EX-99.3 4 d416454dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Unless otherwise defined herein, defined terms included below have the same meaning as terms defined and included in the proxy statement/prospectus dated November 14, 2022 and filed with the Securities and Exchange Commission by InterPrivate II on November 16, 2022 (the “proxy statement/prospectus”).

Introduction

InterPrivate II is providing the following unaudited pro forma condensed combined financial information to aid InterPrivate II’s stockholders in their analysis of the financial aspects of the Business Combination. The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X. The following unaudited pro forma condensed combined financial information presents the pro forma effects of the following transactions:

 

   

The Business Combination;

 

   

The issuance of an additional $18.2 million aggregate principal amount of Getaround 2022 Bridge Notes after the September 30, 2022 balance sheet date;

 

   

The issuance of $2.0 million principal amount of Subordinated Promissory Note to a related party after the September 30, 2022, balance sheet date; and

 

   

The issuance of $175.0 million of Convertible Notes and related $3.5 million of Convertible Notes Warrants in the Convertible Notes Financing;

The unaudited pro forma condensed combined balance sheet as of September 30, 2022 combines the historical balance sheet of InterPrivate II and the historical balance sheet of Getaround for such period on a pro forma basis as if the Business Combination had been consummated on September 30, 2022.

The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2022 and for the year ended December 31, 2021 combines the historical statements of operations of InterPrivate II and Getaround for such period on a pro forma basis as if the Business Combination had been consummated on January 1, 2021.

The unaudited pro forma condensed combined financial information has been presented for illustrative purposes only and is not necessarily indicative of the financial position and results of operations that would have been achieved had the Business Combination occurred on the dates indicated. The unaudited pro forma condensed combined financial information may not be useful in predicting the future financial condition and results of operations of the post-combination company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The unaudited pro forma adjustments represent management’s estimates based on information available as of the date of the unaudited pro forma condensed combined financial information and is subject to change as additional information becomes available and analyses are performed. This information should be read together with InterPrivate II’s and Getaround’s unaudited and audited financial statements and related notes, the sections titled “InterPrivate II Managements Discussion and Analysis of Financial Condition and Results of Operations” and “Getarounds Managements Discussion and Analysis of Financial Condition and Results of Operations,” Getaround’s unaudited financial statements and related notes and Management’s Discussion and Analysis included in Exhibits 99.1 and 99.2, respectively, to the Form 8-K, InterPrivate II’s unaudited financial statements and related notes and Management’s Discussion and Analysis included in the Form 10-Q for the quarter ended September 30, 2022 filed with the SEC on November 15, 2022 (the “IPV II Form 10-Q”), and other financial information included in the Form 8-K and the proxy statement/prospectus.

Under both the no redemptions and contractual maximum redemption scenarios, the Business Combination will be accounted for as a reverse capitalization in accordance with GAAP. Under the guidance in ASC 805, InterPrivate II has been determined to be the “acquired” company for financial reporting purposes. Accordingly, the Business Combination will be treated as the equivalent of Getaround issuing stock for the net assets of InterPrivate II, accompanied by a recapitalization whereby the net assets of InterPrivate II will be stated at historical cost and no goodwill or other intangible assets will be recorded. Operations prior to the Business Combination will be those of Getaround.


Getaround was determined to be the accounting acquirer based on an evaluation of the following facts and circumstances under both the no redemption and contractual maximum redemption scenarios:

 

   

Getaround will comprise the ongoing operations of the combined company;

 

   

Getaround’s senior management will comprise the senior management of the combined company;

 

   

Getaround will control a majority of the initial Board of Directors;

 

   

The post-combination company will assume the Getaround name; and

 

   

Getaround equityholders will have a majority voting interest in the post-combination company.

The unaudited pro forma condensed combined financial information has been prepared using the assumptions below with respect to the potential redemption of Public Shares for cash:

 

   

Assuming No Redemptions — This presentation assumes that none of the InterPrivate II stockholders exercises redemption rights with respect to its Public Shares for a pro rata portion of the funds in the Trust Account.

 

   

Assuming Maximum Redemptions — This presentation assumes that InterPrivate II stockholders holding 25,496,400 Public Shares exercise their redemption rights and that such Public Shares are redeemed for their pro rata share (approximately $10.00 per share) of the funds in the Trust Account for aggregate redemption proceeds of $255.0 million, which represents the maximum amount of redemptions that would still enable InterPrivate II to have sufficient cash to satisfy the minimum cash closing condition in the Merger Agreement. Under the Merger Agreement, the consummation of the Business Combination is conditioned upon, among other things, the net tangible assets of InterPrivate II being at least $5.0 million following the exercise by the holders of Public Shares of their redemption rights. It is also a condition to Getaround’s obligation to close the Business Combination that the Parent Available Cash, including the amount in the Trust Account, after giving effect to redemptions of Public Shares, must not be less than $225.0 million.

