Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Entity File Number | 001-38612 | |
Entity Registrant Name | ELECTRAMECCANICA VEHICLES CORP. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 98-1485035 | |
Entity Address State Or Province | BC | |
Entity Address, Address Line One | 6060 Silver Drive | |
Entity Address, Adress Line Two | Third Floor | |
Entity Address, City or Town | Burnaby | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V5H 0H5 | |
City Area Code | 604 | |
Local Phone Number | 428-7656 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 119,287,917 | |
Entity Central Index Key | 0001637736 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Shares, without par value | ||
Document and Entity Information | ||
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | SOLO | |
Security Exchange Name | NASDAQ | |
Warrants, each to purchase one Common Share | ||
Document and Entity Information | ||
Title of 12(b) Security | Warrants, each to purchase one Common Share | |
Trading Symbol | SOLOW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||
Revenue | $ 104,002 | $ 1,546,715 | $ 608,429 | $ 2,585,358 |
Cost of revenue | 1,305,998 | 3,430,603 | 1,713,648 | 6,372,739 |
Gross loss | (1,201,996) | (1,883,888) | (1,105,219) | (3,787,381) |
Operating expenses | ||||
General and administrative expenses | 8,122,861 | 9,057,196 | 17,001,832 | 17,790,774 |
Research and development expenses | 3,651,072 | 5,614,265 | 6,234,775 | 10,285,365 |
Sales and marketing expenses | 552,496 | 3,105,470 | 2,891,796 | 6,108,325 |
Total operating expenses | 12,326,429 | 17,776,931 | 26,128,403 | 34,184,464 |
Operating loss | (13,528,425) | (19,660,819) | (27,233,622) | (37,971,845) |
Other non-operating income (expense) | ||||
Interest income | 1,358,179 | 241,421 | 2,797,017 | 327,666 |
Changes in fair value of derivative liabilities | 68,473 | 190,898 | ||
Other income (expense), net | (1,469,007) | (28,761) | (1,493,417) | 13,648 |
Gain on settlement of legal liabilities | 858,366 | 858,366 | ||
Foreign exchange loss | (86,098) | (149,958) | (106,963) | (55,618) |
Loss before taxes | (12,866,985) | (19,529,644) | (25,178,619) | (37,495,251) |
Current income tax expense | 1,000 | 847 | 1,000 | 847 |
Net loss | (12,867,985) | (19,530,491) | (25,179,619) | (37,496,098) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (28,301) | 12,195 | 9,006 | 6,345 |
Comprehensive loss | $ (12,896,286) | $ (19,518,296) | $ (25,170,613) | $ (37,489,753) |
Loss per share - basic | $ (0.10) | $ (0.16) | $ (0.21) | $ (0.32) |
Loss per share - diluted | $ (0.10) | $ (0.16) | $ (0.21) | $ (0.32) |
Weighted average number of shares outstanding - basic | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 |
Weighted average number of shares outstanding - diluted | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 89,334,551 | $ 134,255,538 |
Receivables, net | 409,069 | 273,958 |
Prepaid expenses and other current assets | 4,683,725 | 11,390,850 |
Inventory, net | 2,791,076 | 4,233,055 |
Total current assets | 97,218,421 | 150,153,401 |
Restricted cash | 1,717,897 | 515,449 |
Plant and equipment, net | 14,609,023 | 16,452,477 |
Operating lease right-of-use assets | 7,456,826 | 9,031,277 |
Other assets | 4,267,924 | 5,093,825 |
Total assets | 125,270,091 | 181,246,429 |
Current liabilities | ||
Trade payables and accrued liabilities | 3,997,728 | 19,346,470 |
Customer deposits | 37,089 | 339,744 |
Current portion of lease liabilities | 1,162,673 | 810,677 |
Contract termination liability | 15,700,000 | |
Total current liabilities | 5,197,490 | 36,196,891 |
Share-based compensation liability | 69,651 | 76,476 |
Lease liabilities | 16,127,975 | 17,528,282 |
Deferred revenue | 119,253 | |
Total liabilities | 21,395,116 | 53,920,902 |
Commitments and contingencies | ||
Shareholders' equity | ||
Share capital - without par value, unlimited shares authorized; 119,287,917 shares issued and outstanding as of June 30, 2023 and December 31, 2022 | 397,284,531 | 395,564,470 |
Accumulated other comprehensive income | 4,575,231 | 4,566,225 |
Accumulated deficit | (297,984,787) | (272,805,168) |
Total shareholders' equity | 103,874,975 | 127,325,527 |
Total liabilities and shareholders' equity | $ 125,270,091 | $ 181,246,429 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Share capital - without par value | $ 0 | $ 0 |
Share capital - shares authorized | Unlimited | Unlimited |
Share capital - shares issued | 119,287,917 | 119,287,917 |
Share capital - shares outstanding | 119,287,917 | 119,287,917 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (25,179,619) | $ (37,496,098) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,709,842 | 2,444,378 |
Stock-based compensation expense | 1,729,378 | 2,760,612 |
Inventory provision | 1,159,700 | 2,812,496 |
Loss on disposal of long-lived asset | 1,561,153 | |
Gain on settlement of legal liabilities | (858,366) | |
Change in fair value of derivative liabilities | (190,898) | |
Unrealized currency translation gain | 36,981 | |
Changes in operating assets and liabilities: | ||
Receivables | 44,888 | 169,940 |
Prepaid expenses and other assets | (360,147) | (6,291,841) |
Inventory | (181,036) | (7,736,395) |
Trade payables and accrued liabilities | (14,773,098) | (140,410) |
Operating lease liabilities | 412,726 | 311,993 |
Customer deposits | (302,875) | (129,873) |
Contract termination liability | (8,000,000) | |
Net cash used in operating activities | (43,000,473) | (43,486,096) |
Cash flows from investing activities | ||
Expenditures on plant and equipment | (906,271) | (2,171,060) |
Proceeds from disposal of plant and equipment | 292,757 | |
Net cash used in investing activities | (613,514) | (2,171,060) |
Cash flows from financing activities | ||
Payment for issuance of common shares for RSU settlement | (20,786) | |
Payment for DSU settlement | (16,143) | |
Proceeds from issuance of common shares for options exercised | 344,066 | |
Net cash provided by (used in) financing activities | (16,143) | 323,280 |
Decrease in cash and cash equivalents and restricted cash | (43,630,130) | (45,333,876) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (88,409) | 6,345 |
Cash and cash equivalents and restricted cash, beginning | 134,770,987 | 222,219,684 |
Cash and cash equivalents and restricted cash, ending | $ 91,052,448 | $ 176,892,153 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Share capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Beginning balance (in shares) at Dec. 31, 2021 | 117,338,964 | |||
Beginning balance at Dec. 31, 2021 | $ 390,290,103 | $ 4,501,800 | $ (149,106,655) | $ 245,685,248 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Shares issued pursuant to exercise of options (in shares) | 1,245,455 | |||
Shares issued pursuant to exercise of options | $ 295,516 | 295,516 | ||
Shares issued pursuant to settlement of RSU (in shares) | 27,077 | |||
Shares issued pursuant to settlement of RSU | $ (20,786) | (20,786) | ||
Stock-based compensation | $ 1,109,266 | 1,109,266 | ||
Net loss | (17,965,607) | (17,965,607) | ||
Foreign currency translation | (5,850) | (5,850) | ||
Ending balance (in shares) at Mar. 31, 2022 | 118,611,496 | |||
Ending balance at Mar. 31, 2022 | $ 391,674,099 | 4,495,950 | (167,072,262) | 229,097,787 |
Beginning balance (in shares) at Dec. 31, 2021 | 117,338,964 | |||
Beginning balance at Dec. 31, 2021 | $ 390,290,103 | 4,501,800 | (149,106,655) | $ 245,685,248 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Shares issued pursuant to settlement of RSU (in shares) | (27,077) | |||
Shares issued pursuant to settlement of RSU | $ (20,786) | |||
Net loss | (37,496,098) | |||
Foreign currency translation | 6,345 | |||
Ending balance (in shares) at Jun. 30, 2022 | 118,725,132 | |||
Ending balance at Jun. 30, 2022 | $ 393,271,086 | 4,508,145 | (186,602,753) | 211,176,478 |
Beginning balance (in shares) at Mar. 31, 2022 | 118,611,496 | |||
Beginning balance at Mar. 31, 2022 | $ 391,674,099 | 4,495,950 | (167,072,262) | 229,097,787 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Shares issued pursuant to exercise of options (in shares) | 113,636 | |||
Shares issued pursuant to exercise of options | $ 48,550 | 48,550 | ||
Stock-based compensation | $ 1,548,437 | 1,548,437 | ||
Net loss | (19,530,491) | (19,530,491) | ||
Foreign currency translation | 12,195 | 12,195 | ||
Ending balance (in shares) at Jun. 30, 2022 | 118,725,132 | |||
Ending balance at Jun. 30, 2022 | $ 393,271,086 | 4,508,145 | (186,602,753) | 211,176,478 |
Beginning balance (in shares) at Dec. 31, 2022 | 119,287,917 | |||
Beginning balance at Dec. 31, 2022 | $ 395,564,470 | 4,566,225 | (272,805,168) | 127,325,527 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Stock-based compensation | $ 876,965 | 876,965 | ||
Net loss | (12,311,634) | (12,311,634) | ||
Foreign currency translation | 37,307 | 37,307 | ||
Ending balance (in shares) at Mar. 31, 2023 | 119,287,917 | |||
Ending balance at Mar. 31, 2023 | $ 396,441,435 | 4,603,532 | (285,116,802) | 115,928,165 |
Beginning balance (in shares) at Dec. 31, 2022 | 119,287,917 | |||
Beginning balance at Dec. 31, 2022 | $ 395,564,470 | 4,566,225 | (272,805,168) | $ 127,325,527 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Shares issued pursuant to settlement of RSU (in shares) | 0 | |||
Net loss | $ (25,179,619) | |||
Foreign currency translation | 9,006 | |||
Ending balance (in shares) at Jun. 30, 2023 | 119,287,917 | |||
Ending balance at Jun. 30, 2023 | $ 397,284,531 | 4,575,231 | (297,984,787) | 103,874,975 |
Beginning balance (in shares) at Mar. 31, 2023 | 119,287,917 | |||
Beginning balance at Mar. 31, 2023 | $ 396,441,435 | 4,603,532 | (285,116,802) | 115,928,165 |
Condensed Consolidated Statements of Changes in Stockholders' Equity | ||||
Stock-based compensation | $ 843,096 | 843,096 | ||
Net loss | (12,867,985) | (12,867,985) | ||
Foreign currency translation | (28,301) | (28,301) | ||
Ending balance (in shares) at Jun. 30, 2023 | 119,287,917 | |||
Ending balance at Jun. 30, 2023 | $ 397,284,531 | $ 4,575,231 | $ (297,984,787) | $ 103,874,975 |
Nature and continuance of opera
Nature and continuance of operations | 6 Months Ended |
