|
Delaware
(State or other jurisdiction of
incorporation or organization) |
| |
5500
(Primary Standard Industrial
Classification Code Number) |
| |
83-2456129
(I.R.S. Employer
Identification Number) |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☒
|
|
|
Non-accelerated filer
☐
|
| |
Smaller reporting company
☐
|
|
| | | |
Emerging growth company
☒
|
|
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 |
| |
Amount of
Registration Fee |
|
Class A common stock, par value $0.0001 per share(2)
|
| |
12,500,000
|
| |
$9.27(6)
|
| |
$115,875,000.00(6)
|
| |
$12,641.96
|
|
Class A common stock, par value $0.0001 per share(3)
|
| |
59,399,700
|
| |
$9.27(6)
|
| |
$550,635,219.00(6)
|
| |
$60,074.30
|
|
Class A common stock, par value $0.0001 per share(4)
|
| |
6,074,310
|
| |
$9.27(6)
|
| |
$56,308,853.70(6)
|
| |
$6,143.30
|
|
Class A common stock, par value $0.0001 per share(5)
|
| |
10,185,774
|
| |
$9.27(6)
|
| |
$94,422,124.98(6)
|
| |
$10,301.45
|
|
Warrants to purchase Class A common stock(4)
|
| |
6,074,310
|
| |
$—(7)
|
| |
$—(7)
|
| |
$—
|
|
TOTAL
|
| | | | | | | | | | |
$89,161.01 (8)
|
|
|
PRELIMINARY PROSPECTUS
|
| |
Subject to Completion
|
| |
March 19, 2021
|
|
| | | | | 1 | | | |
| | | | | 8 | | | |
| | | | | 10 | | | |
| | | | | 34 | | | |
| | | | | 35 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 56 | | | |
| | | | | 68 | | | |
| | | | | 75 | | | |
| | | | | 81 | | | |
| | | | | 85 | | | |
| | | | | 87 | | | |
| | | | | 92 | | | |
| | | | | 103 | | | |
| | | | | 105 | | | |
| | | | | 105 | | | |
| | | | | 106 | | | |
| | | | | F-1 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Retail vehicles sold
|
| | | | 6,215 | | | | | | 6,435 | | | | | | 4,077 | | |
Number of hubs
|
| | | | 8 | | | | | | 8 | | | | | | 8 | | |
Average monthly unique visitors
|
| | | | 66,505 | | | | | | 57,151 | | | | | | 39,781 | | |
Vehicles available for sale
|
| | | | 2,019 | | | | | | 1,061 | | | | | | 1,067 | | |
Retail gross profit per unit
|
| | | $ | 1,797 | | | | | $ | 1,393 | | | | | $ | 1,602 | | |
Percentage of unit sales via consignment
|
| |
66%
|
| |
46%
|
| |
41%
|
|
| |
Year Ended December 31,
|
| ||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| |
(audited, $ in thousands)
|
| ||||||||||||||||
Retail vehicle sales
|
| | | $ | 104,253 | | | | | $ | 90,382 | | | | | $ | 53,448 | | |
Wholesale vehicle sales
|
| | | | 9,984 | | | | | | 8,454 | | | | | | 3,153 | | |
Finance and insurance, net
|
| | | | 3,898 | | | | | | 3,117 | | | | | | 1,608 | | |
Lease income, net
|
| | | | 490 | | | | | | 533 | | | | | | 142 | | |
Total revenues
|
| | |
|
118,625
|
| | | |
|
102,486
|
| | | |
|
58,351
|
| |
Cost of sales (exclusive of depreciation)
|
| | | | 107,369 | | | | | | 93,780 | | | | | | 52,708 | | |
Gross profit
|
| | |
|
11,256
|
| | | |
|
8,706
|
| | | |
|
5,643
|
| |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 17,552 | | | | | | 18,305 | | | | | | 11,661 | | |
Depreciation expense
|
| | | | 341 | | | | | | 504 | | | | | | 338 | | |
Management fee expense – related party
|
| | | | 215 | | | | | | 250 | | | | | | 250 | | |
Total operating expenses
|
| | | | 18,108 | | | | | | 19,059 | | | | | | 12,249 | | |
Loss from operations
|
| | | | (6,852) | | | | | | (10,353) | | | | | | (6,606) | | |
Interest expense
|
| | | | 518 | | | | | | 651 | | | | | | 466 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | |
Management fee income – related party
|
| | | | — | | | | | | — | | | | | | 127 | | |
Change in fair value of warrants liability
|
| | | | (14) | | | | | | 24 | | | | | | (2) | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 923 | | | | | | (1,396) | | | | | | (272) | | |
Other income (expense)
|
| | | | (81) | | | | | | (291) | | | | | | 662 | | |
Total other income (expense), net
|
| | |
|
828
|
| | | |
|
(1,663)
|
| | | |
|
515
|
| |
Loss before income tax expense
|
| | | | (6,542) | | | | | | (12,667) | | | | | | (6,557) | | |
Income tax expense
|
| | | | 10 | | | | | | 11 | | | | | | 3 | | |
Net loss
|
| | | $ | (6,552) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
| | |
Year Ended December 31,
|
| | | | | | | |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| |
2018
|
| |
Change
|
| | | |||||||||||||||||||
| | |
($ in thousands, except per unit metrics)
|
| | | | | | | |||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Retail vehicle sales
|
| | | $ | 104,253 | | | | | $ | 90,382 | | | | | | 15.3% | | | | | $ | 53,448 | | | | | | 69.1% | | | | | ||||
Wholesale vehicle sales
|
| | | | 9,984 | | | | | | 8,454 | | | | | | 18.1% | | | | | | 3,153 | | | | | | 168.1% | | | | | ||||
Finance and insurance, net
|
| | | | 3,898 | | | | | | 3,117 | | | | | | 25.1% | | | | | | 1,608 | | | | | | 93.8% | | | | | ||||
Lease income, net
|
| | | | 490 | | | | | | 533 | | | | | | (8.1)% | | | | | | 142 | | | | | | 275.4% | | | | | ||||
Total revenues
|
| | | $ | 118,625 | | | | | $ | 102,486 | | | | | | 15.7% | | | | | $ | 58,351 | | | | | | 75.6% | | | | | ||||
Cost of sales (exclusive of depreciation): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Retail vehicle cost of sales
|
| | | $ | 96,983 | | | | | $ | 84,534 | | | | | | 14.7% | | | | | $ | 48,523 | | | | | | 74.2% | | | | | ||||
Wholesale vehicle cost of sales
|
| | | | 10,386 | | | | | | 9,246 | | | | | | 12.3% | | | | | | 4,185 | | | | | | 120.9% | | | | | ||||
Total cost of sales
|
| | | $ | 107,369 | | | | | $ | 93,780 | | | | | | 14.5% | | | | | $ | 52,708 | | | | | | 77.9% | | | | | ||||
Gross profit: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Retail vehicle gross profit
|
| | | $ | 7,270 | | | | | $ | 5,848 | | | | | | 24.3% | | | | | $ | 4,925 | | | | | | 18.7% | | | | | ||||
Wholesale vehicle gross profit
|
| | | | (402) | | | | | | (792) | | | | | | (49.2)% | | | | | | (1,032) | | | | | | (23.3)% | | | | | ||||
Finance and insurance gross profit
|
| | | | 3,898 | | | | | | 3,117 | | | | | | 25.1% | | | | | | 1,608 | | | | | | 93.8% | | | | | ||||
Lease income, net
|
| | | | 490 | | | | | | 533 | | | | | | (8.1)% | | | | | | 142 | | | | | | 275.4% | | | | | ||||
Total gross profit
|
| | | $ | 11,256 | | | | | $ | 8,706 | | | | | | 29.3% | | | | | $ | 5,643 | | | | | | 54.3% | | | | | ||||
Unit sales information: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Retail vehicles unit sales
|
| | | | 6,215 | | | | | | 6,435 | | | | | | (3.4)% | | | | | | 4,077 | | | | | | 57.8% | | | | | ||||
Wholesale vehicles unit sales
|
| | | | 1,059 | | | | | | 1,159 | | | | | | (8.6)% | | | | | | 610 | | | | | | 90.0% | | | | | ||||
Gross profit per unit(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Retail vehicles gross profit per unit
|
| | | $ | 1,797 | | | | | $ | 1,393 | | | | | | 29.0% | | | | | $ | 1,602 | | | | | | (13.1)% | | | | | ||||
Wholesale vehicles gross profit per unit
|
| | | | (380) | | | | | | (683) | | | | | | (44.4)% | | | | | | (1,692) | | | | | | (59.6)% | | | | | ||||
Total gross profit per unit
|
| | | $ | 1,547 | | | | | $ | 1,146 | | | | | | 35.0% | | | | | $ | 1,204 | | | | | | (4.8)% | | | | |
| | |
Year Ended December 31,
|
| | | | | | | |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
Change
|
| |
2018
|
| |
Change
|
| | | |||||||||||||||||||
| | |
($ in thousands)
|
| | | | | | | |||||||||||||||||||||||||||
Compensation and benefits(1)
|
| | | $ | 7,909 | | | | | $ | 8,992 | | | | | | (12.0)% | | | | | $ | 6,418 | | | | | | 40.1% | | | | | ||||
Marketing expense
|
| | | | 2,808 | | | | | | 3,803 | | | | | | (26.2)% | | | | | | 1,871 | | | | | | 103.3% | | | | | ||||
Other costs(2)
|
| | | | 6,835 | | | | | | 5,510 | | | | | | (24.0)% | | | | | | 3,372 | | | | | | 63.4% | | | | | ||||
Total selling, general and administrative expenses
|
| | | $ | 17,552 | | | | | $ | 18,305 | | | | | | (4.1)% | | | | | $ | 11,661 | | | | | | 57.0% | | | | |
| | |
Year Ended December 31,
|
| | | | |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| | |||||||||||
| | |
($ in thousands)
|
| | | | |||||||||||||||
Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | ||
Net cash used in operating activities
|
| | | $ | (4,592) | | | | | $ | (5,473) | | | | | $ | (11,761) | | | | ||
Net cash used in investing activities
|
| | | | (1,227) | | | | | | (487) | | | | | | (362) | | | | ||
Net cash provided by financing activities
|
| | | | 4,530 | | | | | | 8,492 | | | | | | 4,503 | | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
| | |
Total
|
| |
Less than 1 Year
|
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than 5 years
|
| |||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||
AFC Facility(1)
|
| | | $ | 6,039 | | | | | $ | 6,039 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Convertible note
|
| | | | 3,500 | | | | | | 3,500 | | | | | | — | | | | | | — | | | | | | — | | |
Cumulative preferred dividends
payable |
| | | | 4,751 | | | | | | 4,751 | | | | | | — | | | | | | — | | | | | | — | | |
Promissory note
|
| | | | 3,000 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | — | | |
Operating lease obligations
|
| | | | 9,604 | | | | | | 2,303 | | | | | | 4,581 | | | | | | 2,209 | | | | | | 511 | | |
Capital lease obligations
|
| | | | 1,971 | | | | | | 139 | | | | | | 370 | | | | | | 384 | | | | | | 1,078 | | |
Total
|
| | | $ | 28,865 | | | | | $ | 19,732 | | | | | $ | 4,951 | | | | | $ | 2,593 | | | | | $ | 1,589 | | |
Name
|
| |
Age
|
| |
Position
|
|
Michael W. Bor | | |
47
|
| | Chief Executive Officer and Chairman (Class II Director) | |
John W. Foley II | | |
44
|
| | Chief Operating Officer | |
Daniel A. Valerian | | |
47
|
| | Chief Technology Officer | |
Elizabeth Sanders | | |
30
|
| | Chief Administrative Officer | |
Rebecca C. Polak | | |
50
|
| | Chief Commercial Officer and General Counsel | |
Thomas W. Stoltz | | |
60
|
| | Chief Financial Officer | |
Michael Chapman | | |
47
|
| | Chief Marketing Officer | |
David R. Mitchell | | |
54
|
| | Class I Director | |
Luis Ignacio Solorzano Aizpuru | | |
