TuSimple Faces Report Deadline as Tucson Site Is Up for Sale
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Self-driving truck developer TuSimple Holdings says it won’t be able to file its second-quarter 2023 financial report on time to meet a deadline imposed by the Nasdaq Stock Market.
But the company, which is trying to sell off its U.S. operations including a facility on Tucson’s south side, said in a regulatory filing Aug. 9 that it plans to meet a Sept. 30 deadline to catch up on filing delinquent financial reports to avoid delisting of its Nasdaq stock.
The Nasdaq notified San Diego-based TuSimple in May that it faced possible delisting for failing to file its financial reports in a timely manner.
TuSimple, which went through an executive management shakeup last fall and has since laid off most of its employees, including many of its 300 local workers, said it was unable to file the reports on time because it had switched to a new independent auditor.
After a hearing on June 22, a Nasdaq hearing panel gave the company until Sept. 30 to bring all its reports up to date, with undisclosed deadlines for each report, the company said.
The company finally filed its third-quarter 2022 financial report with the U.S. Securities and Exchange Commission on July 17, posting revenue of about $1.8 million and a net loss of $113 million for the quarter ended Sept. 30.
TuSimple said it had $871 million in cash and equivalents at the end of third-quarter 2022, down from about $1.3 billion at the end of 2021. The third-quarter cash figure doesn't include about $198,000 TuSimple has invested in short-term investments to capture additional yields, the company said.
Last December, about a year after a major expansion at its research center and truck terminal on East Old Vail Road, TuSimple said it had decided to drop its “unprofitable” truck routes and focus on providing industry partners with its self-driving truck technology.
Then in June, TuSimple said it had engaged an investment banking firm as a financial adviser “to explore possible transactions for the U.S.-based portion of its business.”
The company had been running paid test loads on autonomous trucks with human monitors aboard along Interstate 10 since 2017, and in 2021 and 2022 the company test-drove more than 500 miles of completely autonomous, “driver-out” test runs between Tucson and Phoenix.
Meanwhile, the city of Tucson is trying to claw back more than $100,000 in construction sales tax breaks TuSimple got as incentive for constructing a new building and hiring more than 100 people as part of its short-lived expansion.
Shares in TuSimple, which raised more than $1 billion in an initial public offering of stock in 2021, have traded in the $2 range recently and in a range of 75 cents to $9.83 in the past year.
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