(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: August 9, 2021 | By: | /s/ Rebecca C. Polak | ||||||
Name: | Rebecca C. Polak | |||||||
Title: | Chief Commercial Officer and General Counsel |
June 30, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 83,576 | $ | 2,208 | |||||||
Restricted cash | 226 | 605 | |||||||||
Marketable securities – at fair value | 175,424 | 1,032 | |||||||||
Accounts receivable, net | 5,411 | 4,132 | |||||||||
Inventories | 47,469 | 11,202 | |||||||||
Other current assets | 6,253 | 6,679 | |||||||||
Total Current Assets | 318,359 | 25,858 | |||||||||
Marketable securities – at fair value | 3,481 | — | |||||||||
Property and equipment, net | 11,662 | 1,868 | |||||||||
Capitalized software | 9,898 | — | |||||||||
Lease vehicles, net | 337 | 173 | |||||||||
Other assets | 4,390 | 299 | |||||||||
Total Assets | $ | 348,127 | $ | 28,198 | |||||||
Liabilities, Redeemable Convertible Preferred Stock, Stockholders’ Equity (Deficit) | |||||||||||
Current Liabilities: | |||||||||||
Long-term debt, current | $ | 212 | $ | 6,370 | |||||||
Floor plan notes payable | 29,427 | 6,039 | |||||||||
Accounts payable | 8,782 | 6,283 | |||||||||
Accrued transaction expenses | — | 6,052 | |||||||||
Accrued expenses | 13,238 | 3,563 | |||||||||
Accrued expenses – related party | — | 5,082 | |||||||||
Other current liabilities | 5,425 | 256 | |||||||||
Total Current Liabilities | 57,084 | 33,645 | |||||||||
Long-term debt, less current portion | 7,579 | 2,999 | |||||||||
Redeemable convertible preferred stock tranche obligation | — | 2,832 | |||||||||
Earnout provision | 30,228 | — | |||||||||
Merger warrant liability | 26,341 | — | |||||||||
Other liabilities | 1,232 | 1,959 | |||||||||
Total Liabilities | 122,464 | 41,435 | |||||||||
Commitments and Contingencies (Note 15) | — | — | |||||||||
Redeemable Convertible Preferred Stock: | |||||||||||
Series A Preferred Stock, $0.001 stated value; authorized 3,052,127 shares; after recapitalization there are no preferred shares issued or outstanding at June 30, 2021 and December 31, 2020 | — | — | |||||||||
Stockholders’ Equity (Deficit): | |||||||||||
Common stock, $0.0001 par value; 500,000,000 authorized shares, 113,670,060 and 58,621,042 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 11 | 6 | |||||||||
Additional paid-in capital | 281,976 | 20,779 | |||||||||
Accumulated deficit | (56,264) | (34,037) | |||||||||
Accumulated other comprehensive income | (60) | 15 | |||||||||
Treasury stock, $0.001 par value; after recapitalization there are no treasury shares issued or outstanding at June 30, 2021 and December 31, 2020 | — | — | |||||||||
Total Stockholders’ Equity (Deficit) | 225,663 | (13,237) | |||||||||
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | $ | 348,127 | $ | 28,198 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Retail vehicle sales | $ | 44,230 | $ | 23,652 | $ | 94,613 | $ | 44,694 | |||||||||||||||
Wholesale vehicle sales | 4,660 | 1,725 | 9,228 | 5,036 | |||||||||||||||||||
Finance and insurance, net | 1,780 | 895 | 3,334 | 1,787 | |||||||||||||||||||
Lease income, net | 98 | 127 | 205 | 272 | |||||||||||||||||||
Total Revenues | 50,768 | 26,399 | 107,380 | 51,789 | |||||||||||||||||||
Cost of sales (exclusive of depreciation) | 46,586 | 23,670 | 101,190 | 46,588 | |||||||||||||||||||
Gross Profit | 4,182 | 2,729 | 6,190 | 5,201 | |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Selling, general and administrative | 19,386 | 3,073 | 38,259 | 6,989 | |||||||||||||||||||
Stock-based compensation expense | 3,704 | 3 | 45,667 | 37 | |||||||||||||||||||
Depreciation and amortization expense | 95 | 91 | 478 | 191 | |||||||||||||||||||
Management fee expense – related party | — | 70 | 2 | 132 | |||||||||||||||||||
Total Operating Expenses | 23,185 | 3,237 | 84,406 | 7,349 | |||||||||||||||||||
Loss from Operations | (19,003) | (508) | (78,216) | (2,148) | |||||||||||||||||||
Interest Expense | 184 | 107 | 359 | 256 | |||||||||||||||||||
Other Income (Expense), net | |||||||||||||||||||||||
Change in fair value of merger warrants liability | 325 | — | 12,683 | — | |||||||||||||||||||
Change in fair value of redeemable convertible preferred stock tranche obligation | — | 345 | — | 629 | |||||||||||||||||||
Change in fair value of earnout provision | 12,210 | — | 44,056 | — | |||||||||||||||||||
