|
Delaware
|
| |
3713
|
| |
85-4319789
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary standard industrial
classification code number) |
| |
(I.R.S. employer
identification number) |
|
|
Mitchell S. Nussbaum, Esq.
David C. Fischer, Esq. Loeb & Loeb LLP 345 Park Avenue New York, NY 10154 Tel: (212) 407-4000 |
| |
Arila E. Zhou, Esq.
Anna Jinhua Wang, Esq. Robinson & Cole LLP Chrysler East Building 666 Third Avenue, 20th Floor New York, NY 10017 Tel: (212) 451-2908 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | |
Smaller reporting company ☒
Emerging growth company ☒ |
|
| | |
Page
|
| |||
| | | | iii | | | |
| | | | 1 | | | |
| | | | 8 | | | |
| | | | 10 | | | |
| | | | 11 | | | |
| | | | 35 | | | |
| | | | 36 | | | |
| | | | 36 | | | |
| | | | 37 | | | |
| | | | 39 | | | |
| | | | 41 | | | |
| | | | 51 | | | |
| | | | 71 | | | |
| | | | 75 | | | |
| | | | 77 | | | |
| | | | 82 | | | |
| | | | 83 | | | |
| | | | 85 | | | |
| | | | 89 | | | |
| | | | 91 | | | |
| | | | 96 | | | |
| | | | 96 | | | |
| | | | 96 | | | |
| | | | F-1 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year Ended
December 31, 2021 |
| |
Period from
November 13, 2020 to December 31, 2020 |
| | |
Period from
January 1, 2020 to November 12, 2020 |
| |||||||||
In thousands | | | | | | | | | | | | | | | | | | | | |
Consolidated Statements of Operations: | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 2,977 | | | | | $ | 377 | | | | | | $ | 4,132 | | |
Cost of revenue
|
| | | | 3,540 | | | | | | 479 | | | | | | | 4,451 | | |
Gross loss:
|
| | | | (563) | | | | | | (102) | | | | | | | (319) | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 13,750 | | | | | | 1,147 | | | | | | | 3,686 | | |
Operating loss
|
| | |
|
(14,313)
|
| | | |
|
(1,249)
|
| | | | |
|
(4,005)
|
| |
Other income (expenses): | | | | | | | | | | | | | | | | | | | | |
Interest expenses, net
|
| | | | (3) | | | | | | (4) | | | | | | | (4) | | |
Others
|
| | | | (287) | | | | | | 12 | | | | | | | 587 | | |
Total other income, net
|
| | | | (290) | | | | | | 8 | | | | | | | 583 | | |
Loss before income taxes
|
| | | | (14,603) | | | | | | (1,241) | | | | | | | (3,422) | | |
Income tax expenses
|
| | | | (11) | | | | | | (2) | | | | | | | — | | |
Net loss
|
| | | $ | (14,614) | | | | | $ | (1,243) | | | | | | $ | (3,422) | | |
Net loss per share of common stock: | | | | | | | | | | | | | | | | | | | | |
Basic and Diluted
|
| | | $ | (0.83) | | | | | $ | (0.07) | | | | | | | | | |
Weighted average shares outstanding*
|
| | | | 17,500,000 | | | | | | 17,500,000 | | | | | | | | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
In thousands: | | | | | | | | | | | | | |
Summary Consolidated Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,683 | | | | | $ | 15,699 | | |
Total current assets
|
| | | | 6,637 | | | | | | 19,249 | | |
Total assets
|
| | | | 15,436 | | | | | | 29,227 | | |
Total current liabilities
|
| | | | 4,452 | | | | | | 4,254 | | |
Total liabilities
|
| | | | 5,208 | | | | | | 4,437 | | |
Total equity
|
| | | | 10,228 | | | | | | 24,790 | | |
Total liabilities and equity
|
| | |
$
|
15,436
|
| | | | $ | 29,227 | | |
Number of Shares and % of
Total Outstanding |
| |
Date Available for Sale into Public Markets
|
|
4,000,000, or 18.6%
|
| | Immediately after this offering. | |
17,500,000, or 81.4%
|
| | 180 days after the date of this prospectus due to contractual obligations and lock-up agreements between the holders of these shares and the underwriters. However, the underwriters can waive the provisions of these lock-up agreements and allow these stockholders to sell their shares at any time, provided their respective one-year holding periods under Rule 144 have expired. | |
| | |
As of December 31, 2021
|
| |||||||||
(In thousands, except share and par value)
|
| |
Actual
|
| |
As Adjusted(1)
|
| ||||||
Cash and cash equivalents
|
| | | $ | 2,683 | | | | | $ | | | |
Debt: | | | | | | | | | | | | | |
Long-term borrowings -current portion
|
| | | | 10 | | | | | | | | |
Long-term borrowings
|
| | | | 756 | | | | | | | | |
Total debt
|
| | | $ | 766 | | | | | $ | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, par value $0.0004, 112,500,000 shares authorized, 17,500,000 shares issued and outstanding on an actual basis, and 21,500,000 shares outstanding on a pro forma as adjusted basis
|
| | | | 7 | | | | | | | | |
Subscription receivable
|
| | | | (7) | | | | | | | | |