Description of the Business Combination

Pursuant to the Merger Agreement, the aggregate share consideration to be issued by New Getaround in the Business Combination in the no redemption scenario will be $1,197.3 million, consisting of 87,188,470 newly issued shares of New Getaround common stock valued at $10.00 per share and 32,543,750 previously issued Class A Stock retained by InterPrivate II stockholders. Of the $1,197.3 million in aggregate share consideration, the InterPrivate II stockholders, including the Public Stockholders and Initial Stockholders, will retain $325.4 million of 32,543,750 previously issued shares of Class A Stock; the holders of the Getaround 2022 Bridge Notes will receive $71.9 million in the form of 7,188,465 newly issued shares of New Getaround common stock; and the Getaround equityholders will receive an aggregate of $800.0 million in the form of 80,000,000 newly issued shares of New Getaround common stock, inclusive of 9,333,333 Bonus Shares, issued in respect of all outstanding shares of Getaround Common Stock, including shares of Getaround Common Stock issued upon exercise of Getaround Warrants that are exercisable in accordance with their terms for Getaround Capital Stock and conversion of Getaround Preferred Stock, Getaround non-voting common stock and convertible notes other than the Getaround 2022 Bridge Notes, in each case immediately prior to the consummation of the Business Combination, all outstanding in-the-money vested Getaround Options that will be converted into the right to receive shares of New Getaround common stock and all outstanding Getaround 2021 Bridge Notes that will convert in accordance with their terms into shares of Class A Stock. InterPrivate II and Getaround have agreed to reserve in escrow 9,333,333 shares of Class A Stock of the 80.0 million shares constituting the aggregate transaction consideration for distribution as Bonus Shares promptly following the Closing to the Bonus Share Recipients. The Bonus Shares will be apportioned pro rata to each Bonus Share Recipient based on the number of shares of Class A Stock that remain outstanding after giving effect to redemptions and automatic conversion of the Founder Shares into shares of Class A Stock. However, the Initial Stockholders expect to re-allocate to the Getaround equityholders the Excess Shares. In the event of such re-allocation, the Initial Stockholders would not receive a proportionally greater share of the Bonus Shares if any Public Stockholders elect to redeem, and the number of Bonus Shares distributed to the Initial Stockholders would be a fixed amount equal to 1,912,549 Bonus Shares. The non-redeeming Public Stockholders will be entitled to receive between approximately 0.2867934 Bonus Shares (assuming the no redemptions scenario) and approximately 1.3063387 Bonus Shares (assuming the contractual maximum redemption scenario) for each outstanding share of Class A Stock held at the Closing. Any additional Bonus Shares received by a Bonus Share Recipient will be rounded down to the nearest whole number of shares of Class A stock.


The following represents the share consideration to be paid at the Closing under both the no redemption and contractual maximum redemption scenarios (in thousands):

 

     Assuming No
Redemptions
     Assuming Maximum
Redemptions
 

New Getaround common stock retained by InterPrivate II
stockholders

   $ 325,438      $ 70,474  

New Getaround common stock issued to 2022 Bridge
Noteholders

     71,885        71,885  

New Getaround common stock held in escrow (Bonus Shares)(1)(2)

     93,333        93,333  

New Getaround common stock issued to Getaround equityholders(1)

     706,667        706,667  
  

 

 

    

 

 

 

Share Consideration – at Closing

   $ 1,197,323      $ 942,359  
  

 

 

    

 

 

 

 

(1)

The Merger Agreement included in the Form 8-K and the proxy statement/prospectus includes Aggregate Merger Consideration to Getaround equity holders based on a Base Purchase Price of $800.0 million.

(2)

Assuming no redemptions, $74.2 million and $19.1 million of Bonus Shares are allocated to non-redeeming Public Stockholders and Initial Stockholders of InterPrivate II, respectively. Assuming maximum redemptions, $6.2 million and $19.1 million of Bonus Shares are allocated to non-redeeming Public Stockholders and Initial Stockholders of InterPrivate II, respectively and the remaining $68.0 million of Bonus Shares are allocated to Getaround equityholders.

The value of share consideration issuable at the Closing is assumed to be $10.00 per share. The Business Combination is accounted for as a reverse recapitalization, therefore any change in the trading price of New Getaround common stock will not impact the pro forma financial statements because New Getaround will account for the acquisition of InterPrivate II based upon the amount of net assets acquired upon consummation.

The following summarizes the pro forma shares of New Getaround common stock outstanding under the two scenarios:

 

     Assuming No
Redemptions
     Assuming Maximum
Redemptions
 

New Getaround common stock retained by InterPrivate II stockholders(1)

     32,543,750        7,047,350  

New Getaround common stock issued to 2022 Bridge Noteholders

     7,188,465        7,188,465  

New Getaround common stock held in escrow (Bonus Shares) (2)

     9,333,333        9,333,333  

New Getaround common stock issued to Getaround equityholders(3)(4)

     70,666,672        70,666,672  
  

 

 

    

 

 

 

Pro Forma Common Stock at Closing

     119,732,220        94,235,820  
  

 

 

    

 

 

 

 

(1)

Excludes 5,175,000 Public Warrants, 4,616,667 Private Warrants and 2,800,000 Convertible Notes Warrants.

(2)

Assuming no redemptions, 7,420,779 and 1,912,554 Bonus Shares are allocated to non-redeeming Public Stockholders and Initial Stockholders of InterPrivate II, respectively. Assuming maximum redemptions, 621,687 and 1,912,554 Bonus Shares are allocated to non-redeeming Public Stockholders and Initial Stockholders of InterPrivate II, respectively, and 6,799,092 Bonus Shares are allocated to Getaround equityholders, respectively.

(3)

Excludes an aggregate of 3,794,610 outstanding Getaround shares underlying outstanding Getaround Options and Getaround RSUs that are unvested as of September 30, 2022, or Getaround Options that are vested as of September 30, 2022 and out-of-the-money.

(4)

Excludes 34,000,000 Earnout Shares and 11,000,000 Incentive Earnout Shares.


The unaudited pro forma adjustments are based on information currently available, assumptions, and estimates underlying the unaudited pro forma adjustments and are described in the accompanying notes. Actual results may differ materially from the assumptions used to present the accompanying unaudited pro forma condensed combined financial information.