Other income (expense) | (553) | 61 | (391) | 64 | |||||||||||||||||||
Total Other Income (Expense), net | 11,982 | 406 | 56,348 | 693 | |||||||||||||||||||
Loss Before Income Tax Expense | (7,205) | (209) | (22,227) | (1,711) | |||||||||||||||||||
Income tax expense | — | 4 | — | 9 | |||||||||||||||||||
Net Loss | $ | (7,205) | $ | (213) | $ | (22,227) | $ | (1,720) | |||||||||||||||
Net loss per share, basic and diluted | $ | (0.06) | $ | 0.00 | $ | (0.21) | $ | (0.03) | |||||||||||||||
Weighted-average shares used in computing net loss per share, basic and diluted | 113,670,060 | 58,621,041 | 107,279,227 | 58,621,041 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash Flow from Operating Activities | |||||||||||
Net loss | $ | (22,227) | (1,720) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||
Depreciation – property and equipment | 448 | 101 | |||||||||
Amortization and accretion - marketable securities | 788 | — | |||||||||
Depreciation – lease vehicles | 30 | 90 | |||||||||
Loss on marketable securities | — | (3) | |||||||||
Provision for doubtful accounts | — | 6 | |||||||||
Stock-based compensation expense | 45,667 | 37 | |||||||||
Change in fair value of Merger warrants liability | (12,683) | — | |||||||||
Change in fair value of historic warrants liability | — | (31) | |||||||||
Change in fair value of earnout shares | (44,056) | — | |||||||||
Change in fair value of debt issuance costs and stock warrant | — | 12 | |||||||||
Change in fair value of redeemable convertible preferred stock tranche obligation | — | (629) | |||||||||
Change in Operating Assets and Liabilities: | |||||||||||
Accounts receivable | (1,279) | (336) | |||||||||
Inventories | (36,117) | 5,064 | |||||||||
Other current assets | (5,466) | (39) | |||||||||
Other assets | (4,091) | 5 | |||||||||
Accounts payable | 2,499 | 719 | |||||||||
Accrued expenses | 6,187 | 1,048 | |||||||||
Accrued expenses – related party | (229) | 13 | |||||||||
Other current liabilities | 447 | 117 | |||||||||
Other liabilities | (582) | 248 | |||||||||
Net Cash (Used in)/Provided by Operating Activities | (70,664) | 4,702 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Purchase of property and equipment | (3,548) | (14) | |||||||||
Capitalized website and internal-use software costs | (6,601) | — | |||||||||
Purchase of marketable securities | (307,560) | (711) | |||||||||
Proceeds from sales of marketable securities | 128,954 | 21 | |||||||||
Purchase of lease vehicles | (344) | (87) | |||||||||
Net Cash Used in Investing Activities | (189,099) | (791) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Payments made on long-term debt | (18) | (5) | |||||||||
Advance from holder of marketable securities | 4,722 | — | |||||||||
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) | — | |||||||||
Borrowings on long-term debt | — | 2,249 | |||||||||
Payments on floor plan notes payable | (29,056) | (13,394) | |||||||||
Borrowings on floor plan notes payable | 52,444 | 8,598 | |||||||||
Net Cash Provided by/( Used in) Financing Activities | 340,752 | (2,552) | |||||||||
Net Change in Cash and Cash Equivalents Including Restricted Cash | 80,989 | 1,359 | |||||||||
Cash and cash equivalents and restricted cash, beginning | 2,813 | 4,102 | |||||||||
Cash and cash equivalents and restricted cash, ending | $ | 83,802 | $ | 5,461 | |||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest | $ | 490 | $ | 307 | |||||||
Supplementary Schedule of Non-cash Investing and Financing Activities: | |||||||||||
Transfer from lease vehicles to inventory | $ | 150 | $ | 199 | |||||||
Redeemable convertible preferred stock distributions accrued | — | 923 | |||||||||
Issuance of common stock warrants | — | 15 | |||||||||
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 | (3,488) | — | |||||||||
Purchases of property under capital lease obligation | (6,504) | — |
Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Retail vehicle sales | $ | 44,230 | $ | 23,652 | $ | 20,578 | 87 | % | |||||||||||||||
Wholesale vehicle sales | 4,660 | 1,725 | 2,935 | 170 | % | ||||||||||||||||||
Finance and insurance, net | 1,780 | 895 | 885 | 99 | % | ||||||||||||||||||
Lease income, net | 98 | 127 | (29) | (23) | % | ||||||||||||||||||
Total revenues | 50,768 | 26,399 | 24,369 | 92 | % | ||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Retail vehicle cost of sales | $ | 41,641 | $ | 21,991 | $ | 29,362 | 89 | % | |||||||||||||||
