Nikola Corporation Reports Second Quarter 2024 Results

    --  Reported strongest topline in the history of the company, Q2 2024
        revenue was $31.3M, up 318% from Q1
    --  Wholesaled 72 hydrogen fuel cell electric vehicles in Q2, exceeding the
        high-end of guidance, up 80% from Q1
    --  Created alternative revenue streams with our initial sale of regulatory
        credits
    --  BEV "2.0" recall program on track for completion by year-end 2024

PHOENIX, Aug. 9, 2024 /PRNewswire/ -- Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today reported financial results and business updates for the quarter ended June 30, 2024.

"In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class 8 trucking to make zero-emission a reality," said Steve Girsky, President and CEO of Nikola. "We are the only OEM with Class 8 FCEVs commercially available in North America today. Our trucks are put to the test every day by end fleet users, hauling freight and delivering to their customers. Q2 is an example of how we're approaching the intersection of mission and reality and how Nikola is out front, charting the course."

Hydrogen Fuel Cell Electric Truck

In Q2, we exceeded the high-end of the guidance range by delivering 72 hydrogen fuel cell electric vehicles (FCEVs) to our dealer network. That makes 147 wholesaled FCEVs in the first three quarters of serial production. Last quarter, we talked about the importance of expanding our reach to meet the demands of end fleet users virtually anywhere in North America. Walmart Canada is the first major retailer in Canada to introduce a hydrogen fuel cell electric semi-truck to its fleet. We also received repeat orders from two national accounts. Nikola's Profitability Flywheel is beginning to gain momentum with these national accounts, as each of these end fleets grows its zero-emission presence to achieve decarbonization goals.

We continue to delight fleet users with data-driven quality and performance. To date, our FCEV end fleets have traveled more than 550K miles with an average fuel economy of 7.2 mi/kg, validating our performance benchmark. We collect field data every day and the numbers bear out. On a converted basis, our FCEVs outperformed the average Class 8 truck on fuel economy and avoidance of tailpipe emissions. We estimate the average miles per gallon (mpg) diesel equivalent of our FCEV is 8.0, or 23% better, than the Class 8 fuel economy average of 6.5/diesel gallon equivalent (DGE) per the Department of Energy. Moreover, in-service FCEVs have consumed more than 77 metric tons of hydrogen dispensed at various Nikola fueling solutions. In total, we estimate our FCEV end fleet operations have avoided approximately 867 metric tons of CO(2) tailpipe emissions.*

HYLA Energy

We're delivering HYLA fueling solutions to support volume ramp up. As a strategy, we are launching stations and deploying assets where we anticipate demand. It is our objective to stay ahead of FCEV deployment so that fueling solutions are ready and available for end fleets. To that end, since the Q1 earnings call, we opened a HYLA branded station in Toronto, Ontario, Canada and completed commissioning a modular station in Santa Fe Springs in Southern Calif. We also added another modular refueler at our Ontario, Calif. station, doubling capacity. We recently had a record day in Ontario, with 28 FCEVs refueled and more than 850kg of hydrogen dispensed in one day. Likewise, through our work with Shell, our fleet customers have been able to fuel at Shell's heavy-duty station in Ontario, CA, where density has been growing. Our stations run 24/7 to support the around-the-clock operations of our fleet users.

Constructive Green Policies

We continued to maintain our dominant share of HVIP vouchers in Calif. At quarter-end, we had 99% of FCEV and 23% of battery-electric vehicle (BEV) HVIP vouchers. We also created alternative revenue streams from the sale of regulatory credits. We recognized our first sale agreement of NOx and PM credits in the quarter. We expect this revenue stream to grow as volume increases each model year.

Battery-Electric Truck

We continued to make progress returning BEVs to our dealer network and end fleet users. We remain on track to complete the recall program by year-end 2024. Feedback on returned units has been overwhelmingly positive and over-the-air updates continue to reach customers.

