Based on the provided financial report, the title of the article is: "Faraday Future Intelligent Electric Inc. (FFIE) Annual Report (Form 10-K) for the fiscal year ended December 31, 2024

Company Overview and Global Strategy

Faraday Future (FF) is a technology-driven electric vehicle company that has implemented a dual-home market strategy, integrating U.S.-based innovation and vehicle development with China’s supply chain and production capabilities. The company has also begun implementing a “third pole” strategy with an operational facility in the UAE, complementing its U.S. and China market approach.

Technology and Innovation

FF has designed and developed a breakthrough mobility platform - its proprietary VPA (Variable Platform Architecture) - which enables scalable vehicle development across multiple segments, including the new FX Series. The company’s propulsion system provides a competitive edge in acceleration and range, enabled by an industry-leading inverter design and integration with its AI-powered user experience. FF’s advanced I.A.I technology offers high-performance computing, high-speed internet connectivity, OTA updating, an open ecosystem for third-party application integration, and an autonomous driving-ready system.

Since inception, FF has developed a portfolio of intellectual property, established its supply chain, and assembled a global team of automotive and technology experts. As of December 31, 2024, the company has been granted approximately 660 patents globally.

Product and Launches

FF believes the FF 91 Futurist is the first ultra-luxury electric vehicle to offer a highly-personalized, fully-connected user experience for driver and passengers. The company started production on the first FF 91 Futurist and delivered the first FF 91 2.0 Futurist Alliance in 2023. FF’s planned B2C passenger vehicle pipeline includes the FF 91 series, plus the new FX Series (FX 5, FX 6, and FX Super One).

Manufacturing and Distribution

The FF 91 Series is currently being manufactured in FF ieFactory California, and certain models of the FX Series are planned to be manufactured in the same facility. All of FF’s vehicles are expected to be available for sale in the U.S., China, and the Middle East, with potential expansion to European markets.

Recent Developments

From January 1, 2024, through the filing date, FF achieved key operational and financing milestones, including:

• Updating its Master Plan 1.1 to strategically position the company for growth in 2024
• Establishing a Middle Eastern sales entity in Dubai, U.A.E.
• Unveiling its Automotive Bridge Strategy, reintroducing a two-brand approach to target both luxury and affordable EV markets
• Launching its second brand, Faraday X (“FX”), focused on producing affordable electric vehicles
• Entering into a co-investment agreement with Master Investment Group to establish a future regional headquarters in Ras Al Khaimah, UAE
• Signing licensing and development agreements with various partners to expand its ecosystem and product offerings

On the financing front, FF entered into several notes payable agreements, including the Junior Secured SPA Notes and the 2024 Unsecured SPA Notes, to support its operations and capital expenditures. The company also took steps to regain compliance with Nasdaq’s listing requirements and made several senior leadership changes to advance its dual-brand strategy.

Segment Information

FF operates in one operating segment and one reportable segment. The company’s Global CEO and Chief Product and User Ecosystem Officer, acting jointly as co-Chief Operating Decision Makers (CODMs), regularly evaluate the company’s financial performance using consolidated financial information at the total-company level. The CODMs focus primarily on the company’s consolidated loss from operations, overall cash flows, liquidity, and strategic initiatives.

Emerging Growth Company Status

FF is an “emerging growth company” as defined in the JOBS Act and has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. This may make it difficult or impossible to compare the company’s financial results with those of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions.

Key Factors Affecting Operating Results

FF’s performance and future success depend on several factors, including its ability to:

• Manage production and operations, including R&D expenses, capital expenditures, and operating costs
• Generate revenue from automotive sales and leasing, and control related costs
• Secure additional capital through various funding and financing alternatives

The company has incurred cumulative losses from operations, negative cash flows from operating activities, and has an accumulated deficit of $4,314.3 million as of December 31, 2024. FF’s ability to continue as a going concern is subject to substantial doubt, and the company may be unable to satisfy the closing conditions under its existing financing commitments or obtain additional financing in a timely manner, on acceptable terms, or at all.

Revenue and Cost of Revenue

FF began production and deliveries of the FF 91 Futurist in 2023 and has sold six and leased ten vehicles as of December 31, 2024. Automotive sales revenue includes revenue from vehicle deliveries, home chargers, charger installation, roadside assistance, OTA software updates, internet connectivity, and destination fees. Automotive leasing revenue includes revenue from the company’s vehicle operating leasing and sales-type leasing programs.

