☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 001-39632 | 82-2726724 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
475 Quaker Meeting House Road Honeoye Falls, NY | 14472 | |||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.0001 per share | HYZN | Nasdaq Capital Market | ||
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share | HYZNW | Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||
Emerging growth company | ☒ |
Page No. | ||||||||||
1 | ||||||||||
1 | ||||||||||
37 | ||||||||||
39 | ||||||||||
39 | ||||||||||
39 | ||||||||||
39 | ||||||||||
41 |
September 30, 2021 | December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 498,014 | $ | 17,139 | ||||
Accounts receivable | 5,991 | — | ||||||
Inventory | 15,260 | — | ||||||
Prepaid expenses and other current assets | 24,555 | 848 | ||||||
Total current assets | 543,820 | 17,987 | ||||||
Property, plant, and equipment, net | 8,878 | 418 | ||||||
Right-of-use | 2,365 | 1,656 | ||||||
Deferred merger transaction costs | — | 732 | ||||||
Restricted cash and other assets | 7,755 | 212 | ||||||
Total Assets | $ | 562,818 | $ | 21,005 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,851 | $ | 215 | ||||
Accrued professional fees | 1,003 | 900 | ||||||
Other accrued expenses | 3,154 | 162 | ||||||
Related party payables | 4,554 | 560 | ||||||
Horizon IP agreement payable | 10,000 | — | ||||||
Contract liabilities | 10,984 | 2,608 | ||||||
Current portion of lease liabilities | 748 | 618 | ||||||
Total current liabilities | 33,294 | 5,063 | ||||||
Long term liabilities | ||||||||
Lease liabilities | 1,930 | 1,181 | ||||||
Private placement warrant liability | 11,781 | — | ||||||
Earnout liability | 114,758 | — | ||||||
Other liabilities | 316 | — | ||||||
Total liabilities | $ | 162,079 | $ | 6,244 | ||||
Commitments and contingencies (Note 1 1 ) | ||||||||
Stockholders’ Equity | ||||||||
Common stock, $0.0001 par value; 400,000,000 shares authorized, 247,500,505 and 166,125,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively. | 25 | 17 | ||||||
Additional paid-in capital | 402,211 | 29,122 | ||||||
Retained earnings (accumulated deficit) | 515 | (14,271 | ) | |||||
Accumulated other comprehensive loss | (326 | ) | (16 | ) | ||||
Total Hyzon Motors Inc. stockholders’ equity | 402,425 | 14,852 | ||||||
Noncontrolling interest | (1,686 | ) | (91 | ) | ||||
Total Stockholders’ Equity | 400,739 | 14,761 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 562,818 | $ | 21,005 | ||||
|
June 30, 2021 (unaudited) | December 31, 2020 | |||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash | $ | 167,284 | $ | — | ||||
Investment held in Trust Account | 225,734,427 | 225,727,721 | ||||||
Prepaid insurance | 769,425 | 1,062,000 | ||||||
Total current assets | 226,671,136 | 226,789,721 | ||||||
Total assets | $ | 226,671,136 | $ | 226,789,721 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accrued offering costs | $ | 175,000 | $ | 175,000 | ||||
Accounts payable—affiliate | 3,375,977 | 1,324,257 | ||||||
Accrued expenses | 3,533,899 | 3,572,935 | ||||||
Total Current Liabilities | 7,084,876 | 5,072,192 | ||||||
Warrant liabilities | 40,763,719 | 33,600,270 | ||||||
Deferred underwriting fee payable | 7,900,376 | 7,900,376 | ||||||
Total liabilities | 55,748,971 | 46,572,838 | ||||||
COMMITMENTS AND CONTINGENCIES | 0 | 0 | ||||||
Class A common stock subject to possible redemption, 16,592,216 and 17,521,688 shares at June 30, 2021 and December 31, 2020, respectively, at $10.00 per share | 165,922,160 | 175,216,880 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0— | 0— | ||||||
Class A common stock, $0.0001 par value, 250,000,000 shares authorized; 5,980,286 and 5,050,814 shares, respectively, issued and outstanding (excluding 16,592,216 and 17,521,688 shares subject to possible redemption) at June 30 , 2021 and December 31, 2020, respectively | 598 | 505 | ||||||
Class B common stock, $0.0001 par value, 20,000,000 shares authorized, 5,643,125 s June 30 , 2021 and December 31, 2020 | 564 | 564 | ||||||