48
|
| | Class I Director | |
Kimberly H. Sheehy | | |
56
|
| | Class I Director | |
Steven G. Carrel | | |
46
|
| | Class II Director | |
James E. Skinner | | |
67
|
| | Class II Director | |
Linda B. Abraham | | |
58
|
| | Class III Director | |
Sarah M. Kauss | | |
45
|
| | Class III Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($)(2) |
| |
Stock
Awards ($) |
| |
Option
Awards ($)(3) |
| |
Non-Equity
Incentive Plan Compensation |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($)(4) |
| |
All Other
Compensation ($)(5) |
| |
Total
($) |
| |||||||||||||||||||||||||||
Michael W. Bor
Chief Executive Officer |
| | | | 2020 | | | | | | 345,457 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,957 | | | | | | 382,989 | | |
| | | 2019 | | | | | | 334,793 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24,975 | | | | | | 359,768 | | | ||
John W. Foley II
Chief Operating Officer |
| | | | 2020 | | | | | | 206,731 | | | | | | | | | | | | — | | | | | | — | | | | | | 18,750 | | | | | | — | | | | | | 20,478 | | | | | | 245,959 | | |
| | | 2019 | | | | | | 168,269 | | | | | | | | | | | | — | | | | | | 10,490 | | | | | | 25,500 | | | | | | — | | | | | | 17,106 | | | | | | 221,365 | | | ||
Rebecca C. Polak
Chief Commercial Officer and General Counsel |
| | | | 2020 | | | | | | 55,385 | | | | | | 120,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 175,385 | | |
| | | 2019 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Options
|
| |
RSUs
|
| |
Earnout RSUs
|
| |||||||||
Michael W. Bor
|
| | | | 128,218 | | | | | | 88,106 | | | | | | — | | |
John W. Foley
|
| | | | 64,109 | | | | | | 44,053 | | | | | | — | | |
Rebecca C. Polak
|
| | | | 303,700 | | | | | | 127,175 | | | | | | 86,175 | | |
| | | | | | | | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
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 W. Foley II
|
| | | | 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) | | | | | | 10,000 | | | | | | — | | | | | | — | | | | | | 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 | | |
Rebecca C. Polak
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name
|
| |
Annual
Base Salary ($) |
| |
Target Bonus
(%) |
| ||||||
Michael W. Bor
|
| | | | 600,000 | | | | | | 100 | | |
John W. Foley
|
| | | | 400,000 | | | | | | 75 | | |
Rebecca C. Polak
|
| | | | 400,000 | | | | | | 75 | | |
Name of Beneficial Owners
|
| |
Shares
|
| |
% total
|
| ||||||
Five Percent Stockholders | | | | | | | | | | | | | |
TRP(1) | | | | | 21,739,678 | | | | | | 19.1% | | |
Acamar Partners Sponsor I LLC(2)
|
| | | | 13,963,854 | | | | | | 11.7% | | |
KAR Auction Services, Inc.(3)
|
| | | | 7,154,353 | | | | | | 6.3% | | |
Directors and Named Executive Officers | | | | | | | | | | | | | |
Michael W. Bor(4)
|
| | | | 11,585,166 | | | | | | 10.1% | | |
John W. Foley II(5)
|
| | | | 1,199,563 | | | | | | 1.0% | | |
Rebecca C. Polak
|
| | | | — | | | | | | — | | |
David R. Mitchell(1)
|
| | | | 21,739,678 | | | | | | 19.1% | | |
Steven G. Carrel(1)
|
| | | | 21,739,678 | | | | | | 19.1% | | |
Luis Ignacio Solorzano Aizpuru(2)
|
| | | | 13,963,854 | | | | | | 11.7% | | |
James E. Skinner(6)
|
| | | | — | | | | | | — | | |
Linda B. Abraham
|
| | | | — | | | | | | — | | |
Sarah M. Kauss
|
| | | | — | | | | | | — | | |
Kimberly H. Sheehy
|
| | | | — | | | | | | — | | |
All Directors and Executive Officers as a Group (14 Individuals)(7)
|
| | | | 50,068,132 | | | | | | 40.4% | | |
| | |
Securities Beneficially
Owned Prior to this Offering |
| |
Securities to be
Sold in this Offering |
| |
Securities Beneficially
Owned After this Offering |
| |||||||||||||||||||||||||||||||||||||||
Selling Securityholder
|
| |
Shares of
Class A Common Stock |
| |
Private
Placement Warrants |
| |
Shares of
Class A Common Stock |
| |
Private
Placement Warrants |
| |
Shares of
Class A Common Stock |
| |
%
|
| |
Private
Placement Warrants |
| |
%
|
| ||||||||||||||||||||||||
Aaron S. Montgomery(1)
|
| | | | 4,854,700 | | | | |
|
—
|
| | | | | 4,854,700 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Acamar Partners Sponsor I LLC(2)
|
| | | | 13,963,854 | | | | | | 6,074,000 | | | | | | 13,963,854 | | | | | | 6,074,000 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
FIAM Target Date Blue Chip Growth Commingled Pool By: Fidelity Institutional Asset Management Trust Company, as Trustee(3)
|
| | | | 96,724 | | | | |
|
—
|
| | | | | 96,724 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
| | |
Securities Beneficially
Owned Prior to this Offering |
| |
Securities to be
Sold in this Offering |
| |
Securities Beneficially
Owned After this Offering |
| |||||||||||||||||||||||||||||||||||||||
Selling Securityholder
|
| |
Shares of
Class A Common Stock |
| |
Private
Placement Warrants |
| |
Shares of
Class A Common Stock |
| |
Private
Placement Warrants |
| |
Shares of
Class A Common Stock |
| |
%
|
| |
Private
Placement Warrants |
| |
%
|
| ||||||||||||||||||||||||
Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund(3)
|
| | | | 2,399,058 | | | | |
|
—
|
| | | | | 2,399,058 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Advisors Series I: Fidelity Advisor Series Growth Opportunities Fund(3)
|
| | | | 97,941 | | | | |
|
—
|
| | | | | 97,941 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Blue Chip Growth Commingled Pool
By: Fidelity Institutional Asset Management Trust Company, as Trustee(3) |
| | | | 33,932 | | | | |
|
—
|
| | | | | 33,932 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Blue Chip Growth Institutional Trust
By: Its manager Fidelity Investments Canada ULC(3) |
| | | | 3,313 | | | | |
|
—
|
| | | | | 3,313 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity NorthStar Fund, by its
manager Fidelity Investments Canada ULC(3) |
| | | | 116,677 | | | | |
|
—
|
| | | | | 116,677 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Securities Fund: Fidelity Blue Chip Growth Fund(3)
|
| | | | 1,101,428 | | | | |
|
—
|
| | | | | 1,101,428 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund(3)
|
| | | | 120,038 | | | | |
|
—
|
| | | | | 120,038 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Securities Fund: Fidelity Flex Large Cap Growth Fund(3)
|
| | | | 1,992 | | | | |
|
—
|
| | | | | 1,992 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund(3)
|
| | | | 142,573 | | | | |
|
—
|
| | | | | 142,573 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity Select Portfolios: Select
Automotive Portfolio(3) |
| | | | 13,786 | | | | |
|
—
|
| | | | | 13,786 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Fidelity U.S. Growth Opportunities Investment Trust(3)
|
| | | | 21,198 | | | | |
|
—
|
| | | | | 21,198 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
G. Richard Wagoner, Jr.(4)
|
| | | | 20,000 | | | | |
|
—
|
| | | | | 20,000 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
HBK Master Fund L.P.(5)
|
| | | | 500,000 | | | | |
|
—
|
| | | | | 500,000 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Jane Street Global Trading, LLC(6)
|
| | | | 1,001,119 | | | | |
|
—
|
| | | | | 1,000,000 | | | | |
|
—
|
| | | | | 1,119 | | | | |
|
*
|
| | | |
|
—
|
| | | |
|
—
|
| |
KAR Auction Services, Inc.(7)
|
| | | | 7,888,275 | | | | |
|
—
|
| | | | | 7,888,275 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Lugard Road Capital Master Fund, LP(8)
|
| | | | 477,230 | | | | |
|
—
|
| | | | | 477,230 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Luxor Capital Partners, LP(9)
|
| | | | 470,276 | | | | |
|
—
|
| | | | | 470,276 | | | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| | | |
|
—
|
| |
Redemption Date
(period to expiration of warrants) |
| |
Fair Market Value of 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 | | |
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, 2020, 2019 and
2018 |
| | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-9 | | |
| Acamar Partners Acquisition Corp. Audited Financial Statements | | | | | | | |
|
Audited Consolidated Financial Statements for the Years Ended December 31, 2020 and 2019 and for each of the two years in the period ended December 31, 2020
|
| | | | | | |
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| | | | | F-39 | | | |
| | | | | F-40 | | | |
| | | | | F-41 | | | |
| | | | | F-42 | | | |
| Acamar Partners Acquisition Corp. Unaudited Combined Financial Information | | | | | | | |
| | | | | F-58 | | | |
| | | | | F-63 | | |
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,208 | | | | | $ | 3,214 | | |
Restricted cash
|
| | | | 605 | | | | | | 888 | | |
Marketable securities – at fair value
|
| | | | 1,032 | | | | | | — | | |
Accounts receivable, net
|
| | | | 4,132 | | | | | | 3,256 | | |
Inventories
|
| | | | 11,202 | | | | | | 7,625 | | |
Other current assets
|
| | | | 6,679 | | | | | | 234 | | |
Total Current Assets
|
| | |
|
25,858
|
| | | |
|
15,217
|
| |
Property and equipment, net
|
| | | | 1,868 | | | | | | 631 | | |
Lease vehicles, net
|
| | | | 173 | | | | | | 444 | | |
Other assets
|
| | | | 299 | | | | | | 343 | | |
Total Assets
|
| | | $ | 28,198 | | | | | $ | 16,635 | | |
Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Long-term debt, current
|
| | | $ | 6,370 | | | | | $ | 2,825 | | |
Floor plan notes payable
|
| | | | 6,039 | | | | | | 6,739 | | |
Accounts payable
|
| | | | 6,283 | | | | | | 2,134 | | |
Accrued transaction expenses
|
| | | | 6,052 | | | | | | — | | |
Accrued expenses
|
| | | | 3,563 | | | | | | 1,576 | | |
Accrued expenses – related party
|
| | | | 5,082 | | | | | | 3,102 | | |
Other current liabilities
|
| | | | 256 | | | | | | 434 | | |
Total Current Liabilities
|
| | |
|
33,645
|
| | | |
|
16,810
|
| |
Long-term debt, less current portion
|
| | | | 2,999 | | | | | | — | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | 2,832 | | | | | | 3,755 | | |
Other liabilities
|
| | | | 1,959 | | | | | | 931 | | |
Total Liabilities
|
| | |
|
41,435
|
| | | |
|
21,496
|
| |
Commitments and Contingencies (Note 17)
