Taiga Motors, a Canadian manufacturer of electric personal watercraft and snowmobiles, reported first-quarter revenues of $3.7 million from the delivery of 207 units, including 129 Orca PWC, an increase of 194% year-over-year.
Cost of sales in the first quarter were $6.37 million, an increase from $4.25 million year-over-year. General and administration expenses decreased to $3.22 million from $3.73 million. Net loss for the quarter increased to $10.56 million from $9.56 million.
In a statement, Taiga said:
“During the quarter, the company launched an evolution of its omnichannel retail model by adding established powersport dealerships as future points of sale alongside distribution and direct to customer sales to further accelerate its market penetration and better support customers in their local markets.”
Taiga said it is focusing on strengthening the order book “in line with its seasonal production plan by initiating the deployment of its dealer model in addition to its existing fleet, distributor and direct customer orders.”
In its forward-looking statements, Taiga said that its condensed, consolidated interim financial statements “indicate the existence of material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.”
“Both during the upcoming fiscal quarter and over the next 12 months, and despite having announced earlier in March 2024 that an existing lender of the company had agreed to upsize its funding facility with Taiga, the company will require additional financing in the immediate term in order to fund its existing and future operations and obligations, including through the issuance of equity, equity-related or debt securities or through obtaining credit from government or financial institutions. …
“At the present time and despite having deployed significant efforts to seek any form of additional funding, there is a risk that the company will not be able to secure any meaningful amount of additional third-party funding or financing in the immediate, near and medium terms. … Taiga has taken a number of steps to restructure its operations and to reduce its operating expenses, and the company may well be required to take additional restructuring measures in the near term. However, there can be no assurance that any such downsizing efforts and initiatives currently underway or that may be undertaken by the company in the near term will prove to be effective in sufficiently reducing the company’s operating burn and, as such, there can be no assurance that the company will be able to continue as a going concern and continue to pay its obligations and liabilities as they become due.”