Jun. 30, 2023 | |
Nature and continuance of operations | |
Nature and continuance of operations | 1. ElectraMeccanica Vehicles Corp. was incorporated on February 16, 2015, under the laws of the province of British Columbia, Canada, and its principal activity is the development and manufacturing of EVs. The head office and principal address of the Company are located at 6060 Silver Drive, Third Floor, Burnaby, British Columbia, Canada, V5H 0H5. These unaudited condensed consolidated financial statements have been prepared on the assumption that the Company will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. The Company’s continuation is dependent upon, among other things, the successful results from its EV contract assembly activities and its ability to design, develop and launch a new 4-wheel electric passenger vehicle, “Project E4” or “E4”, and generate profitable operations therefrom. Beginning in August 2020, the Company has designed, assembled, and sold a unique, three-wheeled, single-seat commuter electric vehicle, the SOLO. On February 17, 2023, the Company announced a voluntary recall of the SOLO due to an unidentified technical issue that resulted in loss of propulsion while driving in certain vehicles at certain times. On April 14, 2023, the Company decided to offer to repurchase all 429 previously retailed SOLO vehicles to ensure the safety of our customers. In December 2022, the Company decided to assemble other companies’ EVs to further leverage the resources and capabilities of its recently commissioned and state-of-the-art 235,000 square foot facility located in Mesa, Arizona. The Company continues to explore utilization of its Mesa EV plant through contract assembly as a service. The Company has been in preliminary discussions with multiple prospective EV companies that have expressed interest in potentially using the Company’s facility and skilled workforce as an extension of their own manufacturing and engineering facilities to serve incremental consumer and business demand. The Company continues to explore a 2-seat, 4-wheel, EV product (E4). The Company has completed initial exterior and interior designs. The Company also recently conducted market research to ascertain consumer reaction to exterior and interior design renderings, battery range, charging speed, marketing and branding requirements among other specifications. Development of E4 is at a preliminary stage and there can be no assurance that the Company will commence commercialization or have sufficient capital to reach commercial launch. The Company is exploring or may explore other strategic third-party opportunities and potential options for its business, which may include, but are not limited to, mergers or acquisitions of other assets or entities, collaborations, including partnerships and joint ventures, divestitures, and other potential transactions that may complement, expand, enhance, or realign the Company’s existing know-how, technology, development efforts, and/or market presence. There are no assurances that the Company will be successful in effecting any such transactions or realizing any of the intended benefits. Management intends to finance its operations over the next 12 months principally using existing cash on hand and may supplement by additional funding through private placements and/or public offerings of equity capital or debt, provided that such funding can be obtained on terms that are commercially competitive and on terms acceptable to the Company. |
Basis of presentation and summa
Basis of presentation and summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2023 | |
Basis of presentation and summary of significant accounting policies | |
Basis of presentation and summary of significant accounting policies | 2. Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of ElectraMeccanica Vehicles Corp. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements. All inter-company balances and transactions have been eliminated. The unaudited condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 should be read in conjunction with the consolidated financial statements and accompanying notes included in the 2022 Form 10-K. The unaudited condensed consolidated balance sheet as of December 31, 2022, was derived from audited consolidated financial statements included in the 2022 Form 10-K but does not include all disclosures required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The operating results for the quarter ended June 30, 2022 reflect the retrospective adoption of U.S. GAAP which was reflected in the 2022 Form 10-K. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. The Company’s significant accounting policies are described in Note 2 to the consolidated financial statements included in the 2022 Form 10-K. All financial information in this Quarterly Report is presented in U.S. dollars, unless otherwise indicated. Use of estimates The preparation of interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, estimating the write down of inventory to net realizable value, estimating the recall provision, and estimating the contingent liabilities for contract termination. Management estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. Segment reporting The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. Up until the fourth quarter of 2022, the Company managed, reported and evaluated its business in the following two reportable operating segments: (i) Electric Vehicles and (ii) Custom Built Vehicles. During the fourth quarter of 2022, the CODM changed how she makes operating decisions, assesses the performance of the business and allocates resources in a manner that caused the Company’s operating segments to change as a result of the Company having stopped receiving orders for custom built vehicles. In consideration of Financial Accounting Standards Board’s Accounting Standards Codification 280, Segment Reporting, the CODM determined that the Company is not organized around specific products and services, geographic regions or regulatory environments. Accordingly, beginning with the fourth quarter of 2022, the Company realigned its reporting structure, resulting in a single reportable segment, Electric Vehicles, in the United States. |
Cash and cash equivalents and r
Cash and cash equivalents and restricted cash | 6 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents and restricted cash | |
Cash and cash equivalents and restricted cash | 3. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s condensed consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. June 30, 2023 December 31,2022 Cash and cash equivalents $ 89,334,551 $ 134,255,538 Restricted cash 1,717,897 515,449 Total cash, cash equivalents and restricted cash $ 91,052,448 $ 134,770,987 The Company’s restricted cash as of June 30, 2023 and December 31, 2022, consists of certificates of deposits related to the Company’s corporate credit card program and a bank issued letter of credit. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid expenses and other current assets | |
Prepaid expenses and other current assets | 4. June 30, 2023 December 31,2022 SOLO vehicle deposit (at supplier) $ — $ 7,133,451 Battery cell deposit — 300,000 Prepaid insurance 907,189 1,095,152 Prepaid rent and security deposit 402,354 495,112 Cloud computing assets 1,372,617 1,234,039 Other prepaid expenses 2,001,565 1,133,096 Total prepaid expenses and other current assets $ 4,683,725 $ 11,390,850 The Company’s prepaid expenses and other current assets as of June 30, 2023 decreased compared with December 31, 2022 as a result of the settlement agreement with Chongqing Zongshen Automobile Industry Co., Ltd. (“Zongshen”), as further described in Note 10, which was partially offset by an increase in third party transaction prepaid expenses. |
Inventory, net
Inventory, net | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, net | |
Inventory, net | 5. The Company’s inventory consisted of the following: June 30, 2023 December 31, 2022 Parts and batteries $ 1,542,565 $ 1,242,055 Vehicles 2,408,211 18,022,771 Inventory provision (1,159,700) (15,031,771) Total inventory, net $ 2,791,076 $ 4,233,055 For both the three and six months ended June 30, 2023, $1,159,700 was recognized as inventory write-downs (June 30, 2022 – $1,361,160 and $2,812,496 for the three and six months respectively). These charges are reflected in cost of revenue. |
Plant and equipment, net
Plant and equipment, net | 6 Months Ended |
Jun. 30, 2023 | |
Plant and equipment, net | |
Plant and equipment, net | 6. June 30, 2023 December 31, 2022 Furniture and equipment $ 3,238,768 $ 2,117,901 Computer hardware and software 1,244,052 1,381,786 Vehicles 687,490 1,046,817 Leasehold improvements 11,419,614 12,862,333 Production tooling and molds 575,295 1,956,743 Total plant and equipment 17,165,219 19,365,580 Less: accumulated depreciation (2,556,196) (2,913,103) Total plant and equipment, net $ 14,609,023 $ 16,452,477 During the three and six months ended June 30, 2023, depreciation expense of $439,616 and $1,022,519, respectively, was included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss (June 30, 2022 – $1,102,683 and $2,138,966 for the three and six months, respectively). During the three and six months ended June 30, 2023, $nil and $1,498,130 of production tooling was transferred to equipment upon completion of the asset ($nil for both the three and six months ended June 30, 2022). During the three months ended June 30, 2023, the Company terminated the lease for its Burnaby, BC, Canada headquarters, and concurrently disposed of plant and equipment with the following net book values on the date of disposal: furniture and equipment of $153,482, leasehold improvements of $978,230, computer hardware of $42,599, and vehicles of $1,871. The loss on this disposal was $1,063,425, net of cash proceeds received of $112,757, and was recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss. During the six months ended June 30, 2023, the Company disposed of manufacturing equipment located in Mesa with a net book value of $337,126 on the date of disposal. The loss on this disposal was $157,126, net of cash proceeds receivable of $180,000, and was recorded in other income (expense), net in the condensed consolidated statement of operations and comprehensive loss. |
