Costa Mesa-based Indi EV Inc., which had yet to generate any revenue or launch its first electric vehicle, filed for bankruptcy this month.
The company listed assets of $2.8 million and liabilities of $26.4 million, according to court filings.
At the end of September 2022, Indi’s loss from operational costs neared $18 million, down 31% from the year prior. The decline in expenses was due to the completion of Indi’s first set of prototype EVs for public debut in 2021, when it saw a net loss of $35 million.
Indi’s accumulated deficit topped $116 million as of last May. Funding for the company so far has come from stock sales and investments from Indi’s founder and CEO Shi Hai.
Production Goals
After seven years, Indi EV had recently taken steps to begin mass production on its first model.
The EV firm moved from Los Angeles into a nearly 35,000-square-foot headquarters in Costa Mesa last December, taking the entirety of 1690 Scenic Ave.
Voit Real Estate Services now has the listing for the building, according to CoStar Group, which lists the site as vacant.
Upon a visit from the Business Journal last week, the office was shuttered and there was no activity at the site.
The company about a year ago said it inked a $120 million deal with manufacturing firm Hito Robotics to purchase equipment for a completely automated assembly line for the production of the Indi One crossover.
Prior to the move, Indi EV had signed a memorandum of understanding with the Hon Hai Technology Group, also known as FoxConn, to manufacture the first prototypes of the Indi One.
The flagship vehicle had been in production since 2017 and was first revealed to the public in 2021. The Indi One’s in-vehicle computer would have allowed passengers to browse the web, video chat, edit documents and watch YouTube and TikTok, the company said.
FoxConn planned to manufacture the prototype EVs at its Ohio facility, formerly owned by Lordstown Motors Corp.
SPAC Plans
With sights on starting commercial production this year, Indi EV in February announced plans to go public via a reverse merger with special purpose acquisition company (SPAC) Malacca Straits Acquisition Company Ltd. (Nasdaq: MLAC).
The EV company was optimistically valued at around $600 million at the time.
Officials expected the company to generate revenue starting next year with production underway.
In June, the deal with Malacca was called off and the SPAC opted to liquidate. The termination occurred “on mutually acceptable terms,” according to a company statement.
Malacca reported an estimated redemption price of all outstanding stock at approximately $10.53 per share, above its $10 IPO price. The SPAC filed to terminate its reporting obligations on June 26.
Negotiations with FoxConn concerning future production were reportedly still in progress before the filing.
Indi EV was also getting started with designs for two other vehicles, the Indi Space luxury van and the Indi Two pickup truck.
