With revenues of $466,362 and net losses of $2.21 million for the three months ending May 31, along with a $7.6 million loss for the nine months ending May 31, Vision Marine Technologies faces an uncertain future.
“The company has incurred recurring losses, has not yet achieved profitable operations and has a deficit of $45.31 million since its inception,” the Canadian electric boat and outboard manufacturer said in a statement. “The cash flows from operations were negative for the three years ended Aug. 31, 2023, as well as for the current nine-month period ended May 31.”
As of May 31, Vision Marine said it had cash of $249,597 and working capital of $3.63 million.
The statement continued:
“Additional financing will be needed by the company to fund its operations and to commercialize the E-Motion powertrain business. These matters, when considered in aggregate, indicate the existence of a material uncertainty that raises substantial doubt about the company’s ability to continue as a going concern for at least 12 months from the issuance of these condensed interim consolidated financial statements.”
Vision Marine said it is considering different strategies and pursuing actions that it hopes will increase liquidity, including executing additional cost-saving initiatives, seeking additional financing from public and private markets, and potentially selling assets that do not align with the outlook of future operations.
For the nine months ending May 31, Vision said it was able to raise net proceeds from the issuance of common shares and warrants of $6.09 million. “However, the company’s management cannot provide assurances that the company will be successful in accomplishing any of its proposed financing plans,” the statement continued. “Management also cannot provide any assurance as to unforeseen circumstances that could occur within the next 12 months which could increase the company’s need to raise additional capital on an immediate basis, [while] additional capital may not be available to the company.”
