California-based EV startup Faraday Future Intelligent Electric FFIE flagged on Tuesday that its previously issued financial statements for 2022 and quarters ended March 2023 and September 2022 has some errors.
What Happened: The errors in the reports are related to change in fair value upon conversion of notes issued by the company, Faraday said in a statement. The financial reports for the periods should “no longer be relied upon,” it added.
The company said it is actively working on restating the financial statements “as soon as reasonably practical.” However, it does not expect the restatement to affect the delivery timeline of FF 91 2.0 Futurist Alliance. Last month, the company had said it would defer the second delivery phase of FF 91 2.0 Futurist Alliance to August owing to the supplier's timing constraints and the time needed for additional safety testing.
Why It Matters: The Palantir Technologies-backed company on Tuesday also appointed Jonathan Maroko as its new interim CFO after Yun Han resigned. Yun Han will continue in her role as the Company's Chief Accounting Officer.
The company, which has faced delays and funding challenges, said it has secured a funding commitment of $90 million in June. A month before, it said that it has signed a definitive agreement to raise $100 million by issuing unsecured convertible notes.
Photo Courtesy: Faraday Future
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