Second Quarter Financial Highlights


                                                                                           Three Months Ended                  Six Months Ended
                                                                                  June 30,                         June 30,



     (In thousands, except share and per share data)                              2024                  2023             2024                2023



     Trucks produced                                                                77                    33              120                  96



     Trucks shipped                                                                 73                    45              113                  76



     Total revenues                                                            $31,319               $15,362          $38,816             $26,039



     Gross profit (loss)                                                     $(54,726)            $(27,631)      $(112,301)          $(50,328)



     
              
                Gross margin                                      (175) %              (180) %         (289) %            (193) %



     Loss from operations                                                   $(131,124)           $(168,626)      $(276,487)         $(295,826)



     Net loss from continuing operations                                    $(133,674)           $(140,010)      $(281,396)         $(285,261)



     Net loss on discontinued operations                               
      $          -            $(77,818)  
     $          -         $(101,661)



     Net loss                                                               $(133,674)           $(217,828)      $(281,396)         $(386,922)



     Adjusted EBITDA (1)                                                    $(109,396)           $(125,068)      $(213,427)         $(228,756)



     Net loss from continuing operations per share, basic and diluted          $(2.86)              $(5.93)         $(6.17)           $(13.59)



     Net loss from discontinued operations                            
      $           -              $(3.29)  
     $          -            $(4.85)



     Non-GAAP net loss per share, basic and diluted(1)                         $(2.67)              $(5.90)         $(5.29)           $(12.35)



     Weighted-average shares outstanding, basic and diluted                 46,699,945            23,623,094       45,614,635          20,987,679


     
     (1) 
     A reconciliation of the non-GAAP versus GAAP information is provided below in the financial statement tables in this press release.

Webcast and Conference Call Information

Nikola will host a webcast to discuss its second quarter results and business progress at 7:30 a.m. Pacific Time (10:30 a.m. Eastern Time) on August 9, 2024. To access the webcast, parties in the United States should follow this link.

The live audio webcast, along with supplemental information, will be accessible on the Company's Investor Relations website here. A recording of the webcast will also be available following the earnings call.

*Average emissions avoidance estimate based on total end fleet odometer mileage, avg. 6.5 mi/diesel gallon equivalent fuel economy of Class 8 trucks (per DOE), and the mobile combustion emission factor of 10.21 kg CO2 per gallon of diesel fuel (per EPA).

About Nikola Corporation

Nikola Corporation's mission is clear: pioneering solutions for a zero-emissions world. As an integrated truck and energy company, Nikola is transforming commercial transportation, with our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, driving the advancement of the complete hydrogen refueling ecosystem, covering supply, distribution and dispensing.

Nikola headquarters is based in Phoenix, Ariz. with a manufacturing facility in Coolidge, Ariz.

Experience our journey to achieve your sustainability goals at nikolamotor.com or engage with us on social media via Facebook @nikolamotorcompany, Instagram @nikolamotorcompany, YouTube @nikolamotorcompany, LinkedIn @nikolamotorcompany or X / Twitter @nikolamotor

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Nikola Corporation (the "Company"), including statements relating to: the Company's future financial and business performance, business plan, strategy, focus, opportunities and milestones; the benefits and momentum in the Company's profitability flywheel; customer demand for trucks; the Company's beliefs regarding its competition and competitive position; the Company's business outlook; the Company's expectations regarding hydrogen refueling solutions and timelines; expectations related to the battery-electric truck recall, including timing of battery replacement and truck deliveries and sales; the Company's beliefs regarding the benefits and attributes of its trucks, and customer experience; estimated average mileage per gallon diesel equivalent; estimated avoidance of tailpipe emissions; and government incentives including CARB credits and expectations regarding related revenue. These forward-looking statements other than statements of historical fact, and generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: successful execution of the Company's business plan; design and manufacturing changes and delays, including shortages of parts and materials and other supply challenges; general economic, financial, legal, regulatory, political and business conditions and changes in domestic and foreign markets; demand for and customer acceptance of the Company's trucks and hydrogen refueling solutions; the results of customer pilot testing; the execution and terms of definitive agreements with strategic partners and customers; the failure to convert LOIs or MOUs into binding orders; the cancellation of orders; risks associated with development and testing of fuel cell power modules and hydrogen storage systems; risks related to the recall, including higher than expected costs, the discovery of additional problems, delays retrofitting the trucks and delivering such trucks to customers, supply chain and other issues that may create additional delays, order cancellations as a result of the recall, litigation, complaints and/or product liability claims, and reputational harm; risks related to the rollout of the Company's business and milestones and the timing of expected business milestones; actual driving conditions and other factors that affect vehicle range; changes in methodology, inputs, assumptions or other factors used to estimate average mileage per gallon diesel equivalent or avoidance of tailpipe emissions; the effects of competition on the Company's business; the Company's capital needs ability to raise capital; the Company's ability to achieve cost reductions and decrease its cash usage; the grant, receipt and continued availability of federal and state incentives; and the factors, risks and uncertainties regarding the Company's business described in the "Risk Factors" section of the Company's Quarterly Report on Form 10-Q, for the quarter ended March 31, 2024 filed with the SEC, in addition to the Company's subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause the Company's actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Measures