|
| | | | — | | | | | | — | | |
Redeemable Convertible Preferred Stock: | | | | | | | | | | | | | |
Series A Preferred Stock $0.001 stated value; authorized 3,052,127 shares; issued and
outstanding 2,034,751 shares; aggregate liquidation preference of approximately $37,114 and $34,300 as of December 31, 2020 and 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
|
| | | | 4,721 | | | | | | 6,560 | | |
Accumulated deficit
|
| | | | (34,037) | | | | | | (27,485) | | |
Accumulated other comprehensive income
|
| | | | 15 | | | | | | — | | |
Treasury stock, $0.001 par value; 152,592 shares
|
| | | | (1,500) | | | | | | (1,500) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | (30,797) | | | | | | (22,421) | | |
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
|
| | | $ | 28,198 | | | | | $ | 16,635 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Revenues: | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 104,253 | | | | | $ | 90,382 | | | | | $ | 53,448 | | |
Wholesale vehicle sales
|
| | | | 9,984 | | | | | | 8,454 | | | | | | 3,153 | | |
Finance and insurance, net
|
| | | | 3,898 | | | | | | 3,117 | | | | | | 1,608 | | |
Lease income, net
|
| | | | 490 | | | | | | 533 | | | | | | 142 | | |
Total Revenues
|
| | | | 118,625 | | | | | | 102,486 | | | | | | 58,351 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 107,369 | | | | | | 93,780 | | | | | | 52,708 | | |
Gross Profit
|
| | | | 11,256 | | | | | | 8,706 | | | | | | 5,643 | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 17,552 | | | | | | 18,305 | | | | | | 11,661 | | |
Depreciation expense
|
| | | | 341 | | | | | | 504 | | | | | | 338 | | |
Management fee expense – related party
|
| | | | 215 | | | | | | 250 | | | | | | 250 | | |
Total Operating Expenses
|
| | |
|
18,108
|
| | | |
|
19,059
|
| | | |
|
12,249
|
| |
Loss from Operations
|
| | | | (6,852) | | | | | | (10,353) | | | | | | (6,606) | | |
Interest Expense
|
| | | | 518 | | | | | | 651 | | | | | | 466 | | |
Other Income (Expense), net | | | | | | | | | | | | | | | | | | | |
Management fee income – related party
|
| | | | — | | | | | | — | | | | | | 127 | | |
Change in fair value of warrants liability
|
| | | | (14) | | | | | | 24 | | | | | | (2) | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | 923 | | | | | | (1,396) | | | | | | (272) | | |
Other income (expense)
|
| | | | (81) | | | | | | (291) | | | | | | 662 | | |
Total Other Income (Expense), net
|
| | | | 828 | | | | | | (1,663) | | | | | | 515 | | |
Loss Before Income Tax Expense
|
| | | | (6,542) | | | | | | (12,667) | | | | | | (6,557) | | |
Income Tax Expense
|
| | | | 10 | | | | | | 11 | | | | | | 3 | | |
Net Loss
|
| | | $ | (6,552) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
Redeemable convertible preferred stock dividends (undeclared and
cumulative) |
| | | | (1,884) | | | | | | (1,579) | | | | | | (1,014) | | |
Net loss attributable to common stockholders
|
| | | $ | (8,436) | | | | | $ | (14,257) | | | | | $ | (7,574) | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (2.27) | | | | | $ | (3.84) | | | | | $ | (2.04) | | |
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 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss
|
| | | $ | (6,552) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
Other comprehensive income, net of tax: | | | | | | | | | | | | | | | | | | | |
Unrealized gains on marketable securities arising during the period
|
| | | | 16 | | | | | | — | | | | | | — | | |
Tax effect
|
| | | | — | | | | | | — | | | | | | — | | |
Unrealized gains on marketable securities arising during the period, net
of tax |
| | | | 16 | | | | | | — | | | | | | — | | |
Reclassification adjustment for realized losses
|
| | | | (1) | | | | | | — | | | | | | — | | |
Tax effect
|
| | | | — | | | | | | — | | | | | | — | | |
Reclassification adjustment for realized losses, net of tax
|
| | | | (1) | | | | | | — | | | | | | — | | |
Other Comprehensive Income, net of tax
|
| | | | 15 | | | | | | — | | | | | | — | | |
Total Comprehensive Income
|
| | | $ | (6,537) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
| | |
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 January 1, 2018
|
| | | | 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 expense
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 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 expense
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 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) | | | | ||
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,552) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,552) | | | | ||
Other comprehensive income, net of
tax |
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | — | | | | | | 15 | | | | | |
Accrued dividends on redeemable convertible preferred stock
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (1,884) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,884) | | | | ||
Stock-based compensation expense
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 45 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45 | | | | ||
Balance December 31, 2020
|
| | | | 2,034,751 | | | | | $ | 17,560 | | | | | | | 3,869,118 | | | | | $ | 4 | | | | | $ | 4,721 | | | | | $ | (34,037) | | | | | $ | 15 | | | | | | (152,592) | | | | | $ | (1,500) | | | | | $ | (30,797) | | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Cash Flow from Operating Activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (6,552) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
Adjustments to reconcile net loss to net cash used in operating activities | | | | | | | | | | | | | | | | | | | |
Depreciation – property and equipment
|
| | | | 195 | | | | | | 260 | | | | | | 253 | | |
Depreciation – lease vehicles
|
| | | | 146 | | | | | | 244 | | | | | | 85 | | |
Loss on disposition of property and equipment
|
| | | | — | | | | | | 321 | | | | | | — | | |
Gain on sale of lease vehicles
|
| | | | — | | | | | | — | | | | | | (16) | | |
Provision for doubtful accounts
|
| | | | 40 | | | | | | (14) | | | | | | (30) | | |
Share-based compensation expense
|
| | | | 45 | | | | | | 113 | | | | | | 151 | | |
Gain on marketable securities
|
| | | | (36) | | | | | | — | | | | | | — | | |
Change in fair value of warrants liability
|
| | | | 14 | | | | | | (24) | | | | | | 2 | | |
Amortization of debt issuance costs
|
| | | | 14 | | | | | | — | | | | | | — | | |
Amortization of warrant liability
|
| | | | 11 | | | | | | — | | | | | | — | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | (923) | | | | | | 1,396 | | | | | | 272 | | |
Other
|
| | | | — | | | | | | — | | | | | | (599) | | |
Change in Operating Assets and Liabilities:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (916) | | | | | | (830) | | | | | | (706) | | |
Inventories
|
| | | | (3,333) | | | | | | 2,883 | | | | | | (4,810) | | |
Other current assets
|
| | | | (6,445) | | | | | | (6) | | | | | | 48 | | |
Other assets
|
| | | | 44 | | | | | | (38) | | | | | | (164) | | |
Accounts payable
|
| | | | 4,149 | | | | | | 1,392 | | | | | | 223 | | |
Accrued expenses and transaction expenses
|
| | | | 8,039 | | | | | | 525 | | | | | | 133 | | |
Accrued expenses – related party
|
| | | | 96 | | | | | | 172 | | | | | | (9) | | |
Other current liabilities
|
| | | | (178) | | | | | | 229 | | | | | | 20 | | |
Other liabilities
|
| | | | 998 | | | | | | 582 | | | | | | (54) | | |
Net Cash Used in Operating Activities
|
| | | | (4,592) | | | | | | (5,473) | | | | | | (11,761) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | | | | | | | |
Cash related to consolidation of Orange Grove
|
| | | | — | | | | | | — | | | | | | 5 | | |
Purchase of property and equipment
|
| | | | (154) | | | | | | (235) | | | | | | (474) | | |
Proceeds from sale of lease vehicles
|
| | | | — | | | | | | — | | | | | | 119 | | |
Purchase of lease vehicles
|
| | | | (92) | | | | | | (252) | | | | | | (12) | | |
Purchase of marketable securities
|
| | | | (1,049) | | | | | | — | | | | | | — | | |
Proceeds from sales of marketable securities
|
| | | | 68 | | | | | | — | | | | | | — | | |
Net Cash Used in Investing Activities
|
| | | | (1,227) | | | | | | (487) | | | | | | (362) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | | | | | | | |
Issuance of redeemable convertible preferred stock, net
|
| | | | — | | | | | | 7,988 | | | | | | — | | |
Payments made on long-term debt
|
| | | | (9) | | | | | | (8) | | | | | | (4) | | |
Borrowings on long-term debt
|
| | | | 5,249 | | | | | | 3,000 | | | | | | — | | |
Payments of debt issuance costs
|
| | | | (10) | | | | | | (112) | | | | | | — | | |
Payments on floor plan notes payable
|
| | | | (24,948) | | | | | | (41,711) | | | | | | (24,567) | | |
Borrowings on floor plan notes payable
|
| | | | 24,248 | | | | | | 39,753 | | | | | | 29,171 | | |
Payments made on promissory note
|
| | | | — | | | | | | (418) | | | | | | (97) | | |
Net Cash Provided by Financing Activities
|
| | | | 4,530 | | | | | | 8,492 | | | | | | 4,503 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net Change in Cash and Cash Equivalents and Restricted Cash
|
| | | | (1,289) | | | | | | 2,532 | | | | | | (7,620) | | |
Cash and cash equivalents and restricted cash, beginning
|
| | | | 4,102 | | | | | | 1,570 | | | | | | 9,190 | | |
Cash and cash equivalents and restricted cash, ending
|
| | | $ | 2,813 | | | | | $ | 4,102 | | | | | $ | 1,570 | | |
Supplemental Disclosure of Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash paid for interest
|
| | | $ | 346 | | | | | $ | 684 | | | | | $ | 436 | | |
Supplementary Schedule of Non-cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property under capital lease obligations
|
| | | $ | 1,305 | | | | | $ | — | | | | | $ | — | | |
Transfer from property and equipment to inventory
|
| | | $ | 27 | | | | | $ | 53 | | | | | $ | 26 | | |
Transfer from lease vehicles to inventory
|
| | | $ | 217 | | | | | $ | 295 | | | | | $ | — | | |
