|
Delaware
|
| |
6770
|
| |
83-2456129
|
|
|
(State or other jurisdiction of
|
| |
(Primary Standard Industrial
|
| |
(I.R.S. Employer
|
|
|
incorporation or organization)
|
| |
Classification Code Number)
|
| |
Identification Number)
|
|
|
Jaime Mercado, Esq.
Simpson Thacher & Bartlett LLP 425 Lexington Avenue New York, New York 10017 Telephone: (212) 455-2000 |
| |
Valerie Ford Jacob, Esq.
Michael A. Levitt, Esq. Freshfields Bruckhaus Deringer US LLP 601 Lexington Avenue New York, New York 10022 Telephone: (212) 277-4000 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☒
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| | |||||||||||||||||||||||||
Title of each class of
securities to be registered |
| | |
Amount
to be registered(1) |
| | |
Proposed
maximum offering price per unit |
| | |
Proposed
maximum aggregate offering price(2) |
| | |
Amount of
registration fee(3) |
| |||||||||
Class A common stock, par value $0.0001 per share
|
| | |
80,000,000
|
| | | | | N/A | | | | | | $ | 814,400,000 | | | | | | $ | 88,851.04 | | |
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| | |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | 43,368 | | | | | $ | 90,382 | | | | | $ | 53,448 | | | | | $ | 41,758 | | |
Wholesale vehicle sales
|
| | | | 5,036 | | | | | | 4,372 | | | | | | 8,454 | | | | | | 3,153 | | | | | | 1,340 | | |
Finance and insurance, net
|
| | | | 1,787 | | | | | | 1,559 | | | | | | 3,117 | | | | | | 1,608 | | | | | | 974 | | |
Lease income, net
|
| | | | 272 | | | | | | 265 | | | | | | 533 | | | | | | 142 | | | | | | — | | |
Total revenues
|
| | | | 51,789 | | | | | | 49,564 | | | | | | 102,486 | | | | | | 58,351 | | | | | | 44,072 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 46,588 | | | | | | 45,126 | | | | | | 93,870 | | | | | | 52,708 | | | | | | 38,519 | | |
Gross profit
|
| | | | 5,201 | | | | | | 4,438 | | | | | | 8,706 | | | | | | 5,643 | | | | | | 5,553 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 7,026 | | | | | | 8,909 | | | | | | 18,305 | | | | | | 11,661 | | | | | | 7,254 | | |
Depreciation expense
|
| | | | 191 | | | | | | 287 | | | | | | 504 | | | | | | 338 | | | | | | 218 | | |
Management fee expense – related party
|
| | | | 132 | | | | | | 124 | | | | | | 250 | | | | | | 250 | | | | | | 73 | | |
Total operating expenses
|
| | | | 7,349 | | | | | | 9,320 | | | | | | 19,059 | | | | | | 12,249 | | | | | | 7,545 | | |
Loss from operations
|
| | | | (2,148) | | | | | | (4,882) | | | | | | (10,353) | | | | | | (6,606) | | | | | | (1,992) | | |
Interest expense
|
| | | | 256 | | | | | | 339 | | | | | | 651 | | | | | | 466 | | | | | | 414 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management fee income – related party
|
| | | | — | | | | | | — | | | | | | — | | | | | | 127 | | | | | | 180 | | |
Change in fair value of warrants liability
|
| | | | 31 | | | | | | 12 | | | | | | 24 | | | | | | (2) | | | | | | 50 | | |
Change in fair value of redeemable convertible
preferred stock tranche obligation |
| | | | 629 | | | | | | (50) | | | | | | (1,396) | | | | | | (272) | | | | | | (79) | | |
Other income (expense)
|
| | | | 33 | | | | | | (256) | | | | | | (291) | | | | | | 662 | | | | | | (210) | | |
Total other income (expense), net
|
| | | | 693 | | | | | | (294) | | | | | | (1,663) | | | | | | 515 | | | | | | (59) | | |
| | |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Loss before income tax expense
|
| | | | (1,711) | | | | | | (5,515) | | | | | | (12,667) | | | | | | (6,557) | | | | | | (2,465) | | |
Income tax expense
|
| | | | 9 | | | | | | 5 | | | | | | 11 | | | | | | 3 | | | | | | 4 | | |
Net loss
|
| | | | (1,720) | | | | | | (5,520) | | | | | | (12,678) | | | | | | (6,560) | | | | | | (2,469) | | |
Redeemable convertible preferred stock dividends (undeclared and cumulative)
|
| | | | (924) | | | | | | (657) | | | | | | (1,579) | | | | | | (1,014) | | | | | | (274) | | |
Net loss attributable to common stockholders
|
| | | $ | (2,644) | | | | | $ | (6,177) | | | | | $ | (14,257) | | | | | $ | (7,574) | | | | | $ | (2,743) | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (0.71) | | | | | $ | (1.66) | | | | | $ | (3.84) | | | | | $ | (2.04) | | | | | $ | (0.75) | | |
Weighted-average shares used in computing net
loss per share attributable to common stockholders, basic and diluted |
| | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,660,679 | | |
|
| | |
As of
June 30, 2020 |
| |
As of December 31,
|
| ||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 4,775 | | | | | $ | 3,214 | | | | | $ | 1,019 | | |
Inventories
|
| | | | 2,760 | | | | | | 7,625 | | | | | | 10,160 | | |
Total assets
|
| | | | 13,908 | | | | | | 16,635 | | | | | | 16,436 | | |
Floor plan notes payable
|
| | | | 1,943 | | | | | | 6,739 | | | | | | 8,697 | | |
Long-term debt (including current portion)
|
| | | | 5,065 | | | | | | 2,825 | | | | | | 17 | | |
Total current liabilities
|
| | | | 15,325 | | | | | | 16,810 | | | | | | 12,470 | | |
Total liabilities
|
| | | | 21,364 | | | | | | 21,496 | | | | | | 16,043 | | |
Redeemable convertible preferred stock
|
| | | | 17,560 | | | | | | 17,560 | | | | | | 8,670 | | |
Total stockholders’ equity (deficit)
|
| | | | (25,016) | | | | | | (22,421) | | | | | | (8,277) | | |
| | |
Six Months Ended
June 30, |
| |
Year Ended
December 31, |
| |
For the Period from
November 7, 2018 (Inception) Through December 31, |
| |||||||||||||||
Statement of Operations Data:
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
Operating costs
|
| | | $ | 1,189,698 | | | | | $ | 390,221 | | | | | $ | 932,834 | | | | | $ | 2,750 | | |
Loss from operations
|
| | | $ | (1,189,698) | | | | | $ | (390,221) | | | | | $ | (932,834) | | | | | | (2,750) | | |
Other income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | $ | 1,677,132 | | | | | $ | 2,460,117 | | | | | $ | 5,531,557 | | | | | | — | | |
Income before provision for income taxes
|
| | | $ | 487,434 | | | | | $ | 2,069,896 | | | | | $ | 4,598,723 | | | | | | (2,750) | | |
Provision for income taxes
|
| | | $ | (331,386) | | | | | $ | (495,904) | | | | | $ | (1,120,521) | | | | | | — | | |
Net income
|
| | | $ | 156,048 | | | | | $ | 1,573,992 | | | | | $ | 3,478,202 | | | | | $ | (2,750) | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 30,557,322 | | | | | | 30,364,057 | | | | | | 30,479,514 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.04 | | | | | $ | 0.06 | | | | | $ | 0.14 | | | | | | — | | |
Weighted average shares outstanding of Class B non-redeemable common stock
|
| | | | 7,639,330 | | | | | | 7,591,014 | | | | | | 7,601,435 | | | | | | 7,500,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.14) | | | | | $ | (0.04) | | | | | $ | (0.10) | | | | | $ | (0.00) | | |
|
Balance Sheet Data
(end of period): |
| |
June 30,
|
| |
December 31,
|
| ||||||||||||||||||
|
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||||
Cash
|
| | | $ | 590,796 | | | | | $ | 1,956,026 | | | | | $ | 1,600,833 | | | | | $ | 12,000 | | |
Cash and marketable securities held in Trust Account
|
| | | $ | 311,111,933 | | | | | $ | 307,403,515 | | | | | $ | 309,840,375 | | | | | | — | | |
Total assets
|
| | | $ | 311,764,812 | | | | | $ | 309,641,548 | | | | | $ | 311,657,995 | | | | | $ | 306,004 | | |
Common stock subject to possible redemption, 29,590,416 and 29,574,811 shares as of June 30, 2020 and December 31, 2019, respectively (at $10.00 per share)
|
| | | $ | 295,904,160 | | | | | $ | 293,843,900 | | | | | $ | 295,748,110 | | | | | | — | | |
Total liabilities
|
| | | $ | 10,860,645 | | | | | $ | 10,797,639 | | | | | $ | 10,909,876 | | | | | $ | 283,754 | | |
Total stockholders’ equity
|
| | | $ | 5,000,007 | | | | | $ | 5,000,009 | | | | | $ | 5,000,009 | | | | | $ | 22,250 | | |
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities
|
| | | $ | (1,415,611) | | | | | $ | (1,065,556) | | | | | | (2,055,329) | | | | | $ | (2,750) | | |
Net cash used in investing activities
|
| | | $ | 405,574 | | | | | $ | (304,943,398) | | | | | | (304,308,818) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | — | | | | | $ | 307,952,980 | | | | | | 307,952,980 | | | | | $ | 14,750 | | |
(in thousands, except share and per share data)
|
| |
CarLotz
|
| |
Acamar
Partners |
| |
Pro Forma
Combined Assuming No Redemption into Cash |
| |
Pro Forma
Combined Assuming Maximum Redemptions into Cash |
| ||||||||||||
Statement of Operations Data – For the Six Months Ended June 30, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 51,789 | | | | | $ | — | | | | | $ | 51,789 | | | | | $ | 51,789 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 46,588 | | | | | | — | | | | | | 46,588 | | | | | | 46,588 | | |
Operating expenses
|
| | | | 7,349 | | | | | | 1,190 | | | | | | 8,539 | | | | | | 8,539 | | |
Loss from operations
|
| | | | (2,148) | | | | | | (1,190) | | | | | | (3,338) | | | | | | (3,338) | | |
Net (loss) income
|
| | | | (1,720) | | | | | | 156 | | | | | | (3,570) | | | | | | (3,570) | | |
Net income (loss) per Class A share – basic and diluted
|
| | | | | | | | | $ | 0.04 | | | | | $ | (0.03) | | | | | $ | (0.04) | | |
Net income (loss) per Class B shares – basic and diluted
|
| | | | | | | | | $ | (0.14) | | | | | | | | | | | | | | |
Balance Sheet Data – As of June 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets
|
| | | $ | 12,784 | | | | | $ | 653 | | | | | $ | 332,869 | | | | | $ | 71,757 | | |
Total assets
|
| | | | 13,908 | | | | | | 311,765 | | | | | | 333,993 | | | | | | 72,881 | | |
Total current liabilities
|
| | | | 15,325 | | | | | | 166 | | | | | | 8,385 | | | | | | 8,385 | | |
Total liabilities
|
| | | | 21,364 | | | | | | 10,861 | | | | | | 9,450 | | | | | | 9,450 | | |
Total stockholders’ (deficit) equity
|
| | | | (25,016) | | | | | | 5,000 | | | | | | 324,543 | | | | | | 63,431 | | |
Statement of Operations Data – Year Ended December 31, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 102,486 | | | | | $ | — | | | | | $ | 102,486 | | | | | $ | 102,486 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 93,780 | | | | | | — | | | | | | 93,780 | | | | | | 93,780 | | |
Operating expenses
|
| | | | 19,059 | | | | | | 933 | | | | | | 19,992 | | | | | | 19,992 | | |
Loss from operations
|
| | | | (10,353) | | | | | | (933) | | | | | | (11,286) | | | | | | (11,286) | | |
Net (loss) income
|
| | | | (12,678) | | | | | | 3,478 | | | | | | (12,239) | | | | | | (12,239) | | |
Net income (loss) per Class A share – basic and diluted
|
| | | | | | | | | $ | 0.14 | | | | | $ | (0.10) | | | | | $ | (0.13) | | |
Net income (loss) per Class B shares – basic and diluted
|
| | | | | | | | | $ | (0.10) | | | | | | | | | | | | | | |
(in thousands, except share and per share data)
|
| |
CarLotz
|
| |
Acamar
Partners |
| |
Pro Forma
Combined Assuming No Redemption into Cash |
| |
Pro Forma
Combined Assuming Maximum Redemptions into Cash |
| ||||||||||||
Six Months Ended June 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (1,720) | | | | | $ | 156 | | | | | $ | (3,570) | | | | | $ | (3,570) | | |
Total stockholders’ (deficit) equity
|
| | | | (25,016) | | | | | | 5,000 | | | | | | 324,543 | | | | | | 63,431 | | |
Weighted average Class A shares outstanding – basic and diluted
|
| | | | | | | | | | 30,557,322 | | | | | | 118,697,987 | | | | | | 93,051,650 | | |
Basic and diluted net income (loss) per Class A share
|
| | | | | | | | | $ | 0.04 | | | | | $ | (0.03) | | | | | $ | (0.04) | | |
Weighted average Class B shares outstanding – basic diluted
|
| | | | | | | | | | 7,639,330 | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class B share
|
| | | | | | | | | $ | (0.14) | | | | | | | | | | | | | | |
Stockholders’ equity per share – basic and diluted
|
| | | | | | | | | $ | 0.16 | | | | | $ | 2.73 | | | | | $ | 0.68 | | |
(in thousands, except share and per share data)
|
| |
CarLotz
|
| |
Acamar
Partners |
| |
Pro Forma
Combined Assuming No Redemption into Cash |
| |
Pro Forma
Combined Assuming Maximum Redemptions into Cash |
| ||||||||||||
Year Ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (12,678) | | | | | $ | 3,478 | | | | | $ | (12,239) | | | | | $ | (12,239) | | |
Weighted average Class A shares outstanding – basic and diluted
|
| | | | | | | | | | 30,557,322 | | | | | | 118,697,987 | | | | | | 93,051,650 | | |
Basic and diluted net income (loss) per Class A share
|
| | | | | | | | | $ | 0.14 | | | | | $ | (0.10) | | | | | $ | (0.13) | | |
Weighted average Class B shares outstanding – basic and diluted
|
| | | | | | | | | | 7,639,330 | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class B share
|
| | | | | | | | | $ | (0.10) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Scenario 1
Assuming No Redemptions into Cash |
| |
Scenario 2
Assuming Maximum Redemptions into Cash |
| ||||||||||||||||||||||||||||||
| | |
(A)
CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 4,775 | | | | | $ | 591 | | | | | $ | 311,112 | | | | |
|
(1)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 125,000 | | | | |
|
(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (10,695) | | | | |
|
(3)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (34,305) | | | | |
|
(4)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (71,680) | | | | |
|
(6)
|
| | | | $ | 324,798 | | | | | $ | (261,112) | | | | |
|
(5)
|
| | | | $ | 63,686 | | |
Restricted cash
|
| | | | 686 | | | | | | — | | | | | | — | | | | | | | | | | | | 686 | | | | | | | | | | | | | | | | | | 686 | | |
Marketable securities
|
| | | | 704 | | | | | | — | | | | | | — | | | | | | | | | | | | 704 | | | | | | | | | | | | | | | | | | 704 | | |
Accounts receivable, net
|
| | | | 3,586 | | | | | | — | | | | | | — | | | | | | | | | | | | 3,586 | | | | | | | | | | | | | | | | | | 3,586 | | |
Inventories
|
| | | | 2,760 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,760 | | | | | | | | | | | | | | | | | | 2,760 | | |
Other current assets
|
| | | | 273 | | | | | | 62 | | | | | | — | | | | | | | | | | | | 335 | | | | | | | | | | | | | | | | | | 335 | | |
Total current assets
|
| | | | 12,784 | | | | | | 653 | | | | | | 319,432 | | | | | | | | | | | | 332,869 | | | | | | (261,112) | | | | | | | | | | | | 71,757 | | |
Cash and marketable securities held in trust account
|
| | | | — | | | | | | 311,112 | | | | | | (311,112) | | | | |
|
(1)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Property and equipment, net
|
| | | | 544 | | | | | | — | | | | | | — | | | | | | | | | | | | 544 | | | | | | | | | | | | | | | | | | 544 | | |
Lease vehicles, net
|
| | | | 242 | | | | | | — | | | | | | — | | | | | | | | | | | | 242 | | | | | | | | | | | | | | | | | | 242 | | |
Other assets
|
| | | | 338 | | | | | | — | | | | | | — | | | | | | | | | | | | 338 | | | | | | | | | | | | | | | | | | 338 | | |
Total assets
|
| | | $ | 13,908 | | | | | $ | 311,765 | | | | | $ | 8,320 | | | | | | | | | | | $ | 333,993 | | | | | $ | (261,112) | | | | | | | | | | | $ | 72,881 | | |
Liabilities, Redeemable Convertible Preferred
Stock, Stockholders’ Equity (Deficit) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, current
|
| | | $ | 3,316 | | | | | $ | — | | | | | $ | (3,316) | | | | |
|
(6)
|
| | | | $ | — | | | | | | | | | | | | | | | | | $ | — | | |
Floor plan notes payable
|
| | | | 1,943 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,943 | | | | | | | | | | | | | | | | | | 1,943 | | |
Accounts payable
|
| | | | 2,853 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,853 | | | | | | | | | | | | | | | | | | 2,853 | | |