Additional paid-in capital
|
| | | | 26,085 | | | | | | | | |
Accumulated deficit
|
| | | | (15,857) | | | | | | | | |
Total stockholders’ equity
|
| | | $ | 10,228 | | | | | $ | | | |
Total capitalization
|
| | | $ | 10,994 | | | | | $ | | | |
|
Assumed public offering price per share
|
| | | $ | | | |
|
Pro forma net tangible book value per share as of December 31, 2021
|
| | | $ | | | |
|
Increase in pro forma net tangible book value per share attributable to the offering
|
| | | $ | | | |
|
Pro forma as adjusted net tangible book value per share as of December 31, 2021 after the
offering |
| | | $ | | | |
|
Dilution per share to new investors in the offering
|
| | | $ | | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
|
| ||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Per Share
|
| ||||||||||||
Existing stockholders
|
| | | | 17,500,000 | | | | | | 81.4% | | | | | | | | | % | | | | | $ | | | |
New investors
|
| | | | 4,000,000 | | | | | | 18.6% | | | | | | | | | % | | | | | | | | |
Total
|
| | | | 21,500,000 | | | | | | 100% | | | | | | | | | % | | | | | | | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
In thousands
|
| |
Year Ended
December 31, 2021 |
| |
Period from November 13,
2020 to December 31, 2020 |
| | |
Period from January 1,
2020 to November 12, 2020 |
| |||||||||
Consolidated Statements of Operations: | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 2,977 | | | | | $ | 377 | | | | | | $ | 4,132 | | |
Cost of revenue
|
| | | | 3,540 | | | | | | 479 | | | | | | | 4,451 | | |
Gross loss
|
| | | | (563) | | | | | | (102) | | | | | | | (319) | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 13,750 | | | | | | 1,147 | | | | | | | 3,686 | | |
Operating loss
|
| | | | (14,313) | | | | | | (1,249) | | | | | | | (4,005) | | |
Other income (expenses): | | | | | | | | | | | | | | | | | | | | |
Interest expenses, net
|
| | | | (3) | | | | | | (4) | | | | | | | (4) | | |
Others
|
| | | | (287) | | | | | | 12 | | | | | | | 587 | | |
Total other (expenses) income, net
|
| | | | (290) | | | | | | 8 | | | | | | | 583 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
In thousands
|
| |
Year Ended
December 31, 2021 |
| |
Period from November 13,
2020 to December 31, 2020 |
| | |
Period from January 1,
2020 to November 12, 2020 |
| |||||||||
Loss before income taxes
|
| | | | (14,603) | | | | | | (1,241) | | | | | | | (3,422) | | |
Income tax expenses
|
| | | | (11) | | | | | | (2) | | | | | | | — | | |
Net loss
|
| | | $ | (14,614) | | | | | $ | (1,243) | | | | | | $ | (3,422) | | |
Net loss per share of common stock: | | | | | | | | | | | | | | | | | | | | |
Basic and Diluted
|
| | | $ | (0.83) | | | | | $ | (0.07) | | | | | | | | | |
Weighted average shares outstanding*
|
| | | | 17,500,000 | | | | | | 17,500,000 | | | | | | | | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year ended
December 31, 2021 |
| |
Period from November 13,
2020 to, December 31 2020 |
| | |
Period from January 1,
2020 to November 12, 2020 |
| |||||||||
Sales of EVs
|
| | | $ | 1,750 | | | | | $ | 235 | | | | | | $ | 2,690 | | |
Lease of EVs
|
| | | | 586 | | | | | | 92 | | | | | | | 492 | | |
Others
|
| | | | 641 | | | | | | 50 | | | | | | | 950 | | |
| | | | $ | 2,977 | | | | | $ | 377 | | | | | | $ | 4,132 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year ended
December 31, 2021 |
| |
Period from November 13,
2020 to December 31, 2020 |
| | |
Period from January 1,
2020 to November 12, 2020 |
| |||||||||
Net cash (used in) provided by operating
activities |
| | | $ | (12,939) | | | | | $ | (1,434) | | | | | | $ | 11 | | |
Net cash used in investing activities
|
| | | | (638) | | | | | | (80) | | | | | | | (556) | | |
Net cash generated from financing activities
|
| | | | 561 | | | | | | 16,985 | | | | | | | 744 | | |
Net (decrease) increase in cash and cash equivalents
|
| | | | (13,016) | | | | | | 15,471 | | | | | | | 199 | | |
|
Retail
|
| | Amazon | | |
2022: 10,000 electric delivery vans (short-term goal)
2030: 100,000 electric delivery vans total (long-term goal)
|
|
| | | | Walmart | | | 2040: Zero emission vehicle fleet, including long-haul (6,000 trucks) | |
|
Power
|
| | Schneider Electric | | | 2030: 100% electric fleet (14,000 vehicles) | |
|
Transportation
|
| | Uber | | |
2030: 100% of rides take place in EVs in U.S., Canadian, and European cities
2040: 100% of rides take place in zero-emission vehicles, on public transit or with micro-mobility