Redeemable convertible preferred stock distributions accrued
|
| | | $ | 1,884 | | | | | $ | 1,579 | | | | | $ | 1,014 | | |
Purchase of property and equipment with long-term debt
|
| | | $ | — | | | | | $ | — | | | | | $ | 21 | | |
Promissory note based on consolidation of Orange Grove
|
| | | $ | — | | | | | $ | — | | | | | $ | 515 | | |
Issuance of common stock warrants
|
| | | $ | 15 | | | | | $ | 72 | | | | | $ | — | | |
Settlement of redeemable convertible preferred stock tranche obligation
|
| | | $ | — | | | | | $ | (902) | | | | | $ | — | | |
| Leasehold Improvements | | | Lesser of 15 years or underlying lease terms | |
| Equipment, Furniture and Fixtures | | | 1 – 5 years | |
| Corporate Vehicles | | | 5 years | |
| | |
2020
|
| |||||||||||||||
| | |
Vehicle Sales
|
| |
Fleet
Management |
| |
Total
|
| |||||||||
Retail vehicle sales
|
| | | $ | 104,253 | | | | | $ | — | | | | | $ | 104,253 | | |
Wholesale vehicle sales
|
| | | | 9,984 | | | | | | — | | | | | | 9,984 | | |
Finance and insurance, net
|
| | | | 3,898 | | | | | | — | | | | | | 3,898 | | |
Lease income, net
|
| | | | — | | | | | | 490 | | | | | | 490 | | |
Total Revenues
|
| | | $ | 118,135 | | | | | $ | 490 | | | | | $ | 118,625 | | |
| | |
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 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Retail vehicles: | | | | | | | | | | | | | | | | | | | |
Retail vehicle sales
|
| | | $ | 104,253 | | | | | $ | 90,382 | | | | | $ | 53,448 | | |
Retail vehicle cost of sales
|
| | | | 96,983 | | | | | | 84,534 | | | | | | 48,523 | | |
Gross Profit – Retail Vehicles
|
| | | $ | 7,270 | | | | | $ | 5,848 | | | | | $ | 4,925 | | |
Wholesale vehicles: | | | | | | | | | | | | | | | | | | | |
Wholesale vehicle sales
|
| | | $ | 9,984 | | | | | $ | 8,454 | | | | | $ | 3,153 | | |
Wholesale vehicle cost of sales
|
| | | | 10,386 | | | | | | 9,246 | | | | | | 4,185 | | |
Gross Profit – Wholesale Vehicles
|
| | | $ | (402) | | | | | $ | (792) | | | | | $ | (1,032) | | |
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Estimated
Fair Value |
| ||||||||||||
Fixed Maturity Debt Securities | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasuries
|
| | | $ | 240 | | | | | $ | 6 | | | | | $ | — | | | | | $ | 246 | | |
Corporates
|
| | | | 261 | | | | | | 5 | | | | | | (1) | | | | | | 265 | | |
U.S. states, territories, and political subdivisions
|
| | | | 141 | | | | | | 5 | | | | | | — | | | | | | 146 | | |
Total Fixed Maturity Debt Securities
|
| | | $ | 642 | | | | | $ | 16 | | | | | $ | (1) | | | | | $ | 657 | | |
| | |
Amortized Cost
|
| |
Estimated
Fair Value |
| ||||||
Due in one year or less
|
| | | $ | 77 | | | | | $ | 78 | | |
Due after one year through five years
|
| | | | 379 | | | | | | 388 | | |
Due after five years through ten years
|
| | | | 186 | | | | | | 191 | | |
Total | | | | $ | 642 | | | | | $ | 657 | | |
| | |
Less Than 12 Months
|
| |
12 Months or more
|
| |
Total
|
| |||||||||||||||||||||||||||
| | |
Estimated
Fair Value |
| |
Unrealized
Losses |
| |
Estimated
Fair Value |
| |
Unrealized
Losses |
| |
Estimated
Fair Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
Fixed maturity debt securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Bonds
|
| | | $ | 39 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 39 | | | | | $ | (1) | | |
Total Fixed Maturity Debt Securities
|
| | | $ | 39 | | | | | $ | (1) | | | | | $ | — | | | | | $ | — | | | | | $ | 39 | | | | | $ | (1) | | |
| | |
Cost
|
| |
Estimated
Fair Value |
| ||||||
Equity securities
|
| | | $ | 335 | | | | | $ | 375 | | |
| | |
Proceeds
|
| |
Gross
Realized Gains |
| |
Gross
Realized Losses |
| |
Net
Realized (Losses) |
| | ||||||||||||||
Fixed maturity debt securities
|
| | | $ | 18 | | | | |
$
|
—
|
| | | |
$
|
—
|
| | | |
$
|
—
|
| | | ||
Equity securities
|
| | | | 50 | | | | | | 1 | | | | | | (2) | | | | | | (1) | | | | | |
Total Marketable Securities
|
| | | $ | 68 | | | | | $ | 1 | | | | | $ | (2) | | | | | $ | (1) | | | |
| | |
2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 405 | | | | | $ | — | | | | | $ | — | | | | | $ | 405 | | |
Equity securities
|
| | | | 375 | | | | | | — | | | | |
|
—
|
| | | | | 375 | | |
Fixed maturity debt securities
|
| | | | 246 | | | | | | 411 | | | | |
|
—
|
| | | | | 657 | | |
Total Assets:
|
| | | | 1,026 | | | | | | 411 | | | | | | — | | | | | | 1,437 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | — | | | | | | — | | | | | | 2,832 | | | | | | 2,832 | | |
Stock warrants liability
|
| | | | — | | | | | | — | | | | | | 144 | | | | | | 144 | | |
Total Liabilities:
|
| | | $ | — | | | | | $ | — | | | | | $ | 2,976 | | | | | $ | 2,976 | | |
| | |
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 | | |
Year-ended December 31, 2020
|
| |
January 1,
|
| |
Issuances
|
| |
Settlements
|
| |
Change in
Fair Value |
| |
December 31,
|
| |||||||||||||||
Redeemable convertible preferred stock tranche obligation
|
| | | $ | 3,755 | | | | | $ | — | | | | | $ | — | | | | | $ | (923) | | | | | $ | 2,832 | | |
Stock warrants liability
|
| | | | 115 | | | | | | 15 | | | | | | — | | | | | | 14 | | | | | | 144 | | |
Total | | | | $ | 3,870 | | | | | $ | 15 | | | | | $ | — | | | | | $ | (909) | | | | | $ | 2,976 | | |
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 | | | |
| | |
2020
|
| |
2019
|
| ||||||
Expected volatility
|
| | | | 65.00% | | | | | | 45.00% | | |
Expected dividend yield
|
| | | | 0.00% | | | | | | 0.00% | | |
Expected term (in years)
|
| |
4 years
|
| |
5 years
|
| ||||||
Risk-free interest rate
|
| | | | 0.27% | | | | | | 1.69% | | |
Marketability discount
|
| | | | 60.00% | | | | | | 50.00% | | |
| | |
2020
|
| |
2019
|
| | ||||||||
Contracts in transit
|
| | | $ | 3,321 | | | | | $ | 2,645 | | | | ||
Trade
|
| | | | 240 | | | | | | 202 | | | | ||
Finance commission
|
| | | | 132 | | | | | | 87 | | | | ||
Other
|
| | | | 506 | | | | | | 349 | | | | ||
Total
|
| | | | 4,199 | | | | | | 3,283 | | | | ||
Allowance for doubtful accounts
|
| | | | (67) | | | | | | (27) | | | | | |
Total Accounts Receivable, net
|
| | | $ | 4,132 | | | | | $ | 3,256 | | | |
| | |
2020
|
| |
2019
|
| ||||||
Used vehicles
|
| | | $ | 11,202 | | | | | $ | 7,592 | | |
Parts
|
| | | | — | | | | | | 33 | | |
Total | | | | $ | 11,202 | | | | | $ | 7,625 | | |
| | |
2020
|
| |
2019
|
| ||||||
Capital lease asset building
|
| | | $ | 1,305 | | | | | $ | — | | |
Leasehold improvements
|
| | | | 702 | | | | | | 688 | | |
Furniture, fixtures, and equipment
|
| | | | 760 | | | | | | 715 | | |
Corporate vehicles
|
| | | | 143 | | | | | | 104 | | |
Total property and equipment
|
| | | | 2,910 | | | | | | 1,507 | | |
Less: accumulated depreciation
|
| | | | (1,042) | | | | | | (876) | | |
Property and Equipment, net
|
| | | $ | 1,868 | | | | | $ | 631 | | |
| | |
2020
|
| |
2019
|
| ||||||
Vehicles
|
| | | $ | 629 | | | | | $ | 1,083 | | |
Less: accumulated depreciation
|
| | | | (456) | | | | | | (639) | | |
Total Lease Vehicles, net
|
| | | $ | 173 | | | | | $ | 444 | | |
Year
|
| |
Minimum Rental
Receipts Under Operating Leases |
| |||
2021
|
| | | $ | 37 | | |
2022
|
| | | | 24 | | |
2023
|
| | | | 2 | | |
Total | | | | $ | 63 | | |
| | |
2020
|
| |
2019
|
| ||||||
Other Current Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 36 | | | | | $ | 13 | | |
Deferred acquisition costs
|
| | | | 72 | | | | | | 32 | | |
Prepaid expenses
|
| | | | 679 | | | | | | 189 | | |
Stock issuance costs
|
| | | | 5,892 | | | | | | — | | |
Total Other Current Assets
|
| | | $ | 6,679 | | | | | $ | 234 | | |
Other Assets: | | | | | | | | | | | | | |
Lease receivable, net
|
| | | $ | 16 | | | | | $ | 38 | | |
Deferred acquisition costs
|
| | | | 48 | | | | | | 50 | | |
Security deposits
|
| | | | 235 | | | | | | 255 | | |
Total Other Assets
|
| | | $ | 299 | | | | | $ | 343 | | |
| | |
2020
|
| |
2019
|
| ||||||
Beginning
|
| | | $ | 82 | | | | | $ | 22 | | |
Written
|
| | | | 173 | | | | | | 93 | | |
Amortized
|
| | | | (135) | | | | | | (33) | | |
Ending
|
| | | | 120 | | | | | | 82 | | |
Less: current portion
|
| | | | 72 | | | | | | 32 | | |
Non-current
|
| | | | 48 | | | | | | 50 | | |
Total Deferred Acquisition Costs
|
| | | $ | 120 | | | | | $ | 82 | | |
| | |
2020
|
| |
2019
|
| ||||||
Term note payable
|
| | | $ | — | | | | | $ | 9 | | |
Capital lease obligation
|
| | | | 1,305 | | | | | | — | | |
Promissory note
|
| | | | 2,990 | | | | | | | | |
Convertible notes payable, net
|
| | | | 3,325 | | | | | | 2,816 | | |
Paycheck Protection Program loan
|
| | | | 1,749 | | | | | | | | |
| | | | | 9,369 | | | | | | 2,825 | | |
Current portion of long-term debt
|
| | | | (6,370) | | | | | | (2,825) | | |
Long-term Debt
|
| | | $ | 2,999 | | | | | $ | — | | |
|
Maturity
|
| |
4 years
|
|
|
Risk-free interest rate
|
| |
0.27%
|
|
|
Volatility
|
| |
85.00 %
|
|
|
Dividend yield
|
| |
0.00%
|
|
|
Weighted average fair value per common share
|
| |
1.89
|
|
| | |
2020
|
| |
2019
|
| ||||||
Stock warrants outstanding, January 1
|
| | | | 68,581 | | | | | | 23,460 | | |
Stock warrants issued with convertible notes payable
|
| | | | 7,676 | | | | | | 45,121 | | |
Stock warrants cancelled
|
| | | | — | | | | | | — | | |
Stock warrants exercised
|
| | | | — | | | | | | — | | |
Stock warrants outstanding, December 31
|
| | | | 76,257 | | | | | | 68,581 | | |
| | |
2020
|
| |
2019
|
| ||||||
License and title fees
|
| | | $ | 785 | | | | | $ | 399 | | |
Payroll and bonuses
|
| | | | 837 | | | | | | 388 | | |
Deferred rent
|
| | | | 199 | | | | | | 300 | | |
Other accrued expenses
|
| | | | 1,742 | | | | | | 489 | | |
Total Accrued Expenses
|
| | | $ | 3,563 | | | | | $ | 1,576 | | |
| | |
2020
|
| |
2019
|
| ||||||
Other Liabilities, Current | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | $ | 257 | | | | | $ | 434 | | |
Other Liabilities | | | | | | | | | | | | | |
Unearned insurance premiums
|
| | | | 1,680 | | | | | | 719 | | |
