See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
1: NATURE OF OPERATIONS
Inc. (the “Company”) was incorporated in the State of Oregon on November 21, 2007. The Company’s mission is
to catalyze the global shift to a sustainable transportation system. Over the past 13 years, the Company has developed a new vehicle
platform designed around the needs of everyday drivers. Having approximately one-third the weight and one-third of the footprint
of the average car, the Arcimoto platform’s purpose is to bring the joy of ultra-efficient, pure electric driving to the
masses. To date, the Company has introduced five vehicle products built on this platform that target specific niches in the vehicle
market: our flagship product, the Fun Utility Vehicle® (“FUV®”), for everyday consumer trips; the Deliverator®
for last-mile delivery and general fleet utility; the Rapid Responder™ for emergency services and security; the Cameo™
for film, sports and influencers; and the Arcimoto Roadster, an unparalleled pure-electric on-road thrill machine.
started retail production in the third quarter of 2019 at one FUV per build day and ramped to two per build day in the first quarter
of 2020 before suspending production in response to the COVID-19 pandemic. We restarted production and resumed deliveries to customers
in the third quarter of 2020. As a result of the suspension, revenues from 2020 were negatively impacted. Revenues from subsequent
quarters may be negatively impacted based on the length and severity of the pandemic.
Further, Arcimoto does not have a history
of higher-scale production and may encounter delays or inefficiencies in its sales and manufacturing processes, which may prevent
or delay achieving higher-scale production within anticipated timeliness. In order to achieve higher-scale production, the Company
may need to raise additional capital, and there can be no assurance such capital will be available upon reasonable terms, if at
Additionally, the Company’s business and operations are
sensitive to governmental policies on importation and exportation, as well as the availability of vehicle components from suppliers,
which themselves may be impacted by pandemics and such, as well as the ever-shifting general landscape of governmental policy related
to cars and motorcycles.
The Company’s industry is characterized by rapid changes
in technology and customer demands. The Company’s future success will depend on its ability to adapt to technological advances,
its nimble reaction to customer demands, its development of well-considered new products and services, and the enhancement of its
current products and services on a timely and cost-effective basis.
the Company may not have the capital resources necessary to further the development of existing and/or new products.
2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Going Concern Alleviated
The Company has incurred significant losses
since inception and management expect losses to continue for the foreseeable future. The Company has raised approximately $52 million,
net, from financing activities in 2020. The Company had approximately $39,500,000 cash as of December 31, 2020 and raised cash
subsequent to year end, which is in excess 12 months of cash requirements.
accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States (“GAAP”).
Certain prior year information has been reclassified to conform to current year presentation.
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
NOTES TO FINANCIAL STATEMENTS
Company’s financial instruments…
Read More: Arcimoto, Inc. 10-K Mar. 31, 2021 3:38 PM