OKLAHOMA CITY (KFOR) – A recent financial report from the electric vehicle company, Canoo, reveals the company’s concern about its own future.
In their quarterly report, the company admits, “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.”
Tony Aquila, the company’s CEO, said Canoo has $600 million in accessible capital, but it reported a $125-million net loss for the first three quarters of this year.
He added that the electric vehicle start-up broke ground on its planned facility in Pryor, Oklahoma.
Governor Kevin Stitt offered Canoo $15 million in incentives to build their facility in the state.
The money came from the Quick Action Closing Fund, a pool of funds that Governor Stitt has at his disposal to attract businesses. The use of these funds do not require legislative approval.
State lawmakers have concerns about this.
“If there had been more people at the table, I’m sure that concerns around this may have been discussed,” said Representative Forrest Bennett, D-Oklahoma City.
With talks of the company needing further financial help, Representative Kevin West, R-Moore, doesn’t want taxpayers to be pay for something that doesn’t ultimately happen.
“You certainly don’t want to have a lot of taxpayer dollars on the hook and IOU, so to speak, and have them not meet their expectations,” said West.
Both the Governor’s Office and the Department of Commerce said Canoo has not been awarded any money.
“All state incentive offerings protect Oklahoma taxpayers by ensuring that they are performance based and result in a net economic benefit to the state,” said Brent Kisling, the Commerce Department Executive Director.
Canoo explained its funding technique in their earnings call by saying, “our philosophy is to raise capital judiciously.”
The company expects to put cars on the market for the public in 2023. They were recently awarded a contract with NASA to transport astronauts to the launch pad.