Accrued expenses
|
| | | | 2,624 | | | | | | 65 | | | | | | — | | | | | | | | | | | | 2,689 | | | | | | | | | | | | | | | | | | 2,689 | | |
Accrued expenses – related party
|
| | | | 4,038 | | | | | | — | | | | | | (3,790) | | | | |
|
(6)
|
| | | | | 248 | | | | | | | | | | | | | | | | | | 248 | | |
Income taxes payable
|
| | | | — | | | | | | 101 | | | | | | — | | | | | | | | | | | | 101 | | | | | | | | | | | | | | | | | | 101 | | |
Other current liabilities
|
| | | | 551 | | | | | | — | | | | | | — | | | | | | | | | | | | 551 | | | | | | | | | | | | | | | | | | 551 | | |
Total current liabilities
|
| | | | 15,325 | | | | | | 166 | | | | | | (7,106) | | | | | | | | | | | | 8,385 | | | | | | | | | | | | | | | | | | 8,385 | | |
Long term debt, less current portion
|
| | | | 1,749 | | | | | | — | | | | | | (1,749) | | | | |
|
(6)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Deferred underwriting fee payable
|
| | | | — | | | | | | 10,695 | | | | | | (10,695) | | | | |
|
(3)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | 3,126 | | | | | | — | | | | | | (3,126) | | | | |
|
(6)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Other liabilities
|
| | | | 1,164 | | | | | | — | | | | | | (99) | | | | |
|
(6)
|
| | | | | 1,065 | | | | | | | | | | | | | | | | | | 1,065 | | |
Total liabilities
|
| | | | 21,364 | | | | | | 10,861 | | | | | | (22,775) | | | | | | | | | | | | 9,450 | | | | | | | | | | | | | | | | | | 9,450 | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock
|
| | | | 17,560 | | | | | | — | | | | | | (17,560) | | | | | | (6) | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Redeemable common stock
|
| | | | — | | | | | | 295,904 | | | | | | (295,904) | | | | | | (5) | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Stockholders’ equity (deficit)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 4 | | | | | | — | | | | | | (4) | | | | |
|
(6)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Class A common stock
|
| | | | — | | | | | | — | | | | | | 1 | | | | |
|
(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3 | | | | |
|
(5)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 7 | | | | |
|
(6)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1 | | | | |
|
(7)
|
| | | | | 12 | | | | | | (3) | | | | |
|
(5)
|
| | | | | 9 | | |
| | | | | | | | | | | | | | |
Scenario 1
Assuming No Redemptions into Cash |
| |
Scenario 2
Assuming Maximum Redemptions into Cash |
| ||||||||||||||||||||||||||||||
| | |
(A)
CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| ||||||||||||||||||
Class B common stock
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | |
|
(7)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Additional paid-in capital, common
stock |
| | | | 5,674 | | | | | | 1,368 | | | | | | 124,999 | | | | |
|
(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (3,750) | | | | |
|
(4)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 295,901 | | | | |
|
(5)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (39,912) | | | | |
|
(6)
|
| | | | | 384,280 | | | | | | (261,109) | | | | |
|
(5)
|
| | | | | 123,171 | | |
Retained earnings (accumulated deficit)
|
| | | | (29,205) | | | | | | 3,631 | | | | | | (30,555) | | | | |
|
(4)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | (3,631) | | | | |
|
(6)
|
| | | | | (59,760) | | | | | | | | | | | | | | | | | | (59,760) | | |
Accumulated other comprehensive income
|
| | | | 11 | | | | | | — | | | | | | — | | | | | | | | | | | | 11 | | | | | | | | | | | | | | | | | | 11 | | |
Treasury stock
|
| | | | (1,500) | | | | | | — | | | | | | 1,500 | | | | |
|
(6)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Total stockholders’ equity (deficit)
|
| | | | (25,016) | | | | | | 5,000 | | | | | | 344,559 | | | | | | | | | | | | 324,543 | | | | | | (261,112) | | | | | | | | | | | | 63,431 | | |
Total liabilities, redeemable convertible preferred stock, stockholders’ equity (deficit)
|
| | | $ | 13,908 | | | | | $ | 311,765 | | | | | $ | 8,320 | | | | | | | | | | | $ | 333,993 | | | | | $ | (261,112) | | | | | | | | | | | $ | 72,881 | | |
|
| | | | | | | | | | | | | | |
Scenario 1
Assuming No Redemptions into Cash |
| |
Scenario 2
Assuming Maximum Redemptions into Cash |
| ||||||||||||||||||||||||||||||
| | |
(A)
CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| ||||||||||||||||||
Total revenues
|
| | | $ | 51,789 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 51,789 | | | | | | | | | | | | | | | | | $ | 51,789 | | |
Cost of sales
|
| | | | 46,588 | | | | | | — | | | | | | — | | | | | | | | | | | | 46,588 | | | | | | | | | | | | | | | | | | 46,588 | | |
Gross profit
|
| | | | 5,201 | | | | | | — | | | | | | — | | | | | | | | | | | | 5,201 | | | | | | | | | | | | | | | | | | 5,201 | | |
Selling, general and administrative
expenses |
| | | | 7,026 | | | | | | 1,190 | | | | | | — | | | | | | | | | | | | 8,216 | | | | | | | | | | | | | | | | | | 8,216 | | |
Depreciation expense
|
| | | | 191 | | | | | | — | | | | | | — | | | | | | | | | | | | 191 | | | | | | | | | | | | | | | | | | 191 | | |
Management fee – related party
|
| | | | 132 | | | | | | — | | | | | | — | | | | | | | | | | | | 132 | | | | | | | | | | | | | | | | | | 132 | | |
Total loss from operations
|
| | | | (2,148) | | | | | | (1,190) | | | | | | — | | | | | | | | | | | | (3,338) | | | | | | | | | | | | | | | | | | (3,338) | | |
Interest expense
|
| | | | 256 | | | | | | — | | | | | | — | | | | | | | | | | | | 256 | | | | | | | | | | | | | | | | | | 256 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrants
liability |
| | | | 31 | | | | | | — | | | | | | (31) | | | | |
|
(1)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 629 | | | | | | — | | | | | | (629) | | | | |
|
(1)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Interest earned on marketable securities
|
| | | | — | | | | | | 1,677 | | | | | | (1,677) | | | | |
|
(2)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Other income (expense)
|
| | | | 33 | | | | | | — | | | | | | — | | | | | | | | | | | | 33 | | | | | | | | | | | | | | | | | | 33 | | |
Total other income (expense), net
|
| | | | 693 | | | | | | 1,677 | | | | | | (2,337) | | | | | | | | | | | | 33 | | | | | | | | | | | | | | | | | | 33 | | |
(Loss) income before income
tax expense |
| | | | (1,711) | | | | | | 487 | | | | | | (2,337) | | | | | | | | | | | | (3,561) | | | | | | | | | | | | | | | | | | (3,561) | | |
Income tax expense
|
| | | | 9 | | | | | | 331 | | | | | | (331) | | | | | | (3) | | | | | | 9 | | | | | | | | | | | | | | | | | | 9 | | |
Net (loss) income
|
| | | $ | (1,720) | | | | | $ | 156 | | | | | $ | (2,006) | | | | | | | | | | | $ | (3,570) | | | | | | | | | | | | | | | | | $ | (3,570) | | |
Weighted average Class A shares
outstanding, basic and diluted |
| | | | | | | | | | 30,557,322 | | | | | | 88,140,665 | | | | |
|
(4)
|
| | | | | 118,697,987 | | | | | | (25,646,337) | | | | |
|
(4)
|
| | | | | 93,051,650 | | |
Basic and diluted net income (loss) per Class A share
|
| | | | | | | | | $ | 0.04 | | | | | | | | | | | | | | | | | $ | (0.03) | | | | | | | | | | | | | | | | | $ | (0.04) | | |
Weighted average Class B shares
outstanding, basic and diluted |
| | | | | | | | | | 7,639,330 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class B share
|
| | | | | | | | | $ | (0.14) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | |
Scenario 1
Assuming No Redemptions into Cash |
| |
Scenario 2
Assuming Maximum Redemptions into Cash |
| ||||||||||||||||||||||||||||||
| | |
(C)
CarLotz |
| |
(D)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| ||||||||||||||||||
Total revenues
|
| | | $ | 102,486 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 102,486 | | | | | | | | | | | | | | | | | $ | 102,486 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 93,780 | | | | | | — | | | | | | — | | | | | | | | | | | | 93,780 | | | | | | | | | | | | | | | | | | 93,780 | | |
Gross profit
|
| | | | 8,706 | | | | | | — | | | | | | — | | | | | | | | | | | | 8,706 | | | | | | | | | | | | | | | | | | 8,706 | | |
Selling, general and administrative expenses
|
| | | | 18,305 | | | | | | 933 | | | | | | — | | | | | | | | | | | | 19,238 | | | | | | | | | | | | | | | | | | 19,238 | | |
Depreciation expense
|
| | | | 504 | | | | | | — | | | | | | — | | | | | | | | | | | | 504 | | | | | | | | | | | | | | | | | | 504 | | |
Management fee – related
party |
| | | | 250 | | | | | | — | | | | | | — | | | | | | | | | | | | 250 | | | | | | | | | | | | | | | | | | 250 | | |
Total loss from operations
|
| | | | (10,353) | | | | | | (933) | | | | | | — | | | | | | | | | | | | (11,286) | | | | | | | | | | | | | | | | | | (11,286) | | |
Interest expense
|
| | | | 651 | | | | | | — | | | | | | — | | | | | | | | | | | | 651 | | | | | | | | | | | | | | | | | | 651 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrants liability
|
| | | | 24 | | | | | | — | | | | | | (24) | | | | |
|
(1)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | (1,396) | | | | | | — | | | | | | 1,396 | | | | |
|
(1)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Interest earned on marketable securities
|
| | | | — | | | | | | 5,532 | | | | | | (5,532) | | | | |
|
(2)
|
| | | | | — | | | | | | | | | | | | | | | | | | — | | |
Other income (expense)
|
| | | | (291) | | | | | | — | | | | | | — | | | | | | | | | | | | (291) | | | | | | | | | | | | | | | | | | (291) | | |
Total other income (expense),
net |
| | | | (1,663) | | | | | | 5,532 | | | | | | (4,160) | | | | | | | | | | | | (291) | | | | | | | | | | | | | | | | | | (291) | | |
(Loss) income before income tax expense
|
| | | | (12,667) | | | | | | 4,599 | | | | | | (4,160) | | | | | | | | | | | | (12,228) | | | | | | | | | | | | | | | | | | (12,228) | | |
Income tax expense
|
| | | | 11 | | | | | | 1,121 | | | | | | (1,121) | | | | | | (3) | | | | | | 11 | | | | | | | | | | | | | | | | | | 11 | | |
Net (loss) income
|
| | | $ | (12,678) | | | | | $ | 3,478 | | | | | $ | (3,039) | | | | | | | | | | | $ | (12,239) | | | | | | | | | | | | | | | | | $ | (12,239) | | |
Weighted average Class A shares outstanding, basic and diluted
|
| | | | | | | | | | 30,557,322 | | | | | | 88,140,665 | | | | |
|
(4)
|
| | | | | 118,697,987 | | | | | | (25,646,337) | | | | |
|
(4)
|
| | | | | 93,051,650 | | |
Basic and diluted net income (loss) per Class A share
|
| | | | | | | | | $ | 0.14 | | | | | | | | | | | | | | | | | $ | (0.10) | | | | | | | | | | | | | | | | | $ | (0.13) | | |
Weighted average Class B shares outstanding, basic and diluted
|
| | | | | | | | | | 7,639,330 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class B share
|
| | | | | | | | | $ | (0.10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Scenario 1 Combined
(Assuming no cash redemption) |
| |
Scenario 2 Combined
(Assuming max cash redemptions) |
| ||||||
Weighted average shares calculation, basic and diluted
|
| | | | | | | | | | | | |
Acamar Partners public shares
|
| | | | 30,557,322 | | | | | | 4,910,985 | | |
Acamar Partners Sponsor shares
|
| | | | 7,639,330 | | | | | | 7,639,330 | | |
Acamar Partners shares issued to PIPE investors
|
| | | | 12,500,000 | | | | | | 12,500,000 | | |
Acamar Partners shares issued in the merger
|
| | | | 68,001,335 | | | | | | 68,001,335 | | |
Weighted average shares outstanding
|
| | | | 118,697,987 | | | | | | 93,051,650 | | |
Percent of shares owned by CarLotz (excluding shares acquired in the PIPE Investment)
|
| | | | 57.3% | | | | | | 73.1% | | |
Percent of shares owned by Acamar Partners (excluding the Sponsor)
|
| | | | 25.8% | | | | | | 5.3% | | |
Percent of shares owned by PIPE investors
|
| | | | 10.5% | | | | | | 13.4% | | |
Percent of shares owned by the Sponsor (including
shares subject to forfeiture and excluding shares acquired in the PIPE Investment) |
| | | | 6.4% | | | | | | 8.2% | | |
Name
|
| |
Office
|
|
Michael W. Bor | | | Chief Executive Officer | |
John Foley | | | Chief Operating Officer | |
Daniel Valerian | | | Chief Technology Officer | |
Brent Garrett | | | Director of Commercial Sales | |
Elizabeth Sanders | | | Chief Administrative Officer | |
| | |
Vested
CarLotz options |
| |
Unvested
CarLotz options |
| ||||||
Named Executive Officers | | | | | | | | | | | | | |
Michael W. Bor
|
| | | | 25,000 | | | | | | 110,188 | | |
John Foley
|
| | | | 15,000 | | | | | | 102,688 | | |
Daniel Valerian
|
| | | | 35,000 | | | | | | 79,000 | | |
Brent Garrett
|
| | | | 5,000 | | | | | | 11,000 | | |
All Other Executive Officers as a Group
|
| | | | 1,000 | | | | | | 40,000 | | |
Non-Executive Directors | | | | | | | | | | | | | |
Steven G. Carrel
|
| | | | — | | | | | | — | | |
David R. Mitchell
|
| | | | — | | | | | | — | | |
Michael Vellucci
|
| | | | — | | | | | | — | | |
Aaron S. Montgomery
|
| | | | 25,000 | | | | | | — | | |
William S. Boland
|
| | | | 25,000 | | | | | | — | | |
Robert Kurnick
|
| | | | — | | | | | | — | | |
| | |
Existing Charter
|
| |
Proposed Charter
|
|
Authorized Shares (Proposal 2)
|
| | The Acamar Partners existing charter authorizes 220,000,000 shares, consisting of (a) 215,000,000 shares of common stock, including (i) 200,000,000 shares of Class A common stock and (ii) 15,000,000 shares of Class B common stock, and (b) 5,000,000 shares of preferred stock. | | | The proposed New CarLotz charter would authorize 510,000,000 shares, consisting of 500,000,000 shares of Class A common stock and 10,000,000 shares of preferred stock. | |
Classification of the Board of Directors (Proposal 3)
|
| | The Acamar Partners existing charter provides that the Acamar Partners board of directors is divided into two classes with only one class of directors being elected each year and each class (except those directors appointed prior to Acamar Partners’ first annual meeting of stockholders) serving a two-year term. | | | The proposed New CarLotz charter provides that the New CarLotz board of directors be divided into three classes with only one class of directors being elected in each year and each class serving a three-year term. | |
Director Removal (Proposal 4)
|
| | Acamar Partners existing charter provides that directors can be removed only for cause, by the affirmative vote of the majority of the holders of the outstanding shares of capital stock entitled to elect such director or directors | | | The proposed New CarLotz charter provides that subject to the rights granted to certain stockholders pursuant to the New CarLotz Stockholders Agreement, directors may be removed only for cause with a supermajority vote consisting of 662∕3% of outstanding shares of stockholders. | |
Required Vote to Amend the Charter (Proposal 5)
|
| |
Acamar Partners has the right from time to time, to amend, alter, change, add or repeal any provision of the Acamar Partners’ charter.
Any amendment, modification or repeal of Acamar Partners charter Article VIII (Indemnification) shall not adversely affect any right or protection of a director of Acamar Partners under Article VIII in respect of any act or omission occurring prior to the time of such amendment, modification or repeal.
|
| |
The proposed New CarLotz charter provides that a supermajority vote consisting of 662∕3% of outstanding shares of stockholders is required to amend most charter provisions.
Stockholders of common stock are not entitled to vote on any amendment to the New CarLotz charter that alters or changes the powers, preferences, rights or other terms of one or more outstanding series of preferred stock.