|
|
|
Delivery
|
| | DHL | | |
2025: 70% of first- and last-mile delivery services with clean transport modes
2050: Reduce logistics-related emissions to zero
|
|
| | | | FedEx | | | 2040: 100% global pickup and delivery (PUD) vehicle purchases electric | |
|
Biotech
|
| | Genentech | | | 2030: 100% electrification of sales fleet (1,300 vehicles) and commuter buses | |
|
Municipal
|
| | New York, New York | | |
2017: Only purchase Plug-in Hybrid EVs (PHEV) for non-emergency sedans going forward
2025: Add 2,000 EVs to NYC sedan fleet
2040: 100% electric MTA bus fleet
|
|
| | | | New Jersey | | |
2024: At least 10% of new bus purchases will be zero emission buses
2026: At least 50% of new bus purchases will be zero emissions buses
2032: 100% of new bus purchases will be zero emissions buses
|
|
| | | | Los Angeles, California | | |
2028: 100% ZEV vehicle conversions “where technically feasible” (2028: taxi fleet, school buses; 2035: urban delivery vehicles)
2035: 100% electrification of sanitation fleet through LA Department of Sanitation Commitment
|
|
| | | | Houston, Texas | | | 2030: 100% EV non-emergency, light-duty municipal fleet | |
| | | | Chicago, Illinois | | | 2040: 100% electric Chicago Transit Authority (CTA) bus fleet (1,850 buses) | |
Name
|
| |
Age
|
| |
Position
|
|
Xiaofeng Denton Peng | | | 46 | | | Chairman | |
Liang Lance Zhou | | | 54 | | | Chief Executive Officer | |
Tarek Helou | | | 40 | | | Chief Operating Officer | |
Ron Iacobelli | | | 53 | | | Chief Technology Officer | |
Wenbing Chris Wang | | | 50 | | | Chief Financial Officer | |
Jose Paul Plackal | | | 41 | | | Chief Marketing Officer | |
Tony Zhou | | | 58 | | | SVP of Autonomous Driving | |
Edmund Shen | | | 62 | | |
VP, Product Management and Supply Chain
|
|
HoongKhoeng Cheong | | | 56 | | | Director | |
John F. Perkowski | | | 73 | | | Independent Director Nominee | |
Steven E. Stivers | | | 56 | | | Independent Director Nominee | |
Sam Van | | | 43 | | | Independent Director Nominee | |
Zhenxing Fu | | | 60 | | | Independent Director Nominee | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($)(3) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Non-qualified
Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| ||||||||||||
Xiaofeng Denton Peng
|
| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Chairman
|
| | | | 2021 | | | | | | | | | | | | | | | | | | 42,000 | | | | | | | | | | | | | | | 42,000 | | |
Liang Lance Zhou(1)
|
| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Chief Executive Officer
|
| | | | 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Joseph R. Mitchell(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Chief Executive
|
| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Officer
|
| | | | 2021 | | | | | | 220,635 | | | | | | | | | | | | | | | | | | | | | | | | | | | 220,635 | | |
Tarek Helou
|
| | | | 2020 | | | | | | 182,911 | | | | | | | | | | | | | | | | | | | | | | | | | | | 182,911 | | |
Chief Operating Officer
|
| | | | 2021 | | | | | | 195,092 | | | | | | | | | | | | | | | | | | | | | | | | | | | 195,092 | | |
Ronald Iacobelli
|
| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Chief Technology Officer
|
| | | | 2021 | | | | | | 161,564 | | | | | | | | | | | | | | | | | | | | | | | | | | | 161,564 | | |
Wenbing Chris Wang
|
| | | | 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Chief Financial Officer
|
| | | | 2021 | | | | | | 25,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,000 | | |
| | |
Option Awards
|
| |||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Equity Incentive
Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| ||||||||||||
Xiaofeng Denton Peng
|
| | | | 1,050,000(1) | | | | | | | | | | | | 1.72 | | | | | | 1/24/2028 | | |
Joe Mitchell
|
| | | | | | | | | | 175,000(2) | | | | | | 1.72 | | | | | | 2/15/2031 | | |
Tarek Helou
|
| | | | | | | | | | 137,500(3) | | | | | | 1.72 | | | | | | 3/30/2031 | | |
Ronald Iacobelli
|
| | | | | | | | | | 125,000(4) | | | | | | 1.72 | | | | | | 4/26/2031 | | |
Wenbing Chris Wang
|
| | | | | | | | | | 125,000(5) | | | | | | 1.72 | | | | | | 3/30/2031 | | |
Name and Address of Beneficial Owner
|
| |
Shares Beneficially
Owned |
| |
Percent of Class
|
| |
Percent of Class
after this Offering |
| |||||||||
5% Beneficial Owner: | | | | | | | | | | | | | | | | | | | |
EdisonFuture, Inc.
