Benzinga | Aug 11, 2021 04:22PM EDT

ElectraMeccanica Reports Cash, Cash Equivalents and Short-Term Deposits Were $250M As Of Jun. 30; Operating Loss On Q2 Was $15.3M

Second Quarter 2021 Financial Summary (All amounts reported in USD)

* Cash and cash equivalents and short-term deposits were $250.0 million as of June 30, 2021, compared with $129.5 million as of December 31, 2020. During the quarter, the Company's net cash decreased by $10.3 million, which was a result of net cash used in operating activities of $9.4 million and net cash used in investing activities of $1.4 million, offset by net cash provided by financing activities was $456,000.

* General and administrative expenses in the second quarter of 2021 were $6.1 million, compared to $1.5 million in the same year-ago quarter. The increase in G&A expenses was primarily due to increased rent, office, consulting, and salary expenses.

* Research and development expenses in the second quarter of 2021 were $4.4 million, compared to $1.4 million in the same year-ago quarter. The increase in R&D expenses was primarily due to expenses for the Company's pre-production vehicles, the SOLO and eRoadster, whose costs are attributed to research and development.

* Operating loss in the second quarter of 2021 was $15.3 million, compared to an operating loss of $4.4 million in the same year-ago quarter. The increase in operating loss was primarily due to increases in G&A, R&D and sales and marketing expenses.

Company CFO Bal Bhullar added: "ElectraMeccanica remains well capitalized and in a strong financial position with over $250 million on our balance sheet at quarter end. Our plan for the next several months is to continue with our expanded production efforts as well as the buildout for our U.S. base of operations in Mesa, Arizona. Both initiatives are major undertakings requiring significant investment and resources. Going forward, we will continue to equally weigh our prudent expense management approach alongside our commitment to R&D and manufacturing expansion to scale."