The electric vehicle start-up has received new scrutiny from the Nikola Securities and Exchange Commission, which has presented the company for information related to plans to raise more capital from investors.
Nicolas also recovered his 2020 earnings after U.S. securities regulators changed the rules for accounting for publicly traded firms using special-purpose acquisitions or specs.
According to the SEC regulatory filing, Nicolar issued a SEC subpoena on March 24 regarding “2021 capital raised 2021 cash flows and expected utilization of expected funds”.
Nicola, Whose investor disclosure was under investigation by the SEC and the U.S. Department of Justice after allegations of fraud in a short seller report last fall, said in March that it had planned Sale up to $ 100m Holds shares to investors in 2021. The funds were raised to ensure there would be sufficient capital for the next 12 to 18 months, it says.
Nicolar shares have risen since it was published last year amid concerns about plans to build an electronic truck by merging with SPAC. However, its shares fell 60 percent from their peak and the company acknowledged this Nine statements Founder Trevor Milton was not completely or partially wrong about Nicola’s progress and technological prowess. Milton left the company in September.
The company spent .5 14.5 million on expenses in the first quarter.
Nicola said it has redefined its earnings to comply with new guidelines issued by the SEC last month, which said that when specs were considered liable, they were incorrectly liable for warrants as equity. Warrants, which are given free to early investors as a sweet, serve as an alternative that can be used to buy more shares at a fixed price in the future.
The change added cash gains of 7. 7.3 million and 13 13.4 million to long-term liabilities, Chief Financial Officer Kim Brady said. It does not affect operating expenses or cash flow.
Shares of Nicola rose nearly 10 percent on Friday as Wall Street expectations fell in the first quarter as the company posted a loss of 14 cents on earnings per share, compared to a 26 percent loss.
Everco’s ISI analyst Chris McNally said the results were “encouraging” even though they were set against “relatively low expectations”.
The SEC on Thursday stepped up its oversight of the SEC speculation, focusing specifically on optimistic revenue estimates used to attract institutional investors and retail buyers.
In a statement last month, John Coates, acting director of the corporation finance division at the SEC, suggested that companies listed through SPAC could be responsible for looking ahead. He said “going to the public using SPACK rather than the traditional theological initial public offer“ doesn’t give anyone a free pass for material confusion or exclusion ”, he said.