Additional paid-in capital | 36,135,858 | 26,841,231 | ||||||
Accumulated deficit | (31,137,015 | ) | (21,842,297 | ) | ||||
Total stockholders’ equity | 5,000,005 | 5,000,003 | ||||||
Total liabilities and stockholders’ equity | $ | 226,671,136 | $ | 226,789,721 | ||||
For the Three Months Ended June 30, 2021 | For the Three Months Ended June 30, 2020 | For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2020 | |||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses | $ | 1,361,853 | $ | 860 | $ | 2,137,975 | $ | 1,719 | ||||||||
Loss from operations | (1,361,853 | ) | (860 | ) | (2,137,975 | ) | (1,719 | ) | ||||||||
Other Income | ||||||||||||||||
Interest earned on marketable securities held in Trust Account | $ | 3,372 | $ | — | $ | 6,706 | $ | — | ||||||||
Change in fair value of warrant liabilities | (6,824,865 | ) | — | (7,163,449 | ) | — | ||||||||||
Net loss | $ | (8,183,346 | ) | $ | (859 | ) | $ | (9,294,718 | ) | $ | (1,719 | ) | ||||
Weighted average shares outstanding of Class A redeemable common stock, basic and diluted | 22,572,502 | — | 22,572,502 | — | ||||||||||||
Basic and diluted net income per common share, Class A redeemable common stock | $ | — | $ | — | $ | 0.00 | $ | — | ||||||||
Weighted average shares outstanding of Class B non-redeemable common stock, basic and diluted (1) (2) | 5,643,125 | 5,643,125 | 5,643,125 | 5,643,125 | ||||||||||||
Basic and diluted net loss per common share, Class B non-redeemable common stock | $ | 0 | $ | (0.00 | ) | $ | (1.65 | ) | $ | (0.00 | ) | |||||
Legacy Common Stock | Common Stock Class A | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Hyzon Motors Inc. stockholders’ Equity (Deficit) | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 93,750,000 | $ | 94 | — | $ | — | 29,045 | (14,271 | ) | (16 | ) | 14,852 | (91 | ) | $ | 14,761 | ||||||||||||||||||||||||
Retroactive application of recapitalization | (93,750,000 | ) | (94 | ) | 166,125,000 | $ | 17 | 77 | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted beginning of period | — | — | 166,125,000 | 17 | 29,122 | (14,271 | ) | (16 | ) | 14,852 | (91 | ) | 14,761 | |||||||||||||||||||||||||||
Exercise of stock option s | — | — | 132,900 | — | 190 | — | — | 190 | — | 190 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 816 | — | — | 816 | — | 816 | ||||||||||||||||||||||||||||||
IP transaction – deemed distribution | — | — | — | — | (10,000 | ) | — | — | (10,000 | ) | — | (10,000 | ) | |||||||||||||||||||||||||||
Net loss attributable to Hyzon | — | — | — | — | — | (17,568 | ) | — | (17,568 | ) | — | (17,568 | ) | |||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | (531 | ) | (531 | ) | ||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | — | — | — | (79 | ) | (79 | ) | 11 | (68 | ) | |||||||||||||||||||||||||||
Balance 30, 2021 | — | — | 166,257,900 | 17 | 20,128 | (31,839 | ) | (95 | ) | (11,789 | ) | (611 | ) | (12,400 | ) | |||||||||||||||||||||||||
Reverse recapitalization transaction, net (Note 3) | — | — | 80,736,309 | 8 | 354,626 | — | — | 354,634 | — | 354,634 | ||||||||||||||||||||||||||||||
Vesting of RSU s | — | — | 284,796 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Exercise of stock option s | — | — | 221,500 | — | 250 | — | — | 250 | — | 250 | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 27,207 | — | — | 27,207 | — | 27,207 | ||||||||||||||||||||||||||||||
Net income (loss) attributable to Hyzon | — | — | — | — | — | 32,354 | — | 32,354 | — | 32,354 | ||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | — | — | — | — | — | — | — | — | (1,101 | ) | (1,101 | ) | ||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | — | — | — | (231 | ) | (231 | ) | 26 | (205 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2021 | — | — | 247,500,505 | 25 | 402,211 | 515 | (326 | ) | 402,425 | (1,686 | ) | 400,739 | ||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares (1) (2) | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balances as of January 1, 2021 | 5,050,814 | $ | 505 | 5,643,125 | $ | 564 | $ | 26,841,231 | $ | (21,842,297 | ) | $ | 5,000,003 | |||||||||||||||