Accounting for the Earnout Shares, and Incentive Earnout Shares and Bonus Shares

Following the Closing, in addition to the share consideration to be paid at the Closing, Getaround Stockholders, the holders of Getaround 2021 Bridge Notes and the holders of in-the-money vested Getaround Options (the “Earnout Recipients”) will be entitled to receive their pro rata share of an additional aggregate 34,000,000 Earnout Shares upon satisfaction of certain stock price performance conditions during the period following the Closing Date and expiring on the seventh anniversary of the Closing Date. During the same period, certain Getaround employees will be entitled to receive 11,000,000 additional Earnout Shares (the “Incentive Earnout Shares”) under the 2022 Equity Incentive Plan upon satisfaction of the same stock price performance conditions. It is not yet known what the terms of the Incentive Earnout Share awards will be or what form of award will be issued.

The issuance of the Earnout Shares and Incentive Earnout Shares are anticipated to be accounted for as equity transactions. Because the Earnout Shares are payable to the Earnout Recipients (i.e., equityholders of the accounting acquirer in the Business Combination) and the Incentive Earnout Shares are payable to Getaround employees, the accounting for the Earnout Shares and Incentive Earnout Shares arrangements do not fall under Accounting Standards Codification (“ASC”) Topic 805.

The accounting for the Earnout Shares and Incentive Earnout Shares were also evaluated under ASC 480, and the Incentive Earnout Shares further evaluated under ASC 718 to determine if the arrangements should be classified as either a liability or equity. As part of that preliminary analysis, it was determined that both arrangements are free-standing and these instruments will be classified as equity. Therefore, while the Earnout Shares will be recognized at fair value upon the consummation of the Business Combination, currently estimated at $6.5 million this adjustment will have no net impact on any financial statement line item as it would simultaneously increase and decrease additional paid-in capital. Thus, no adjustment has been applied to the unaudited pro forma condensed combined balance sheet related to the Earnout Shares. Further, as the terms of the Incentive Earnout Shares, with an estimated fair value of $2.1 million, are not yet known, there have been no adjustments recognized within the unaudited pro forma condensed financial statements.

Getaround has preliminarily concluded the Bonus Shares allocated certain designees of EarlyBirdCapital, Inc., one of the underwriters in InterPrivate II’s initial public offering, and the holders of the Class B Stock including the Sponsor and the independent directors of InterPrivate II (“Initial Stockholders Bonus Shares”) will be expensed. The allocation of Bonus Shares to holders of Class A Stock was designed to minimize redemptions. However, the shares held by EarlyBirdCapital and by holders of Class B Stock are not subject to redemption, thus the Bonus Shares allocated to these holders is presumed to be non-cash compensation to close the Business Combination. This treatment is based on preliminary interpretation on Staff Accounting Bulletin “SAB” Topic 5.T.


UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF SEPTEMBER 30, 2022

(in thousands)

 

    As of September 30, 2022  
    InterPrivate II
(Historical)
(US GAAP)
    Getaround
(Historical)
(US GAAP)
    Getaround
Transaction
Adjustments
          Combined     Transaction
Adjustments
(Assuming
No Redemptions)
        Pro Forma
Combined
(Assuming
No Redemptions)
    Additional
Transaction
Adjustments
(Assuming
Maximum
Redemptions)
    Combined
Pro Forma
Combined
(Assuming
Maximum
Redemptions)
 
                                                           
    (in thousands)  

Assets

                   

Current Assets

                   

Cash and cash equivalents

  $ 40     $ 27,216     $ 18,200       A     $ 47,456     $ 260,208     B   $ 371,421     $ (254,964   S $ 116,457  
        2,000       V         (18,093   C      
              (6,575   E      
              169,750     N      
              (81,325   O      

Restricted cash

    —         3,600       —           3,600       —           3,600       —         3,600  

Accounts receivable, net

    —         439       —           439       —           439       —         439  

Prepaid income taxes

    —         —         —           —         —           —         —         —    

Prepaid expenses and other current assets

    126       7,035       —           7,161       (2,907   C     4,128       —         4,128  
              126     F      
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Current Assets

    166       38,290       20,200         58,656       320,932         379,588       (254,964     124,624  

Marketable securities held in Trust Account

    260,208       —         —           260,208       (260,208   B     —           —    

Property and Equipment, Net

    —         10,678       —           10,678       —           10,678       —         10,678  

Operating Lease Right-of-Use Assets, Net

    —         13,407       —           13,407       —           13,407       —         13,407  

Goodwill

    —         105,957       —           105,957       —           105,957       —         105,957  

Intangible Assets, Net

    —         10,785       —           10,785       —           10,785       —         10,785  

Deferred Tax Assets

    —         3       —           3       —           3       —         3  

Other Assets

    —         1,745       —           1,745       —           1,745       —         1,745  
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Assets

  $ 260,374     $ 180,865     $ 20,200       $ 461,439     $ 60,724       $ 522,163     $ (254,964   $ 267,199  
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Liabilities, Mezzanine Equity and Stockholders’ (Deficit) Equity

                   

Current Liabilities

                   

Income tax payable

  $ —       $ —       $ —         $ —       $ —       E   $ —       $ —       $ —    

Related party payable

    439       —         —           439       (439   E     —         —         —    

Accounts payable

    6,136       10,472       —           16,608       6,136     E     10,472       —         10,472  

Accrued host payments and insurance fees

    —         13,510       —           13,510       —           13,510       —         13,510  

Operating lease liabilities, current

    —         1,828       —           1,828       —           1,828       —         1,828  