This press release references Adjusted EBITDA and non-GAAP net loss per share, basic and diluted, all of which are non-GAAP financial measures and are presented as supplemental measures of the Company's performance. The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization, stock-based compensation expense, and certain other items determined by the Company. Non-GAAP net loss is defined as net loss adjusted for stock-based compensation expense and certain other items determined by the Company. Non-GAAP net loss per share, basic and diluted is defined as non-GAAP net loss divided by weighted average basic and diluted shares outstanding. These non-GAAP measures are not substitutes for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting these non-GAAP measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.


                                                                         
              
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                
              (In thousands, except share and per share data)

                                                                                                  
              (Unaudited)




                                                                                                                                                            Three Months Ended                      Six Months Ended
                                                                                                                                                  June 30,                             June 30,


                                                                                                                                                       2024                   2023                2024                    2023



     
                
                  Revenues:



     Truck sales                                                                                                                                   $28,743                $12,006             $36,161                 $22,061



     Service and other                                                                                                                               2,576                  3,356               2,655                   3,978



     Total revenues                                                                                                                                 31,319                 15,362              38,816                  26,039



     
                
                  Cost of revenues:



     Truck sales                                                                                                                                    78,994                 40,203             140,741                  73,223



     Service and other                                                                                                                               7,051                  2,790              10,376                   3,144



     Total cost of revenues                                                                                                                         86,045                 42,993             151,117                  76,367



     
                
                  Gross loss                                                                                                       (54,726)              (27,631)          (112,301)               (50,328)



     
                
                  Operating expenses:



     Research and development (1)                                                                                                                   40,161                 64,514              79,658                 126,320



     Selling, general, and administrative (1)                                                                                                       36,237                 58,764              84,528                 101,461



     Loss on supplier deposits                                                                                                                           -                17,717                                     17,717



     Total operating expenses                                                                                                                       76,398                140,995             164,186                 245,498



     
                
                  Loss from operations                                                                                            (131,124)             (168,626)          (276,487)              (295,826)



     Other income (expense):



     Interest expense, net                                                                                                                         (3,941)               (8,749)            (6,219)               (18,582)



     Gain on divestiture of affiliate                                                                                                                    -                70,849                                     70,849



     Loss on debt extinguishment                                                                                                                   (1,529)              (20,362)            (2,313)               (20,362)



     Other income (expense), net                                                                                                                     3,893                (5,505)              4,753                 (5,315)



     
                
                  Loss before income taxes and equity in net loss of affiliates                                                   (132,701)             (132,393)          (280,266)              (269,236)



     Income tax expense                                                                                                                                 92                                        92



     
                
                  Loss before equity in net loss of affiliates                                                                    (132,793)             (132,393)          (280,358)              (269,236)



     Equity in net loss of affiliates                                                                                                                (881)               (7,617)            (1,038)               (16,025)



     
                
                  Net loss from continuing operations                                                                             (133,674)             (140,010)          (281,396)              (285,261)



     
                
                  Discontinued operations:



     Loss from discontinued operations                                                                                                                   -              (52,883)                                  (76,726)