Common stock subject to possible redemptio n | 111,137 | 11 | — | — | 1,111,359 | — | 1,111,370 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (1,111,372 | ) | (1,111,372 | ) | |||||||||||||||||||
Balances as of March 31, 2021 | 5,161,951 | $ | 516 | 5,643,125 | $ | 564 | $ | 27,952,590 | $ | (22,953,669 | ) | $ | 5,000,001 | |||||||||||||||
Common stock subject to possible redemptio n | 818,335 | 82 | — | — | 8,183,268 | — | 8,183,350 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (8,183,346 | ) | (8,183,346 | ) | |||||||||||||||||||
Balances as of June 30, 202 1 | 5,980,286 | $ | 598 | 5,643,125 | $ | 564 | $ | 36,135,858 | $ | (31,137,015 | ) | $ | 5,000,005 |
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Stockholder’s | ||||||||||||||||||||||||
Shares | Amount | Shares (1) (2) | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balances as of January 1, 2020 | — | $ | — | 5,750,000 | $ | 575 | $ | 243,447 | $ | (219,422 | ) | $ | 24,600 | |||||||||||||||
Net loss | — | — | — | — | — | (859 | ) | (859 | ) | |||||||||||||||||||
Balances as of March 31, 202 0 | — | $ | — | 5,750,000 | $ | 575 | $ | 243,447 | (220,281 | ) | 23,741 | |||||||||||||||||
Net loss | — | — | — | — | — | (860 | ) | (860 | ) | |||||||||||||||||||
Balances as of June 30, 202 0 | — | $ | — | 5,750,000 | $ | 575 | $ | 243,447 | $ | (221,141 | ) | $ | 22,881 |
Legacy Common Stock | Common Stock Class A | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Hyzon Motors Inc. stockholders’ Equity (Deficit) | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance as of January 21, 2020 (Inception) | 83,750,000 | $ | 84 | — | $ | — | — | — | — | 84 | — | 84 | ||||||||||||||||||||||||||||
Retroactive application of recapitalization | (83,750,000 | ) | (84 | ) | 148,405,000 | $ | 15 | 69 | — | — | — | — | — | |||||||||||||||||||||||||||
Adjusted balance, beginning of period | — | — | 148,405,000 | 15 | 69 | — | — | 84 | — | 84 | ||||||||||||||||||||||||||||||
Net loss attributable to Hyzon | — | — | — | — | — | (296 | ) | — | (296 | ) | — | (296 | ) | |||||||||||||||||||||||||||
Balance at June 30, 2020 | — | — | 148,405,000 | 15 | 69 | (296 | ) | — | (212 | ) | — | (212 | ) | |||||||||||||||||||||||||||
Net loss attributable to Hyzon | — | — | — | — | — | (556 | ) | — | (556 | ) | 0 | (556 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | — | 148,405,000 | 15 | 69 | (852 | ) | — | (768 | ) | 0 | (768 | ) | |||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2020 | |||||||
Cash flow from operating activities: | ||||||||
Net loss | $ | (9,294,718 | ) | $ | (1,719 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of warrant liabilities | 7,163,449 | |||||||
Interest earned on marketable securities held in Trust Account | (6,706 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts payable | 2,051,720 | 1,719 | ||||||
Accrued expenses | (39,036 | ) | — | |||||
Prepaid insurance | 292,575 | — | ||||||
Net cash used in operating activities | 167,284 | — | ||||||
Net increase in cash | 167,284 | — | ||||||
Cash at beginning of period | — | 315,600 | ||||||
Cash at end of period | $ | 167,284 | $ | 315,600 | ||||
Supplemental disclosure of non-cash financing activities: | ||||||||
Change in value of Class A common stock subject to possible redemption | $ | (9,294,720 | ) | $ | — | |||
Nine Months Ended September 30, 2021 | For the period January 21, 2020 (Inception) - September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 13,154 | $ | (854 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation and amortization | 450 | 1 | ||||||
Reduction in the carrying amount of right of use assets | 221 | 98 | ||||||
Stock-based compensation | 28,084 | — | ||||||
Loss on extinguishment of convertible notes | 107 | — | ||||||
Noncash interest expense | 5,449 | — | ||||||
Fair value adjustment of private placement warrant liability | (7,614 | ) | — | |||||
Fair value adjustment of earnout liability | (73,615 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts Receivable | (5,712 | ) | — | |||||
Inventory | (14,577 | ) | — | |||||
