In a filing with the Security and Exchange Commission last week, Lordstown Motors moved to clarify potential future purchases.
The company said although it has used the number of “vehicle purchase agreements” in hand to serve as an indicator of demand for its Endurance electric pickup truck, those agreements are not binding. That is, they actual sales are not guaranteed.
“[T]hese agreements do not represent binding purchase orders or other firm purchase commitments,” according to the filing.
Lordstown last week said a special committee of independent directors concluded that although a report published by Hindenburg Research criticizing Lordstown Motors on March 12, 2021, “is, in significant respects, false and misleading,” the committee “identify issues regarding accuracy of certain statements regarding” pre-orders.
The company’s CEO and CFO subsequently resigned.
In its annual report, Lordstown Motors announced that it does not have enough current funding to start commercial production and launch of its Endurance electric pickup truck.
In an amended annual report, the company said: “We require additional capital to implement our business plan, and it may not be available on acceptable terms, if at all, creating substantial doubt as to our ability to continue as a going concern.”