     Loss from deconsolidation of discontinued operations                                                                                                -              (24,935)                                  (24,935)



     
                
                  Net loss from discontinued operations                                                                                   -              (77,818)                                 (101,661)



     
                
                  Net loss                                                                                                       $(133,674)            $(217,828)         $(281,396)             $(386,922)





     Basic and diluted net loss per share (2):



     Net loss from continuing operations                                                                                                           $(2.86)               $(5.93)            $(6.17)               $(13.59)



     Net loss from discontinued operations                                                                                    
              $               -               $(3.29)  
     $             -                $(4.85)



     Net loss                                                                                                                                      $(2.86)               $(9.22)            $(6.17)               $(18.44)





     Weighted-average shares outstanding, basic and diluted (2)                                                                                 46,699,945             23,623,094          45,614,635              20,987,679



              
                (1) Includes stock-based compensation as follows:

                                                            Three Months Ended June 30,         Six Months Ended June 30,


                                               2024    2023                   2024         2023



     Cost of revenues                         $352    $668                   $680       $1,399



     Research and development                2,493   6,574                  5,352       15,660



     Selling, general, and administrative    5,105  18,467                 10,704       33,198



     Total stock-based compensation expense $7,950 $25,709                $16,736      $50,257


     
     (2) Shares issued and outstanding have been adjusted to reflect the one-for-thirty (1-for-30) reverse stock split that became effective on June 24, 2024.


                                                         
              
                CONDENSED CONSOLIDATED BALANCE SHEETS

                                                          
              (In thousands, except share and per share data)

                                                                            
              (Unaudited)




                                                                                                                         June 30,  December 31,


                                                                                                                              2024          2023


                                                                                                                       (Unaudited)



     
                
                  Assets



     Current assets



     Cash and cash equivalents                                                                                           $256,330      $464,715



     Restricted cash and cash equivalents                                                                                  10,200         1,224



     Accounts receivable, net                                                                                              39,840        17,974



     Inventory                                                                                                             62,134        62,588



     Prepaid expenses and other current assets                                                                             61,599        25,911



     Total current assets                                                                                                 430,103       572,412



     Restricted cash and cash equivalents                                                                                  16,086        28,026



     Long-term deposits                                                                                                     8,887        14,954



     Property, plant and equipment, net                                                                                   494,023       503,416



     Intangible assets, net                                                                                                82,161        85,860



     Investment in affiliate                                                                                               56,024        57,062



     Goodwill                                                                                                               5,238         5,238



     Other assets                                                                                                          17,392         7,889



     
                
                  Total assets                                                                          $1,109,914    $1,274,857



     
                
                  Liabilities and stockholders' equity



     Current liabilities



     Accounts payable                                                                                                     $55,559       $44,133



     Accrued expenses and other current liabilities                                                                       213,980       207,022



     Debt and finance lease liabilities, current                                                                           11,806         8,950



     Total current liabilities                                                                                            281,345       260,105



     Long-term debt and finance lease liabilities, net of current portion                                                 266,390       269,279



     Operating lease liabilities                                                                                            7,362         4,765



     Other long-term liabilities                                                                                           31,264        21,534



     Total liabilities                                                                                                    586,361       555,683



     Commitments and contingencies



     Stockholders' equity



     Preferred stock                                                                                                            -



     Common stock                                                                                                               5             4



     Additional paid-in capital                                                                                         3,876,034     3,790,401



     Accumulated deficit                                                                                              (3,352,465)  (3,071,069)



     Accumulated other comprehensive loss                                                                                    (21)        (162)



     Total stockholders' equity                                                                                           523,553       719,174



     
                
                  Total liabilities and stockholders' equity                                            $1,109,914    $1,274,857



     
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


     (In thousands)


     (Unaudited)




                                                                                                                                     Six Months Ended June 30,


                                                                                                                                   2024                      2023



     
                
                  Cash flows from operating activities



     Net loss                                                                                                               $(281,396)               $(386,922)



     Less: Loss from discontinued operations                                                                                         -                (101,661)



     Loss from continuing operations                                                                                         (281,396)                (285,261)



     Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:



     Depreciation and amortization                                                                                              21,688                    11,762



     Stock-based compensation                                                                                                   16,736                    50,257



     Equity in net loss of affiliates                                                                                            1,038                    16,025



     Revaluation of financial instruments                                                                                      (2,147)                    7,906



     Revaluation of contingent stock consideration                                                                                   -                  (2,472)



     Inventory write-downs                                                                                                      37,576                    12,718



     Non-cash interest expense                                                                                                   7,835                    19,363



     Loss on supplier deposits                                                                                                       -                   17,717



     Gain on divestiture of affiliate                                                                                                -                 (70,849)



     Loss on debt extinguishment                                                                                                 2,313                    20,362



     Loss on disposal of assets                                                                                                  3,158



     Other non-cash activity                                                                                                     3,680                     1,015



     Changes in operating assets and liabilities:



     Accounts receivable, net                                                                                                 (21,866)                   11,640



     Inventory                                                                                                                (38,132)                   11,725



     Prepaid expenses and other current assets                                                                                (20,029)                 (48,583)



     Other assets                                                                                                                (962)                  (2,041)



     Accounts payable, accrued expenses and other current liabilities                                                            6,234                  (59,474)



     Long-term deposits                                                                                                          (278)                  (1,293)



     Operating lease liabilities                                                                                               (1,739)                    (779)



     Other long-term liabilities                                                                                                16,135                     3,097



     Net cash used in operating activities                                                                                   (250,156)                (287,165)



     
                
                  Cash flows from investing activities



     Purchases and deposits of property, plant and equipment                                                                  (30,182)                 (87,719)



     Proceeds from the sale of assets                                                                                           21,398



     Divestiture of affiliate                                                                                                        -                   35,000



     Payments to Assignee                                                                                                            -                  (2,724)



     Investments in affiliate                                                                                                        -                     (84)



     Net cash used in investing activities                                                                                     (8,784)                 (55,527)



     
                
                  Cash flows from financing activities



     Proceeds from the exercise of stock options                                                                                     -                    1,040



     Proceeds from issuance of shares under the Tumim Purchase Agreements                                                            -                   67,587



     Proceeds from registered direct offering, net of underwriter's discount                                                         -                   63,806



     Proceeds from public offering, net of underwriter's discount                                                                    -                   32,244



     Proceeds from issuance of common stock under Equity Distribution Agreement, net of commissions and other fees paid         52,201                    61,565



     Proceeds from issuance of convertible notes, net of discount and issuance costs                                                 -                   52,075



     Proceeds from issuance of financing obligation, net of issuance costs                                                           -                   49,605



     Proceeds from insurance premium financing                                                                                   4,598                     3,909



     Repayment of debt and promissory notes                                                                                      (261)                  (5,057)



     Payment for Coupon Make-Whole Premium                                                                                     (4,530)



     Payments on insurance premium financing                                                                                   (1,853)                  (2,381)



     Payments on finance lease liabilities and financing obligation                                                            (2,564)                    (255)



     Net cash provided by financing activities                                                                                  47,591                   324,138



     Net decrease in cash and cash equivalents, including restricted cash and cash equivalents                               (211,349)                 (18,554)



     Cash and cash equivalents, including restricted cash and cash equivalents, beginning of period                            493,965                   313,909



     Cash and cash equivalents, including restricted cash and cash equivalents, end of period                                 $282,616                  $295,355





     
                
                  Cash flows from discontinued operations:



     Operating activities                                                                                               
     $          -                 $(4,964)



     Investing activities                                                                                                            -                  (1,804)



     Financing activities                                                                                                            -                    (572)



     Net cash used in discontinued operations                                                                           
     $          -                 $(7,340)



     
                Reconciliation of GAAP Financial Metrics to Non-GAAP


     (In thousands, except share and per share data)


     (Unaudited)





     
                
                  Reconciliation of Net Loss from continuing operations to EBITDA and Adjusted EBITDA




                                                                                                                Three Months Ended June 30,               Six Months Ended June 30,


                                                                                   2024                  2023                  2024                  2023


                                                                         
              (in thousands)



