In the list of ways to hurt a startup’s road to profitability and survivability, Canoo is providing a stellar example of how to do it.

According to a regulatory filing, EV startup Canoo paid Aquila Family Ventures (AFV)—an entity controlled by CEO Tony Aquila—$1.7 million in 2023 and $1.3 million in 2022. The filing makes clear the fees result from an agreement for AFV to provide a private jet for Aquila:

He is reimbursed for business expenses, including air travel expenses for either, at our option, first class airfare or the business use of his private jet (at a fixed rate per hour, as set forth in the Aquila Agreement), executive housing on a tax grossed-up basis and business expenses associated with the office of the Executive Chair.

In addition to the jet, Canoo also pays AFV staff for services provided:

In addition, certain AFV staff provided the Company with shared services support in its Justin, Texas corporate office facility. For the years ended December 31, 2023 and 2022, the Company incurred approximately $1.7 million and $1.1 million, respectively, for these services.

While it is not uncommon for CEOs to have access to a private jet on the company dime, what makes this case so interesting is Canoo’s revenue.

According to the filing, the company only had revenue of $866,000 in 2023, meaning that Aquila’s private jet is costing the company double the amount of money it is making. That, of course, does not even begin to take in the additional services AFV staff are providing, which doubles the cost of Aquila’s jet.

Ultimately, the filing makes clear that Canoo’s continued losses and operating expenses raise concerns about its future:

The Company expects to continue to incur net losses and negative cash flows from operating activities in accordance with its operating plan and expects that both capital and operating expenditures will increase significantly in connection with its ongoing activities. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern.

Let Canoo be a lesson to startups: If your CEO having a private jet is going to cost double your revenue…let him fly coach.