☒ | 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 |
98-1578357 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification | |||||||||
One North Lexington Avenue, Suite 1450 | ||||||||||
White Plains, New York | 10601 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
OPAL | The Nasdaq Stock Market LLC | |||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ||||||||||||||
☒ | Smaller reporting company | ☒ | ||||||||||||
Emerging growth company | ☒ |
PAGE | ||||||||||||
ITEM 3. | ||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents (includes $7,274 and $12,506 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | $ | 33,264 | $ | 40,394 | |||||||
Accounts receivable, net (includes $252 and $966 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 29,979 | 31,083 | |||||||||
Accounts receivable, related party | 4,046 | 12,421 | |||||||||
Restricted cash - current (includes $688 and $6,971 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 688 | 32,402 | |||||||||
Short term investments | 36,989 | 64,976 | |||||||||
Fuel tax credits receivable | 2,494 | 4,144 | |||||||||
Contract assets | 8,545 | 9,771 | |||||||||
Parts inventory | 9,279 | 7,311 | |||||||||
Environmental credits held for sale (includes $29 and $— at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 2,527 | 1,674 | |||||||||
Prepaid expense and other current assets (includes $251 and $415 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 6,547 | 7,625 | |||||||||
Derivative financial assets, current portion | 449 | 182 | |||||||||
Total current assets | 134,807 | 211,983 | |||||||||
Capital spares | 3,455 | 3,443 | |||||||||
Property, plant, and equipment, net (includes $93,225 and $73,140 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 336,299 | 297,323 | |||||||||
Operating right-of-use assets | 11,597 | 11,744 | |||||||||
Investment in other entities | 50,570 | 51,765 | |||||||||
Note receivable - variable fee component | 2,019 | 1,942 | |||||||||
Derivative financial assets, non-current portion | 1,057 | 954 | |||||||||
Deferred financing costs | 2,924 | 3,013 | |||||||||
Other long-term assets | 1,489 | 1,489 | |||||||||
Intangible assets, net | 2,007 | 2,167 | |||||||||
Restricted cash - non-current (includes $3,157 and $2,923 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 5,870 | 4,425 | |||||||||
Goodwill | 54,608 | 54,608 | |||||||||
Total assets | $ | 606,702 | $ | 644,856 | |||||||
Liabilities and Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable (includes $10,430 and $4,896 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 23,298 | 22,679 | |||||||||
Accounts payable, related party (includes $279 and $433 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 839 | 1,346 | |||||||||
Fuel tax credits payable | 2,380 | 3,320 | |||||||||
Accrued payroll | 10,525 | 8,979 | |||||||||
Accrued capital expenses (includes $8,027 and $7,821 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 15,424 | 11,922 | |||||||||
Accrued expenses and other current liabilities (includes $178 and $646 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 8,374 | 9,573 |
Contract liabilities | 8,518 | 8,013 | |||||||||
Senior Secured Credit Facility - term loan, current portion, net of debt issuance costs | — | 15,250 | |||||||||
Senior Secured Credit Facility - working capital facility, current portion | — | 7,500 | |||||||||
OPAL Term Loan, current portion | 27,732 | 27,732 | |||||||||
Sunoma Loan, current portion (includes $768 and $380 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 768 | 380 | |||||||||
Convertible Note Payable | 29,091 | 28,528 | |||||||||
Municipality Loan | 31 | 76 | |||||||||
Derivative financial liability, current portion | — | 4,596 | |||||||||
Operating lease liabilities - current portion | 667 | 630 | |||||||||
Other current liabilities | 1,771 | 1,085 | |||||||||
Asset retirement obligation, current portion | 1,296 | 1,296 | |||||||||
Total current liabilities | 130,714 | 152,905 | |||||||||
Asset retirement obligation, non-current portion | 5,062 | 4,960 | |||||||||
OPAL Term Loan | 69,915 | 66,600 | |||||||||
Sunoma Loan, net of debt issuance costs (includes $21,337 and $21,712 at March 31, 2023 and December 31, 2022, respectively, related to consolidated VIEs) | 21,337 | 21,712 | |||||||||
Operating lease liabilities - non-current portion | 11,100 | 11,245 | |||||||||
Earn out liabilities | 4,480 | 8,790 | |||||||||
Other long-term liabilities | 740 | 825 | |||||||||
Total liabilities | 243,348 | 267,037 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable preferred non-controlling interests | 140,905 | 138,142 | |||||||||
Redeemable non-controlling interests | 1,013,835 | 1,013,833 | |||||||||
Stockholders' deficit | |||||||||||
