Canoo plans to spend double its annual revenue on CEO's private jet by 2023 | Tech Crunch

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Tucked inside Canoo's 2023 earnings report is a nugget about CEO Tony Aquila's use of a private jet — one of many expenses. Explains the gap between cost and revenue in an EV startup.

Kanoo posted its fourth-quarter and full-year earnings for 2023 on Monday in a regulatory filing showing the company burning through cash as it tries to increase its commercial electric vehicle volume and avoid the same fate as other EV startups recently. Arrival of Bankruptcy. The regulatory filing once again contained a “going concern” warning – which continues through 2022 – as well as some progress on the costs and revenue fronts.

The company generated $886,000 in revenue in 2023, compared to zero dollars in 2022, as the company delivered 22 vehicles to organizations such as NASA and the state of Oklahoma. And it nearly halved its loss from operations, from $506 million in 2022 to $267 million in 2023. The revenue-loss gap is still significant: the company reported net losses totaling $302.6 million in 2023.

However, one only has to look at what Canoo is paying to charter the CEO's private jet to put those “wins” in perspective. Under the agreement reached in November 2020, Canoo will reimburse Aquila Family Ventures, a company owned by the CEO, for the use of the aircraft. In 2023, Canoo spent $1.7 million on these reimbursements — double the revenue it generated. Canoo paid Aquila Family Ventures $1.3 million in 2022 and $1.8 million in 2021 for the use of the aircraft.

Separately, Canoo paid $1.7 million in 2023, $1.1 million in 2022 and $500,000 in 2021 for shared services support at its Justin, Texas, corporate office facility, according to regulatory filings.

If Canoo reaches its revenue forecast of $50 million to $100 million by 2024, this amounts to small monetary potatoes.

We've asked Canoo for comment and will update this post if we hear back.

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