• Revenue milestone of over $1 million reached with initial 40 personal watercrafts delivered to consumers in Canada during the third quarter of 2022
  • Pre-order1 book exceeds three thousand mark with 3,267 pre-orders received as of September 30, 2022, marking a 39% growth compared to 2,356 units as of December 31, 2021
  • Taiga Service Provider ("TSP") program launched with 8 TSPs signed to provide customers service and deliveries across 12 locations in Canada and the United States
  • Taiga's snowmobile and personal watercraft were both included in TIME's Best Inventions of 2022

MONTREAL, Nov. 14, 2022 /CNW/ - Taiga Motors Corporation (TSX: TAIG) ("Taiga" or the "Company"), a leading electric off-road vehicle manufacturer, today reported its financial and operating results for the Third Quarter of 2022 ending September 30, 2022.

Taiga Motors Corp. logo (CNW Group/Taiga Motors Corporation)

Management Commentary

"The third quarter was another milestone quarter for Taiga. We launched our second electric vehicle category, the Orca™ personal watercraft, and delivered it to 40 customers in Canada. Every vehicle that leaves our facility is proof of Taiga realizing its vision of electrifying one of the toughest vehicle segments with technologically advanced vehicles re-defining outdoor exploration. Our successful deliveries during the third quarter culminated in Taiga recording its first ever $1 million revenue quarter."  said Samuel Bruneau, CEO of Taiga.

"Taiga's success is the result of our ability to adapt quickly in the face of challenges. The third quarter presented supply chain challenges which limited our ability to produce but gave us an opportunity to review and revamp our production plan. We have made strong progress in developing a high-volume supply base and production process to help further our lead in electric powersports. As such, we have revised our production plan for the Montreal facility to soon allow simultaneous production of the personal watercraft and snowmobile for added flexibility. This is yet another benefit of our modular approach to manufacturing our vehicles and powertrains."

"Our vehicles are like no other in the market. Taiga has introduced cutting edge technology to powersports and has set innovation standards for the future of off-road and marine vehicles. On November 10, 2022, Taiga's Nomad™ snowmobile and Orca personal watercraft were both included in TIME's Best Inventions of 2022 in the Outdoors category. Taiga was born to innovate, and TIME's recognition, along with winning the Fast Company 2022 World Changing Ideas Awards in May are both proof of the progress we've made in revolutionizing powersports."

Taiga initiated the Taiga Service Provider program during the quarter and signed on eight TSPs to provide customers service and deliveries across 12 locations in Canada and the United States. Taiga expects to scale its TSP network in line with its delivery schedule for its vehicles in the upcoming months.

Taiga has utilized real-world data from its connected snowmobiles operating in fleets to further improve its snowmobile platform. The upcoming Nomad has been enhanced with better handling dynamics and chassis stiffness among other updates for improved robustness and capability. The Company has also improved the snowmobile platform's production efficiency through greater part integration.

Taiga is currently manufacturing its personal watercraft, the Orca, and expects to continue its production into the first half of 2023. Orca deliveries will continue in Canada and will be initiated in the southern United States in the coming weeks. Taiga will also begin production of its 2023 Nomad snowmobile in the first quarter of 2023.

Following the close of the third quarter, on November 1, 2022, Taiga signed a repayable contribution agreement with The Economic Development Agency of Canada for the Regions of Quebec for $10 million. This agreement is part of the $50 million support previously announced on July 12, 2021. The purpose of the repayable contribution is to finance equipment and support production ramp-up. The repayable contribution facility will be disbursed on a milestone basis as the project progresses, bears no interest and is repayable over 7 years after a moratory of 3 years from the project completion date. Taiga expects to access up to $4 million over the next eight months in support of its growth and production ramp up.

Taiga remains focused on three key areas of the business, which include ramping up production and deliveries, building a culture of high performance, and increasing its brand awareness. The future of off-road is electric, and Taiga is committed to investing in and manufacturing the next generation of off-road vehicles to accelerate no-compromise access to the outdoors.

