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From The Sec 11/25/2016 Release...

Johnny Acree

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I've been waiting since 2013.....IF production goes to 2019.....I'M DONE !!!
I brought up this point a while back. At some point in time, early reservation holders wont exist for various reasons. EM may have 65K + on the books, but how many will actually buy one.
 

Rickb

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I brought up this point a while back. At some point in time, early reservation holders wont exist for various reasons. EM may have 65K + on the books, but how many will actually buy one.
It would be interesting to know how many refundable reservations have been refunded to reservationists tired of waiting.
 

Samalross

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I brought up this point a while back. At some point in time, early reservation holders wont exist for various reasons. EM may have 65K + on the books, but how many will actually buy one.
You are right. It seems most of the reservation holders are not spring chickens. There will be a lot of them not driving by the time it is released.
 

booboo

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I read through a few pages of the report. It actually looks promising to me. A few points.
1. The increase from 312 to 376 is a recalculation, adding supplier equipment commitments.
2. As for the 76 weeks, it looks like a refined production timeline to me. Manufacture activities start 4 weeks after 33 million.
" We have not yet generated any revenues and do not anticipate doing so until late in 2018"
Key word "anticipate", if funding comes sooner I would expect earlier than later, as Paul recently had said early 2018 target before.

76_weeks.png
 
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Ty

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FOR THOSE WHO DON'T CARE TO WADE THROUGH THE SEC FILING, feel free to wade through my synopsis.


I'm not as worried as I was about the financial issues of Elio Motors. It seems they have their ducks in a row and perhaps those ducks are all pushed to the right quite a bit. It seems they have some breathing room for now but they still need some working capital. The loans won't be coming due and killing the company for a while. A funding stream will have to be identified this year, I would think though.

Here's a simple line that makes me feel at least a little good about things right now...

The Department of Energy (DOE) has informed us that Elio Motors has met the technical eligibility criteria for the ATVM loan based on preliminary analysis. However, it is possible that DOE may require physical testing of the Elio for validation of miles per gallon prior to disbursement of the ATVM loan.

Here's another tidbit:
The Elio is being deliberately priced at the $7,450 base price target even though the market will bear a higher price without any competitors at the outset. By not opportunistically pricing the Elio, it will be difficult for competitors to attract Elio customers away.

Another note... through stock, Elio has deferred rent payments till January 2018. (they are rent free till then)

About the 1,500 jobs?
Among the terms of our purchase agreement with Racer Trust was our agreement to use and develop the property so as to create at least 1,500 new jobs. We agreed that if we had not created 1,500 new jobs by February 28, 2016, we would pay Racer Trust $5,000 for each full-time, permanent direct job that fell below the required number. This commitment was extended until July 1, 2017. We have recorded a current liability of $7.5 million as of December 31, 2016.

Production? Commercial production schedule (76 weeks) is set to START when they get the $33M they need to start the process which will be for tooling and setting up four production lines (body shop, paint, general assembly, and powertrain) at Shreveport


We refined our production plans with suppliers to start commercial production on a 76-week schedule, to commence with funding of at least $33 million. The key timelines are in the chart below:

vttchart.jpg


Where will all the funding come from?

Several major suppliers have committed to our project, and will share in the additional cost of engineering and equipment, as discussed below.

Aisin World Corporation of America has agreed to provide our 5-speed manual and automatic manual transmissions (AMT). They estimate the total development and equipment cost to support the project will be $76.6 million and they will invest $36.6 million in the project.

Linamar Corporation has committed to manufacture and supply the engine assembly for the Elio at our Shreveport facility. While Elio Motors will be responsible for specialized tooling and equipment, Linamar will provide an estimated $45 to $50 million in general equipment to support the production requirements.

Hyundai DYMOS will build and supply seats for the vehicle and expect to incur approximately $1.8 million in capital equipment and building renovation in our Shreveport facility.

Customer Reservations. Customer reservations have provided significant funding for us in the past and we expect reservations to be a significant source of short-term liquidity in the future. With each progressive step in our development, we have experienced a surge in reservations. In addition, as we achieve subsequent milestones in the development of the Elio, customer confidence increases. Accordingly, we expect to see surges in reservations as the following milestones are achieved and announced: completion of prototypes, testing results, confirmation of mileage, hiring at the manufacturing facility, and, hopefully before production commences, scarcity.

Through December 31, 2016, we have $27.3 million in reservations, an average of $568 thousand per month. Of this amount, $766 thousand was held at December 31, 2016 by credit card processing companies as a percentage of non-refundable reservations.

Sale of Excess Equipment. We identified equipment in the Shreveport plant that will not be used in production of the Elio and made the equipment available for sale. Through December 31, 2016, sales of excess equipment has yielded approximately $5.08 million, which has been applied to the principal balance on the CH Capital Lending, LLC note. As of December 31, 2016, an additional $1.27 million in equipment was available for sale, which we believe will be sold prior to the commencement of production.
 

Ty

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I read through a few pages of the report. It actually looks promising to me. A few points.
1. The increase from 312 to 376 is a recalculation, adding supplier equipment commitments.
2. As for the 76 weeks, it looks like a refined production timeline to me. Manufacture activities start in 4 weeks.
" We have not yet generated any revenues and do not anticipate doing so until late in 2018"
Key word "anticipate", if funding comes sooner I would expect earlier than later, as Paul recently had said early 2018 target before.

View attachment 21606
I just read it as well. One correction - Manufacture activities start 4 weeks after funding and not 4 weeks from now.
 

Made in USA

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What I thought was interesting was that the property owner is willing to trade the rental fees for stock. Do they know something?
 

Watashiwah

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I believe the 'owner' is actually a 'leaseholder' and is on the Elio Board as well; Stu Lichter. One may safely assume that Stu is, at the very least, a savvy and successful businessman. He must know something or have a strategy, there is some info in the SEC filing indicating loans from Elio Motors to Mr. Lichter. Who knows how, or if this is all interelated. No matter, since it appears Mr. Lichter is providing options and/or time to EM to straighten things out. It is all very complicated, but certainly interesting!!! There are many mysteries, one of which for me, is how did Elio get to sell off some of the existing GM equipment and get to keep the money? The equipment generated more money than Caddo Parish put in for the entire huge facility, why didn't Caddo keep the rights to the equipment?
 
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