| | | | | ii | | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 7 | | | |
| | | | | 34 | | | |
| | | | | 35 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 39 | | | |
| | | | | 54 | | | |
| | | | | 83 | | | |
| | | | | 101 | | | |
| | | | | 110 | | | |
| | | | | 119 | | | |
| | | | | 128 | | | |
| | | | | 130 | | | |
| | | | | 136 | | | |
| | | | | 138 | | | |
| | | | | 144 | | | |
| | | | | 153 | | | |
| | | | | 153 | | | |
| | | | | 153 | | | |
| | | | | 154 | | | |
| | | | | F-1 | | |
| | |
Nine Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2019 |
| |
Year Ended
December 31, 2019 |
| |
Period from
October 22, 2018 (inception) to December 31, 2018 |
| ||||||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from operations
|
| | | $ | (1,199,222) | | | | | $ | (818,222) | | | | | $ | (1,093,066) | | | | | $ | (2,565) | | |
Interest income
|
| | | | 1,111 | | | | | | 22,725 | | | | | | 12,602 | | | | | | 10 | | |
Gain on marketable securities (net),
and dividends held in Trust Account |
| | | | — | | | | | | 3,299,930 | | | | | | 3,565,051 | | | | | | — | | |
Net income (loss)
|
| | | | 125,935 | | | | | | 1,835,919 | | | | | | 2,086,083 | | | | | | (2,555) | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.05 | | | | | $ | 0.11 | | | | | $ | 0.13 | | | | | $ | — | | |
Basic and diluted net loss per share,
Class B |
| | | $ | (0.18) | | | | | $ | (0.11) | | | | | $ | (0.15) | | | | | $ | 0.00 | | |
Balance Sheet Data
|
| |
As of
September 30, 2020 |
| |
As of
December 31, 2019 |
| ||||||
Cash
|
| | | $ | 315,502 | | | | | $ | 1,175,207 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 234,179,516 | | | | | | 233,232,730 | | |
Total assets
|
| | | | 234,639,206 | | | | | | 234,584,340 | | |
Total liabilities
|
| | | | 8,900,550 | | | | | | 8,971,619 | | |
Total stockholders’ equity
|
| | | | 5,000,006 | | | | | | 5,000,001 | | |
| | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
Statement of Operations Data:
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | |||||||||
Total revenue
|
| | | $ | 4,326 | | | | | $ | 5,357 | | | | | $ | 8,488 | | | | | $ | 3,064 | | |
Total cost of revenues
|
| | | | 7,851 | | | | | | 10,675 | | | | | | 17,237 | | | | | | 12,795 | | |
Gross loss
|
| | | | (3,525) | | | | | | (5,318) | | | | | | (8,749) | | | | | | (9,731) | | |
Total operating expenses
|
| | | | 15,516 | | | | | | 20,902 | | | | | | 29,718 | | | | | | 38,214 | | |
Operating loss
|
| | | | (19,041) | | | | | | (26,220) | | | | | | (38,467) | | | | | | (47,945) | | |
Interest expense
|
| | | | (783) | | | | | | (10,848) | | | | | | (10,954) | | | | | | (8,802) | | |
Interest income
|
| | | | — | | | | | | 266 | | | | | | 269 | | | | | | — | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (9,181) | | | | | | (9,181) | | | | | | (2,580) | | |
Other expense
|
| | | | (1,614) | | | | | | — | | | | | | — | | | | | | — | | |
Net loss before income taxes and equity (loss) in affiliates
|
| | | | (21,438) | | | | | | (45,983) | | | | | | (58,333) | | | | | | (59,327) | | |
Equity (loss) in affiliates
|
| | | | (1,272) | | | | | | (669) | | | | | | (1,520) | | | | | | — | | |
Income tax expense
|
| | | | — | | | | | | (1) | | | | | | (1) | | | | | | (1) | | |
Net loss
|
| | | $ | (22,710) | | | | | $ | (46,653) | | | | | $ | (59,854) | | | | | $ | (59,328) | | |
|
| | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| | | | | | | ||||||||||||||||||
Statement of Cash Flow Data:
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| | | ||||||||||||||||
| | |
(Unaudited)
|
| | | | | | | | | | | | | | | |||||||||||||
Net cash provided by (used for): | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Operating activities
|
| | | $ | (14,126) | | | | | $ | (37,671) | | | | | $ | (46,964) | | | | | $ | (42,337) | | | | | ||||
Investing activities
|
| | | $ | (561) | | | | | $ | (843) | | | | | $ | (1,171) | | | | | $ | (3,049) | | | | | ||||
Financing activities
|
| | | $ | 14,504 | | | | | $ | 42,295 | | | | | $ | 48,553 | | | | | $ | 41,027 | | | | |
| | |
As of September 30,
2020 (Unaudited) |
| |
As of December 31,
|
| ||||||||||||
Balance Sheet Data:
|
| |
2019
|
| |
2018
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 246 | | | | | $ | 429 | | | | | $ | 11 | | |
Restricted cash
|
| | | $ | 1,500 | | | | | $ | 1,500 | | | | | $ | 1,500 | | |
Total assets
|
| | | $ | 37,518 | | | | | $ | 32,578 | | | | | $ | 22,443 | | |
Total liabilities
|
| | | $ | 51,829 | | | | | $ | 30,005 | | | | | $ | 58,753 | | |
Total stockholders’ deficit
|
| | | $ | (121,891) | | | | | $ | (101,007) | | | | | $ | (47,725) | | |
| | |
Nine Months Ended September 30,
|
| |
Year Ended December 31,
|
| | | | | | | ||||||||||||||||||
Other Financial Data:
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| | | ||||||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| | | ||||||||||||||||||||||
EBITDA(1) | | | | $ | (20,523) | | | | | $ | (34,683) | | | | | $ | (47,297) | | | | | $ | (48,952) | | | | | ||||
Adjusted EBITDA(1)
|
| | | $ | (18,125) | | | | | $ | (24,553) | | | | | $ | (31,964) | | | | | $ | (43,424) | | | | |
| | |
RMG
(Historical) |
| |
Legacy Romeo
(Historical) |
| |
Pro Forma
Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 316 | | | | | $ | 246 | | | | | $ | 303,381 | | | | |
|
(A)
|
| | | | $ | 303,943 | | |
Accounts receivable, net of allowance for doubtful accounts
|
| | | | — | | | | | | 996 | | | | | | — | | | | | | | | | | | | 996 | | |
Inventories, net
|
| | | | — | | | | | | 8,572 | | | | | | — | | | | | | | | | | | | 8,572 | | |
Insurance receivable
|
| | | | — | | | | | | 6,000 | | | | | | — | | | | | | | | | | | | 6,000 | | |
Deferred costs
|
| | | | — | | | | | | 2,357 | | | | | | — | | | | | | | | | | | | 2,357 | | |
Prepaid expenses
|
| | | | 144 | | | | | | 1,834 | | | | | | — | | | | | | | | | | | | 1,978 | | |
Total current assets
|
| | | | 460 | | | | | | 20,005 | | | | | | 303,381 | | | | | | | | | | | | 323,846 | | |
Restricted cash
|
| | | | — | | | | | | 1,500 | | | | | | — | | | | | | | | | | | | 1,500 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 234,179 | | | | | | — | | | | | | (234,179) | | | | |
|
(C)
|
| | | | | — | | |
Property, plant, and equipment, net
|
| | | | — | | | | | | 5,316 | | | | | | — | | | | | | | | | | | | 5,316 | | |
Investment in unconsolidated joint venture
|
| | | | — | | | | | | 1,208 | | | | | | — | | | | | | | | | | | | 1,208 | | |
Heritage battery recycling contribution
|
| | | | — | | | | | | — | | | | | | 35,000 | | | | |
|
(D)
|
| | | | | 35,000 | | |
Operating lease right-of-use assets
|
| | | | — | | | | | | 5,531 | | | | | | — | | | | | | | | | | | | 5,531 | | |
Deferred Offering Costs
|
| | | | — | | | | | | 2,804 | | | | | | (2,804) | | | | |
|
(E)
|
| | | | | — | | |
Other noncurrent assets
|
| | | | — | | | | | | 1,154 | | | | | | — | | | | | | | | | | | | 1,154 | | |
Total Assets
|
| | | | 234,639 | | | | | | 37,518 | | | | | | 101,398 | | | | | | | | | | | | 373,555 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 6 | | | | | | 10,348 | | | | | | (2,149) | | | | |
|
(F)
|
| | | | | 8,205 | | |
Accrued expenses
|
| | | | 202 | | | | | | 3,923 | | | | | | (815) | | | | |
|
(F)
|
| | | | | 3,310 | | |
Contract liabilities
|
| | | | — | | | | | | 3,104 | | | | | | — | | | | | | | | | | | | 3,104 | | |
Franchise tax payable
|
| | | | 150 | | | | | | — | | | | | | — | | | | | | | | | | | | 150 | | |
Income tax payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Current maturities of long-term debt
|
| | | | — | | | | | | 8,437 | | | | | | (6,700) | | | | |
|
(G)
|
| | | | | 1,737 | | |
Current maturities of long-term debt to related parties
|
| | | | — | | | | | | 2,850 | | | | | | (2,850) | | | | |
|
(G)
|
| | | | | — | | |
Operating lease liabilities — current
|
| | | | — | | | | | | 853 | | | | | | — | | | | | | | | | | | | 853 | | |
Legal settlement payable
|
| | | | — | | | | | | 6,000 | | | | | | — | | | | | | | | | | | | 6,000 | | |
Accrued interest
|
| | | | — | | | | | | 407 | | | | | | (407) | | | | |
|
(G)
|
| | | | | — | | |
Other current related party liability
|
| | | | — | | | | | | 1,614 | | | | | | (1,614) | | | | |
|
(K)
|
| | | | | — | | |
Other current liabilities
|
| | | | — | | | | | | 314 | | | | | | — | | | | | | | | | | | | 314 | | |
Total current liabilities
|
| | | | 358 | | | | | | 37,850 | | | | | | (14,535) | | | | | | | | | | | | 23,673 | | |
Deferred legal fees
|
| | | | 450 | | | | | | — | | | | | | (450) | | | | |
|
(F)
|
| | | | | — | | |
Deferred underwriting commissions
|
| | | | 8,050 | | | | | | — | | | | | | (8,050) | | | | |
|
(F)
|
| | | | | — | | |
Note payable
|
| | | | 42 | | | | | | — | | | | | | — | | | | | | | | | | | | 42 | | |
| | |
RMG
(Historical) |
| |
Legacy Romeo
(Historical) |
| |
Pro Forma
Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| |||||||||||||||
Long-term debt — net of current portion
|
| | | | — | | | | | | 8,712 | | | | | | (7,149) | | | | |
|
(L)
|
| | | | | 1,563 | | |
Long-term accrued interest
|
| | | | — | | | | | | 429 | | | | | | (429) | | | | |
|
(L)
|
| | | | | — | | |
Operating lease liabilities — noncurrent
|
| | | | — | | | | | | 4,782 | | | | | | — | | | | | | | | | | | | 4,782 | | |
Other noncurrent liabilities
|
| | | | — | | | | | | 56 | | | | | | — | | | | | | | | | | | | 56 | | |
Total liabilities
|
| | | | 8,900 | | | | | | 51,829 | | | | | | (30,613) | | | | | | | | | | | | 30,116 | | |
Preferred stock (R) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Series seed preferred stock
|
| | | | — | | | | | | 7,369 | | | | | | (7,369) | | | | |
|
(M)
|
| | | | | — | | |
Series A-1 preferred stock
|
| | | | — | | | | | | 49,762 | | | | | | (49,762) | | | | |
|
(M)
|
| | | | | — | | |
Series A-2 preferred stock
|
| | | | — | | | | | | 19,818 | | | | | | (19,818) | | | | |
|
(M)
|
| | | | | — | | |
Series A-3 preferred stock
|
| | | | — | | | | | | 8,698 | | | | | | (8,698) | | | | |
|
(M)
|
| | | | | — | | |
Series A-4 preferred stock
|
| | | | — | | | | | | 17,933 | | | | | | (17,933) | | | | |
|
(M)
|
| | | | | — | | |
Series A-5 preferred stock
|
| | | | — | | | | | | 4,000 | | | | | | (4,000) | | | | |
|
(M)
|
| | | | | — | | |
Total preferred stock
|
| | | | — | | | | | | 107,580 | | | | | | (107,580) | | | | | | | | | | | | — | | |
Class A common shares subject to possible redemption (R)
|
| | | | 220,739 | | | | | | — | | | | | | (220,739) | | | | |
|
(N)
|
| | | | | — | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RMG Class A Common Stock (R)
|
| | | | — | | | | | | — | | | | | | 13 | | | | |
|
(O)
|
| | | | | 13 | | |
RMG Class B Common Stock (R)
|
| | | | 1 | | | | | | — | | | | | | (1) | | | | |
|
(O)
|
| | | | | — | | |
Legacy Romeo Class A common stock (R)
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
(O)
|
| | | | | — | | |
Legacy Romeo Class B common stock (R)
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
(O)
|
| | | | | — | | |
Additional paid in capital
|
| | | | 7,327 | | | | | | 79,818 | | | | | | 457,044 | | | | |
|
(O)
|
| | | | | 544,189 | | |
Notes receivable from stockholders
|
| | | | — | | | | | | (9,175) | | | | | | 9,123 | | | | |
|
(P)
|
| | | | | (52) | | |
Accumulated deficit
|
| | | | (2,328) | | | | | | (192,536) | | | | | | (5,847) | | | | |
|
(Q)
|
| | | | | (200,711) | | |
Total Stockholders’ equity (deficit)
|
| | | | 5,000 | | | | | | (121,891) | | | | | | 460,330 | | | | | | | | | | | | 343,439 | | |
Total Liabilities, Preferred stock and Stockholders’
equity (deficit) |
| | | $ | 234,639 | | | | | $ | 37,518 | | | | | $ | 101,398 | | | | | | | | | | | $ | 373,555 | | |
|
| | |
RMG
(Historical) |
| |
Legacy
Romeo (Historical) |
| |
Pro Forma
Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| |
Ref
|
| ||||||||||||||||||
Total revenue
|
| | | $ | — | | | | | $ | 4,326 | | | | | $ | — | | | | | | | | | | | $ | 4.326 | | | | | | | | |
Total costs of sales
|
| | | | — | | | | | | 7,851 | | | | | | — | | | | | | | | | | | | 7,851 | | | | | | | | |
Gross loss
|
| | | | — | | | | | | (3,525) | | | | | | — | | | | | | | | | | | | (3,525) | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | — | | | | | | 5,213 | | | | | | — | | | | | | | | | | | | 5,213 | | | | | | | | |
Selling, general, and administrative
|
| | | | 1,049 | | | | | | 10,303 | | | | | | (110) | | | | |
|
(a)
|
| | | | | 11,242 | | | | | | | | |
Franchise tax expense
|
| | | | 150 | | | | | | — | | | | | | — | | | | | | | | | | | | 150 | | | | | | | | |
Legal settlement
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Total operating expenses
|
| | | | 1,199 | | | | | | 15,516 | | | | | | (110) | | | | | | | | | | | | 16,605 | | | | | | | | |
Operating loss
|
| | | | (1,199) | | | | | | (19,041) | | | | | | 110 | | | | | | | | | | | | (20,130) | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | | | | | | | 1 | | | | | | | | |
Interest earned on restricted cash equivalents held in Trust Account
|
| | | | 1,153 | | | | | | — | | | | | | (1,153) | | | | |
|
(b)
|
| | | | | — | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (783) | | | | | | 744 | | | | |
|
(c)
|
| | | | | (39) | | | | | | | | |
Other expense
|
| | | | — | | | | | | (1,614) | | | | | | 1,614 | | | | |
|
(d)
|
| | | | | — | | | | | | | | |
Total other income (expense)
|
| | | | 1,154 | | | | | | (2,397) | | | | | | 1,205 | | | | | | | | | | | | (38) | | | | | | | | |
Net loss before income taxes and equity (loss) in affiliates
|
| | | | (45) | | | | | | (21,438) | | | | | | 1,315 | | | | | | | | | | | | (20,168) | | | | | | | | |
Equity (loss) in affiliates
|
| | | | — | | | | | | (1,272) | | | | | | — | | | | | | | | | | | | (1,272) | | | | | | | | |
Income tax (expense) benefit
|
| | | | 171 | | | | | | — | | | | | | (171) | | | | |
|
(e)
|
| | | | | — | | | | | | | | |
Net income (loss)
|
| | | $ | 126 | | | | | $ | (22,710) | | | | | $ | 1,144 | | | | | | | | | | | $ | (21,440) | | | | | | | | |
Weighted average number of shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 125,550,556 | | | | |
|
(f)
|
| |
Basic and diluted net loss per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.17) | | | | |
|
(f)
|
| |
| | |
RMG
(Historical) |
| |
Legacy
Romeo (Historical) |
| |
Pro Forma
Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| |
Ref
|
| ||||||||||||||||||
Total revenue
|
| | | $ | — | | | | | $ | 8,488 | | | | | $ | — | | | | | | | | | | | $ | 8,488 | | | | | | | | |
Total costs of sales
|
| | | | — | | | | | | 17,237 | | | | | | — | | | | | | | | | | | | 17,237 | | | | | | | | |
Gross loss
|
| | | | — | | | | | | (8,749) | | | | | | — | | | | | | | | | | | | (8,749) | | | | | | | | |
Operating expenses
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | — | | | | | | 11,242 | | | | |
|
—
|
| | | | | | | | | | | 11,242 | | | | | | | | |
Selling, general, and administrative
|
| | | | 893 | | | | | | 13,890 | | | | | | — | | | | | | | | | | | | 14,783 | | | | | | | | |
Franchise tax expense
|
| | | | 200 | | | | | | — | | | | |
|
—
|
| | | | | | | | | | | 200 | | | | | | | | |
Legal settlement expense
|
| | | | — | | | | | | 4,586 | | | | | | — | | | | | | | | | | | | 4,586 | | | | | | | | |
Total operating expenses
|
| | | | 1,093 | | | | | | 29,718 | | | | | | — | | | | | | | | | | | | 30,811 | | | | | | | | |
Operating loss
|
| | | | (1,093) | | | | | | (38,467) | | | | | | — | | | | | | | | | | | | (39,560) | | | | | | | | |
Other income (expense)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 12 | | | | | | 269 | | | | | | — | | | | | | | | | | | | 281 | | | | | | | | |
Interest earned on restricted cash equivalents held in Trust Account
|
| | | | 399 | | | | | | — | | | | | | (399) | | | | |
|
(aa)
|
| | | | | — | | | | | | | | |
Gain on marketable securities (net)
and dividends held in Trust Account |
| | | | 3,565 | | | | | | — | | | | | | (3,565) | | | | |
|
(bb)
|
| | | | | — | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (10,954) | | | | | | 92 | | | | |
|
(cc)
|
| | | | | (10,862) | | | | | | | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (9,181) | | | | | | — | | | | | | | | | | | | (9,181) | | | | | | | | |
Total other income (expense)
|
| | | | 3,976 | | | | | | (19,866) | | | | | | (3,872) | | | | | | | | | | | | (19,762) | | | | | | | | |
Net loss before income taxes and equity (loss) in affiliates