|
| | | | 17,500,000(1) | | | | | | 93.3% | | | | | | 76.9% | | |
4677 Old Ironsides Dr, Suite 190
Santa Clara, CA 95054 |
| | | | |||||||||||||||
Named Executive Officers and Directors: | | | | | |||||||||||||||
Xiaofeng Denton Peng
|
| | | | 1,050,000(2) | | | | | | 5.6% | | | | | | 4.6% | | |
4677 Old Ironsides Dr, Suite 190
Santa Clara, CA 95054 |
| | | | |||||||||||||||
Joe Mitchell
|
| | | | 43,750 | | | | | | * | | | | | | * | | |
1500 Lakeview Loop
Anaheim, CA 92807 |
| | | | |||||||||||||||
Tarek Helou
|
| | | | 34,375 | | | | | | * | | | | | | * | | |
1500 Lakeview Loop
Anaheim, CA 92807 |
| | | | |||||||||||||||
Chris Wang
|
| | | | 31,250 | | | | | | * | | | | | | * | | |
1500 Lakeview Loop
Anaheim, CA 92807 |
| | | | |||||||||||||||
All of our directors and
|
| | | | 1,159,375 | | | | | | 6.2% | | | | | | 5.1% | | |
officers as a group
|
| | | |
| | |
Number of
options-exercisable |
| |
Number of
options-unexercisable |
| ||||||
Xiaofeng Denton Peng
|
| | | | 1,050,000 | | | | | | — | | |
Liang Lance Zhou
|
| | | | — | | | | | | 350,000 | | |
Joe Mitchell
|
| | | | 43,750 | | | | | | — | | |
Tarek Helou
|
| | | | 34,375 | | | | | | 103,125 | | |
Ron Iacobelli
|
| | | | — | | | | | | 125,000 | | |
Wenbing Chris Wang
|
| | | | 31,250 | | | | | | 93,750 | | |
Other employees
|
| | | | 100,063 | | | | | | 745,188 | | |
Underwriters
|
| |
Number
of Shares |
| |||
Prime Number Capital, LLC
|
| | | | | | |
Total
|
| | | | | |
| | |
Per Share
|
| |
Total Without
Exercise of Over-Allotment Option |
| |
Total With Full
Exercise of Over-Allotment Option |
|
Initial public offering price
|
| | | | | | | | | |
Underwriting discounts to be paid by us(1)
|
| | | | | | | | | |
Proceeds, before expenses, to us
|
| | | | | | | | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,683 | | | | | $ | 15,699 | | |
Accounts receivable, net
|
| | | | 1,201 | | | | | | 1,157 | | |
Inventories
|
| | | | 2,225 | | | | | | 1,545 | | |
Prepaid expenses and other current assets
|
| | | | 528 | | | | | | 848 | | |
Total current assets
|
| | | | 6,637 | | | | | | 19,249 | | |
Property and equipment, net
|
| | | | 2,205 | | | | | | 2,766 | | |
Intangible assets, net
|
| | | | 2,323 | | | | | | 2,941 | | |
Goodwill
|
| | | | 4,271 | | | | | | 4,271 | | |
Total assets
|
| | |
$
|
15,436
|
| | | |
$
|
29,227
|
| |
LIABILITIES AND EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,786 | | | | | $ | 1,356 | | |
Accrued liabilities
|
| | | | 779 | | | | | | 450 | | |
Advance from customers
|
| | | | 803 | | | | | | 709 | | |
Deferred income
|
| | | | 714 | | | | | | 1,187 | | |
Warranty reserve
|
| | | | 360 | | | | | | 530 | | |
Long-term borrowing, current portion
|
| | | | 10 | | | | | | 22 | | |
Total current liabilities
|
| | | | 4,452 | | | | | | 4,254 | | |
Long-term borrowings
|
| | | | 756 | | | | | | 183 | | |
Total liabilities
|
| | | | 5,208 | | | | | | 4,437 | | |
Commitments and contingencies (Note 15) | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | |
Common stocks, par $0.0004, 112,500,000 shares authorized, 17,500,000 shares issued and outstanding as of December 31, 2021 and 2020, respectively*
|
| | | | 7 | | | | | | 7 | | |
Subscription receivable
|
| | | | (7) | | | | | | (7) | | |
Additional paid-in capital
|
| | | | 26,085 | | | | | | 26,033 | | |
Accumulated deficit
|
| | | | (15,857) | | | | | | (1,243) | | |
Total equity
|
| | | | 10,228 | | | | | | 24,790 | | |
Total liabilities and equity
|
| | | $ | 15,436 | | | | | $ | 29,227 | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year Ended
December 31, 2021 |
| |
Period from
November 13, 2020 to December 31, 2020 |
| | |
Period from
January 1, 2020 to November 12, 2020 |
| |||||||||
Net sales
|
| | | $ | 2,977 | | | | | $ | 377 | | | | | | $ | 4,132 | | |
Cost of revenue
|
| | | | 3,540 | | | | | | 479 | | | | | | | 4,451 | | |
Gross loss:
|
| | | | (563) | | | | | | (102) | | | | | | | (319) | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative
|
| | | | 13,750 | | | | | | 1,147 | | | | | | | 3,686 | | |
Operating loss
|
| | | | (14,313) | | | | | | (1,249) | | | | | | | (4,005) | | |
Other income (expenses): | | | | | | | | | | | | | | | | | | | | |
Interest expenses, net
|
| | | | (3) | | | | | | (4) | | | | | | | (4) | | |
Others
|
| | | | (287) | | | | | | 12 | | | | | | | 587 | | |
Total other income (expenses), net
|
| | | | (290) | | | | | | 8 | | | | | | | 583 | | |
Loss before income taxes
|
| | | | (14,603) | | | | | | (1,241) | | | | | | | (3,422) | | |
Income tax expenses
|
| | | | (11) | | | | | | (2) | | | | | | | — | | |
Net loss
|
| | | $ | (14,614) | | | | | $ | (1,243) | | | | | | $ | (3,422) | | |
Net loss per share of common stock: | | | | | | | | | | | | | | | | | | | | |
Basic and Diluted
|
| | | $ | (0.83) | | | | | $ | (0.07) | | | | | | | | | |
Weighted average shares outstanding* | | | | | 17,500,000 | | | | | | 17,500,000 | | | | | | | | | |
| | |
Shares*
|
| |
Common
Stock Amount |
| |
Subscription
Receivable |
| |
Additional
Paid -In Capital |
| |
Accumulated
Deficit |
| |
Total
(Deficit) Equity |
| | | | | ||||||||||||||||||||||||||
Predecessor: | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 49,558 | | | | | $ | (61,195) | | | | | $ | (11,637) | | | | | | | ||||||||
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,422) | | | | | | (3,422) | | | | | | | ||||||||
Liabilities waived by a stockholder
|
| | | | — | | | | | | — | | | | | | | | | | | | 16,847 | | | | | | — | | | | | | 16,847 | | | | | | | | | ||||||
Balance as of November 12, 2020
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | 66,405 | | | | | $ | (64,617) | | | | | $ | 1,788 | | | | | | | ||||||||
Successor: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Cancellation of Predecessor equity
|
| | | | | | | | | | | | | | | | | | | | | | (66,405) | | | | | | 64,617 | | | | | | (1,788) | | | | | | | | | | | | | ||
Business combination consideration
paid by a stockholder |
| | | | | | | | | | | | | | | | | | | | | | 9,033 | | | | | | — | | | | | | 9,033 | | | | | | | | | | | | | ||
Recapitalization
|
| | | | 17,500,000 | | | | | | 7 | | | | | | (7) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | ||||||
Balance as of November 13, 2020
|
| | | | 17,500,000 | | | | | $ | 7 | | | | | $ | (7) | | | | | $ | 9,033 | | | | | $ | — | | | | | $ | 9,033 | | | | | | | ||||||||
Capital contributions
|
| | | | — | | | | | | — | | | | | | — | | | | | | 17,000 | | | | | | — | | | | | | 17,000 | | | | | | | ||||||||
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,243) | | | | | | (1,243) | | | | | | | ||||||||
Balance as of December 31, 2020
|
| | | | 17,500,000 | | | | | | 7 | | | | | $ | (7) | | | | | $ | 26,033 | | | | | $ | (1,243) | | | | | $ | 24,790 | | | | | | | ||||||||
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (14,614) | | | | | | (14,614) | | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | | | | | | | | | | | | | | | | | | | 52 | | | | | | | | | | | | 52 | | | | | | | | | | | | | | |
Balance as of December 31, 2021
|
| | | | 17,500,000 | | | | | $ | 7 | | | | | $ | (7) | | | | | $ | 26,085 | | | | | $ | (15,857) | | | | | $ | 10,228 | | | | | | |
| | |
Successor
|
| | |
Predecessor
|
| | ||||||||||||||
| | |
Year ended
December 31, 2021 |
| |
Period from
November 13, 2020 to December 31, 2020 |
| | |
Period from
January 1, 2020 to November 12, 2020 |
| | |||||||||||
Cash flows from operating activities:
|
| | | | | | | | | | | | | | | | | | | | | ||
Net loss
|
| | | $ | (14,614) | | | | | $ | (1,243) | | | | | | $ | (3,422) | | | | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | | | | ||
Depreciation and amortization
|
| | | | 1,688 | | | | | | 353 | | | | | | | 852 | | | | ||
Expenses paid by the stockholder
|
| | | | — | | | | | | — | | | | | | | 61 | | | | ||
Forgiveness of PPP loan
|
| | | | — | | | | | | — | | | | | | | (551) | | | | ||
Provision for doubtful accounts and write-off of accounts
