Just hours after Bird said it had overstated revenue for more than two years by recognizing unpaid customer rides, Bird dropped a growing concern warning. In a regulatory filing, the company said it might “need to scale back or discontinue certain or all of its operations in order to reduce costs or seek bankruptcy protection.”
Bird closed out the third quarter with $38.5 million in free cash flow. Without additional funding, the company said it would be unable to meet its obligations over the next year. Bird points to “factors beyond its control” like current market volatility that could impact if and how Bird receives further equity or debt financing.
“Accordingly, the Company plans to continue to closely monitor its operating forecast, reduce its operating expenses, and pursue additional sources of outside capital,” reads the filing. “Along with this global footprint realignment, the Company is targeting additional reductions in its operating expenses.”
Bird has been battling since going public via special purpose acquisition merger in 2021. The young company’s dramas have only heightened over the past few months. Since May, Bird has dismantled its retail business, laid off 23% of staff, received a warning from the New York Stock Exchange for trading too low and exited Germany, Sweden, Norway and “several dozen” markets in the U.S. Additionally, Bird’s CEO Travis VanderZanden stepped down as president, and then as CEO, and was replaced in both roles by Shane Torchiana.
Bird isn’t the only SPAC this year to issue a growing concern warning. Canoo and Arrival both also said they may not have enough funds to get their EVs to market, and Arrival also recently got a delisting warning from the Nasdaq.
Bird’s stock tanked nearly 16% today and is currently trading at $0.36. The company has until next month to bring its stock price up above $1.00 per its warning from the NYSE.
This story is still developing. Please check back in for updates.