Notes payable, current

    —         38,425       —           38,425       (37,530   O     895       —         895  

Other accrued liabilities

    —         28,657       —           28,657       (11   G     26,586       —         26,586  
              (2,060   P      

Deferred revenue

    —         866       —           866       —           866       —         866  
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Current Liabilities

    6,575       93,758       —           100,333       (46,176       54,157       —         54,157  

Notes Payable, net of discount (net of current portion)

    —         40,111       2,000       V       42,111       (38,965   O     3,146       —         3,146  

Convertible Notes Payable

    —         54,312       18,200       A       72,512       (72,512   G     175,000       —         175,000  
              175,000     N      

Related Party Convertible Notes Payable

    —         8,869       —           8,869       (8,869   G     —         —         —    

Operating Lease Liabilities (net of current portion)

    —         18,101       —           18,101       —           18,101       —         18,101  

Deferred Tax Liabilities

    —         979       —           979       —           979       —         979  

Warrant Liability

    237       65,376       —           65,613       (65,376   H     3,737       —         3,737  
              3,500     N      
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Liabilities

  $ 6,812     $ 281,506     $ 20,200       $ 308,518     $ (53,398     $ 255,120     $ —       $ 255,120  


UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF SEPTEMBER 30, 2022

(in thousands)

 

    As of September 30, 2022  
Commitments and Contingencies                                                            
Mezzanine Equity                                                            

Class A common stock subject to possible redemption

    259,964       —         —         259,964       (259,964     I       —         —           —    

Series A convertible

    —         16,953       —         16,953       (16,953     J       —         —           —    

Series B convertible

    —         9,578       —         9,578       (9,578     J       —         —           —    

Series C convertible

    —         22,761       —         22,761       (22,761     J       —         —           —    

Series D convertible

    —         241,428       —         241,428       (241,428     J       —         —           —    

Series E convertible

    —         120,296       —         120,296       (120,296     J       —         —           —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Total Mezzanine Equity

    259,964       411,016       —         670,980       (670,980       —         —           —    
Stockholders’ (Deficit) Equity                                                            

New Getaround common stock

    —         —         —         —         3       I       12       (2     S       10  
            4       J          
            2       K          
            1       G          
            1       H          
            1       T          

Getaround common stock

    —         1       —         1       (1     K       —         —           —    

InterPrivate II class A common stock

    —         —         —         —         —           —         —           —    

InterPrivate II class B common stock

    1       —         —         1       (1     L       —         —           —    

Additional paid-in capital

    —         247,278       —         247,278       (21,000     C       1,016,976       (254,962     S       762,014  
            (126     F          
            56,425       G          
            65,375       H          
            259,961       I          
            411,012       J          
            (1     K          
            1       L          
            (6,403     M          
            (15,139     Q          
            468       R          
            19,125       T          

Stockholder notes

    —         (14,478     —         (14,478     14,478       D       —         —           —    

Treasury stock

    —         (661     —         (661     (14,478     D       —         —           —    
            15,139       Q          

Accumulated deficit

    (6,403     (726,527     —         (732,930     24,966       G       (732,675     —           (732,675
            6,403       M          
            (8,750     N          
            (4,830     O          
            2,060       P          
            (468     R          
            (19,126     T          

Accumulated other comprehensive income

    —         (17,270     —         (17,270     —           (17,270     —           (17,270
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Total Stockholders’ (Deficit) Equity

    (6,402     (511,657     —         (518,059     785,102         267,043       (254,964       12,079  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 

Total Liabilities, Mezzanine Equity and Stockholders’ (Deficit) Equity

  $ 260,374     $ 180,865     $ 20,200     $ 461,439     $ 60,724       $ 522,163     $ (254,964     $ 267,199  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

 


UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(in thousands, except share and per share data)

 

    For the Nine Months Ended September 30, 2022  
    InterPrivate II
(Historical)
(US GAAP)
    Getaround
(Historical)

(US GAAP)
    Getaround
Transaction
Adjustments
    Combined     Transaction
Adjustments
(Assuming No
Redemptions)
          Pro Forma
Combined
(Assuming No
Redemptions)
    Additional
Transaction
Adjustments
(Assuming
Maximum
Redemptions)
    Pro Forma
Combined
(Assuming
Maximum
Redemptions)
 

Service revenue

  $ —       $ 43,967     $ —       $ 43,967     $ —         $ 43,967     $ —       $ 43,967  

Lease revenue

    —         1,058       —         1,058       —           1,058       —         1,058  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Revenues

    —         45,025       —         45,025       —           45,025       —         45,025  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 
                                                       

Costs and Expenses

                 

Operating and formation costs

    5,404       —         —         5,404       —           5,404       —         5,404  

Related party administrative fees

    180       —         —         180       —           180       —         180  

Cost of revenue (exclusive of depreciation and amortization shown separately below):

                 

Service

    —         3,754       —         3,754       —           3,754       —         3,754  

Lease

    —         90       —         90       —           90       —         90  

Sales and marketing

    —         22,736       —         22,736       —           22,736       —         22,736  

Operations and support

    —         39,596       —         39,596       —           39,596       —         39,596  

Technology and product development

    —         13,374       —         13,374       —           13,374       —         13,374  

General and administrative

    —         38,665       —         38,665       —           38,665       —         38,665  

Depreciation and amortization

    —         7,670       —         7,670       —           7,670       —         7,670  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Operating Expenses

    5,584       125,885       —         131,469       —           131,469       —         131,469  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Loss From Operations

    (5,584     (80,860     —         (86,444     —           (86,444     —         (86,444

Other Income (Expense)

                 