receivable |
| | | | 100 | | | | | | — | | | | | | | — | | | | ||
Write-down for inventory
|
| | | | 493 | | | | | | — | | | | | | | — | | | | ||
Loss on disposal of property and equipment
|
| | | | 275 | | | | | | — | | | | | | | — | | | | ||
Non-cash expense
|
| | | | 48 | | | | | | — | | | | | | | — | | | | ||
Stock-based compensation expense
|
| | | | 52 | | | | | | — | | | | | | | — | | | | ||
Changes in operating assets and liabilities
|
| | | | | | | | | | | | | | | | | | | | | ||
Accounts receivable
|
| | | | (144) | | | | | | (65) | | | | | | | 603 | | | | ||
Inventories
|
| | | | (1,367) | | | | | | (61) | | | | | | | 1,793 | | | | ||
Prepaid expenses and other assets
|
| | | | 320 | | | | | | (303) | | | | | | | 108 | | | | ||
Accounts payable
|
| | | | 430 | | | | | | (93) | | | | | | | 302 | | | | ||
Accrued liabilities
|
| | | | 329 | | | | | | (25) | | | | | | | 194 | | | | | |
Advance from customers
|
| | | | 94 | | | | | | 62 | | | | | | | 90 | | | | ||
Deferred income
|
| | | | (473) | | | | | | — | | | | | | | — | | | | ||
Warranty reserve
|
| | | | (170) | | | | | | (59) | | | | | | | (19) | | | | | |
Net cash (used in) provided by operating activities
|
| | | | (12,939) | | | | | | (1,434) | | | | | | | 11 | | | | ||
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | ||
Purchases of property and equipment
|
| | | | (638) | | | | | | (80) | | | | | | | (556) | | | | ||
Net cash used in investing activities
|
| | | | (638) | | | | | | (80) | | | | | | | (556) | | | | ||
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | ||
Proceeds from borrowings
|
| | | | 586 | | | | | | — | | | | | | | 752 | | | | ||
Repayment of borrowings
|
| | | | (25) | | | | | | (15) | | | | | | | (8) | | | | ||
Proceeds of capital contribution
|
| | | | — | | | | | | 17,000 | | | | | | | — | | | | ||
Net cash generated from financing activities
|
| | | | 561 | | | | | | 16,985 | | | | | | | 744 | | | | ||
Increase (decrease) in cash and cash equivalents
|
| | | | (13,016) | | | | | | 15,471 | | | | | | | 199 | | | | ||
Cash and cash equivalents at beginning of year
|
| | | | 15,699 | | | | | | 228 | | | | | | | 29 | | | | ||
Cash and cash equivalents at end of year
|
| | | $ | 2,683 | | | | | $ | 15,699 | | | | | | $ | 228 | | | | ||
Supplemental cash flow information:
|
| | | | | | | | | | | | | | | | | | | | | ||
Interest paid
|
| | | $ | 6 | | | | | $ | 2 | | | | | | $ | 2 | | | | ||
Income tax paid
|
| | | $ | 2 | | | | | $ | — | | | | | | $ | 2 | | | | ||
Non – cash activities:
|
| | | | | | | | | | | | | | | | | | | | | ||
Loan forgiveness due to a shareholder
|
| | | | | | | | | | | | | | | | $ | 16,786 | | | |
|
Furniture, fixtures and equipment
|
| | 3 to 7 years | |
|
Automobile
|
| | 3 to 5 years | |
|
Leased automobile
|
| | 3 years | |
|
Leasehold improvements
|
| | The shorter of the estimated life or the lease term | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||
| | |
Year ended
December 31, 2021 |
| |
Period from November 13,
2020 to, December 31 2020 |
| | |
Period from January 1,
2020 to November 12, 2020 |
| |||||||||
Sales of EVs
|
| | | $ | 1,750 | | | | | $ | 235 | | | | | | $ | 2,690 | | |
Lease of EVs
|
| | | | 586 | | | | | | 92 | | | | | | | 492 | | |
Others
|
| | | | 641 | | | | | | 50 | | | | | | | 950 | | |
| | | | $ | 2,977 | | | | | $ | 377 | | | | | | $ | 4,132 | | |
|
Cash and cash equivalent
|
| | | $ | 228 | | |
|
Account and other receivables, net
|
| | | | 1,092 | | |
|
Inventories, net
|
| | | | 1,565 | | |
|
Property, plant and equipment, net
|
| | | | 2,864 | | |
|
Identifiable intangible assets, net
|
| | | | 3,043 | | |
|
Prepaid expenses and other assets, current and non-current
|
| | | | 537 | | |
|
Accounts payables
|
| | | | (1,449) | | |
|
Accrued and other liabilities
|
| | | | (2,908) | | |
|
Other long-term liabilities
|
| | | | (210) | | |
|
Identifiable assets acquired and liabilities assumed (a)
|
| | | | 4,762 | | |