|
| | | | 2,883 | | | | | | (58,333) | | | | | | (3,872) | | | | | | | | | | | | (59,322) | | | | | | | | |
Equity (loss) in affiliates
|
| | | | — | | | | | | (1,520) | | | | | | — | | | | | | | | | | | | (1,520) | | | | | | | | |
Income tax (expense) benefit
|
| | | | (797) | | | | | | (1) | | | | | | 797 | | | | |
|
(dd)
|
| | | | | (1) | | | | | | | | |
Net income (loss)
|
| | | $ | 2,086 | | | | | $ | (59,854) | | | | | $ | (3,075) | | | | | | | | | | | $ | (60,843) | | | | | | | | |
Weighted average number of shares outstanding
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 125,485,541 | | | | |
|
(ee)
|
| |
Basic and diluted net loss per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.48) | | | | |
|
(ee)
|
| |
| | |
Amount
|
|
| | |
(in thousands)
|
|
Cash inflow from Private Placement
|
| |
$160,000 (B)
|
|
Cash inflow from RMG’s Trust account
|
| |
234,179 (C)
|
|
Payment to fund operations of Heritage Battery Recycling
|
| |
(35,000)(D)
|
|
Payment of RMG’s deferred IPO fees and Legacy Romeo’s accrued transaction-related liabilities
|
| |
(11,464)(F)
|
|
Settlement of issued and outstanding term loans and related accrued interest
|
| |
(10,100)(G)
|
|
Cash receipt for amounts due to Legacy Romeo under notes receivable from stockholders
|
| |
5,314 (H)
|
|
Payment of estimated transaction fees incurred by Legacy Romeo
|
| |
(17,893)(I)
|
|
Payment of estimated transaction fees incurred by RMG
|
| |
(21,655)(J)
|
|
Net Pro Forma Adjustment to Cash
|
| |
$303,381(A)
|
|
| | |
Amount
|
| | ||||||||
| | |
(in thousands)
|
| | | | | | | |||
RMG’s deferred IPO legal fees
|
| | | $ | 450 | | | | | | | | |
RMG’s deferred IPO underwriting commissions
|
| | | | 8,050 | | | | | | | | |
Other IPO expenses accrued by RMG
|
| | | | 50 | | | | | | | | |
Legacy Romeo’s deferred transaction fees
|
| | | | 2,804 | | | | |
|
(E)
|
| |
Legacy Romeo’s accrued transaction-related bonuses
|
| | | | 110 | | | | | | | | |
Total deferred costs and accrued expenses to be paid with RMG trust and private placement
proceeds |
| | | $ | 11,464 | | | | | | | | |
Class of preferred stock
|
| |
Converted Legacy Romeo
common shares |
|
Series seed preferred stock
|
| |
1.0180 shares
|
|
Series A-1 preferred stock
|
| |
1.1519 shares
|
|
Series A-2 preferred stock
|
| |
1.0288 shares
|
|
Series A-3 preferred stock
|
| |
1.0185 shares
|
|
Series A-4 preferred stock
|
| |
1.0123 shares
|
|
Series A-5 preferred stock
|
| |
1.0000 shares
|
|
| | |
Amount
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
| | |
RMG Par Value
|
| |
Legacy Romeo Par Value
|
| |
Additional
Paid-In Capital |
| |||||||||||||||||||||
| | |
Class A
Stock(1) |
| |
Class B
Stock |
| |
Class A
Stock |
| |
Class B
Stock |
| ||||||||||||||||||
Reclassification of redeemable RMG shares to Class A
Stock |
| | | $ | 2 | | | | | | | | | | | | | | | | | | | | | | | | 220,737 | | |
Conversion of RMG Class B shares to Common Stock(2)
|
| | | | 1 | | | | | | (1) | | | | | | | | | | | | | | | | | | — | | |
Exchange of Common Stock for Legacy Romeo’s issued and outstanding convertible notes
|
| | | | — | | | | | | | | | | | | | | | | | | | | | | | | 7,709 | | |
Exchange of Common Stock for Legacy Romeo’s issued and outstanding preferred stock
|
| | | | 5 | | | | | | | | | | | | | | | | | | | | | | | | 112,870 | | |
Private Placement
|
| | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | 159,998 | | |
Shares issued to Legacy Romeo common stockholders
as consideration |
| | | | 3 | | | | | | | | | | | | (1) | | | | | | (1) | | | | | | (2) | | |
Adjustment for share issuance and conversion transactions
|
| | | | 13 | | | | | | (1) | | | | | | (1) | | | | | | (1) | | | | | | 501,312 | | |
Estimated RMG transaction costs
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (21,655) | | |
Incurred Legacy Romeo transaction costs
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (2,804) | | |
Estimated Legacy Romeo transaction costs
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (17,893) | | |
Elimination of RMG’s historical retained earnings
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (2,328) | | |
Issuance of stock options upon consummation of the transaction
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 412 | | |
Total adjustments to par value and additional paid-in capital
|
| | | $ | 13 | | | | | $ | (1) | | | | | $ | (1) | | | | | $ | (1) | | | | | $ | 457,044 | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Accretion of Legacy Romeo preferred stock to redemption value prior to exchange for Common Stock(1)
|
| | | $ | (5,294) | | |
Incremental expense for the forgiveness of a portion of the notes receivable due from stockholders upon settlement(2)
|
| | | | (2,195) | | |
Vesting of stock options upon consummation of the Business Combination(3)
|
| | | | (412) | | |
| | |
Amount
|
| |||
| | |
(in thousands)
|
| |||
Incremental interest expense incurred on outstanding term notes subsequent to September 30,
2020(4) |
| | | | (143) | | |
Incremental interest expense incurred on outstanding convertible notes subsequent to September 30, 2020(5)
|
| | | | (131) | | |
Elimination of RMG accumulated deficit to additional paid-in capital
|
| | | | 2,328 | | |
Net Pro Forma Adjustment to Accumulated Deficit
|
| | | $ | (5,847) | | |
| | |
September 30, 2020
|
| |
Pro Forma Combined Company
|
| ||||||||||||||||||||||||||||||
| | |
Authorized
|
| |
Issued
|
| |
Outstanding
|
| |
Authorized
|
| |
Issued
|
| |
Outstanding
|
| ||||||||||||||||||
RMG Class B Common Stock
|
| | | | 10,000,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Legacy Romeo Class A common stock
|
| | | | 800,000,000 | | | | | | 122,353,887 | | | | | | 122,353,887 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Legacy Romeo Class B common stock
|
| | | | 108,297,023 | | | | | | 107,295,776 | | | | | | 107,295,776 | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
| Numerator | | | | | | | |
|
Pro forma net loss (in thousands)
|
| | | $ | (21,440) | | |
| Denominator | | | | | | | |
|
RMG public shares
|
| | | | 23,000,000 | | |
|
Sponsor’s shares(1)
|
| | | | 5,750,000 | | |
|
Private Placement investors’ shares(2)
|
| | | | 16,000,000 | | |
|
Current Legacy Romeo stockholders’ shares(3)
|
| | | | 80,800,556 | | |
|
Basic and diluted weighted average shares outstanding
|
| | | | 125,550,556 (f) | | |
| Loss per share | | | | | | | |
|
Basic and diluted(4)
|
| | | $ | (0.17)(f) | | |
| Numerator | | | | | | | |
|
Pro forma net loss (in thousands)
|
| | | $ | (60,843) | | |
| Denominator | | | | | | | |
|
RMG public shares
|
| | | | 22,934,985 | | |
|
Sponsor’s shares(1)
|
| | | | 5,750,000 | | |
|
Private Placement investors’ shares(2)
|
| | | | 16,000,000 | | |
|
Current Legacy Romeo stockholders’ shares(3)
|
| | | | 80,800,556 | | |
|
Basic and diluted weighted average shares outstanding
|
| | | | 125,485,541(ee) | | |
| Loss per share | | | | | | | |
|
Basic and diluted(4)
|
| | | $ | (0.48)(ee) | | |
$ in thousands
|
| |
Nine Months Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Products
|
| | | $ | 2,097 | | | | | $ | 3,097 | | | | | $ | (1,000) | | | | | | (32.3) | | |
Services
|
| | | | 202 | | | | | | 1,051 | | | | | | (849) | | | | | | (80.8) | | |
Related party services
|
| | | | 2,027 | | | | | | 1,209 | | | | | | 818 | | | | | | 67.7 | | |
Total revenue
|
| | | | 4,326 | | | | | | 5,357 | | | | | | (1,031) | | | | | | (19.2) | | |
Cost of sales | | | | | | | | | | | | | | | | | | | | | | | | | |
Products
|
| | | | 5,182 | | | | | | 8,779 | | | | | | (3,597) | | | | | | (41.0) | | |
Services
|
| | | | 919 | | | | | | 868 | | | | | | 51 | | | | | | 5.9 | | |
Related party services
|
| | | | 1,750 | | | | | | 1,028 | | | | | | 722 | | | | | | 70.2 | | |
Total cost of sales
|
| | | | 7,851 | | | | | | 10,675 | | | | | | (2,824) | | | | | | (26.5) | | |
Gross loss
|
| | | | (3,525) | | | | | | (5,318) | | | | | | 1,793 | | | | | | (33.7) | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 5,213 | | | | | | 9,697 | | | | | | (4,484) | | | | | | (46.2) | | |
Selling, general and administrative
|
| | | | 10,303 | | | | | | 11,205 | | | | | | (902) | | | | | | (8.0) | | |
Total operating expenses
|
| | | | 15,516 | | | | | | 20,902 | | | | | | (5,386) | | | | | | (25.8) | | |
Operating loss
|
| | | | (19,041) | | | | | | (26,220) | | | | | | 7,179 | | | | | | (27.4) | | |
Interest expense
|
| | | | (783) | | | | | | (10,848) | | | | | | 10,065 | | | | | | (92.8) | | |
Interest income
|
| | | | — | | | | | | 266 | | | | | | (266) | | | | | | (100.0) | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | (9,181) | | | | | | 9,181 | | | | | | (100.0) | | |
Other expense
|
| | | | (1,614) | | | | | | — | | | | | | (1,614) | | | | | | — | | |
Net loss before income taxes and equity (loss) in
affiliates |
| | | | (21,438) | | | | | | (45,983) | | | | | | 24,545 | | | | | | (53.4) | | |
Equity (loss) in affiliates
|
| | | | (1,272) | | | | | | (669) | | | | | | (603) | | | | | | 90.1 | | |
Income tax expense
|
| | | | — | | | | | | (1) | | | | | | 1 | | | | | | (100.0) | | |
Net loss
|
| | | $ | (22,710) | | | | | $ | (46,653) | | | | | $ | 23,943 | | | | | | (51.3) | | |
$ in thousands
|
| |
Nine Months Ended
|
| |||||||||
|
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||
Products
|
| | | $ | 2,097 | | | | | $ | 3,097 | | |
% of total revenue
|
| | | | 48.5% | | | | | | 57.8% | | |
Services
|
| | | | 202 | | | | | | 1,051 | | |
% of total revenue
|
| | | | 4.7% | | | | | | 19.6% | | |
Related party revenue
|
| | | | 2,027 | | | | | | 1,209 | | |
% of total revenue
|
| | | | 46.9% | | | | | | 22.6% | | |
Total revenue
|
| | | $ | 4,326 | | | | | $ | 5,357 | | |
$ in thousands
|
| |
Nine Months Ended
|
| |||||||||
|
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||
Cost of sales – products
|
| | | $ | 5,182 | | | | | $ | 8,779 | | |
% of cost of sales
|
| | | | 66.0% | | | | | | 82.2% | | |
Cost of sales – services
|
| | | | 919 | | | | | | 868 | | |
% of cost of sales
|
| | | | 11.7% | | | | | | 8.1% | | |
Cost of sales – related party
|
| | | | 1,750 | | | | | | 1,028 | | |
% of cost of sales
|
| | | | 22.3% | | | | | | 9.6% | | |
Total cost of sales
|
| | | $ | 7,851 | | | | | $ | 10,675 | | |
Primary Drivers ($ in thousands)
|
| |
Increase /
(Decrease) |
| |||
Compensation and benefit costs
|
| | | $ | (4,209) | | |
Third-party design and development costs
|
| | | | (121) | | |
Primary drivers of the total decrease in research and development expense
|
| | | $ | (4,330) | | |
Primary Drivers ($ in thousands)
|
| |
Increase /
(Decrease) |
| |||
Compensation and benefit costs
|
| | | $ | (2,594) | | |
Professional fees
|
| | | | 2,088 | | |
Travel costs
|
| | | | (429) | | |
Primary drivers of the total decrease in selling, general and administrative
|
| | | $ | (935) | | |
$ in thousands
|
| |
Nine Months Ended
|
| |
$ Change
|
| |
% Change
|
| |||||||||||||||
|
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | 2,299 | | | | | $ | 4,148 | | | | | $ | (1,849) | | | | | | (44.6)% | | |
Joint Venture Support
|
| | | | 2,027 | | | | | | 1,209 | | | | | | 818 | | | | | | 67.7 | | |
Total revenue
|
| | | $ | 4,326 | | | | | $ | 5,357 | | | | | $ | (1,031) | | | | | | (19.2) | | |
$ in thousands
|
| |
Nine Months Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||||||||||
Business segment gross loss | | | | | | | | | | | | | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | (3,802) | | | | | $ | (5,499) | | | | | $ | 1,697 | | | | | | (30.9) | | |
Joint Venture Support
|
| | | | 277 | | | | | | 181 | | | | | | 96 | | | | | | 53.0 | | |
Total business segment gross loss
|
| | | $ | (3,525) | | | | | $ | (5,318) | | | | | $ | 1,793 | | | | | | (33.7) | | |
$ in thousands
|
| |
Years Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Products
|
| | | $ | 4,847 | | | | | $ | 842 | | | | | $ | 4,005 | | | | | | 475.7 | | |
Services
|
| | | | 1,665 | | | | | | 2,222 | | | | | | (557) | | | | | | (25.1) | | |
Related party services
|
| | | | 1,976 | | | | | | — | | | | | | 1,976 | | | | | | NM | | |
Total revenue
|
| | | | 8,488 | | | | | | 3,064 | | | | | | 5,424 | | | | | | 177.0 | | |
Cost of sales | | | | | | | | | | | | | | | | | | | | | | | | | |
Products
|
| | | | 12,703 | | | | | | 6,540 | | | | | | 6,163 | | | | | | 94.2 | | |
$ in thousands
|
| |
Years Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||||||||||
Services
|
| | | | 2,877 | | | | | | 6,255 | | | | | | (3,378) | | | | | | (54.0) | | |
Related party services
|
| | | | 1,657 | | | | | | — | | | | | | 1,657 | | | | | | NM | | |
Total cost of sales
|
| | | | 17,237 | | | | | | 12,795 | | | | | | 4,442 | | | | | | 34.7 | | |
Gross loss
|
| | | | (8,749) | | | | | | (9,731) | | | | | | 982 | | | | | | (10.1) | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 11,242 | | | | | | 18,446 | | | | | | (7,204) | | | | | | (39.1) | | |
Selling, general and administrative
|
| | | | 13,890 | | | | | | 19,768 | | | | | | (5,878) | | | | | | (29.7) | | |
Legal settlement expense
|
| | | | 4,586 | | | | | | — | | | | | | 4,586 | | | | | | NM | | |
Total operating expenses
|
| | | | 29,718 | | | | | | 38,214 | | | | | | (8,496) | | | | | | (22.2) | | |
Operating loss
|
| | | | (38,467) | | | | | | (47,945) | | | | | | 9,478 | | | | | | (19.8) | | |
Interest expense
|
| | | | (10,954) | | | | | | (8,802) | | | | | | (2,152) | | | | | | 24.4 | | |
Interest income
|
| | | | 269 | | | | | | — | | | | | | 269 | | | | | | NM | | |
Loss on extinguishment of debt
|
| | | | (9,181) | | | | | | (2,580) | | | | | | (6,601) | | | | | | 255.9 | | |
Net loss before income taxes and equity (loss) in
affiliates |
| | | | (58,333) | | | | | | (59,327) | | | | | | 994 | | | | | | (1.7) | | |
Equity (loss) in affiliates
|
| | | | (1,520) | | | | | | — | | | | | | (1,520) | | | | | | NM | | |
Income tax expense
|
| | | | (1) | | | | | | (1) | | | | | | — | | | | | | — | | |
Net loss
|
| | | $ | (59,854) | | | | | $ | (59,328) | | | | | $ | (526) | | | | | | 0.9 | | |
|
$ in thousands
|
| |
Years Ended
|
| |||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||
Products
|
| | | $ | 4,847 | | | | | $ | 842 | | |
% of total revenue
|
| | | | 57.1% | | | | | | 27.5% | | |
Services
|
| | | | 1,665 | | | | | | 2,222 | | |
% of total revenue
|
| | | | 19.6% | | | | | | 72.5% | | |
Related party revenue
|
| | | | 1,976 | | | | | | — | | |
% of total revenue
|
| | | | 23.3% | | | | | | —% | | |
Total revenue
|
| | | $ | 8,488 | | | | | $ | 3,064 | | |
$ in thousands
|
| |
Years Ended
|
| |||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||
Cost of sales — products
|
| | | $ | 12,703 | | | | | $ | 6,540 | | |
% of cost of sales
|
| | | | 73.7% | | | | | | 51.1% | | |
Cost of sales — services
|
| | | | 2,877 | | | | | | 6,255 | | |
% of cost of sales
|
| | | | 16.7% | | | | | | 48.9% | | |
Cost of sales — related party
|
| | | | 1,657 | | | | | | — | | |
% of cost of sales
|
| | | | 9.6% | | | | | | —% | | |
Total cost of sales
|
| | | $ | 17,237 | | | | | $ | 12,795 | | |
Primary Drivers
($ in thousands) |
| |
Increase /
(Decrease) |
| |||
Materials and consumables
|
| | | $ | (3,364) | | |
Compensation and benefits
|
| | | | (2,893) | | |
Primary drivers of the total decrease in research and development
|
| | | $ | (6,257) | | |
Primary Drivers
($ in thousands) |
| |
Increase /
(Decrease) |
| |||
Compensation and benefits
|
| | | $ | (3,465) | | |
IT costs
|
| | | | (694) | | |
Professional fees
|
| | | | (651) | | |
Equipment and supplies
|
| | | | (619) | | |
Primary drivers of the total decrease in selling, general and administrative expense
|
| | | $ | (5,429) | | |
$ in thousands
|
| |
Years Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | 6,512 | | | | | $ | 3,064 | | | | | $ | 3,448 | | | | | | 112.5 | | |
Joint Venture Support
|
| | | | 1,976 | | | | | | — | | | | | | 1,976 | | | | | | NM | | |
Total revenue
|
| | | $ | 8,488 | | | | | $ | 3,064 | | | | | $ | 5,424 | | | | | | 177.0 | | |
$ in thousands
|
| |
Years Ended
|
| |
$
Change |
| |
%
Change |
| |||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||||||||||
Business segment gross loss | | | | | | | | | | | | | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | (9,068) | | | | | $ | (9,731) | | | | | $ | 663 | | | | | | (6.8) | | |
Joint Venture Support