Cost of automotive sales revenue includes direct and indirect materials, labor, manufacturing overhead, shipping, and warranty expenses. Cost of automotive leasing revenue includes the depreciation of operating lease vehicles, cost of goods sold associated with direct sales-type leases, and warranty expense related to leased vehicles.

Operating Expenses

FF’s operating expenses consist of:

• Research and development (R&D) focused on the design and development of electric vehicles
• Sales and marketing activities related to introducing the company’s brand, vehicles, and prototypes to the market
• General and administrative expenses, including personnel-related costs, legal expenses, and corporate overhead

The company expects R&D expenses to decrease in the near future as it completes R&D activities related to the FF 91, offset by increases in R&D expenses related to the FX Series vehicles. Sales and marketing expenses are expected to continue increasing as FF brings its electric vehicles to market and seeks to generate additional sales. General and administrative expenses are also expected to increase as the company continues to grow its business.

Non-operating Expenses

FF’s non-operating expenses include:

• Changes in fair value of notes payable, warrant liabilities, and derivative call options
• Losses on settlement of notes payable
• Interest expense on outstanding notes payable and related party notes payable
• Other expenses, such as foreign currency transaction gains and losses

These non-operating expenses have had a significant impact on the company’s financial results, and their fluctuations are largely driven by changes in the fair value of its financial instruments and the settlement of its debt obligations.

Liquidity and Capital Resources

As of December 31, 2024, FF had $7.1 million in cash and cash equivalents, which was held for working capital and general corporate purposes. The company has also accessed various sources of additional capital, including the Standby Equity Purchase Agreement (SEPA) and the SPA Commitments (a portfolio of notes payable agreements).

However, FF’s recurring operating losses, continuing negative cash flows from operations, and an accumulated deficit of $4,314.3 million as of December 31, 2024, raise substantial doubt about the company’s ability to continue as a going concern. FF may be unable to satisfy the closing conditions under its existing financing commitments or obtain additional financing in a timely manner, on acceptable terms, or at all.

The company continues to explore various funding and financing alternatives to fund its ongoing operations and ramp up production. If FF’s ongoing capital raising efforts are unsuccessful or significantly delayed, or if the company experiences prolonged material adverse trends in its business, production will be delayed or decreased, and actual use of cash, production volume, and revenue for 2025 will vary from previously disclosed forecasts, and such variances may be material.

Critical Accounting Estimates

FF’s critical accounting estimates include:

• Impairment of long-lived assets: The company assesses its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
• Recognition and disclosure of contingent liabilities, including litigation reserves: FF accrues for potential financial exposure related to ongoing legal matters that are deemed both probable of loss and reasonably estimable.
• Fair value measurements and fair value of related party notes payable and notes payable: The company elects the fair value option for certain related party notes payable and notes payable with embedded derivatives, using a binomial lattice model and discounted cash flow methodology to value these instruments.
• Fair value of warrants: FF measures certain warrants at fair value, mainly related to the Junior Secured SPA Notes and the 2024 Unsecured SPA Notes, using a Monte Carlo simulation model.
• Fair value of incremental warrants (derivative call options): The company estimates the fair value of the incremental warrants issued to the Junior Secured SPA Investors and the 2024 Unsecured SPA Investors using a Monte Carlo simulation model.

These critical accounting estimates involve significant judgments and assumptions, and actual results that differ from the company’s assumptions could have a material impact on its financial statements.

Conclusion

Faraday Future is a technology-driven electric vehicle company that has made significant progress in developing its proprietary technology, launching its flagship FF 91 Futurist, and expanding its product pipeline with the FX Series. However, the company continues to face substantial challenges, including its ability to secure additional financing, manage production and operations, and control costs.

FF’s recurring operating losses, negative cash flows, and accumulated deficit raise substantial doubt about its ability to continue as a going concern. The company’s success will depend on its ability to navigate these challenges, execute its strategic plans, and generate sufficient revenue and cash flow to sustain its operations. Investors should carefully consider the risks and uncertainties outlined in the report when evaluating the company’s long-term prospects.