Other assets
Other assets | 6 Months Ended |
Jun. 30, 2023 | |
Other assets | |
Other assets | 7. June 30, 2023 December 31, 2022 Security deposit $ 1,161,000 $ 1,161,000 Cloud computing assets 3,094,968 3,920,869 Intangible assets 11,956 11,956 Total other assets $ 4,267,924 $ 5,093,825 During the three and six months ended June 30, 2023, amortization of $343,661 and $687,322, respectively, was recorded for capitalized cloud computing assets within general and administrative expenses in the condensed consolidated statement of operations and comprehensive loss (June 30, 2022 – $169,378 and $303,449 for the three and six months, respectively). |
Trade payables and accrued liab
Trade payables and accrued liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Trade payables and accrued liabilities | |
Trade payables and accrued liabilities | 8. June 30, 2023 December 31, 2022 Trade payables $ 948,202 $ 3,795,992 Recall provision 1,860,548 8,915,044 Accrued liabilities 1,188,978 6,635,434 Total trade payables and accrued liabilities $ 3,997,728 $ 19,346,470 On February 17, 2023, the Company announced a voluntary recall of the SOLO. On April 14, 2023, the Company issued a stop-drive and stop-sell notice and has notified customers of a vehicle buy-back program for all 429 SOLO vehicles sold since the release in 2021. The basis of the recall was a result of vehicle potentially experiencing a loss of propulsion while driving. As of December 31, 2022, a recall provision of $8,915,044 was recorded as an estimate of the cost to buy-back all retailed vehicles, which was included in trade payables and accrued liabilities within the Company’s condensed consolidated balance sheets. During the six months ended June 30, 2023, the Company made payments for 361 vehicles returned by customers, which reduced the recall provision balance to $1,860,548 as of June 30, 2023. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | 9. The Company has operating leases for its offices and manufacturing warehouse facilities. These leases span a period of five The components of lease expense, included within general and administrative expenses and sales and marketing expenses in the condensed consolidated statements of operations and comprehensive loss, are as follows: Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease expense Operating lease expense $ 457,248 $ 549,451 $ 1,399,379 $ 826,329 Short-term lease expense 175,689 382,387 323,565 771,307 $ 632,937 $ 931,838 $ 1,722,944 $ 1,597,636 June 30, 2023 December 31, 2022 Weighted average remaining operating lease term (in years) 9.14 9.41 Weighted average operating lease discount rate 10.46 % 10.28 % As of June 30, 2023, the maturities of the Company’s operating lease liabilities (excluding short-term leases) are as follows: June 30, 2023 2023 (remaining six months) $ 1,476,829 2024 2,860,671 2025 2,789,540 2026 2,847,403 2027 2,598,847 Thereafter 15,230,661 Total minimum lease payments 27,803,951 Less: interest 10,513,303 Present value of lease obligations 17,290,648 Less: Current portion 1,162,673 Long-term portion of lease obligations $ 16,127,975 During the three months ended June 30, 2023, the Company terminated the lease of its previous Burnaby, BC, Canada headquarters, and derecognized the right-of-use assets of $828,193 and lease liability of $936,029. The gain on this disposal was $107,836 and is recorded within other income (expense), net in the condensed consolidated statement of operations and comprehensive loss. |
Contract termination liability
Contract termination liability | 6 Months Ended |
Jun. 30, 2023 | |
Contract termination liability | |
Contract termination liability | 10. On September 29, 2017, the Company entered into a manufacturing agreement with Zongshen, which was amended on June 23, 2021 (as amended, the “Manufacturing Agreement”). Pursuant to the Manufacturing Agreement, Zongshen agreed to manufacture the Company’s SOLO vehicles, and the Company agreed to certain target purchase volumes for the period from June 1, 2021, to November 30, 2023. On December 20, 2022, the Company gave notice to Zongshen to immediately cease all production of SOLO vehicles due to the economic hardship and issues noted with the vehicles. As a result, Zongshen claimed $22.8 million in relation to the termination of the Manufacturing Agreement. As of December 31, 2022, the Company estimated a $15.7 million termination provision, representing the Company’s best assessment of the settlement amount, which is presented as a contract termination liability within the Company’s condensed consolidated balance sheets. On May 8, 2023, the Company entered into a settlement deed (the “Settlement Agreement”) with Zongshen, effective as of May 4, 2023. The Settlement Agreement resolves all outstanding claims relating to the Manufacturing Agreement and the related cancellation notice and defective notice provided by the Company to Zongshen. As of June 30, 2023, in fulfillment of all obligations under the Settlement Agreement and in settlement of the existing contract termination liability of $15.7 million, the Company paid $8.0 million in cash to Zongshen, de-recognized existing prepaid deposits of $7,167,340 and accounts payable to Zongshen of $281,462, and recognized 129 SOLO vehicle inventories received from Zongshen valued at $44,244, resulting in a gain on settlement of contract termination liability of $858,366. |
Share capital and other compone
Share capital and other components of equity | 6 Months Ended |
Jun. 30, 2023 | |
Share capital and other components of equity | |
Share capital and other components of equity | 11. Share capital The Company is authorized to issue an unlimited number of common shares without par value. The Company is authorized to issue an unlimited number of preferred shares without par value. As of both June 30, 2023 and December 31, 2022, the Company had 119,287,917 issued and outstanding common shares and nil preferred shares. Share options exercised During the six months ended June 30, 2023, the Company issued no common shares for options exercised by option holders. During the six months ended June 30, 2022, the Company issued 1,359,091 shares for proceeds of $344,066. RSUs exercised During the six months ended June 30, 2023, no restricted share units (“RSUs) vested. During the six months ended June 30, 2022, the Company issued 27,077 common shares in connection with the vesting of RSUs and decreased share capital by $20,786. Warrants On exercise, each warrant allows the holder to purchase one common share of the Company, including on a cashless basis, based on the formula as set forth in the applicable warrant agreement. Warrants of the Company classified as equity are composed of the following as at June 30, 2023: Number of warrants Number of warrants Date of issuance outstanding exercisable Exercise price Expiry date October 31, 2017 125,000 125,000 $ 15.00 October 31, 2024 August 8, 2018 4,513,253 4,513,253 $ 4.27 August 8, 2023 November 9, 2018 7,440 7,440 $ 3.20 November 9, 2023 November 9, 2018 749,788 749,788 $ 2.56 May 9, 2024 5,395,481 5,395,481 |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2023 | |
Stock-based compensation | |
Stock-based compensation | 12. Under the Company’s share-based payment arrangements, total stock-based compensation of $854,499 and $1,729,378 was recognized in the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023, respectively (June 30, 2022 – $1,554,064 and $2,760,612 for the three and six months, respectively). Three months ended Three months ended Six months ended Six months ended Share-based compensation expense recorded in June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 General and administrative expenses $ 814,409 $ 1,161,241 $ 1,586,349 $ 2,235,041 Research and development expenses 6,559 297,752 70,834 459,150 Sales and marketing expenses 33,531 95,071 72,195 66,421 $ 854,499 $ 1,554,064 $ 1,729,378 $ 2,760,612 Stock options The Company adopted its 2020 Stock Incentive Plan (the “Stock Incentive Plan”) on July 9, 2020, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and consultants of the Company certain stock-based compensation awards including non-transferable stock options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 30,000,000. Such stock options may be exercisable for a period of up to 10 years from the date of grant. Stock options may be exercised no later than 90 days following cessation of the optionee’s position with the Company unless any exercise extension has been approved in advance by the administrator of the Stock Incentive Plan. Stock options granted may vest based on the terms and conditions set out in the applicable stock option agreement. On exercise, each stock option allows the holder to purchase one common share of the Company, including on a cashless basis, based on the formula as set forth in the applicable stock option agreement. During the six months ended June 30, 2023 and 2022, the Company issued 1,266,454 and 2,408,849 options, respectively. Details of stock options outstanding at June 30, 2023 were as follows: Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $2.00 CAD 0.93 65,000 65,000 $0.535 6.73 500,000 — $0.57 6.86 101,298 46,757 $0.59 6.96 400,000 — $0.99 6.56 198,614 76,688 $1.08 6.31 129,274 91,140 $1.11 6.44 3,750,000 — $1.50 6.09 666,793 403,952 $1.91 2.55 2,955,000 2,848,058 $1.94 5.81 90,242 54,425 $2.13 5.60 47,099 30,283 $2.45 3.10 1,250,000 1,250,000 $2.53 3.11 50,000 50,000 $2.62 0.23 700,000 700,000 $3.01 1.44 750,000 750,000 $3.40 1.87 1,035,000 1,035,000 $3.41 4.06 520,000 509,155 $3.55 5.05 5,000 3,240 $3.56 5.37 108,109 73,021 $3.77 1.44 50,000 50,000 $4.15 1.44 750,000 750,000 $5.00 0.42 193,629 193,629 $7.75 4.64 30,000 25,000 $9.60 1.52 50,000 50,000 14,395,058 9,055,348 The fair value of options granted has been estimated using the Black-Scholes option pricing model and based on the weighted average of certain assumptions. See Note 6 in the consolidated financial statements and accompanying notes