Other long-term liabilities
|
| | | | 135 | | | | | | 97 | | |
Stock warrants liability
|
| | | | 144 | | | | | | 115 | | |
Other Liabilities, Long-term
|
| | | $ | 1,959 | | | | | $ | 931 | | |
| | |
Operating
Leases |
| |
Capital Leases
|
| ||||||
2021
|
| | | $ | 2,303 | | | | | $ | 139 | | |
2022
|
| | | | 2,372 | | | | | | 183 | | |
2023
|
| | | | 2,209 | | | | | | 187 | | |
2024
|
| | | | 1,216 | | | | | | 190 | | |
2025
|
| | | | 993 | | | | | | 194 | | |
Thereafter
|
| | | | 511 | | | | | | 1,078 | | |
Total Minimum Lease Payments
|
| | | $ | 9,604 | | | | | $ | 1,971 | | |
Less: amount representing interest
|
| | | | | | | | | | (666) | | |
Present value of minimum lease payments
|
| | | | | | | | | | 1,305 | | |
Less: current obligation
|
| | | | | | | | | | (55) | | |
Long-term obligations under capital lease
|
| | | | | | | | | $ | 1,250 | | |
| | |
Payments
Due to Third Parties |
| |
Future
Receipts |
| ||||||
2021
|
| | | $ | 1,538 | | | | | $ | 1,862 | | |
2022
|
| | | | 1,024 | | | | | | 1,236 | | |
2023
|
| | | | 596 | | | | | | 711 | | |
2024
|
| | | | 194 | | | | | | 233 | | |
2025
|
| | | | 2 | | | | | | 3 | | |
Total
|
| | | $ | 3,354 | | | | | $ | 4,045 | | |
| | |
Number of
Stock Options |
| |
Weighted Averaged
Exercise Price |
| ||||||
Balance (January 1, 2018)
|
| | | | 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 | | |
Granted
|
| | | | — | | | | | | — | | |
Forfeited
|
| | | | — | | | | | | — | | |
Balance (December 31, 2020)
|
| | | | 154,150 | | | | | | 6.03 | | |
Vested (as of December 31, 2020)
|
| | | | 146,613 | | | | | $ | 5.99 | | |
| | |
Number of
Options |
| |
Weighted Average
Remaining Contractual Life |
| |
Weighted Average
Exercise Price |
| |||||||||
Outstanding
|
| | | | 154,150 | | | | | | 1.67 years | | | | | $ | 6.03 | | |
Exercisable
|
| | | | 146,613 | | | | | | 1.67 years | | | | | $ | 5.99 | | |
| | |
Number of
Stock Options |
| |
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 | | |
Granted
|
| | | | 109,500 | | | | | $ | 9.82 | | |
Forfeited
|
| | | | — | | | | | $ | 9.82 | | |
Balance (December 31, 2019)
|
| | | | 388,676 | | | | | $ | 9.82 | | |
|
Expected volatility
|
| |
81.00%
|
|
|
Expected dividend yield
|
| |
—%
|
|
|
Expected term (in years)
|
| |
5 years
|
|
|
Risk-free interest rate
|
| |
0.37%
|
|
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current Income Tax Expense: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State and local
|
| | | | 10 | | | | | | 11 | | | | | | 3 | | |
Total Current Income Tax Expense
|
| | | | 10 | | | | | | 11 | | | | | | 3 | | |
Deferred Income Tax Expense: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | | | | | — | | |
State and local
|
| | | | — | | | | | | — | | | | | | — | | |
Total Income Tax Expense
|
| | | $ | 10 | | | | | $ | 11 | | | | | $ | 3 | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred Tax Assets: | | | | | | | | | | | | | |
Net operating losses
|
| | | $ | 7,042 | | | | | $ | 5,881 | | |
Accrued expenses
|
| | | | 109 | | | | | | | | |
Unearned premiums
|
| | | | 466 | | | | | | | | |
Contract expense
|
| | | | 332 | | | | | | 262 | | |
Intangible assets
|
| | | | 204 | | | | | | | | |
Other
|
| | | | 406 | | | | | | 809 | | |
Total deferred tax assets
|
| | | | 8,559 | | | | | | 6,952 | | |
Less: valuation allowance
|
| | | | (8,559) | | | | | | (6,910) | | |
Net Deferred Tax Assets
|
| | | | — | | | | | | 42 | | |
Deferred Tax Liabilities | | | | | | | | | | | | | |
Fixed assets
|
| | | | — | | | | | | (42) | | |
Total deferred tax liabilities
|
| | | | — | | | | | | (42) | | |
Net Deferred Tax Liabilities
|
| | | | — | | | | | | (42) | | |
Net Deferred Tax Assets/Liabilities
|
| | | $ | — | | | | | $ | — | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
January 1, | | | | $ | 6,910 | | | | | $ | 3,986 | | | | | $ | 2,008 | | |
Additions – Charged
|
| | | | 1,649 | | | | | | 2,924 | | | | | | 1,731 | | |
Deductions – Charged
|
| | | | — | | | | | | — | | | | | | — | | |
Other
|
| | | | — | | | | | | — | | | | | | 247 | | |
December 31, | | | | $ | 8,559 | | | | | $ | 6,910 | | | | | $ | 3,986 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Loss Before Income Tax Expense
|
| | | $ | (6,542) | | | | | $ | (12,667) | | | | | $ | (6,557) | | |
Income tax benefit at federal statutory rates
|
| | | | (1,372) | | | | | | (2,660) | | | | | | (1,377) | | |
State and local income taxes
|
| | | | (79) | | | | | | (471) | | | | | | (238) | | |
Investment remeasurement
|
| | | | — | | | | | | — | | | | | | (126) | | |
Valuation allowances
|
| | | | 1,649 | | | | | | 2,924 | | | | | | 1,731 | | |
Change in fair value of redeemable convertible preferred stock tranche obligation
|
| | | | (194) | | | | | | 293 | | | | | | 57 | | |
Other
|
| | | | 6 | | | | | | (75) | | | | | | (44) | | |
Total Income Tax Expense
|
| | | $ | 10 | | | | | $ | 11 | | | | | $ | 3 | | |
Effective Tax Rate
|
| | | | (0.15)% | | | | | | (0.09)% | | | | | | (0.05)% | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Numerator: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (6,552) | | | | | $ | (12,678) | | | | | $ | (6,560) | | |
Redeemable Convertible Preferred Stock dividends (undeclared and cumulative)
|
| | | | (1,884) | | | | | | (1,579) | | | | | | (1,014) | | |
Net loss attributable to common stockholders
|
| | | | (8,436) | | | | | | (14,257) | | | | | | (7,574) | | |
Denominator: | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 3,716,526 | | | | | | 3,716,526 | | | | | | 3,716,526 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | $ | (2.27) | | | | | $ | (3.84) | | | | | $ | (2.04) | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Redeemable Convertible Preferred Stock outstanding
|
| | | | 2,034,751 | | | | | | 2,034,751 | | | | | | 1,220,851 | | |
Convertible notes payable
|
| | | | 348,910 | | | | | | 282,211 | | | | | | — | | |
Stock warrants
|
| | | | 76,257 | | | | | | 68,581 | | | | | | 23,460 | | |
Stock options outstanding to purchase shares of common stock
|
| | | | 542,826 | | | | | | 433,326 | | | | | | 416,702 | | |
Total | | | | | 3,002,744 | | | | | | 2,818,869 | | | | | | 1,661,013 | | |
| | |
Total purchases from vendor to total
purchases for the year ended December 31, |
| |||||||||||||||
Vendor
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Vendor A
|
| | | | 33% | | | | | | —% | | | | | | —% | | |
Vendor B
|
| | | | 13% | | | | | | 12% | | | | | | —% | | |
| | | | ||||||||||
Vendor
|
| |
2020
|
| |
2019
|
| ||||||
Vendor A
|
| | | $ | 2,918 | | | | | $ | — | | |
Vendor B
|
| | | $ | 368 | | | | | $ | 257— | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 60,955 | | | | | $ | 1,600,833 | | |
Prepaid income taxes
|
| | | | 156,089 | | | | | | 120,579 | | |
Prepaid expenses
|
| | | | 8,458 | | | | | | 96,208 | | |
Total Current Assets
|
| | | | 225,502 | | | | | | 1,817,620 | | |
Cash and marketable securities held in Trust Account
|
| | | | 310,899,678 | | | | | | 309,840,375 | | |
TOTAL ASSETS
|
| | | $ | 311,125,180 | | | | | $ | 311,657,995 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities – Accrued expenses
|
| | | $ | 3,224,685 | | | | | $ | 214,813 | | |
Deferred underwriting fee payable
|
| | | | 10,695,063 | | | | | | 10,695,063 | | |
TOTAL LIABILITIES
|
| | | | 13,919,748 | | | | | | 10,909,876 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, 29,220,543 and 29,574,811 shares as of December 31, 2020 and 2019, respectively (at $10.00 per share)
|
| | | | 292,205,430 | | | | | | 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; 1,336,779 and 982,511 shares issued and outstanding (excluding 29,220,543 and 29,574,811 subject to possible redemption) as of December 31, 2020 and 2019, respectively
|
| | | | 134 | | | | | | 98 | | |
Class B common stock, $0.0001 par value; 15,000,000 shares authorized;
7,639,330 shares issued and outstanding at December 31, 2020 and 2019 |
| | | | 764 | | | | | | 764 | | |
Additional paid-in capital
|
| | | | 5,066,339 | | | | | | 1,523,695 | | |
(Accumulated deficit) Retained earnings
|
| | | | (67,235) | | | | | | 3,475,452 | | |
Total Stockholders’ Equity
|
| | | | 5,000,002 | | | | | | 5,000,009 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 311,125,180 | | | | | $ | 311,657,995 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating costs
|
| | | $ | 5,020,847 | | | | | $ | 932,834 | | |
Loss from operations
|
| | | | (5,020,847) | | | | | | (932,834) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 1,818,650 | | | | | | 5,531,557 | | |
(Loss) income before income taxes
|
| | | | (3,202,197) | | | | | | 4,598,723 | | |
Provision for income taxes
|
| | | | (340,490) | | | | | | (1,120,521) | | |
Net (loss) income
|
| | | $ | (3,542,687) | | | | | $ | 3,478,202 | | |
Weighted average shares outstanding of Class A redeemable common stock
|
| | | | 30,557,322 | | | | | | 30,479,514 | | |
Basic and diluted net income per share, Class A
|
| | | $ | 0.04 | | | | | $ | 0.14 | | |
Weighted average shares outstanding of Class B non-redeemable common stock
|
| | | | 7,639,330 | | | | | | 7,601,435 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.63) | | | | | $ | (0.10) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Accumulated Deficit) |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | 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 | | | | | | — | | | | | | — | | |
Class A 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 | | |
Change in value of Class A common stock subject to possible redemption
|
| | | | 354,268 | | | | | | 36 | | | | | | — | | | | | | — | | | | | | 3,542,644 | | | | | | — | | | | | | 3,542,680 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,542,687) | | | | | | (3,542,687) | | |
Balance – December 31, 2020
|
| | | | 1,336,779 | | | | | $ | 134 | | | | | | 7,639,330 | | | | | $ | 764 | | | | | $ | 5,066,339 | | | | | $ | (67,235) | | | | | $ | 5,000,002 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (3,542,687) | | | | | $ | 3,478,202 | | |
