(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Exhibit No. | Exhibit Title | |||||||
99.1 |
CARLOTZ, INC. | ||||||||
Dated: May 9, 2022 | By: | /s/ Rebecca C. Polak | ||||||
Name: | Rebecca C. Polak | |||||||
Title: | Chief Commercial Officer and General Counsel |
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 75,328 | $ | 75,029 | |||||||
Restricted cash | 4,011 | 4,336 | |||||||||
Marketable securities – at fair value | 74,109 | 116,589 | |||||||||
Accounts receivable, net | 6,922 | 8,206 | |||||||||
Inventories | 46,095 | 40,985 | |||||||||
Other current assets | 10,741 | 4,705 | |||||||||
Total Current Assets | 217,206 | 249,850 | |||||||||
Marketable securities – at fair value | 971 | 1,941 | |||||||||
Property and equipment, net | 13,042 | 22,628 | |||||||||
Capitalized website and internal-use software costs, net | 13,385 | 13,716 | |||||||||
Operating lease assets | 49,608 | — | |||||||||
Finance lease assets, net | 11,811 | — | |||||||||
Lease vehicles, net | 2,223 | 1,596 | |||||||||
Other assets | 553 | 558 | |||||||||
Total Assets | $ | 308,799 | $ | 290,289 | |||||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||
Current Liabilities: | |||||||||||
Current portion of finance lease liabilities | $ | 560 | $ | 509 | |||||||
Floor plan notes payable | 22,052 | 27,815 | |||||||||
Accounts payable | 7,914 | 6,352 | |||||||||
Accrued transaction expenses | — | — | |||||||||
Accrued expenses | 14,369 | 14,428 | |||||||||
Current portion of operating lease liabilities | 6,810 | — | |||||||||
Other current liabilities | 662 | 754 | |||||||||
Total Current Liabilities | 52,367 | 49,858 | |||||||||
Finance lease liabilities, less current portion | 12,080 | 12,206 | |||||||||
Operating lease liabilities, less current portion | 45,076 | — | |||||||||
Earnout shares liability | 3,650 | 7,679 | |||||||||
Merger warrants liability | 4,691 | 6,291 | |||||||||
Other liabilities | 651 | 744 | |||||||||
Total Liabilities | 118,515 | 76,778 | |||||||||
Commitments and Contingencies (Note 15) | — | — | |||||||||
Stockholders’ Equity (Deficit): | |||||||||||
Common stock, $0.0001 par value; 500,000,000 authorized shares, 114,111,796 and 113,996,401 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 11 | 11 | |||||||||
Additional paid-in capital | 289,191 | 287,509 | |||||||||
Accumulated deficit | (98,752) | (73,916) | |||||||||
Accumulated other comprehensive (loss) income | (166) | (93) | |||||||||
Total Stockholders’ Equity (Deficit) | 190,284 | 213,511 | |||||||||
Total Liabilities and Stockholders’ Equity (Deficit) | $ | 308,799 | $ | 290,289 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenues: | |||||||||||
Retail vehicle sales | $ | 50,588 | $ | 50,383 | |||||||
Wholesale vehicle sales | 8,575 | 4,568 | |||||||||
Finance and insurance, net | 3,705 | 1,554 | |||||||||
Lease income, net | 146 | 107 | |||||||||
Total Revenues | 63,014 | 56,612 | |||||||||
Cost of sales (exclusive of depreciation) | 60,936 | 54,604 | |||||||||
Gross Profit | 2,078 | 2,008 | |||||||||
Operating Expenses: | |||||||||||
Selling, general and administrative | 27,674 | 18,873 | |||||||||
Stock-based compensation expense | 1,684 | 41,963 | |||||||||
Depreciation and amortization expense | 1,789 | 383 | |||||||||
Management fee expense – related party | — | 2 | |||||||||
Impairment expense | — | — | |||||||||
Total Operating Expenses | 31,147 | 61,221 | |||||||||
Loss from Operations | (29,069) | (59,213) | |||||||||
Interest expense | 617 | 175 | |||||||||
Other Income, net | |||||||||||
Change in fair value of Merger warrants liability | 1,600 | 12,358 | |||||||||
Change in fair value of earnout shares | 4,029 | 31,846 | |||||||||
Other income (expense) | (779) | 162 | |||||||||
Total Other Income, net | 4,850 | 44,366 | |||||||||
Loss Before Income Tax Expense | (24,836) | (15,022) | |||||||||
Income tax expense | — | — | |||||||||
Net Loss | $ | (24,836) | $ | (15,022) | |||||||
Net Loss per Share, basic and diluted | $ | (0.22) | $ | (0.15) | |||||||
Weighted-average Shares used in Computing Net Loss per Share, basic and diluted | 114,054,597 | 100,817,385 | |||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flow from Operating Activities | |||||||||||
Net loss | $ | (24,836) | $ | (15,022) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Depreciation and amortization – property, equipment, ROU assets and capitalized software | 4,097 | 105 | |||||||||
Amortization and accretion - marketable securities | 440 | 238 | |||||||||
Depreciation – lease vehicles | 85 | 15 | |||||||||
Loss on marketable securities | — | — | |||||||||
Provision for doubtful accounts | (30) | — | |||||||||
Stock-based compensation expense | 1,684 | 41,963 | |||||||||
Change in fair value of Merger warrants liability | (1,600) | (12,358) | |||||||||
Change in fair value of earnout shares | (4,029) | (31,846) | |||||||||
Change in Operating Assets and Liabilities: | |||||||||||
Accounts receivable | 1,314 | (5,192) | |||||||||
Inventories | (5,110) | 1,991 | |||||||||
Other current assets | (6,036) | (5,868) | |||||||||
Other assets | 5 | (3,038) | |||||||||