Interest earned on marketable securities held in Trust Account

    824       —         —         824       (824     KK       —         —         —    

Unrealized loss on marketable securities held in Trust Account

    984       —         —         984       (984     PP       —         —         —    

Convertible promissory note fair value adjustment

    —         3,896       —         3,896       (3,896     MM       (12,469     —         (12,469
            (12,469     OO        

Warrant liability fair value adjustment

    3,878       (17,521     —         (13,643     17,521       LL       3,878       —         3,878  

Interest expense, net

    —         (7,903     —         (7,903     7,866       NN       (37     —         (37

Other income, net

    —         1,258       —         1,258       —           1,258       —         1,258  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Other Income (Expense)

    5,686       (20,270     —         (14,584     7,214         (7,370     —         (7,370
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Loss, before benefit for income taxes

    102       (101,130     —         (101,028     7,214         (93,814     —         (93,814

Income Tax Provision (Benefit)

    322       (547     —         (225     —           (225     —         (225
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Net Loss

    (220     (100,583     —         (100,803     7,214         (93,589     —         (93,589

Foreign Currency Translation Loss

    —         (19,553       (19,553     —           (19,553     —         (19,553
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Comprehensive Loss

  $ (220   $ (120,136   $ —       $ (120,356   $ 7,214       $ (113,142   $ —       $ (113,142
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding, basic and diluted

      71,169,000               119,732,220         94,235,820  
   

 

 

           

 

 

     

 

 

 

Basic and diluted net loss per common share

    $ (1.41           $ (0.78     $ (0.99
   

 

 

           

 

 

     

 

 

 

Weighted average redeemable shares outstanding, basic and diluted

    25,875,000                  
 

 

 

                 

Basic and diluted net income per redeemable share

  $ (0.01                
 

 

 

                 

Weighted average non-redeemable shares outstanding, basic and diluted

    6,668,750                  
 

 

 

                 

Basic and diluted net loss per non-redeemable share

  $ (0.01                
 

 

 

                 


UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2021

(in thousands, except share and per share data)

 

    For the Year Ended December 31, 2021  
    InterPrivate II
(Historical)
(US GAAP)
    Getaround
(Historical)
(US GAAP)
    Getaround
Transaction
Adjustments
    Combined     Transaction
Adjustments
(Assuming No
Redemptions)
          Pro Forma
Combined
(Assuming No
Redemptions)
    Additional
Transaction
Adjustments
(Assuming
Maximum
Redemptions)
    Pro Forma
Combined
(Assuming
Maximum
Redemptions)
 

Service revenue

  $ —       $ 61,120     $ —       $ 61,120     $ —         $ 61,120     $ —       $ 61,120  

Lease revenue

    —         1,947       —         1,947       —           1,947       —         1,947  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Revenues

    —         63,067       —         63,067       —           63,067       —         63,067  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Costs and Expenses

                 

Operating and formation costs

    1,986       —         —         1,986       —           1,986       —         1,986  

Related party administrative fees

    100       —         —         100       —           100       —         100  

Cost of revenue (exclusive of depreciation and amortization shown separately below):

                 

Service

    —         5,859       —         5,859       —           5,859       —         5,859  

Lease

    —         187       —         187       —           187       —         187  

Sales and marketing

    —         20,331       —         20,331       86       AA       20,417       —         20,417  

Operations and support

    —         46,978       —         46,978       86       AA       47,064       —         47,064  

Technology and product development

    —         17,800       —         17,800       115       AA       17,915       —         17,915  

General and administrative

    —         59,458       —         59,458       181       AA       78,765       —         78,765  
            19,126       II        

Depreciation and amortization

    —         12,815       —         12,815       —           12,815       —         12,815  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Total Operating Expenses

    2,086       163,428       —         165,514       19,594         185,108       —         185,108  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Loss From Operations

    (2,086     (100,361       (102,447     (19,594       (122,041     —         (122,041

Other Income (Expense)

                 

Offering costs attributable to warrant liabilities

    (7     —         —         (7     —           (7     —         (7

Interest earned on marketable securities held in Trust Account

    105       —         —         105       (105     BB       —         —         —    

Unrealized loss on marketable securities held in Trust Account

    (34     —         —         (34     34       CC       —         —         —    

Gain (Loss) on extinguishment of debt

    —         7,017       —         7,017       (25,471     FF       (18,454     —         (18,454

Convertible promissory note and securities fair value adjustment

    —         (5,383     —         (5,383     5,383       EE       (16,625     —         (16,625
            (16,625     HH        

Warrant liability fair value adjustment

    (599     (15,353     —         (15,952     15,353       DD       (599     —         (599

Interest expense, net

    —         (7,370     —         (7,370     (4.325     FF       (18,038     —         (18,038
            2,407       GG        
            (5,250     HH        
            (3,500     HH        

Other income, net

    —         916       —         916       —           916       —         916  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Loss, before benefit for income taxes

    (2,621     (120,534     —         (123,155     (51,693       (174,848     —         (174,848

Income Tax Benefit

    —         (471     —         (471     —           (471     —         (471
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Net Loss

    (2,621     (120,063     —         (122,684     (51,693       (174,377     —         (174,377

Foreign Currency Translation Loss

    —         (11,203     —         (11,203     —           (11,203     —         (11,203
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Comprehensive Loss

  $ (2,621   $ (131,266   $ —       $ (133,887   $ (51,693     $ (185,580   $ —       $ (185,580
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding, basic and diluted

      69,038,507               119,732,220         94,235,820  
   

 

 

           

 

 

     

 

 

 

Basic and diluted net loss per common share

    $ (1.74           $ (1.46     $ (1.85
   

 