included in the 2022 Form 10-K for additional information regarding such assumptions. During the three and six months ended June 30, 2023, the Company recognized stock-based compensation expense of $627,499 and $1,289,151, respectively, relating to stock options granted (June 30, 2022 – $1,299,059 and $2,204,581 for the three and six months, respectively). DSUs Deferred Stock Units (“DSUs”) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to the Stock Incentive Plan. The Company allows the holders of the DSUs to settle the DSUs in cash (subject to the approval of the Plan Administrator (as defined in the Stock Incentive Plan)) or common shares. During the three months ended June 30, 2023 and 2022, the Company issued nil and 42,879 DSUs, respectively. The number and weighted average share prices of DSUs was as follows at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Number of Weighted average Number of Weighted average DSUs share price DSUs share price DSUs outstanding 111,231 $ 3.16 127,460 $ 3.02 DSUs exercisable 111,231 $ 3.16 127,460 $ 3.02 The fair value of the DSUs liabilities was estimated using the stock price as of June 30, 2023 and December 31, 2022. During the three and six months ended June 30, 2023, the Company recognized stock-based compensation expense of nil and $11,403, respectively. relating to DSUs granted (June 30, 2022 - $5,628 and $102,908 for the three and six months, respectively). RSUs RSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to the Stock Incentive Plan. RSUs are accounted for as equity-settled share-based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. Details of RSUs outstanding at June 30, 2023 and December 31, 2022 were as follows: June 30, 2023 December 31, 2022 Number of Weighted average Number of RSUs share price RSUs Deemed value RSUs outstanding 1,875,000 $ 1.02 1,875,000 $ 1.02 RSUs exercisable — $ — — $ — During the three and six months ended June 30, 2023, the Company recognized stock-based compensation expense of $215,597 and $428,824 relating to RSUs granted (June 30, 2022 - $249,378 and $453,123 for the three and six months, respectively). |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue | |
Revenue | 13. Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Revenue $ 104,002 $ 1,546,715 $ 608,429 $ 2,585,358 The Company generates revenue primarily through the sale of EVs as well as parts sales, services, repairs, and support services. The Company recognizes revenue related to the vehicle when the customer obtains control of the vehicle which occurs at a point in time either upon completion of delivery to the agreed upon delivery location or upon pick up of the vehicle by the customer. |
Interest income
Interest income | 6 Months Ended |
Jun. 30, 2023 | |
Interest income | |
Interest income | 14. Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Interest Income $ 1,358,179 $ 241,421 $ 2,797,017 $ 327,666 Interest income relates to interest earned on cash deposited in the Company’s bank accounts. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income taxes | |
Income taxes | 15. As of June 30, 2023 and December 31, 2022, the Company’s deferred tax liability was zero. Cumulative deferred tax assets are fully reserved as there is not sufficient evidence to conclude it is more likely than not the deferred tax assets are realizable. No current liability for federal state income taxes has been included in these unaudited condensed consolidated financial statements due to the loss for the periods. |
Basic and Diluted loss per shar
Basic and Diluted loss per share | 6 Months Ended |
Jun. 30, 2023 | |
Basic and Diluted loss per share | |
Basic and Diluted loss per share | 16. The calculation of basic and diluted loss per share for the three and six months ended June 30, 2023 was based on the net loss attributable to common shareholders of $12,867,985 and $25,179,619, respectively (June 30, 2022 – $19,530,491 and $37,496,098 for the three and six months, respectively), with the weighted average number of common shares outstanding of 119,287,917 for both the three and six months ended June 30, 2023 (June 30, 2022 – 118,612,731 and 118,532,693 for the three and six months, respectively). For the three and six months ended June 30, 2023, diluted loss per share did not include the effect of 14,395,058 stock options, 5,601,074 warrants, 111,231 DSUs and 1,875,000 RSUs, as the effect would have been anti-dilutive. For the three and six months ended June 30, 2022, diluted loss per share did not include the effect of 12,567,657 stock options, 7,058,021 warrants, 127,460 DSUs and 522,385 RSUs, as the effect would have been anti-dilutive. Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net loss $ (12,867,985) $ (19,530,491) $ (25,179,619) $ (37,496,098) Weighted average number of shares outstanding – basic and diluted 119,287,917 118,612,731 119,287,917 118,532,693 Loss per share – basic and diluted $ (0.10) $ (0.16) $ (0.21) $ (0.32) |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2023 | |
Segment information | |
Segment information | 17. During the three and six months ended June 30, 2023, the Company operated in one reportable business segment, Electric Vehicles, in Canada and the United States. The Company no longer includes custom built vehicles as a reportable business segment because it ceased production of such vehicles in December 2022. Supplemental geographic data has been provided below: Three months ended June 30, 2023 Three months ended June 30, 2022 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 104,002 $ — $ 1,305,537 $ 241,178 Gross loss (1,201,996) — (1,858,694) (25,194) Depreciation and amortization (783,278) — (1,271,456) (1,587) Operating expenses (11,543,151) — (16,462,034) (41,854) Other items 661,440 — 136,762 (5,587) Current income tax expense (1,000) — (847) — Net loss (12,867,985) — (19,456,269) (74,222) Foreign currency translation adjustments (28,301) — (4,619) 16,814 Comprehensive loss $ (12,896,286) $ — $ (19,460,888) $ (57,408) Six months ended June 30, 2023 Six months ended June 30, 2022 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 608,429 $ — $ 2,177,482 $ 407,876 Gross loss (1,105,219) — (3,755,874) (31,507) Depreciation and amortization (1,709,842) — (2,431,195) (13,183) Operating expenses (24,418,561) — (31,641,399) (98,687) Other items 2,055,003 — 454,360 22,234 Current income tax expense (1,000) — (847) — Net loss (25,179,619) — (37,374,955) (121,143) Foreign currency translation adjustments 9,006 — (4,148) 10,493 Comprehensive loss $ (25,170,613) $ — $ (37,379,103) $ (110,650) June 30, 2023 December 31, 2022 Electric Custom Built Electric Custom Built Vehicles Vehicles Vehicles Vehicles Inventory $ 2,791,076 $ — $ 4,233,055 $ — Plant and equipment, net 14,609,023 — 16,452,477 — Operating lease right-of-use assets 7,456,826 — 9,031,277 — Other assets 4,267,924 — 5,081,869 — Total assets $ 125,270,091 $ — $ 181,186,106 $ 60,323 Sales to unaffiliated customers: Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 United States $ — $ 1,383,267 $ 504,427 $ 2,323,401 Canada — 163,448 — 261,957 Other foreign countries 104,002 — 104,002 — Total $ 104,002 $ 1,546,715 $ 608,429 $ 2,585,358 Plant and equipment and right-of-use assets: June 30, 2023 December 31, 2022 United States $ 21,898,968 $ 23,113,904 Canada 164,365 2,366,861 Other foreign countries 2,516 2,989 Total $ 22,065,849 $ 25,483,754 |
Fair value
Fair value | 6 Months Ended |
Jun. 30, 2023 | |
Fair value | |
Fair value | 18. The following table presents the hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of June 30, 2023: Level 1 Level 2 Level 3 Total Liabilities: Share-based compensation liability $ — $ 69,651 $ — $ 69,651 The following table presents the hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2022: Level 1 Level 2 Level 3 Total Liabilities: Share-based compensation liability $ — $ 76,476 $ — $ 76,476 Financial liabilities measured at fair value at June 30, 2023 consisted of the non-transferrable warrants denominated in Canadian dollars (“CAD”) and DSUs. The fair values of DSUs and the non-transferrable warrants are both classified as Level 2 in the fair value hierarchy. The fair value of the DSUs was measured using the quoted market price for common shares of the Company on the Nasdaq exchange. The fair value of the non-transferrable warrants denominated in CAD were calculated using the Black-Scholes option pricing model using the historical volatility of comparable companies as an estimate of future volatility. At both June 30, 2023 and December 31, 2022, if the volatility used was increased by 10%, the impact would be a nil increase to derivative liabilities. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | 19 . Commitments On February 17, 2023, the Company announced a stop sale of the SOLO. On April 14, 2023, the Company subsequently issued a voluntary recall notice and has notified customers of a vehicle buy-back program for all 429 customer SOLO vehicles sold since its release in 2021. The basis of the recall was a result of the vehicle potentially experiencing a loss of propulsion while driving. As of June 30, 2023 and December 31, 2022, a recall provision of $1,860,548 and $8,915,044, respectively, was recorded as an estimate of the cost to buy back all retailed vehicles, which was included in trade payables and accrued liabilities in the Company’s condensed consolidated balance sheets. During the six months ended June 30, 2023, the Company made payments of $7,054,496 for 361 vehicles returned by customers, which reduced the recall provision balance to $1,860,548 as of June 30, 2023. On March 3, 2023, the Company entered into a Design and Supply Agreement (the “Design Agreement”) with GLV LLC (“GLV”), pursuant to which GLV will provide design, development, and manufacturing services for the Company’s two-seat electric motor vehicle, the planned “Project E4” EV. The estimated cost as set out in the Design Agreement is $13,692,000, where 80% will be paid during 2023 with the remaining costs to be paid in 2024. The Company may terminate the Design Agreement upon 30 days written notice to GLV under special circumstances or due to breach of contract. Contingencies In the ordinary course of business, the Company may from time to time become subject to legal proceedings and claims arising in connection with ongoing business activities. The results of litigation and claims cannot be predicted with certainty, and unfavorable resolutions are possible and could materially affect the Company’s results of operations, financial condition, or cash flows. In addition, regardless of the outcome, litigation could have an adverse impact on the Company as a result of legal fees, the diversion of management’s time and attention and other factors. On March 27, 2023, the Company received a deficiency letter from Nasdaq’s Listing Qualifications Department (the “Staff”) notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company’s common stock had closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Capital Market (the “Minimum Bid Price Requirement”). In accordance with Nasdaq rules, the Company has been provided an initial period of 180 calendar days, or until September 25, 2023, to regain compliance with the Minimum Bid Price Requirement. If, at any time before this date, the closing bid price for the Company’s common stock is at least $1.00 for a minimum of ten consecutive business days, the Staff will provide the Company written confirmation of compliance with the Minimum Bid Price Requirement. The Company may be eligible for an additional 180 calendar day compliance period. If the Company’s share price does not meet the minimum listing requirements in the initial or extended periods, it may seek to execute a reverse stock split. |
Basis of presentation and sum_2
Basis of presentation and summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Basis of presentation and summary of significant accounting policies | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of ElectraMeccanica Vehicles Corp. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements. All inter-company balances and transactions have been eliminated. The unaudited condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 should be read in conjunction with the consolidated financial statements and accompanying notes included in the 2022 Form 10-K. The unaudited condensed consolidated balance sheet as of December 31, 2022, was derived from audited consolidated financial statements included in the 2022 Form 10-K but does not include all disclosures required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements include all adjustments, which consist of normal recurring adjustments and transactions or events discretely impacting the interim periods, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. The operating results for the quarter ended June 30, 2022 reflect the retrospective adoption of U.S. GAAP which was reflected in the 2022 Form 10-K. The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. The Company’s significant accounting policies are described in Note 2 to the consolidated financial statements included in the 2022 Form 10-K. All financial information in this Quarterly Report is presented in U.S. dollars, unless otherwise indicated. |
Use of estimates | Use of estimates The preparation of interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, estimating the write down of inventory to net realizable value, estimating the recall provision, and estimating the contingent liabilities for contract termination. Management estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. |
Segment reporting | Segment reporting The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact its reportable operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. Up until the fourth quarter of 2022, the Company managed, reported and evaluated its business in the following two reportable operating segments: (i) Electric Vehicles and (ii) Custom Built Vehicles. During the fourth quarter of 2022, the CODM changed how she makes operating decisions, assesses the performance of the business and allocates resources in a manner that caused the Company’s operating segments to change as a result of the Company having stopped receiving orders for custom built vehicles. In consideration of Financial Accounting Standards Board’s Accounting Standards Codification 280, Segment Reporting, the CODM determined that the Company is not organized around specific products and services, geographic regions or regulatory environments. Accordingly, beginning with the fourth quarter of 2022, the Company realigned its reporting structure, resulting in a single reportable segment, Electric Vehicles, in the United States. |
Cash and cash equivalents and_2
Cash and cash equivalents and restricted cash (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and cash equivalents and restricted cash | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | June 30, 2023 December 31,2022 Cash and cash equivalents $ 89,334,551 $ 134,255,538 Restricted cash 1,717,897 515,449 Total cash, cash equivalents and restricted cash $ 91,052,448 $ 134,770,987 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid expenses and other current assets | |
Schedule of prepaid expenses and other current assets | June 30, 2023 December 31,2022 SOLO vehicle deposit (at supplier) $ — $ 7,133,451 Battery cell deposit — 300,000 Prepaid insurance 907,189 1,095,152 Prepaid rent and security deposit 402,354 495,112 Cloud computing assets 1,372,617 1,234,039 Other prepaid expenses 2,001,565 1,133,096 Total prepaid expenses and other current assets $ 4,683,725 $ 11,390,850 |
Inventory, net (Tables)
Inventory, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, net | |
Schedule of inventory, net | June 30, 2023 December 31, 2022 Parts and batteries $ 1,542,565 $ 1,242,055 Vehicles 2,408,211 18,022,771 Inventory provision (1,159,700) (15,031,771) Total inventory, net $ 2,791,076 $ 4,233,055 |
Plant and equipment, net (Table
Plant and equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Plant and equipment, net | |
Schedule of plant and equipment, net | June 30, 2023 December 31, 2022 Furniture and equipment $ 3,238,768 $ 2,117,901 Computer hardware and software 1,244,052 1,381,786 Vehicles 687,490 1,046,817 Leasehold improvements 11,419,614 12,862,333 Production tooling and molds 575,295 1,956,743 Total plant and equipment 17,165,219 19,365,580 Less: accumulated depreciation (2,556,196) (2,913,103) Total plant and equipment, net $ 14,609,023 $ 16,452,477 |
Other assets (Tables)
Other assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other assets | |
Schedule of other assets | June 30, 2023 December 31, 2022 Security deposit $ 1,161,000 $ 1,161,000 Cloud computing assets 3,094,968 3,920,869 Intangible assets 11,956 11,956 Total other assets $ 4,267,924 $ 5,093,825 |
Trade payables and accrued li_2
Trade payables and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Trade payables and accrued liabilities | |
Schedule of trade payables and accrued liabilities | June 30, 2023 December 31, 2022 Trade payables $ 948,202 $ 3,795,992 Recall provision 1,860,548 8,915,044 Accrued liabilities 1,188,978 6,635,434 Total trade payables and accrued liabilities $ 3,997,728 $ 19,346,470 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of components of lease expense | Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease expense Operating lease expense $ 457,248 $ 549,451 $ 1,399,379 $ 826,329 Short-term lease expense 175,689 382,387 323,565 771,307 $ 632,937 $ 931,838 $ 1,722,944 $ 1,597,636 |
Schedule of weighted-average remaining lease term and the weighted-average discount rate for the operating lease | June 30, 2023 December 31, 2022 Weighted average remaining operating lease term (in years) 9.14 9.41 Weighted average operating lease discount rate 10.46 % 10.28 % |
Schedule of maturities of operating lease liabilities (excluding short-term leases) | June 30, 2023 2023 (remaining six months) $ 1,476,829 2024 2,860,671 2025 2,789,540 2026 2,847,403 2027 2,598,847 Thereafter 15,230,661 Total minimum lease payments 27,803,951 Less: interest 10,513,303 Present value of lease obligations 17,290,648 Less: Current portion 1,162,673 Long-term portion of lease obligations $ 16,127,975 |
Share capital and other compo_2
Share capital and other components of equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share capital and other components of equity | |
Schedule of warrants | Number of warrants Number of warrants Date of issuance outstanding exercisable Exercise price Expiry date October 31, 2017 125,000 125,000 $ 15.00 October 31, 2024 August 8, 2018 4,513,253 4,513,253 $ 4.27 August 8, 2023 November 9, 2018 7,440 7,440 $ 3.20 November 9, 2023 November 9, 2018 749,788 749,788 $ 2.56 May 9, 2024 5,395,481 5,395,481 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stock-based compensation | |
Schedule of total stock-based compensation recognized in the consolidated statements of operations and comprehensive loss | Three months ended Three months ended Six months ended Six months ended Share-based compensation expense recorded in June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 General and administrative expenses $ 814,409 $ 1,161,241 $ 1,586,349 $ 2,235,041 Research and development expenses 6,559 297,752 70,834 459,150 Sales and marketing expenses 33,531 95,071 72,195 66,421 $ 854,499 $ 1,554,064 $ 1,729,378 $ 2,760,612 |
Schedule of changes in stock options and details of stock options outstanding | Weighted average Number of options Number of options Exercise price contractual life outstanding exercisable $2.00 CAD 0.93 65,000 65,000 $0.535 6.73 500,000 — $0.57 6.86 101,298 46,757 $0.59 6.96 400,000 — $0.99 6.56 198,614 76,688 $1.08 6.31 129,274 91,140 $1.11 6.44 3,750,000 — $1.50 6.09 666,793 403,952 $1.91 2.55 2,955,000 2,848,058 $1.94 5.81 90,242 54,425 $2.13 5.60 47,099 30,283 $2.45 3.10 1,250,000 1,250,000 $2.53 3.11 50,000 50,000 $2.62 0.23 700,000 700,000 $3.01 1.44 750,000 750,000 $3.40 1.87 1,035,000 1,035,000 $3.41 4.06 520,000 509,155 $3.55 5.05 5,000 3,240 $3.56 5.37 108,109 73,021 $3.77 1.44 50,000 50,000 $4.15 1.44 750,000 750,000 $5.00 0.42 193,629 193,629 $7.75 4.64 30,000 25,000 $9.60 1.52 50,000 50,000 14,395,058 9,055,348 |