|
|
Required Vote to Amend the Bylaws (Proposal 6)
|
| | Acamar Partners existing charter provides that the affirmative vote of the majority of the board of director is required to make, repeal, alter, amend and repeal any or all of the bylaws. | | | The proposed New CarLotz charter provides that the board of directors has the power to make, repeal, alter or amend any or all of the bylaws. | |
| | |
Existing Charter
|
| |
Proposed Charter
|
|
| | | Affirmative vote of the majority of the holders of the outstanding shares of capital stock entitled to elect such director or directors, voting as a single class required to adopt, amend, alter or repeal the bylaws. Stockholders cannot adopt bylaws that would invalidate any prior act of the board of directors that would have been valid if such bylaws had not been adopted | | | Supermajority threshold (662∕3% of outstanding shares of stockholders) required to amend the bylaws. | |
Corporate Opportunity (Proposal 7)
|
| | Acamar Partners existing charter provides that to the extent allowed by law, the doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to Acamar Partners or any of its officers or directors, in circumstances where the application of any such doctrine would conflict with any fiduciary duties or contractual obligations they may have as of the date of the Acamar Partners charter or in the future, and Acamar Partners renounces any expectancy that any of the directors or officers of Acamar Partners will offer any such corporate opportunity of which he or she may become aware to Acamar Partners. In addition to the foregoing, prior to the consummation of the proposed transaction, the doctrine of corporate opportunity shall not apply to any other corporate opportunity with respect to any of the directors or officers of Acamar Partners unless such corporate opportunity is offered to such person solely in his or her capacity as a director or officer of Acamar Partners and such opportunity is one Acamar Partners is legally and contractually permitted to undertake and would otherwise be reasonable for Acamar Partners to pursue and the director or officer is permitted to refer that opportunity to Acamar Partners without violating any legal obligation. | | | The proposed New CarLotz charter recognizes that certain directors, principals, officers, employees and/or certain of the affiliates may serve as directors of New CarLotz and may now engage and may continue to engage in the same or similar activities or related lines of business as those in which New CarLotz, directly or indirectly, may engage or propose to engage and/or other business activities that overlap with or compete with those in which New CarLotz or any of its affiliates, directly or indirectly, may engage or propose to engage. Article VIII, Business Opportunity, set forth to regulate and define the conduct of certain affairs of New CarLotz with respect to certain classes or categories of business opportunities and the powers, rights, duties and liabilities of the New CarLotz and its directors, officers and stockholders in connection therewith. | |
Approval of Additional Amendments in Connection with the Merger (Proposal 8)
|
| | The Acamar Partners existing charter contains various provisions applicable only to blank check companies and other provisions to be amended as a result of the merger. | | | The proposed New CarLotz charter will (i) change the combined company’s name to “CarLotz, Inc.” and (ii) remove certain provisions of the Acamar Partners existing charter related to Acamar Partners’ status as a SPAC and make certain related changes. Pursuant to these amendments, Article IX of the Acamar Partners existing charter will not be included in the New CarLotz charter. | |
Name and Principal Position(s)
|
| |
Number
of Stock Options |
| |
Number of
Restricted Stock Units |
| |||
Michael W. Bor
|
| | | | | | | | | |
Chief Executive Officer
|
| | | | | | | | | |
John Foley
|
| | | | | | | | | |
Chief Operating Officer
|
| | | | | | | | | |
Daniel Valerian
|
| | | | | | | | | |
Chief Technology Officer
|
| | | | | | | | | |
Brent Garrett
|
| | | | | | | | | |
Director of Commercial Sales
|
| | | | | | | | | |
All executive officers as a group ( persons)
|
| | | | | | | | | |
All non-executive directors as a group ( persons)
|
| | | | | | | | | |
All employees, including all officers who are not executive officers, as a group ( persons)
|
| | | | | | | 22,500 | | |
| | |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | 43,368 | | | | | $ | 90,382 | | | | | $ | 53,448 | | | | | $ | 41,758 | | |
Wholesale vehicle sales
|
| | | | 5,036 | | | | | | 4,372 | | | | | | 8,454 | | | | | | 3,153 | | | | | | 1,340 | | |
Finance and insurance, net
|
| | | | 1,787 | | | | | | 1,559 | | | | | | 3,117 | | | | | | 1,608 | | | | | | 974 | | |
Lease income, net
|
| | | | 272 | | | | | | 265 | | | | | | 533 | | | | | | 142 | | | | | | — | | |
Total revenues
|
| | | | 51,789 | | | | | | 49,564 | | | | | | 102,486 | | | | | | 58,351 | | | | | | 44,072 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 46,588 | | | | | | 45,126 | | | | | | 93,780 | | | | | | 52,708 | | | | | | 38,519 | | |
Gross profit
|
| | | | 5,201 | | | | | | 4,438 | | | | | | 8,706 | | | | | | 5,643 | | | | | | 5,553 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 7,026 | | | | | | 8,909 | | | | | | 18,305 | | | | | | 11,661 | | | | | | 7,254 | | |
Depreciation expense
|
| | | | 191 | | | | | | 287 | | | | | | 504 | | | | | | 338 | | | | | | 218 | | |
Management fee expense – related party
|
| | | | 132 | | | | | | 124 | | | | | | 250 | | | | | | 250 | | | | | | 73 | | |
Total operating expenses
|
| | | | 7,349 | | | | | | 9,320 | | | | | | 19,059 | | | | | | 12,249 | | | | | | 7,545 | | |
Loss from operations
|
| | | | (2,148) | | | | | | (4,882) | | | | | | (10,353) | | | | | | (6,606) | | | | | | (1,992) | | |
Interest expense
|
| | | | 256 | | | | | | 339 | | | | | | 651 | | | | | | 466 | | | | | | 414 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Management fee income – related party
|
| | | | — | | | | | | — | | | | | | — | | | | | | 127 | | | | | | 180 | | |
Change in fair value of warrants liability
|
| | | | 31 | | | | | | 12 | | | | | | 24 | | | | | | (2) | | | | | | 50 | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 629 | | | | | | (50) | | | | | | (1,396) | | | | | | (272) | | | | | | (79) | | |
Other income (expense)
|
| | | | 33 | | | | | | (256) | | | | | | (291) | | | | | | 662 | | | | | | (210) | | |
Total other income (expense), net
|
| | | | 693 | | | | | | (294) | | | | | | (1,663) | | | | | | 515 | | | | | | (59) | | |
Loss before income tax expense
|
| | | | (1,711) | | | | | | (5,515) | | | | | | (12,667) | | | | | | (6,557) | | | | | | (2,465) | | |
Income tax expense
|
| | | | 9 | | | | | | 5 | | | | | | 11 | | | | | | 3 | | | | | | 4 | | |
Net loss
|
| | | $ | (1,720) | | | | | $ | (5,520) | | | | | $ | (12,678) | | | | | $ | (6,560) | | | | | $ | (2,469) | | |
| | |
Six Months Ended June 30,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| |||||||||
| | |
($ in thousands, except per unit metrics)
|
| |||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | 43,368 | | | | | | 3.1% | | |
Wholesale vehicle sales
|
| | | | 5,036 | | | | | | 4,372 | | | | | | 15.2% | | |
Finance and insurance, net
|
| | | | 1,787 | | | | | | 1,559 | | | | | | 14,6% | | |
Lease income, net
|
| | | | 272 | | | | | | 265 | | | | | | 2.6% | | |
Total revenues
|
| | | $ | 51,789 | | | | | $ | 49,564 | | | | | | 4.5% | | |
Cost of sales: | | | | | | | | | | | | | | | | | | | |
Retail vehicle cost of sales
|
| | | $ | 41,546 | | | | | $ | 40,115 | | | | | | 3.2% | | |
Wholesale vehicle cost of sales
|
| | | | 5,042 | | | | | | 5,011 | | | | | | 0.6% | | |
Total cost of sales
|
| | | $ | 46,588 | | | | | $ | 45,126 | | | | | | 3.2% | | |
Gross profit: | | | | | | | | | | | | | | | | | | | |
Retail vehicle gross profit
|
| | | $ | 3,148 | | | | | $ | 3,253 | | | | | | (3.2)% | | |
Wholesale vehicle gross profit
|
| | | | (6) | | | | | | (639) | | | | | | 100.9% | | |
Finance and insurance gross profit
|
| | | | 1,787 | | | | | | 1,559 | | | | | | 14.6% | | |
Lease income, net
|
| | | | 272 | | | | | | 265 | | | | | | 2.6% | | |
Total gross profit
|
| | | $ | 5,201 | | | | | $ | 4,438 | | | | | | 17.2% | | |
Unit sales information: | | | | | | | | | | | | | | | | | | | |
Retail vehicles unit sales
|
| | | | 2,829 | | | | | | 3,136 | | | | | | (9.8)% | | |
Wholesale vehicles unit sales
|
| | | | 579 | | | | | | 653 | | | | | | (11.3)% | | |
Gross profit per unit(1): | | | | | | | | | | | | | | | | | | | |
Retail vehicles gross profit per unit
|
| | | $ | 1,774 | | | | | $ | 1,534 | | | | | | 13.7% | | |
Wholesale vehicles gross profit per unit
|
| | | | (10) | | | | | | (979) | | | | | | 98.9% | | |
Total gross profit per unit
|
| | | $ | 1,526 | | | | | $ | 1,171 | | | | | | 30.3% | | |
| | |
Six Months Ended June 30,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| |||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||
Compensation and benefits(1)
|
| | | $ | 3,564 | | | | | $ | 4,270 | | | | | | 16.5% | | |
Marketing expense
|
| | | | 940 | | | | | | 2,021 | | | | | | 53.5% | | |
Other costs(2)
|
| | | | 2,522 | | | | | | 2,618 | | | | | | 3.7% | | |
Total selling, general and administrative expenses
|
| | | $ | 7,026 | | | | | $ | 8,909 | | | | | | 21.1% | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
Change
|
| |
2017
|
| |
Change
|
| |||||||||||||||
| | |
($ in thousands, except per unit metrics)
|
| |||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 90,382 | | | | | $ | 53,448 | | | | | | 69.1% | | | | | $ | 41,758 | | | | | | 28.0% | | |
Wholesale vehicle sales
|
| | | | 8,454 | | | | | | 3,153 | | | | | | 168.1% | | | | | | 1,340 | | | | | | 135.2% | | |
Finance and insurance, net
|
| | | | 3,117 | | | | | | 1,608 | | | | | | 93.8% | | | | | | 974 | | | | | | 65.1% | | |
Lease income, net
|
| | | | 533 | | | | | | 142 | | | | | | 275.4% | | | | | | — | | | | | | NM% | | |
Total revenues
|
| | | $ | 102,486 | | | | | $ | 58,351 | | | | | | 75.6% | | | | | $ | 44,072 | | | | | | 32.4% | | |
Cost of sales (exclusive of depreciation): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicle cost of sales
|
| | | $ | 84,534 | | | | | $ | 48,523 | | | | | | 74.2% | | | | | $ | 36,680 | | | | | | 32.3% | | |
Wholesale vehicle cost of sales
|
| | | | 9,246 | | | | | | 4,185 | | | | | | 120.9% | | | | | | 1,839 | | | | | | 127.6% | | |
Total cost of sales
|
| | | $ | 93,780 | | | | | $ | 52,708 | | | | | | 77.9% | | | | | $ | 38,519 | | | | | | 36.8% | | |
Gross profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicle gross profit
|
| | | $ | 5,848 | | | | | $ | 4,925 | | | | | | 18.7% | | | | | $ | 5,078 | | | | | | (3.0)% | | |
Wholesale vehicle gross profit
|
| | | | (792) | | | | | | (1,032) | | | | | | (23.3)% | | | | | | (499) | | | | | | 106.8% | | |
Finance and insurance gross profit
|
| | | | 3,117 | | | | | | 1,608 | | | | | | 93.8% | | | | | | 974 | | | | | | 65.1% | | |
Lease income, net
|
| | | | 533 | | | | | | 142 | | | | | | 275.4% | | | | | | — | | | | | | NM | | |
Total gross profit
|
| | | $ | 8,706 | | | | | $ | 5,643 | | | | | | 54.3% | | | | | $ | 5,553 | | | | | | 1.6% | | |
|
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
Change
|
| |
2017
|
| |
Change
|
| |||||||||||||||
| | |
($ in thousands, except per unit metrics)
|
| |||||||||||||||||||||||||||
Unit sales information: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicles unit sales
|
| | | | 6,435 | | | | | | 4,077 | | | | | | 57.8% | | | | | | 3,412 | | | | | | 19.5% | | |
Wholesale vehicles unit sales
|
| | | | 1,159 | | | | | | 610 | | | | | | 90.0% | | | | | | 239 | | | | | | 155.2% | | |
Gross profit per unit(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail vehicles gross profit per unit
|
| | | $ | 1,393 | | | | | $ | 1,602 | | | | | | (13.1)% | | | | | $ | 1,774 | | | | | | (9.7)% | | |
Wholesale vehicles gross profit per unit
|
| | | | (683) | | | | | | (1,692) | | | | | | (59.6)% | | | | | | (2,088) | | | | | | (19.0)% | | |
Total gross profit per unit
|
| | | $ | 1,146 | | | | | $ | 1,204 | | | | | | (4.8)% | | | | | $ | 1,521 | | | | | | (20.8)% | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
Change
|
| |
2017
|
| |
Change
|
| |||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||
Compensation and benefits(1)
|
| | | $ | 8,992 | | | | | $ | 6,418 | | | | | | 40.1% | | | | | $ | 4,138 | | | | | | 55.1% | | |
Marketing expense
|
| | | | 3,803 | | | | | | 1,871 | | | | | | 103.3% | | | | | | 1,217 | | | | | | 53.7% | | |
Other costs(2)
|
| | | | 5,510 | | | | | | 3,372 | | | | | | 63.4% | | | | | | 1,899 | | | | | | 77.6% | | |
Total selling, general and administrative expenses
|
| | | $ | 18,305 | | | | | $ | 11,661 | | | | | | 57.0% | | | | | $ | 7,254 | | | | | | 60.8% | | |
| | |
Six Months Ended
June 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
($ in thousands)
|
| |||||||||
Cash Flow Data: | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities
|
| | | $ | 4,702 | | | | | $ | (4,819) | | |
Net cash (used in) investing activities
|
| | | | (791) | | | | | | (312) | | |
Net cash provided by (used in) financing activities
|
| | | | (2,552) | | | | | | 8,401 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
| | |
($ in thousands)
|
| |||||||||||||||
Cash Flow Data: | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities
|
| | | $ | (5,473) | | | | | $ | (11,761) | | | | | $ | (5,323) | | |
Net cash used in investing activities
|
| | | | (487) | | | | | | (362) | | | | | | (204) | | |
Net cash provided by financing activities
|
| | | | 8,492 | | | | | | 4,503 | | | | | | 12,709 | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
| | |
Total
|
| |
Less than 1 Year
|
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than 5 years
|
| |||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||
Floor plan facility(1)
|
| | | $ | 6,739 | | | | | $ | 6,739 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Convertible note
|
| | | | 3,000 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | — | | |
Cumulative preferred dividends
payable |
| | | | 2,900 | | | | | | 2,900 | | | | | | — | | | | | | — | | | | | | — | | |
Operating lease obligations
|
| | | | 12,388 | | | | | | 2,955 | | | | | | 5,175 | | | | | | 2,849 | | | | | | 1,409 | | |
Total
|
| | | $ | 25,027 | | | | | $ | 16,094 | | | | | $ | 5,175 | | | | | $ | 2,849 | | | | | $ | 1,409 | | |
Name and Principal
Position |
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($)(3) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($)(4) |
| |
Total
($) |
| |||||||||||||||||||||||||||
Michael W. Bor
Chief Executive Officer |
| | | | 2019 | | | | | | 334,793 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 334,793 | | |
John Foley
Chief Operating Officer |
| | | | 2019 | | | | | | 168,269 | | | | | | — | | | | | | — | | | | | | 10,490 | | | | | | 25,500 | | | | | | — | | | | | | — | | | | | | 204,259 | | |
Daniel Valerian
Chief Technology Officer |
| | | | 2019 | | | | | | 124,500 | | | | | | — | | | | | | — | | | | | | 13,112 | | | | | | — | | | | | | — | | | | | | — | | | | | | 137,612 | | |
Brent Garrett
Director of Commercial Sales |
| | | | 2019 | | | | | | 127,692 | | | | | | — | | | | | | — | | | | | | 1,311 | | | | | | 45,000 | | | | | | — | | | | | | — | | | | | | 174,003 | | |
Aaron S. Montgomery
Director of Commercial Sales |
| | | | 2019 | | | | | | 231,780 | | | | | | — | | | | | | — | | | | | | 8,800 | | | | | | — | | | | | | — | | | | | | 42,029 | | | | | | 282,609 | | |
William S. Boland
Former Chief Marketing Officer |
| | | | 2019 | | | | | | 231,780 | | | | | | — | | | | | | — | | | | | | 8,800 | | | | | | — | | | | | | — | | | | | | 45,779 | | | | | | 286,359 | | |
Named Executive Officer
|
| |
2019 Stock
Options Granted |
| |||
Michael W. Bor
|
| | | | — | | |
John Foley
|
| | | | 40,000 | | |
Daniel Valerian
|
| | | | 50,000 | | |
Brent Garrett
|
| | | | 5,000 | | |
Aaron Montgomery
|
| | | | — | | |
William Boland
|
| | | | — | | |
| | | | | | | | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| ||||||||||||||||||
Michael W. Bor
|
| | | | 11/1/2015(1) | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 4/23/2018(2) | | | | | | — | | | | | | — | | | | | | 60,188 | | | | | | 9.82 | | | | | | 4/23/2028 | | |
| | | | | 2/4/2020(2) | | | | | | — | | | | | | — | | | | | | 50,000 | | | | | | 9.82 | | | | | | 2/4/2030 | | |
John Foley
|
| | | | 2/1/2015(1) | | | | | | 5,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 6/1/2016(1) | | | | | | 2,500 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 1/1/2017(1) | | | | | | 7,500 | | | | | | 2,500 | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 5/14/2018(2) | | | | | | — | | | | | | — | | | | | | 60,188 | | | | | | 9.82 | | | | | | 5/14/2028 | | |
| | | | | 11/1/2019(2) | | | | | | — | | | | | | — | | | | | | 40,000 | | | | | | 9.82 | | | | | | 11/1/2029 | | |
Daniel Valerian
|
| | | | 1/20/2014(1) | | | | | | 2,500 | | | | | | — | | | | | | — | | | | | | 2.56 | | | | | | 8/31/2022 | | |
| | | | | 1/20/2014(1) | | | | | | 2,500 | | | | | | — | | | | | | — | | | | | | 2.56 | | | | | | 8/31/2022 | | |
| | | | | 1/20/2014(1) | | | | | | 5,000 | | | | | | — | | | | | | — | | | | | | 2.56 | | | | | | 8/31/2022 | | |
| | | | | 1/1/2015(1) | | | | | | 5,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 1/1/2016(1) | | | | | | 5,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 1/1/2017(1) | | | | | | 15,000 | | | | | | 5,000 | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 4/23/2018(2) | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | 9.82 | | | | | | 4/23/2028 | | |
| | | | | 11/1/2019(2) | | | | | | — | | | | | | — | | | | | | 50,000 | | | | | | 9.82 | | | | | | 11/1/2029 | | |
| | | | | 8/10/2020(2) | | | | | | — | | | | | | — | | | | | | 18,000 | | | | | | 9.82 | | | | | | 8/10/2030 | | |
Brent Garrett
|
| | | | 1/2/2013(1) | | | | | | 4,000 | | | | | | — | | | | | | — | | | | | | 2.56 | | | | | | 8/31/2022 | | |
| | | | | 6/1/2016(1) | | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
| | | | | 5/16/2018(2) | | | | | | — | | | | | | — | | | | | | 6,000 | | | | | | 9.82 | | | | | | 5/16/2028 | | |
| | | | | 11/1/2019(2) | | | | | | — | | | | | | — | | | | | | 5,000 | | | | | | 9.82 | | | | | | 11/1/2029 | | |
Aaron S. Montgomery
|
| | | | 11/1/2015(1) | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
William S. Boland
|
| | | | 11/1/2015(1) | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | 6.82 | | | | | | 8/31/2022 | | |
Name
|
| |
Age
|
| |
Title
|
|
Juan Carlos Torres Carretero | | |
71
|
| | Chairman of the Board | |
Luis Ignacio Solorzano Aizpuru | | |
48
|
| | Chief Executive Officer and Director | |
Raffaele R. Vitale | | |
58
|
| | President | |
Juan Duarte Hinterholzer | | |
41
|
| | Chief Operating Officer | |
Joseba Asier Picaza Ucar | | |
40
|
| | Chief Financial Officer and Secretary | |
Domenico de Sole | | |
76
|
| | Director | |
James E. Skinner | | |
67
|
| | Director | |
Teck H. Wong | | |
47
|
| | Director | |
| | | | | | | | | | | | | | |
After the Merger
|
| |||||||||
| | |
Before the Merger
|
| |
Assuming No
Redemption |
| |
Assuming Maximum
Redemption(2) |
| |||||||||||||||
Class A shares
|
| | | | 30,557,322 | | | | | | 80.0% | | | | | | | | | | | | | | |
Class B shares
|
| | | | 7,639,330 | | | | | | 20.0% | | | | | | | | | | | | | | |
Common stock outstanding(1)
|
| | | | 38,196,652 | | | | | | | | | | | | 118,697,987 | | | | | | 93,051,650 | | |
Name of Beneficial Owner
|
| |
Shares
|
| |
%
total |
| |
%
Class A common stock |
| |
Shares(4)
|
| |
% total
|
| |
Shares
|
| |
% total
|
| |||||||||||||||||||||
Five Percent Holders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acamar Partners Sponsor I LLC (3)
|
| | | | 7,639,330 | | | | | | 20.0% | | | | | | n.a. | | | | | | 7,889,330 | | | | | | 6.6% | | | | | | 7,889,330 | | | | | | 8.5% | | |
Polar Asset Management Partners, LLC (4)
|
| | | | 2,378,342 | | | | | | 6.2% | | | | | | 7.8% | | | | | | 2,378,342 | | | | | | 2.0% | | | | | | — | | | | | | 0.0% | | |
Manulife Investment Management Ltd.(4)
|
| | | | 2,233,166 | | | | | | 5.8% | | | | | | 7.3% | | | | | | 2,233,166 | | | | | | 1.9% | | | | | | — | | | | | | 0.0% | | |
Glazer Capital LLC(4)
|
| | | | 1,939,837 | | | | | | 5.1% | | | | | | 6.3% | | | | | | 1,939,837 | | | | | | 1.6% | | | | | | — | | | | | | 0.0% | | |
UBS O’Connor LLC(4)
|
| | | | 1,915,300 | | | | | | 5.0% | | | | | | 6.3% | | | | | | 1,915,300 | | | | | | 1.6% | | | | | | — | | | | | | 0.0% | | |
Tenor Capital Management Co. LP(4)
|
| | | | 1,700,000 | | | | | | 4.5% | | | | | | 5.6% | | | | | | 1,700,000 | | | | | | 1.4% | | | | | | — | | | | | | 0.0% | | |
TRP(3) | | | | | — | | | | | | — | | | | | | — | | | | | | 21,739,677 | | | | | | 18.3% | | | | | | 21,739,677 | | | | | | 23.4% | | |
Michael W. Bor(3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 10,207,231 | | | | | | 8.6% | | | | | | 10,207,231 | | | | | | 11.0% | | |
KAR(3) | | | | | — | | | | | | — | | | | | | — | | | | | | 6,401,428 | | | | | | 5.4% | | | | | | 6,401,428 | | | | | | 6.9% | | |
Directors and Executive Officers of Acamar Partners (3)(5)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Juan Carlos Torres Carretero
|
| | | | 1,346,770 | | | | | | 3.5% | | | | | | 4.4% | | | | | | 1,396,770 | | | | | | 1.2% | | | | | | 1,396,770 | | | | | | 1.5% | | |
Luis Ignacio Solorzano Aizpuru
|
| | | | 2,103,202 | | | | | | 5.5% | | | | | | 6.9% | | | | | | 2,153,202 | | | | | | 1.8% | | | | | | 2,153,202 | | | | | | 2.3% | | |
Raffaele R. Vitale
|
| | | | 1,346,770 | | | | | | 3.5% | | | | | | 4.4% | | | | | | 1,396,770 | | | | | | 1.2% | | | | | | 1,396,770 | | | | | | 1.5% | | |
Juan Duarte Hinterholzer
|
| | | | 1,052,602 | | | | | | 2.8% | | | | | | 3.4% | | | | | | 1,102,602 | | | | | | 0.9% | | | | | | 1,102,602 | | | | | | 1.2% | | |
Joseba Asier Picaza Ucar
|
| | | | 1,052,602 | | | | | | 2.8% | | | | | | 3.4% | | | | | | 1,102,602 | | | | | | 0.9% | | | | | | 1,102,602 | | | | | | 1.2% | | |
Domenico de Sole
|
| | | | 25,000 | | | | | | * | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | |
Teck H. Wong
|
| | | | 20,000 | | | | | | * | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | |
James E. Skinner
|
| | | | 20,000 | | | | | | * | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | |
All Directors and Executive Officers of Acamar Partners as a Group (8 Individuals)
|
| | | | 6,966,946 | | | | | | 18.2% | | | | | | 22.8% | | | | | | 7,216,946 | | | | | | 6.1% | | | | | | 7,216,946 | | | | | | 7.8% | | |
Directors and Named Executive Officers of New CarLotz After the Closing
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael W. Bor(3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 10,207,231 | | | | | | 8.6% | | | | | | 10,207,231 | | | | | | 11.0% | | |
John Foley
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Daniel Valerian
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Brent Garrett
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David R. Mitchell(6)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 21,739,677 | | | | | | 18.3% | | | | | | 21,739,677 | | | | | | 23.4% | | |
Steven G. Carrel(6)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 21,739,677 | | | | | | 18.3% | | | | | | 21,739,677 | | | | | | 23.4% | | |
Luis Ignacio Solorzano Aizpuru(3)
|
| | | | 2,103,202 | | | | | | 5.5% | | | | | | 6.9% | | | | | | 2,153,202 | | | | | | 1.8% | | | | | | 2,153,202 | | | | | | 2.3% | | |
James E. Skinner(3)
|
| | | | 20,000 | | | | | | * | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | |
All Directors and Executive Officers of New CarLotz as a Group ( Individuals)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Name
|
| |
Age
|
| |
Position
|
|
Michael W. Bor | | |
46
|
| | Chief Executive Officer and Class III Director | |
John Foley | | |
43
|
| | Chief Operating Officer | |
Elizabeth Sanders | | |
30
|
| | Chief Administrative Officer | |
Robert Imhof | | |
43
|
| | Chief Financial Officer | |
Daniel Valerian | | |
46
|
| | Chief Technology Officer | |
| | | | | | Class I Director | |
| | | | | | Class I Director | |
| | | | | | Class I Director | |
David R. Mitchell | | |
53
|
| | Class II Director | |
James E. Skinner | | |
67
|
| | Class II Director | |
| | | | | | Class II Director | |
Steven G. Carrel | | |
46
|
| | Class III Director | |
Luis Ignacio Solorzano Aizpuru | | |
48
|
| | Class III Director | |
|
CarLotz
|
| |
New CarLotz
|
|
|
Authorized Capital Stock
|
| |||
|
CarLotz is currently authorized to issue 7,600,000 shares of common stock, par value $0.001 per share. As of October 21, 2020, there were 3,485,534 shares of CarLotz common stock outstanding.