 

           

 

 

     

 

 

 

Weighted average redeemable shares outstanding, basic and diluted

    21,125,342                  
 

 

 

                 

Basic and diluted net income per redeemable share

    (0.10                
 

 

 

                 

Weighted average non-redeemable shares outstanding, basic and diluted

    6,292,226                  
 

 

 

                 

Basic and diluted net loss per non-redeemable share

    (0.10                
 

 

 

                 


NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

1. Basis of Presentation

Under both the no redemption and contractual maximum redemption scenarios, the Business Combination will be accounted for as a reverse capitalization, in accordance with GAAP. Under the guidance in ASC 805, InterPrivate II has been determined to be the “acquired” company for financial reporting purposes. Accordingly, the Business Combination will be treated as the equivalent of Getaround issuing stock for the net assets of InterPrivate II, accompanied by a recapitalization whereby the net assets of InterPrivate II will be stated at historical cost and no goodwill or other intangible assets will be recorded. Operations prior to the Business Combination will be those of Getaround.

The unaudited pro forma condensed combined balance sheet as of September 30, 2022, assumes that the Business Combination occurred on September 30, 2022. The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2022, and for the year ended December 31, 2021, reflects pro forma effect to the Business Combination as if it had been completed on January 1, 2021. These periods are presented on the basis of Getaround as the accounting acquirer.

The unaudited pro forma condensed combined balance sheet as of September 30, 2022, has been prepared using, and should be read in conjunction with, the following:

 

   

InterPrivate II’s Condensed Balance Sheet (Unaudited) as of September 30, 2022, and the related Notes to Financial Statements, included in the IPV II Form 10-Q; and

 

   

Getaround’s Condensed Balance Sheet (Unaudited) as of September 30, 2022, and the related Notes to Financial Statements, included in Exhibit 99.1 to the Form 8-K.

The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2022, has been prepared using, and should be read in conjunction with, the following:

 

   

InterPrivate II’s Condensed Statements of Operations (Unaudited) for the nine months ended September 30, 2022, and the related Notes to Financial Statements, included in the IPV II Form 10-Q; and

 

   

Getaround’s Condensed Statements of Operations and Comprehensive Loss (Unaudited) for the nine months ended September 30, 2022, and the related Notes to Financial Statements, included in Exhibit 99.1 to the Form 8-K.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2021 has been prepared using, and should be read in conjunction with, the following:

 

   

InterPrivate II’s Statement of Operations for the Year Ended December 31, 2021 and the related Notes to Financial Statements, included in the Form 8-K and the proxy statement/prospectus; and

 

   

Getaround’s Statement of Operations and Comprehensive Loss for the Year Ended December 31, 2021 and the related Notes to Financial Statements, included in the Form 8-K and the proxy statement/prospectus.

Management has made significant estimates and assumptions in its determination of the pro forma adjustments. As the unaudited pro forma condensed combined financial information has been prepared based on these preliminary estimates, the final amounts recorded may differ materially from the information presented.

The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Business Combination.

The pro forma adjustments reflecting the consummation of the Business Combination are based on certain currently available information and certain assumptions and methodologies that InterPrivate II believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments and it is possible the difference may be material. InterPrivate II believes that its assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Business Combination based on information available to management at the time and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.


The unaudited pro forma condensed combined financial information is not necessarily indicative of what the actual results of operations and financial position would have been had the Business Combination taken place on the dates indicated, nor are they indicative of the future consolidated results of operations or financial position of the combined company. They should be read in conjunction with the historical financial statements and notes thereto of InterPrivate II and Getaround included in the Form 8-K and the proxy statement/prospectus, in Exhibit 99.1 to the Form 8-K and the IPV II Form 10-Q.

The following unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the Business Combination (“Transaction Accounting Adjustments”) and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur (“Management’s Adjustments”). InterPrivate II has elected not to present Management’s Adjustments and will only be presenting Transaction Accounting Adjustments in the following unaudited pro forma condensed combined financial information.

2. Accounting Policies

Upon consummation of the Business Combination, management will perform a comprehensive review of the accounting policies of the two entities. As a result of the review, management may identify differences between the accounting policies of the two entities which, when conformed, could have a material impact on the financial statements of the combined company. Based on its initial analysis, management did not identify any differences that would have a material impact on the unaudited pro forma condensed combined financial information. As a result, the unaudited pro forma condensed combined financial information does not assume any differences in accounting policies.

3. Adjustments to Unaudited Pro Forma Condensed Combined Financial Information

The unaudited pro forma condensed combined financial information has been prepared to illustrate the effect of the Business Combination and has been prepared for informational purposes only.

The pro forma combined provision for income taxes does not necessarily reflect the amounts that would have resulted had the combined company filed consolidated income tax returns during the periods presented.

The pro forma basic and diluted earnings per share amounts presented in the unaudited pro forma condensed combined statement of operations are based upon the number of the combined company’s shares outstanding, assuming the Business Combination occurred on January 1, 2021.

Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

The adjustments included in the unaudited pro forma condensed combined balance sheet as of September 30, 2022, are as follows:

Getaround Transaction Adjustments

 

  (A)

Reflects the additional issuance of $18.2 million aggregate principal amount of Getaround 2022 Bridge Notes to various purchasers. The Getaround 2022 Bridge Notes will be accounted for at fair value and will automatically convert upon the closing of transaction or series of transactions whereby a special purpose acquisition company acquires equity interests of Getaround and which transaction results in Getaround, or any parent company that directly or indirectly beneficially owns Getaround, being listed on a U.S. national securities exchange or market. Immediately prior to the closing of such transaction, the Getaround 2022 Bridge Notes will convert into shares of the special purpose acquisition company at a conversion price that is equal to 70% of the per share price of the special purpose acquisition company of $10.00 per share. For the purpose of the pro forma adjustment, the fair value of the Getaround 2022 Bridge Notes is assumed to be face value. As of the filing date hereof, $35.4 million of the Getaround 2022 Bridge Notes have been issued with the remaining $14.6 million expected to be issued prior to the consummation of the Business Combination.


