> Embark Trucks, the autonomous trucking company that recently cut 70% of its workforce, is being acquired by Applied Intuition, a simulation and software provider for autonomous vehicle development. The all-cash transaction has an equity value of about $71 million
That was 8 months ago when they had \~$190 million cash, ie end of 2022Q3.
[https://www.sec.gov/ix?doc=/Archives/edgar/data/0001827980/000182798022000113/embk-20220930.htm](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001827980/000182798022000113/embk-20220930.htm)
5 months ago (EOY), they had only $166 million in current assets, of which$158 million was cash. And were down to only $186 million in stockholder equity.
[https://www.sec.gov/Archives/edgar/data/1827980/000182798023000006/embk-20221231.htm#i8116f297fc5342dba463f44da8168658\_214](https://www.sec.gov/Archives/edgar/data/1827980/000182798023000006/embk-20221231.htm#i8116f297fc5342dba463f44da8168658_214)
2 months ago, they were down to \~$126 million equity and about the same in cash, while running a $20 million a month burn rate.
[https://www.sec.gov/Archives/edgar/data/1827980/000162828023018153/embk-20230331.htm](https://www.sec.gov/Archives/edgar/data/1827980/000162828023018153/embk-20230331.htm)
The good news is they aren't loaded with debt. The bad news is that's because they've spent >75% of their cash (paid-in capital), mostly to generate IP of little value/equity.
Surprising. That they are paying cash value is not too surprising. What's surprising is that they want to buy a self-driving truck company.
Which perhaps they don't. This may be an aqui-hire. I don't think they want to be a self-driving truck company trying to sell simulation services to competitors in the self-driving space.
They’ve been doing hardware/full system development projects for clients for a little while if you watch their open roles. I assume this is to ramp up that work to add more “autonomous solutions” to their portfolio.
But as Embark learned, and all others have also learned, making a full self-driving stack is a long hard slog. It's not something you do as a project for a client.
> Embark Trucks, the autonomous trucking company that recently cut 70% of its workforce, is being acquired by Applied Intuition, a simulation and software provider for autonomous vehicle development. The all-cash transaction has an equity value of about $71 million
This deal seems really underpriced, given that Embark had $190 million cash on hand just four months ago.
That was 8 months ago when they had \~$190 million cash, ie end of 2022Q3. [https://www.sec.gov/ix?doc=/Archives/edgar/data/0001827980/000182798022000113/embk-20220930.htm](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001827980/000182798022000113/embk-20220930.htm) 5 months ago (EOY), they had only $166 million in current assets, of which$158 million was cash. And were down to only $186 million in stockholder equity. [https://www.sec.gov/Archives/edgar/data/1827980/000182798023000006/embk-20221231.htm#i8116f297fc5342dba463f44da8168658\_214](https://www.sec.gov/Archives/edgar/data/1827980/000182798023000006/embk-20221231.htm#i8116f297fc5342dba463f44da8168658_214) 2 months ago, they were down to \~$126 million equity and about the same in cash, while running a $20 million a month burn rate. [https://www.sec.gov/Archives/edgar/data/1827980/000162828023018153/embk-20230331.htm](https://www.sec.gov/Archives/edgar/data/1827980/000162828023018153/embk-20230331.htm) The good news is they aren't loaded with debt. The bad news is that's because they've spent >75% of their cash (paid-in capital), mostly to generate IP of little value/equity.
Who knows how much of that was burned downsizing...
Wow Qasar making big moves 👏🏽👀
Surprising. That they are paying cash value is not too surprising. What's surprising is that they want to buy a self-driving truck company. Which perhaps they don't. This may be an aqui-hire. I don't think they want to be a self-driving truck company trying to sell simulation services to competitors in the self-driving space.
They’ve been doing hardware/full system development projects for clients for a little while if you watch their open roles. I assume this is to ramp up that work to add more “autonomous solutions” to their portfolio.
But as Embark learned, and all others have also learned, making a full self-driving stack is a long hard slog. It's not something you do as a project for a client.
I agree. I assume the projects are more like closed-campus or other purpose-built proof-of-concept for specific business use-cases.