Arrival Shares Tank On Heftier Q3 Loss, Going Concern Uncertainties

Arrival SA ARVL reported a third-quarter FY22 loss of $(310.3) million compared to $(30.6) loss million last year. The company's Q3 FY22 loss includes non-cash impairment charges and write-offs of $232 million.
Administrative expenses increased to $79.6 million versus $52.2 million last year.
Adjusted EBITDA loss for the quarter expanded to $(73.3) million.
Capital expenditure for the period, including tangible and intangible purchases, totaled $80.4 million.
Arrival recently received a Nasdaq non-compliance letter regarding the minimum bid price requirement.
Going Concern: Arrival held $330 million in cash and equivalents as of September 30, 2022. The company specified this balance is not sufficient to cover twelve months of operations.
As a result, on October 20, 2022, the company revealed a plan to restructure its business significantly to extend its cash runway.
It explores all funding and strategic opportunities to obtain the necessary funding.
The company's Board determined that its unaudited financial information presented is appropriately prepared on a going concern basis.
Price action: ARVL shares are trading lower by 35.8% at $0.3795 on the last check Tuesday.
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