Written by Cláudio Afonso | LinkedIn | X
The EV startup Faraday Future said on Thursday after the market close that it is “unable to file its Quarterly Report” on Form 10-Q for the first quarter of the year, within the designated timeframe.
The stock was suspended multiple times on Thursday after surging over 200 percent during the session and over 5,000 percent since May 10. The stock closed 134 percent higher at $1.65 per share.
In a new SEC filing, the company attributes this delay to a “significant delay in the filing of the Company’s Annual Report on Form 10-K” for the year 2023.
The delay in filing the Annual Report on Form 10-K for the previous fiscal year has resulted in a cascading effect, causing a postponement in the compilation and preparation of the Company’s financial statements for the first quarter of the year.
As a consequence, Faraday’s accounting team has faced challenges in meeting the deadline for the Form 10-Q.
Despite these hurdles, the Company is diligently working to gather and compile the necessary information required to be included in the Form 10-Q. The Company is committed to resolving the delay and ensuring compliance with regulatory obligations.
Further updates regarding the filing of the Form 10-Q will be provided as soon as significant progress is made.
Full Statement
“Faraday Future Intelligent Electric Inc. (the “Company”) is unable to file its Quarterly on Form 10-Q for the first quarter ended March 31, 2024 (the “Form 10-Q”) within the prescribed time period without unreasonable effort or expense because a significant delay in the filing of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, resulted in the Company’s accounting team being delayed in the compilation and preparation of the Company’s financial statements for the first quarter ended March 31, 2024. The Company is working diligently to compile the information required to be included in the Form 10-Q”.
The EV startup is currently appealing a delisting notice from Nasdaq after trading below $0.10 for ten consecutive days. Faraday Future appealed on the first day of May when it initiated a temporary suspension of its securities for 15 days — ending today.
The 5000 percent surge in the stock comes at a critical time for the company, enabling it to maintain its listing on Nasdaq as it now meets the requirements.
On May 10, shares of the electric vehicle startup, which is battling for survival, closed at slightly over 4 cents per share. However, as of the time of writing, the stock is trading at $2.34, representing an impressive 5,240 percent increase.
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Earlier this year, Faraday Future conducted its second reverse stock split in five months, implementing a one-for-three ratio. This action aimed to regain compliance with listing requirements following financial challenges and supply chain issues, which had nearly wiped out 99% of its market value in 2023.
The FF 91 2.0 Futurist Alliance, with an estimated range of 381 miles and a top speed of 155 mph, is currently available for pre-order in the United States at a base price of $309,000.
The stock has faced heavy short interest, indicating that a considerable portion of available shares for trading has been borrowed and sold by bearish investors anticipating stock price declines.
In late April, the company onboarded Werner Wilhelm as Executive Launch Director. Wilhelm successfully managed the launch of three car models during his time at Audi AG, Volkswagen AG, and Magna Steyr — the manufacturer partner of Fisker.
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Written by Cláudio Afonso | LinkedIn | X
The post Faraday Future Announces Quarterly Report Delay Over Form 10-K Issue first appeared on EV.