Lordstown said in the filing that its ability to continue as a company and achieve production targets for the Endurance depends upon the deal with Foxconn.
If the deal is not completed by May 14 and Foxconn doesn’t grant an extension, Lordstown will need to pay back the $200 million it has received in down payments from the company since November, including $50 million in the quarter just ended.
Despite the challenges, the company said it hopes by July to build a limited number of pre-production vehicles for testing, certification, validation, and regulatory approvals, and to demonstrate the capabilities of the Endurance to potential customers.
According to the terms of the deal, Lordstown will continue to own its hub motor assembly line, as well as its battery module and pack line assets, certain intellectual property rights and other excluded assets.
“We will outsource all of the manufacturing of the Endurance to Foxconn with the sale of our Lordstown facility,” Lordstown wrote in the SEC filing. “Foxconn will also operate the assets we continue to own in the facility after closing.”
The electric truck maker, which went public in October 2020 through a $1.6 billion SPAC merger with DiamondPeak Holdings, has yet to produce a vehicle. The company reported a loss of $90 million for the three months ended on March 31 and was trading at $1.91 per share on Monday morning.
Lordstown said it will continue to incur high legal costs as the SEC investigation continues.
