Electric Last Mile expected to run out of funds in June

According to foreign media reports, Electric Last Mile Solutions (ELMS) warned on May 27 that if it cannot raise more funds, the company may run out of funds in June this year, at least a month earlier than previously expected. .

Image credit: ELMS

The suburban Detroit-basedelectric vehiclestartup said in a filing that the latest forecast reflects increased costs in a number of areas, including employee retention and payments to suppliers.

"The company expects that, in the absence of additional financing, the existing funds will only allow the company to continue operations until June 2022," ELMS said in the filing. The company also said it was "actively pursuing potential sources of liquidity." ” to improve its financial position.

ELMShad said in March that it had enough cash on hand to continue operating until July to September.The company is currently under investigation by the U.S. Securities and Exchange Commission (SEC) and has not been audited since February.

Due to a number of financial reporting challenges, including its long past deadline for filing its annual 10-K report, the delay in filing its first-quarter 10-Q report, and the need to restate or restate its financial statements for at least the past two quarters , the company's stock has fallen 90% this year.The company also has until May 31 to submit a plan to Nasdaq outlining how it will bring the company back into compliance with listing rules.