Schedule of number and weighted average share prices of DSUs | June 30, 2023 December 31, 2022 Number of Weighted average Number of Weighted average DSUs share price DSUs share price DSUs outstanding 111,231 $ 3.16 127,460 $ 3.02 DSUs exercisable 111,231 $ 3.16 127,460 $ 3.02 |
Schedule of RSUs outstanding | June 30, 2023 December 31, 2022 Number of Weighted average Number of RSUs share price RSUs Deemed value RSUs outstanding 1,875,000 $ 1.02 1,875,000 $ 1.02 RSUs exercisable — $ — — $ — |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue | |
Schedule of revenue | Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Revenue $ 104,002 $ 1,546,715 $ 608,429 $ 2,585,358 |
Interest income (Tables)
Interest income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Interest income | |
Schedule of interest income | Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Interest Income $ 1,358,179 $ 241,421 $ 2,797,017 $ 327,666 |
Basic and Diluted loss per sh_2
Basic and Diluted loss per share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Basic and Diluted loss per share | |
Schedule of basic and diluted loss per share | Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Net loss $ (12,867,985) $ (19,530,491) $ (25,179,619) $ (37,496,098) Weighted average number of shares outstanding – basic and diluted 119,287,917 118,612,731 119,287,917 118,532,693 Loss per share – basic and diluted $ (0.10) $ (0.16) $ (0.21) $ (0.32) |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment information | |
Schedule of operations of each of the Company's reportable business segments | Three months ended June 30, 2023 Three months ended June 30, 2022 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 104,002 $ — $ 1,305,537 $ 241,178 Gross loss (1,201,996) — (1,858,694) (25,194) Depreciation and amortization (783,278) — (1,271,456) (1,587) Operating expenses (11,543,151) — (16,462,034) (41,854) Other items 661,440 — 136,762 (5,587) Current income tax expense (1,000) — (847) — Net loss (12,867,985) — (19,456,269) (74,222) Foreign currency translation adjustments (28,301) — (4,619) 16,814 Comprehensive loss $ (12,896,286) $ — $ (19,460,888) $ (57,408) Six months ended June 30, 2023 Six months ended June 30, 2022 Custom Built Custom Built Electric Vehicles Vehicles Electric Vehicles Vehicles Revenue $ 608,429 $ — $ 2,177,482 $ 407,876 Gross loss (1,105,219) — (3,755,874) (31,507) Depreciation and amortization (1,709,842) — (2,431,195) (13,183) Operating expenses (24,418,561) — (31,641,399) (98,687) Other items 2,055,003 — 454,360 22,234 Current income tax expense (1,000) — (847) — Net loss (25,179,619) — (37,374,955) (121,143) Foreign currency translation adjustments 9,006 — (4,148) 10,493 Comprehensive loss $ (25,170,613) $ — $ (37,379,103) $ (110,650) June 30, 2023 December 31, 2022 Electric Custom Built Electric Custom Built Vehicles Vehicles Vehicles Vehicles Inventory $ 2,791,076 $ — $ 4,233,055 $ — Plant and equipment, net 14,609,023 — 16,452,477 — Operating lease right-of-use assets 7,456,826 — 9,031,277 — Other assets 4,267,924 — 5,081,869 — Total assets $ 125,270,091 $ — $ 181,186,106 $ 60,323 |
Schedule of sales to unaffiliated customers and plant and equipment and right-of-use assets | Sales to unaffiliated customers: Three months ended Three months ended Six months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 United States $ — $ 1,383,267 $ 504,427 $ 2,323,401 Canada — 163,448 — 261,957 Other foreign countries 104,002 — 104,002 — Total $ 104,002 $ 1,546,715 $ 608,429 $ 2,585,358 Plant and equipment and right-of-use assets: June 30, 2023 December 31, 2022 United States $ 21,898,968 $ 23,113,904 Canada 164,365 2,366,861 Other foreign countries 2,516 2,989 Total $ 22,065,849 $ 25,483,754 |
Fair value (Tables)
Fair value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair value | |
Schedule of financial liabilities measured at fair value on a recurring basis | The following table presents the hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of June 30, 2023: Level 1 Level 2 Level 3 Total Liabilities: Share-based compensation liability $ — $ 69,651 $ — $ 69,651 The following table presents the hierarchy for the Company’s financial liabilities measured at fair value on a recurring basis as of December 31, 2022: Level 1 Level 2 Level 3 Total Liabilities: Share-based compensation liability $ — $ 76,476 $ — $ 76,476 |
Nature and continuance of ope_2
Nature and continuance of operations (Details) | 1 Months Ended | |
Apr. 14, 2023 item | Dec. 31, 2022 USD ($) | |
Nature and continuance of operations | ||
Number of retailed G3 SOLO vehicles decided to repurchase | item | 429 | |
Number of square foot facility for manufacture of E4 | $ | 235,000 |
Cash and cash equivalents and_3
Cash and cash equivalents and restricted cash (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents and restricted cash | ||||
Cash and cash equivalents | $ 89,334,551 | $ 134,255,538 | ||
Restricted cash | 1,717,897 | 515,449 | ||
Total cash, cash equivalents and restricted cash | $ 91,052,448 | $ 134,770,987 | $ 176,892,153 | $ 222,219,684 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid expenses and other current assets | ||
SOLO vehicle deposit (at supplier) | $ 7,133,451 | |
Battery cell deposit | 300,000 | |
Prepaid insurance | $ 907,189 | 1,095,152 |
Prepaid rent and security deposit | 402,354 | 495,112 |
Cloud computing assets | 1,372,617 | 1,234,039 |
Other prepaid expenses | 2,001,565 | 1,133,096 |
Total prepaid expenses and other current assets | $ 4,683,725 | $ 11,390,850 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Inventory, net | |||||
Parts and batteries | $ 1,542,565 | $ 1,542,565 | $ 1,242,055 | ||
Vehicles | 2,408,211 | 2,408,211 | 18,022,771 | ||
Inventory provision | (1,159,700) | (1,159,700) | (15,031,771) | ||
Total inventory, net | 2,791,076 | 2,791,076 | $ 4,233,055 | ||
Inventory write-downs | $ 1,159,700 | $ 1,361,160 | $ 1,159,700 | $ 2,812,496 |
Plant and equipment, net (Detai
Plant and equipment, net (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Plant and equipment, net | ||
Plant and equipment, gross | $ 17,165,219 | $ 19,365,580 |
Less: accumulated depreciation | (2,556,196) | (2,913,103) |
Plant and equipment, net | 14,609,023 | 16,452,477 |
Furniture and equipment | ||
Plant and equipment, net | ||
Plant and equipment, gross | 3,238,768 | 2,117,901 |
Computer hardware and software | ||
Plant and equipment, net | ||
Plant and equipment, gross | 1,244,052 | 1,381,786 |
Vehicles | ||
Plant and equipment, net | ||
Plant and equipment, gross | 687,490 | 1,046,817 |
Leasehold improvements | ||
Plant and equipment, net | ||
Plant and equipment, gross | 11,419,614 | 12,862,333 |
Production tooling and molds | ||
Plant and equipment, net | ||
Plant and equipment, gross | $ 575,295 | $ 1,956,743 |
Plant and equipment, net - Addi
Plant and equipment, net - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Plant and equipment, net | ||||
Depreciation expense | $ 439,616 | $ 1,102,683 | $ 1,022,519 | $ 2,138,966 |
Loss on disposal of plant and equipment | 1,063,425 | (1,561,153) | ||
Loss on disposal of equipment | 157,126 | |||
Cash proceeds received from disposal of plant and equipment | 112,757 | 292,757 | ||
Cash proceeds from disposal of property plant and equipment | 180,000 | |||
Production tooling and molds | ||||
Plant and equipment, net | ||||
Production tooling was transferred to equipment upon completion of the asset | 0 | $ 0 | 1,498,130 | $ 0 |
Furniture and equipment | ||||
Plant and equipment, net | ||||
Net book value of plant and equipment disposed | 153,482 | |||
Leasehold improvements | ||||
Plant and equipment, net | ||||
Net book value of plant and equipment disposed | 978,230 | |||
Computer hardware | ||||
Plant and equipment, net | ||||
Net book value of plant and equipment disposed | 42,599 | |||
Vehicles | ||||
Plant and equipment, net | ||||
Net book value of plant and equipment disposed | $ 1,871 | |||
Manufacturing equipment | ||||
Plant and equipment, net | ||||
Net book value of plant and equipment disposed | $ 337,126 |
Other assets (Details)
Other assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Other assets | |||||
Security deposit | $ 1,161,000 | $ 1,161,000 | $ 1,161,000 | ||
Cloud computing assets | 3,094,968 | 3,094,968 | 3,920,869 | ||
Intangible assets | 11,956 | 11,956 | 11,956 | ||
Total other assets | 4,267,924 | 4,267,924 | $ 5,093,825 | ||
Amortization of capitalized cloud computing assets | $ 343,661 | $ 169,378 | $ 687,322 | $ 303,449 |
Trade payables and accrued li_3
Trade payables and accrued liabilities (Details) | 6 Months Ended | ||
Apr. 14, 2023 item | Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Trade payables and accrued liabilities | |||
Trade payables | $ 948,202 | $ 3,795,992 | |
Recall provision | 1,860,548 | 8,915,044 | |
Accrued liabilities | 1,188,978 | 6,635,434 | |
Trade payables and accrued liabilities | $ 3,997,728 | $ 19,346,470 | |
Number of vehicles sold | item | 429 | ||
Number of vehicles returned by customers | item | 361 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease expense | ||||
Operating lease expense | $ 457,248 | $ 549,451 | $ 1,399,379 | $ 826,329 |
Short-term lease expense | 175,689 | 382,387 | 323,565 | 771,307 |
Operating lease expense | $ 632,937 | $ 931,838 | $ 1,722,944 | $ 1,597,636 |
Leases - Weighted-average remai
Leases - Weighted-average remaining lease term and discount rate (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Leases | ||
Weighted average remaining operating lease term (in years) | 9 years 1 month 20 days | 9 years 4 months 28 days |
Weighted average operating lease discount rate | 10.46% | 10.28% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Maturity of operating lease liabilities | ||
2023 (remaining six months) | $ 1,476,829 | |
2024 | 2,860,671 | |
2025 | 2,789,540 | |
2026 | 2,847,403 | |
2027 | 2,598,847 | |
Thereafter | 15,230,661 | |
Total minimum lease payments | 27,803,951 | |
Less: interest | 10,513,303 | |
Present value of lease obligations | 17,290,648 | |
Less: Current portion | 1,162,673 | $ 810,677 |
Long-term portion of lease obligations | $ 16,127,975 | $ 17,528,282 |