Accounts payable | 1,562 | 3,140 | |||||||||
Accrued expenses | 975 | 6,187 | |||||||||
Accrued expenses – related party | — | (229) | |||||||||
Other current liabilities | (92) | 559 | |||||||||
Other liabilities | (93) | (245) | |||||||||
Net Cash Used in Operating Activities | (31,664) | (19,600) | |||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of property and equipment | (4,091) | (586) | |||||||||
Capitalized website and internal-use software costs | (611) | (1,154) | |||||||||
Purchase of marketable securities | (21,974) | (217,689) | |||||||||
Proceeds from sales of marketable securities | 64,917 | 59 | |||||||||
Purchase of lease vehicles | (712) | — | |||||||||
Net Cash (Used in) Provided by Investing Activities | 37,529 | (219,370) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Payments made on finance leases | (126) | — | |||||||||
PIPE issuance | — | 125,000 | |||||||||
Merger financing | — | 309,999 | |||||||||
Payment made on accrued dividends | — | (4,853) | |||||||||
Payments to existing shareholders of Former CarLotz | — | (62,693) |
Transaction costs and advisory fees | — | (47,579) | |||||||||
Payments made on cash considerations associated with stock options | — | (2,465) | |||||||||
Repayment of Paycheck Protection Program loan | — | (1,749) | |||||||||
Payments made on note payable | — | (3,000) | |||||||||
Payments on floor plan notes payable | (41,728) | (11,150) | |||||||||
Borrowings on floor plan notes payable | 35,965 | 9,236 | |||||||||
Payments made for tax on equity award transactions | (2) | — | |||||||||
Net Cash (Used in) Provided by Financing Activities | (5,891) | 310,746 | |||||||||
Net Change in Cash and Cash Equivalents Including Restricted Cash | (26) | 71,776 | |||||||||
Cash and cash equivalents and restricted cash, beginning | 79,365 | 2,813 | |||||||||
Cash and cash equivalents and restricted cash, ending | $ | 79,339 | $ | 74,589 | |||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest | $ | 615 | $ | 402 | |||||||
Supplementary Schedule of Non-cash Investing and Financing Activities: | |||||||||||
Transfer from lease vehicles to inventory | $ | — | $ | 100 | |||||||
KAR/AFC exercise of stock warrants | — | (144) | |||||||||
KAR/AFC conversion of notes payable | — | (3,625) | |||||||||
Convertible redeemable preferred stock tranche obligation expiration | — | (2,832) | |||||||||
Capitalized website and internal use software costs accrued | — | (1,400) | |||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | Change | Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Retail vehicle sales | $ | 50,588 | $ | 50,383 | $ | 205 | — | % | |||||||||||||||
Wholesale vehicle sales | 8,575 | 4,568 | 4,007 | 88 | % | ||||||||||||||||||
Finance and insurance, net | 3,705 | 1,554 | 2,151 | 138 | % | ||||||||||||||||||
Lease income, net | 146 | 107 | 39 | 36 | % | ||||||||||||||||||
Total revenues | 63,014 | 56,612 | 6,402 | 11 | % | ||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Retail vehicle cost of sales | $ | 52,415 | $ | 48,917 | $ | 3,498 | 7 | % | |||||||||||||||
Wholesale vehicle cost of sales | 8,521 | 5,687 | 2,834 | 50 | % | ||||||||||||||||||
Total cost of sales | $ | 60,936 | $ | 54,604 | $ | 6,332 | 12 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Retail vehicle gross profit (loss) | $ | (1,827) | $ | 1,466 | $ | (3,293) | (225) | % | |||||||||||||||
Wholesale vehicle gross profit (loss) | 54 | (1,119) | 1,173 | 105 | % | ||||||||||||||||||
Finance and insurance gross profit | 3,705 | 1,554 | 2,151 | 138 | % | ||||||||||||||||||
Lease income, net | 146 | 107 | 39 | 36 | % | ||||||||||||||||||
Total gross profit | $ | 2,078 | $ | 2,008 | $ | 70 | 3 | % | |||||||||||||||
Retail gross profit per unit(1): | |||||||||||||||||||||||
Retail vehicle gross profit (loss) | $ | (1,827) | $ | 1,466 | $ | (3,293) | (225) | % | |||||||||||||||
Finance and insurance gross profit | 3,705 | 1,554 | 2,151 | 138 | % | ||||||||||||||||||
Total retail vehicle and finance and insurance gross profit | 1,878 | 3,020 | (1,142) | (38) | % | ||||||||||||||||||
Retail vehicle unit sales | 2,270 | 2,554 | (284) | (11) | % | ||||||||||||||||||
Retail vehicle gross profit per unit | $ | 827 | $ | 1,182 | $ | (355) | (30) | % |
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Net Loss | $ | (24,836) | $ | (15,022) | $ | (9,814) | |||||||||||
Adjusted to exclude the following: | |||||||||||||||||
Interest expense | 617 | 175 | 442 | ||||||||||||||
Income tax expense | — | — | — | ||||||||||||||
Depreciation and amortization expense | 1,789 | 383 | 1406 | ||||||||||||||
EBITDA | $ | (22,430) | $ | (14,464) | $ | (7,966) | |||||||||||
Other expense | 779 | (162) | 941 | ||||||||||||||
Stock compensation expense | 1,684 | 41,963 | (40,279) | ||||||||||||||
Management fee expense - related party | — | 2 | (2) | ||||||||||||||
Change in fair value of warrants liability | (1,600) | (12,358) | 10,758 | ||||||||||||||
Change in fair value of earnout provision | (4,029) | (31,846) | 27,817 | ||||||||||||||
Adjusted EBITDA | $ | (25,596) | $ | (16,865) | $ | (8,731) |
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