Electric Last Mile Solutions Inc. warned on Friday that it could run out of cash in June, at least a month earlier than expected, unless it can raise additional capital.
The latest projections reflect higher costs in a number of areas, including employee retention and supplier payments, the Troy, Michigan-based electric vehicle startup said in a filing.
“The company expects that, without securing additional financing, it will have sufficient cash to continue operations through June 2022,” it said in the filing, adding that it is “actively seeking potential sources of liquidity” to strengthen its finances.
Electric Last Mile had said in March that it had enough cash to fund its operations between July and September. The company is under investigation by the SEC and has been without an auditor since February.
The stock has fallen 90% so far this year as the company faces several financial reporting challenges, including a long-running deadline to file its annual 10-K, a delay in filing its first quarter 10-Q and the need to redo, or restate, at least two quarterly prior financial statements. Electric Last Mile has until May 31 to submit a plan to Nasdaq outlining how it will regain compliance with its listing rules.