|
| | | | 319 | | | | | | — | | | | | | 319 | | | | | | NM | | |
Total business segment gross loss
|
| | | $ | (8,749) | | | | | $ | (9,731) | | | | | $ | 982 | | | | | | (10.1) | | |
| | |
Nine Months Ended
|
| |
Years Ended
|
| ||||||||||||||||||
$ in thousands
|
| |
September 30,
2020 |
| |
September 30,
2019 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||||||||
Net loss
|
| | | $ | (22,710) | | | | | $ | (46,653) | | | | | $ | (59,854) | | | | | $ | (59,328) | | |
Interest expense
|
| | | | 783 | | | | | | 10,848 | | | | | | 10,954 | | | | | | 8,802 | | |
Interest income
|
| | | | — | | | | | | (266) | | | | | | (269) | | | | | | — | | |
Income tax expense
|
| | | | — | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Depreciation and amortization expense
|
| | | | 1,404 | | | | | | 1,387 | | | | | | 1,871 | | | | | | 1,573 | | |
EBITDA
|
| | | | (20,523) | | | | | | (34,683) | | | | | | (47,297) | | | | | | (48,952) | | |
Loss on debt extinguishment
|
| | | | — | | | | | | 9,181 | | | | | | 9,181 | | | | | | 2,580 | | |
Stock-based compensation
|
| | | | 784 | | | | | | 949 | | | | | | 1,566 | | | | | | 2,948 | | |
Settlement of certain legal matters
|
| | | | — | | | | | | — | | | | | | 4,586 | | | | | | — | | |
Derivative expense
|
| | | | 1,614 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | (18,125) | | | | | $ | (24,553) | | | | | $ | (31,964) | | | | | $ | (43,424) | | |
| | |
Nine Months Ended
|
| |||||||||
$in thousands
|
| |
September 30,
2020 |
| |
September 30,
2019 |
| ||||||
Cash, cash equivalents, and restricted cash at beginning of period
|
| | | $ | 1,929 | | | | | $ | 1,511 | | |
Operating activities: | | | | | | | | | | | | | |
Net losses
|
| | | | (22,710) | | | | | | (46,653) | | |
Non-cash adjustments
|
| | | | 5,461 | | | | | | 18,808 | | |
Changes in working capital
|
| | | | 3,123 | | | | | | (9,826) | | |
Net cash used for operating activities
|
| | | | (14,126) | | | | | | (37,671) | | |
Net cash used for investing activities
|
| | | | (561) | | | | | | (843) | | |
Net cash provided by financing activities
|
| | | | 14,504 | | | | | | 42,295 | | |
Net change in cash, cash equivalents, and restricted cash
|
| | | | (183) | | | | | | 3,781 | | |
Cash, cash equivalents, and restricted cash at end of period
|
| | | $ | 1,746 | | | | | $ | 5,292 | | |
| | |
Years Ended
|
| |||||||||
$ in thousands
|
| |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Cash, cash equivalents, and restricted cash at beginning of year
|
| | | $ | 1,511 | | | | | $ | 5,870 | | |
Operating activities: | | | | | | | | | | | | | |
Net losses
|
| | | | (59,854) | | | | | | (59,328) | | |
Non-cash adjustments
|
| | | | 21,664 | | | | | | 13,156 | | |
Changes in working capital
|
| | | | (8,774) | | | | | | 3,835 | | |
Net cash used for operating activities
|
| | | | (46,964) | | | | | | (42,337) | | |
Net cash used for investing activities
|
| | | | (1,171) | | | | | | (3,049) | | |
Net cash provided by financing activities
|
| | | | 48,553 | | | | | | 41,027 | | |
Net change in cash, cash equivalents, and restricted cash
|
| | | | 418 | | | | | | (4,359) | | |
Cash, cash equivalents, and restricted cash at end of year
|
| | | $ | 1,929 | | | | | $ | 1,511 | | |
|
$ in thousands
|
| |
Total
|
| |
Last Three
Months of 2020 |
| |
2021
|
| |
2022
and 2023 |
| |
2024
and 2025 |
| |
Thereafter
|
| ||||||||||||||||||
Convertible notes*
|
| | | $ | 7,149 | | | | | $ | | | | | $ | — | | | | | $ | 7,149 | | | | | $ | — | | | | | $ | — | | | |
Term notes*
|
| | | | 9,550 | | | | | | | | | | | | 9,550 | | | | | | | | | | | | | | | | | | | | |
Other debt*
|
| | | | 3,300 | | | | | | | | | | | | 2,258 | | | | | | 1,042 | | | | | | | | | | | | | | |
Operating leases
|
| | | | 10,223 | | | | | | 225 | | | | | | 901 | | | | | | 1,804 | | | | | | 1,804 | | | | | | 5,489 | | |
Finance leases
|
| | | | 397 | | | | | | 83 | | | | | | 295 | | | | | | 19 | | | | | | — | | | | | | — | | |
Interest** | | | | | 2,013 | | | | | | 9 | | | | | | 672 | | | | | | 1,332 | | | | | | | | | | | | | | |
Total*** | | | | $ | 32,632 | | | | | $ | 317 | | | | | $ | 13,676 | | | | | $ | 11,346 | | | | | $ | 1,804 | | | | | $ | 5,489 | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers: | | | | | | | |
Lionel E. Selwood, Jr.
|
| |
31
|
| | President, Chief Executive Officer and Director | |
Lauren Webb
|
| |
39
|
| | Chief Financial Officer and Director(4) | |
Michael Patterson
|
| |
52
|
| | Chief Sales Officer | |
Abdul Kader (“AK”) El Srouji, Ph.D.
|
| |
33
|
| | Chief Technology Officer | |
Criswell Choi
|
| |
41
|
| | Chief Operating Officer | |
Non-Employee Directors: | | | | | | | |
Robert S. Mancini
|
| |
63
|
| | Chairman of the Board(4) | |
Susan S. Brennan
|
| |
58
|
| | Director(2)(4) | |
Brady Ericson
|
| |
48
|
| | Director(4) | |
Donald S. Gottwald
|
| |
54
|
| | Director(1)(3) | |
Philip Kassin
|
| |
63
|
| | Director(1)(4) | |
Timothy E. Stuart
|
| |
53
|
| | Director(2)(3) | |
Paul S. Williams
|
| |
60
|
| |
Director(1)(2)(3)
|
|
Name and Principal Position
|
| |
Year
|
| |
Salary ($)
|
| |
Bonus ($)
|
| |
Option
Awards ($)(1) |
| |
All Other
Compensation ($) |
| |
Total ($)
|
| ||||||||||||||||||
Lionel E. Selwood, Jr.
|
| | | | 2019 | | | | | | 325,000 | | | | | | 0 | | | | | | 123,956 | | | | | | 35,675(2) | | | | | | 484,631 | | |
President and Chief Executive Officer
|
| | | | 2020 | | | | | | 385,653 | | | | | | 0 | | | | | | 5,860,800 | | | | | | 36,276(2) | | | | | | 6,282,729 | | |
Michael Patterson
|
| | | | 2019 | | | | | | 250,000 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 250,000 | | |
Chief Sales Officer
|
| | | | 2020 | | | | | | 251,278 | | | | | | 0 | | | | | | 9,626,480 | | | | | | 0 | | | | | | 9,877,758 | | |
Criswell Choi
|
| | | | 2019 | | | | | | 281,250 | | | | | | 0 | | | | | | 160,604 | | | | | | 0 | | | | | | 441,854 | | |
Chief Operating Officer
|
| | | | 2020 | | | | | | 300,000 | | | | | | 0 | | | | | | 1,154,250 | | | | | | 0 | | | | | | 1,454,250 | | |
Liquid Share Price
|
| |
Cumulative Number of
Shares That Will Vest |
| |||
$6.6869 – $8.9452
|
| | | | 926,795 | | |
$8.9453 – $11.9272
|
| | | | 1,853,591 | | |
$11.9273 – $14.9092
|
| | | | 3,243,781 | | |
$14.9093
|
| | | | 4,633,978 | | |
| | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||||||||
Lionel E. Selwood, Jr.
|
| | | | 2/21/17(1) | | | | | | 42,606 | | | | | | 0 | | | | | | 4.10 | | | | | | 2/20/27 | | |
| | | | | 11/16/18(1) | | | | | | 182,595 | | | | | | 0 | | | | | | 6.09 | | | | | | 11/15/28 | | |
| | | | | 10/30/19(3) | | | | | | 81,661 | | | | | | 58,329 | | | | | | 1.57 | | | | | | 10/29/29 | | |
| | | | | 9/17/20(4) | | | | | | 243,460 | | | | | | 730,380 | | | | | | 6.09 | | | | | | 9/16/30 | | |
Michael Patterson
|
| | | | 8/25/17(1) | | | | | | 1,343,666 | | | | | | 0 | | | | | | 4.10 | | | | | | 8/24/27 | | |
| | | | | 1/12/18(1) | | | | | | 261,268 | | | | | | 7,465 | | | | | | 6.09 | | | | | | 1/11/28 | | |
| | | | | 8/12/20(5) | | | | | | 0 | | | | | | 4,633,978 | | | | | | 6.69 | | | | | | 8/12/23(6) | | |
Criswell Choi
|
| | | | 1/12/18(1) | | | | | | 1,183 | | | | | | 34 | | | | | | 6.09 | | | | | | 1/11/28 | | |
| | | | | 10/30/19(3) | | | | | | 120,918 | | | | | | 60,459 | | | | | | 1.57 | | | | | | 10/29/29 | | |
| | | | | 9/17/20(3) | | | | | | 15,216 | | | | | | 167,379 | | | | | | 6.08 | | | | | | 9/16/30 | | |
Stockholder
|
| |
Shares of Series A
Preferred Stock Purchased |
| |
Note Conversion
Amount |
| |
Total Purchase Price
|
| |||||||||
BorgWarner Inc.(1)
|
| | | | 137,741,046 | | | | | | — | | | | | $ | 49,999,999.70 | | |
Michael Patterson(2)
|
| | | | 35,661,574 | | | | | $ | 1,781,095.89 | | | | | $ | 9,409,119.10 | | |
Scott Beck(3)
|
| | | | 1,280,410 | | | | | $ | 464,788.83 | | | | | $ | 464.788.83 | | |
Lauren Webb(4)
|
| | | | 30,496 | | | | | $ | 11,070.05 | | | | | $ | 11,070.05 | | |
HG Ventures LLC(5)
|
| | | | 19,131,589 | | | | | $ | 4,040,766.81 | | | | | $ | 5,040,766.81 | | |
Paul Marsolan(6)
|
| | | | 2,000,000 | | | | | | — | | | | | $ | 250,000.00 | | |
OpenDoor Venture Capital, LLC(7)
|
| | | | 8,009,358 | | | | | $ | 1,744,438.36 | | | | | $ | 1,744,438.17 | | |
Drew Lane Capital, LLC(8)
|
| | | | 36,017,269 | | | | | $ | 5,596,619.17 | | | | | $ | 6,096,619.17 | | |
Ulysses Ventures, LLC(9)
|
| | | | 36,012,332 | | | | | $ | 5,595,756.15 | | | | | $ | 6,095,756.15 | | |
Loan Date
|
| |
Lender
|
| |
Interest
Rate |
| |
Loan
Balance |
| |
Total
Principal and Interest |
| |
Repay or
Convert |
| |
Repayment
Date (Est.) |
|
12/29/2016
|
| |
Michael Patterson
|
| |
8%
|
| |
$1,500,000.00
|
| |
$1,781,095.89
|
| |
Convert
|
| |
5/3/2019
|
|
2/26/2018
|
| |
OpenDoor Venture Capital
|
| |
8%
|
| |
$1,500,000.00
|
| |
$1,744,438.36
|
| |
Convert
|
| |
5/3/2019
|
|
4/11/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$723,500.00
|
| |
$799,655.73
|
| |
Repay*
|
| |
5/3/2019
|
|
5/11/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$600,000.00
|
| |
$646,947.95
|
| |
Repay*
|
| |
5/3/2019
|
|
5/29/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$250,000.00
|
| |
$268,575.34
|
| |
Repay*
|
| |
5/3/2019
|
|
6/4/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$800,000.00
|
| |
$858,389.04
|
| |
Repay*
|
| |
5/3/2019
|
|
6/12/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$1,000,000.00
|
| |
$1,071,232.88
|
| |
Repay*
|
| |
5/3/2019
|
|
7/5/2018
|
| |
Lauren Webb
|
| |
8%
|
| |
$10,000.00
|
| |
$11,070.13
|
| |
Convert
|
| |
5/3/2019
|
|
7/24/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$550,000.00
|
| |
$584,115.07
|
| |
Repay*
|
| |
5/3/2019
|
|
8/13/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$500,000.00
|
| |
$528,821.92
|
| |
Repay*
|
| |
5/3/2019
|
|
8/30/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$200,000.00
|
| |
$210,783.56
|
| |
Repay*
|
| |
5/3/2019
|
|
9/11/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$400,000.00
|
| |
$420,515.07
|
| |
Repay*
|
| |
5/3/2019
|
|
10/12/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$500,000.00
|
| |
$522,246.58
|
| |
Repay*
|
| |
5/3/2019
|
|
12/28/2018
|
| |
Michael Patterson
|
| |
8%
|
| |
$200,000.00
|
| |
$205,523.29
|
| |
Repay*
|
| |
5/3/2019
|
|
1/2/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$1,200,000.00
|
| |
$1,231,824.66
|
| |
Repay*
|
| |
5/3/2019
|
|
1/11/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$1,000,000.00
|
| |
$1,024,547.95
|
| |
Repay*
|
| |
5/3/2019
|
|
1/17/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$120,000.00
|
| |
$122,787.95
|
| |
Repay*
|
| |
5/3/2019
|
|
2/26/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$1,000,000.00
|
| |
$1,014,465.75
|
| |
Repay*
|
| |
5/3/2019
|
|
3/13/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$650,000.00
|
| |
$657,265.75
|
| |
Repay*
|
| |
5/3/2019
|
|
3/25/2019
|
| |
Michael Patterson
|
| |
8%
|
| |
$950,000.00
|
| |
$958,120.55
|
| |
Repay*
|
| |
5/3/2019
|
|
4/10/2019
|
| |
Michael Patterson
|
| |
10%
|
| |
$210,000.00
|
| |
$211,323.29
|
| |
Repay*
|
| |
5/3/2019
|
|
Holder Name
|
| |
Grant Name
|
| |
Stock
Designation |
| |
Grant Date
|
| |
Grant
Price |
| |
Shares
Granted |
|
James Gertler
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
2,250,181
|
|
Drew Lane Holdings, LLC
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
978,339
|
|
Drew Lane Holdings, LLC
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
587,003
|
|
Drew Lane Holdings, LLC
|
| |
11/16/18 – $0.74 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.74
|
| |
2,024,100
|
|
Drew Lane Holdings, LLC
|
| |
11/16/18 – $0.74 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.74
|
| |
1,351,351
|
|
Drew Lane Holdings, LLC
|
| |
11/16/18 – $0.28 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.28
|
| |
964,912
|
|
Drew Lane Holdings, LLC
|
| |
11/16/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.23
|
| |
2,631,579
|
|
Drew Lane Holdings, LLC
|
| |
1/25/19 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
01/25/2019
|
| |
$0.23
|
| |
1,000,000
|
|
Drew Lane Holdings, LLC
|
| |
1/25/19 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
01/25/2019
|
| |
$0.23
|
| |
350,000
|
|
Holder Name
|
| |
Grant Name
|
| |
Stock
Designation |
| |
Grant Date
|
| |
Grant
Price |
| |
Shares
Granted |
|
Ulysses Ventures, LLC
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
2,250,181
|
|
Ulysses Ventures, LLC
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
978,339
|
|
Ulysses Ventures, LLC
|
| |
8/23/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
08/23/2018
|
| |
$0.23
|
| |
587,003
|
|
Ulysses Ventures, LLC
|
| |
11/16/18 – $0.74 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.74
|
| |
2,024,100
|
|
Ulysses Ventures, LLC
|
| |
11/16/18 – $0.74 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.74
|
| |
1,351,351
|
|
Ulysses Ventures, LLC
|
| |
11/16/18 – $0.28 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.28
|
| |
964,912
|
|
Ulysses Ventures, LLC
|
| |
11/16/18 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
11/16/2018
|
| |
$0.23
|
| |
2,631,579
|
|
Ulysses Ventures, LLC
|
| |
1/25/19 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
01/25/2019
|
| |
$0.23
|
| |
1,000,000
|
|
Ulysses Ventures, LLC
|
| |
1/25/19 – $0.23 USD – Warrant
|
| |
Class A Common
|
| |
01/25/2019
|
| |
$0.23
|
| |
350,000
|
|
Name and Address of Beneficial Owner
|
| |
Number of Shares of
Common Stock Beneficially Owned |
| |
Percentage of
Outstanding Common Stock |
| ||||||
Directors and Executive Officers: | | | | | | | | | | | | | |
Lionel E. Selwood, Jr.(1)
|
| | | | 720,405 | | | | | | * | | |
Michael Patterson(2)
|
| | | | 14,241,222 | | | | | | 11.1% | | |
Lauren Webb(3)
|
| | | | 543,865 | | | | | | * | | |
Abdul Kader El Srouji, Ph.D.(4)
|
| | | | 608,650 | | | | | | * | | |
Criswell Choi(5)
|
| | | | 207,955 | | | | | | * | | |
Robert S. Mancini(6)
|
| | | | 8,941,667 | | | | | | 6.8% | | |
Philip Kassin(6)(9)
|
| | | | 9,104,725 | | | | | | 7.0% | | |
Brady Ericson
|
| | | | — | | | | | | — | | |
Susan S. Brennan
|
| | | | — | | | | | | — | | |
Donald S. Gottwald
|
| | | | — | | | | | | — | | |
Timothy E. Stuart
|
| | | | — | | | | | | — | | |
Paul S. Williams
|
| | | | — | | | | | | — | | |
All executive officers and directors as a group (12 individuals)
|
| | | | 25,426,822 | | | | | | 18.9% | | |
Five Percent Holders: | | | | | | | | | | | | | |
BorgWarner Inc.(7)
|
| | | | 19,315,399 | | | | | | 15.2% | | |
RMG Sponsor, LLC(6)
|
| | | | 8,941,667 | | | | | | 6.8% | | |
Ulysses Ventures, LLC(8)
|
| | | | 6,584,389 | | | | | | 5.6% | | |
Name of Selling Securityholder
|
| |
Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Warrants
Beneficially Owned Prior to Offering |
| |
Number of
Shares of Common Stock Being Offered(1) |
| |
Number of
Warrants Being Offered |
| |
Shares of Common
Stock Beneficially Owned After the Offered Shares of Common Stock are Sold |
| |
Warrants
Beneficially Owned After the Offered Warrants are Sold |
| ||||||||||||||||||||||||||||||
|
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| ||||||||||||||||||||||||||||||||||||||
PIPE Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AGR Trading SPC – Series EC Segregated Portfolio(2)
|
| | | | 9,159 | | | | | | — | | | | | | 9,159 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Altium Growth Fund, LP(3)
|
| | | | 1,000,000 | | | | | | — | | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Alyeska Master Fund, L.P.(4)
|
| | | | 1,421,725 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | 921,725 | | | | | | * | | | | | | — | | | | | | — | | |
Arbitrage Fund(5)
|
| | | | 334,950 | | | | | | — | | | | | | 291,250 | | | | | | — | | | | | | 43,700 | | | | | | * | | | | | | — | | | | | | — | | |
BEMAP Master Fund Ltd(6)
|
| | | | 166,149 | | | | | | — | | | | | | 166,149 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
BESPOKE ALPHA MAC MIM LP(6)
|
| | | | 19,031 | | | | | | — | | | | | | 19,031 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Boothbay Absolute Return Strategies, LP(2)
|
| | | | 17,503 | | | | | | — | | | | | | 17,503 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
DSAM+ Master Fund(7)
|
| | | | 1,395,787 | | | | | | — | | | | | | 930,000 | | | | | | — | | | | | | 465,787 | | | | | | * | | | | | | — | | | | | | — | | |
Electron Global Master Fund, L.P. (8)