Third Quarter Financial Highlights (All amounts in Canadian dollars unless otherwise indicated)

  • Revenue of $1.3 million recorded during the third quarter of 2022. Taiga reported its initial revenue of $141,461 during the first quarter of 2022.
  • Cash and cash equivalents of $31.2 million as at September 30, 2022, compared to $52.4 million as at June 30, 2022.
  • Research & Development (R&D) expense (net of tax credits) increased to $4.4 million from $1.1 million compared to the third quarter of 2021.
  • General & Administration (G&A) expense increased to $5.5 million from $2.7 million compared to the third quarter of 2021.
  • Sales & Marketing (S&M) expense increased to $1.3 million from $1.1 million compared to the third quarter of 2021.
  • Net loss before other expenses for the period was $15.6 million compared to $4.9 million in the third quarter of 2021.
Third Quarter Operational Updates
  • Sold 40 personal watercraft units in the third quarter of 2022. Taiga initiated deliveries for its electric vehicles on March 18, 2022 and has sold 68 vehicles in the first nine months ended September 30, 2022.
  • Pre-order book grew to 3,267 pre-orders received as of September 30, 2022, marking a 39% growth compared to 2,356 units as of December 31, 2021.
  • Updated the production plan to improve efficiency at the Montreal production facility, which will soon be able to simultaneously produce the personal watercraft and snowmobile for added flexibility.
  • Initiated the TSP program with 8 TSP's activated across 12 locations in Canada and the United States.
  • Conducted almost 500 demonstration rides in Canada and the United States for current reservations holders and prospective customers over the summer of 2022.
  • Headcount at 237 full time employees at the end of the third quarter of 2022, with approximately half of the work force employed in engineering.
Outlook

In 2022, production continues to remain limited by various factors, such as, supply chain pressures, availability of raw materials and other components, manufacturing process optimization and volume related cost efficiencies. Taiga has invested in its supply chain and inventory in order to de-risk certain key components. As a result, it is now in a position to progressively ramp up its weekly production later in the fourth quarter of 2022 with the expectation of delivering 2,500 to 3,500 units for 2023. The current Orca production is expected to extend into the first half of 2023 with the snowmobile production beginning in the first quarter of 2023.

To support Taiga's growth and its various initiatives, management is committed to secure additional sources of funds. Taiga has signed an agreement with a government entity that will provide the company access to a portion of the required funds in support of Taiga's growth and production ramp up. Taiga continues to proactively seek additional sources of funds and cannot be certain that funds would be available to it on favorable terms when required, or at all. See "Forward-Looking Statements" below and "Business Risks" sections of the accompanying third quarter 2022 MD&A.

Conference Call

Taiga management will hold a conference call today (November 14, 2022) at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results.

Toll-Free Dial-In: +1 855-658-2585
International Dial-In: +1 514-375-0364

The conference call will be broadcast live and available for replay here and via the Investor Relations section of Taiga's website.

A telephonic replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through November 21, 2022.

Toll-free replay number: +1 800-319-6413
International replay number: +1 604-638-9010
Replay ID: 9516

About Taiga

Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit www.taigamotors.com.

Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, the expected operations, financial results and condition of the Company, expectations regarding market trends, the Company's growth rates, the Company's future objectives and strategies to achieve those objectives, including, without limitation, organic growth and future acquisitions, expected timelines for achieving mass production capabilities, the ramp-up of its current facility and development of its second facility, expected deliveries, the ability to obtain sufficient financing, the ability to advance the Taiga Service Providers program in a measured manner and the associated manufacturing benefits in respect thereof, including increased capacity as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions.

This forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", as well as the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments and therefore the reader is cautioned that such information may not be appropriate for other purposes.

We draw your attention to the "Key Factors Affecting Taiga's Performance" section of the Company's management's discussion and analysis for the three and nine-month periods ended September 30, 2022 and to note 2 of our unaudited condensed consolidated interim financial statements that indicates the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The Company's ability to continue as a going concern for the next twelve months involves significant judgment and is dependent on, among other things, its ability to obtain necessary financing, either through a combination of public or private equity or debt financing or other sources. Management is currently seeking potential sources of financing. While the Company has been successful in securing financing in the past and believes it will be able to obtain sufficient funds in the future and ultimately achieve profitability and positive cash flows from operations, raising additional funds is dependent on a number of factors outside the Company's control, as such there is no assurance that it will be able to do so in the future.

Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the effective further supply chain disruptions, and the impact of such disruptions on ability to fulfil orders, pre-orders for the Company's vehicles being cancelled and those described in the Company's management's discussion and analysis for the three and nine-month periods ended September 30, 2022, and under the "Risk Factors" section of the Company's annual information form filed on March 28, 2022 on the Company's SEDAR profile at sedar.com. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.

All of the forward-looking information contained in this press release is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

_____________________________

1

Pre-orders for new Taiga vehicles are cancelable and the deposit fully refundable, and there can be no assurance that such pre-orders will be converted into sales. 

SOURCE Taiga Motors Corporation

Copyright 2022 Canada NewsWire

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