We have HYLIION HOLDINGS CORP.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AS OF
SEPTEMBER 30, 2023
(Dollar amounts in thousands, except share data)
Historical Hyliion Holdings Corp. (a) | Pro Forma Adjustments | Pro Forma Hyliion Holdings Corp. | ||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 28,600 | $ | — | $ | 28,600 | ||||||||||||||
Accounts receivable | 140 | — | 140 | |||||||||||||||||
Inventory | 139 | (139) | (b) | — | ||||||||||||||||
Prepaid expenses and other current assets | 11,509 | (1,482) | (b) | 10,027 | (c) | |||||||||||||||
Short-term investments | 153,625 | — | 153,625 | |||||||||||||||||
Total current assets | 194,013 | (1,621) | 192,392 | |||||||||||||||||
Property and equipment, net | 11,076 | — | 11,076 | (c) | ||||||||||||||||
Operating lease right-of-use assets | 7,494 | — | 7,494 | |||||||||||||||||
Intangible assets, net | 200 | (200) | (b) | — | ||||||||||||||||
Other assets | 2,038 | (346) | (b) | 1,692 | ||||||||||||||||
Long-term investments | 141,324 | — | 141,324 | |||||||||||||||||
Total assets | $ | 356,145 | $ | (2,167) | $ | 353,978 | ||||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable | $ | 3,507 | $ | — | $ | 3,507 | ||||||||||||||
Current portion of operating lease liabilities | 807 | — | 807 | |||||||||||||||||
Accrued expenses and other current liabilities | 8,867 | 15,304 | (d) | 24,171 | ||||||||||||||||
Total current liabilities | 13,181 | 15,304 | 28,485 | |||||||||||||||||
Operating lease liabilities, net of current portion | 7,354 | — | 7,354 | |||||||||||||||||
Other liabilities | 1,248 | — | 1,248 | |||||||||||||||||
Total liabilities | 21,783 | 15,304 | 37,087 | |||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||
Common stock, $0.0001 par value; 250,000,000 shares authorized; 182,716,445 shares issued and outstanding at September 30, 2023 | 18 | — | 18 | |||||||||||||||||
Additional paid-in capital | 402,978 | — | 402,978 | |||||||||||||||||
Accumulated deficit | (68,634) | (17,471) | (e) | (86,105) | ||||||||||||||||
Total stockholders’ equity | 334,362 | (17,471) | 316,891 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 356,145 | $ | (2,167) | $ | 353,978 |
HYLIION HOLDINGS CORP.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
(Dollar amounts in thousands, except share and per share data)
Historical Hyliion Holdings Corp. (a) | Pro Forma Adjustments | Pro Forma Hyliion Holdings Corp. | |||||||||||||||
Revenues | |||||||||||||||||
Product sales and other | $ | 672 | $ | (672) | (f) | $ | — | ||||||||||
Total revenues | 672 | (672) | — | ||||||||||||||
Cost of revenues | |||||||||||||||||
Product sales and other | 1,675 | (1,675) | (f) | — | |||||||||||||
Total cost of revenues | 1,675 | (1,675) | — | ||||||||||||||
Gross loss | (1,003) | 1,003 | — | ||||||||||||||
Operating expenses | |||||||||||||||||
Research and development | 73,472 | (57,863) | (f) | 15,609 | |||||||||||||
Selling, general and administrative | 30,265 | (10,645) | (f) | 19,620 | |||||||||||||
Total operating expenses | 103,737 | (68,508) | 35,229 | ||||||||||||||
Loss from continuing operations | (104,740) | 69,511 | (35,229) | ||||||||||||||
Interest income | 10,345 | — | 10,345 | ||||||||||||||
Gain on disposal of assets | 1 | (1) | (f) | — | |||||||||||||
Other income, net | 14 | (14) | (f) | — | |||||||||||||
Net loss from continuing operations | $ | (94,380) | $ | 69,496 | $ | (24,884) | |||||||||||
Net loss per share from continuing operations, basic and diluted | $ | (0.52) | $ | (0.14) | |||||||||||||
Weighted-average shares outstanding, basic and diluted | 180,914,250 | 180,914,250 |
HYLIION HOLDINGS CORP.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2022
(Dollar amounts in thousands, except share and per share data)
Historical Hyliion Holdings Corp. (a) | Pro Forma Adjustments | Pro Forma Hyliion Holdings Corp. | |||||||||||||||
Revenues | |||||||||||||||||
Product sales and other | $ | 2,106 | $ | (2,106) | (f) | $ | — | ||||||||||
Total revenues | 2,106 | (2,106) | — | ||||||||||||||
Cost of revenues | |||||||||||||||||
Product sales and other | 8,778 | (8,778) | (f) | — | |||||||||||||
Total cost of revenues | 8,778 | (8,778) | — | ||||||||||||||
Gross loss | (6,672) | 6,672 | — | ||||||||||||||
Operating expenses | |||||||||||||||||
Research and development | 110,370 | (67,026) | (f) | 43,344 | |||||||||||||
Selling, general and administrative | 41,988 | (16,880) | (f) | 25,108 | |||||||||||||
Total operating expenses | 152,358 | (83,906) | 68,452 | ||||||||||||||
Loss from continuing operations | (159,030) | 90,578 | (68,452) | ||||||||||||||
Interest income | 5,724 | — | 5,724 | ||||||||||||||
Loss on disposal of assets | (19) | 19 | (f) | — | |||||||||||||
Other expense, net | (32) | — | (32) | ||||||||||||||
Net loss from continuing operations | $ | (153,357) | $ | 90,597 | $ | (62,760) | |||||||||||
Net loss per share from continuing operations, basic and diluted | $ | (0.87) | $ | (0.36) | |||||||||||||
Weighted-average shares outstanding, basic and diluted | 175,400,486 | 175,400,486 |
The unaudited pro forma condensed consolidated financial statements reflect the following notes and adjustments:
(a) Reflects the condensed consolidated balance sheet as of September 30, 2023 and condensed consolidated statement of operations for the nine months ended September 30, 2023 as filed in this Form 10-Q and the condensed consolidated statement of operations for the year ended December 31, 2022 as filed in the Company’s annual report on Form 10-K for the year then ended.
(b) Adjustments represent the impairment or accelerated depreciation and amortization of assets.
(c) Amounts include assets that are expected to be sold for greater than the recorded value. No adjustments for cash expected to be received upon sale or reclassification to assets held-for-sale have been made.
(d) Adjustment represents the estimated accrual of exit charges including severance and retention payments and contract terminations. The actual charges are expected to be recorded on the Company’s financial statements in the fourth quarter of 2023 and will differ from this estimate, and are subject to the outcome of supplier negotiations. We estimate that these charges could be up to $9.0 million greater than the amount presented.
(e) Adjustment represents the net impact of impairment or accelerated depreciation and amortization of assets, and estimated accrual of exit charges including severance and retention payments and contract terminations. No impacts
from the disposition assets have been reflected and the exact timing and amount of any such dispositions are currently unknown.
(f) Adjustments represent the elimination of activities associated with powertrain business. The elimination of research and development and selling, general and administrative operating expenses were based on estimates and may not be representative of actual continuing operations.