|
| | | | 574,021 | | | | | | — | | | | | | 574,021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Electron Infrastructure Master Fund, L.P.(9)
|
| | | | 399,317 | | | | | | — | | | | | | 399,317 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ghisallo Master Fund LP(10)
|
| | | | 500,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
HG Ventures PIPE, LLC(11)
|
| | | | 5,600,009 | | | | | | 375,601 | | | | | | 2,500,000 | | | | | | — | | | | | | 3,100,009 | | | | | | 2.4% | | | | | | 375,601 | | | | | | 2.4% | | |
Jane Street Global Trading, LLC(12)
|
| | | | 2,187,223 | | | | | | 26,365 | | | | | | 2,000,000 | | | | | | — | | | | | | 187,223 | | | | | | * | | | | | | 26,365 | | | | | | * | | |
Kepos Alpha Master Fund L.P. (13)
|
| | | | 500,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Linden Capital L.P.(14)
|
| | | | 500,000 | | | | | | 471,600 | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 471,600 | | | | | | 3.1% | | |
LMA SPC-MAP 112 Segregated Portfolio (7)
|
| | | | 408,464 | | | | | | — | | | | | | 270,000 | | | | | | — | | | | | | 138,464 | | | | | | * | | | | | | — | | | | | | — | | |
Lugard Road Capital Master Fund, LP (15)
|
| | | | 609,134 | | | | | | — | | | | | | 609,134 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Luxor Capital Partners Offshore Master Fund, LP(16)
|
| | | | 438,761 | | | | | | — | | | | | | 438,761 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Luxor Capital Partners, LP(16)
|
| | | | 628,196 | | | | | | — | | | | | | 628,196 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Luxor Wavefront, LP(16)
|
| | | | 323,909 | | | | | | — | | | | | | 323,909 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Maven Investment Partners US Limited – New York Branch(17)
|
| | | | 150,000 | | | | | | — | | | | | | 150,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Monashee Pure Alpha SPV I LP (6)
|
| | | | 87,748 | | | | | | — | | | | | | 87,748 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Monashee Solitario Fund LP (6)
|
| | | | 101,802 | | | | | | — | | | | | | 101,802 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Morningstar Alternatives Fund(5)
|
| | | | 15,980 | | | | | | — | | | | | | 13,880 | | | | | | — | | | | | | 2,100 | | | | | | * | | | | | | — | | | | | | — | | |
Nineteen77 Global Merger Arbitrage Master Limited(18)
|
| | | | 346,125 | | | | | | — | | | | | | 346,125 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nineteen77 Global Merger Arbitrage Opportunity Fund(18)
|
| | | | 57,750 | | | | | | — | | | | | | 57,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nineteen77 Global Multi-Strategy Alpha Master Limited(18)
|
| | | | 346,125 | | | | | | — | | | | | | 346,125 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
PartnerSelect Alternative Strategies Fund(5)
|
| | | | 128,660 | | | | | | — | | | | | | 111,860 | | | | | | — | | | | | | 16,800 | | | | | | * | | | | | | — | | | | | | — | | |
Republic Services Alliance Group III, Inc.(19)
|
| | | | 1,500,000 | | | | | | — | | | | | | 1,500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Schonfeld Strategic 460 Fund LLC(20)
|
| | | | 500,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Scopus Asset Management, L.P.(21)
|
| | | | 500,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
SFL SPV I LLC(6)
|
| | | | 25,270 | | | | | | — | | | | | | 25,270 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Water Island Event-Driven Fund(5)
|
| | | | 47,410 | | | | | | — | | | | | | 41,210 | | | | | | — | | | | | | 6,200 | | | | | | * | | | | | | — | | | | | | — | | |
Water Island LevArb Fund, LP(5)
|
| | | | 14,910 | | | | | | — | | | | | | 13,010 | | | | | | — | | | | | | 1,900 | | | | | | * | | | | | | — | | | | | | — | | |
Water Island Long/Short Fund(5)
|
| | | | 4,640 | | | | | | — | | | | | | 4,040 | | | | | | — | | | | | | 600 | | | | | | * | | | | | | — | | | | | | — | | |
Water Island Merger Arbitrage Institutional Commingled Fund, LP(5)
|
| | | | 28,450 | | | | | | — | | | | | | 24,750 | | | | | | — | | | | | | 3,700 | | | | | | * | | | | | | — | | | | | | — | | |
Name of Selling Securityholder
|
| |
Shares of
Common Stock Beneficially Owned Prior to Offering |
| |
Warrants
Beneficially Owned Prior to Offering |
| |
Number of
Shares of Common Stock Being Offered(1) |
| |
Number of
Warrants Being Offered |
| |
Shares of Common
Stock Beneficially Owned After the Offered Shares of Common Stock are Sold |
| |
Warrants
Beneficially Owned After the Offered Warrants are Sold |
| ||||||||||||||||||||||||||||||
|
Number
|
| |
Percent
|
| |
Number
|
| |
Percent
|
| ||||||||||||||||||||||||||||||||||||||
Conversion Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Alta Fundamental Advisers LLC(22)
|
| | | | 869,445 | | | | | | 277,778 | | | | | | 469,445 | | | | | | 277,778 | | | | | | 400,000 | | | | | | * | | | | | | — | | | | | | — | | |
BlackRock, Inc.(23)
|
| | | | 938,888 | | | | | | 555,555 | | | | | | 938,888 | | | | | | 555,555 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
RMG Sponsor, LLC(24)
|
| | | | 8,941,667 | | | | | | 3,766,667 | | | | | | 8,941,667 | | | | | | 3,766,667 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Merger Consideration Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
BorgWarner Inc.(25)
|
| | | | 19,315,399 | | | | | | — | | | | | | 19,315,399 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lauren Webb(26)
|
| | | | 543,865 | | | | | | — | | | | | | 543,865 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael Patterson(27)
|
| | | | 14,241,222 | | | | | | — | | | | | | 14,241,222 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Management Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Abdul Kader El Srouji, Ph.D. (28)
|
| | | | 608,650 | | | | | | — | | | | | | 608,650 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Criswell Choi (29)
|
| | | | 207,955 | | | | | | — | | | | | | 207,955 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lionel E. Selwood, Jr.(30)
|
| | | | 720,405 | | | | | | — | | | | | | 720,405 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Philip Kassin(31)
|
| | | | 163,058 | | | | | | 163,058 | | | | | | 163,058 | | | | | | 163,058 | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
TOTAL: | | | | | 67,438,762 | | | | | | 5,636,624 | | | | | | 62,150,554 | | | | | | 4,763,058 | | | | | | 5,288,208 | | | | | | 4.2% | | | | | | 873,566 | | | | | | 5.7% | | |
Redemption Date
|
| |
Fair Market Value of Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
(period to expiration of Warrants)
|
| |
$10.00
|
| |
$11.00
|
| |
$12.00
|
| |
$13.00
|
| |
$14.00
|
| |
$15.00
|
| |
$16.00
|
| |
$17.00
|
| |
$18.00
|
| |||||||||||||||||||||||||||
57 months
|
| | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.365 | | |
54 months
|
| | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.365 | | |
51 months
|
| | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.365 | | |
48 months
|
| | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.365 | | |
45 months
|
| | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.365 | | |
42 months
|
| | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.364 | | |
39 months
|
| | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.364 | | |
36 months
|
| | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.364 | | |
33 months
|
| | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.364 | | |
30 months
|
| | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.364 | | |
Redemption Date
|
| |
Fair Market Value of Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
(period to expiration of Warrants)
|
| |
$10.00
|
| |
$11.00
|
| |
$12.00
|
| |
$13.00
|
| |
$14.00
|
| |
$15.00
|
| |
$16.00
|
| |
$17.00
|
| |
$18.00
|
| |||||||||||||||||||||||||||
27 months
|
| | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.364 | | |
24 months
|
| | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.364 | | |
21 months
|
| | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.364 | | |
18 months
|
| | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.363 | | |
15 months
|
| | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.363 | | |
12 months
|
| | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.363 | | |
9 months
|
| | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.362 | | |
6 months
|
| | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.362 | | |
3 months
|
| | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months
|
| | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | |
Page
|
| |||
Unaudited Condensed Financial Statements as of and for the three and nine months ended September 30, 2019 and 2020
|
| | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | |
Page
|
| |||
Audited Financial Statements as of and for the period from Inception to December 31, 2019 | | | | | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | |
| | |
Page
|
| |||
Unaudited Condensed Consolidated Financial Statements as of September 30, 2020 and December 31,
2019 and for the nine months ended September 30, 2020 and 2019 |
| | | | | | |
| | | | F-41 | | | |
| | | | F-43 | | | |
| | | | F-44 | | | |
| | | | F-45 | | | |
| | | | F-47 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements as of and for the years ended December 31, 2019 and 2018
|
| | | | | | |
| | | | F-61 | | | |
| | | | F-63 | | | |
| | | | F-65 | | | |
| | | | F-66 | | | |
| | | | F-67 | | | |
| | | | F-69 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Assets: | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 315,502 | | | | | $ | 1,175,207 | | |
Prepaid expenses and other assets
|
| | | | 144,188 | | | | | | 176,403 | | |
Total current assets
|
| | | | 459,690 | | | | | | 1,351,610 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 234,179,516 | | | | | | 233,232,730 | | |
Total Assets
|
| | | $ | 234,639,206 | | | | | $ | 234,584,340 | | |
Liabilities, Redeemable Class A Common Stock and Stockholders’ Equity: | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 6,490 | | | | | $ | 133,562 | | |
Accrued expenses
|
| | | | 202,344 | | | | | | 50,000 | | |
Franchise tax payable
|
| | | | 150,050 | | | | | | 200,000 | | |
Income tax payable
|
| | | | — | | | | | | 88,057 | | |
Total current liabilities
|
| | | | 358,884 | | | | | | 471,619 | | |
Deferred legal fees
|
| | | | 450,000 | | | | | | 450,000 | | |
Deferred underwriting commissions
|
| | | | 8,050,000 | | | | | | 8,050,000 | | |
Note payable
|
| | | | 41,666 | | | | | | — | | |
Total liabilities
|
| | | | 8,900,550 | | | | | | 8,971,619 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Class A common stock, $0.0001 par value; 22,073,865 and 22,061,272 shares subject to possible redemption at $10 per share at September 30, 2020 and 2019 respectively
|
| | | | 220,738,650 | | | | | | 220,612,720 | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized;
926,135 and 938,728 shares issued and outstanding (excluding 22,073,865 and 22,061,272 shares subject to possible redemption) at September 30, 2020 and 2019 respectively |
| | | | 93 | | | | | | 94 | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized;
5,750,000 shares issued and outstanding at September 30, 2020 and 2019 |
| | | | 575 | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 7,326,942 | | | | | | 4,749,168 | | |
Retained earnings (Accumulated deficit)
|
| | | | (2,327,604) | | | | | | 250,164 | | |
Total stockholders’ equity
|
| | | | 5,000,006 | | | | | | 5,000,001 | | |
Total Liabilities, Redeemable Class A Common Stock and Stockholders’ Equity
|
| | | $ | 234,639,206 | | | | | $ | 234,584,340 | | |
| | |
For the three months
ended September 30, |
| |
For the nine months
ended September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
General and administrative expenses
|
| | | $ | 589,274 | | | | | $ | 210,806 | | | | | $ | 1,049,053 | | | | | $ | 668,222 | | |
Franchise tax expense
|
| | | | 50,000 | | | | | | 50,000 | | | | | | 150,169 | | | | | | 150,000 | | |
Loss from operations
|
| | | | (639,274) | | | | | | (260,806) | | | | | | (1,199,222) | | | | | | (818,222) | | |
Interest income
|
| | | | 13 | | | | | | 8,839 | | | | | | 1,111 | | | | | | 22,725 | | |
Interest earned on restricted cash equivalents held in Trust Account
|
| | | | 28,551 | | | | | | — | | | | | | 1,153,171 | | | | | | — | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | — | | | | | | 1,142,497 | | | | | | — | | | | | | 3,299,930 | | |
Interest expense
|
| | | | (104) | | | | | | — | | | | | | (104) | | | | | | — | | |
(Loss) income before income tax expense (benefit)
|
| | | | (610,814) | | | | | | 890,530 | | | | | | (45,044) | | | | | | 2,504,433 | | |
Income tax expense (benefit)
|
| | | | (119,129) | | | | | | 232,380 | | | | | | (170,979) | | | | | | 668,514 | | |
Net (loss) income
|
| | | $ | (491,685) | | | | | $ | 658,150 | | | | | $ | 125,935 | | | | | $ | 1,835,919 | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 22,909,091 | | |
Basic and diluted net income per share, Class A
|
| | | $ | — | | | | | $ | 0.04 | | | | | $ | 0.05 | | | | | $ | 0.11 | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.10) | | | | | $ | (0.04) | | | | | $ | (0.18) | | | | | $ | (0.11) | | |
| | |
Common Stock
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Additional
Paid-In Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – December 31, 2019
|
| | | | 938,728 | | | | | $ | 94 | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 4,749,168 | | | | | $ | 250,164 | | | | | $ | 5,000,001 | | |
Class A common stock subject to possible
redemption |
| | | | (62,237) | | | | | | (6) | | | | | | — | | | | | | — | | | | | | 1,463,719 | | | | | | (2,086,083) | | | | | | (622,370) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 622,375 | | | | | | 622,375 | | |
Balance – March 31, 2020
|
| | | | 876,491 | | | | | | 88 | | | | | | 5,750,000 | | | | | | 575 | | | | | | 6,212,887 | | | | | | (1,213,544) | | | | | | 5,000,006 | | |
Class A common stock subject to possible
redemption |
| | | | 475 | | | | | | — | | | | | | — | | | | | | — | | | | | | 627,125 | | | | | | (622,375) | | | | | | 4,750 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,755) | | | | | | (4,755) | | |
Balance – June 30, 2020
|
| | | | 876,966 | | | | | | 88 | | | | | | 5,750,000 | | | | | | 575 | | | | | | 6,840,012 | | | | | | (1,840,674) | | | | | | 5,000,001 | | |
Class A common stock subject to possible
redemption |
| | | | 49,169 | | | | | | 5 | | | | | | — | | | | | | — | | | | | | 486,930 | | | | | | 4,755 | | | | | | 491,690 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (491,685) | | | | | | (491,685) | | |
Balance – September 30, 2020
|
| | | | 926,135 | | | | | $ | 93 | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 7,326,942 | | | | | $ | (2,327,604) | | | | | $ | 5,000,006 | | |
| | |
Common Stock
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Additional
Paid-In Capital |
| |
Earnings
(Accumulated Deficit) |
| |
Retained
Total Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (2,555) | | | | | $ | 22,445 | | |
Issuance of Class B common stock to Anchor Investors
|
| | | | — | | | | | | — | | | | | | 575,000 | | | | | | 58 | | | | | | 2,255 | | | | | | — | | | | | | 2,313 | | |
Forfeiture of Class B common stock from Sponsor
|
| | | | — | | | | | | — | | | | | | (575,000) | | | | | | (58) | | | | | | 58 | | | | | | — | | | | | | — | | |
Sale of units in initial public offering, gross
|
| | | | 23,000,000 | | | | | | 2,300 | | | | | | — | | | | | | — | | | | | | 229,997,700 | | | | | | — | | | | | | 230,000,000 | | |
Offering costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (13,448,120) | | | | | | — | | | | | | (13,448,120) | | |
Sale of private placement warrants to Sponsor and Anchor Investors in private placement
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,900,000 | | | | | | — | | | | | | 6,900,000 | | |
Class A common stock subject to
possible redemption |
| | | | (21,880,163) | | | | | | (2,188) | | | | | | — | | | | | | — | | | | | | (218,799,442) | | | | | | — | | | | | | (218,801,630) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 324,994 | | | | | | 324,994 | | |
Balance – March 31, 2019
|
| | | | 1,119,837 | | | | | | 112 | | | | | | 5,750,000 | | | | | | 575 | | | | | | 4,676,876 | | | | | | 322,439 | | | | |