|
Consideration (b)
|
| | | | 9,033 | | |
|
Goodwill (b-a)
|
| | | $ | 4,271 | | |
| | |
Unaudited
|
| |||
Revenue
|
| | | $ | 4,509 | | |
Net loss
|
| | | | (4,665) | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Accounts receivable $
|
| | | | 1,236 | | | | | $ | 1,187 | | |
Less: Allowance for doubtful accounts
|
| | | | (35) | | | | | | (30) | | |
Accounts receivable, net $
|
| | | | 1,201 | | | | | $ | 1,157 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Raw materials
|
| | | $ | 924 | | | | | $ | 635 | | |
Work in process
|
| | | | 582 | | | | | | 910 | | |
Finished goods
|
| | | | 719 | | | | | | — | | |
Total inventories
|
| | | $ | 2,225 | | | | | $ | 1,545 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Prepaid expenses
|
| | | $ | 41 | | | | | $ | 360 | | |
Vendor deposits
|
| | | | 267 | | | | | | 223 | | |
Prepaid insurance
|
| | | | 144 | | | | | | 169 | | |
Others
|
| | | | 76 | | | | | | 96 | | |
Total prepaid and other current assets
|
| | | $ | 528 | | | | | $ | 848 | | |
| | |
Useful Life
(in months) |
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||
As of December 31, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Technology
|
| | | | 60 | | | | | $ | 1,574 | | | | | $ | (52) | | | | | $ | 1,522 | | |
Tradename
|
| | | | 60 | | | | | | 1,400 | | | | | | (47) | | | | | | 1,353 | | |
Other
|
| | | | 84 | | | | | | 168 | | | | | | (102) | | | | | | 66 | | |
| | | | | | | | | | $ | 3,142 | | | | | $ | (201) | | | | | $ | 2,941 | | |
As of December 31, 2021
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Technology
|
| | | | 60 | | | | | $ | 1,574 | | | | | $ | (366) | | | | | $ | 1,208 | | |
Tradename
|
| | | | 60 | | | | | | 1,400 | | | | | | (327) | | | | | | 1,073 | | |
Other
|
| | | | 84 | | | | | | 168 | | | | | | (126) | | | | | | 42 | | |
| | | | | | | | | | $ | 3,142 | | | | | $ | (819) | | | | | $ | 2,323 | | |
| | |
USD
|
| |||
2022
|
| | | $ | 619 | | |
2023
|
| | | | 613 | | |
2024
|
| | | | 595 | | |
2025
|
| | | | 496 | | |
| | | | $ | 2,323 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Furniture, fixtures and equipment
|
| | | $ | 1,193 | | | | | $ | 1,364 | | |
Automobile
|
| | | | 533 | | | | | | 2,163 | | |
Automobile for lease
|
| | | | 3,046 | | | | | | 3,030 | | |
Leasehold improvements
|
| | | | 77 | | | | | | 394 | | |
Construction in progress
|
| | | | 300 | | | | | | 248 | | |
| | | | | 5,149 | | | | | | 7,199 | | |
Less: accumulated depreciation
|
| | | | (2,944) | | | | | | (4,433) | | |
| | | | $ | 2,205 | | | | | $ | 2,766 | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Current portion of long-term borrowings
|
| | | $ | 10 | | | | | $ | 22 | | |
Long-term borrowings, excluding current portion
|
| | | | 756 | | | | | | 183 | | |
Total long-term borrowings
|
| | | $ | 766 | | | | | $ | 205 | | |
| | |
USD
|
| |||
For the year ending December 31, | | | |||||
2022
|
| | | $ | 10 | | |
2023
|
| | | | 13 | | |
2024
|
| | | | 13 | | |
2025
|
| | | | 4 | | |
2026
|
| | | | 589 | | |
Thereafter
|
| | | | 137 | | |
| | | | $ | 766 | | |
|
Expected term
|
| |
6.25 years
|
|
|
Risk-free interest rate
|
| |
1.36% – 1.52%
|
|
|
Expected volatility
|
| |
64.40% – 87.73%
|
|
|
Expected dividend yield
|
| |
0%
|
|
| | |
Time-based Options
|
| ||||||||||||||||||
| | |
Shares
|
| |
Weighted
Average Exercise Price Per Share |
| |
Weighted-
Average Remaining Contractual Term |
| |
Aggregate
Intrinsic Value ($000) |
| |||||||||
Outstanding as of December 31, 2020
|
| | | | — | | | | | $ | — | | | |
—
|
| | | | — | | |
Granted
|
| | | | 2,040,500 | | | | | | 1.72 | | | |
—
|
| | | | — | | |
Vested
|
| | | | — | | | | | | — | | | |
—
|
| | | | — | | |
Forfeited
|
| | | | (354,000) | | | | | | 1.72 | | | |
—
|
| | | | — | | |
Outstanding as of December 31, 2021
|
| | | | 1,686,500 | | | | | | 1.72 | | | |
9.45 years
|
| | | | 2,091 | | |
Exercisable as of December 31, 2021
|
| | | | — | | | | | | — | | | |
—
|
| | | | — | | |