Adjustments to reconcile net (loss) income to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (1,818,650) | | | | | | (5,531,557) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid income taxes
|
| | | | (35,510) | | | | | | (120,579) | | |
Prepaid expenses
|
| | | | 87,750 | | | | | | (96,208) | | |
Accrued expenses
|
| | | | 3,009,872 | | | | | | 214,813 | | |
Net cash used in operating activities
|
| | | | (2,299,225) | | | | | | (2,055,329) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash into Trust Account
|
| | | | — | | | | | | (305,573,220) | | |
Cash withdrawn from Trust Account for franchise and income taxes
|
| | | | 759,347 | | | | | | 1,264,402 | | |
Net cash provided by (used in) investing activities
|
| | | | 759,347 | | | | | | (304,308,818) | | |
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
|
| | | | (1,539,878) | | | | | | 1,588,833 | | |
Cash – Beginning of period
|
| | | | 1,600,833 | | | | | | 12,000 | | |
Cash – End of period
|
| | | $ | 60,955 | | | | | $ | 1,600,833 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 376,000 | | | | | $ | 1,241,100 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of Class A common stock subject to possible redemption
|
| | | $ | — | | | | | $ | 292,267,800 | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (3,542,680) | | | | | $ | 3,480,310 | | |
Deferred underwriting fee payable
|
| | | $ | — | | | | | $ | 10,695,063 | | |
Payment of offering costs through promissory note and advances
|
| | | $ | — | | | | | $ | 114,135 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Redeemable Class A Common Stock | | | | | | | | | | | | | |
Numerator: Earnings allocable to Redeemable Class A Common Stock
|
| | | | | | | | | | | | |
Interest Income
|
| | | $ | 1,818,650 | | | | | $ | 5,531,557 | | |
Income and Franchise Tax
|
| | | | (540,742) | | | | | | (1,321,103) | | |
Net Earnings
|
| | | $ | 1,277,908 | | | | | $ | 4,210,454 | | |
Denominator: Weighted Average Redeemable Class A Common Stock
|
| | | | | | | | | | | | |
Redeemable Class A Common Stock, Basic and Diluted
|
| | | | 30,557,322 | | | | | | 30,479,514 | | |
Earnings/Basic and Diluted Redeemable Class A Common Stock
|
| | | $ | 0.04 | | | | | $ | 0.14 | | |
Non-Redeemable Class A and B Common Stock | | | | | | | | | | | | | |
Numerator: Net (Loss) Income minus Redeemable Net Earnings
|
| | | | | | | | | | | | |
Net (Loss) Income
|
| | | $ | (3,542,687) | | | | | $ | 3,478,202 | | |
Redeemable Net Earnings
|
| | | | (1,277,908) | | | | | | (4,210,454) | | |
Non-Redeemable Net Loss
|
| | | $ | (4,820,595) | | | | | $ | (732,252) | | |
Denominator: Weighted Average Non-Redeemable Class A and B Common
Stock |
| | | | | | | | | | | | |
Non-Redeemable Class A and B Common Stock, Basic and Diluted(1)
|
| | | | 7,639,330 | | | | | | 7,601,435 | | |
Loss/Basic and Diluted Non-Redeemable Class A and B Common Stock
|
| | | $ | (0.63) | | | | | $ | (0.10) | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax asset | | | | | | | | | | | | | |
Organizational costs/Startup expenses
|
| | | $ | 1,166,098 | | | | | $ | 153,773 | | |
Total deferred tax asset
|
| | | | 1,166,098 | | | | | | 153,773 | | |
Valuation allowance
|
| | | | (1,166,098) | | | | | | (153,773) | | |
Deferred tax asset, net of allowance
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Federal | | | | | | | | | | | | | |
Current
|
| | | $ | 340,490 | | | | | $ | 1,120,521 | | |
Deferred
|
| | | | (1,012,325) | | | | | | (153,773) | | |
State | | | | | | | | | | | | | |
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | 1,012,325 | | | | | | 153,773 | | |
Income tax provision
|
| | | $ | 340,490 | | | | | $ | 1,120,521 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | 0.0% | | |
Change in valuation allowance
|
| | | | (31.6)% | | | | | | 3.3% | | |
Income tax provision (benefit)
|
| | | | (10.6)% | | | | | | 24.3% | | |
| | |
Held-To-Maturity
|
| |
Level
|
| |
Amortized
Cost |
| |
Gross
Holding Gain |
| |
Fair Value
|
| ||||||||||||
December 31, 2019
|
| |
U.S. Treasury Securities (Matured on 2/6/2020)
|
| | | | 1 | | | | | $ | 309,688,279 | | | | | $ | 2,018 | | | | | $ | 309,690,297 | | |
| | |
(A)
Former CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,208 | | | | | $ | 61 | | | | | $ | 310,901 | | | | |
|
(1)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 125,000 | | | | |
|
(2)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (10,695) | | | | |
|
(3)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (39,225) | | | | |
|
(4)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (25) | | | | |
|
(5)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (74,726) | | | | |
|
(6)
|
| | | | $ | 313,499 | | |
Restricted cash
|
| | | | 605 | | | | | | — | | | | | | — | | | | | | | | | | | | 605 | | |
Marketable securities
|
| | | | 1,032 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,032 | | |
Accounts receivable, net
|
| | | | 3,833 | | | | | | — | | | | | | — | | | | | | | | | | | | 3,833 | | |
Inventories
|
| | | | 11,202 | | | | | | — | | | | | | — | | | | | | | | | | | | 11,202 | | |
Other current assets
|
| | | | 5,936 | | | | | | 164 | | | | | | — | | | | | | | | | | | | 6,100 | | |
Total current assets
|
| | |
|
24,186
|
| | | |
|
225
|
| | | |
|
311,230
|
| | | | | | | | | |
|
336,271
|
| |
Cash and marketable securities held in trust account
|
| | | | — | | | | | | 310,900 | | | | | | (310,900) | | | | |
|
(1)
|
| | | | | — | | |
Property and equipment, net
|
| | | | 1,868 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,868 | | |
Lease vehicles, net
|
| | | | 173 | | | | | | — | | | | | | — | | | | | | | | | | | | 173 | | |
Other assets
|
| | | | 299 | | | | | | — | | | | | | — | | | | | | | | | | | | 299 | | |
Total assets
|
| | | $ | 27,156 | | | | | $ | 311,125 | | | | | $ | 330 | | | | | | | | | | | $ | 338,611 | | |
Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, current
|
| | | $ | 6,370 | | | | | $ | — | | | | | $ | (5,074) | | | | |
|
(6)
|
| | | | $ | 1,296 | | |
Floor plan notes payable
|
| | | | 6,039 | | | | | | — | | | | | | — | | | | | | | | | | | | 6,039 | | |
Accounts payable
|
| | | | 11,829 | | | | | | — | | | | | | — | | | | | | | | | | | | 11,829 | | |
Accrued expenses
|
| | | | 3,230 | | | | | | 3,225 | | | | | | — | | | | | | | | | | | | 6,455 | | |
Accrued expenses – related party
|
| | | | 5,124 | | | | | | — | | | | | | (4,751) | | | | |
|
(6)
|
| | | | | 373 | | |
Income taxes payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Other current liabilities
|
| | | | 256 | | | | | | — | | | | | | — | | | | | | | | | | | | 256 | | |
Total current liabilities
|
| | |
|
32,848
|
| | | |
|
3,225
|
| | | |
|
(9,825)
|
| | | | | | | | | |
|
26,248
|
| |
Long term debt, less current portion
|
| | | | 2,999 | | | | | | — | | | | | | (2,990) | | | | |
|
(6)
|
| | | | | 9 | | |
Deferred underwriting fee payable
|
| | | | — | | | | | | 10,695 | | | | | | (10,695) | | | | |
|
(3)
|
| | | | | — | | |
Earnout consideration
|
| | | | — | | | | | | — | | | | | | 81,672 | | | | |
|
(8)
|
| | | | | 81,672 | | |
Redeemable convertible preferred stock tranche obligation
|
| | | | 2,832 | | | | | | — | | | | | | (2,832) | | | | |
|
(6)
|
| | | | | — | | |
Other liabilities
|
| | | | 1,959 | | | | | | — | | | | | | (144) | | | | |
|
(6)
|
| | | | | 1,815 | | |
Total liabilities
|
| | |
|
40,638
|
| | | |
|
13,920
|
| | | |
|
55,186
|
| | | | | | | | | |
|
109,744
|
| |
| | |
(A)
Former CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Balance Sheet |
| ||||||||||||
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Redeemable convertible preferred stock
|
| | | | 17,560 | | | | | | — | | | | | | (17,560) | | | | | | (6) | | | | | | — | | |
Redeemable common stock
|
| | | | — | | | | | | 292,205 | | | | | | (292,205) | | | | | | (5) | | | | | | — | | |
Stockholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Common stock
|
| | | | 4 | | | | | | — | | | | | | (4) | | | | |
|
(6)
|
| | | | | — | | |
Class A common stock
|
| | | | — | | | | | | — | | | | | | — | | | | |
|
(1)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 1 | | | | |
|
(2)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 3 | | | | |
|
(5)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 6 | | | | |
|
(6)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 1 | | | | |
|
(7)
|
| | | | | 11 | | |
Class B common stock
|
| | |
|
—
|
| | | |
|
1
|
| | | | | (1) | | | | |
|
(7)
|
| | | | | — | | |
Additional paid-in capital, common stock
|
| | | | 4,721 | | | | | | 5,066 | | | | |
|
—
|
| | | |
|
(1)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 124,999 | | | | |
|
(2)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (3,154) | | | | |
|
(4)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 292,178 | | | | |
|
(5)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (42,943) | | | | |
|
(6)
|
| | | | | 380,867 | | |
Retained earnings (accumulated deficit)
|
| | | | (34,282) | | | | | | (67) | | | | | | 1 | | | | |
|
(1)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (36,070) | | | | |
|
(4)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (0) | | | | |
|
(5)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | (81,672) | | | | |
|
(8)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 66 | | | | |
|
(6)
|
| | | | | (152,025) | | |
Accumulated other comprehensive income
|
| | | | 15 | | | | | | — | | | | | | — | | | | | | | | | | | | 15 | | |
Treasury stock
|
| | | | (1,500) | | | | | | — | | | | | | 1,500 | | | | |
|
(6)
|
| | | | | — | | |
Total stockholders’ equity (deficit)
|
| | |
|
(31,042)
|
| | | |
|
5,000
|
| | | |
|
254,910
|
| | | | | | | | | |
|
228,868
|
| |
Total liabilities, redeemable convertible preferred stock, stockholders’ equity (deficit)
|
| | | $ | 27,156 | | | | | $ | 311,125 | | | | | $ | 331 | | | | | | | | | | | $ | 338,612 | | |