|
5,000,002
|
| |
Class A common stock subject to
possible redemption |
| | | | (85,277) | | | | | | (9) | | | | | | — | | | | | | — | | | | | | (530,322) | | | | | | (322,439) | | | | | | (852,770) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 852,775 | | | | | | 852,775 | | |
Balance – June 30, 2019
|
| | | | 1,034,560 | | | | | | 103 | | | | | | 5,750,000 | | | | | | 575 | | | | | | 4,146,554 | | | | | | 852,775 | | | | | | 5,000,007 | | |
Class A common stock subject to
possible redemption |
| | | | (65,815) | | | | | | (6) | | | | | | — | | | | | | — | | | | | | 194,631 | | | | | | (852,775) | | | | | | (658,150) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 658,150 | | | | | | 658,150 | | |
Balance – September 30, 2019
|
| | | | 968,745 | | | | | $ | 97 | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 4,341,185 | | | | | $ | 658,150 | | | | | $ | 5,000,007 | | |
| | |
For the nine months ended
|
| |||||||||
| | |
September 30,
2020 |
| |
September 30,
2019 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 125,935 | | | | | $ | 1,835,919 | | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | — | | | | | | (3,299,930) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | 115,187 | | | | | | (172,974) | | |
Accounts payable
|
| | | | (127,072) | | | | | | 109,264 | | |
Accrued expenses
|
| | | | 152,344 | | | | | | 13,000 | | |
Due to related parties
|
| | | | — | | | | | | (40,381) | | |
Franchise tax payable
|
| | | | (49,950) | | | | | | 150,000 | | |
Income tax payable
|
| | | | (171,029) | | | | | | 591,258 | | |
Net cash provided by (used in) operating activities
|
| | | | 45,415 | | | | | | (813,844) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchase of marketable securities held in Trust Account
|
| | | | — | | | | | | (575,947,949) | | |
Proceeds received from sales, redemptions and maturities of marketable securities held in Trust Account
|
| | | | — | | | | | | 346,951,000 | | |
Net cash provided by investing activities
|
| | | | — | | | | | | (228,996,949) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds received under loans from related parties
|
| | | | — | | | | | | 38,501 | | |
Repayment of amounts due to related parties
|
| | | | — | | | | | | (113,501) | | |
Proceeds from issuance of Class B common stock to anchor investors
|
| | | | — | | | | | | 2,313 | | |
Proceeds received from initial public offering, gross
|
| | | | — | | | | | | 230,000,000 | | |
Proceeds received from private placement
|
| | | | — | | | | | | 6,900,000 | | |
Proceeds received under PPP loan from Small Business Administration
|
| | | | 41,666 | | | | | | — | | |
Offering costs paid
|
| | | | — | | | | | | (4,758,272) | | |
Net cash provided by financing activities
|
| | | | 41,666 | | | | | | 232,069,041 | | |
Net increase in cash and cash equivalents
|
| | | | 87,081 | | | | | | 2,258,248 | | |
Cash – beginning of the period
|
| | |
|
234,407,937
|
| | | |
|
37,044
|
| |
Cash and restricted cash equivalents held in Trust Account – end of the period
|
| | | $ | 234,495,018 | | | | | $ | 2,295,292 | | |
Supplemental disclosure of noncash investing and financing activities: | | | | | | | | | | | | | |
Offering costs included in accrued expenses
|
| | | $ | — | | | | | $ | 100,000 | | |
Forfeiture of Class B common stock from Sponsor
|
| | | $ | — | | | | | $ | 58 | | |
Deferred underwriting commissions in connection with the initial public offering
|
| | | $ | — | | | | | $ | 8,050,000 | | |
Deferred legal fees in connection with the initial public offering
|
| | | $ | — | | | | | $ | 150,000 | | |
Reclassification of deferred offering costs to equity upon completion of the initial public offering
|
| | | $ | — | | | | | $ | 670,220 | | |
Value of common stock subject to possible redemption
|
| | | $ | 125,930 | | | | | $ | 220,312,550 | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | 77,257 | | |
| | |
For the three months ended
|
| |
For the nine months ended
|
| ||||||||||||||||||
| | |
September 30,
2020 |
| |
September 30,
2019 |
| |
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||
Interest income on restricted cash equivalents held in Trust Account
|
| | | $ | 28,551 | | | | | $ | 5,321 | | | | | $ | 1,153,171 | | | | | $ | 12,025 | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | — | | | | | | 1,142,497 | | | | | | — | | | | | | 3,299,930 | | |
Expenses available to be paid with interest income from Trust
|
| | | | 69,129 | | | | | | (282,380) | | | | | | 20,810 | | | | | | (818,514) | | |
Net income available to holders of Class A common stock
|
| | | | 97,680 | | | | | | 865,438 | | | | | | 1,173,981 | | | | | | 2,493,441 | | |
Net (loss) income
|
| | | | (491,685) | | | | | | 658,150 | | | | | | 125,935 | | | | | | 1,835,919 | | |
Less: Income attributable to Class A common stock
|
| | | | (97,680) | | | | | | (865,438) | | | | | | (1,173,981) | | | | | | (2,493,441) | | |
Net loss attributable to holders of Class B common stock
|
| | | $ | (589,365) | | | | | $ | (207,288) | | | | | $ | (1,048,046) | | | | | $ | (657,522) | | |
Weighted average shares outstanding of Class A
common stock |
| | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 22,909,091 | | |
Basic and diluted net income per share,
Class A |
| | | $ | — | | | | | $ | 0.04 | | | | | $ | 0.05 | | | | | $ | 0.11 | | |
Weighted average shares outstanding of Class B
common stock |
| | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.10) | | | | | $ | (0.04) | | | | | $ | (0.18) | | | | | $ | (0.11) | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Cash
|
| | | $ | 315,502 | | | | | $ | 1,175,207 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 234,179,516 | | | | | | 233,232,730 | | |
Total cash and restricted cash equivalents held in Trust Account shown in the statement of cash flows
|
| | |
$
|
234,495,018
|
| | | |
$
|
234,407,937
|
| |
| Level 1 | | | — | | |
Quoted prices in active markets for identical assets or liabilities on the reporting date.
|
|
| Level 2 | | | — | | | Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and | |
| | | | | | | model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
|
Level 3
|
| |
—
|
| | Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Assets held in Trust: | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Cash equivalents – money market funds
|
| | | | 234,179,516 | | | | | | — | | | | | | — | | |
| | | | $ | 234,179,516 | | | | | $ | — | | | | | $ | — | | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Assets held in Trust: | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Cash equivalents – money market funds
|
| | | | 233,232,730 | | | | | | — | | | | | | — | | |
| | | | $ | 233,232,730 | | | | | $ | — | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets: | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 1,175,207 | | | | | $ | 37,044 | | |
Prepaid expenses and other assets
|
| | | | 176,403 | | | | | | 32,152 | | |
Total current assets
|
| | | | 1,351,610 | | | | | | 69,196 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 233,232,730 | | | | | | — | | |
Deferred offering costs associated with the initial public offering
|
| | | | — | | | | | | 411,948 | | |
Total Assets
|
| | | $ | 234,584,340 | | | | | $ | 481,144 | | |
Liabilities, Redeemable Class A Common Stock and Stockholders’ Equity: | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 133,562 | | | | | $ | 21,218 | | |
Accrued expenses
|
| | | | 50,000 | | | | | | 22,100 | | |
Due to related parties
|
| | | | — | | | | | | 115,381 | | |
Franchise tax payable
|
| | | | 200,000 | | | | | | — | | |
Income tax payable
|
| | | | 88,057 | | | | | | — | | |
Total current liabilities
|
| | | | 471,619 | | | | | | 158,699 | | |
Deferred legal fees
|
| | | | 450,000 | | | | | | 300,000 | | |
Deferred underwriting commissions
|
| | | | 8,050,000 | | | | | | — | | |
Total liabilities
|
| | | | 8,971,619 | | | | | | 458,699 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Class A common stock, $0.0001 par value; 22,061,272 and -0- shares subject to possible redemption at $10 per share at December 31, 2019 and 2018, respectively
|
| | | | 220,612,720 | | | | | | — | | |
Stockholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 938,728 and -0- shares issued and outstanding (excluding 22,061,272 and -0- shares subject to possible redemption) at December 31, 2019 and 2018, respectively
|
| | | | 94 | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,750,000 shares issued and outstanding at December 31, 2019 and 2018(1)
|
| | | | 575 | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 4,749,168 | | | | | | 24,425 | | |
Retained earnings (Accumulated deficit)
|
| | | | 250,164 | | | | | | (2,555) | | |
Total stockholders’ equity
|
| | | | 5,000,001 | | | | | | 22,445 | | |
Total Liabilities, Redeemable Class A Common Stock and Stockholders’ Equity
|
| | | $ | 234,584,340 | | | | | $ | 481,144 | | |
| | |
For the year ended
December 31, 2019 |
| |
For the period from
October 22, 2018 (date of inception) through December 31, 2018 |
| ||||||
General and administrative expenses
|
| | | $ | 893,066 | | | | | $ | 2,565 | | |
Franchise tax expense
|
| | | | 200,000 | | | | | | — | | |
Loss from operations
|
| | | | (1,093,066) | | | | | | (2,565) | | |
Interest income
|
| | | | 12,602 | | | | | | 10 | | |
Interest earned on restricted cash equivalents held in Trust Account
|
| | | | 398,809 | | | | | | — | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | 3,565,051 | | | | | | — | | |
Income (loss) before income tax expense
|
| | | | 2,883,396 | | | | | | (2,555) | | |
Income tax expense
|
| | | | 797,313 | | | | | | — | | |
Net income (loss)
|
| | | $ | 2,086,083 | | | | | $ | (2,555) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 22,934,985 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.13 | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 5,750,000 | | | | | | 5,000,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.15) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Additional
Paid-In Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – October 22, 2018 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor(1)
|
| | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,555) | | | | | | (2,555) | | |
Balance – December 31, 2018
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (2,555) | | | | | $ | 22,445 | | |
Issuance of Class B common stock to Anchor Investors
|
| | | | — | | | | | | — | | | | | | 575,000 | | | | | | 58 | | | | | | 2,255 | | | | | | — | | | | | | 2,313 | | |
Forfeiture of Class B common stock from Sponsor
|
| | | | — | | | | | | — | | | | | | (575,000) | | | | | | (58) | | | | | | 58 | | | | | | — | | | | | | — | | |
Sale of units in initial public offering, gross
|
| | | | 23,000,000 | | | | | | 2,300 | | | | | | — | | | | | | — | | | | | | 229,997,700 | | | | | | — | | | | | | 230,000,000 | | |
Offering costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (13,398,120) | | | | | | — | | | | | | (13,398,120) | | |
Sale of private placement warrants to Sponsor and Anchor Investors in private placement
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,900,000 | | | | | | — | | | | | | 6,900,000 | | |
Class A common stock subject to
possible redemption |
| | | | (22,061,272) | | | | | | (2,206) | | | | | | — | | | | | | — | | | | | | (218,777,150) | | | | | | (1,833,364) | | | | | | (220,612,720) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,086,083 | | | | | | 2,086,083 | | |
Balance – December 31, 2019
|
| | | | 938,728 | | | | | | 94 | | | | | | 5,750,000 | | | | | | 575 | | | | | | 4,749,168 | | | | | | 250,164 | | | | | | 5,000,001 | | |
| | |
For the year ended
December 31, 2019 |
| |
For the period from
October 22, 2018 (date of inception) through December 31, 2018 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 2,086,083 | | | | | $ | (2,555) | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | (3,565,051) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | (144,251) | | | | | | (3,246) | | |
Accounts payable
|
| | | | 112,344 | | | | | | 5,721 | | |
Franchise tax payable
|
| | | | 200,000 | | | | | | — | | |
Income tax payable
|
| | | | 88,057 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (1,222,818) | | | | | | (80) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchase of marketable securities held in Trust Account
|
| | | | (575,947,949) | | | | | | — | | |
Proceeds received from sales, redemptions and maturities of marketable securities held in Trust Account
|
| | | | 579,513,000 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 3,565,051 | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds received under loans from related parties
|
| | | | 38,501 | | | | | | 75,000 | | |
Repayment of amounts due to related parties
|
| | | | (153,882) | | | | | | — | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from issuance of Class B common stock to anchor investors
|
| | | | 2,313 | | | | | | — | | |
Proceeds received from initial public offering, gross
|
| | | | 230,000,000 | | | | | | — | | |
Proceeds received from private placement
|
| | | | 6,900,000 | | | | | | — | | |
Offering costs paid
|
| | | | (4,758,272) | | | | | | (62,876) | | |
Net cash provided by financing activities
|
| | | | 232,028,660 | | | | | | 37,124 | | |
Net increase in cash and cash equivalents
|
| | | | 234,370,893 | | | | | | 37,044 | | |
Cash – beginning of the period
|
| | |
|
37,044
|
| | | |
|
—
|
| |
Cash and restricted cash equivalents held in Trust Account – end of the period
|
| | | $ | 234,407,937 | | | | | $ | 37,044 | | |
Supplemental disclosure of noncash investing and financing activities:
|
| | | | | | | | | | | | |
Offering costs included in accrued expenses
|
| | | $ | 50,000 | | | | | $ | 22,100 | | |
Offering costs included in accounts payable
|
| | | $ | — | | | | | $ | 15,497 | | |
Offering costs included in loans from related parties
|
| | | $ | — | | | | | $ | 11,475 | | |
Prepaid and other expenses included in loans from related parties
|
| | | $ | — | | | | | $ | 28,906 | | |
Forfeiture of Class B common stock from Sponsor
|
| | | $ | 58 | | | | | $ | — | | |
Deferred underwriting commissions in connection with the initial public offering
|
| | | $ | 8,050,000 | | | | | $ | — | | |
Deferred legal fees in connection with the initial public offering
|
| | | $ | 150,000 | | | | | $ | 300,000 | | |
Reclassification of deferred offering costs to equity upon completion of the initial public offering
|
| | | $ | 461,948 | | | | | $ | — | | |
Value of common stock subject to possible redemption
|
| | | $ | 220,612,720 | | | | | $ | — | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 709,257 | | | | | $ | — | | |
| | |
For the year ended
December 31, 2019 |
| |
For the period from
October 22, 2018 (date of inception) to December 31, 2018 |
| ||||||
Interest income on restricted cash equivalents held in Trust Account
|
| | | $ | 398,809 | | | | | $ | — | | |
Gain on marketable securities (net), and dividends held in Trust Account
|
| | | | 3,565,051 | | | | | | — | | |
Expenses available to be paid with interest income from Trust
|
| | | | (997,313) | | | | | | — | | |
Net income available to holders of Class A common stock
|
| | | | 2,966,547 | | | | | | — | | |
Net income (loss)
|
| | | | 2,086,083 | | | | | $ | (2,555) | | |
Less: Income attributable to Class A common stock
|
| | | | (2,966,547) | | | | | | — | | |
Net loss attributable to holders of Class B common stock
|
| | | $ | (880,464) | | | | | $ | (2,555) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 22,934,985 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.13 | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 5,750,000 | | | | | | 5,000,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.15) | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cash
|
| | | $ | 1,175,207 | | | | | $ | 37,044 | | |
Restricted cash equivalents held in Trust Account
|
| | | | 233,232,730 | | | | | | — | | |
Total cash and restricted cash equivalents held in Trust Account shown in the statement of cash flows
|
| | |
$
|
234,407,937
|
| | | |
$
|
37,044
|
| |
|
| Level 1 | | | — | | |
Quoted prices in active markets for identical assets or liabilities on the reporting date.
