Failed Corporate Welfare Flashback: Company Warned, ‘We Have Never Been Profitable’
A123 Systems was an electric car battery company that received millions in taxpayer-funded subsidies from the state and federal government before filing for bankruptcy in 2012.
A123 Systems wrote this in its 2011 annual report:
"Risks Related to Our Business
We have had a history of losses, and we may be unable to achieve or sustain profitability.
We have never been profitable. We experienced net losses of $85.8 million for 2009, $152.6 million for 2010 and $257.7 million for 2011. We expect we will continue to incur net losses in the near term. We expect to incur significant future expenses as we develop and expand our business and our manufacturing capacity. These increased expenditures will make it harder for us to achieve and maintain future profitability. We may incur significant losses in the future for a number of reasons, including the other risks described in this section, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown events. Accordingly, we may not be able to achieve or maintain profitability.”
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