|
|
Redeemable convertible preferred stock liquidation preference(c)(d)
|
| | | $ | (11,844)(*) | | |
|
Cash payment to Former CarLotz equityholders(e)
|
| | | | (33,000) | | |
|
Conversion of Former CarLotz convertible note(g)
|
| | | | 3,325 | | |
|
Cashless exercise of Former CarLotz warrant(g)
|
| | | | 144 | | |
|
Company common stock
|
| | | | (6) | | |
|
Former CarLotz common stock elimination
|
| | | | 4 | | |
|
Retained earnings elimination(h)
|
| | | | (66) | | |
|
Treasury stock elimination(i)
|
| | | | (1,500) | | |
|
Adjustment to Additional paid in capital, common stock
|
| | | $ | (42,943) | | |
|
Cash payment to holder of redeemable convertible preferred stock Less:
|
| | | $ | 36,987 | | |
|
Redeemable convertible preferred stock balance recorded on the balance sheet
|
| | | | (17,560) | | |
|
Redeemable convertible preferred stock tranche obligation recorded on the balance sheet
|
| | | | (2,832) | | |
|
Redeemable convertible preferred stock accrued PIK dividends recorded on the balance sheet
|
| | | | (4,751) | | |
|
Redeemable convertible preferred stock liquidation preference
|
| | | $ | 11,844 | | |
| | |
(A)
Former CarLotz |
| |
(B)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| ||||||||||||
Total revenues
|
| | | $ | 118,625 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 118,625 | | |
Cost of sales
|
| | | | 107,369 | | | | | | — | | | | | | — | | | | | | | | | | | | 107,369 | | |
Gross profit
|
| | |
|
11,256
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | | | | | |
|
11,256
|
| |
Selling, general and administrative expenses
|
| | | | 17,755 | | | | | | 5,021 | | | | | | — | | | | | | | | | | | | 17,755 | | |
| | | | | | | | | | | | | | | | | | | | | |
|
(4)
|
| | | | | 26,069 | | |
Depreciation expense
|
| | | | 341 | | | | | | — | | | | | | — | | | | | | | | | | | | 341 | | |
Management fee – related party
|
| | | | 257 | | | | | | — | | | | | | — | | | | | | | | | | | | 257 | | |
Total loss from operations
|
| | |
|
(7,097)
|
| | | |
|
(5,021)
|
| | | |
|
(3,293)
|
| | | | | | | | | |
|
(15,411)
|
| |
Interest expense
|
| | |
|
518
|
| | | |
|
—
|
| | | |
|
—
|
| | | | | | | | | |
|
518
|
| |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrants liability
|
| | | | (14) | | | | | | — | | | | | | (14) | | | | |
|
(1)
|
| | | | | — | | |
Change in fair value of redeemable convertible
preferred stock tranche obligation |
| | | | 923 | | | | | | — | | | | | | 923 | | | | |
|
(1)
|
| | | | | — | | |
Interest earned on marketable securities
|
| | | | — | | | | | | 1,819 | | | | | | (1,819) | | | | |
|
(2)
|
| | | | | — | | |
Other income (expense)
|
| | | | (81) | | | | | | — | | | | | | — | | | | | | | | | | | | (81) | | |
Total other income (expense), net
|
| | |
|
828
|
| | | |
|
1,819
|
| | | |
|
(2,728)
|
| | | | | | | | | |
|
(81)
|
| |
(Loss) income before income tax expense
|
| | |
|
(6,787)
|
| | | |
|
(3,202)
|
| | | |
|
(6,021)
|
| | | | | | | | | |
|
(16,010)
|
| |
Income tax expense
|
| | |
|
10
|
| | | |
|
341
|
| | | |
|
(341)
|
| | | |
|
(3)
|
| | | |
|
10
|
| |
Net (loss) income
|
| | |
|
(6,797)
|
| | | |
|
(3,543)
|
| | | |
|
(5,680)
|
| | | | | | | | | |
|
(16,020)
|
| |
Redeemable convertible preferred stock dividends
|
| | | | (1,884) | | | | | | — | | | | | | 1,884 | | | | |
|
(1)
|
| | | | | — | | |
Net loss attributable to common stockholders
|
| | | $ | (4,913) | | | | | $ | (3,543) | | | | | $ | (7,564) | | | | | | | | | | | $ | (16,020) | | |
Basic and diluted net income (loss) attributable to
common stockholders per share |
| | | $ | (1.32) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding of common
stock, basic and diluted |
| | | | 3,716,526 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class A
share |
| | | | | | | | | $ | 0.04 | | | | | | | | | | | | | | | | | $ | (0.14) | | |
Weighted average Class A shares outstanding, basic and diluted
|
| | | | | | | | | | 30,557,322 | | | | | | 83,112,738 | | | | |
|
(5)
|
| | | | | 113,670,060 | | |
Basic and diluted net income (loss) per Class B
share |
| | | | | | | | | $ | (0.64) | | | | | | | | | | | | | | | | | | | | |
Weighted average Class B shares outstanding, basic and diluted
|
| | | | | | | | | | 7,639,330 | | | | | | | | | | | | | | | | | | | | |
| | |
(C)
Former CarLotz |
| |
(D)
Acamar Partners |
| |
Pro Forma
Adjustments |
| | | | | | | |
Pro Forma
Income Statement |
| ||||||||||||
Total revenues
|
| | | $ | 102,486 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 102,486 | | |
Cost of sales (exclusive of depreciation)
|
| | | | 93,780 | | | | | | — | | | | | | — | | | | | | | | | | | | 93,780 | | |
Gross profit
|
| | | | 8,706 | | | | | | — | | | | | | — | | | | | | | | | | | | 8,706 | | |
Selling, general and administrative expenses
|
| | | | 18,305 | | | | | | 933 | | | | | | — | | | | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | 4,390 | | | | |
|
(4)
|
| | | | | 23,628 | | |
Depreciation expense
|
| | | | 504 | | | | | | — | | | | | | — | | | | | | | | | | | | 504 | | |
Management fee – related party
|
| | | | 250 | | | | | | — | | | | | | — | | | | | | | | | | | | 250 | | |
Total loss from operations
|
| | | | (10,353) | | | | | | (933) | | | | | | (4,390) | | | | | | | | | | | | (15,676) | | |
Interest expense
|
| | | | 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) | | |
Total other income (expense), net
|
| | | | (1,663) | | | | | | 5,532 | | | | | | (4,160) | | | | | | | | | | | | (291) | | |
(Loss) income before income tax expense
|
| | | | (12,667) | | | | | | 4,599 | | | | | | (8,550) | | | | | | | | | | | | (16,618) | | |
Income tax expense
|
| | | | 11 | | | | | | 1,121 | | | | | | (1,121) | | | | | | (3) | | | | | | 11 | | |
Net (loss) income
|
| | | | (12,678) | | | | | | 3,478 | | | | | | (7,429) | | | | | | | | | | | | (16,629) | | |
Redeemable convertible preferred stock dividends
|
| | | | 1,579 | | | | | | — | | | | | | (1,579) | | | | |
|
(1)
|
| | | | | — | | |
Net income (loss) attributable to common stockholders
|
| | | $ | (14,257) | | | | | $ | 3,478 | | | | | $ | (5,850) | | | | | | | | | | | $ | (16,629) | | |
Basic and diluted net income (loss) attributable to
common stockholders per share |
| | | $ | (3.84) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding of common
stock, basic and diluted |
| | | | 3,716,526 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income (loss) per Class A
share |
| | | | | | | | | $ | 0.14 | | | | | | | | | | | | | | | | | $ | (0.15) | | |
Weighted average Class A shares outstanding, basic and diluted
|
| | | | | | | | | | 30,479,514 | | | | | | 83,135,828 | | | | |
|
(5)
|
| | | | | 113,615,342 | | |
Basic and diluted net income (loss) per Class B
share |
| | | | | | | | | $ | (0.10) | | | | | | | | | | | | | | | | | | | | |
Weighted average Class B shares outstanding, basic and diluted
|
| | | | | | | | | | 7,601,435 | | | | | | | | | | | | | | | | | | | | |
| Weighted average shares calculation, basic and diluted | | | | | | | |
|
Acamar Partners public shares
|
| | | | 30,554,829 | | |
|
Acamar Partners Sponsor shares(a)
|
| | | | 7,639,330 | | |
|
Acamar Partners shares issued to PIPE investors
|
| | | | 12,500,000 | | |
|
Acamar Partners shares issued to Former CarLotz stockholders on the Closing Date(b)
|
| | | | 62,975,901 | | |
|
Weighted average shares outstanding(c)
|
| | | | 113,670,060 | | |
|
Percent of shares owned by Former CarLotz stockholders (excluding shares acquired in the PIPE Investment)(c)
|
| | | | 55.4% | | |
|
Percent of shares owned by Acamar Partners (excluding the Sponsor)(c)
|
| | | | 26.9% | | |
|
Percent of shares owned by PIPE investors(c)
|
| | | | 11.0% | | |
|
Percent of shares owned by the Sponsor (including shares subject to forfeiture and excluding
shares acquired in the PIPE Investment)(c) |
| | | | 6.7% | | |
|
SEC registration fee
|
| | | $ | 89,161.01 | | |
|
FINRA filing fee
|
| | | | 123,086.18 | | |
|
Legal fees and expenses
|
| | | | * | | |
|
Accounting fees and expenses
|
| | | | * | | |
|
Printing expenses
|
| | | | * | | |
|
Transfer agent fees and expenses
|
| | | | * | | |
|
Miscellaneous expenses
|
| | | | * | | |
|
Total
|
| | | $ | * | | |
| | | | | |
Incorporated by reference
|
| |
Filed or
furnished herewith |
| |||||||||
Exhibit
No. |
| |
Exhibit title
|
| |
Form
|
| |
File No.
|
| |
Exhibit
No. |
| |
Filing
date |
| |||
2.1
|
| | | |
8-K
|
| |
001-38818
|
| |
2.1
|
| |
10/22/2020
|
| | | |
| | | | | |
Incorporated by reference
|
| |
Filed or
furnished herewith |
| |||||||||
Exhibit
No. |
| |
Exhibit title
|
| |
Form
|
| |
File No.
|
| |
Exhibit
No. |
| |
Filing
date |
| |||
2.1.1
|
| | | |
8-K
|
| |
001-38818
|
| |
2.1
|
| |
12/16/2020
|
| | | | |
3.1
|
| | | |
S-1
|
| |
333-252993
|
| |
3.1
|
| |
02/11/2021
|
| | | | |
3.2
|
| | | |
8-K
|
| |
001-38818
|
| |
3.2
|
| |
01/27/2021
|
| | | | |
4.1
|
| | | |
8-K
|
| |
001-38818
|
| |
4.1
|
| |
2/26/2019
|
| | | | |
4.2
|
| | | |
S-4/A
|
| |
333-249723
|
| |
4.5
|
| |
12/16/2020
|
| | | | |
4.3
|
| | | |
S-4/A
|
| |
333-249723
|
| |
4.6
|
| |
12/16/2020
|
| | | | |
5.1
|
| | | | | | | | | | | | | | | |
X
|
| |
10.1
|
| | | |
8-K
|
| |
001-38818
|
| |
10.1
|
| |
01/27/2021
|
| | | | |
10.2
|
| | | |
8-K
|
| |
001-38818
|
| |
10.3
|
| |
10/22/2020
|
| | | | |
10.3
|
| | | |
8-K
|
| |
001-38818
|
| |
10.3
|
| |
01/27/2021
|
| | | | |
10.4
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.29
|
| |
12/16/2020
|
| | | | |
10.5
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.15
|
| |
12/16/2020
|
| | | | |
10.6
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.30
|
| |
12/16/2020
|
| | | | |
10.7
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.16
|
| |
12/16/2020
|
| | | | |
10.8
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.31
|
| |
12/16/2020
|
| | | |
| | | | | |
Incorporated by reference
|
| |
Filed or
furnished herewith |
| |||||||||
Exhibit
No. |
| |
Exhibit title
|
| |
Form
|
| |
File No.