Prepaid expenses and other current assets | (19,549 | ) | — | |||||
Other assets | (150 | ) | (14 | ) | ||||
Accounts payable | 2,558 | — | ||||||
Accrued professional fees and other current liabilities | 3,031 | 17 | ||||||
Operating lease liabilities | (187 | ) | — | |||||
Related party payables | 3,821 | 756 | ||||||
Contract liabilities | 7,982 | — | ||||||
Other liabilities | 311 | — | ||||||
Net cash (used in) provided by operating activities | (56,236 | ) | 4 | |||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property and equipment | (8,810 | ) | (133 | ) | ||||
Advanced payments for capital expenditures | (3,948 | ) | — | |||||
Investment in equity securities | (4,826 | ) | 0 | |||||
Net cash used in investing activities | (17,584 | ) | (133 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of common stock | — | 84 | ||||||
Proceeds from Business Combination, net of redemption and transaction costs (Note 3) | 512,936 | — | ||||||
Exercise of stock options | 440 | — | ||||||
Payment of finance lease liability | (135 | ) | (12 | ) | ||||
Debt issuance costs | (133 | ) | — | |||||
Proceeds from issuance of convertible notes | 45,000 | 500 | ||||||
Net cash provided by financing activit i es | 558,108 | 572 | ||||||
Effect of exchange rate changes on cash | (853 | ) | 1 | |||||
Net change in cash and restricted cash | 483,435 | 444 | ||||||
Cash—Beginning | 17,139 | — | ||||||
Cash and restricted cash —Ending | $ | 500,574 | $ | 444 | ||||
Supplemental schedule of non-cash investing activities and financing activities: | ||||||||
Lease assets obtained in exchange for lease obligations: | ||||||||
Operating leases | 1,206 | — | ||||||
Finance leases | — | 886 | ||||||
Conversion of Legacy Hyzon common stock | 73 | — | ||||||
Recognition of earnout liability in Business Combination | 188,373 | — | ||||||
Recognition of private placement warrant liability in Business n | 19,395 | — | ||||||
Horizon license agreement payable | 10,000 | — | ||||||
Conversion of convertible notes for common stock | 50,198 | — |
Shares | ||||
Common stock of DCRB | 20,483,179 | |||
DCRB founders | 5,643,125 | |||
Total DCRB | 26,126,304 | |||
Conversion of Ascent Options (post-cashless exercise) | 6,871,667 | |||
Legacy Hyzon shares after conversion | 173,474,186 | |||
Conversion of convertible notes | 5,022,052 | |||
PIPE shares | 35,500,000 | |||
Total shares of common stock immediately after Business Combination | 246,994,209 | |||
(in thousands) | Recapitalization | |||
Cash – DCRB trust and cash, net of redemptions and liabilities recorded by DCRB of $13.5 million | $ | 191,181 | ||
Cash – PIPE Financing, net of transaction costs of $14.2 million | 340,797 | |||
Less: transaction costs allocated to equity | (19,042 | ) | ||
Effect of Business Combination, net of redemption and transaction costs | $ | 512,936 | ||
(in thousands) | Recapitalization | |||
Cash – DCRB trust and cash, net of redemptions and liabilities recorded by DCRB of $13.5 million | $ | 191,181 | ||
Cash – PIPE Financing, net of transaction costs of $14.2 million | 340,797 | |||
Conversion of convertible notes into common stock | 50,198 | |||
Recognize earnout liability | (188,373 | ) | ||
Recognize private placement warrants liability | (19,395 | ) | ||
Recapitalization of Legacy Hyzon common shares | 75 | |||
Less: transaction costs allocated to equity | (19,857 | ) | ||
Effect of Business Combination, net of redemption and transaction costs | $ | 354,626 | ||
(in thousands) | September 30, 2021 | December 31, 2020 | ||||||
Deposit for fuel cell components (Note 14) | $ | 5,000 | $ | — | ||||
Vehicle inventory deposits | 4,756 | 577 | ||||||
Production equipment deposits | 3,948 | — | ||||||
Other current deposits | 3,346 | 271 | ||||||
Prepaid Insurance | 7,505 | — | ||||||
Total prepaid expenses and other current assets | 24,555 | 848 | ||||||
(In thousands) | September 30, 2021 | December 31, 2020 | ||||||
Land and building | $ | 2,424 | $ | — | ||||
Machinery and equipment | 5,728 | 371 | ||||||
Software | 168 | — | ||||||
Leasehold improvements | 358 | — | ||||||