  (V)

Reflects the issuance of $2.0 million principal amount of Subordinated Promissory Note issued to a related party in October 2022 to a related party. The Subordinated Promissory Note matures on October 30, 2023 with the principal and accrued interest, at a rate of 10% per annum, to be paid at maturity. No issuance costs were incurred and the note will be accounted for at cost. Upon the closing of the Business Combination the principal, accrued and unpaid interest, and a prepayment premium of 10% of the principal amount will be repaid and the debt extinguished. The related party is eligible for a transfer of 200,000 shares of Class A Stock promptly following the closing, conditioned upon the closing occurring and a new equity investment in Getaround of at least $2.0 million, the consideration for which may be the cancellation of the note. As the transfer of shares and cancellation of note are contingent upon a new equity investment, there have been no adjustments recognized within the unaudited pro forma condensed financial statements.

Transaction Adjustments (Assuming No Redemptions)

 

  (B)

Reflects the reclassification of $260.2 million of cash and investments held in the Trust Account that becomes available to fund the Business Combination.

 

  (C)

Reflects the capitalization of transaction costs, including deferred underwriter’s fees during InterPrivate II’s IPO and deferred legal fees incurred by Getaround, expected to be incurred in connection with the Business Combination.

 

  (D)

Reflects the exercise of Getaround’s call options to purchase shares of Getaround Common Stock related to outstanding promissory notes from certain Getaround Stockholders and an offsetting increase in treasury stock immediately prior to the consummation of the Business Combination. The exercise price of each option is equal to the outstanding principal plus accrued interest on the promissory notes. As such, upon exercise of the options, Getaround owes the stockholders the same amount owed on the loan with no cash exchanged between the parties and the stockholder paying income tax on the proceeds of the exercise.

 

  (E)

Reflects the cash payment of InterPrivate II’s outstanding related party payable, accounts payable, accrued expenses balances, and income tax payable upon consummation of the Business Combination.

 

  (F)

Reflects the capitalization of InterPrivate II’s prepaid expenses related to the Business Combination, recorded within equity upon completion of the Business Combination.

 

  (G)

Reflects the conversion of Getaround’s convertible notes and accrued interest that will be converted to equity as a result of the Business Combination. The adjustment recorded in Accumulated Deficit includes the expenses recognized related to loss on conversion of the convertible notes discussed in tick mark (FF).

 

  (H)

Reflects the cashless exercise of in-the-money Getaround Warrants for shares of Getaround Capital Stock immediately prior to the consummation of the Business Combination, which shares will be converted into Class A Stock.

 

  (I)

Reflects the reclassification of $260.0 million of Public Shares and Public Warrants from temporary equity to permanent equity as a result of the Business Combination.

 

  (J)

Reflects the conversion of Getaround Preferred Stock into shares of Getaround Common Stock immediately prior to the consummation of the Business Combination, which shares will be converted into Class A Stock.

 

  (K)

Reflects the conversion of Getaround Common Stock into Class A Stock.

 

  (L)

Reflects the conversion of Class B Stock into Class A Stock.

 

  (M)

Reflects the elimination of InterPrivate II historical retained earnings as a result of the reverse recapitalization.

 

  (N)

Reflects the issuance of $175.0 million aggregate principal amount of Convertible Notes and related $3.5 million of Convertible Notes Warrants, which will be issued pursuant to the Convertible Notes Subscription Agreement in connection with the Business Combination, and the cash payment of related issuance costs. The Convertible Notes will be accounted for at fair value. For the purpose of the pro forma adjustment, the fair value of the Convertible Notes is assumed to be face value. The adjustment recorded in Accumulated Deficit includes the expense recognized related to the issuance costs and issuance of the Convertible Notes Warrants.

 

  (O)

Reflects the repayment of the Deutsche Bank Loan principal, write off of the remaining unamortized issuance costs and debt discount, and the final fee payment in cash along with the repayment of the Subordinated Promissory Note and related prepayment premium as the notes will be extinguished in connection with the Business Combination and the issuance of the Convertible Notes. The adjustment recorded in Accumulated Deficit includes the expenses recognized related to writing off the remaining unamortized issuance costs and debt discount along with the final fee and prepayment premium payments.


  (P)

Reflects the reversal of the accrued interest and final fee payment that was previously recognized in connection with debt that will be either converted or extinguished as a result of the Business Combination.

 

  (Q)

Reflects the cancellation of Getaround treasury stock as a result of the Business Combination.

 

  (R)

Reflects the stock-based compensation expense related to Getaround RSUs that vest upon consummation of the Business Combination.

 

  (T)

Reflects the fair value of Initial Stockholders Bonus Shares that were preliminarily deemed compensatory consistent with SAB Topic 5.T.

Additional Transaction Adjustments (Assuming Maximum Redemptions)

 

  (S)

Reflects the redemption of 25,496,400 Public Shares for $254,964 at a redemption price of $10.00 per share.

Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2021, are as follows:

Transaction Adjustments (Assuming Both No Redemption and Maximum Redemption Scenarios)

 

  (AA)

Reflects the recognition of stock-based compensation expense of $468 thousand related to Getaround RSUs that vest upon the passage of time as well as the consummation of the Business Combination.

