Arrival is running out of cash — and fast

The high cost of trying to develop and produce vehicles, a business pivot and three restructurings has taken a toll on commercial EV maker Arrival. And it doesn't look like it's going to get any easier for the company.

Arrival, which went public in 2021 via a merger with a special purpose acquisition company, posted preliminary fourth-quarter and full-year earnings reports Thursday. The gist? Arrival is burning through cash and is on the hunt for more.

Curiously, Arrival has pushed its earnings call and "business update" to March 13. (Public companies traditionally hold a call with investors and analysts the same day they report earnings.) These extra few days will allow the "company to potentially finalize a transaction which, if consummated, would provide additional liquidity and further extend its runway."

Arrival didn't disclose any details about the transaction and it's unclear if the company is selling assets, raising funds or both.

The EV maker also issued a range for its quarterly and full-year losses, another odd move that suggests the company hasn't finalized its accounting. The range doesn't soften the news. Arrival is a sieve.

The company has yet to generate any revenue and doesn't expect to until 2024. Which means its results are all about expenses.

Arrival reported a net loss of between $588 million and $597 million in the fourth quarter compared to a $67 million loss in the same year-ago period. That huge jump in losses is due in part to non-cash impairment charges and write-offs of about $406 million, according to the company. Even with that write-down removed, the company still saw its losses expand nearly threefold.

Net losses for 2022 were between $998 million and $1 billion compared to a loss of $1.3 billion in the previous year. That might not seem so bad, in terms of comparison. However, Arrival notes that the full-year 2021 loss included a one-time non-cash charge of $1.2 billion that was associated with the merger of itself and CIIG.