CarLotz is currently authorized to issue 3,052,127 shares of preferred stock, par value $0.001 per share; of such authorized and unissued shares of preferred stock.
|
| |
New CarLotz will be authorized to issue 510,000,000 shares of capital stock, consisting of (i) 500,000,000 shares of Class A common stock, par value $0.01 per share, and (ii) 10,000,000 shares of preferred stock, par value $0.01 per share. As of , 2020, we expect there will be shares of New CarLotz common stock outstanding following consummation of the merger.
Following consummation of the merger, New CarLotz is not expected to have any preferred stock outstanding.
|
|
|
Number of Directors
|
| |||
| CarLotz initial board of directors consisted of three directors and was subsequently expanded to seven directors. The number of directors can be determined from time to time by resolution of the board of directors. | | | Subject to the rights of holders of any series of preferred stock to elect directors and the terms of the New CarLotz Stockholders Agreement, the number of directors is fixed from time to time by resolution of the New CarLotz board of directors. | |
|
Classified Board of Directors
|
| |||
| All directors are elected annually. | | | A three-class classified board of directors, with directors split as evenly as possible across the three classes. | |
|
CarLotz
|
| |
New CarLotz
|
|
|
Nomination Rights
|
| |||
| Holders of Series A preferred stock, as a class, are entitled to elect 3 or 5 directors, depending on whether there is additional investment, and holders of common stock are entitled to elect three directors. | | | The board of directors has the right to grant separate voting rights to any class or series of Preferred Stock, but none currently exist. Nomination rights will be granted in a separate New CarLotz Stockholders Agreement. | |
|
Filling Vacancies on the Board of Directors
|
| |||
|
If holders of shares of Series A preferred stock or common stock fail to elect a sufficient number of directors to fill all director positions, the seats unfilled will remain vacant until the class of stock entitled to fill the director seat elects a director. A vacancy in any seat filled by the holders of a class or series may only be filled by the remaining director or directors elected by that class or series of directors.
CarLotz bylaws provide that the majority of the directors then in office, including those who have resigned, have the power to fill vacancies.
|
| | Subject to the rights granted to certain stockholders pursuant to the New CarLotz Stockholders Agreement, vacancies may be filled only by the affirmative vote of a majority of the directors then in office, even if less than quorum, or by a sole remaining director. | |
|
Removal of Directors
|
| |||
| Directors can be removed, with or without cause, by the affirmative vote of the majority of the holders of the shares of the class or series of capital stock entitled to elect such director or directors. | | | Subject to the rights granted to certain stockholders pursuant to the New CarLotz Stockholders Agreement, directors may be removed only for cause with a supermajority vote (662∕3%) of outstanding shares). | |
|
Calling a Special Meeting of Stockholders
|
| |||
| Stockholders holding at least 10% of shares in the aggregate, the board of directors, chairperson or president can call a special meeting of stockholders | | | Special meetings may be called by the chairperson and may also be called by vote of a majority of the board of directors or the secretary, at the direction of the chairperson or a majority of the board of directors. | |
|
Advance Notice of Stockholder Proposal or Nomination
|
| |||
| None | | | Advance notice required not less than 90 nor more 120 days prior to annual meeting. Highly detailed disclosure required, including disclosure of derivatives, options, short positions, and the requirement that the stockholder nominee and nominator submit a questionnaire with the nomination and make various representations, agreements and warranties to New CarLotz. | |
|
Restrictions on Outside Compensation of Directors
|
| |||
| No restrictions on outside compensation of directors. | | | There are no restrictions on outside compensation of directors, however director nominees nominated pursuant to the advance notice bylaw must represent that he or she does not have any undisclosed direct or indirect compensation in connection with service as a director from a third party. | |
|
CarLotz
|
| |
New CarLotz
|
|
|
Stockholder Action by Written Consent
|
| |||
| The Existing CarLotz Charter contains various references to rights which may be exercised by written consent. CarLotz bylaws provide stockholders can take action by written consent, subject to signature and delivery requirements. | | | No action may be taken by stockholders via written consent unless the board of directors consents. | |
|
Voting Requirements for Amendments to Charter
|
| |||
|
The Existing CarLotz Charter is silent regarding mechanics of amending to the Existing CarLotz Charter.
The Existing CarLotz Charter does not allow for an amendment, alteration or repeal of provisions of Series A preferred stockholders without the written consent or affirmative vote of holders of a majority of Series A preferred stockholders. Any amendment, repeal or modification of Article Tenth (Indemnification) of the Existing CarLotz Charter shall not affect any right or protection for any person for any act or omission occurring prior to the repeal or modification of the Existing CarLotz Charter and shall not adversely affect any right or protection of any director, officer or other agent of the corporation existing at the time of such amendment, repeal or modification.
|
| |
The New CarLotz charter contains a supermajority threshold (662∕3% of outstanding shares) required to amend most charter provisions.
Stockholders of common stock are not entitled to vote on any amendment to the New CarLotz charter that alters or changes the powers, preferences, rights or other terms of one or more outstanding series of preferred stock.
|
|
|
Voting Requirements for Amendments to Bylaws
|
| |||
| The board of directors has the power to make, repeal, alter, amend and rescind any or all of the CarLotz bylaws. Stockholders are entitled to vote to adopt, amend or repeal the CarLotz bylaws. Cannot amend, alter or repeal provision of bylaws that adversely affect the powers, preferences or rights of Series A preferred stockholders without the written consent or affirmative vote of holders of a majority of Series A preferred stockholders. The CarLotz bylaws do not provide for special mechanics to amend the bylaws, so the general voting mechanics applicable to stockholders voting at stockholder meetings (majority of the votes cast affirmatively or negatively) apply. | | |
The board of directors has the power to make, repeal, alter or amend any or all of the New CarLotz bylaws.
Supermajority threshold (662∕3% of outstanding shares) required to amend the New CarLotz bylaws.
|
|
|
Blank Check Preferred Stock
|
| |||
| No blank check. The board of directors has authorized 3,052,127 shares of Series A preferred stock, of which 2,034,751 shares are outstanding. | | | The board of directors is authorized to issue preferred stock. | |
|
Delaware Forum Selection Provision
|
| |||
| Not included | | | The Court of Chancery of the State of Delaware (or the federal district court for the District of Delaware) shall be the sole and exclusive forum for specified actions, unless New CarLotz consents in | |
|
CarLotz
|
| |
New CarLotz
|
|
| | | | writing to an alternative forum. The federal district courts are the exclusive forum for claims arising under the Securities Act. | |
|
Waiver of Corporate Opportunity
|
| |||
| The Existing CarLotz charter renounces opportunities offered to any person who is a director of CarLotz. | | | New CarLotz recognizes that the stockholders party to the New CarLotz Stockholders Agreement may compete in the same line of business, and have waived the obligation of those stockholders, their affiliates and any of their director nominees serving on the board of directors, to bring known potential business opportunities to New CarLotz for consideration. | |
| |
Fair Market Value of New CarLotz Common Stock
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
$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 | | |
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 | | |
Redemption Date
(period to expiration of warrants) |
| |
Fair Market Value of New CarLotz Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
$10.00
|
| |
$11.00
|
| |
$12.00
|
| |
$13.00
|
| |
$14.00
|
| |
$15.00
|
| |
$16.00
|
| |
$17.00
|
| |
$18.00
|
| |||||||||||||||||||||||||||||
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 | | |
|
CarLotz, Inc. Audited Financial Statements
Audited Consolidated Financial Statements for the Years Ended December 31, 2019, 2018 and 2017 |
| | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | |
|
CarLotz, Inc. Unaudited Condensed Financial Statements
Unaudited Condensed Consolidated Financial Statements as of June 30, 2020 |
| | | | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-38 | | |
| ACAMAR PARTNERS FINANCIAL STATEMENTS | | | | | | | |
| Acamar Partners Acquisition Corp. Audited Financial Statements | | | |||||
|
Audited Financial Statements for the Years Ended December 31, 2019 and for the period from November 7, 2018 (inception) to December 31, 2018
|
| | | | | | |
| | | | | F-56 | | | |
| | | | | F-57 | | | |
| | | | | F-58 | | | |
| | | | | F-59 | | | |
| | | | | F-60 | | | |
| | | | | F-61 | | | |
| Acamar Partners Acquisition Corp. Unaudited Condensed Financial Statements | | | | | | | |
| | | | | F-74 | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | |
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 3,214 | | | | | $ | 1,019 | | |
Restricted cash
|
| | | | 888 | | | | | | 551 | | |
Accounts receivable, net
|
| | | | 3,256 | | | | | | 2,412 | | |
Inventories
|
| | | | 7,625 | | | | | | 10,160 | | |
Other current assets
|
| | | | 234 | | | | | | 228 | | |
Total Current Assets
|
| | | | 15,217 | | | | | | 14,370 | | |
Property and equipment, net
|
| | | | 631 | | | | | | 1,030 | | |
Lease vehicles, net
|
| | | | 444 | | | | | | 731 | | |
Other assets
|
| | | | 343 | | | | | | 305 | | |
Total Assets
|
| | | $ | 16,635 | | | | | $ | 16,436 | | |
Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Long-term debt, current
|
| | | $ | 2,825 | | | | | $ | 6 | | |
Floor plan notes payable
|
| | | | 6,739 | | | | | | 8,697 | | |
Promissory note
|
| | | | — | | | | | | 418 | | |
Accounts payable
|
| | | | 2,134 | | | | | | 742 | | |
Accrued expenses
|
| | | | 1,576 | | | | | | 1,051 | | |
Accrued expenses – related party
|
| | | | 3,102 | | | | | | 1,351 | | |
Other current liabilities
|
| | | | 434 | | | | | | 205 | | |
Total Current Liabilities
|
| | | | 16,810 | | | | | | 12,470 | | |
Long-term debt, less current portion
|
| | | | — | | | | | | 11 | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | 3,755 | | | | | | 3,261 | | |
Other liabilities
|
| | | | 931 | | | | | | 301 | | |
Total Liabilities
|
| | | | 21,496 | | | | | | 16,043 | | |
Commitments and Contingencies (Note 16)
|
| | | | — | | | | | | — | | |
Redeemable Convertible Preferred Stock: | | | | | | | | | | | | | |
Series A Preferred Stock $0.001 stated value; authorized 3,052,127 shares; issued and
outstanding 2,034,751 and 1,220,851 shares, as of December 31, 2019 and 2018, respectively; aggregate liquidation preference of approximately $34,300 and $19,931 as of December 31, 2019 and 2018, respectively |
| | | | 17,560 | | | | | | 8,670 | | |
Stockholders’ Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $0.001 par value; authorized 7,600,000 shares, issued 3,869,118 shares, and outstanding 3,716,526 shares
|
| | | | 4 | | | | | | 4 | | |
Additional paid-in capital
|
| | | | 6,560 | | | | | | 8,026 | | |
Accumulated deficit
|
| | | | (27,485) | | | | | | (14,807) | | |
Treasury stock, $0.001 par value; 152,592 shares
|
| | | | (1,500) | | | | | | (1,500) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | (22,421) | | | | | | (8,277) | | |
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
|
| | | $ | 16,635 | | | | | $ | 16,436 | | |
|
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Revenues: | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 90,382 | | | | | $ | 53,448 | | | | | $ | 41,758 | | |
Wholesale vehicle sales
|
| | | | 8,454 | | | | | | 3,153 | | | | | | 1,340 | | |
Finance and insurance, net
|
| | | | 3,117 | | | | | | 1,608 | | | | | | 974 | | |
Lease income, net
|
| | | | 533 | | | | | | 142 | | | | | | — | | |
Total Revenues
|
| | | | 102,486 | | | | | | 58,351 | | | | | | 44,072 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 93,780 | | | | | | 52,708 | | | | | | 38,519 | | |
Gross Profit
|
| | | | 8,706 | | | | | | 5,643 | | | | | | 5,553 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 18,305 | | | | | | 11,661 | | | | | | 7,254 | | |
Depreciation expense
|
| | | | 504 | | | | | | 338 | | | | | | 218 | | |
Management fee expense – related party
|
| | | | 250 | | | | | | 250 | | | | | | 73 | | |
Total Operating Expenses
|
| | | | 19,059 | | | | | | 12,249 | | | | | | 7,545 | | |
Loss from Operations
|
| | | | (10,353) | | | | | | (6,606) | | | | | | (1,992) | | |
Interest Expense
|
| | | | 651 | | | | | | 466 | | | | | | 414 | | |
Other Income (Expense), net | | | | | | | | | | | | | | | | | | | |
Management fee income – related party
|
| | | | — | | | | | | 127 | | | | | | 180 | | |
Change in fair value of warrants liability
|
| | | | 24 | | | | | | (2) | | | | | | 50 | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | (1,396) | | | | | | (272) | | | | | | (79) | | |
Other income (expense)
|
| | | | (291) | | | | | | 662 | | | | | | (210) | | |
Total Other Income (Expense), net
|
| | | | (1,663) | | | | | | 515 | | | | | | (59) | | |
Loss Before Income Tax Expense
|
| | | | (12,667) | | | | | | (6,557) | | | | | | (2,465) | | |
Income Tax Expense
|
| | | | 11 | | | | | | 3 | | | | | | 4 | | |
Net Loss
|
| | | $ | (12,678) | | | | | $ | (6,560) | | | | | $ | (2,469) | | |
Redeemable convertible preferred stock dividends (undeclared and
cumulative) |
| | | | (1,579) | | | | | | (1,014) | | | | | | (274) | | |
Net loss attributable to common stockholders
|
| | | $ | (14,257) | | | | | $ | (7,574) | | | | | $ | (2,743) | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (3.84) | | | | | $ | (2.04) | | | | | $ | (0.75) | | |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
|
| | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,660,679 | | |
| | |
Redeemable
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Treasury Stock
|
| |
Stockholders’
Equity (Deficit) |
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance January 1, 2017
|
| | | | — | | | | | $ | — | | | | | | | 3,638,126 | | | | | $ | 4 | | | | | $ | 6,993 | | | | | $ | (5,778) | | | | | | — | | | | | $ | — | | | | | $ | 1,219 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,469) | | | | | | — | | | | | | — | | | | | | (2,469) | | |
Purchase of treasury stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (152,592) | | | | | | (1,500) | | | | | | (1,500) | | |
Conversion of debt to equity
|
| | | | — | | | | | | — | | | | | | | 230,992 | | | | | | — | | | | | | 2,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,000 | | |
Redeemable convertible preferred
stock issuance |
| | | | 1,220,851 | | | | | | 8,670 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accrued dividends on redeemable
convertible preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (274) | | | | | | — | | | | | | — | | | | | | — | | | | | | (274) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 170 | | | | | | — | | | | | | — | | | | | | — | | | | | | 170 | | |
Balance December 31, 2017
|
| | | | 1,220,851 | | | | | $ | 8,670 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 8,889 | | | | | $ | (8,247) | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (854) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,560) | | | | | | — | | | | | | — | | | | | | (6,560) | | |
Accrued dividends on redeemable
convertible preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (1,014) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,014) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 151 | | | | | | — | | | | | | — | | | | | | — | | | | | | 151 | | |
Balance December 31, 2018
|
| | | | 1,220,851 | | | | | $ | 8,670 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 8,026 | | | | | $ | (14,807) | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (8,277) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (12,678) | | | | | | — | | | | | | — | | | | | | (12,678) | | |
Redeemable convertible preferred
stock issuance |
| | | | 813,900 | | | | | | 8,890 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accrued dividends on redeemable
convertible preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (1,579) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,579) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 113 | | | | | | — | | | | | | — | | | | | | — | | | | | | 113 | | |
Balance December 31, 2019
|
| | | | 2,034,751 | | | | | $ | 17,560 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 6,560 | | | | | $ | (27,485) | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (22,421) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Cash Flow from Operating Activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (12,678) | | | | | $ | (6,560) | | | | | $ | (2,469) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | | | | | | | | | | | | | | | |
Depreciation – property and equipment
|
| | | | 260 | | | | | | 253 | | | | | | 218 | | |
Depreciation – lease vehicles
|
| | | | 244 | | | | | | 85 | | | | | | — | | |
Loss on disposition of property and equipment
|
| | | | 321 | | | | | | — | | | | | | 44 | | |
Gain on sale of lease vehicles
|
| | | | — | | | | | | (16) | | | | | | — | | |
Provision for doubtful accounts
|
| | | | (14) | | | | | | (30) | | | | | | 51 | | |
Share-based compensation expense
|
| | | | 113 | | | | | | 151 | | | | | | 170 | | |
Change in fair value of warrants liability
|
| | | | (24) | | | | | | 2 | | | | | | (50) | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 1,396 | | | | | | 272 | | | | | | 79 | | |
Other
|
| | | | — | | | | | | (599) | | | | | | 177 | | |
Change in Operating Assets and Liabilities:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (830) | | | | | | (706) | | | | | | (636) | | |
Inventories
|
| | | | 2,883 | | | | | | (4,810) | | | | | | (2,855) | | |
Other current assets
|
| | | | (6) | | | | | | 48 | | | | | | (63) | | |
Other assets
|
| | | | (38) | | | | | | (164) | | | | | | (60) | | |
Accounts payable
|
| | | | 1,392 | | | | | | 223 | | | | | | (79) | | |
Accrued expenses
|
| | | | 525 | | | | | | 133 | | | | | | 3 | | |
Accrued expenses – related party
|
| | | | 172 | | | | | | (9) | | | | | | 72 | | |
Other current liabilities
|
| | | | 229 | | | | | | 20 | | | | | | (108) | | |
Other liabilities
|
| | | | 582 | | | | | | (54) | | | | | | 183 | | |
Net Cash Used in Operating Activities
|
| | | | (5,473) | | | | | | (11,761) | | | | | | (5,323) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | | | | | | | |
Cash related to consolidation of Orange Grove
|
| | | | — | | | | | | 5 | | | | | | — | | |
Purchase of property and equipment
|
| | | | (235) | | | | | | (474) | | | | | | (204) | | |
Proceeds from sale of lease vehicles
|
| | | | — | | | | | | 119 | | | | | | — | | |
Purchase of lease vehicles
|
| | | | (252) | | | | | | (12) | | | | | | — | | |
Net Cash Used in Investing Activities
|
| | | | (487) | | | | | | (362) | | | | | | (204) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | | | | | | | |
Issuance of redeemable convertible preferred stock, net
|
| | | | 7,988 | | | | | | — | | | | | | 11,580 | | |
Purchase of treasury stock
|
| | | | — | | | | | | — | | | | | | (1,500) | | |
Payments made on long-term debt
|
| | | | (8) | | | | | | (4) | | | | | | — | | |
Borrowings on long-term debt
|
| | | | 3,000 | | | | | | — | | | | | | — | | |
Payments of debt issuance costs
|
| | | | (112) | | | | | | — | | | | | | — | | |
Payments on floor plan notes payable
|
| | | | (41,711) | | | | | | (24,567) | | | | | | (11,531) | | |
Borrowings on floor plan notes payable
|
| | | | 39,753 | | | | | | 29,171 | | | | | | 14,160 | | |
Payments made on promissory note
|
| | | | (418) | | | | | | (97) | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | | 8,492 | | | | | | 4,503 | | | | | | 12,709 | | |
Net Change in Cash and Cash Equivalents and Restricted Cash
|
| | | | 2,532 | | | | | | (7,620) | | | | | | 7,182 | | |
Cash and cash equivalents and restricted cash, beginning
|
| | | | 1,570 | | | | | | 9,190 | | | | | | 2,008 | | |
Cash and cash equivalents and restricted cash, ending
|
| | | $ | 4,102 | | | | | $ | 1,570 | | | | | $ | 9,190 | | |
Supplemental Disclosure of Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 684 | | | | | $ | 436 | | | | | $ | 441 | | |
Supplementary Schedule of Non-cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | |
Transfer from property and equipment to inventory
|
| | | $ | 53 | | | | | $ | 26 | | | | | $ | — | | |
Transfer from lease vehicles to inventory
|
| | | $ | 295 | | | | | $ | — | | | | | $ | — | | |
Redeemable convertible preferred stock distributions accrued
|
| | | $ | 1,579 | | | | | $ | 1,014 | | | | | $ | 274 | | |
Purchase of property and equipment with long-term debt
|
| | | $ | — | | | | | $ | 21 | | | | | $ | — | | |
Conversion from debt to equity
|
| | | $ | — | | | | | $ | — | | | | | $ | 2,000 | | |
Promissory note based on consolidation of Orange Grove
|
| | | $ | — | | | | | $ | 515 | | | | | $ | — | | |
Issuance of common stock warrants
|
| | | $ | 72 | | | | | $ | — | | | | | $ | — | | |
Settlement of redeemable convertible preferred stock tranche obligation
|
| | | $ | (902) | | | | | $ | — | | | | | $ | — | | |
Issuance date fair value of redeemable convertible preferred stock tranche obligation
|
| | | $ | — | | | | | $ | — | | | | | $ | 2,910 | | |
| Leasehold Improvements | | | Lesser of 15 years or underlying lease terms | |
| Equipment, Furniture, and Fixtures | | | 1 – 5 years | |
| Corporate Vehicles | | | 5 years | |
| | |
2019
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 90,382 | | | | | $ | — | | | | | $ | 90,382 | | |
Wholesale vehicle sales
|
| | | | 8,454 | | | | | | — | | | | | | 8,454 | | |
Finance and insurance, net
|
| | | | 3,117 | | | | | | — | | | | | | 3,117 | | |
Lease income, net
|
| | | | — | | | | | | 533 | | | | | | 533 | | |
Total Revenues
|
| | | $ | 101,953 | | | | | $ | 533 | | | | | $ | 102,486 | | |
| | |
2018
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 53,448 | | | | | $ | — | | | | | $ | 53,448 | | |
Wholesale vehicle sales
|
| | | | 3,153 | | | | | | — | | | | | | 3,153 | | |
Finance and insurance, net
|
| | | | 1,608 | | | | | | — | | | | | | 1,608 | | |
Lease income, net
|
| | | | — | | | | | | 142 | | | | | | 142 | | |
Total Revenues
|
| | | $ | 58,209 | | | | | $ | 142 | | | | | $ | 58,351 | | |
| | |
2017
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 41,758 | | | | | $ | — | | | | | $ | 41,758 | | |
Wholesale vehicle sales
|
| | | | 1,340 | | | | | | — | | | | | | 1,340 | | |
Finance and insurance, net
|
| | | | 974 | | | | | | — | | | | | | 974 | | |
Lease income, net
|
| | | | — | | | | | | — | | | | | | — | | |
Total Revenues
|
| | | $ | 44,072 | | | | | $ | — | | | | | $ | 44,072 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Retail vehicles: | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 90,382 | | | | | $ | 53,448 | | | | | $ | 41,758 | | |
Retail vehicle cost of sales
|
| | | | 84,534 | | | | | | 48,523 | | | | | | 36,679 | | |
Gross Profit – Retail Vehicles
|
| | | $ | 5,848 | | | | | $ | 4,925 | | | | | $ | 5,079 | | |
Wholesale vehicles: | | | | | | | | | | | | | | | | | | | |
Wholesale vehicle sales
|
| | | $ | 8,454 | | | | | $ | 3,153 | | | | | $ | 1,340 | | |
Wholesale vehicle cost of sales
|
| | | | 9,246 | | | | | | 4,185 | | | | | | 1,840 | | |
Gross Profit – Wholesale Vehicles
|
| | | $ | (792) | | | | | $ | (1,032) | | | | | $ | (500) | | |
| | |
2019
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 688 | | | | | $ | — | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | — | | | | | | — | | | | | | 3,755 | | |
Stock warrants liability
|
| | | | — | | | | | | — | | | | | | 115 | | |
Total Liabilities:
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,870 | | |
| | |
2018
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 351 | | | | | $ | — | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | — | | | | | | — | | | | | | 3,261 | | |
Stock warrants liability
|
| | | | — | | | | | | — | | | | | | 67 | | |
Total Liabilities:
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,328 | | |
Year-ended December 31, 2019
|
| |
January 1,
|
| |
Issuances
|
| |
Settlements
|
| |
Change in
Fair Value |
| |
December 31,
|
| |||||||||||||||
Redeemable convertible preferred stock tranche obligation
|
| | | $ | 3,261 | | | | | $ | — | | | | | $ | (902) | | | | | $ | 1,396 | | | | | $ | 3,755 | | |
Stock warrants liability
|
| | | | 67 | | | | | | 72 | | | | | | — | | | | | | (24) | | | | | | 115 | | |
Total
|
| | | $ | 3,328 | | | | | $ | 72 | | | | | $ | (902) | | | | | $ | 1,372 | | | | | $ | 3,870 | | |
Year-ended December 31, 2018
|
| |
January 1,
|
| |
Issuances
|
| |
Settlements
|
| |
Change in
Fair Value |
| |
December 31,
|
| |||||||||||||||
Redeemable convertible preferred stock tranche obligation
|
| | | $ | 2,989 | | | | | $ | — | | | | | $ | — | | | | | $ | 272 | | | | | $ | 3,261 | | |
Stock warrants liability
|
| | | | 65 | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 67 | | |
Total
|
| | | $ | 3,054 | | | | | $ | — | | | | | $ | — | | | | | $ | 274 | | | | | $ | 3,328 | | |
| | |
2019
|
| |
2018
|
|
Expected volatility
|
| |
45.00%
|
| |
60.00%
|
|
Expected dividend yield
|
| |
0.00%
|
| |
0.00%
|
|
Expected term (in years)
|
| |
5 years
|
| |
6 years
|
|
Risk-free interest rate
|
| |
1.69%
|
| |
2.55%
|
|
Marketability discount
|
| |
50.00%
|
| |
60.00%
|
|
| | |
2019
|
| |
2018
|
| ||||||
Contracts in transit
|
| | | $ | 2,645 | | | | | $ | 2,098 | | |
Trade
|
| | | | 202 | | | | | | 261 | | |
Finance commission
|
| | | | 87 | | | | | | 69 | | |
Other
|
| | | | 349 | | | | | | 25 | | |
Total
|
| | | | 3,283 | | | | | | 2,453 | | |
Allowance for doubtful accounts
|
| | | | (27) | | | | | | (41) | | |
Total Accounts Receivable, net
|
| | | $ | 3,256 | | | | | $ | 2,412 | | |
| | |
2019
|
| |
2018
|
| ||||||
Used vehicles
|
| | | $ | 7,592 | | | | | $ | 10,069 | | |
Parts
|
| | | | 33 | | | | | | 91 | | |
Total | | | | $ | 7,625 | | | | | $ | 10,160 | | |
| | |
2019
|
| |
2018
|
| ||||||
Leasehold improvements
|
| | | $ | 688 | | | | | $ | 1,096 | | |
Furniture, fixtures, and equipment
|
| | | | 715 | | | | | | 723 | | |
Corporate vehicles
|
| | | | 104 | | | | | | 201 | | |
Total property and equipment
|
| | | | 1,507 | | | | | | 2,020 | | |
Less: accumulated depreciation
|
| | | | (876) | | | | | | (990) | | |
Property and Equipment, net
|
| | | $ | 631 | | | | | $ | 1,030 | | |
| | |
2019
|
| |
2018
|
| ||||||
Vehicles
|
| | | $ | 1,083 | | | | | $ | 1,333 | | |
Less: accumulated depreciation
|
| | | | (639) | | | | | | (602) | | |
Total Lease Vehicles, net
|
| | | $ | 444 | | | | | $ | 731 | | |
Year
|
| |
Minimum Rental Receipts
Under Operating Leases |
| |||
2020
|
| | | $ | 149 | | |
2021
|
| | | | 25 | | |
2022
|
| | | | 8 | | |
2023
|
| | | | 2 | | |
Total | | | | $ | 184 | | |
| | |
2019
|
| |
2018
|
| ||||||
Other Current Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 13 | | | | | $ | 41 | | |
Deferred acquisition costs
|
| | | | 32 | | | | | | 12 | | |
Prepaid expenses
|
| | | | 189 | | | | | | 175 | | |
Total Other Current Assets
|
| | | $ | 234 | | | | | $ | 228 | | |
Other Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 38 | | | | | $ | 39 | | |
Deferred acquisition costs
|
| | | | 50 | | | | | | 10 | | |
Security deposits
|
| | | | 255 | | | | | | 256 | | |
Total Other Assets
|
| | | $ | 343 | | | | | $ | 305 | | |
| | |
2019
|
| |
2018
|
| ||||||
Beginning
|
| | | $ | 22 | | | | | $ | 22 | | |
Written
|
| | | | 93 | | | | | | 16 | | |
Amortized
|
| | | | (33) | | | | | | (16) | | |
Ending
|
| | | | 82 | | | | | | 22 | | |
Less: current portion
|
| | | | 32 | | | | | | 12 | | |
Non-current
|
| | | | 50 | | | | | | 10 | | |
Total Deferred Acquisition Costs
|
| | | $ | 82 | | | | | $ | 22 | | |
| | |
2019
|
| |
2018
|
| ||||||
Term note payable
|
| | | $ | 9 | | | | | $ | 17 | | |
Convertible notes payable, net
|
| | | | 2,816 | | | | | | — | | |
| | | | | 2,825 | | | | | | 17 | | |
Current portion of long-term debt
|
| | | | (2,825) | | | | | | (6) | | |
Long-term Debt
|
| | | $ | — | | | | | $ | 11 | | |
|
Maturity
|
| |
5 years
|
|
|
Risk-free interest rate
|
| |
1.69%
|
|
|
Volatility
|
| |
60.00%
|
|
|
Dividend yield
|
| |
0.00%
|
|
|
Weighted average fair value per share
|
| |
1.81
|
|
| | |
2019
|
| |
2018
|
| ||||||
Stock warrants outstanding
|
| | | | 23,460 | | | | | | 23,460 | | |
Stock warrants issued with convertible notes payable
|
| | | | 45,121 | | | | | | — | | |
Stock warrants cancelled
|
| | | | — | | | | | | — | | |
Stock warrants exercised
|
| | | | — | | | | | | — | | |
Stock warrants vested
|
| | | | 68,581 | | | | | | 23,460 | | |
| | |
2019
|
| |
2018
|
| ||||||
License and title fees
|
| | | $ | 399 | | | | | $ | 203 | | |
Payroll and bonuses
|
| | | | 388 | | | | | | 308 | | |
Deferred rent
|
| | | | 300 | | | | | | 255 | | |
Other accrued expenses
|
| | | | 489 | | | | | | 285 | | |
Total Accrued Expenses
|
| | | $ | 1,576 | | | | | $ | 1,051 | | |
| | |
2019
|
| |
2018
|
| ||||||
Other Liabilities, Current | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | $ | 434 | | | | | $ | 205 | | |
Other Liabilities | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | | 719 | | | | | | 172 | | |
Other long-term liabilities
|
| | | | 97 | | | | | | 62 | | |
Stock warrants liability
|
| | | | 115 | | | | | | 67 | | |
Other Liabilities, Long-term
|
| | | $ | 931 | | | | | $ | 301 | | |
| | |
Total Per Year
|
| |||
2020
|
| | | $ | 1,976 | | |
2021
|
| | | | 1,963 | | |
2022
|
| | | | 1,995 | | |
2023
|
| | | | 1,830 | | |
2024
|
| | | | 878 | | |
Thereafter
|
| | | | 1,409 | | |
Total
|
| | | $ | 10,051 | | |
| | |
Payments Due
to Third Parties |
| |
Future Receipts
|
| ||||||
2020
|
| | | $ | 979 | | | | | $ | 1,609 | | |
2021
|
| | | | 819 | | | | | | 1,315 | | |
2022
|
| | | | 398 | | | | | | 634 | | |
2023
|
| | | | 129 | | | | | | 192 | | |
2024
|
| | | | 12 | | | | | | 18 | | |
Total
|
| | | $ | 2,337 | | | | | $ | 3,768 | | |
| | |
2017
|
|
Expected volatility
|
| |
80.00%
|
|
Expected dividend yield
|
| |
0.00%
|
|
Expected term (in years)
|
| |
5 years
|
|
Risk-free interest rate
|
| |
1.94%
|
|
| | |
Number of
Options |
| |
Weighted
Averaged Exercise Price |
| ||||||
Balance (January 1, 2017)
|
| | | | 145,000 | | | | | $ | 5.86 | | |
Granted
|
| | | | 30,150 | | | | | | 6.82 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Balance (December 31, 2017)
|
| | | | 175,150 | | | | | | 5.99 | | |
Granted
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | (13,500) | | | | | | 5.56 | | |
Balance (December 31, 2018)
|
| | | | 161,650 | | | | | | 6.07 | | |
Granted
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | (7,500) | | | | | | 6.82 | | |
Balance (December 31, 2019)
|
| | | | 154,150 | | | | | | 6.03 | | |
Vested (as of December 31, 2019)
|
| | | | 136,450 | | | | | $ | 5.93 | | |
| | |
Number of
Options |
| |
Weighted
Average Remaining Contractual Life |
| |
Weighted
Average Exercise Price |
| ||||||
Outstanding
|
| | | | 154,150 | | | |
2.67 years
|
| | | $ | 6.03 | | |
Exercisable
|
| | | | 136,450 | | | |
2.67 years
|
| | | $ | 5.93 | | |
| | |
Number of
Units |
| |
Weighted
Averaged Exercise Price |
| ||||||
Balance (January 1, 2018)
|
| | | | — | | | | | | — | | |
Granted
|
| | | | 261,552 | | | | | $ | 9.82 | | |
Forfeited
|
| | | | (6,500) | | | | | | 9.82 | | |
Balance (December 31, 2018)
|
| | | | 255,052 | | | | | | 9.82 | | |
Granted
|
| | | | 154,000 | | | | | | 9.82 | | |
Forfeited
|
| | | | (129,876) | | | | | | 9.82 | | |
Balance (December 31, 2019)
|
| | | | 279,176 | | | | | $ | 9.82 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Current Income Tax Expense: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
State and local
|
| | | | 11 | | | | | | 3 | | | | | | 4 | | |
Total Current Income Tax Expense
|
| | | | 11 | | | | | | 3 | | | | | | 4 | | |
Deferred Income Tax Expense: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | | | | | — | | |
State and local
|
| | | | — | | | | | | — | | | | | | — | | |
Total Income Tax Expense
|
| | | $ | 11 | | | | | $ | 3 | | | | | $ | 4 | | |
| | |
2019
|
| |
2018
|
| ||||||
Deferred Tax Assets: | | | | | | | | | | | | | |
Net operating losses
|
| | | $ | 5,881 | | | | | $ | 3,259 | | |
Contract expense
|
| | | | 262 | | | | | | 307 | | |
Other
|
| | | | 809 | | | | | | 569 | | |
Total deferred tax assets
|
| | | | 6,952 | | | | | | 4,135 | | |
Less: valuation allowance
|
| | | | (6,910) | | | | | | (3,986) | | |
Net Deferred Tax Assets
|
| | | | 42 | | | | | | 149 | | |
Deferred Tax Liabilities | | | | | | | | | | | | | |
Fixed assets
|
| | | | (42) | | | | | | (149) | | |
Total deferred tax liabilities
|
| | | | (42) | | | | | | (149) | | |
Net Deferred Tax Liabilities
|
| | | | (42) | | | | | | (149) | | |
Net Deferred Tax Assets/Liabilities
|
| | | $ | — | | | | | $ | — | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
January 1, | | | | $ | 3,986 | | | | | $ | 2,008 | | | | | $ | 2,116 | | |
Additions – Charged
|
| | | | 2,924 | | | | | | 1,731 | | | | | | — | | |
Deductions – Charged
|
| | | | — | | | | | | — | | | | | | (108) | | |
Other
|
| | | | | | | | | | 247 | | | | | | | | |
December 31, | | | | $ | 6,910 | | | | | $ | 3,986 | | | | | $ | 2,008 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Loss Before Income Tax Expense
|
| | | $ | (12,667) | | | | | $ | (6,557) | | | | | $ | (2,465) | | |
Income tax benefit at federal statutory rates
|
| | | | (2,660) | | | | | | (1,377) | | | | | | (838) | | |
State and local income taxes
|
| | | | (471) | | | | | | (238) | | | | | | (81) | | |
Investment remeasurement
|
| | | | — | | | | | | (126) | | | | | | — | | |
Valuation allowances
|
| | | | 2,924 | | | | | | 1,731 | | | | | | (108) | | |
Impact of federal rate change
|
| | | | — | | | | | | — | | | | | | 991 | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 293 | | | | | | 57 | | | | | | 27 | | |
Other
|
| | | | (75) | | | | | | (44) | | | | | | 13 | | |
Total Income Tax Expense
|
| | | $ | 11 | | | | | $ | 3 | | | | | $ | 4 | | |
Effective Tax Rate
|
| | | | (.09)% | | | | | | (.05)% | | | | | | (.16)% | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (12,678) | | | | | $ | (6,560) | | | | | $ | (2,469) | | |
Redeemable Convertible Preferred Stock dividends (undeclared and cumulative)
|
| | | | (1,579) | | | | | | (1,014) | | | | | | (274) | | |
Net loss attributable to common stockholders
|
