share and per share data)
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 17 Consolidated Balance Sheets (Audited) Year Ended 2022 2021 Assets Current assets Cash $ 16,968 $ 505,091 Restricted cash 1,546 25,386 Deposits 26,804 63,370 Other current assets 21,087 13,410 Total current assets 66,405 607,257 Property and equipment, net 417,803 293,135 Operating lease right - of - use assets 19,588 — Other non - current assets 6,492 7,040 Total assets $ 510,288 $ 907,432 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 87,376 $ 37,773 Accrued expenses and other current liabilities 65,709 87,938 Bridge warrants 95,130 — Related party accrued interest — 11,231 Accrued interest 1,864 8,263 Operating leases liabilities, current portion 2,538 — Finance leases liabilities, current portion 1,364 2,574 Related party notes payable 8,406 13,655 Notes payable, current portion 5,097 132,372 Total current liabilities 267,484 293,806 Finance leases liabilities, less current portion 6,570 7,570 Operating leases liabilities, less current portion 18,044 — Other liabilities 9,429 3,720 Notes payable, less current portion 26,008 34,682 Total liabilities 327,535 339,778 Total stockholders’ equity 182,753 567,654 Total liabilities and stockholders’ equity $ 510,288 $ 907,432 (in thousands)
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 18 Consolidated Statements of Cash Flows Three Months Ended December 31, Twelve Months Ended December 31, (Unaudited) (Audited) 2022 2021 2022 2021 Cash flows from operating activities Net loss $ (153,900) $ (84,299) $ (552,069) $ (516,505) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization expense 697 842 2,975 2,979 Amortization of operating lease right - of - use assets and intangible assets 955 276 2,520 368 Stock - based compensation 7,860 2,824 17,653 11,345 Vesting of restricted stock awards for employee bonus — 3,997 — 18,617 Loss on disposal of property and equipment 1,288 1,204 2,695 64,191 Change in fair value measurement of related party notes payable and notes payable (26,093) (37,694) (25,471) 22,700 Change in fair value measurement of warrant liability 95,130 — 95,130 — Loss (gain) on foreign exchange — 978 2,484 (845) Loss (gain) on forgiveness of accounts payable and deposits, net 2,208 (2,814) 5,200 (7,005) Non - cash interest expense 1,610 4,536 10,078 41,014 (Gain) loss on extinguishment of related party notes payable, notes payable and vendor payables in trust, net — (9,132) 7,690 86,904 Gain on forgiveness of vendor payables in trust — — — (1,731) Reserve for unrecoverable value added taxes — — — 6,404 Other 452 842 776 842 Changes in operating assets and liabilities: Deposits 14,772 (12,707) 28,136 (48,503) Other current and non - current assets (4,310) (499) (8,841) (16,906) Accounts payable 29,554 3,809 57,021 (36,625) Accrued expenses and other current and non - current liabilities 13,030 25,950 (14,947) 31,824 Operating lease liabilities 1,266 — (1,620) — Accrued interest expense (12,468) — (12,468) — Transfers between vendor payables in trust and accounts payable — — — 1,167 Net cash used in operating activities $ (27,949) $ (101,887) $ (383,058) $ (339,765) Cash flows from investing activities Payments for property and equipment $ (11,123) $ (58,417) $ (123,222) $ (95,681) Net cash used in investing activities $ (11,123) $ (58,417) $ (123,222) $ (95,681) (in thousands)
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 19 Consolidated Statements of Cash Flows — (Continued) Three Months Ended December 31, Twelve Months Ended December 31, (Unaudited) (Audited) 2022 2021 2022 2021 Cash flows from financing activities Proceeds from notes payable, net of original issuance discount $ 33,750 $ — $ 73,800 $ 172,031 Proceeds from exercise of stock options — 95 9,535 10,587 Payments of notes payable issuance costs (1,021) — (3,834) (3,355) Payments of notes payable, including liquidation premium (21) — (87,279) (48,210) Payments of related party notes payable (517) — (517) (38,217) Proceeds from exercise of warrants 2,501 — 4,229 — Repurchase and retirement of Common Stock — — (767) — Payments of finance lease obligations (478) — (1,888) — Payments of capital lease obligations — (521) — (3,212) Proceeds from issuance of Class A Common Stock in the Business Combination — — — 229,583 Proceeds from issuance of Class A Common Stock pursuant to the PIPE Financing — — — 761,400 Transaction costs paid in connection with the Business Combination — — — (23,148) Transaction costs paid in connection with the PIPE Financing — — — (61,130) Payments of vendor payables in trust — — — (27,722) Transfers between vendor payables in trust and accounts payable — — — (1,167) Proceeds from related party notes payable — — — 200 Payments of stock issuance costs — — — (1,071) Net cash provided by (used in) financing activities $ 34,214 $ (426) $ (6,721) $ 966,569 Effect of exchange rate changes on cash and restricted cash (10,556) 63 1,038 (2,473) Net (decrease) increase in cash and restricted cash $ (15,414) $ (160,667) $ (511,963) $ 528,650 Cash and restricted cash, beginning of period 33,928 691,144 530,477 1,827 Cash and restricted cash, end of period $ 18,514 $ 530,477 $ 18,514 $ 530,477 Cash $ 16,968 $ 505,091 $ 16,968 $ 505,091 Restricted cash 1,546 25,386 1,546 25,386 Total cash and restricted cash, end of period $ 18,514 $ 530,477 $ 18,514 $ 530,477 (in thousands)
20 Alternate outro image Thank you Reserve yours today — https://www.ff.com/us/preorder/
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 21 FF Delivers a Unique Value Proposition Through Differentiated Brand Positioning — Differentiated premium brand positioning — FF products designed for different vehicle segments, sharing common brand DNA — Modern design: styling and interior materials — Superior driving experience: leading power and performance — Personalized user experience: space, comfort and connectivity — FF brand DNA will be established via FF 91 series and carried over to FF 81 and FF 71 series (subject to future financing) — FF has a highly differentiated product offering in its segment (1) Based on third - party and Company internal sources; Illustrative and not intended to be comprehensive Brand perception of select premium EV and traditional brands (1) Luxurious Racing Inspired Traditional Innovative
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 22 A white space exists where future customers demand both traditional luxury and cutting - edge technology and connectivity. FF 91 Futurist delivers both. FF 91 Futurist — The Very First Ultimate Intelligent TechLuxury Product Offering
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 23 FF 91 Futurist Performance Specs Compare Favorably with Other Ultra - luxury Vehicles Ferrari 296 GTB 0 – 60 mph 2.9 sec Horsepower 818 HP Range 330 miles Mercedes Maybach S 680 4Matic 0 – 60 mph 4.5 sec Horsepower 621 HP Range 297 miles Rolls Royce Cullinan 0 – 60 mph 4.5 sec Horsepower 563 HP Range 298 miles FF 91 Futurist 0 – 60 mph 2.27 sec Horsepower 1050 HP EPA Range 381 miles Product range calculated based on monroney label miles per (MPG) and vehicle tank capacity All statements shown reflect expected performance / capabilities for production ready vehicles. Actual performance / capabili tie s may be different.
© 2023 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL 24 FF 91 Futurist Performance Specs Compare Favorably With a Technology Vehicle