Construction in progress | 663 | 60 | ||||||
Total Property, plant, and equipment | 9,431 | 431 | ||||||
Less: Accumulated depreciation and amortization | (463 | ) | (13 | ) | ||||
Property, plant and equipment, net | $ | 8,878 | $ | 418 | ||||
Fair Value Measurements on a Recurring Basis | ||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Warrant l iability – Private Placement Warrants | — | — | $ | 11,781 | $ | 11,781 | ||||||||||
Earnout shares liability | — | — | 114,758 | 114,758 | ||||||||||||
September 30, 2021 | July 16, 2021 | |||||||
Stock price | $ | 6.94 | $ | 10.33 | ||||
Exercise price (strike price) | $ | 11.50 | $ | 11.50 | ||||
Risk-free interest rate | 0.9 | % | 0.8 | % | ||||
Volatility | 60.00 | % | 34.20 | % | ||||
Remaining term (in years) | 4.79 | 5.00 |
Balance as of July 16, 2021 | $ | 19,395 | ||
Change in estimated fair value | (7,614 | ) | ||
Balance as of September 30, 2021 | $ | 11,781 | ||
September 30, 2021 | July 16, 2021 | |||||||
Stock price | $ | 6.94 | $ | 10.33 | ||||
Risk-free interest rate | 0.9 | % | 0.8 | % | ||||
Volatility | 90.00 | % | 90.00 | % | ||||
Remaining term (in years) | 4.79 | 5.00 |
Balance as of July 16, 2021 | $ | 188,373 | ||
Change in estimated fair value | (73,615 | ) | ||
Balance as of September 30, 2021 | $ | 114,758 | ||
Three Months Ended September 30, | Nine Months Ended September 30, | Inception (January 21, 2020) to September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income (loss) attributable to Hyzon | $ | 32,354 | $ | (556 | ) | $ | 14,786 | $ | (854 | ) | ||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 234,464 | 148,405 | 189,226 | 148,405 | ||||||||||||
Effect of dilutive securities | 11,799 | — | 11,742 | — | ||||||||||||
Diluted | 246,263 | 148,405 | 200,968 | 148,405 | ||||||||||||
Earnings (loss) per share attributable to Hyzon: | ||||||||||||||||
Basic | $ | 0.14 | $ | — | $ | 0.08 | $ | (0.01 | ) | |||||||
Diluted | $ | 0.13 | $ | — | $ | 0.07 | $ | (0.01 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | Inception (January 21, 2020) to September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Stock options and restricted stock units | 1,475 | 0 | 1,475 | 0 | ||||||||||||
Stock options with market and performance conditions | 5,538 | 0 | 5,538 | 0 | ||||||||||||
Private placement warrants | 8,015 | 0 | 8,015 | 0 | ||||||||||||
Public Warrants | 11,286 | 0 | 11,286 | 0 | ||||||||||||
Earnout shares | 23,250 | 0 | 23,250 | 0 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, | ||||||||
(In thousands) | 2021 | 2020 | ||||||
Net income (loss) | $ | 31,253 | $ | (556 | ) | |||
Interest expense, net | 254 | 15 | ||||||
Income tax expense (benefit) | — | — | ||||||
Depreciation and amortization | 223 | 75 | ||||||
EBITDA | $ | 31,730 | $ | (466 | ) | |||
Change in fair value of private placement warrant liability | (7,614 | ) | — | |||||
Change in fair value of earnout liability | (73,615 | ) | — | |||||
Stock-based compensation | 13,827 | — | ||||||
Executive transition charges (1) | 13,860 | — | ||||||
Business combination transaction expenses (2) | 6,533 | — | ||||||
Regulatory and legal matters (3) | 111 | — | ||||||
Adjusted EBITDA | $ | (15,168 | ) | $ | (466 | ) | ||
(1) | Executive transition charges include stock-based compensation costs of $13.4 million and salary expense of $0.5 million related to former CTO’s retirement. |
(2) | Transaction costs of $6.4 million attributable to the liability classified earnout shares and $0.1 million of write-off of debt issuance costs. |
(3) | Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller analyst article from September 2021, and investigations and litigation related thereto. |
Nine Months Ended | For the period January 21, 2020 (Inception) – | |||||||
(In thousands) | September 30, 2021 | September 30, 2020 | ||||||
Net income (loss) | $ | 13,154 | $ | (854 | ) | |||
Interest expense, net | 5,249 | 20 | ||||||
Income tax expense (benefit) | — | — | ||||||
Depreciation and amortization | 518 | 99 | ||||||
EBITDA | $ | 18,921 | $ | (735 | ) | |||