| | | | (14,257) | | | | | | (7,574) | | | | | | (2,743) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,660,679 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (3.84) | | | | | $ | (2.04) | | | | | $ | (0.75) | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Redeemable Convertible Preferred Stock outstanding
|
| | | | 2,034,751 | | | | | | 1,220,851 | | | | | | 1,220,851 | | |
Convertible notes payable
|
| | | | 282,211 | | | | | | — | | | | | | — | | |
Stock warrants
|
| | | | 68,581 | | | | | | 23,460 | | | | | | 22,985 | | |
Stock options outstanding to purchase shares of common stock
|
| | | | 433,326 | | | | | | 416,702 | | | | | | 175,150 | | |
Total | | | | | 2,818,869 | | | | | | 1,661,013 | | | | | | 1,418,986 | | |
| | |
Total purchases from vendor to total purchases
for the year ended December 31, |
| |||||||||||||||
Vendor
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Vendor A
|
| | | | —% | | | | | | —% | | | | | | 12% | | |
Vendor B
|
| | | | 12% | | | | | | —% | | | | | | —% | | |
| | |
Accounts payable to the
vendor as of December 31, |
| |||||||||
Vendor
|
| |
2019
|
| |
2018
|
| ||||||
Vendor A
|
| | | $ | — | | | | | $ | — | | |
Vendor B
|
| | | $ | 257 | | | | | $ | — | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 4,775 | | | | | $ | 3,214 | | |
Restricted cash
|
| | | | 686 | | | | | | 888 | | |
Marketable securities – at fair value
|
| | | | 704 | | | | | | — | | |
Accounts receivable, net
|
| | | | 3,586 | | | | | | 3,256 | | |
Inventories
|
| | | | 2,760 | | | | | | 7,625 | | |
Other current assets
|
| | | | 273 | | | | | | 234 | | |
Total Current Assets
|
| | | | 12,784 | | | | | | 15,217 | | |
Property and equipment, net
|
| | | | 544 | | | | | | 631 | | |
Lease vehicles, net
|
| | | | 242 | | | | | | 444 | | |
Other assets
|
| | | | 338 | | | | | | 343 | | |
Total Assets
|
| | | $ | 13,908 | | | | | $ | 16,635 | | |
Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit)
|
| | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Long-term debt, current
|
| | | $ | 3,316 | | | | | $ | 2,825 | | |
Floor plan notes payable
|
| | | | 1,943 | | | | | | 6,739 | | |
Accounts payable
|
| | | | 2,853 | | | | | | 2,134 | | |
Accrued expenses
|
| | | | 2,624 | | | | | | 1,576 | | |
Accrued expenses – related party
|
| | | | 4,038 | | | | | | 3,102 | | |
Other current liabilities
|
| | | | 551 | | | | | | 434 | | |
Total Current Liabilities
|
| | | | 15,325 | | | | | | 16,810 | | |
Long-term debt, less current portion
|
| | | | 1,749 | | | | | | — | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | 3,126 | | | | | | 3,755 | | |
Other liabilities
|
| | | | 1,164 | | | | | | 931 | | |
Total Liabilities
|
| | | | 21,364 | | | | | | 21,496 | | |
Commitments and Contingencies (Note 16)
|
| | | | — | | | | | | — | | |
Redeemable Convertible Preferred Stock: | | | | | | | | | | | | | |
Series A Preferred Stock $0.001 stated value; authorized 3,052,127 shares; issued
and outstanding 2,034,751, as of June 30, 2020 and December 31, 2019; aggregate liquidation preference of $35,675 and $34,300 as of June 30, 2020 and December 31, 2019, respectively |
| | | | 17,560 | | | | | | 17,560 | | |
Stockholders’ Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $0.001 par value; authorized 7,600,000 shares, issued 3,869,118 shares, and outstanding 3,716,526 shares
|
| | | | 4 | | | | | | 4 | | |
Additional paid-in capital
|
| | | | 5,674 | | | | | | 6,560 | | |
Accumulated deficit
|
| | | | (29,205) | | | | | | (27,485) | | |
Accumulated other comprehensive income
|
| | | | 11 | | | | | | — | | |
Treasury stock, $0.001 par value; 152,592 shares
|
| | | | (1,500) | | | | | | (1,500) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | (25,016) | | | | | | (22,421) | | |
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
(Deficit) |
| | | $ | 13,908 | | | | | $ | 16,635 | | |
| | |
Six Months
Ended June 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenues: | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | 43,368 | | |
Wholesale vehicle sales
|
| | | | 5,036 | | | | | | 4,372 | | |
Finance and insurance, net
|
| | | | 1,787 | | | | | | 1,559 | | |
Lease income, net
|
| | | | 272 | | | | | | 265 | | |
Total Revenues
|
| | | | 51,789 | | | | | | 49,564 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 46,588 | | | | | | 45,126 | | |
Gross Profit
|
| | | | 5,201 | | | | | | 4,438 | | |
Operating Expenses: | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 7,026 | | | | | | 8,909 | | |
Depreciation expense
|
| | | | 191 | | | | | | 287 | | |
Management fee expense – related party
|
| | | | 132 | | | | | | 124 | | |
Total Operating Expenses
|
| | | | 7,349 | | | | | | 9,320 | | |
Loss from Operations
|
| | | | (2,148) | | | | | | (4,882) | | |
Interest Expense
|
| | | | 256 | | | | | | 339 | | |
Other Income (Expense), net | | | | | | | | | | | | | |
Change in fair value of warrants liability
|
| | | | 31 | | | | | | 12 | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 629 | | | | | | (50) | | |
Other income (expense)
|
| | | | 33 | | | | | | (256) | | |
Total Other Income (Expense), net
|
| | | | 693 | | | | | | (294) | | |
Loss Before Income Tax Expense
|
| | | | (1,711) | | | | | | (5,515) | | |
Income Tax Expense
|
| | | | 9 | | | | | | 5 | | |
Net Loss
|
| | | $ | (1,720) | | | | | $ | (5,520) | | |
Redeemable convertible preferred stock dividends (undeclared and cumulative)
|
| | | | (924) | | | | | | (657) | | |
Net loss attributable to common stockholders
|
| | | $ | (2,644) | | | | | $ | (6,177) | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (0.71) | | | | | $ | (1.66) | | |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
|
| | | | 3,716,526 | | | | | | 3,716,526 | | |
| | |
Six Months
Ended June 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net loss
|
| | | $ | (1,720) | | | | | $ | (5,520) | | |
Other comprehensive income, net of tax: | | | | | | | | | | | | | |
Unrealized gains on marketable securities arising during the period
|
| | | | 17 | | | | | | — | | |
Tax effect
|
| | | | (4) | | | | | | — | | |
Unrealized gains on marketable securities arising during the period, net of tax
|
| | | | 13 | | | | | | — | | |
Reclassification adjustment for realized gains
|
| | | | (3) | | | | | | — | | |
Tax effect
|
| | | | 1 | | | | | | — | | |
Reclassification adjustment for realized gains, net of tax
|
| | | | (2) | | | | | | — | | |
Other Comprehensive Income, net of tax
|
| | | | 11 | | | | | | — | | |
Total Comprehensive Income
|
| | | $ | (1,709) | | | | | $ | (5,520) | | |
| | |
Redeemable
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Treasury Stock
|
| |
Stockholders’
Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019
|
| | | | 2,034,751 | | | | | $ | 17,560 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 6,560 | | | | | $ | (27,485) | | | | | $ | — | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (22,421) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,720) | | | | | | | | | | | | — | | | | | | — | | | | | | (1,720) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | | | | | — | | | | | | 11 | | |
Accrued dividends on
redeemable convertible preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (923) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (923) | | |
Stock-based compensation
|
| | | | — | | | | | | | | | | | | | — | | | | | | — | | | | | | 37 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 37 | | |
Balance June 30, 2020
|
| | | | 2,034,751 | | | | | $ | 17,560 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 5,674 | | | | | $ | (29,205) | | | | | $ | 11 | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (25,016) | | |
| | |
Redeemable
Convertible Preferred Stock |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Income |
| |
Treasury Stock
|
| |
Stockholders’
Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018
|
| | | | 1,220,851 | | | | | $ | 8,670 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 8,026 | | | | | $ | (14,807) | | | | | $ | — | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (8,277) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,520) | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,520) | | |
Redeemable convertible preferred stock issuance
|
| | | | 813,900 | | | | | | 8,890 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accrued dividends on
redeemable convertible preferred stock |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (657) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (657) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 45 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45 | | |
Balance June 30, 2019
|
| | | | 2,034,751 | | | | | $ | 17,560 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 7,414 | | | | | $ | (20,327) | | | | | $ | — | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (14,409) | | |
| | |
Six Months
Ended June 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flow from Operating Activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,720) | | | | | $ | (5,520) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | | | | | | | | | |
Depreciation – property and equipment
|
| | | | 101 | | | | | | 147 | | |
Depreciation – lease vehicles
|
| | | | 90 | | | | | | 140 | | |
Loss on disposition of property and equipment
|
| | | | — | | | | | | 276 | | |
Gain on marketable securities
|
| | | | (3) | | | | | | — | | |
Provision for doubtful accounts
|
| | | | 6 | | | | | | 11 | | |
Share-based compensation expense
|
| | | | 37 | | | | | | 45 | | |
Change in fair value of warrants liability
|
| | | | (31) | | | | | | (12) | | |
Amortization of debt issuance costs and stock warrant
|
| | | | 12 | | | | | | — | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | (629) | | | | | | 50 | | |
Change in Operating Assets and Liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (336) | | | | | | (861) | | |
Inventories
|
| | | | 5,064 | | | | | | (157) | | |
Other current assets
|
| | | | (39) | | | | | | (134) | | |
Other assets
|
| | | | 5 | | | | | | (80) | | |
Accounts payable
|
| | | | 719 | | | | | | 416 | | |
Accrued expenses
|
| | | | 1,048 | | | | | | 372 | | |
Accrued expenses – related party
|
| | | | 13 | | | | | | — | | |
Other current liabilities
|
| | | | 117 | | | | | | 141 | | |
Other liabilities
|
| | | | 248 | | | | | | 349 | | |
Net Cash Provided (Used) by Operating Activities
|
| | | | 4,702 | | | | | | (4,817) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchase of property and equipment
|
| | | | (14) | | | | | | (137) | | |
Purchase of marketable securities
|
| | | | (711) | | | | | | — | | |
Proceeds from sales of marketable securities
|
| | | | 21 | | | | | | — | | |
Purchase of lease vehicles
|
| | | | (87) | | | | | | (175) | | |
Net Cash Used in Investing Activities
|
| | | | (791) | | | | | | (312) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | |
Issuance of redeemable convertible preferred stock
|
| | | | — | | | | | | 7,988 | | |
Payments made on long-term debt
|
| | | | (5) | | | | | | (184) | | |
Borrowings on long-term debt
|
| | | | 2,249 | | | | | | — | | |
Payments on floor plan notes payable
|
| | | | (13,394) | | | | | | (22,667) | | |
Borrowings on floor plan notes payable
|
| | | | 8,598 | | | | | | 23,264 | | |
Net Cash Provided (Used) by Financing Activities
|
| | | | (2,552) | | | | | | 8,401 | | |
Net Change in Cash and Cash Equivalents Including Restricted Cash
|
| | | | 1,359 | | | | | | 3,272 | | |
Cash and cash equivalents and restricted cash, beginning
|
| | | | 4,102 | | | | | | 1,570 | | |
Cash and cash equivalents and restricted cash, ending
|
| | | $ | 5,461 | | | | | $ | 4,842 | | |
|
| | |
2020
|
| |
2019
|
| ||||||
Supplemental disclosure of Cash Flow Information | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 307 | | | | | $ | 374 | | |
Supplementary Schedule of Non-cash Investing and Financing Activities: | | | | | | | | | | | | | |
Transfer from property and equipment to inventory
|
| | | | — | | | | | $ | 14 | | |
Transfer from lease vehicles to inventory
|
| | | $ | 199 | | | | | $ | 164 | | |
Redeemable convertible preferred stock distributions accrued
|
| | | $ | 923 | | | | | $ | 657 | | |
Issuance of common stock warrants
|
| | | $ | 15 | | | | | | — | | |
Settlement of redeemable convertible preferred stock tranche obligation
|
| | | | — | | | | | $ | (902) | | |
| | |
Six Months Ended June 30, 2020
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | — | | | | | $ | 44,694 | | |
Wholesale vehicle sales
|
| | | | 5,036 | | | | | | — | | | | | | 5,036 | | |
Finance and insurance, net
|
| | | | 1,787 | | | | | | — | | | | | | 1,787 | | |
Lease income, net
|
| | | | — | | | | | | 272 | | | | | | 272 | | |
Total Revenues
|
| | | $ | 51,517 | | | | | $ | 272 | | | | | $ | 51,789 | | |
| | |
Six Months Ended June 30, 2019
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 43,368 | | | | | $ | — | | | | | $ | 43,368 | | |
Wholesale vehicle sales
|
| | | | 4,372 | | | | | | — | | | | | | 4,372 | | |
Finance and insurance, net
|
| | | | 1,559 | | | | | | — | | | | | | 1,559 | | |
Lease income, net
|
| | | | — | | | | | | 265 | | | | | | 265 | | |
Total Revenues
|
| | | $ | 49,299 | | | | | $ | 265 | | | | | $ | 49,564 | | |
| | |
2020
|
| |
2019
|
| ||||||
Retail vehicles: | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 44,694 | | | | | $ | 43,368 | | |
Retail vehicle cost of sales
|
| | | | 41,546 | | | | | | 40,115 | | |
Gross Profit – Retail Vehicles
|
| | | $ | 3,148 | | | | | $ | 3,253 | | |
Wholesale vehicles: | | | | | | | | | | | | | |
Wholesale vehicle sales
|
| | | $ | 5,036 | | | | | $ | 4,372 | | |
Wholesale vehicle cost of sales
|
| | | | 5,042 | | | | | | 5,011 | | |
Gross Profit – Wholesale Vehicles
|
| | | $ | (6) | | | | | $ | (639) | | |
| | |
Amortized
Cost/ Cost Basis |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Estimated
Fair Value |
| ||||||||||||
U.S. Treasuries
|
| | | $ | 181 | | | | | $ | 7 | | | | | $ | — | | | | | $ | 188 | | |
Corporate bonds
|
| | | | 142 | | | | | | 3 | | | | | | — | | | | | | 145 | | |
U.S. states, territories, and political subdivisions
|
| | | | 262 | | | | | | 5 | | | | | | (1) | | | | | | 266 | | |
Total Fixed Maturity Debt Securities
|
| | | $ | 585 | | | | | $ | 15 | | | | | $ | (1) | | | | | $ | 599 | | |
| | |
Amortized Cost
|
| |
Fair Value
|
| ||||||
Due in one year or less
|
| | | $ | — | | | | | $ | — | | |
Due after one year through five years
|
| | | | 304 | | | | | | 311 | | |
Due after five years through ten years
|
| | | | 281 | | | | | | 288 | | |
Due after ten years
|
| | | | — | | | | | | — | | |
Total | | | | $ | 585 | | | | | $ | 599 | | |
| | |
Less Than 12 Months
|
| |
12 Months or More
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Estimated
Fair Value |
| |
Unrealized
Losses |
| |
Estimated
Fair Value |
| |
Unrealized
Losses |
| |
Estimated
Fair Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
Corporate bonds
|
| | | $ | 20 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 20 | | | | | $ | (1) | | |
Total Fixed Maturity Debt Securities
|
| | | $ | 20 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 20 | | | | | $ | (1) | | |
| | |
Cost
|
| |
Estimated
Fair Value |
| ||||||
Equity securities
|
| | | $ | 105 | | | | | $ | 105 | | |
| | |
Proceeds
|
| |
Gross
Realized Gains |
| |
Gross
Realized Losses |
| |
Net
Realized Gains |
| ||||||||||||
Fixed maturity debt securities
|
| | | $ | 15 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Equity securities
|
| | | | 6 | | | | | | 3 | | | | | | — | | | | | | 3 | | |
Total Marketable Securities
|
| | | $ | 21 | | | | | $ | 3 | | | | | $ | — | | | | | $ | 3 | | |
| | |
June 30, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 486 | | | | | $ | — | | | | | $ | — | | | | | $ | 486 | | |
Equity securities
|
| | | | 105 | | | | | | — | | | | | | — | | | | | | 105 | | |
Fixed maturity debt securities
|
| | | | 187 | | | | | | 412 | | | | | | | | | | | | 599 | | |
Total Assets:
|
| | | $ | 778 | | | | | $ | 412 | | | | | $ | — | | | | | $ | 1,190 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock tranche obligation
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,126 | | | | | $ | 3,126 | | |
Stock warrants liability
|
| | | | — | | | | | | — | | | | | | 99 | | | | | | 99 | | |
Total Liabilities:
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,225 | | | | | $ | 3,225 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 688 | | | | | $ | — | | | | | $ | — | | | | | $ | 688 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | — | | | | | | — | | | | | | 3,755 | | | | | | 3,755 | | |
Stock warrants liability
|
| | | | — | | | | | | — | | | | | | 115 | | | | | | 115 | | |
Total Liabilities:
|
| | | $ | — | | | | | $ | — | | | | | $ | 3,870 | | | | | $ | 3,870 | | |
| | |
January 1,
2020 |
| |
Issuances
|
| |
Settlements
|
| |
Change in
fair value |
| |
June 30,
2020 |
| |||||||||||||||
Redeemable convertible preferred stock tranche obligation
|
| | | $ | 3,755 | | | | | $ | — | | | | | $ | — | | | | | $ | (629) | | | | | $ | 3,126 | | |
Stock warrants liability
|
| | | | 115 | | | | | | 15 | | | | | | — | | | | | | (31) | | | | | | 99 | | |
Total
|
| | | $ | 3,870 | | | | | $ | 15 | | | | | $ | — | | | | | $ | (660) | | | | | $ | 3,225 | | |
| | |
January 1,
2019 |
| |
Issuances
|
| |
Settlements
|
| |
Change in
fair value |
| |
June 30,
2019 |
| |||||||||||||||
Redeemable convertible preferred stock tranche obligation
|
| | | $ | 3,261 | | | | | $ | — | | | | | $ | (902) | | | | | $ | 50 | | | | | $ | 2,409 | | |
Stock warrants liability
|
| | | | 67 | | | | | | — | | | | | | — | | | | | | (12) | | | | | | 55 | | |
Total
|