|
|
| Level 2 | | | — | | | Pricing inputs are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
| Level 3 | | | — | | | Pricing inputs are generally unobservable and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require management’s judgment or estimation of assumptions that market participants would use in pricing the assets or liabilities. The fair values are therefore determined using factors that involve considerable judgment and interpretations, including but not limited to private and public comparables, third-party appraisals, discounted cash flow models, and fund manager estimates. | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Assets held in Trust:
|
| | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Cash equivalents – money market funds
|
| | | | 233,232,730 | | | | | | — | | | | | | — | | |
| | | | $ | 233,232,730 | | | | | $ | — | | | | | $ | — | | |
| | |
For the year ended
December 31, 2019 |
| |
For the period from
October 22, 2018 (date of inception) to December 31, 2018 |
| ||||||
Current | | | | | | | | | | | | | |
Federal
|
| | | $ | 793,057 | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | |
Valuation allowance
|
| | | | — | | | | | | — | | |
Income tax provision
|
| | | $ | 793,057 | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
StartUp/Organization Costs
|
| | | $ | 185,966 | | | | | $ | 539 | | |
Total deferred tax assets
|
| | | | 185,966 | | | | | | 539 | | |
Valuation allowance
|
| | | | (185,966) | | | | | | (539) | | |
Deferred tax asset, net of allowance
|
| | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Statutory Federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
Meals & entertainment
|
| | | | 0.1% | | | | | | 0.0% | | |
Change in fair value of warrant liabilities
|
| | | | 0.0% | | | | | | 0.0% | | |
Change in Valuation Allowance
|
| | | | 6.4% | | | | | | (21.0)% | | |
Income Taxes Provision (Benefit)
|
| | | | 27.5% | | | | | | 0.0% | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 246 | | | | | $ | 429 | | |
Accounts receivable – net of allowance for doubtful accounts (2020 – $238; 2019 – $238)
|
| | | | 996 | | | | | | 307 | | |
Inventories – net
|
| | | | 8,572 | | | | | | 6,670 | | |
Insurance receivable
|
| | | | 6,000 | | | | | | 6,000 | | |
Deferred costs
|
| | | | 2,357 | | | | | | — | | |
Prepaid expenses
|
| | | | 1,834 | | | | | | 1,616 | | |
Total current assets
|
| | | | 20,005 | | | | | | 15,022 | | |
RESTRICTED CASH
|
| | | | 1,500 | | | | | | 1,500 | | |
PROPERTY, PLANT AND EQUIPMENT – Net
|
| | | | 5,316 | | | | | | 6,573 | | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
|
| | | | 1,208 | | | | | | 2,480 | | |
OPERATING LEASE RIGHT-OF-USE ASSETS
|
| | | | 5,531 | | | | | | 5,707 | | |
DEFERRED OFFERING COSTS
|
| | | | 2,804 | | | | | | — | | |
OTHER NONCURRENT ASSETS
|
| | | | 1,154 | | | | | | 1,296 | | |
TOTAL ASSETS
|
| | | $ | 37,518 | | | | | $ | 32,578 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 10,348 | | | | | $ | 5,811 | | |
Accrued expenses
|
| | | | 3,923 | | | | | | 1,105 | | |
Contract liabilities
|
| | | | 3,104 | | | | | | 289 | | |
Current maturities of long-term debt
|
| | | | 8,437 | | | | | | 5,000 | | |
Current maturities of long-term debt to related parties
|
| | | | 2,850 | | | | | | 100 | | |
Operating lease liabilities – current
|
| | | | 853 | | | | | | 851 | | |
Legal settlement payable
|
| | | | 6,000 | | | | | | 6,000 | | |
Accrued interest
|
| | | | 407 | | | | | | 92 | | |
Other current related party liability
|
| | | | 1,614 | | | | | | — | | |
Other current liabilities
|
| | | | 314 | | | | | | 315 | | |
Total current liabilities
|
| | | | 37,850 | | | | | | 19,563 | | |
COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | | | | | | |
LONG-TERM DEBT – Net of current portion
|
| | | | 8,712 | | | | | | 5,225 | | |
LONG-TERM ACCRUED INTEREST
|
| | | | 429 | | | | | | — | | |
OPERATING LEASE LIABILITIES – Noncurrent
|
| | | | 4,782 | | | | | | 4,949 | | |
OTHER NONCURRENT LIABILITIES
|
| | | | 56 | | | | | | 268 | | |
Total liabilities
|
| | | | 51,829 | | | | | | 30,005 | | |
PREFERRED STOCK: | | | | | | | | | | | | | |
Series seed (par value $0.00001, 46,729,574 and 69,555,890 shares authorized as of
September 30, 2020 and December 31, 2019, 44,900,782 shares issued and outstanding, with a liquidation preference of $10,087 in-total at September 30, 2020 and December 31, 2019) |
| | | | 7,369 | | | | | | 7,369 | | |
Series A-1 (par value $0.00001, 137,741,046 shares authorized, issued and outstanding,
with a liquidation preference of $50,000 in-total at September 30, 2020 and December 31, 2019) |
| | | | 49,762 | | | | | | 49,762 | | |
Series A-2 (par value $0.00001, 56,016,884 shares authorized, 54,918,474 shares issued
and outstanding, with a liquidation preference of $19,935 in-total at September 30, 2020 and December 31, 2019) |
| | | | 19,818 | | | | | | 19,818 | | |
Series A-3 (par value $0.00001, 29,161,738 shares authorized, issued and outstanding,
with a liquidation preference of $6,351 in-total at September 30, 2020 and December 31, 2019) |
| | | | 8,698 | | | | | | 8,698 | | |
Series A-4 (par value $0.00001, 93,465,679 shares authorized, issued and outstanding,
with a liquidation preference of $16,338 in-total at September 30, 2020 and December 31, 2019) |
| | | | 17,933 | | | | | | 17,933 | | |
Series A-5 (par value $0.00001, 32,000,000 shares authorized, issued and outstanding,
with a liquidation preference of $4,000 in-total at September 30, 2020 and no shares authorized, issued or outstanding at December 31, 2019) |
| | | | 4,000 | | | | | | — | | |
Total preferred stock
|
| | | | 107,580 | | | | | | 103,580 | | |
STOCKHOLDERS’ DEFICIT: | | | | | | | | | | | | | |
Class A common ($0.00001 par value, 800,000,000 and 725,000,000 shares authorized,
122,353,887 and 119,949,562 issued and outstanding as of September 30, 2020 and December 31, 2019) |
| | | | 1 | | | | | | 1 | | |
Class B common ($0.00001 par value, 108,297,023 shares authorized, 107,295,776 shares issued and outstanding as of September 30, 2020 and December 31, 2019)
|
| | | | 1 | | | | | | 1 | | |
Notes receivable from stockholders
|
| | | | (9,175) | | | | | | (9,175) | | |
Additional paid-in capital
|
| | | | 79,818 | | | | | | 77,992 | | |
Accumulated deficit
|
| | | | (192,536) | | | | | | (169,826) | | |
Total stockholders’ deficit
|
| | | | (121,891) | | | | | | (101,007) | | |
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’
DEFICIT |
| | | $ | 37,518 | | | | | $ | 32,578 | | |
| | |
For the Nine Months
Ended September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
REVENUE: | | | | | | | | | | | | | |
Product revenue
|
| | | $ | 2,097 | | | | | $ | 3,097 | | |
Service revenue
|
| | | | 202 | | | | | | 1,051 | | |
Related party service revenue
|
| | | | 2,027 | | | | | | 1,209 | | |
Total revenue
|
| | | | 4,326 | | | | | | 5,357 | | |
COST OF SALES | | | | | | | | | | | | | |
Product cost
|
| | | | 5,182 | | | | | | 8,779 | | |
Service cost
|
| | | | 919 | | | | | | 868 | | |
Related party service cost
|
| | | | 1,750 | | | | | | 1,028 | | |
Total cost of sales
|
| | | | 7,851 | | | | | | 10,675 | | |
GROSS LOSS
|
| | | | (3,525) | | | | | | (5,318) | | |
OPERATING EXPENSES: | | | | | | | | | | | | | |
Research and development
|
| | | | 5,213 | | | | | | 9,697 | | |
Selling, general, and administrative
|
| | | | 10,303 | | | | | | 11,205 | | |
Total operating expenses
|
| | | | 15,516 | | | | | | 20,902 | | |
OPERATING LOSS
|
| | | | (19,041) | | | | | | (26,220) | | |
INTEREST EXPENSE
|
| | | | (783) | | | | | | (10,848) | | |
INTEREST INCOME
|
| | | | — | | | | | | 266 | | |
LOSS ON EXTINGUISHMENT OF DEBT
|
| | | | — | | | | | | (9,181) | | |
OTHER EXPENSE
|
| | | | (1,614) | | | | | | — | | |
NET LOSS BEFORE INCOME TAXES AND EQUITY (LOSS) IN AFFILIATES
|
| | | | (21,438) | | | | | | (45,983) | | |
EQUITY (LOSS) IN AFFILIATES
|
| | | | (1,272) | | | | | | (669) | | |
INCOME TAX EXPENSE
|
| | | | — | | | | | | (1) | | |
NET LOSS
|
| | | $ | (22,710) | | | | | $ | (46,653) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
APIC
|
| |
Notes
Receivable from Stockholders |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Par
|
| |
Shares
|
| |
Par
|
| ||||||||||||||||||||||||||||||||||||
BALANCE – December 31, 2018
|
| | | | 94,860,482 | | | | | $ | 1 | | | | | | 106,552,443 | | | | | $ | 1 | | | | | $ | 62,297 | | | | | $ | (52) | | | | | $ | (109,972) | | | | | $ | (47,725) | | |
Issuance of Class A common stock
|
| | | | 32,502,429 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,729 | | | | | | — | | | | | | — | | | | | | 11,729 | | |
Issuance of detachable warrants associated with convertible notes, inclusive of beneficial conversion amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,187 | | | | | | — | | | | | | — | | | | | | 2,187 | | |
Convertible note issuance premium
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,318 | | | | | | — | | | | | | — | | | | | | 5,318 | | |
Dividend to preferred stockholders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,090) | | | | | | — | | | | | | — | | | | | | (4,090) | | |
Stockholder note receivable
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,123) | | | | | | — | | | | | | (9,123) | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 743,333 | | | | | | — | | | | | | 949 | | | | | | — | | | | | | — | | | | | | 949 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (46,653) | | | | | | (46,653) | | |
BALANCE – September 30, 2019
|
| | | | 127,362,911 | | | | | $ | 1 | | | | | | 107,295,776 | | | | | $ | 1 | | | | | $ | 78,390 | | | | | $ | (9,175) | | | | | $ | (156,625) | | | | | $ | (87,408) | | |
BALANCE – December 31, 2019
|
| | | | 119,949,562 | | | | | | 1 | | | | | | 107,295,776 | | | | | | 1 | | | | | | 77,992 | | | | | | (9,175) | | | | | | (169,826) | | | | | | (101,007) | | |
Issuance of Class A common stock
|
| | | | 2,404,325 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,042 | | | | | | — | | | | | | — | | | | | | 1,042 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 784 | | | | | | — | | | | | | — | | | | | | 784 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (22,710) | | | | | | (22,710) | | |
BALANCE – September 30, 2020
|
| | | | 122,353,887 | | | | | $ | 1 | | | | | | 107,295,776 | | | | | $ | 1 | | | | | $ | 79,818 | | | | | $ | (9,175) | | | | | $ | (192,536) | | | | | $ | (121,891) | | |
| | |
For the Nine Months
Ended September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (22,710) | | | | | $ | (46,653) | | |
Adjustments to reconcile net loss to net cash used for operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1,404 | | | | | | 1,387 | | |
Stock-based compensation
|
| | | | 784 | | | | | | 949 | | |
Inventory provision
|
| | | | — | | | | | | 880 | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | 9,181 | | |
Interest expense attributable to amortization of debt discount
|
| | | | — | | | | | | 5,585 | | |
Loss on equity method investment
|
| | | | 1,272 | | | | | | 669 | | |
Non-cash lease expense – operating leases
|
| | | | 176 | | | | | | 157 | | |
Non-cash lease expense – financing leases
|
| | | | 211 | | | | | | — | | |
Derivative expense
|
| | | | 1,614 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (689) | | | | | | (1,735) | | |
Inventories
|
| | | | (1,902) | | | | | | (2,968) | | |
Prepaid expenses
|
| | | | (218) | | | | | | (568) | | |
Accounts payable
|
| | | | 2,734 | | | | | | (1,743) | | |
Interest accrued on notes payable
|
| | | | 741 | | | | | | 362 | | |
Accrued expenses
|
| | | | 2,163 | | | | | | (1,636) | | |
Contract liabilities
|
| | | | 458 | | | | | | (1,403) | | |
Operating lease liabilities
|
| | | | (165) | | | | | | (133) | | |
Other – net
|
| | | | 1 | | | | | | (2) | | |
Net cash used for operating activities
|
| | | | (14,126) | | | | | | (37,671) | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (491) | | | | | | (844) | | |
Other – net
|
| | | | (70) | | | | | | 1 | | |
Net cash used for investing activities
|
| | | | (561) | | | | | | (843) | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Issuance of convertible notes
|
| | | | 1,924 | | | | | | 225 | | |
Issuance of term notes
|
| | | | 4,450 | | | | | | 16,900 | | |
Proceeds from PPP loan
|
| | | | 3,300 | | | | | | — | | |
Repayment of term and convertible notes
|
| | | | — | | | | | | (25,624) | | |
Issuance of line of credit
|
| | | | — | | | | | | 32,000 | | |
Repayment of line of credit
|
| | | | — | | | | | | (32,000) | | |
Issuance of preferred stock – net
|
| | | | 4,000 | | | | | | 56,489 | | |
Redemption of preferred stock
|
| | | | — | | | | | | (4,046) | | |
Dividend to preferred stockholders
|
| | | | — | | | | | | (4,090) | | |
Issuance of common stock
|
| | | | 1,027 | | | | | | — | | |
Exercise of stock options
|
| | | | 15 | | | | | | 41 | | |
Exercise of stock warrants
|
| | | | — | | | | | | 2,565 | | |
Payment for financed capital expenditures
|
| | | | — | | | | | | (165) | | |
Principal portion of finance lease liabilities
|
| | | | (212) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 14,504 | | | | | | 42,295 | | |
| | |
For the Nine Months
Ended September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
| | | $ | (183) | | | | | $ | 3,781 | | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of
period |
| | | | 1,929 | | | | | | 1,511 | | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period
|
| | | $ | 1,746 | | | | | $ | 5,292 | | |
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 246 | | | | | $ | 3,792 | | |
Restricted cash
|
| | | | 1,500 | | | | | | 1,500 | | |
Total cash, cash equivalents, and restricted cash
|
| | | $ | 1,746 | | | | | $ | 5,292 | | |
SUPPLEMENTAL CASH FLOW INFORMATION: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | — | | | | | $ | 4,486 | | |
Cash paid for income taxes
|
| | | $ | — | | | | | $ | 1 | | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
| | | | | | | | | | | | |
Purchases of property, plant and equipment in accounts payable at period end
|
| | | $ | 686 | | | | | $ | 750 | | |
Deferred offering costs in accounts payable and accrued expenses at period end
|
| | | $ | 2,804 | | | | | $ | — | | |
Conversion of promissory notes and accrued interest to preferred stock
|
| | | $ | — | | | | | $ | 31,846 | | |
Allocation of debt proceeds to beneficial conversion feature
|
| | | $ | — | | | | | $ | 329 | | |
Allocation of debt proceeds to stock warrants
|
| | | $ | — | | | | | $ | 2,047 | | |
Exercise of warrants in exchange for note receivable
|
| | | $ | — | | | | | $ | 9,123 | | |
Investment in Joint Venture
|
| | | $ | — | | | | | $ | 4,000 | | |
Issuance of preferred stock
|
| | | $ | — | | | | | $ | 4,000 | | |
|
Balance on December 31, 2019
|
| | | $ | 289 | | |
|
Revenue recognized
|
| | | | (372) | | |
|
Increase due to billings
|
| | | | 3,187 | | |
|
Balance on September 30, 2020
|
| | | $ | 3,104 | | |
| | |
2020
|
| |||||||||||||||
| | |
Romeo Power
North America |
| |
Joint Venture
Support |
| |
Total
|
| |||||||||
Products: | | | | | | | | | | | | | | | | | | | |
Modules
|
| | | $ | 2,097 | | | | | $ | — | | | | | $ | 2,097 | | |
Packs
|
| | | | — | | | | | | — | | | | | | — | | |
Total products revenue
|
| | | | 2,097 | | | | | | — | | | | | | 2,097 | | |
Services: | | | | | | | | | | | | | | | | | | | |
Non-recurring engineering and prototype
|
| | | | 202 | | | | | | — | | | | | | 202 | | |
Joint Venture support
|
| | | | — | | | | | | 2,027 | | | | | | 2,027 | | |
Total service revenue
|
| | | | 202 | | | | | | 2,027 | | | | | | 2,229 | | |
Total revenue
|
| | | $ | 2,299 | | | | | $ | 2,027 | | | | | $ | 4,326 | | |
|
| | |
2019
|
| |||||||||||||||
| | |
Romeo Power
North America |
| |
Joint Venture
Support |
| |
Total
|
| |||||||||
Products: | | | | | | | | | | | | | | | | | | | |
Modules
|
| | | $ | 2,966 | | | | | $ | — | | | | | $ | 2,966 | | |
Packs
|
| | | | 131 | | | | | | — | | | | | | 131 | | |
Total products revenue
|
| | | | 3,097 | | | | | | — | | | | | | 3,097 | | |
Services: | | | | | | | | | | | | | | | | | | | |
Non-recurring engineering and prototype
|
| | | | 1,051 | | | | | | — | | | | | | 1,051 | | |
Joint Venture support
|
| | | | — | | | | | | 1,209 | | | | | | 1,209 | | |
Total service revenue
|
| | | | 1,051 | | | | | | 1,209 | | | | | | 2,260 | | |
Total revenue
|
| | | $ | 4,148 | | | | | $ | 1,209 | | | | | $ | 5,357 | | |
| | |
2020
|
| |
2019
|
| ||||||
Point in time
|
| | | $ | 2,299 | | | | | $ | 4,148 | | |
Over time
|
| | | | 2,027 | | | | | | 1,209 | | |
Total
|
| | | $ | 4,326 | | | | | $ | 5,357 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Raw materials
|
| | | $ | 6,517 | | | | | $ | 5,535 | | |
Work in process
|
| | | | 1,063 | | | | | | 462 | | |
Finished goods
|
| | | | 992 | | | | | | 673 | | |
Total Inventory
|
| | | $ | 8,572 | | | | | $ | 6,670 | | |
| | |
2020
|
| |
2019
|
| ||||||
Convertible notes: | | | | | | | | | | | | | |
Issued 2019 and 2020, interest rate fixed at 8%. Principal and interest are payable at
maturity in various dates in 2022 and 2023. Conversion price is the lesser of the next equity financing or $0.4339 per share |
| | | $ | 6,000 | | | | | $ | 4,200 | | |
Issued 2019 and 2020, interest rate fixed at 8%. Principal and interest are payable at
maturity in December 2022. Conversion price is $0.4339 per share |
| | | | 1,149 | | | | | | 1,025 | | |
Total convertible notes
|
| | | | 7,149 | | | | | | 5,225 | | |
Term notes: | | | | | | | | | | | | | |
Issued 2019 and 2020, interest rate fixed at 0.25% – 1.58%. Principal and interest are