Class A common stock, $0.0001 par value, 340,000,000 shares authorized as of March 31, 2023; 29,330,115 and 29,477,766 shares, issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 3 | 3 | |||||||||
Class B common stock, $0.0001 par value, 160,000,000 shares authorized as of March 31, 2023; None issued and outstanding as of March 31, 2023 and December 31, 2022 | — | — | |||||||||
Class C common stock, $0.0001 par value, 160,000,000 shares authorized as of March 31, 2023; None issued and outstanding as of March 31, 2023 and December 31, 2022 | — | — | |||||||||
Class D common stock, $0.0001 par value, 160,000,000 shares authorized as of March 31, 2023; 144,399,037 and 144,399,037 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 14 | 14 | |||||||||
Additional paid-in capital | — | — | |||||||||
Accumulated deficit | (807,895) | (800,813) | |||||||||
Accumulated other comprehensive income | 137 | 195 | |||||||||
Class A common stock in treasury, at cost; 1,635,783 and 0 shares at March 31, 2023 and December 31, 2022, respectively | (11,614) | — | |||||||||
Total Stockholders' deficit attributable to the Company | (819,355) | (800,601) | |||||||||
Non-redeemable non-controlling interests | 27,969 | 26,445 | |||||||||
Total Stockholders' deficit | (791,386) | (774,156) | |||||||||
Total liabilities, Redeemable preferred non-controlling interests, Redeemable non-controlling interests and Stockholders' deficit | $ | 606,702 | $ | 644,856 |
March 31, 2022 | December 31, 2021 | |||||||
Assets | (unaudited) | |||||||
Current assets: | ||||||||
Cash | $ | 559,253 | $ | 811,526 | ||||
Prepaid expenses | 738,743 | 701,663 | ||||||
Total current assets | 1,297,996 | 1,513,189 | ||||||
Other assets | 0 | 159,954 | ||||||
Investments held in Trust Account | 311,200,024 | 311,175,471 | ||||||
Total Assets | $ | 312,498,020 | $ | 312,848,614 | ||||
Liabilities and Shareholders’ Deficit: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 89,522 | $ | 18,764 | ||||
Accrued expenses | 113,400 | 94,497 | ||||||
Due to related party | 1,097 | 0 | ||||||
Total current liabilities | 204,019 | 113,261 | ||||||
Deferred legal fees | 4,891,549 | 3,966,447 | ||||||
Deferred underwriting commissions | 10,890,707 | 10,890,707 | ||||||
Derivative warrant liabilities | 20,543,880 | 25,795,700 | ||||||
Total liabilities | 36,530,155 | 40,766,115 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption; 31,116,305 shares at redemption value of $10.00 at March 31, 2022 and December 31, 2021 | 311,163,050 | 311,163,050 | ||||||
Shareholders’ Deficit: | ||||||||
Preference shares, $ 0.0001 par value; 5,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized (excluding 31,116,305 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 7,779,076 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 778 | 778 | ||||||
Accumulated deficit | (35,195,963 | ) | (39,081,329 | ) | ||||
Total shareholders’ deficit | (35,195,185 | ) | (39,080,551 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 312,498,020 | $ | 312,848,614 | ||||
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||
General and administrative expenses | $ | 1,391,007 | $ | 128,476 | ||||
Loss from operations | (1,391,007 | ) | (128,476 | ) | ||||
Other income (expense) | ||||||||
Change in fair value of derivative warrant liabilities | 5,251,820 | 271,160 | ||||||
Financing costs - warrant liabilities | 0 | (462,620 | ) | |||||
Net gain on investments held in Trust Account | 24,553 | 153 | ||||||
Total other income (expense) | 5,276,373 | (191,307 | ) | |||||
Net income (loss) | $ | 3,885,366 | $ | (319,783 | ) | |||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted | 31,116,305 | 3,067,805 | ||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | (0.03 | ) | |||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted | 7,779,076 | 6,964,134 | ||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | (0.03 | ) | |||
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
RNG fuel (includes revenues from related party of $4,715 and $8,080 for the three months ended March 31, 2023 and 2022, respectively) | $ | 12,194 | $ | 15,049 | ||||||||||||||||||||||||||||
Fuel station services (includes revenues from related party of $1,493 and $4,816 for the three months ended March 31, 2023 and 2022, respectively) | 20,828 | 24,874 | ||||||||||||||||||||||||||||||
Renewable Power (includes revenues from related party of $1,527 and $1,026 for the three months ended March 31, 2023 and 2022, respectively) | 9,935 | 9,124 | ||||||||||||||||||||||||||||||
Total revenues | 42,957 | 49,047 | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of sales - RNG fuel | 7,523 | 7,714 | ||||||||||||||||||||||||||||||
Cost of sales - Fuel station services | 20,292 | 19,663 | ||||||||||||||||||||||||||||||
Cost of sales - Renewable Power | 8,378 | 8,408 | ||||||||||||||||||||||||||||||
Selling, general, and administrative | 14,472 | 10,855 | ||||||||||||||||||||||||||||||