     Net loss from continuing operations                                    $(133,674)           $(140,010)           $(281,396)           $(285,261)



     Interest expense, net                                                       3,941                 8,749                 6,219                18,582



     Income tax expense                                                             92                                         92



     Depreciation and amortization                                              11,092                 5,524                21,688                11,762



     EBITDA                                                                  (118,549)            (125,737)            (253,397)            (254,917)



     Stock-based compensation                                                    7,950                25,709                16,736                50,257



     Loss on supplier deposits                                                                       17,717                                     17,717



     Gain on divestiture of affiliate                                                              (70,849)                                  (70,849)



     Loss on debt extinguishment                                                 1,529                20,362                 2,313                20,362



     Loss on disposal of assets                                                    470                                      3,158



     Equipment purchase cancellation                                                                                      15,613



     Revaluation of financial instruments                                      (2,972)                5,633               (2,147)                5,434



     Regulatory and legal matters (1)                                            2,176                 2,097                 4,297                 3,240



     Adjusted EBITDA                                                        $(109,396)           $(125,068)           $(213,427)           $(228,756)


     
     
     
     (1)
     
     Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with a short-seller article from September 2020, and investigations and litigation related thereto.



     
                
                  Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, basic and diluted




                                                                                                                                                                            Three Months Ended June 30,               Six Months Ended June 30,


                                                                                                                                                2024                   2023                   2024               2023


                                                                                                                                     
              (in thousands, except share and per share data)



     Net loss from continuing operations                                                                                                 $(133,674)            $(140,010)            $(281,396)        $(285,261)



     Stock-based compensation                                                                                                                 7,950                 25,709                 16,736             50,257



     Loss on supplier deposits                                                                                                                    -                17,717                                   17,717



     Gain on divestiture of affiliate                                                                                                             -              (70,849)                                (70,849)



     Loss on debt extinguishment                                                                                                              1,529                 20,362                  2,313             20,362



     Revaluation of financial instruments                                                                                                   (2,972)                 5,633                (2,147)             5,434



     Loss on disposal of assets                                                                                                                 470                                        3,158



     Equipment purchase cancellation                                                                                                              -                                      15,613



     Regulatory and legal matters (1)                                                                                                         2,176                  2,097                  4,297              3,240



     Non-GAAP net loss                                                                                                                   $(124,521)            $(139,341)            $(241,426)        $(259,100)





     Net loss from continuing operations per share, basic and diluted (2)                                                                   $(2.86)               $(5.93)               $(6.17)          $(13.59)



     Non-GAAP net loss per share, basic and diluted                                                                                         $(2.67)               $(5.90)               $(5.29)          $(12.35)





     Weighted average shares outstanding, basic and diluted (2)                                                                          46,699,945             23,623,094             45,614,635         20,987,679


     
     
                  
                    (1)
                  
                 Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with a short-seller article from September 2020, and investigations and litigation related thereto.



     
     (2) Shares issued and outstanding have been adjusted to reflect the one-for-thirty (1-for-30) reverse stock split that became effective on June 24, 2024.



     
                
                  Reconciliation of Cash flows to Adjusted Free Cash Flow




                                                                                                                             Three Months Ended June 30,               Six Months Ended June 30,


                                                                                                  2024                  2023                2024                  2023


                                                                                          
            (in thousands)



     Most comparable GAAP measure:



     Net cash used in operating activities                                                 $(134,553)           $(111,143)         $(250,156)           $(287,165)



     Net cash used in investing activities                                                   (13,724)              (5,010)            (8,784)             (55,527)



     Net cash provided by financing activities                                                 52,646               208,222              47,591               324,138





     Non-GAAP measure:



     Net cash used for operating activities                                                 (134,553)            (111,143)          (250,156)            (287,165)



     Purchases of property, plant and equipment                                              (13,724)             (37,202)           (30,182)             (87,719)



     Adjusted free cash flow                                                               $(148,277)           $(148,345)         $(280,338)           $(374,884)

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SOURCE Nikola Corporation