payable at maturity in various dates in 2020 and 2021 |
| | | | 4,550 | | | | | | 100 | | |
Issued 2019, interest rate fixed at 8% and modified to 10% in 2020. Principal and interest are payable at maturity in February 2021
|
| | | | 5,000 | | | | | | 5,000 | | |
Total term notes
|
| | | | 9,550 | | | | | | 5,100 | | |
Paycheck Protection Program: | | | | | | | | | | | | | |
Issued June 2020, interest rate fixed at 1%. Principal and interest are due in installments starting 6 months after issuance through maturity in June 2022
|
| | | | 3,300 | | | | | | — | | |
Total short-term and long-term debt
|
| | | | 19,999 | | | | | | 10,325 | | |
Less current portion to related parties
|
| | | | (2,850) | | | | | | (100) | | |
Less current portion
|
| | | | (8,437) | | | | | | (5,000) | | |
Total long-term debt
|
| | | $ | 8,712 | | | | | $ | 5,225 | | |
| | |
Series Seed
|
| |
Series A-1
|
| |
Series A-2
|
| |
Series A-3
|
| |
Series A-4
|
| |
Series A-5
|
| | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||||||||||||||
Balance – December 31, 2019
|
| | | | 44,900,782 | | | | | $ | 7,369 | | | | | | 137,741,046 | | | | | $ | 49,762 | | | | | | 54,918,474 | | | | | $ | 19,818 | | | | | | 29,161,738 | | | | | $ | 8,698 | | | | | | 93,465,679 | | | | | $ | 17,933 | | | | | | — | | | | | $ | — | | | | | $ | 103,580 | | |
Issuance of Series A Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 32,000,000 | | | | | | 4,000 | | | | | | 4,000 | | |
Balance – September 30,
2020 |
| | | | 44,900,782 | | | | | $ | 7,369 | | | | | | 137,741,046 | | | | | $ | 49,762 | | | | | | 54,918,474 | | | | | $ | 19,818 | | | | | | 29,161,738 | | | | | $ | 8,698 | | | | | | 93,465,679 | | | | | $ | 17,933 | | | | | | 32,000,000 | | | | | $ | 4,000 | | | | | $ | 107,580 | | |
|
Fair Value Assumptions
|
| |
September 30, 2020
|
| |
September 30, 2019
|
|
Risk-free interest rate
|
| |
0.28% – 0.92%
|
| |
2.28%
|
|
Expected term (in years)
|
| |
5.5 – 6.5
|
| |
6.5
|
|
Expected volatility
|
| |
60% – 77%
|
| |
87%
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Grant date fair value per share
|
| |
$0.18 – $1.05
|
| |
$0.19
|
|
Share Price
|
| |
Cumulative Number of
Shares that will Vest |
| |||
$0.8140 – $1.0889 | | | |
|
7,613,536
|
| |
$1.0890 – $1.4519 | | | |
|
15,227,071
|
| |
$1.4520 – $1.8149 | | | |
|
26,647,345
|
| |
$1.8150
|
| | | | 38,067,678 | | |
| | |
For the Nine Months
Ended September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cost of Sales
|
| | |
$
|
277
|
| | | |
$
|
113
|
| |
Selling, general, administrative
|
| | | | 507 | | | | | | 836 | | |
Total
|
| | | $ | 784 | | | | | $ | 949 | | |
| | |
For the Nine Months
Ended September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net sales: | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | 2,299 | | | | | $ | 4,148 | | |
Joint Venture Support
|
| | | | 2,027 | | | | | | 1,209 | | |
Total net sales
|
| | | $ | 4,326 | | | | | $ | 5,357 | | |
Gross profit (loss): | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | (3,802) | | | | | $ | (5,499) | | |
Joint Venture Support
|
| | | | 277 | | | | | | 181 | | |
Total business segment gross profit (loss)
|
| | | $ | (3,525) | | | | | $ | (5,318) | | |
| | |
Principal
Amount |
| |
Maturity Date
|
| |||
Stockholder 1
|
| | | $ | 4,562 | | | |
July 7, 2022
|
|
Stockholder 2
|
| | | | 4,561 | | | |
August 19, 2022
|
|
Total
|
| | | $ | 9,123 | | | | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Convertible notes
|
| | | $ | — | | | | | $ | — | | |
Term notes
|
| | | | 850 | | | | | | 100 | | |
Total
|
| | | $ | 850 | | | | | $ | 100 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Convertible notes
|
| | | $ | 3,000 | | | | | $ | 3,000 | | |
Term notes
|
| | | | — | | | | | | — | | |
Total
|
| | | $ | 3,000 | | | | | $ | 3,000 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Convertible notes
|
| | | $ | 2,000 | | | | | $ | 2,000 | | |
Term notes*
|
| | | | 2,850 | | | | | | 100 | | |
Total
|
| | | $ | 4,850 | | | | | $ | 2,100 | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 429 | | | | | $ | 11 | | |
Accounts receivable – net of allowance for doubtful accounts (2019 – $238; 2018 – $238)
|
| | | | 307 | | | | | | 58 | | |
Inventories – net
|
| | | | 6,670 | | | | | | 5,843 | | |
Insurance receivable
|
| | | | 6,000 | | | | | | — | | |
Deferred costs
|
| | | | — | | | | | | 707 | | |
Prepaid expenses
|
| | | | 1,616 | | | | | | 188 | | |
Total current assets
|
| | | | 15,022 | | | | | | 6,807 | | |
RESTRICTED CASH
|
| | | | 1,500 | | | | | | 1,500 | | |
PROPERTY, PLANT AND EQUIPMENT – Net
|
| | | | 6,573 | | | | | | 7,653 | | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
|
| | | | 2,480 | | | | | | — | | |
OPERATING LEASE RIGHT-OF-USE ASSETS
|
| | | | 5,707 | | | | | | — | | |
LONG-TERM INSURANCE RECEIVABLE
|
| | | | — | | | | | | 6,000 | | |
OTHER NONCURRENT ASSETS
|
| | | | 1,296 | | | | | | 483 | | |
TOTAL ASSETS
|
| | | $ | 32,578 | | | | | $ | 22,443 | | |
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
CURRENT LIABILITIES: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 5,811 | | | | | $ | 8,302 | | |
Accrued expenses
|
| | | | 1,105 | | | | | | 2,948 | | |
Contract liabilities
|
| | | | 289 | | | | | | 1,894 | | |
Current maturities of long-term debt
|
| | | | 5,000 | | | | | | 28,801 | | |
Current maturities of long-term debt to related parties
|
| | | | 100 | | | | | | 5,733 | | |
Operating lease liabilities – current
|
| | | | 851 | | | | | | — | | |
Legal settlement payable
|
| | | | 6,000 | | | | | | — | | |
Accrued interest
|
| | | | 92 | | | | | | 3,575 | | |
Other current liabilities
|
| | | | 315 | | | | | | — | | |
Total current liabilities
|
| | | | 19,563 | | | | | | 51,253 | | |
COMMITMENTS AND CONTINGENCIES (Note 13) | | | | | | | | | | | | | |
LONG-TERM DEBT – Net of current portion
|
| | | | 5,225 | | | | | | — | | |
LONG-TERM DEBT TO RELATED PARTIES – Net of current portion
|
| | | | — | | | | | | 1,500 | | |
LONG-TERM LEGAL SETTLEMENT PAYABLE
|
| | | | — | | | | | | 6,000 | | |
OPERATING LEASE LIABILITIES – Noncurrent
|
| | | | 4,949 | | | | | | — | | |
OTHER NONCURRENT LIABILITIES
|
| | | | 268 | | | | | | — | | |
Total liabilities
|
| | | | 30,005 | | | | | | 58,753 | | |
PREFERRED STOCK: | | | | | | | | | | | | | |
Series seed (par value $0.00001, 69,555,890 shares authorized, 44,900,782 shares issued and outstanding, with a liquidation preference of $10,087 in-total at December 31,2019 and 70,000,000 shares authorized, 69,555,900 shares issued and outstanding with a liquidation preference of $15,626 in total at December 31,2018)
|
| | | | 7,369 | | | | | | 11,415 | | |
Series A-1 (par value $0.00001, 137,741,046 shares authorized, issued and outstanding, with a liquidation preference of $50,000 in-total at December 31, 2019 and no shares authorized, issued or outstanding at December 2018)
|
| | | | 49,762 | | | | | | — | | |
Series A-2 (par value $0.00001, 56,016,884 shares authorized, 54,918,474 shares issued and outstanding, with a liquidation preference of $19,935 in-total at December 31, 2019 and no shares authorized, issued or outstanding at December 2018)
|
| | | | 19,818 | | | | | | — | | |
Series A-3 (par value $0.00001, 29,161,738 shares authorized, issued and outstanding, with a liquidation preference of $6,351 in-total at December 31, 2019 and no shares authorized, issued or outstanding at December 2018)
|
| | | | 8,698 | | | | | | — | | |
Series A-4 (par value $0.00001, 93,465,679 shares authorized, issued and outstanding, with a liquidation preference of $16,338 in-total at December 31, 2019 and no shares authorized, issued or outstanding at December 2018)
|
| | | | 17,933 | | | | | | — | | |
Total preferred stock
|
| | | | 103,580 | | | | | | 11,415 | | |
STOCKHOLDERS’ DEFICIT: | | | | | | | | | | | | | |
Class A common ($0.00001 par value, 725,000,000 shares authorized, 119,949,562 shares issued and outstanding at December 31, 2019 and 350,000,000 shares authorized, 94,860,482 shares issued and outstanding at December 31, 2018)
|
| | | | 1 | | | | | | 1 | | |
Class B common ($0.00001 par value, 108,297,023 shares authorized, 107,295,776 shares issued and outstanding at December 31, 2019 and 200,000,000 shares authorized, 106,552,443 shares issued and outstanding at December 31, 2018)
|
| | | | 1 | | | | | | 1 | | |
Notes receivable from stockholders
|
| | | | (9,175) | | | | | | (52) | | |
Additional paid-in capital
|
| | | | 77,992 | | | | | | 62,297 | | |
Accumulated deficit
|
| | | | (169,826) | | | | | | (109,972) | | |
Total stockholders’ deficit
|
| | | | (101,007) | | | | | | (47,725) | | |
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 32,578 | | | | | $ | 22,443 | | |
| | |
For the Years Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
REVENUE: | | | | | | | | | | | | | |
Product revenue
|
| | | $ | 4,847 | | | | | $ | 842 | | |
Service revenue
|
| | | | 1,665 | | | | | | 2,222 | | |
Related party service revenue
|
| | | | 1,976 | | | | | | — | | |
Total revenue
|
| | | | 8,488 | | | | | | 3,064 | | |
COST OF SALES: | | | | | | | | | | | | | |
Product cost
|
| | | | 12,703 | | | | | | 6,540 | | |
Service cost
|
| | | | 2,877 | | | | | | 6,255 | | |
Related party service cost
|
| | | | 1,657 | | | | | | — | | |
Total cost of sales
|
| | | | 17,237 | | | | | | 12,795 | | |
GROSS LOSS
|
| | | | (8,749) | | | | | | (9,731) | | |
OPERATING EXPENSES: | | | | | | | | | | | | | |
Research and development
|
| | | | 11,242 | | | | | | 18,446 | | |
Selling, general, and administrative
|
| | | | 13,890 | | | | | | 19,768 | | |
Legal settlement expense
|
| | | | 4,586 | | | | | | — | | |
Total operating expenses
|
| | | | 29,718 | | | | | | 38,214 | | |
OPERATING LOSS
|
| | | | (38,467) | | | | | | (47,945) | | |
INTEREST EXPENSE
|
| | | | (10,954) | | | | | | (8,802) | | |
INTEREST INCOME
|
| | | | 269 | | | | | | — | | |
LOSS ON EXTINGUISHMENT OF DEBT
|
| | | | (9,181) | | | | | | (2,580) | | |
NET LOSS BEFORE INCOME TAXES AND EQUITY (LOSS) IN AFFILIATES
|
| | | | (58,333) | | | | | | (59,327) | | |
EQUITY (LOSS) IN AFFILIATES
|
| | | | (1,520) | | | | | | — | | |
INCOME TAX EXPENSE
|
| | | | (1) | | | | | | (1) | | |
NET LOSS
|
| | | $ | (59,854) | | | | | $ | (59,328) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
APIC
|
| |
Notes
Receivable from Stockholders |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Par
|
| |
Shares
|
| |
Par
|
| ||||||||||||||||||||||||||||||||||||
BALANCE – December 31, 2017
|
| | | | 63,438,004 | | | | | $ | 1 | | | | | | 104,681,193 | | | | | $ | 1 | | | | | $ | 38,065 | | | | | $ | (52) | | | | | $ | (51,358) | | | | | $ | (13,343) | | |
Issuance of Class A common stock
|
| | | | 11,626,079 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,332 | | | | | | — | | | | | | — | | | | | | 7,332 | | |
Adoption of ASC 606 (Note 2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 714 | | | | | | 714 | | |
Conversion of promissory notes and accrued interest into Class A common stock
|
| | | | 19,796,399 | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,741 | | | | | | — | | | | | | — | | | | | | 5,741 | | |
Issuance of detachable warrants associated
with convertible notes, inclusive of beneficial conversion amount |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,211 | | | | | | — | | | | | | — | | | | | | 8,211 | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 1,871,250 | | | | | | — | | | | | | 2,948 | | | | | | — | | | | | | — | | | | | | 2,948 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (59,328) | | | | | | (59,328) | | |
BALANCE – December 31, 2018
|
| | | | 94,860,482 | | | | | | 1 | | | | | | 106,552,443 | | | | | | 1 | | | | | | 62,297 | | | | | | (52) | | | | | | (109,972) | | | | | | (47,725) | | |
Issuance of Class A common stock
|
| | | | 32,848,131 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,878 | | | | | | — | | | | | | — | | | | | | 11,878 | | |
Issuance of detachable warrants associated
with convertible notes, inclusive of beneficial conversion amount |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,187 | | | | | | — | | | | | | — | | | | | | 2,187 | | |
Convertible note issuance premium
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,318 | | | | | | | | | | | | | | | | | | 5,318 | | |
Rescission of common stock
|
| | | | (7,759,051) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,164) | | | | | | — | | | | | | — | | | | | | (1,164) | | |
Dividend to preferred stockholders
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,090) | | | | | | — | | | | | | — | | | | | | (4,090) | | |
Stockholder note receivable
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,123) | | | | | | — | | | | | | (9,123) | | |
Stock based compensation
|
| | | | — | | | | | | — | | | | | | 743,333 | | | | | | — | | | | | | 1,566 | | | | | | — | | | | | | — | | | | | | 1,566 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (59,854) | | | | | | (59,854) | | |
BALANCE – December 31, 2019
|
| | | | 119,949,562 | | | | | $ | 1 | | | | | | 107,295,776 | | | | | $ | 1 | | | | | $ | 77,992 | | | | | $ | (9,175) | | | | | $ | (169,826) | | | | | $ | (101,007) | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (59,854) | | | | | $ | (59,328) | | |
Adjustments to reconcile net loss to net cash used for operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1,871 | | | | | | 1,573 | | |
Stock-based compensation
|
| | | | 1,566 | | | | | | 2,948 | | |
Inventory provision
|
| | | | 1,743 | | | | | | 292 | | |
Loss on extinguishment of debt
|
| | | | 9,181 | | | | | | 2,580 | | |
Interest expense attributable to amortization of debt discount
|
| | | | 5,585 | | | | | | 4,837 | | |
Loss on disposal of property and equipment
|
| | | | — | | | | | | 926 | | |
Loss on equity method investment
|
| | | | 1,520 | | | | | | — | | |
Non-cash lease expense – operating leases
|
| | | | 213 | | | | | | — | | |
Non-cash lease expense – finance leases
|
| | | | (15) | | | | | | — | | |
Changes in assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (249) | | | | | | 270 | | |
Inventories
|
| | | | (2,570) | | | | | | (3,404) | | |
Prepaid expenses
|
| | | | (1,428) | | | | | | 396 | | |
Accounts payable
|
| | | | (2,130) | | | | | | 526 | | |
Interest accrued on notes payable
|
| | | | 455 | | | | | | 3,516 | | |
Accrued expenses
|
| | | | (1,768) | | | | | | 1,674 | | |
Contract liabilities
|
| | | | (898) | | | | | | 1,146 | | |
Operating lease liabilities
|
| | | | (180) | | | | | | — | | |
Other – net
|
| | | | (6) | | | | | | (289) | | |
Net cash used for operating activities
|
| | | | (46,964) | | | | | | (42,337) | | |
INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (1,099) | | | | | | (2,980) | | |
Other – net
|
| | | | (72) | | | | | | (69) | | |
Net cash used for investing activities
|
| | | | (1,171) | | | | | | (3,049) | | |
FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Issuance of convertible notes
|
| | | | 5,450 | | | | | | 10,350 | | |
Issuance of term notes
|
| | | | 19,000 | | | | | | 32,184 | | |
Repayment of term and convertible notes
|
| | | | (25,624) | | | | | | (8,575) | | |
Issuance of line of credit
|
| | | | 32,000 | | | | | | — | | |
Repayment of line of credit
|
| | | | (32,000) | | | | | | — | | |
Issuance of preferred stock – net
|
| | | | 56,489 | | | | | | — | | |
Redemption of preferred stock
|
| | | | (4,046) | | | | | | — | | |
Dividend to preferred stockholders
|
| | | | (4,090) | | | | | | | | |
Issuance of common stock
|
| | | | 150 | | | | | | 7,200 | | |
Exercise of stock options
|
| | | | 41 | | | | | | 132 | | |
Exercise of stock warrants
|
| | | | 2,565 | | | | | | — | | |
Payment for financed capital expenditures
|
| | | | (187) | | | | | | (264) | | |
Principal portion of finance lease l i abilities
|
| | | | (31) | | | | | | — | | |
Rescission of common stock
|
| | | | (1,164) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 48,553 | | | | | | 41,027 | | |
| | |
For the Years Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
| | | $ | 418 | | | | | $ | (4,359) | | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of
period |
| | | | 1,511 | | | | | | 5,870 | | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period
|
| | | $ | 1,929 | | | | | $ | 1,511 | | |
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
|
| | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 429 | | | | | $ | 11 | | |
Restricted cash
|
| | | | 1,500 | | | | | | 1,500 | | |
Total cash, cash equivalents, and restricted cash
|
| | | $ | 1,929 | | | | | $ | 1,511 | | |
SUPPLEMENTAL CASH FLOW INFORMATION: | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 4,486 | | | | | $ | 150 | | |
Cash paid for income taxes
|
| | | $ | 1 | | | | | $ | 1 | | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
| | | | | | | | | | | | |
Purchases of property, plant and equipment in accounts payable at year end
|
| | | $ | 1,030 | | | | | $ | 1,400 | | |
Conversion of promissory notes and accrued interest to Class A common stock
|
| | | $ | — | | | | | $ | 5,741 | | |
Conversion of promissory notes and accrued interest to preferred stock
|
| | | $ | 31,846 | | | | | $ | — | | |
Allocation of debt proceeds to beneficial conversion feature
|
| | | $ | 329 | | | | | $ | 3,159 | | |
Allocation of debt proceeds to stock warrants
|
| | | $ | 2,047 | | | | | $ | 5,052 | | |
Exercise of warrants in exchange for note receivable
|
| | | $ | 9,123 | | | | | $ | — | | |
Investment in Joint Venture
|
| | | $ | 4,000 | | | | | $ | — | | |
Issuance of preferred stock
|
