Adam Kroll will take over as chief financial officer of electric vehicle company Lordstown Motors on October 25.
Kroll replaces interim chief financial officer Rebecca Roof, who will remain with the company in a transitional role through the end of the year.
Roof was named interim CFO in June after the company’s then CFO Julio Rodriguez and CEO Steve Burns stepped down following an investigation that found Lordstown Motors’ disclosures about truck preorders for the all-electric pickup the Endurance were inaccurate. Lordstown Motors appointed Daniel Ninivaggi as the company’s chief executive officer in August.
“On behalf of our board of directors and the Lordstown Motors team, I’d like to thank Becky Roof for her enormous contributions over the past several months as our interim chief financial officer,” said CEO Ninivaggi. “Becky has not only strengthened our finance function but also has been instrumental in driving positive operational changes.”
Kroll has served as the chief administrative officer of hydrogen-powered commercial vehicle supplier Hyzon Motors since April. He was previously interim chief financial officer for UPG Enterprises and senior vice president of finance for PSAV Holdings. Earlier in his career, he was an investment banker at JP Morgan focused on the automotive industry.
“I am very pleased to welcome Adam to our leadership team,” said Ninivaggi. “His deep understanding of the automotive industry and experience in financial operations and strategy will have an immediate impact as we focus on bringing our Endurance pickup truck to market.”
In an amended regulatory filing in June, Lordstown Motors issued a going concern warning, stating that its “current level of cash and cash equivalents are not sufficient to fund commercial-scale production and the launch of sale” of its vehicles.
On September 30, the company reported a cash balance of $210 to $240 million, down from the $225 to $275 million it expected to have at the end of its fiscal third quarter.
That cash included $20 million of proceeds from the issuance of common stock in August and September. However, it excluded proceeds from Foxconn’s purchase of $50 million of the company’s common stock through a private investment in public equity (PIPE) on September 30.
In its 2021 financial projections provided on August 11 (second-quarter earnings report), the company said it expected capital expenditures of between $375 and $400 million, related primarily to prepayments for hard tool purchases; operating expenses of between $95 and $105 million in selling, general and administrative (SG&A) costs; and between $310 and $320 million in research and development (R&D) costs.
The company reported a second-quarter net loss of $108 million.
Lordstown shares were trading at $5.17 at 1:25 p.m. Eastern daylight time on Wednesday. Morgan Stanley has a price target on the stock of $2.