 

  (BB)

Reflects the reversal of interest income earned on marketable securities held in the Trust Account.

 

  (CC)

Reflects the reversal of the unrealized loss on marketable securities held in the Trust Account.

 

  (DD)

Reflects the reversal of the historical fair value adjustment for Getaround Warrants that would not have been outstanding had the Business Combination been consummated on January 1, 2021.

 

  (EE)

Reflects the reversal of the fair value adjustment for Getaround’s convertible debt which is to be converted to equity as a result of the Business Combination.

 

  (FF)

Reflects the expense to recognize the loss on conversion related to debt that will be either converted or extinguished as a result of the Business Combination, in addition to the final fee payment and prepayment premium expenses related to the extinguished Deutsche Bank Loan and Subordinated Promissory Note.

 

  (GG)

Reflects the reversal of the interest expense and amortization of debt discounts, issuance costs, and final payment fees related to debt that will be either converted or extinguished as a result of the Business Combination.

 

  (HH)

Reflects the recognition of issuance costs and a full year’s interest expense related to the issuance of the Convertible Notes, inclusive of the backstop fee and warrant issuance, as the pro forma issuance of the Convertible Notes is assumed to be January 1, 2021. The Convertible Notes accrue interest at a rate per annum equal to 8.0% with respect to interest paid in cash and 9.5% with respect to interest paid with equity (payment in kind). For the purpose of the pro forma adjustment, interest is assumed to be paid in kind and is assumed to be reflective of the estimated change in fair value of the Convertible Notes during the period.

 

  (II)

Reflects the fair value of Initial Stockholders Bonus Shares that were preliminarily deemed compensatory consistent with SAB Topic 5.T.

The pro forma adjustments included in the unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2022, are as follows:

Transaction Adjustments (Assuming Both No Redemptions and Maximum Redemption Scenarios)

 

  (KK)

Reflects the reversal of interest income earned on marketable securities held in the Trust Account.

 

  (LL)

Reflects the reversal of the historical fair value adjustment for Getaround Warrants that would not have been outstanding had the Business Combination been consummated on January 1, 2021.


  (MM)

Reflects the reversal of the fair value adjustment for Getaround’s convertible debt which is to be converted to equity as a result of the Business Combination.

 

  (NN)

Reflects the reversal of the interest expense and amortization of debt discounts, issuance costs, and final payment fees related to debt that will be either converted or extinguished as a result of the Business Combination.

 

  (OO)

Reflects the recognition of nine month’s interest expense related to the issuance of the Convertible Notes as the pro forma issuance of the Convertible Notes is assumed to be January 1, 2021. As noted in tick mark HH, for the purposes of the pro forma adjustment, interest is assumed to be paid in kind and is assumed to be reflective of the estimated change in fair value of the Convertible Notes during the period.

 

  (PP)

Reflects the reversal of the unrealized loss on marketable securities held in the Trust Account.


4. Loss per Share

Represents the net loss per share calculated using the historical weighted average shares outstanding, and the issuance of additional shares in connection with the Business Combination, assuming the shares were outstanding since January 1, 2021. As the Business Combination is being reflected as if it had occurred at the beginning of the period presented, the calculation of weighted average shares outstanding for basic and diluted net loss per share assumes that the shares issuable in connection with the Business Combination have been outstanding for the entire period presented. If the maximum number of Public Shares are redeemed, this calculation is retroactively adjusted to eliminate such shares for the entire period presented.

The unaudited pro forma condensed combined financial information has been prepared assuming two alternative levels of redemption for the nine months ended September 30, 2022, and for the year ended December 31, 2021 (in thousands, except share and per share amounts):

 

     Pro Forma Combined  
     (Assuming No
Redemptions)
    (Assuming
Maximum
Redemptions)
 

For the Nine Months Ended September 30, 2022

    

Pro forma net loss

   $ (93,589   $ (93,589

Pro forma net loss per share attributable to stockholders, basic and diluted (1)

   $ (0.78   $ (0.99

Weighted average shares outstanding, basic and diluted

     119,732,220       94,235,820  

Excluded Securities: (2)

    

Getaround Options and Getaround RSUs outstanding

     3,794,610       3,794,610  

Earnout Shares

     34,000,000       34,000,000  

Incentive Earnout Shares

     11,000,000       11,000,000  

Public Warrants

     5,175,000       5,175,000  

Private Warrants

     4,616,667       4,616,667  

Convertible Notes Warrants

     2,800,000       2,800,000  

For the Year Ended December 31, 2021

    

Pro forma net loss

   $ (174,377   $ (174,377

Pro forma net loss per share attributable to stockholders, basic and diluted (1)

   $ (1.46   $ (1.85

Weighted average shares outstanding, basic and diluted

     119,732,220       94,235,820  

Excluded Securities: (2)

    

Getaround Options and Getaround RSUs outstanding

     3,794,610       3,794,610  

Earnout Shares

     34,000,000       34,000,000  

Incentive Earnout Shares

     11,000,000       11,000,000  

Public Warrants

     5,175,000       5,175,000  

Private Warrants

     4,616,667       4,616,667  

Convertible Notes Warrants

     2,800,000       2,800,000  

 

(1)

Diluted loss per share is the same as basic loss per share for both scenarios presented because the effects of potentially dilutive instruments were anti-dilutive as a result of Getaround’s net loss.

(2)

The potentially dilutive outstanding securities were excluded from the computation of pro forma net loss per share, basic and diluted, because their effect would have been anti-dilutive, issuance or vesting of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the periods presented