| | | $ | 4,000 | | | | | $ | — | | |
Asset
|
| |
Years
|
| |||
Production and test equipment
|
| | | | 7 | | |
Furniture and fixtures
|
| | | | 7 | | |
Tooling
|
| | | | 5 | | |
Automobiles
|
| | | | 5 | | |
Computer equipment
|
| | | | 4 | | |
Software
|
| | | | 3 | | |
| | |
2019
|
| |||||||||||||||
| | |
Romeo Power
North America |
| |
Joint Venture
Support |
| |
Total
|
| |||||||||
Products: | | | | | | | | | | | | | | | | | | | |
Modules
|
| | | $ | 4,652 | | | | | $ | — | | | | | $ | 4,652 | | |
Packs
|
| | | | 195 | | | | | | — | | | | | | 195 | | |
Total products revenue
|
| | | | 4,847 | | | | | | — | | | | | | 4,847 | | |
Services: | | | | | | | | | | | | | | | | | | | |
Non-recurring engineering and prototype
|
| | | | 1,665 | | | | | | — | | | | | | 1,665 | | |
Joint Venture support
|
| | | | — | | | | | | 1,976 | | | | | | 1,976 | | |
Total service revenue
|
| | | | 1,665 | | | | | | 1,976 | | | | | | 3,641 | | |
Total revenue
|
| | | $ | 6,512 | | | | | $ | 1,976 | | | | | $ | 8,488 | | |
|
| | |
2018
|
| |||||||||||||||
| | |
Romeo Power
North America |
| |
Joint Venture
Support |
| |
Total
|
| |||||||||
Products: | | | | | | | | | | | | | | | | | | | |
Modules
|
| | | $ | 445 | | | | | $ | — | | | | | $ | 445 | | |
Packs
|
| | | | 397 | | | | | | — | | | | | | 397 | | |
Total products revenue
|
| | | | 842 | | | | | | — | | | | | | 842 | | |
Services: | | | | | | | | | | | | | | | | | | | |
Non-recurring engineering and prototype
|
| | | | 2,222 | | | | | | — | | | | | | 2,222 | | |
Joint Venture support
|
| | | | — | | | | | | — | | | | | | — | | |
Total service revenue
|
| | | | 2,222 | | | | | | — | | | | | | 2,222 | | |
Total revenue
|
| | | $ | 3,064 | | | | | $ | — | | | | | $ | 3,064 | | |
| | |
2019
|
| |
2018
|
| ||||||
Point in time
|
| | | $ | 6,512 | | | | | $ | 3,064 | | |
Over time
|
| | | | 1,976 | | | | | | — | | |
Total
|
| | | $ | 8,488 | | | | | $ | 3,064 | | |
| | |
2019
|
| |
2018
|
| ||||||
Production and test equipment
|
| | | $ | 5,726 | | | | | $ | 5,805 | | |
Computer equipment
|
| | | | 778 | | | | | | 749 | | |
Software
|
| | | | 2,093 | | | | | | 1,717 | | |
Tooling
|
| | | | 203 | | | | | | 58 | | |
Furniture and fixtures
|
| | | | 97 | | | | | | 97 | | |
Leasehold improvements
|
| | | | 1,076 | | | | | | 1,060 | | |
Automobiles
|
| | | | 22 | | | | | | 22 | | |
Assets not yet in service
|
| | | | 753 | | | | | | 450 | | |
Total property, plant and equipment
|
| | | | 10,748 | | | | | | 9,958 | | |
Less accumulated depreciation and amortization
|
| | | | (4,175) | | | | | | (2,305) | | |
Total property, plant and equipment – net
|
| | | $ | 6,573 | | | | | $ | 7,653 | | |
|
Operating lease cost
|
| | | $ | 912 | | |
| Finance lease cost: | | | | | | | |
|
Amortization of right-of-use assets
|
| | | $ | 62 | | |
|
Interest on lease liabilities
|
| | | | 15 | | |
|
Total finance lease cost
|
| | | $ | 77 | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
|
Operating cash flows from operating leases
|
| | | $ | 878 | | |
|
Operating cash flows from finance leases
|
| | | | 15 | | |
|
Financing cash flows from finance leases
|
| | | | 31 | | |
|
Right-of-use assets obtained in exchange for finance lease obligations:
|
| | | $ | 614 | | |
| Operating leases: | | | | | | | |
|
Right-of-use assets-operating leases
|
| | | $ | 5,707 | | |
|
Lease liabilities-operating leases(current)
|
| | | $ | 851 | | |
|
Lease liabilities-operating leases(non-current)
|
| | | | 4,949 | | |
|
Total lease liabilities-operating leases
|
| | | $ | 5,800 | | |
| Finance leases: | | | | | | | |
|
Other noncurrent assets
|
| | | $ | 551 | | |
|
Other current liabilities
|
| | | $ | 315 | | |
|
Other noncurrent liabilities
|
| | | | 268 | | |
|
Total leases liabilities-finance leases
|
| | | $ | 583 | | |
|
Operating leases
|
| |
12 years
|
|
|
Finance leases
|
| |
2 years
|
|
|
Operating leases
|
| | | | 12.0% | | |
|
Finance leases
|
| | | | 11.2% | | |
Year Ended December 31
|
| |
Operating
Leases |
| |
Finance
Leases |
| ||||||
2020
|
| | | $ | 899 | | | | | $ | 331 | | |
2021
|
| | | | 901 | | | | | | 295 | | |
2022
|
| | | | 902 | | | | | | 19 | | |
2023
|
| | | | 902 | | | | | | — | | |
2024
|
| | | | 902 | | | | | | — | | |
Thereafter
|
| | | | 6,391 | | | | | | — | | |
Total future minimum lease payments
|
| | | | 10,897 | | | | | | 645 | | |
Less imputed interest
|
| | | | (5,097) | | | | | | (62) | | |
Total
|
| | | $ | 5,800 | | | | | $ | 583 | | |
Year Ended December 31
|
| | | | | | |
2019 | | | | | | | |
2020
|
| | | $ | 891 | | |
2021
|
| | | | 880 | | |
2022
|
| | | | 571 | | |
| | | | | 75 | | |
Total
|
| | | $ | 2,417 | | |
| | |
2019
|
| |
2018
|
| ||||||
Raw materials
|
| | | $ | 5,535 | | | | | $ | 4,336 | | |
Work-in-process
|
| | | | 462 | | | | | | 867 | | |
Finished goods
|
| | | | 673 | | | | | | 640 | | |
Total inventories
|
| | | $ | 6,670 | | | | | $ | 5,843 | | |
| | |
2019
|
| |
2018
|
| ||||||
Convertible notes: | | | | | | | | | | | | | |
Issued 2016, interest rate fixed at 8%. Principal and interest are payable at maturity
in December in 2021. Conversion price is the lesser of the next equity financing or a conversion rate determined using an $80.00 million valuation cap |
| | | $ | — | | | | | $ | 1,500 | | |
Issued 2018, interest rate fixed at 8%. Principal and interest are payable at maturity
in February 2019. Conversion price is the lesser of the next equity financing or a conversion rate determined using an $190.00 million valuation cap |
| | | | — | | | | | | 1,250 | | |
Issued 2018, interest rate fixed at 18%. Principal and interest are payable at maturity in various dates in 2019. Conversion price is a conversion rate determined using an $120.00 million valuation cap
|
| | | | — | | | | | | 2,300 | | |
Issued 2018, interest rate fixed at 10% and modified to 18% in 2019. Principal and interest are payable at maturity in various dates 2019. Conversion price is the lesser of the next equity financing or conversion rate determined using an $80.00 million valuation cap
|
| | | | — | | | | | | 9,100 | | |
Issued 2019, interest rate fixed at 8%. Principal and interest are payable at maturity
in December 2022. Conversion price is the lesser of the next equity financing or $0.4339 per share |
| | | | 4,200 | | | | | | — | | |
Issued 2019, interest rate fixed at 8%. Principal and interest are payable at maturity
in December 2022. Conversion price is $0.4339 per share |
| | | | 1,025 | | | | | | — | | |
Subtotal
|
| | | | 5,225 | | | | | | 14,150 | | |
Less beneficial conversion feature and warrant issuance discounts – net of accumulated amortization
|
| | | | — | | | | | | (2,573) | | |
Total convertible notes
|
| | | | 5,225 | | | | | | 11,577 | | |
Term Notes: | | | | | | | | | | | | | |
Issued 2018, interest rate fixed at 8%. Principal and interest are payable on demand
or at maturity in various dates in 2019 |
| | | | — | | | | | | 12,008 | | |
Issued 2018, with a fixed interest payment ranging from 10%-25% of note
principal. Principal and interest are payable on demand or at maturity in various dates in 2019 |
| | | | — | | | | | | 11,700 | | |
Issued 2018, with a fixed interest payment ranging of 50% of note principal. Principal and interest are payable on demand or at maturity in various dates in 2019
|
| | | | — | | | | | | 1,550 | | |
Issued 2019, interest rate fixed at 1.55%. Principal and interest are payable at maturity in December 2020
|
| | | | 100 | | | | | | — | | |
Issued 2019, interest rate fixed at 8%. Principal and interest are payable at maturity
in various dates in 2020 |
| | | | 5,000 | | | | | | — | | |
subtotal
|
| | | | 5,100 | | | | | | 25,258 | | |
Less warrant issuance discounts – net of accumulated amortization
|
| | | | — | | | | | | (801) | | |
Total term notes
|
| | | | 5,100 | | | | | | 24,457 | | |
Total short-term and long-term debt
|
| | | | 10,325 | | | | | | 36,034 | | |
Less current portion to related parties
|
| | | | (100) | | | | | | (5,733) | | |
Less current portion
|
| | | | (5,000) | | | | | | (28,801) | | |
Total long-term debt
|
| | | $ | 5,225 | | | | | $ | 1,500 | | |
|
December 31
|
| | | | | | |
2020
|
| | | $ | 5,100 | | |
2021
|
| | | | — | | |
2022
|
| | | | 5,225 | | |
2023
|
| | | | — | | |
2024
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total
|
| | | $ | 10,325 | | |
Warrant Activity and Other Data
|
| |
Number of
Warrants |
| |
Weighted
Average Exercise Price Per Share |
| |
Weighted
Average Remaining Contractual Life |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Warrants Outstanding, January 1, 2019
|
| | | | 35,887,208 | | | | | $ | 0.47 | | | | | | 9.6 | | | | | $ | — | | |
Granted
|
| | | | 17,100,651 | | | | | | 0.34 | | | | | | — | | | | | | — | | |
Exercised
|
| | | | (24,793,537) | | | | | | 0.40 | | | | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Expired
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Warrants outstanding, December 31, 2019
|
| | | | 28,194,322 | | | | | $ | 0.46 | | | | | | 8.8 | | | | | $ | — | | |
Warrants exercisable, December 31, 2019
|
| | | | 28,194,322 | | | | | $ | 0.46 | | | | | | 8.8 | | | | | $ | — | | |
Fair Value Assumptions
|
| |
December 31, 2019
|
|
Risk-free interest rate
|
| |
2.46% and 2.37%
|
|
Expected term (in years)
|
| |
5
|
|
Expected volatility
|
| |
85% and 86%
|
|
Dividend yield
|
| |
0%
|
|
Grant date fair value per share
|
| |
$0.14 – $0.18
|
|
| | |
Series Seed
|
| |
Series A-1
|
| |
Series A-2
|
| |
Series A-3
|
| |
Series A-4
|
| | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
Balance – January 1, 2018
|
| | | | 69,555,900 | | | | | $ | 11,415 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | 11,415 | | |
Balance – December 31, 2018
|
| | | | 69,555,900 | | | | | | 11,415 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,415 | | |
Redemption of Series Seed Preferred Stock
|
| | | | (24,655,118) | | | | | | (4,046) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,046) | | |
Issuance of Series A Preferred Stock
|
| | | | — | | | | | | — | | | | | | 137,741,046 | | | | | | 49,762 | | | | | | 29,691,523 | | | | | | 10,727 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 60,489 | | |
Conversion of Notes into Series A Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,226,951 | | | | | | 9,158 | | | | | | 29,161,738 | | | | | | 6,351 | | | | | | 93,465,679 | | | | | | 16,338 | | | | | | 31,847 | | |
Contingent BCF and Loss on Extinguishment of Convertible Notes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (67) | | | | | | — | | | | | | 2,347 | | | | | | — | | | | | | 1,595 | | | | | | 3,875 | | |
Balance – December 31, 2019
|
| | | | 44,900,782 | | | | | $ | 7,369 | | | | | | 137,741,046 | | | | | $ | 49,762 | | | | | | 54,918,474 | | | | | $ | 19,818 | | | | | | 29,161,738 | | | | | $ | 8,698 | | | | | | 93,465,679 | | | | | $ | 17,933 | | | | | $ | 103,580 | | |
|
Series
|
| |
Price per Share
|
| |
Shares
Issued |
| |
Total
Proceeds |
| |||||||||
A-1
|
| | | $ | 0.36 | | | | | | 137,741,046 | | | | | $ | 50,000 | | |
A-2
|
| | | | 0.36 | | | | | | 54,918,474 | | | | | | 19,936 | | |
A-3
|
| | | | 0.22 | | | | | | 29,161,738 | | | | | | 6,351 | | |
A-4
|
| | | | 0.17 | | | | | | 93,465,679 | | | | | | 16,338 | | |
Total
|
| | | | | | | | | | 315,286,937 | | | | | $ | 92,625 | | |
| | |
Number of
Restricted Class B Shares |
| |||
Outstanding restricted shares, January 1, 2018
|
| | | | 4,120,837 | | |
Cancelled
|
| | | | (1,438,336) | | |
Shares vested
|
| | | | (1,897,500) | | |
Outstanding restricted shares, December 31, 2018
|
| | | | 785,001 | | |
Cancelled
|
| | | | (41,668) | | |
Shares vested
|
| | | | (743,333) | | |
Outstanding restricted shares, December 31, 2019
|
| | | | — | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Life (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding Options, January 1, 2018
|
| | | | 41,154,437 | | | | | $ | 0.50 | | | | | | 9.5 | | | | | $ | — | | |
Granted
|
| | | | 8,449,945 | | | | | | 0.74 | | | | | | | | | | | | | | |
Exercised
|
| | | | (264,923) | | | | | | 0.50 | | | | | | | | | | | | — | | |
Cancelled
|
| | | | (10,832,599) | | | | | | 0.50 | | | | | | | | | | | | | | |
Outstanding Options, December 31, 2018
|
| | | | 38,506,860 | | | | | $ | 0.54 | | | | | | 8.7 | | | | | $ | — | | |
Exercisable and vested, December 31, 2018
|
| | | | 24,739,945 | | | | | $ | 0.52 | | | | | | 8.5 | | | | | $ | — | | |
|
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Life (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding Options, January 1, 2019
|
| | | | 38,506,860 | | | | | $ | 0.54 | | | | | | 8.7 | | | | | $ | — | | |
Granted
|
| | | | 14,503,648 | | | | | | 0.32 | | | | | | | | | | | | | | |
Exercised
|
| | | | (77,846) | | | | | | 0.53 | | | | | | | | | | | | — | | |
Cancelled
|
| | | | (11,110,562) | | | | | | 0.52 | | | | | | | | | | | | | | |
Outstanding Options, December 31, 2019
|
| | | | 41,822,100 | | | | | $ | 0.48 | | | | | | 8.5 | | | | | $ | — | | |
Exercisable and vested, December 31, 2019
|
| | | | 29,210,485 | | | | | $ | 0.52 | | | | | | 8.2 | | | | | $ | — | | |
Fair Value Assumptions
|
| |
2019
|
| |
2018
|
|
Risk-free interest rate
|
| |
1.95% and 2.28%
|
| |
1.90% and 2.59%
|
|
Expected term (in years)
|
| |
6.5
|
| |
6.5
|
|
Expected volatility
|
| |
71% and 87%
|
| |
65% and 83%
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
|
Grant date fair value per share
|
| |
$0.17 and $0.19
|
| |
$0.21 and $0.28
|
|
| | |
2019
|
| |
2018
|
| ||||||
Cost of sales
|
| | | $ | 218 | | | | | $ | 25 | | |
Selling, general, and administrative
|
| | | | 1,348 | | | | | | 2,923 | | |
Total
|
| | | $ | 1,566 | | | | | $ | 2,948 | | |
| | |
Number of
Warrants |
| |
Weighted-
Average Exercise Price per Share |
| |
Weighted-
Average Remaining Contractual Life (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Warrant activity and other data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrants outstanding, January 1, 2019
|
| | | | 16,531,184 | | | | | $ | 0.37 | | | | | | 8.8 | | | | | $ | — | | |
Granted
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Exercised
|
| | | | 7,631,046 | | | | | | 0.23 | | | | | | | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Expired
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Warrants outstanding, December 31, 2019
|
| | | | 8,900,138 | | | | | $ | 0.48 | | | | | | 7.8 | | | | | $ | — | | |
Warrants outstanding exercisable, December 31, 2019
|
| | | | 8,900,138 | | | | | $ | 0.48 | | | | | | 7.8 | | | | | $ | — | | |
| | |
2019
|
| |
2018
|
| ||||||
Current: | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 1 | | | | | | 1 | | |
Total current
|
| | | | 1 | | | | | | 1 | | |
Total deferred
|
| | | | — | | | | | | — | | |
Total provision for income taxes
|
| | | $ | 1 | | | | | $ | 1 | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Federal statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State statutory rate, net of federal tax benefit
|
| | | | 4.4 | | | | | | 5.7 | | |
Tax credits
|
| | | | 3.6 | | | | | | 5.2 | | |
Stock-based compensation
|
| | | | (0.2) | | | | | | (0.2) | | |
Valuation allowance adjustments
|
| | | | (22.9) | | | | | | (28.4) | | |
Interest expense on converted debt
|
| | | | (3.9) | | | | | | (2.2) | | |
Loss on extinguishment on converted debt
|
| | | | (1.0) | | | | | | (0.9) | | |
Loss from joint venture
|
| | | | (0.6) | | | | | | — | | |
Others
|
| | | | (0.4) | | | | | | (0.2) | | |
Effective tax rate
|
| | | | —% | | | | | | —% | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax asset: | | | | | | | | | | | | | |
Accrued expense
|
| | | $ | 1,975 | | | | | $ | 2,387 | | |
Stock-based compensation
|
| | | | 667 | | | | | | 348 | | |
Tax credits
|
| | | | 8,191 | | | | | | 6,287 | | |
Net operating loss carryforwards
|
| | | | 34,419 | | | | | | 24,083 | | |
Total deferred tax asset
|
| | | | 45,252 | | | | | | 33,105 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | (465) | | | | | | (230) | | |
Total deferred tax liability
|
| | | | (465) | | | | | | (230) | | |
Net deferred tax asset
|
| | | | 44,787 | | | | | | 32,875 | | |
Valuation allowance
|
| | | | (44,787) | | | | | | (32,875) | | |
Net deferred tax liability
|
| | | $ | — | | | | | $ | — | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net sales: | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | 6,512 | | | | | $ | 3,064 | | |
Joint Venture Support
|
| | | | 1,976 | | | | | | — | | |
Total net sales
|
| | | $ | 8,488 | | | | | $ | 3,064 | | |
Gross profit (loss): | | | | | | | | | | | | | |
Romeo Power North America
|
| | | $ | (9,068) | | | | | $ | (9,731) | | |
Joint Venture Support
|
| | | | 319 | | | | | | — | | |
Total business segment gross profit (loss)
|
| | | $ | (8,749) | | | | | $ | (9,731) | | |
| | |
Principal
Amount |
| |
Maturity Date
|
| |||
Stockholder 1
|
| | | $ | 4,562 | | | |
July 7, 2022
|
|
Stockholder 2
|
| | | | 4,561 | | | |
August 19, 2022
|
|
Total
|
| | | $ | 9,123 | | | | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Convertible notes
|
| | | $ | — | | | | | $ | 1,500 | | |
Term notes
|
| | | | 100 | | | | | | 5,734 | | |
Total
|
| | | $ | 100 | | | | | $ | 7,234 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Convertible notes
|
| | | $ | 3,000 | | | | | $ | — | | |
Term notes
|
| | | | — | | | | | | 1,500 | | |
Total
|
| | | $ | 3,000 | | | | | $ | 1,500 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Convertible notes*
|
| | | $ | 2,000 | | | | | $ | 10,600 | | |
Term notes*
|
| | | | 100 | | | | | | 5,724 | | |
Total
|
| | | $ | 2,100 | | | | | $ | 16,324 | | |