Non-vested as of December 31, 2021
|
| | | | 1,686,500 | | | | | | 1.72 | | | |
9.45 years
|
| | | | 2,091 | | |
| | |
Successor
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Current tax: | | | | | | | | | | | | | |
Federal tax
|
| | |
$
|
—
|
| | | | $ | — | | |
State tax
|
| | | | 11 | | | | | | 2 | | |
Total current tax
|
| | | $ | 11 | | | | | $ | 2 | | |
Deferred tax: | | | | | | | | | | | | | |
Federal tax
|
| | | $ | — | | | | | $ | — | | |
State tax
|
| | | | — | | | | | | — | | |
Total deferred tax
|
| | | $ | — | | | | | $ | — | | |
Total provision for income taxes
|
| | | $ | 11 | | | | | $ | 2 | | |
| | |
Successor
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Provision for income taxes at U.S. Federal statutory rate
|
| | | | 21.00% | | | | | | 21.00% | | |
State taxes, net of federal benefit
|
| | | | 8.36% | | | | | | 6.87% | | |
Non-deductible expenses
|
| | | | (1.34)% | | | | | | (0.04)% | | |
Credits and Incentives
|
| | | | 5.80% | | | | | | —% | | |
Change in valuation allowance
|
| | | | (33.90)% | | | | | | (27.96)% | | |
| | | | | (0.08)% | | | | | | (0.13)% | | |
| | |
2021
|
| |
2020
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carry forwards
|
| | | $ | 4,370 | | | | | $ | 378 | | |
Credits and Incentives
|
| | | | 1,174 | | | | | | — | | |
Accruals and reserves
|
| | | | 197 | | | | | | — | | |
Property and equipment
|
| | | | (415) | | | | | | (46) | | |
Gross deferred tax assets
|
| | | | 5,326 | | | | | | 332 | | |
Valuation allowance
|
| | | | (5,326) | | | | | | (332) | | |
Total deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
| | |
Operating
Leases |
| |||
Year ending December 31, | | | | | | | |
2022
|
| | | $ | 483 | | |
2023
|
| | | | 494 | | |
2024
|
| | | | 506 | | |
2025
|
| | | | 518 | | |
Thereafter
|
| | | | 665 | | |
Total minimum lease payments
|
| | | $ | 2,666 | | |
| | |
Amount
|
| |||
Securities and Exchange Commission registration fee
|
| | | $ | 4,429.00 | | |
Nasdaq Capital Market listing fees
|
| | | | 55,025.00 | | |
Accountants’ fees and expenses
|
| | | | 362,998.00 | | |
Legal fees and expenses
|
| | | | 200,000.00 | | |
Printing and engraving expenses
|
| | | | 20,000.00 | | |
Miscellaneous
|
| | | | 36,000.00 | | |
Total expenses
|
| | | $ | 678,452.00 | | |
| | 1.1 | | | | Form of Underwriting Agreement*** | |
| | 3.1 | | | | | |
| | 3.2 | | | | | |
| | 3.3 | | | | | |
| | 3.4 | | | | | |
| | 3.5 | | | | | |
| | 4.1 | | | | | |
| | 4.2 | | | | | |
| | 4.3 | | | | | |
| | 5.1 | | | | | |
| | 10.1 | | | | | |
| | 10.2 | | | | | |
| | 10.3 | | | | Employment Agreement between Dr. Liang Lance Zhou and Phoenix Cars LLC dated March 21, 2022** | |
| | 10.4 | | | | |
| | 10.5 | | | | | |
| | 10.6 | | | | | |
| | 10.7 | | | | | |
| | 10.8 | | | | | |
| | 10.9 | | | | | |
| | 10.10 | | | | | |
| | 10.11 | | | | | |
| | 10.12 | | | | | |
| | 10.13 | | | | | |
| | 10.14 | | | | Form of Indemnification Escrow Agreement*** | |
| | 14.1 | | | | | |
| | 21.1 | | | | | |
| | 23.1 | | | | | |
| | 24.1 | | | | | |
| | 99.1 | | | | | |
| | 99.2 | | | | | |
| | 99.3 | | | | | |
| | 99.4 | | | | | |
| | 99.5 | | | | | |
| | 99.6 | | | | Consent of Steven E. Stivers to be named a director* | |
| | 99.7 | | | | | |
| | 107 | | | | |
| | | | PHOENIX MOTOR INC. | | |||
| | | |
By:
/s/ Liang Lance Zhou
Name: Liang Lance Zhou
Title: Chief Executive Officer (principal executive officer) |
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Liang Lance Zhou
Liang Lance Zhou
|
| |
Chief Executive Officer and Director
(principal executive officer) |
| | April 19, 2022 | |
|
/s/ Chris Wang
Chris Wang
|
| |
Chief Financial Officer
(principal financial and accounting officer) |
| | April 19, 2022 | |
|
/s/ Tarek Helou
Tarek Helou
|
| | Chief Operating Officer | | | April 19, 2022 | |
|
/s/ Denton Peng
Denton Peng
|
| | Chairman and Director | | | April 19, 2022 | |
|
/s/ HoongKhoeng Cheong
HoongKhoeng Cheong
|
| | Director | | | April 19, 2022 | |