EV startup Canoo is running out of cash and doubtful about its future

Image: Canoo

Canoo thinks it is about to run out of money. The company reports that it only has enough cash to last another quarter and is unsure if it will be able to survive beyond that.

As of the date of this announcement, we are reporting that there is substantial doubt about the Company's ability to continue as a going concern, according to the company's first-quarter earnings report.

Canoo was founded by a former BMW executive. The executives who co-founded Canoo were sued for allegedly stealing trade secrets by the company, but the case was settled late in the year.

The Canoo Pickup Truck is one of several electric vehicles in the works. The toyish truck showed how far Canoo is willing to go to push the design of the microbus-style vehicle it first debuted back in 2019.

As of March 31st, the company had $104 million in cash and equivalents. Canoo lost $125.4 million in the last three months, compared to a loss of $15.2 million in the first quarter of the year.

Canoo has $600 million in accessible capital to support the production of its lineup of EVs, according to a statement from the company's chairman and CEO. A committed PIPE from an existing shareholder and an equity purchase agreement with financing partner Yorkville Advisors are included in the total funding.

In the last few months, the company has parted ways with executives. Canoo reported last year that the Securities and Exchange Commission was investigating the company's merger with a special acquisition company. Canoo filed a lawsuit this week to recover profits made by an investor with ties to China.