|
| |
Exhibit
No. |
| |
Filing
date |
| |||
10.9
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.17
|
| |
12/16/2020
|
| | | | |
10.10
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.22
|
| |
12/16/2020
|
| | | | |
10.11
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.23
|
| |
12/16/2020
|
| | | | |
10.12
|
| | | |
8-K
|
| |
001-38818
|
| |
10.12
|
| |
01/27/2021
|
| | | | |
10.13
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.18
|
| |
12/16/2020
|
| | | | |
10.14
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.19
|
| |
12/16/2020
|
| | | | |
10.15
|
| | | |
8-K
|
| |
001-38818
|
| |
10.15
|
| |
01/27/2021
|
| | | | |
10.16*
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.21
|
| |
12/16/2020
|
| | | | |
10.16.1*
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.21.1
|
| |
12/16/2020
|
| | | | |
10.17
|
| | | |
8-K
|
| |
001-38818
|
| |
10.17
|
| |
01/27/2021
|
| | | | |
10.18
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.25
|
| |
12/16/2020
|
| | | | |
10.18.1
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.25.1
|
| |
12/16/2020
|
| | | | |
10.19
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.26
|
| |
12/16/2020
|
| | | | |
10.20
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.27
|
| |
12/16/2020
|
| | | | |
10.21
|
| | | |
S-4/A
|
| |
333-249723
|
| |
10.28
|
| |
12/16/2020
|
| | | | |
10.22*
|
| | | |
10-K
|
| |
001-38818
|
| |
10.22
|
| |
3/15/2021
|
| |
|
|
| | | | | |
Incorporated by reference
|
| |
Filed or
furnished herewith |
| |||||||||
Exhibit
No. |
| |
Exhibit title
|
| |
Form
|
| |
File No.
|
| |
Exhibit
No. |
| |
Filing
date |
| |||
10.23
|
| | | |
10-K
|
| |
001-38818
|
| |
10.23
|
| |
3/15/2021
|
| | | | |
10.24
|
| | | |
10-K
|
| |
001-38818
|
| |
10.24
|
| |
3/15/2021
|
| | | | |
21.1
|
| | | |
8-K
|
| |
001-38818
|
| |
21.1
|
| |
01/27/2021
|
| | | | |
23.1
|
| | | | | | | | | | | | | | | |
X
|
| |
23.2
|
| | | | | | | | | | | | | | | |
X
|
| |
23.3
|
| | | | | | | | | | | | | | | |
X
|
| |
24.1
|
| | | |
S-1
|
| |
333-252993
|
| | | | |
02/11/2021
|
| | | | |
101.INS
|
| | XBRL Instance Document | | | | | | | | | | | | | | |
X
|
|
101.SCH
|
| | XBRL Taxonomy Extension Schema Document | | | | | | | | | | | | | | |
X
|
|
101.CAL
|
| | XBRL Taxonomy Extension Calculation Linkbase Document | | | | | | | | | | | | | | |
X
|
|
101.DEF
|
| | XBRL Taxonomy Extension Definition Linkbase Document | | | | | | | | | | | | | | |
X
|
|
101.LAB
|
| | XBRL Taxonomy Extension Label Linkbase Document | | | | | | | | | | | | | | |
X
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Michael W. Bor
Michael W. Bor
|
| |
Chief Executive Officer and Chairman
(Principal Executive Officer) |
| |
March 19, 2021
|
|
|
/s/ Thomas W. Stoltz
Thomas W. Stoltz
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
| |
March 19, 2021
|
|
|
*
David R. Mitchell
|
| |
Director
|
| |
March 19, 2021
|
|
|
*
Luis Ignacio Solorzano Aizpuru
|
| |
Director
|
| |
March 19, 2021
|
|
|
*
Kimberly H. Sheehy
|
| |
Director
|
| |
March 19, 2021
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
*
Steven G. Carrel
|
| |
Director
|
| |
March 19, 2021
|
|
|
*
James E. Skinner
|
| |
Director
|
| |
March 19, 2021
|
|
|
*
Linda B. Abraham
|
| |
Director
|
| |
March 19, 2021
|
|
|
*
Sarah M. Kauss
|
| |
Director
|
| |
March 19, 2021
|
|
|
* By /s/ Rebecca C. Polak
Rebecca C. Polak
Attorney-in-fact |
| | |
Exhibit 5.1
New York | |
601 Lexington Avenue | |
31st Floor | |
New York, NY 10022 | |
www.freshfields.com |
CarLotz, Inc.
Suite 100 Richmond, Virginia 23224 |
March 19, 2021
Ladies and Gentlemen:
We are acting as counsel to CarLotz, Inc., a Delaware corporation (the Company), in connection with the preparation and filing with the Securities and Exchange Commission (the Commission) of a registration statement on Form S-1 (as amended from time to time, the Registration Statement, which term does not include any other document or agreement whether or not specifically referred to therein or attached as an exhibit or schedule thereto), relating to the registration under the Securities Act of 1933, as amended (the Securities Act), of the offer and resale of 88,159,784 shares of the Company’s Class A common stock, $0.0001 par value per share (the Shares), and 6,074,310 private placement warrants exercisable for shares of the Company’s Class A common stock (the Warrants and, together with the Shares, the Securities).
The Securities offered pursuant to the Registration Statement include (i) an aggregate of 64,885,556 outstanding shares of the Company’s Class A common stock (the Outstanding Shares) to be sold by the selling securityholders named in the Registration Statement, (ii) an aggregate of 10,185,774 shares of the Company’s Class A common stock issuable upon the exercise of certain outstanding public warrants at an exercise price of $11.50 per share (including the initial issuance of such shares upon the exercise of such warrants and the subsequent resale of all such shares by the securityholders holding such public warrants) (the Public Warrant Shares), (iii) an aggregate of 6,074,310 shares of the Company’s Class A common stock issuable upon the exercise of certain outstanding private placement warrants at an exercise price of $11.50 per share (including the initial issuance of such shares upon the exercise of such warrants and the subsequent resale of all such shares by the selling securityholders named in the Registration Statement) (the Private Warrant Shares and, together with the Public Warrant Shares, the Warrant Shares), (iv) an aggregate of 2,078,993 shares of the Company’s Class A common stock issuable upon the exercise of stock options and the vesting of restricted stock units that were issued by the Company (including the initial issuance of such shares upon the exercise or vesting of such equity awards and the subsequent resale of all such shares by the selling securityholders named in the Registration Statement) (the Equity Award Shares), (v) an aggregate of 4,935,151 shares of the Company’s Class A common stock that may be issued pursuant to Section 3.10 of that certain Agreement and Plan of Merger, dated as of October 21, 2020 (as amended by Amendment No. 1, dated December 16, 2020, the Merger Agreement), by and among the Company, Acamar Partners Sub, Inc., a Delaware corporation, and CarLotz Group, Inc., a Delaware corporation (f/k/a CarLotz, Inc.) (including the initial issuance of such shares upon the satisfaction of the conditions of Section 3.10 and the subsequent resale of all such shares by the selling securityholders named in the Registration Statement (the Earnout Shares), and (vi) an aggregate of 6,074,310 private placement warrants, constituting all the Warrants, for the purchase of shares of the Company’s Class A common stock to be sold by the selling securityholders named in the Registration Statement.
The Warrants were issued pursuant to a Warrant Agreement, dated February 21, 2019, by and between the Company and American Stock Transfer & Trust Company, LLC (the Warrant Agreement).
This opinion is confined to the General Corporation Law of the State of Delaware and the law of the State of New York, each as currently in effect. Accordingly, we express no opinion herein with regard to any other laws. The opinion expressed herein is limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein. We do not undertake to advise you of changes in law or facts that may come to our attention after the date of this letter.
With respect to the Warrants, the Warrant Shares, the Equity Award Shares and the Earnout Shares, we express no opinion to the extent that future issuances of securities of the Company, including the Warrant Shares, the Equity Award Shares or the Earnout Shares, or antidilution adjustments to outstanding securities of the Company, including the Warrants or the options or restricted stock units underlying the Equity Award Shares, may cause the number of the Earnout Shares to be issuable to be greater than, the Warrants to be exercisable for more shares of the Company’s Class A common stock than or the options or restricted stock units underlying the Equity Award Shares to be exercisable or vest into more shares of the Company’s Class A common stock than, the number of shares of the Company’s Class A common stock that then remain authorized but unissued. Further, we have assumed the Warrant Price (as defined in the Warrant Agreement) will not be adjusted to an amount below the par value per share of the Company’s Class A common stock.
In addition, we have examined and have relied as to matters of fact upon such corporate and other records, agreements, documents and other instruments and certificates or comparable documents of public officials and of officers and representatives of the Company and such other persons, and we have made such other investigations, as we have deemed relevant and necessary as a basis for the opinions expressed below.
In our examination, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals and the conformity with authentic originals of all documents submitted to us as copies. As to any facts material to the opinions expressed herein that we did not independently establish or verify, we have relied, without independent verification, upon oral or written statements and representations of public officials, officers and other representatives of the Company. We have also assumed the due authorization, execution and delivery of all documents by all persons other than the Company where due authorization, execution and delivery are prerequisites to the effectiveness thereof.
Based upon and subject to the foregoing qualifications, assumptions and limitations and the further limitations set forth below, we are of the opinion, that:
1. | With respect to the Outstanding Shares to be offered pursuant to the Registration Statement, such Outstanding Shares have been duly authorized and are validly issued, fully paid and nonassessable. |
2. | With respect to the Warrant Shares to be offered pursuant to the Registration Statement, when such shares are issued upon the exercise of the warrants thereof pursuant to the terms of the Warrant Agreement, such Warrant Shares will have been validly issued, fully-paid and nonassessable. |
3. | With respect to the Equity Award Shares to be offered pursuant to the Registration Statement, when such shares are issued upon the exercise or vesting of such equity awards, such Equity Award Shares will have been validly issued, fully-paid and nonassessable. |
4. | With respect to the Earnout Shares to be offered pursuant to the Registration Statement, when such shares are issued in accordance with the terms of the Merger Agreement, such Earnout Shares will be validly issued, fully paid and non-assessable. |
5. | With respect to the Warrants to be offered pursuant to the Registration Statement, such Warrants constitute valid and binding obligations of the Company. |
Our opinions above are subject to the effects of (a) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally, (b) general equitable principles (whether considered in a proceeding in equity or at law), and (c) an implied covenant of good faith and fair dealing.
In addition, we express no opinion as to (i) the validity, legally binding effect or enforceability of (a) any waiver of immunity, (b) any waiver of a right to trial by jury, (c) any waiver of inconvenient forum set forth in the Warrant Agreement and the Warrants or (d) any provisions relating to partial unenforceability contained in the Warrant Documents or (ii) (a) whether a federal or state court outside New York would give effect to any choice of law provided for in the Warrant Agreement and the Warrants or (b) any provisions of the Warrant Agreement and the Warrants that relate to the subject matter jurisdiction of the federal or state courts of a particular jurisdiction to adjudicate any controversy related to the Warrant Agreement and the Warrants or the transactions contemplated thereby.
The opinion expressed in this letter is solely for your benefit and the benefit of persons entitled to rely thereon pursuant to applicable provisions of the Securities Act and the rules and regulations of the Commission promulgated thereunder, in connection with the Registration Statement, and may not be relied upon in any manner or used for any purpose by any other person or entity.
We hereby consent to the filing of this opinion letter with the Commission as Exhibit 5.1 to the Registration Statement. In giving this consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act.
Sincerely yours,
/s/ Freshfields Bruckhaus Deringer US LLP |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in the Prospectus constituting a part of this Registration Statement on Form S-1, Amendment No. 1, of our report dated March 15, 2021 relating to the consolidated financial statements of CarLotz, Inc. (formerly known as Acamar Partners Acquisition Corp.), which is contained in that Prospectus. We also consent to the reference to us under the caption “Experts” in the Prospectus.
/s/ WithumSmith+Brown, PC | |
New York, New York | |
March 19, 2021 |
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the use in this Registration Statement No. 333-252993 on Form S-1 of our report dated March 15, 2021, 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
March 19, 2021