Fisker Inc. (OTC: OTC:FSRN), the electric vehicle manufacturer, announced Monday that it has missed the deadline to file its quarterly report for the period ending March 31, 2024. The company cited unresolved material weaknesses in its financial reporting controls as the primary reason for the delay.
These issues were first reported in the company's annual report for the fiscal year ended December 31, 2023, highlighting deficiencies in the design and maintenance of its control environment.
The delay follows recent developments, including the May 7, 2024, notification from PricewaterhouseCoopers LLP (PwC) that it will not seek re-appointment as Fisker's independent auditor for the 2024 fiscal year. The company is currently in the process of selecting a new auditor, as per the requirements of the Audit Committee and applicable regulations.
Fisker also disclosed that it is exploring strategic alternatives, which could include filing for bankruptcy protection in multiple jurisdictions. This comes after the company's Austrian subsidiary, Fisker GmbH, voluntarily entered a restructuring proceeding under the Austrian Insolvency Code on May 7, 2024.
The company has not provided an estimated timeframe for when it will be able to file the delayed Form 10-Q report. Management has stated that there can be no assurance regarding the outcome of their strategic review, the consummation of any business arrangement or transaction, or the ability to raise sufficient capital to meet their needs. If the company fails to secure the necessary capital, it may have to further reduce operations or seek bankruptcy protection under applicable laws.
This announcement raises concerns about Fisker's financial health and future prospects. The company's stock performance and investor confidence may be affected by this uncertainty and the potential changes in its operational structure.
The information for this article is based on a press release statement.
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