Leases - Additional information
Leases - Additional information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Leases | ||
Impairment of right of use assets | $ 828,193 | |
Impairment of lease liability | $ 936,029 | |
Gain on disposal | $ 107,836 | |
Operating leases for its engineering center, corporate offices, manufacturing warehouse facility, and kiosk locations | Minimum | ||
Leases | ||
Lease term | 5 years | 5 years |
Operating leases for its engineering center, corporate offices, manufacturing warehouse facility, and kiosk locations | Maximum | ||
Leases | ||
Lease term | 11 years | 11 years |
Contract termination liability
Contract termination liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 20, 2020 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 20, 2022 | |
Contract termination liability | |||||
Estimate of costs associated with concluding the manufacturing agreement | $ 22,800,000 | ||||
Termination provision | $ 1,000,000 | $ 15,700,000 | |||
Contract termination liability | $ (8,000,000) | ||||
Write-off of prepaid deposits | 7,167,340 | ||||
Write-off of payable balance | 281,462 | ||||
Settlement of the existing contract termination liability | 15,700,000 | ||||
SOLO vehicle inventories received | 129 | ||||
Value of SOLO vehicle inventories received | 44,244 | ||||
Gain on settlement of legal liabilities | $ 858,366 | $ 858,366 |
Share capital and other compo_3
Share capital and other components of equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share capital and other components of equity | ||||
Common share, shares issued | 119,287,917 | 119,287,917 | ||
Common share, shares outstanding | 119,287,917 | 119,287,917 | ||
Preferred share, shares issued | 0 | 0 | ||
Preferred share, shares outstanding | 0 | 0 | ||
Proceeds from issuance of common shares for options exercised | $ 344,066 | |||
Shares issued pursuant to settlement of RSU (in shares) | 0 | (27,077) | ||
Decreased share capital | $ (20,786) | $ (20,786) | ||
Number of common stock issued on exercise of each warrant | 1 | |||
Share options | ||||
Share capital and other components of equity | ||||
Shares issued pursuant to exercise of options (in shares) | 0 | 1,359,091 | ||
Proceeds from issuance of common shares for options exercised | $ 344,066 |
Share capital and other compo_4
Share capital and other components of equity - Warrants Outstanding (Details) | Jun. 30, 2023 $ / shares shares |
Share capital and other components of equity | |
Number of warrants outstanding | 5,395,481 |
Number of warrants exercisable | 5,395,481 |
October 31, 2017 | |
Share capital and other components of equity | |
Number of warrants outstanding | 125,000 |
Number of warrants exercisable | 125,000 |
Exercise price | $ / shares | $ 15 |
August 8, 2018 | |
Share capital and other components of equity | |
Number of warrants outstanding | 4,513,253 |
Number of warrants exercisable | 4,513,253 |
Exercise price | $ / shares | $ 4.27 |
November 9, 2018 | |
Share capital and other components of equity | |
Number of warrants outstanding | 7,440 |
Number of warrants exercisable | 7,440 |
Exercise price | $ / shares | $ 3.20 |
November 9, 2018 | |
Share capital and other components of equity | |
Number of warrants outstanding | 749,788 |
Number of warrants exercisable | 749,788 |
Exercise price | $ / shares | $ 2.56 |
Stock-based compensation - Tota
Stock-based compensation - Total stock-based compensation recognized in the consolidated statements of operations and comprehensive loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based payments | ||||
Share-based compensation expense recorded | $ 854,499 | $ 1,554,064 | $ 1,729,378 | $ 2,760,612 |
General and administrative expenses | ||||
Share-based payments | ||||
Share-based compensation expense recorded | 814,409 | 1,161,241 | 1,586,349 | 2,235,041 |
Research and development expenses | ||||
Share-based payments | ||||
Share-based compensation expense recorded | 6,559 | 297,752 | 70,834 | 459,150 |
Sales and marketing expenses | ||||
Share-based payments | ||||
Share-based compensation expense recorded | $ 33,531 | $ 95,071 | $ 72,195 | $ 66,421 |
Stock-based compensation - Stoc
Stock-based compensation - Stock options (Details) - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation | ||
Number of options issued | 1,266,454 | 2,408,849 |
Stock options | ||
Stock-based compensation | ||
Common stock reserved for issuance | 30,000,000 | |
Expiration period | 10 years | |
Exercise period | 90 days | |
Number of common share per award | 1 |
Stock-based compensation - Deta
Stock-based compensation - Details of stock options outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation | ||||
Number of options outstanding | 14,395,058 | 14,395,058 | ||
Number of options exercisable | 9,055,348 | 9,055,348 | ||
Recognized stock-based compensation expense | $ 854,499 | $ 1,554,064 | $ 1,729,378 | $ 2,760,612 |
Stock options | ||||
Stock-based compensation | ||||
Recognized stock-based compensation expense | $ 627,499 | $ 1,299,059 | $ 1,289,151 | $ 2,204,581 |
$2.00 CAD | ||||
Stock-based compensation | ||||
Exercise price | $ 2 | $ 2 | ||
Weighted average contractual life | 11 months 4 days | |||
Number of options outstanding | 65,000 | 65,000 | ||
Number of options exercisable | 65,000 | 65,000 | ||
$0.535 | ||||
Stock-based compensation | ||||
Exercise price | $ 0.535 | $ 0.535 | ||
Weighted average contractual life | 6 years 8 months 23 days | |||
Number of options outstanding | 500,000 | 500,000 | ||
$0.57 | ||||
Stock-based compensation | ||||
Exercise price | $ 0.57 | $ 0.57 | ||
Weighted average contractual life | 6 years 10 months 9 days | |||
Number of options outstanding | 101,298 | 101,298 | ||
Number of options exercisable | 46,757 | 46,757 | ||
$0.59 | ||||
Stock-based compensation | ||||
Exercise price | $ 0.59 | $ 0.59 | ||
Weighted average contractual life | 6 years 11 months 15 days | |||
Number of options outstanding | 400,000 | 400,000 | ||
$0.99 | ||||
Stock-based compensation | ||||
Exercise price | $ 0.99 | $ 0.99 | ||
Weighted average contractual life | 6 years 6 months 21 days | |||
Number of options outstanding | 198,614 | 198,614 | ||
Number of options exercisable | 76,688 | 76,688 | ||
$1.08 | ||||
Stock-based compensation | ||||
Exercise price | $ 1.08 | $ 1.08 | ||
Weighted average contractual life | 6 years 3 months 21 days | |||
Number of options outstanding | 129,274 | 129,274 | ||
Number of options exercisable | 91,140 | 91,140 | ||
$1.11 | ||||
Stock-based compensation | ||||
Exercise price | $ 1.11 | $ 1.11 | ||
Weighted average contractual life | 6 years 5 months 8 days | |||
Number of options outstanding | 3,750,000 | 3,750,000 | ||
$1.50 | ||||
Stock-based compensation | ||||
Exercise price | $ 1.50 | $ 1.50 | ||
Weighted average contractual life | 6 years 1 month 2 days | |||
Number of options outstanding | 666,793 | 666,793 | ||
Number of options exercisable | 403,952 | 403,952 | ||
$1.91 | ||||
Stock-based compensation | ||||
Exercise price | $ 1.91 | $ 1.91 | ||
Weighted average contractual life | 2 years 6 months 18 days | |||
Number of options outstanding | 2,955,000 | 2,955,000 | ||
Number of options exercisable | 2,848,058 | 2,848,058 | ||
$1.94 | ||||
Stock-based compensation | ||||
Exercise price | $ 1.94 | $ 1.94 | ||
Weighted average contractual life | 5 years 9 months 21 days | |||
Number of options outstanding | 90,242 | 90,242 | ||
Number of options exercisable | 54,425 | 54,425 | ||
$2.13 | ||||
Stock-based compensation | ||||
Exercise price | $ 2.13 | $ 2.13 | ||
Weighted average contractual life | 5 years 7 months 6 days | |||
Number of options outstanding | 47,099 | 47,099 | ||
Number of options exercisable | 30,283 | 30,283 | ||
$2.45 | ||||
Stock-based compensation | ||||
Exercise price | $ 2.45 | $ 2.45 | ||
Weighted average contractual life | 3 years 1 month 6 days | |||
Number of options outstanding | 1,250,000 | 1,250,000 | ||
Number of options exercisable | 1,250,000 | 1,250,000 | ||
$2.53 | ||||
Stock-based compensation | ||||
Exercise price | $ 2.53 | $ 2.53 | ||
Weighted average contractual life | 3 years 1 month 9 days | |||
Number of options outstanding | 50,000 | 50,000 | ||
Number of options exercisable | 50,000 | 50,000 | ||
$2.62 | ||||
Stock-based compensation | ||||
Exercise price | $ 2.62 | $ 2.62 | ||
Weighted average contractual life | 2 months 23 days | |||
Number of options outstanding | 700,000 | 700,000 | ||
Number of options exercisable | 700,000 | 700,000 | ||
$3.01 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.01 | $ 3.01 | ||
Weighted average contractual life | 1 year 5 months 8 days | |||
Number of options outstanding | 750,000 | 750,000 | ||
Number of options exercisable | 750,000 | 750,000 | ||
$3.40 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.40 | $ 3.40 | ||
Weighted average contractual life | 1 year 10 months 13 days | |||
Number of options outstanding | 1,035,000 | 1,035,000 | ||
Number of options exercisable | 1,035,000 | 1,035,000 | ||
$3.41 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.41 | $ 3.41 | ||
Weighted average contractual life | 4 years 21 days | |||
Number of options outstanding | 520,000 | 520,000 | ||
Number of options exercisable | 509,155 | 509,155 | ||
$3.55 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.55 | $ 3.55 | ||
Weighted average contractual life | 5 years 18 days | |||
Number of options outstanding | 5,000 | 5,000 | ||
Number of options exercisable | 3,240 | 3,240 | ||
$3.56 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.56 | $ 3.56 | ||
Weighted average contractual life | 5 years 4 months 13 days | |||
Number of options outstanding | 108,109 | 108,109 | ||
Number of options exercisable | 73,021 | 73,021 | ||
$3.77 | ||||
Stock-based compensation | ||||
Exercise price | $ 3.77 | $ 3.77 | ||
Weighted average contractual life | 1 year 5 months 8 days | |||
Number of options outstanding | 50,000 | 50,000 | ||
Number of options exercisable | 50,000 | 50,000 | ||
$4.15 | ||||
Stock-based compensation | ||||
Exercise price | $ 4.15 | $ 4.15 | ||
Weighted average contractual life | 1 year 5 months 8 days | |||
Number of options outstanding | 750,000 | 750,000 | ||
