Taiga Motors Corporation, an electric off-road vehicle manufacturer, reported its financial and operating results for the year ended December 31, 2023.
Taiga reported $16.1 million from the sale of 592 vehicles during the full year of 2023 and $6.1 million from the sale of 242 vehicles during the fourth quarter ended December 31, 2023.
Nomad snowmobile production started in November 2023 for the 2023/2024 winter season. During the quarter, Taiga said it continued to build its sales channels and commenced distribution to international markets in South America and the U.A.E. alongside the continued development of its Taiga Service Provider (TSP) network to 40 locations across Canada and the United States as of December 31, 2023.
After making major investments in 2022-2023 on new product launches and to support the company’s rapid production ramp-up, Taiga said it is now focused on driving cost efficiency throughout the business and on deploying its omnichannel sales model to support sustainable growth.
In view of the current economic context combined with an unusually mild winter that negatively impacted the snowmobile business, Taiga is in the process of taking several steps to adjust its operations to better align seasonal production timing with dealer inventory levels. As such, the company announced that it is temporarily pausing its vehicle production and temporarily reducing its workforce accordingly by approximately 70 people. In addition, Taiga said it is “committed to further reducing its operating burn in 2024 and will continue to adjust the scale of its operations to the current market reality while maintaining the Company’s focus on expanding sales.”
Fourth Quarter 2023 financial highlights for Taiga included:
- Recorded revenue of $6.1 million during the fourth quarter of 2023, compared to $1.4 million in the fourth quarter of 2022.
- Recorded Cost of Sales of $15.6 million during the fourth quarter of 2023, compared to $17.1 million in the fourth quarter of 2022.
- Research & Development (R&D) expense (net of tax credits) increased to $3.1 million in the fourth quarter of 2023 from $2.0 million in the fourth quarter of 2022.
- General & Administration (G&A) expense increased to $6.2 million from $4.9 million compared to the fourth quarter of 2022.
- Sales & Marketing (S&M) expense of $1.0 million remained relatively stable with no change compared to the fourth quarter of 2022.
- Net loss for the period decreased to $22.2 million compared to $23.8 million in the fourth quarter of 2022.
Taiga’s full-year 2023 financial highlights included:
- Revenue of $16.1 million recorded during 2023, compared to $3.2 million recorded in 2022.
- Cost of Sales of $43.0 million recorded during 2023, compared to $29.2 million reported in 2022.
- Research & Development (R&D) expense (net of tax credits) increased to $15.4 million from $9.4 million compared 2022.
- General & Administration (G&A) expense increased to $20.9 million from $19.8 million in 2022.
- Sales & Marketing (S&M) expense increased to $5.1 million from $4.3 million in 2022.
- Net loss for 2023 increased to $72.5 million compared to $59.5 million in 2022.
- Additions to Property and Equipment decreased to $11.4 million compared to $12.1 million in 2022.
- Cash and cash equivalents of $5.3 million as at December 31, 2023, compared to $22.8 million as at December 31, 2022.
- Inventory increased to $33.2 million as at December 31, 2023, compared to $20.8 million as at December 31, 2022.