Change in fair value of private placement warrant liability | (7,614 | ) | — | |||||
Change in fair value of earnout liability | (73,615 | ) | — | |||||
Stock-based compensation | 14,704 | — | ||||||
Executive transition charges (1) | 13,860 | — | ||||||
Business combination transaction expenses (2) | 6,533 | — | ||||||
Regulatory and legal matters (3) | 111 | — | ||||||
Adjusted EBITDA | $ | (27,100 | ) | $ | (735 | ) | ||
(1) | Executive transition charges include stock-based compensation costs of $13.4 million and salary expense of $0.5 million related to former CTO’s retirement. |
(2) | Transaction costs of $6.4 million attributable to the liability classified earnout shares and $0.1 million of write-off of debt issuance costs. |
(3) | Regulatory and legal matters include legal, advisory, and other professional service fees incurred in connection with the short-seller analyst article from September 2021, and investigations and litigation related thereto. |
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Class A Redeemable Common Stock | ||||||||||||||||
Numerator: Earnings allocable to Class A Redeemable Common Stock | ||||||||||||||||
Interest Income | 3,372 | — | 6,706 | — | ||||||||||||
Income and Franchise Tax | (3,372 | ) | — | (6,706 | ) | — | ||||||||||
Redeemable Net Loss | 0 | 0 | 0 | 0 | ||||||||||||
Denominator: Weighted Average Class A Redeemable Common Stock | ||||||||||||||||
Class A Redeemable Common Stock, Basic and Diluted | 22,572,502 | — | 22,572,502 | — | ||||||||||||
Income (Loss)/Basic and Diluted Class A Redeemable Common Stock | 0 | — | ||||||||||||||
Class B Non-Redeemable Common Stock | ||||||||||||||||
Numerator: Net Loss minus Class A Redeemable Net Loss | ||||||||||||||||
Net Loss | (8,183,346 | ) | (860 | ) | (9,294,718 | ) | (1,719 | ) | ||||||||
Class A Redeemable Net Loss | 0— | 0— | — | — | ||||||||||||
Class B Non-Redeemable Net Loss | (8,183,346 | ) | (860 | ) | (9,294,718 | ) | (1,719 | ) | ||||||||
Denominator: Weighted Average Class B Non-Redeemable Common Stock | ||||||||||||||||
Class B Non-Redeemable Common Stock, Basic and Diluted | 5,643,125 | 5,000,000 | 5,643,125 | 5,000,000 | ||||||||||||
Loss/Basic and Diluted Class B Non-Redeemable Common Stock | (1.45 | ) | (0.00 | ) | (1.65 | ) | (0.00 | ) |
Description | Amount at Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
June 30, 2021 | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities held in Trust Account—U.S. Treasury Securities Money Market Fund | 225,734,427 | 225,734,427 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability—Public Warrants | 25,845,515 | 25,845,515 | — | |||||||||||||
Warrant Liability—Private Placement Warrants | 14,918,205 | — | — | 14,918,205 | ||||||||||||
December 31, 2020 | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable securities held in Trust Account—U.S. Treasury Securities Money Market Fund | 225,727,721 | 225,727,721 | — | |||||||||||||
Liabilities: | ||||||||||||||||
Warrant Liability—Public Warrants | 20,766,705 | 20,766,705 | — | |||||||||||||
Warrant Liability—Private Placement Warrants | 12,833,565 | — | — | 12,833,565 |
As of June 30, 2021 | As of December 31, 2020 | |||||||
Stock price | 10.31 | 10.60 | ||||||
Strike price | 11.50 | 11.50 | ||||||
Term (in years) | 5.1 | 5.4 | ||||||
Volatility | 30.0 | % | 27.8 | % | ||||
Risk-free rate | 0.9 | % | 0.4 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % | ||||
Fair value of warrants | 2.29 | 1.97 |
Placement (Level 3) | (Level 1) | Liabilities |
Fair value as of December 31, 2020 | 12,833,565 | 20,766,705 | 33,600,270 | |||||||||
Change in valuation inputs or other assumptions | 2,084,640 | 5,078,810 | 7,163,449 | |||||||||
Fair value as of June 30, 2021 | 14,918,205 | 25,845,515 | 40,763,719 | |||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. |
* | This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act |
# | Indicates management contract or compensatory arrangement. |
Hyzon Motors Inc. | ||||||
Date: | By: | /s/ Mark Gordon | ||||
Name: | Mark Gordon | |||||
Title: | Chief Financial Officer (Principal Financial Officer) |