Wholesale vehicle cost of sales | 4,945 | 1,679 | 2,324 | 195 | % | ||||||||||||||||||
Total cost of sales | $ | 46,586 | $ | 23,670 | $ | 22,916 | 97 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Retail vehicle gross profit | $ | 2,589 | $ | 1,661 | $ | 928 | 56 | % | |||||||||||||||
Wholesale vehicle gross profit | (285) | 46 | (331) | 720 | % | ||||||||||||||||||
Finance and insurance gross profit | 1,780 | 895 | 885 | 99 | % | ||||||||||||||||||
Lease income, net | 98 | 127 | (29) | (23) | % | ||||||||||||||||||
Total gross profit | $ | 4,182 | $ | 2,729 | $ | 1,453 | 53 | % | |||||||||||||||
Retail gross profit per unit(1): | |||||||||||||||||||||||
Retail vehicles gross profit | $ | 2,589 | $ | 1,661 | $ | 928 | 55.9 | % | |||||||||||||||
Finance and insurance gross profit | 1,780 | 895 | 885 | 98.9 | % | ||||||||||||||||||
Total retail vehicles and finance and insurance gross profit | 4,369 | 2,556 | 1,813 | 70.9 | % | ||||||||||||||||||
Retail vehicles unit sales | 2,009 | 1,376 | 633 | 46.0 | % | ||||||||||||||||||
Retail vehicles gross profit per unit | $ | 2,175 | $ | 1,858 | $ | 317 | 17.1 | % | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | Change | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Retail vehicle sales | $ | 94,613 | $ | 44,694 | $ | 49,919 | 112 | % | |||||||||||||||
Wholesale vehicle sales | 9,228 | 5,036 | 4,192 | 83 | % | ||||||||||||||||||
Finance and insurance, net | 3,334 | 1,787 | 1,547 | 87 | % | ||||||||||||||||||
Lease income, net | 205 | 272 | (67) | (25) | % | ||||||||||||||||||
Total revenues | 107,380 | 51,789 | 55,591 | 107 | % | ||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Retail vehicle cost of sales | $ | 90,558 | $ | 41,546 | $ | 49,012 | 118 | % | |||||||||||||||
Wholesale vehicle cost of sales | 10,632 | 5,042 | 5,590 | 111 | % | ||||||||||||||||||
Total cost of sales | $ | 101,190 | $ | 46,588 | $ | 54,602 | 117 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Retail vehicle gross profit | $ | 4,055 | $ | 3,148 | $ | 907 | 29 | % | |||||||||||||||
Wholesale vehicle gross profit | (1,404) | (6) | (1,398) | 23,300 | % | ||||||||||||||||||
Finance and insurance gross profit | 3,334 | 1,787 | 1,547 | 87 | % | ||||||||||||||||||
Lease income, net | 205 | 272 | (67) | (25) | % | ||||||||||||||||||
Total gross profit | $ | 6,190 | $ | 5,201 | $ | 989 | 19 | % | |||||||||||||||
Retail gross profit per unit(1): | |||||||||||||||||||||||
Retail vehicles gross profit | $ | 4,055 | $ | 3,148 | $ | 907 | 29 | % | |||||||||||||||
Finance and insurance gross profit | 3,334 | 1,787 | 1,547 | 87 | % | ||||||||||||||||||
Total retail vehicles and finance and insurance gross profit | 7,389 | 4,935 | 2,454 | 50 | % | ||||||||||||||||||
Retail vehicles unit sales | 4,563 | 2,829 | 1,734 | 61 | % | ||||||||||||||||||
Retail vehicles gross profit per unit | $ | 1,619 | $ | 1,744 | $ | (125) | (7) | % | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
Net Loss | $ | (7,205) | $ | (213) | $ | (6,992) | $ | (22,227) | $ | (1,720) | $ | (20,507) | |||||||||||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||||||||||||||
Interest expense | 184 | 107 | 77 | 359 | 256 | 103 | |||||||||||||||||||||||||||||
Income tax expense | — | 4 | (4) | — | 9 | (9) | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 95 | 91 | 4 | 478 | 191 | 287 | |||||||||||||||||||||||||||||
EBITDA | $ | (6,926) | $ | (11) | $ | (6,915) | $ | (21,390) | $ | (1,264) | $ | (20,126) | |||||||||||||||||||||||
Other expense | 553 | (61) | 614 | 391 | (64) | 455 | |||||||||||||||||||||||||||||
Stock compensation expense | 3,704 | 3 | 3,701 | 45,667 | 37 | 45,630 | |||||||||||||||||||||||||||||
Management fee expense - related party | — | 70 | (70) | 2 | 132 | (130) | |||||||||||||||||||||||||||||
Change in fair value of warrants liability | (325) | — | (325) | (12,683) | — | (12,683) | |||||||||||||||||||||||||||||
Change in fair value of redeemable convertible preferred stock tranche obligation | — | (345) | 345 | — | (629) | 629 | |||||||||||||||||||||||||||||
Change in fair value of earnout provision | (12,210) | — | (12,210) | (44,056) | — | (44,056) | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (15,204) | $ | (344) | $ | (14,860) | $ | (32,069) | $ | (1,788) | $ | (30,281) |