Unfortunately, the company needs a huge infusion of cash even faster than its cars if it wants to stay on the road beyond the end of the year. In a new Securities and Exchange Commission filing, Saleen admits that its financial situation is dire, and it has just $7,261 in cash sitting in the bank as of September 30.
That lack of liquidity is just the very tip of the iceberg. According to Jalopnik, poring over the SEC documents reveals that Saleen Automotive owes $5,634,841, which includes about $500,000 in payroll taxes. Over $1 million of those bills are at least 90 days overdue, and the business expects to default on $398,176 owed to the bank unless an extension is granted. The money just isn't coming in to pay for all of this, either. Revenue is down by half, and Saleen is posting quarterly losses in the millions.
With just $668,629 in assets, the numbers don't balance out. Saleen is hoping to find a buyer to inject the millions needed to save it from going under but admits in the SEC filing: "These factors raise substantial doubt about the company's ability to continue as a going concern."
Steve Saleen re-acquired the rights to the Saleen name in 2012 after a high-profile court battle. Publicly, the company appeared to be doing at least somewhat well, continuing to introduce the muscle cars for which it is known, as well as expanding its offerings into the world of electric cars with an eye toward the future. Clearly, based on this SEC filing, however, things are looking dire for the well-known outfit.
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