SoftBank-backed View Inc. has faced regulatory challenges for over a year and a half, culminating in a recent settlement with the Securities and Exchange Commission (SEC). Despite this settlement, the company continues to grapple with financial difficulties and operational uncertainties, marking a stark contrast from its previous status as an investor darling.
Regulatory Troubles
View Inc. recently settled charges from the SEC concerning its failure to disclose $28 million in projected costs related to the repair and replacement of defective “smart glass” windows covered under warranty. While the SEC opted not to impose a fine, citing View’s self-reporting of the liability understatement and cooperation with the investigation, the agency found the company in violation of several securities laws.
The former CFO of View, Vidul Prakash, is facing a lawsuit from the SEC over allegations of improper bookkeeping practices, among other issues. Despite these regulatory setbacks, View has not publicly commented on the matter.
Financial Struggles
Despite raising $200 million in convertible notes last year, View Inc. finds itself facing a cash crunch, unable to meet forecasted operating costs through the third quarter of 2023. The company is actively seeking additional sources of capital and engaging in discussions with potential investors to address its liquidity challenges.
CEO’s Efforts
CEO Rao Mulpuri has previously secured funding for View during cash-strapped periods, demonstrating a knack for capital procurement. However, the company’s shares have consistently traded below $1 for the past year, threatening delisting from the New York Stock Exchange (NYSE). To regain compliance, View requires shareholder approval for a reverse stock split by July.
Operational Strains
Insiders reveal that View’s troubles extend beyond its recent public setbacks, citing years of cash burn and product failures. Despite its SPAC debut in March 2021, the company faced persistent operational challenges, with former employees expressing skepticism about its ability to sustain itself post-public listing.
Outlook
While View Inc. navigates its current financial and regulatory hurdles, the company’s future remains uncertain. With ongoing efforts to secure additional funding and address compliance issues, View seeks to overcome its current predicament and regain investor confidence amidst a turbulent period in its corporate journey.
