CORONA, CA–(Marketwired – Mar 24, 2016) – Saleen Automotive, Inc. (OTCBB: SLNNE) (the “Company”), an American specialty manufacturer of high performance vehicles, technical performance parts, lifestyle accessories and apparel, is pleased to provide the market with its results for the three and nine months ended December 31, 2015. The Company’s full report on Form 10-Q is available in its entirety at http://edgar.sec.gov/.
Key financial results for the three and nine months ended December 31, 2015 are summarized herein:
- Revenues were $552,342 and $2,771,518 for the three and nine months ended December 31, 2015, respectively, compared to $536,895 and $3,072,596 for the three and nine months ended December 31, 2014, respectively. The decrease in revenues was primarily related to lower chassis revenue, as dealers opted to obtain and send to us the chassis rather than us procuring the chassis on their behalf. However, on a quarter over quarter basis, we experienced higher conversion revenue and on a year over year basis, an increase in revenue from sales of our aftermarket retail parts.
- Margin improved to a margin of 11% and 16% for the three and nine months ended December 31, 2015, respectively, compared to a margin loss of 2% and margin profit of 11% for the three and nine months ended December 31, 2014, respectively. The increase in gross margin primarily reflected the sales mix and conversion volume as compared to the same period in the prior year along with sales of less chassis and increase in performance parts sales.
- Operating expenses declined significantly to $735,973 and $2,421,201, respectively, for the three and nine months ended December 31, 2015 from $1,219,347 and $4,639,437, respectively, for the three and nine months ended December 31, 2014; representing a decrease of 40% and 48%, respectively. The decrease was driven by lower general and administrative expenses primarily resulting from our efforts to reduce costs.
- Loss from operations also improved significantly to a loss of $677,312 and $1,982,544 for the three and nine months ended December 31, 2015, respectively, from a loss of $1,235,240 and $4,292,219 for the three and nine months ended December 31, 2014, respectively, representing a decrease of 45% and 54%, respectively. The improvement in our operating loss resulted from the decline in operating expenses coupled with improvement in gross profit.
- Net cash used in operating and investing activities declined to a use of $894,423 and $12,810, respectively, for the nine months ended December 31, 2015 compared to $2,127,243 and $218,685, respectively, for the nine months ended December 31, 2014.
- At December 31, 2015 we had cash on hand in the amount of $60,850. As discussed further in our current quarterly report on Form 10-Q filed on March 24, 2016, we will need and are currently seeking additional financing to fund our operations and development. To this end, and as further discussed in our Form 8-K filed on December 8, 2015 and further in Note 5 to our condensed consolidated financial statements, on December 2, 2015, we entered into a Securities Purchase Agreement (the “Purchase Agreement”), with SM Funding Group, Inc. (“SM Funding”). Under the Purchase Agreement, we issued to SM Funding a 12% Senior Secured Convertible Note (“Senior Note”) under which SM Funding may advance to us up to $2,000,000 of which SM Funding previously advanced to us $960,000. In addition, we agreed to offer SM Funding or its affiliates up to $10 million of Preferred Stock. Over the next few months, we will continue working with SM Funding to raise funds to grow our business and help achieve our objectives. However, SM Funding is currently in default of its obligations to make advances to the Company under a Binding Letter of Intent (the “LOI”) the Company entered into with SM Funding on October 21, 2015. Accordingly, no assurance can be given that the Company will complete the financing transactions with SM Funding, including obtaining additional advances under the Senior Note, and no assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company.
“This quarter we continued to see expansion in our distribution networks, including expansion in China through the first ever Saleen brand showroom in Shanghai, China. In addition, sales of our Saleen Mustang and performance parts revenue expanded on a year over year quarterly basis and we were able to significantly reduce our loss from operations by almost 50% on a year over year basis. However, we still have a lot of work to do, but are committed to expanding distribution; producing high quality and fun to drive performance vehicles; expanding our line and distribution of performance parts; growing our global presence, as well as tailoring our business for efficiency,” stated Steve Saleen, CEO, Saleen Automotive. “With the help of SM Funding and success of our Saleen Mustang both domestically and now internationally, we anticipate further growth in sales of vehicles and aftermarket sales,” added Saleen.
Saleen uses the following outlets to provide updates from time to time to the public regarding its business and operations:
Company website: www.saleenautomotive.com
About Saleen Automotive, Inc.
Saleen is an American specialty manufacturer of high performance vehicles, technical performance parts, lifestyle accessories and apparel. Founder Steve Saleen has continually set the bar for automotive design and performance engineering in both street and racing applications. Saleen plans to utilize its existing strategic partnerships and dealer network to refine its design and engineering prowess, continue development of emerging automotive technologies, and expand its presence nationwide with a combination of automotive retail services, aftermarket parts and new vehicle sales to build significant long-term value. Learn more at www.saleenautomotive.com.
[SOURCE: Saleen Automotive, Inc.]