Number of options exercisable | 750,000 | 750,000 | ||
$5.00 | ||||
Stock-based compensation | ||||
Exercise price | $ 5 | $ 5 | ||
Weighted average contractual life | 5 months 1 day | |||
Number of options outstanding | 193,629 | 193,629 | ||
Number of options exercisable | 193,629 | 193,629 | ||
$7.75 | ||||
Stock-based compensation | ||||
Exercise price | $ 7.75 | $ 7.75 | ||
Weighted average contractual life | 4 years 7 months 20 days | |||
Number of options outstanding | 30,000 | 30,000 | ||
Number of options exercisable | 25,000 | 25,000 | ||
$9.60 | ||||
Stock-based compensation | ||||
Exercise price | $ 9.60 | $ 9.60 | ||
Weighted average contractual life | 1 year 6 months 7 days | |||
Number of options outstanding | 50,000 | 50,000 | ||
Number of options exercisable | 50,000 | 50,000 |
Stock-based compensation - Numb
Stock-based compensation - Number and weighted average share prices of DSUs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Weighted average share price | |||||
Recognized stock-based compensation expense | $ 854,499 | $ 1,554,064 | $ 1,729,378 | $ 2,760,612 | |
DSUs | |||||
Number of DSUs | |||||
Issuance | 0 | 42,879 | |||
Number of DSUs outstanding | 111,231 | 111,231 | 127,460 | ||
Number of DSUs exercisable | 111,231 | 127,460 | |||
Weighted average share price | |||||
DSUs outstanding | $ 3.16 | $ 3.16 | $ 3.02 | ||
DSUs exercisable | $ 3.16 | $ 3.02 | |||
Recognized stock-based compensation expense | $ 0 | $ 5,628 | $ 11,403 | $ 102,908 |
Stock-based compensation - De_2
Stock-based compensation - Details of RSUs outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Weighted average share price | |||||
Recognized stock-based compensation expense | $ 854,499 | $ 1,554,064 | $ 1,729,378 | $ 2,760,612 | |
RSUs | |||||
Number of DSUs | |||||
RSUs outstanding | 1,875,000 | 1,875,000 | 1,875,000 | ||
Weighted average share price | |||||
RSUs outstanding | $ 1.02 | $ 1.02 | $ 1.02 | ||
Deemed value | $ 1.02 | $ 1.02 | $ 1.02 | ||
Recognized stock-based compensation expense | $ 215,597 | $ 249,378 | $ 428,824 | $ 453,123 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Revenue | $ 104,002 | $ 1,546,715 | $ 608,429 | $ 2,585,358 |
Interest income (Details)
Interest income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income | ||||
Interest income | $ 1,358,179 | $ 241,421 | $ 2,797,017 | $ 327,666 |
Income taxes (Details)
Income taxes (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current income tax expense | ||
Deferred tax liability | $ 0 | $ 0 |
Current liability for federal state income taxes | 5,197,490 | 36,196,891 |
U.S | ||
Current income tax expense | ||
Current liability for federal state income taxes | $ 0 | $ 0 |
Basic and Diluted loss per sh_3
Basic and Diluted loss per share - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic and Diluted loss per share | ||||||
Net loss attributable to common shareholders, basic | $ 12,867,985 | $ 19,530,491 | $ 25,179,619 | $ 37,496,098 | ||
Weighted average number of shares outstanding - basic | 119,287,917 | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 | |
Weighted average number of shares outstanding - diluted | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 | ||
Stock options | ||||||
Basic and Diluted loss per share | ||||||
Antidilutive Securities | 14,395,058 | 14,395,058 | 12,567,657 | 12,567,657 | ||
Warrants | ||||||
Basic and Diluted loss per share | ||||||
Antidilutive Securities | 5,601,074 | 5,601,074 | 7,058,021 | 7,058,021 | ||
DSUs | ||||||
Basic and Diluted loss per share | ||||||
Antidilutive Securities | 111,231 | 111,231 | 127,460 | 127,460 | ||
RSUs | ||||||
Basic and Diluted loss per share | ||||||
Antidilutive Securities | 1,875,000 | 1,875,000 | 522,385 | 522,385 |
Basic and Diluted loss per sh_4
Basic and Diluted loss per share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic and Diluted loss per share | ||||||
Net loss | $ (12,867,985) | $ (12,311,634) | $ (19,530,491) | $ (17,965,607) | $ (25,179,619) | $ (37,496,098) |
Weighted average number of shares outstanding - basic | 119,287,917 | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 | |
Weighted average number of shares outstanding - diluted | 119,287,917 | 118,612,731 | 119,287,917 | 118,532,693 | ||
Loss per share - basic | $ (0.10) | $ (0.16) | $ (0.21) | $ (0.32) | ||
Loss per share - diluted | $ (0.10) | $ (0.16) | $ (0.21) | $ (0.32) |
Segment information - Operation
Segment information - Operations of each of the Company's reportable business segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segmented information | |||||||
Revenue | $ 104,002 | $ 1,546,715 | $ 608,429 | $ 2,585,358 | |||
Gross profit | (1,201,996) | (1,883,888) | (1,105,219) | (3,787,381) | |||
Operating expenses | (12,326,429) | (17,776,931) | (26,128,403) | (34,184,464) | |||
Other items | (1,469,007) | (28,761) | (1,493,417) | 13,648 | |||
Net loss | (12,867,985) | $ (12,311,634) | (19,530,491) | $ (17,965,607) | (25,179,619) | (37,496,098) | |
Foreign currency translation | (28,301) | $ 37,307 | 12,195 | $ (5,850) | 9,006 | 6,345 | |
Comprehensive loss | (12,896,286) | (19,518,296) | (25,170,613) | (37,489,753) | |||
Inventory | 2,791,076 | 2,791,076 | $ 4,233,055 | ||||
Plant and equipment, net | 14,609,023 | 14,609,023 | 16,452,477 | ||||
Operating lease right-of-use assets | 7,456,826 | 7,456,826 | 9,031,277 | ||||
Other assets | 4,267,924 | 4,267,924 | 5,093,825 | ||||
Total assets | 125,270,091 | 125,270,091 | 181,246,429 | ||||
Electric Vehicles | |||||||
Segmented information | |||||||
Revenue | 104,002 | 1,305,537 | 608,429 | 2,177,482 | |||
Gross profit | (1,201,996) | (1,858,694) | (1,105,219) | (3,755,874) | |||
Depreciation and amortization | (783,278) | (1,271,456) | (1,709,842) | (2,431,195) | |||
Operating expenses | (11,543,151) | (16,462,034) | (24,418,561) | (31,641,399) | |||
Current income tax expense | (1,000) | (847) | (1,000) | (847) | |||
Net loss | (12,867,985) | (19,456,269) | (25,179,619) | (37,374,955) | |||
Foreign currency translation | (28,301) | (4,619) | 9,006 | (4,148) | |||
Comprehensive loss | (12,896,286) | (19,460,888) | (25,170,613) | (37,379,103) | |||
Inventory | 2,791,076 | 2,791,076 | 4,233,055 | ||||
Plant and equipment, net | 14,609,023 | 14,609,023 | 16,452,477 | ||||
Operating lease right-of-use assets | 7,456,826 | 7,456,826 | 9,031,277 | ||||
Other assets | 4,267,924 | 4,267,924 | 5,081,869 | ||||
Total assets | 125,270,091 | 125,270,091 | 181,186,106 | ||||
Electric Vehicles | Operating segments | |||||||
Segmented information | |||||||
Other items | $ 661,440 | 136,762 | $ 2,055,003 | 454,360 | |||
Custom Built Vehicles | |||||||
Segmented information | |||||||
Revenue | 241,178 | 407,876 | |||||
Gross profit | (25,194) | (31,507) | |||||
Depreciation and amortization | (1,587) | (13,183) | |||||
Operating expenses | (41,854) | (98,687) | |||||
Net loss | (74,222) | (121,143) | |||||
Foreign currency translation | 16,814 | 10,493 | |||||
Comprehensive loss | (57,408) | (110,650) | |||||
Total assets | $ 60,323 | ||||||
Custom Built Vehicles | Operating segments | |||||||
Segmented information | |||||||
Other items | $ (5,587) | $ 22,234 |
Segment information - Sales to
Segment information - Sales to unaffiliated customers and Plant and equipment and right-of-use assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Sales to unaffiliated customers and Plant and equipment and right-of-use assets | |||||
Sales to unaffiliated customers | $ 104,002 | $ 1,546,715 | $ 608,429 | $ 2,585,358 | |
Plant and equipment and right-of-use assets | 22,065,849 | 22,065,849 | $ 25,483,754 | ||
U.S operations | |||||
Sales to unaffiliated customers and Plant and equipment and right-of-use assets | |||||
Sales to unaffiliated customers | 1,383,267 | 504,427 | 2,323,401 | ||
Plant and equipment and right-of-use assets | 21,898,968 | 21,898,968 | 23,113,904 | ||
Canadian operations | |||||
Sales to unaffiliated customers and Plant and equipment and right-of-use assets | |||||
Sales to unaffiliated customers | $ 163,448 | $ 261,957 | |||
Plant and equipment and right-of-use assets | 164,365 | 164,365 | 2,366,861 | ||
Other foreign countries | |||||
Sales to unaffiliated customers and Plant and equipment and right-of-use assets | |||||
Sales to unaffiliated customers | 104,002 | 104,002 | |||
Plant and equipment and right-of-use assets | $ 2,516 | $ 2,516 | $ 2,989 |
Fair value - Financial liabilit
Fair value - Financial liabilities measured at fair value on a recurring basis (Details) - Recurring - Share-based compensation liability - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Fair value | ||
Total | $ 69,651 | $ 76,476 |
Level 2 | ||
Fair value | ||
Total | $ 69,651 | $ 76,476 |
Fair value - Additional informa
Fair value - Additional information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative liabilities | ||
Percentage of reasonably possible increase in volatility | 10% | 10% |
Derivative liabilities | ||
Derivative liabilities | ||
Increase (decrease) in fair value measurement due to reasonably possible increase in volatility | $ 0 | $ 0 |
Commitments and contingencies (
Commitments and contingencies (Details) | 6 Months Ended | 12 Months Ended | |||
Apr. 14, 2023 customer | Mar. 03, 2023 USD ($) | Dec. 20, 2020 USD ($) | Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Commitments and contingencies | |||||
Number of retailed G3 SOLO vehicles under the buy-back program | customer | 429 | ||||
Recall provision recorded for G3 SOLO vehicles under the buy-back program | $ 1,860,548 | $ 8,915,044 | |||
Number of days after which agreement can be terminated | 30 days | ||||
Amount claimed by Zongschen | $ 1,000,000 | ||||
Accrual liability of termination provisions | $ 1,000,000 | 15,700,000 | |||
Number of vehicles returned by customers | item | 361 | ||||
Company payments | $ 7,054,496 | ||||
Recall provision | $ 1,860,548 | $ 8,915,044 | |||
Design Agreement | |||||
Commitments and contingencies | |||||
Estimated cost of design, development, and manufacturing services | $ 13,692,000 | ||||
Percentage of estimated cost of design, development, and manufacturing services that will be paid during 2023 | 80% |