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Securities And Exchange Commission Form 1-k - Filing Date: 2016-04-29

Coss

Coss

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What I got from it was eye strain and information overload.
There is so much of the same information restated multiple times throughout the document.
Wish there was a way to condense as restate.
 
Jeff Miller

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Ugh... page 7 has some disappointing news:

"Management is committed to making this vehicle available to the public as soon as possible. However, we have encountered delays resulting in a slip of approximately two and a half years to the production schedule. Approximately nine months of the delay was attributable to the refinement of project scope as new technical information became available. We note that notwithstanding the sophisticated simulations that have been run to date, it is possible that vehicle testing in the next twelve months may uncover technical issues that may introduce a further program delay. "

"As disclosed Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Plan of Operations,” we must raise an estimated $312 million to fund production. Our anticipated production timetable is therefore highly dependent upon receiving such funding in a timely manner, and delays in obtaining additional funding will delay our production timetable.
​
And the $312 million is repeated on page 13:

With the development risks addressed, we will then be in a position to raise larger amounts of capital - to be up to another estimated $312 million to fund production activities.
​
and on page 14:

We will need to raise additional funds to complete prototypes, testing and move into production. As noted in the chart above, we need to raise an additional estimated $312 million to fund production activities in the next 15 months and are pursuing multiple options for such funding. The funding will come from a combination of sources discussed below, as well as more traditional sources (not discussed), such as venture equity, debt arrangements and capital leasing on equipment.
​
Sigh, I thought $240 million was a challenge; now they appear to need another $72 million :(
 
Ekh

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Elio Amazed

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Don't get me wrong...
I'm still very much looking forward to driving my Elio.
But I'm not going to mince words here.

I suspected all along that the funds raised with the stock offering were not going to be enough to...
Fund the tour, pay the board & staff AND finish (and test) the E-series.
And here it is in the underlined parts of this quote...

"We will need to raise additional funds to complete prototypes, testing and move into production."

Have you ever checked out what they're paying the board members?
It may well be that all we really have at this exact point in time is a mysterious engine and one very expensive drawing.

Speaking of that (singular) drawing...

"Approximately nine months of the delay was attributable to the refinement of project scope as new technical information became available."

I'm starting to wonder if Roush didn't basically tell EM...
"Yeah, you were right to call us. The bird you engineered wouldn't have gotten very far."

That officially said, I'll get back in line now and soldier on with everyone else. :D
 
Last edited:
Ekh

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Jeff Miller said:
Ugh... page 7 has some disappointing news:

"Management is committed to making this vehicle available to the public as soon as possible. However, we have encountered delays resulting in a slip of approximately two and a half years to the production schedule. Approximately nine months of the delay was attributable to the refinement of project scope as new technical information became available. We note that notwithstanding the sophisticated simulations that have been run to date, it is possible that vehicle testing in the next twelve months may uncover technical issues that may introduce a further program delay. "

"As disclosed Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operation – Plan of Operations,” we must raise an estimated $312 million to fund production. Our anticipated production timetable is therefore highly dependent upon receiving such funding in a timely manner, and delays in obtaining additional funding will delay our production timetable.
​
And the $312 million is repeated on page 13:

With the development risks addressed, we will then be in a position to raise larger amounts of capital - to be up to another estimated $312 million to fund production activities.
​
and on page 14:

We will need to raise additional funds to complete prototypes, testing and move into production. As noted in the chart above, we need to raise an additional estimated $312 million to fund production activities in the next 15 months and are pursuing multiple options for such funding. The funding will come from a combination of sources discussed below, as well as more traditional sources (not discussed), such as venture equity, debt arrangements and capital leasing on equipment.
​
Sigh, I thought $240 million was a challenge; now they appear to need ano
Click to expand...

Turs out there's more unpleasant reading in that filing. Such as: Production won't start until next May IF they can find the money. Additional gems abound. They think they can get the price down to $6800 IF they're selling 250 thousand a year. Otherwise the price is $7600. That's us, baby.

Regarding sales of surplus equipment, they have unloaded $3.6 million's worth in 2015, but another $2.1 million remains. Looks like Paul was a teeny bit optimistic regarding the value of that stuff, once pegged at $30 million if I recall correctly.

At least they've gotten an extension on the time allowed to get those 1500 jobs running -- it's now July 2017. Whew, that's a relief! So they'd better gett cranking by May-June next year. Which they won't if they can't get the ATVM loan guarantee PLUS an additional 125 million on top of that. Actually, if the ATVM loan guarantee comes through, it's likely that others will join in. Without it? HAHAHAH. Maybe Trump can fund the company.

All in all, for a company that has persevered through thick and thin, gotten amazingly far and come tantalizingly close, this is a bleak report. Everything hinges on having those test vehicles going through their paces and succeeding. After that, the auto cycle definition, or at least a small rewrite to current law allowing 3-wheeled vehicles with automotive engines to participate in CAFE credits, is essential -- because that's the nectar that will lure the money bees into Elio's garden.

You know, I'm really sorry I read the damn thing. Geesh.
 
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