Fisker has encountered challenges, revealing its inability to complete its Quarterly Report on Form 10-Q for the first quarter by May 10 due to identified material weaknesses in its financial reporting control environment.
In a new SEC filing, Fisker stated, “management identified certain material weaknesses, including that the Company did not design and maintain an effective control environment commensurate with its financial reporting requirements.” The company added that it is “unable to provide an estimate” for the timing of the filing.
Fisker also disclosed that its independent auditor, PricewaterhouseCoopers (PwC), declined re-appointment for the fiscal year 2024 audit. Fisker is now in the process of seeking a new auditor, with an announcement expected “once the evaluation process has been completed by the Audit Committee.”
Despite these hurdles, Fisker reiterated its exploration of strategic alternatives, including the possibility of bankruptcy protection if necessary capital is not secured. The recent completion of a deal to sell senior secured notes due 2025 to an existing institutional investor, raising $3.456 million, represents a significant financial move as the company seeks to restart production and introduce new products.
“If capital is not available to the Company when, and in the amounts needed, the Company could be required to further curtail its operations and/or seek protection under applicable bankruptcy laws,” the company said.
Fisker’s strategic efforts include the successful sale of its SUV Ocean’s Sport trim units in the US and the addition of three new dealership locations, expanding its US presence to 15 dealerships. The company is in the process of transitioning its business model from direct sales to a dealer partnership model, with recent showroom closures in New York as part of this transition.
To stimulate sales, Fisker initiated significant discounts on 2023 inventory variants in late March. Additionally, the company recently reached an agreement with an investor to extend a deadline until May 17, demonstrating its commitment to addressing current challenges.
Furthermore, Fisker’s entity in Austria, Fisker GmbH, voluntarily filed to open a restructuring proceeding under the Austrian Insolvency Code. This step allows Fisker Austria to continue operations under court protection, ensuring employee payments and vehicle sales as it seeks a strategic transaction or asset sale.
Fisker continues to navigate financial and operational hurdles as it seeks stability and growth in the competitive EV market.