| | | $ | 3,328 | | | | | $ | — | | | | | $ | (902) | | | | | $ | 38 | | | | | $ | 2,464 | | |
| | |
June 30, 2020
|
| |
December 31, 2019
|
|
Expected volatility
|
| |
45.00%
|
| |
45.00%
|
|
Expected dividend yield
|
| |
0.00%
|
| |
0.00%
|
|
Expected term (in years)
|
| |
4.50 years
|
| |
5 years
|
|
Risk-free interest rate
|
| |
0.26%
|
| |
1.69%
|
|
Marketability discount
|
| |
55.00%
|
| |
50.00%
|
|
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Contracts in transit
|
| | | $ | 2,948 | | | | | $ | 2,645 | | |
Trade
|
| | | | 216 | | | | | | 202 | | |
Finance commission
|
| | | | 216 | | | | | | 87 | | |
Other
|
| | | | 239 | | | | | | 349 | | |
Total
|
| | | | 3,619 | | | | | | 3,283 | | |
Allowance for doubtful accounts
|
| | | | (33) | | | | | | (27) | | |
Total Accounts Receivable, net
|
| | | $ | 3,586 | | | | | $ | 3,256 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Used vehicles
|
| | | $ | 2,760 | | | | | $ | 7,592 | | |
Parts
|
| | | | — | | | | | | 33 | | |
Total | | | | $ | 2,760 | | | | | $ | 7,625 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Leasehold improvements
|
| | | $ | 695 | | | | | $ | 688 | | |
Furniture, fixtures, and equipment
|
| | | | 722 | | | | | | 715 | | |
Corporate vehicles
|
| | | | 104 | | | | | | 104 | | |
Total property and equipment
|
| | | | 1,521 | | | | | | 1,507 | | |
Less: accumulated depreciation
|
| | | | (977) | | | | | | (876) | | |
Property and Equipment, net
|
| | | $ | 544 | | | | | $ | 631 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Vehicles
|
| | | $ | 813 | | | | | $ | 1,083 | | |
Less: accumulated depreciation
|
| | | | (571) | | | | | | (639) | | |
Total Lease Vehicles, net
|
| | | $ | 242 | | | | | $ | 444 | | |
Year
|
| |
Minimum Rental Receipts
Under Operating Leases |
| |||
2020 (remaining)
|
| | | $ | 85 | | |
2021
|
| | | | 37 | | |
2022
|
| | | | 8 | | |
2023
|
| | | | 2 | | |
Total | | | | $ | 132 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Other Current Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 10 | | | | | $ | 13 | | |
Deferred acquisition costs
|
| | | | 37 | | | | | | 32 | | |
Prepaid expenses
|
| | | | 226 | | | | | | 189 | | |
Total Other Current Assets
|
| | | $ | 273 | | | | | $ | 234 | | |
Other Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 20 | | | | | $ | 38 | | |
Deferred acquisition costs
|
| | | | 66 | | | | | | 50 | | |
Security deposits
|
| | | | 252 | | | | | | 255 | | |
Total Other Assets
|
| | | $ | 338 | | | | | $ | 343 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Term note payable
|
| | | $ | 4 | | | | | $ | 9 | | |
Convertible notes payable, net
|
| | | | 3,312 | | | | | | 2,816 | | |
Paycheck protection program loan
|
| | | | 1,749 | | | | | | — | | |
| | | | | 5,065 | | | | | | 2,825 | | |
Current portion of long-term debt
|
| | | | (3,316) | | | | | | (2,825) | | |
Long-term Debt
|
| | | $ | 1,749 | | | | | $ | — | | |
|
Maturity
|
| |
4.50 years
|
|
|
Risk-free interest rate
|
| |
0.26%
|
|
|
Volatility
|
| |
60.00%
|
|
|
Dividend yield
|
| |
0.00%
|
|
|
Weighted average fair value per share
|
| |
1.36
|
|
| | |
June 30,
2020 |
| |
June 30,
2019 |
| ||||||
Stock warrants outstanding
|
| | | | 63,297 | | | | | | 23,460 | | |
Stock warrants issued with convertible notes payable
|
| | | | 12,846 | | | | | | — | | |
Stock warrants cancelled
|
| | | | — | | | | | | — | | |
Stock warrants exercised
|
| | | | — | | | | | | — | | |
Stock warrants vested
|
| | | | 76,143 | | | | | | 23,460 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
License and title fees
|
| | | $ | 653 | | | | | $ | 399 | | |
Payroll and bonuses
|
| | | | 320 | | | | | | 388 | | |
Deferred rent
|
| | | | 325 | | | | | | 300 | | |
Other accrued expenses
|
| | | | 1,326 | | | | | | 489 | | |
Total Accrued Expenses
|
| | | $ | 2,624 | | | | | $ | 1,576 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
Other Liabilities, Current | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | $ | 551 | | | | | $ | 434 | | |
Other Liabilities | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | | 962 | | | | | | 719 | | |
Other long-term liabilities
|
| | | | 103 | | | | | | 97 | | |
Stock warrants liability
|
| | | | 99 | | | | | | 115 | | |
Other Liabilities, Long-term
|
| | | $ | 1,164 | | | | | $ | 931 | | |
| | |
Total Per Year
|
| |||
2020 (remaining)
|
| | | $ | 1,000 | | |
2021
|
| | | | 1,963 | | |
2022
|
| | | | 1,995 | | |
2023
|
| | | | 1,830 | | |
2024
|
| | | | 878 | | |
Thereafter
|
| | | | 1,409 | | |
Total | | | | $ | 9,075 | | |
| | |
Payments Due to
Third-Parties |
| |
Future Receipts
|
| ||||||
2020 (remaining)
|
| | | $ | 557 | | | | | $ | 903 | | |
2021
|
| | | | 978 | | | | | | 1,554 | | |
2022
|
| | | | 548 | | | | | | 858 | | |
2023
|
| | | | 241 | | | | | | 355 | | |
2024
|
| | | | 34 | | | | | | 49 | | |
Total | | | | $ | 2,358 | | | | | $ | 3,719 | | |
| | |
Number of
Options |
| |
Weighted Average
Exercise Price |
| ||||||
Balance (December 31, 2019)
|
| | | | 154,150 | | | | | $ | 6.03 | | |
Granted
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | | | |
Balance (June 30, 2020)
|
| | | | 154,150 | | | | | | 6.03 | | |
Vested (as of June 30, 2020)
|
| | | | 146,613 | | | | | $ | 5.99 | | |
| | |
Number of
Options |
| |
Weighted Average
Exercise Price |
| ||||||
Balance (December 31, 2018)
|
| | | | 161,650 | | | | | $ | 6.07 | | |
Granted
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | (7,500) | | | | | | 6.82 | | |
Balance (June 30, 2019)
|
| | | | 154,150 | | | | | | 6.03 | | |
Vested (as of June 30, 2019)
|
| | | | 121,950 | | | | | $ | 5.59 | | |
| | |
Number of
Options |
| |
Weighted Average
Remaining Contractual Life |
| |
Weighted Average
Exercise Price |
| ||||||
Outstanding
|
| | | | 154,150 | | | |
2.17 years
|
| | | $ | 6.03 | | |
Exercisable
|
| | | | 146,613 | | | |
2.17 years
|
| | | $ | 5.99 | | |
| | |
Number of
Units |
| |
Weighted Averaged
Exercise Price |
| ||||||
Balance (December 31, 2019)
|
| | | | 279,176 | | | | | $ | 9.82 | | |
Granted
|
| | | | 50,000 | | | | | | 9.82 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Balance (June 30, 2020)
|
| | | | 329,176 | | | | | $ | 9.82 | | |
| | |
Number of
Units |
| |
Weighted Averaged
Exercise Price |
| ||||||
Balance (December 31, 2018)
|
| | | | 255,052 | | | | | $ | 9.82 | | |
Granted
|
| | | | 2,000 | | | | | | 9.82 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Balance (June 30, 2019)
|
| | | | 257,052 | | | | | $ | 9.82 | | |
| | |
2020
|
| |
2019
|
| ||||||
Numerator: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,720) | | | | | $ | (5,520) | | |
Redeemable convertible preferred stock dividends undeclared and cumulative
|
| | | | (924) | | | | | | (657) | | |
Net loss attributable to common stockholders
|
| | | | (2,644) | | | | | | (6,177) | | |
Denominator: | | | | | | | | | | | | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 3,716,526 | | | | | | 3,716,526 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (0.71) | | | | | $ | (1.66) | | |
| | |
2020
|
| |
2019
|
| ||||||
Series A Preferred Stock outstanding
|
| | | | 2,034,751 | | | | | | 2,034,751 | | |
Convertible notes payable
|
| | | | 338,674 | | | | | | — | | |
Stock warrants
|
| | | | 76,143 | | | | | | 23,460 | | |
Stock options outstanding to purchase shares of common stock
|
| | | | 483,326 | | | | | | 411,202 | | |
Total | | | | | 2,932,894 | | | | | | 2,469,413 | | |
| | |
Total purchases from vendor to total purchases for the
six months period ended June 30, |
| |||||||||
Vendor
|
| |
2020
|
| |
2019
|
| ||||||
Vendor A
|
| | | | 13% | | | | | | —% | | |
Vendor B
|
| | | | 16% | | | | | | 12% | | |
Vendor C
|
| | | | 11% | | | | | | —% | | |
Vendor D
|
| | | | 11% | | | | | | —% | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 1,600,833 | | | | | $ | 12,000 | | |
Prepaid income taxes
|
| | | | 120,579 | | | | | | — | | |
Prepaid expenses
|
| | | | 96,208 | | | | | | — | | |
Total Current Assets
|
| | | | 1,817,620 | | | | | | 12,000 | | |
Deferred offering costs
|
| | | | — | | | | | | 294,004 | | |
Cash and marketable securities held in Trust Account
|
| | | | 309,840,375 | | | | | | — | | |
Total Assets
|
| | | $ | 311,657,995 | | | | | $ | 306,004 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 214,813 | | | | | $ | — | | |
Promissory note – related party
|
| | | | — | | | | | | 283,754 | | |
Total Current Liabilities
|
| | | | 214,813 | | | | | | 283,754 | | |
Deferred underwriting fee payable
|
| | | | 10,695,063 | | | | | | — | | |
Total Liabilities
|
| | | | 10,909,876 | | | | | | 283,754 | | |
Commitments and contingencies (Note 5) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 29,574,811 shares at $10.00 per share as of December 31, 2019
|
| | | | 295,748,110 | | | | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 5,000,000 shares authorized, none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 200,000,000 shares authorized;
982,511 and no shares issued and outstanding (excluding 29,574,811 and no shares subject to possible redemption) as of December 31, 2019 and 2018, respectively |
| | | | 98 | | | | | | — | | |
Class B common stock, $0.0001 par value; 15,000,000 shares authorized; 7,639,330 and 8,625,000(1) shares issued and outstanding at December 31, 2019 and 2018, respectively
|
| | | | 764 | | | | | | 863 | | |
Additional paid in capital
|
| | | | 1,523,695 | | | | | | 24,137 | | |
Retained earnings/(Accumulated deficit)
|
| | | | 3,475,452 | | | | | | (2,750) | | |
Total Stockholders’ Equity
|
| | | | 5,000,009 | | | | | | 22,250 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 311,657,995 | | | | | $ | 306,004 | | |
| | |
Year Ended
December 31, 2019 |
| |
For the Period
From November 7, 2018 (Inception) Through December 31, 2018 |
| ||||||
Operating costs
|
| | | $ | 932,834 | | | | | $ | 2,750 | | |
Loss from operations
|
| | | | (932,834) | | | | | | (2,750) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 5,531,557 | | | | | | — | | |
Income (loss) before provision for income taxes
|
| | | | 4,598,723 | | | | | | (2,750) | | |
Provision for income taxes
|
| | | | (1,120,521) | | | | | | — | | |
Net income (loss)
|
| | | $ | 3,478,202 | | | | | $ | (2,750) | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 30,479,514 | | | | | | — | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.14 | | | | | | — | | |
Weighted average shares outstanding of Class B non-redeemable common stock
|
| | | | 7,601,435 | | | | | | 7,500,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.10) | | | | | $ | (0.00) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – November 7, 2018 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor
|
| | | | | | | | | | | | | | | | 8,625,000 | | | | | | 863 | | | | | | 24,137 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,750) | | | | | | (2,750) | | |
Balance – December 31, 2018
|
| | | | — | | | | | | — | | | | | | 8,625,000 | | | | | | 863 | | | | | | 24,137 | | | | | | (2,750) | | | | | | 22,250 | | |
Sale of 30,557,322 Units, net of underwriting discount and offering costs
|
| | | | 30,557,322 | | | | | | 3,056 | | | | | | — | | | | | | — | | | | | | 288,133,146 | | | | | | — | | | | | | 288,136,202 | | |
Sale of 6,074,310 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,111,465 | | | | | | — | | | | | | 9,111,465 | | |
Forfeiture of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (985,670) | | | | | | (99) | | | | | | 99 | | | | | | — | | | | | | — | | |
Common stock subject to possible redemption
|
| | | | (29,574,811) | | | | | | (2,958) | | | | | | — | | | | | | — | | | | | | (295,745,152) | | | | | | — | | | | | | (295,748,110) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,478,202 | | | | | | 3,478,202 | | |
Balance – December 31, 2019
|
| | | | 982,511 | | | | | $ | 98 | | | | | | 7,639,330 | | | | | $ | 764 | | | | | $ | 1,523,695 | | | | | $ | 3,475,452 | | | | | $ | 5,000,009 | | |
|
| | |
Year Ended
December 31, 2019 |
| |
For the Period From
November 7, 2018 (Inception) Through December 31, 2018 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 3,478,202 | | | | | $ | (2,750) | | |
Adjustments to reconcile net income (loss) to net cash used in operating
activities: |
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (5,531,557) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid income taxes
|
| | | | (120,579) | | | | | | — | | |
Prepaid expenses
|
| | | | (96,208) | | | | | | — | | |
Accrued expenses
|
| | | | 214,813 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (2,055,329) | | | | | | (2,750) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash into Trust Account
|
| | | | (305,573,220) | | | | | | — | | |
Cash withdrawn from Trust Account
|
| | | | 1,264,402 | | | | | | — | | |
Net cash used in investing activities
|
| | | | (304,308,818) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 299,461,755 | | | | | | — | | |
Proceeds from sale of Private Placement Warrants
|
| | | | 9,111,465 | | | | | | — | | |
Repayment of advances from related party
|
| | | | (77,389) | | | | | | — | | |
Proceeds from promissory note – related party
|
| | | | 79,500 | | | | | | 70,000 | | |
Repayment of promissory note – related party
|
| | | | (400,000) | | | | | | — | | |
Payment of offering costs
|
| | | | (222,351) | | | | | | (80,250) | | |
Net cash provided by financing activities
|
| | | | 307,952,980 | | | | | | 14,750 | | |
Net Change in Cash
|
| | | | 1,588,833 | | | | | | 12,000 | | |
Cash – Beginning of period
|
| | | | 12,000 | | | | | | — | | |
Cash – End of period
|
| | | $ | 1,600,833 | | | | | $ | 12,000 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 1,241,100 | | | | | | — | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 292,267,800 | | | | | $ | — | | |
Change in value of common stock subject to possible redemption
|
| | | $ | 3,480,310 | | | | | $ | — | | |
Deferred underwriting fee payable
|
| | | $ | 10,695,063 | | | | | $ | — | | |
Payment of offering costs through promissory note and advances
|
| | | $ | 114,135 | | | | | $ | 213,754 | | |
| | |
December 31,
2019 |
| |||
Deferred tax asset | | | | | | | |
Organizational costs/Startup expenses
|
| | | $ | 153,773 | | |
Total deferred tax asset
|
| | | | 153,773 | | |
Valuation allowance
|
| | | | (153,773) | | |
Deferred tax asset, net of allowance
|
| | | $ | — | | |
| | |
December 31,
2019 |
| |||
Federal | | | | | | | |
Current
|
| | | $ | 1,120,521 | | |
Deferred
|
| | | | (153,773) | | |
State | | | | | | | |
Current
|
| | | | — | | |
Deferred
|
| | | | — | | |
Change in valuation allowance
|
| | | | 153,773 | | |
Income tax provision
|
| | | $ | 1,120,521 | | |
|
Statutory federal income tax rate
|
| | | | 21.0% | | |
|
State taxes, net of federal tax benefit
|
| | | | 0.0% | | |
|
Change in valuation allowance
|
| | | | 3.3% | | |
|
Income tax provision
|
| | | | 24.3% | | |
| | |
Held-To-Maturity
|
| |
Amortized Cost
|
| |
Gross
Holding Gain |
| |
Fair Value
|
| |||||||||
December 31, 2019
|
| |
U.S. Treasury Securities (Mature on 2/6/2020)
|
| | | $ | 309,688,279 | | | | | $ | 2,018 | | | | | $ | 309,690,297 | | |
| | |
June 30,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 590,796 | | | | | $ | 1,600,833 | | |
Prepaid income taxes
|
| | | | — | | | | | | 120,579 | | |
Prepaid expenses
|
| | | | 62,083 | | | | | | 96,208 | | |
Total Current Assets
|
| | | | 652,879 | | | | | | 1,817,620 | | |
Cash and marketable securities held in Trust Account
|
| | | | 311,111,933 | | | | | | 309,840,375 | | |
Total Assets
|
| | | $ | 311,764,812 | | | | | $ | 311,657,995 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 64,775 | | | | | $ | 214,813 | | |
Income taxes payable
|
| | | | 100,807 | | | | | | — | | |
Total Current Liabilities
|
| | | | 165,582 | | | | | | 214,813 | | |
Deferred underwriting fee payable
|
| | | | 10,695,063 | | | | | | 10,695,063 | | |
Total Liabilities
|
| | | | 10,860,645 | | | | | | 10,909,876 | | |
Commitments and Contingencies
|
| | | | | | | | | | | | |
Common stock subject to possible redemption, 29,590,416 and 29,574,811
shares as of June 30, 2020 and December 31, 2019, respectively (at $10.00 per share) |
| | | | 295,904,160 | | | | | | 295,748,110 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 5,000,000 shares authorized, none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 966,906 and 982,511 shares issued and outstanding (excluding 29,590,416 and 29,574,811 subject to possible redemption) as of June 30, 2020 and December 31, 2019, respectively
|
| | | | 97 | | | | | | 98 | | |
Class B common stock, $0.0001 par value; 15,000,000 shares authorized;
7,639,330 shares issued and outstanding at June 30, 2020 and December 31, 2019 |
| | | | 764 | | | | | | 764 | | |
Additional paid-in capital
|
| | | | 1,367,646 | | | | | | 1,523,695 | | |
Retained earnings
|
| | | | 3,631,500 | | | | | | 3,475,452 | | |
Total Stockholders’ Equity
|
| | | | 5,000,007 | | | | | | 5,000,009 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 311,764,812 | | | | | $ | 311,657,995 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Operating costs
|
| | | $ | 253,693 | | | | | $ | 271,121 | | | | | $ | 1,189,698 | | | | | $ | 390,221 | | |
Loss from operations
|
| | | | (253,693) | | | | | | (271,121) | | | | | | (1,189,698) | | | | | | (390,221) | | |
Other income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 491,146 | | | | | | 1,808,625 | | | | | | 1,677,132 | | | | | | 2,460,117 | | |
Income before provision for income taxes
|
| | | | 237,453 | | | | | | 1,537,504 | | | | | | 487,434 | | | | | | 2,069,896 | | |
Provision for income taxes
|
| | | | (92,641) | | | | | | (369,677) | | | | | | (331,386) | | | | | | (495,904) | | |
Net income
|
| | | $ | 144,812 | | | | | $ | 1,167,827 | | | | | $ | 156,048 | | | | | $ | 1,573,992 | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 30,557,322 | | | | | | 30,501,590 | | | | | | 30,557,322 | | | | | | 30,364,057 | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.01 | | | | | $ | 0.05 | | | | | $ | 0.04 | | | | | $ | 0.06 | | |
Weighted average shares outstanding of Class B non-redeemable common stock(1)
|
| | | | 7,639,330 | | | | | | 7,625,397 | | | | | | 7,639,330 | | | | | | 7,591,014 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.03) | | | | | $ | (0.03) | | | | | $ | (0.14) | | | | | $ | (0.04) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 982,511 | | | | | $ | 98 | | | | | | 7,639,330 | | | | | $ | 764 | | | | | $ | 1,523,695 | | | | | $ | 3,475,452 | | | | | $ | 5,000,009 | | |
Change in value of common stock subject to possible redemption
|
| | | | (1,124) | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,240) | | | | | | — | | | | | | (11,240) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,236 | | | | | | 11,236 | | |
Balance – March 31, 2020
|
| | | | 981,387 | | | | | | 98 | | | | | | 7,639,330 | | | | | | 764 | | | | | | 1,512,455 | | | | | | 3,486,688 | | | | | | 5,000,005 | | |
Change in value of common stock subject to possible redemption
|
| | | | (14,481) | | | | | | (1) | | | | | | — | | | | | | — | | | | | | (144,809) | | | | | | — | | | | | | (144,810) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 144,812 | | | | | | 144,812 | | |
Balance – June 30, 2020
|
| | | | 966,906 | | | | | $ | 97 | | | | | | 7,639,330 | | | | | $ | 764 | | | | | $ | 1,367,646 | | | | | $ | 3,631,500 | | | | | $ | 5,000,007 | | |
|
| | |
Common Stock
Class A |
| |
Class B
Common Stock(1) |
| |
Additional
Paid-in Capital |
| |
(Accumulated
Deficit) Retained Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | 8,625,000 | | | | | $ | 863 | | | | | $ | 24,137 | | | | | $ | (2,750) | | | | | $ | 22,250 | | |
Sale of 30,000,000 Units, net of underwriting discount and offering costs
|
| | | | 30,000,000 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | 282,866,510 | | | | | | — | | | | | | 282,869,510 | | |
Sale of 6,000,000 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,000,000 | | | | | | — | | | | | | 9,000,000 | | |
Common stock subject to possible redemption
|
| | | | (28,729,792) | | | | | | (2,873) | | | | | | — | | | | | | — | | | | | | (287,295,047) | | | | | | — | | | | | | (287,297,920) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 406,165 | | | | | | 406,165 | | |
Balance – March 31, 2019
|
| | | | 1,270,208 | | | | | | 127 | | | | | | 8,625,000 | | | | | | 863 | | | | | | 4,595,600 | | | | | | 403,415 | | | | | | 5,000,005 | | |
Sale of 557,322 Units, net of underwriting
discount and offering costs |
| | | | 557,322 | | | | | | 56 | | | | | | — | | | | | | — | | | | | | 5,266,636 | | | | | | — | | | | | | 5,266,692 | | |
Sale of 74,310 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 111,465 | | | | | | — | | | | | | 111,465 | | |
Forfeiture of Class B common stock by Sponsor
|
| | | | — | | | | | | — | | | | | | (985,670) | | | | | | (99) | | | | | | 99 | | | | | | — | | | | | | — | | |
Change in value of common stock subject
to possible redemption |
| | | | (654,598) | | | | | | (66) | | | | | | — | | | | | | — | | | | | | (6,545,914) | | | | | | — | | | | | | (6,545,980) | | |
Net income
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | 1,167,827 | | | | | | 1,167,827 | | |
Balance – June 30, 2019
|
| | | | 1,172,932 | | | | | $ | 117 | | | | | | 7,639,330 | | | | | $ | 764 | | | | | $ | 3,427,886 | | | | | $ | 1,571,242 | | | | | $ | 5,000,009 | | |
|
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 156,048 | | | | | $ | 1,573,992 | | |
Adjustments to reconcile net income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (1,677,132) | | | | | | (2,460,117) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid income taxes
|
| | | | 120,579 | | | | | | — | | |
Prepaid expenses
|
| | | | 34,125 | | | | | | (126,049) | | |
Accrued expenses
|
| | | | (150,038) | | | | | | (155,958) | | |
Income taxes payable
|
| | | | 100,807 | | | | | | 102,576 | | |
Net cash used in operating activities
|
| | | | (1,415,611) | | | | | | (1,065,556) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash into Trust Account
|
| | | | — | | | | | | (305,573,220) | | |
Cash withdrawn from Trust Account for franchise and income taxes
|
| | | | 405,574 | | | | | | 629,822 | | |
Net cash provided by (used in) investing activities
|
| | | | 405,574 | | | | | | (304,943,398) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 299,461,755 | | |
Proceeds from sale of Private Placement Warrants
|
| | | | — | | | | | | 9,111,465 | | |
Repayment of advances from related party
|
| | | | — | | | | | | (77,389) | | |
Proceeds from promissory note – related party
|
| | | | — | | | | | | 79,500 | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (400,000) | | |
Payment of offering costs
|
| | | | — | | | | | | (222,351) | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 307,952,980 | | |
Net Change in Cash
|
| | | | (1,010,037) | | | | | | 1,944,026 | | |
Cash – Beginning of period
|
| | | | 1,600,833 | | | | | | 12,000 | | |
Cash – End of period
|
| | | $ | 590,796 | | | | | $ | 1,956,026 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 110,000 | | | | | $ | 621,953 | | |
Non-cash investing and financing activities:
|
| | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | — | | | | | $ | 292,267,800 | | |
Change in value of common stock subject to possible redemption
|
| | | $ | 156,050 | | | | | $ | 1,576,100 | | |
Deferred underwriting fee payable
|
| | | $ | — | | | | | $ | 10,695,063 | | |
Payment of offering costs through promissory note and advances
|
| | | $ | — | | | | | $ | 114,135 | | |
| | |
Held-To-Maturity
|
| |
Amortized
Cost |
| |
Gross
Holding Gain |
| |
Fair Value
|
| |||||||||
June 30, 2020
|
| |
U.S. Treasury Securities (Matures on 9/10/2020)
|
| | | $ | 310,844,426 | | | | | $ | 7,122 | | | | | $ | 310,851,548 | | |
December 31, 2019
|
| |
U.S. Treasury Securities (Matured on 2/6/2020)
|
| | | $ | 309,688,279 | | | | | $ | 2,018 | | | | | $ | 309,690,297 | | |
| | |
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| Exhibits | | | | |
| Exhibit A – Form of Amended and Restated Certificate of Incorporation of Acquiror | | | | |
| Exhibit B – Form of Amended and Restated Bylaws of Acquiror | | | | |
| Exhibit C – Form of Amended and Restated Certificate of Incorporation of the Company | | | | |
| Exhibit D – Form of Amended and Restated Bylaws of the Company | | | | |
| Exhibit E – Form of Sponsor Letter Agreement | | | | |
| Exhibit F – Form of Stockholder Letter Agreement | | | | |
| Exhibit G – Form of Equity Incentive Plan | | | | |
| Exhibit H – Pre-Closing Company Charter Amendment | | | | |
| Exhibit I – Form of Registration Rights Agreement | | | | |
| Exhibit J – Form of Stockholders Agreement | | | | |
| | | | ACAMAR PARTNERS ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Luis Ignacio Solorzano Aizpuru
Name:
Luis Ignacio Solorzano Aizpuru
|
|
| | | | | | |
Title:
Chief Executive Officer
|
|
| | | | ACAMAR PARTNERS SUB, INC. | | |||
| | | | By: | | |
/s/ Luis Ignacio Solorzano Aizpuru
Name:
Luis Ignacio Solorzano Aizpuru
|
|
| | | | | | |
Title:
Chief Executive Officer
|
|
| | | | CARLOTZ, INC. | | |||
| | | | By: | | |
/s/ Michael Bor
Name:
Michael Bor
|
|
| | | | | | |
Title:
Chief Executive Officer
|
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/s/ [•]
[•]
[•] |
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| | | | Sincerely, | | |||
| | | | ACAMAR PARTNERS SPONSOR I LLC | | |||
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Name:
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Name:
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Name:
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Name:
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| | | | Acknowledged and Agreed: | | |||
| | | | ACAMAR PARTNERS ACQUISITION CORP. | | |||
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Name:
Title: |
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| | | | Acknowledged and Agreed: | | |||
| | | | CARLOTZ, INC. | | |||
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Name:
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Corporate Secretary
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| | | | COMPANY: | | |||
| | | | ACAMAR PARTNERS ACQUISITION CORP. | | |||
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Name:
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| | | | HOLDER: | | |||
| | | | TRP CAPITAL PARTNERS, LP | | |||
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Name:
Title: |
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| | | | HOLDER: | | |||
| | | | MICHAEL W. BOR | | |||
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| | | | Print Name: Michael W. Bor | | |||
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| | | | HOLDER: | | |||
| | | | AARON S. MONTGOMERY | | |||
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| | | | Print Name: Aaron S. Montgomery | | |||
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| | | | Email: | | |
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| | | | HOLDER: | | |||
| | | | WILLIAM S. BOLAND | | |||
| | | | By: | | |
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| | | | Print Name: William S. Boland | | |||
| | | | Address: | | |
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| | | | Email: | | |
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| | | | HOLDER: | | |||
| | | | AUTOMOTIVE FINANCE CORPORATION | | |||
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Name:
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| | | | HOLDER: | | |||
| | | | KAR AUCTION SERVICES, INC. | | |||
| | | | By | | |
Name:
Title: |
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| | | | HOLDER: | | |||
| | | | MICHAEL W. BOR 2020 FAMILY TRUST | | |||
| | | | By | | |
Name:
Title: |
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| | | | HOLDER: | | |||
| | | | AARON S. MONTGOMERY 2020 FAMILY TRUST | | |||
| | | | By | | |
Name:
Title: |
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| | | | HOLDER: | | |||
| | | | WILLIAM S. BOLAND 2020 FAMILY TRUST | | |||
| | | | By | | |
Name:
Title: |
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| | | | HOLDER: | | |||
| | | | MICHAEL W. BOR 2020 QUALIFIED GRANTOR RETAINED ANNUITY TRUST | | |||
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| | | | HOLDER: | | |||
| | | | ACAMAR PARTNERS SPONSOR I LLC | | |||
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Name:
Title: |
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Name of Holder
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Number of Shares
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| TRP Capital Partners, LP | | | | |
| Michael W. Bor | | | | |
| Aaron S. Montgomery | | | | |
| William S. Boland | | | | |
| Automotive Finance Corporation | | | | |
| KAR Auction Services, Inc. | | | | |
| Michael W. Bor 2020 Family Trust | | | | |
| Aaron S. Montgomery 2020 Family Trust | | | | |
| William S. Boland 2020 Family Trust | | | | |
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Michael W. Bor 2020 Qualified Grantor Retained Annuity Trust
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| | | | CARLOTZ, INC. | | |||
| | | | By: | | |
/s/ [•]
[•]
[•] |
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Corporate Secretary
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Exhibit No.
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Description
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| 23.1* | | | Consent of WithumSmith+Brown, PC. | |
| 23.2* | | | Consent of Deloitte & Touche LLP. | |
| 23.3** | | | Consent of Simpson Thacher & Bartlett LLP (to be included in Exhibit 5.1). | |
| 24.1* | | | Power of Attorney (included on the signature page hereto). | |
| 99.1** | | | Form of Proxy for Acamar Partners Acquisition Corp. Special Meeting of Stockholders. | |
| 99.2* | | | Consent of Michael Bor to be named as a Director. | |
| 99.3* | | | Consent of David Mitchell to be named as a Director. | |
| 99.4* | | | Consent of Steven Carrel to be named as a Director. | |
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Signature
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Title Date
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Date
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/s/ Juan Carlos Torres Carretero
Juan Carlos Torres Carretero
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Chairman
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October 29, 2020
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/s/ Luis Ignacio Solorzano Aizpuru
Luis Ignacio Solorzano Aizpuru
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Chief Executive Officer and Director
(Principal Executive Officer) |
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October 29, 2020
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/s/ Joseba Asier Picaza Ucar
Joseba Asier Picaza Ucar
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Chief Financial Officer and Secretary
(Principal Financial and Accounting Officer) |
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October 29, 2020
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/s/ Domenico de Sole
Domenico de Sole
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Director
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October 29, 2020
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/s/ Teck H. Wong
Teck H. Wong
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Director
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October 29, 2020
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/s/ James E. Skinner
James E. Skinner
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Director
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October 29, 2020
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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Registration Statement on Form S-4, of our report dated March 27, 2020, (which includes an explanatory paragraph relating to Acamar Partners Acquisition Corp.’s ability to continue as a going concern) relating to the balance sheets of Acamar Partners Acquisition Corp as of December 31, 2019 and 2018, and the related statements of operations, changes in stockholders’ equity and cash flows for the year ended December 31, 2019 and for the period from November 7, 2018 (inception) to December 31, 2018, appearing in the proxy statement/prospectus, which is a part of this Registration Statement, and to the reference to our Firm under the caption “Experts” in the Registration Statement.
/s/ WithumSmith+Brown, PC | |
New York, New York | |
October 29, 2020 |
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the use in this Registration Statement on Form S-4 of our report dated October 29, 2020, relating to the financial statements of CarLotz, Inc. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ DELOITTE & TOUCHE LLP
Detroit, Michigan
October 29, 2020
Exhibit 99.2
October 28, 2020
Acamar Partners Acquisition Corp.
1450 Brickell Avenue, Suite 2130
Miami, Florida 33131
Consent to Reference in Proxy Statement/Prospectus/Consent Solicitation Statement
Acamar Partners Acquisition Corp. (the “Company”) is filing a Registration Statement on Form S-4 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”). In connection therewith, I hereby consent, pursuant to Rule 438 of the Securities Act, to the reference to me in the proxy statement/prospectus/consent solicitation statement included in such Registration Statement as a future member of the board of directors of the Company, such appointment to commence upon the effective time of the merger described in the proxy statement/prospectus/consent solicitation statement.
Sincerely,
/s/ Michael Bor
Michael Bor |
Exhibit 99.3
October 28, 2020
Acamar Partners Acquisition Corp.
1450 Brickell Avenue, Suite 2130
Miami, Florida 33131
Consent to Reference in Proxy Statement/Prospectus/Consent Solicitation Statement
Acamar Partners Acquisition Corp. (the “Company”) is filing a Registration Statement on Form S-4 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”). In connection therewith, I hereby consent, pursuant to Rule 438 of the Securities Act, to the reference to me in the proxy statement/prospectus/consent solicitation statement included in such Registration Statement as a future member of the board of directors of the Company, such appointment to commence upon the effective time of the merger described in the proxy statement/prospectus/consent solicitation statement.
Sincerely,
/s/ David Mitchell |
David Mitchell |
Exhibit 99.4
October 28, 2020
Acamar Partners Acquisition Corp.
1450 Brickell Avenue, Suite 2130
Miami, Florida 33131
Consent to Reference in Proxy Statement/Prospectus/Consent Solicitation Statement
Acamar Partners Acquisition Corp. (the “Company”) is filing a Registration Statement on Form S-4 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”). In connection therewith, I hereby consent, pursuant to Rule 438 of the Securities Act, to the reference to me in the proxy statement/prospectus/consent solicitation statement included in such Registration Statement as a future member of the board of directors of the Company, such appointment to commence upon the effective time of the merger described in the proxy statement/prospectus/consent solicitation statement.
Sincerely,
/s/ Steven Carrel |
Steven Carrel |