Depreciation, amortization, and accretion | 3,567 | 3,396 | ||||||||||||||||||||||||||||||
Total expenses | 54,232 | 50,036 | ||||||||||||||||||||||||||||||
Operating loss | (11,275) | (989) | ||||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Interest and financing expense, net | (641) | (3,057) | ||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net | 3,933 | 236 | ||||||||||||||||||||||||||||||
Other expense | (68) | — | ||||||||||||||||||||||||||||||
Income (loss) from equity method investments | 705 | (657) | ||||||||||||||||||||||||||||||
Loss before provision for income taxes | (7,346) | (4,467) | ||||||||||||||||||||||||||||||
Provision for income taxes | — | — | ||||||||||||||||||||||||||||||
Net loss | (7,346) | (4,467) | ||||||||||||||||||||||||||||||
Net loss attributable to redeemable non-controlling interests | (8,233) | (4,942) | ||||||||||||||||||||||||||||||
Net loss attributable to non-redeemable non-controlling interests | (297) | (242) | ||||||||||||||||||||||||||||||
Paid-in-kind preferred dividends (1) | 2,763 | 717 | ||||||||||||||||||||||||||||||
Net loss attributable to Class A common stockholders | $ | (1,579) | $ | — | ||||||||||||||||||||||||||||
Weighted average shares outstanding of Class A common stock: | ||||||||||||||||||||||||||||||||
Basic | 27,383,562 | — | ||||||||||||||||||||||||||||||
Diluted | 27,383,562 | — | ||||||||||||||||||||||||||||||
Per share amounts: | ||||||||||||||||||||||||||||||||
Basic (2) | $ | (0.06) | $ | — | ||||||||||||||||||||||||||||
Diluted (2) | $ | (0.06) | $ | — |
For The Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - January 1, 2022 | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (39,081,329 | ) | $ | (39,080,551 | ) | ||||||||||||||
Net income | — | — | — | — | — | 3,885,366 | 3,885,366 | |||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (35,195,963 | ) | $ | (35,195,185 | ) | ||||||||||||||
For The Period From January 13, 2021 (inception) through March 31, 2021 | ||||||||||||||||||||||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - January 13, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | 0 | 0 | 7,906,250 | 791 | 24,209 | — | 25,000 | |||||||||||||||||||||
Accrection on Class A ordinary shares subject to possible redemption | — | — | — | — | (199,953 | ) | (22,886,667 | ) | (23,086,620 | ) | ||||||||||||||||||
Sale of private placement warrants to Sponsor less fair value of private warrants | — | — | — | — | 175,731 | — | 175,731 | |||||||||||||||||||||
Forfeiture of Class B ordinary shares from Sponsor | 0 | 0 | (127,174 | ) | (13 | ) | 13 | — | — | |||||||||||||||||||
Net loss | — | — | — | — | — | (319,783 | ) | (319,783 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 0 | $ | 0 | 7,779,076 | $ | 778 | $ | 0 | $ | (23,206,450 | ) | $ | (23,205,672 | ) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Net loss | $ | (7,346) | $ | (4,467) | ||||||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||
Net unrealized loss on cash flow hedges | (356) | — | ||||||||||||||||||||||||
Total comprehensive loss | (7,702) | (4,467) | ||||||||||||||||||||||||
Net loss attributable to Redeemable non-controlling interests | (5,915) | (4,942) | ||||||||||||||||||||||||
Other comprehensive loss attributable to Redeemable non-controlling interests | (299) | — | ||||||||||||||||||||||||
Comprehensive loss attributable to non-redeemable non-controlling interests | (297) | (242) | ||||||||||||||||||||||||
Paid-in-kind preferred dividends | 445 | 717 | ||||||||||||||||||||||||
Comprehensive loss attributable to Class A common stockholders | $ | (1,636) | $ | — |
Class A common stock | Class D common stock | Class A common stock in treasury | Mezzanine Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional paid-in capital | Accumulated deficit | Other comprehensive income | Non-redeemable non-controlling interests | Shares | Amount | Total Stockholders' Equity | Redeemable Preferred non-controlling interests | Redeemable non-controlling interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | 29,477,766 | $ | 3 | 144,399,037 | $ | 14 | $ | — | $ | (800,813) | $ | 195 | $ | 26,445 | $ | — | $ | — | $ | (774,156) | $ | 138,142 | $ | 1,013,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (1,134) | — | (297) | — | — | (1,431) | — | (5,915) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (58) | — | — | — | (58) | — | (299) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from non-redeemable non-controlling interest | — | — | — | — | 1,722 | — | — | 1,821 | — | — | 3,543 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock on warrant exchange | 49,633 | — | — | — | 338 | — | — | — | — | — | 338 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of fractional shares on warrant exchange | (26) | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of put option forward purchase contract - Meteora | — | — | — | — | — | — | — | — | (1,635,783) | (11,614) | (11,614) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of Class A common stock | (197,258) | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 157 | — | — | — | — | — | 157 | — | 814 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in redemption value of Redeemable non-controlling interests | — | — | — | — | (2,217) | (5,503) | — | — | — | — | (7,720) | — | 7,720 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind preferred dividend | — | — | — | — | — | (445) | — | — | — | — | (445) | 2,763 | (2,318) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | 29,330,115 | $ | 3 | 144,399,037 | $ | 14 | $ | — | $ | (807,895) | $ | 137 | $ | 27,969 | (1,635,783) | $ | (11,614) | $ | (791,386) | $ | 140,905 | $ | 1,013,835 |
Class A common stock | Class D common stock | Mezzanine Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Non-redeemable non-controlling interests | Total Stockholders' Equity | Redeemable preferred non-controlling interests | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | — | $ | — | 144,399,037 | $ | 14 | $ | — | $ | — | $ | 1,188 | $ | 1,202 | $ | 30,210 | $ | 63,545 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (242) | (242) | — | (4,225) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from non-redeemable non-controlling interest | ` | — | — | — | — | 5,738 | 5,738 | — | (95) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization on payment to acquire non-redeemable noncontrolling interest | — | — | — | — | — | — | — | — | — | (91) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from redeemable preferred non-controlling interests | — | — | — | — | — | — | — | — | 25,000 | (267) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind preferred dividend | — | — | — | — | — | 717 | (717) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | 160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | — | $ | — | 144,399,037 | $ | 14 | $ | — | $ | — | $ | 6,684 | $ | 6,698 | $ | 55,927 | $ | 58,310 |
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 3,885,366 | $ | (319,783 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 0 | 25,000 | ||||||
General and administrative expenses paid by related party under promissory note | 0 | 26,800 | ||||||
Change in fair value of derivative warrant liabilities | (5,251,820 | ) | (271,160 | ) | ||||
Financing costs - warrant liabilities | 0 | 462,620 | ||||||
Net gain on investments held in Trust Account | (24,553 | ) | (153 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 122,874 | (1,409,464 | ) | |||||
Accounts payable | 70,758 | 1,442,343 | ||||||
Accrued expenses | 18,903 | 23,534 | ||||||
Accrued expenses - related party | 1,097 | 10,000 | ||||||
Deferred legal fees | 925,102 | 0 | ||||||
Net cash used in operating activities | (252,273 | ) | (10,263 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Cash deposited in Trust Account | 0 | (311,163,050 | ) | |||||
Net cash used in investing activities | 0 | (311,163,050 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from note payable to related party | 0 | 100 | ||||||
Repayment of note payable to related party | 0 | (171,742 | ) | |||||
Proceeds received from initial public offering | 0 | 311,163,050 | ||||||
Proceeds received from private placement | 0 | 9,223,261 | ||||||
Offering costs paid | 0 | (6,243,461 | ) | |||||
Net cash provided by financing activities | 0 | 313,971,208 | ||||||
Net (decrease) increase in cash | (252,273 | ) | 2,797,895 | |||||
Cash - beginning of the period | 811,526 | 0 | ||||||
Cash—end of the period | $ | 559,253 | $ | 2,797,895 | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Offering costs included in accounts payable | $ | 0 | $ | 252,000 | ||||
Offering costs included in accrued expenses | $ | 0 | $ | 70,000 | ||||
Offering costs paid by related party under promissory note | $ | 0 | $ | 144,842 | ||||
Deferred underwriting commissions | $ | 0 | $ | 10,890,707 | ||||
Forfeiture of Class B ordinary shares from Sponsor | $ | 0 | $ | 13 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (7,346) | $ | (4,467) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Income from equity method investments | (705) | 657 | |||||||||
Provision for bad debts | 492 | — | |||||||||
Amortization of operating right-of-use assets | 147 | 190 | |||||||||
Depreciation and amortization | 3,465 | 3,321 | |||||||||
Amortization of deferred financing costs | 450 | 438 | |||||||||
Loss on warrant exchange | 338 | — | |||||||||
Accretion expense related to asset retirement obligation | 102 | 75 | |||||||||
Stock-based compensation | 971 | 160 | |||||||||
Paid-in-kind interest income | (78) | (222) | |||||||||
Change in fair value of Convertible Note Payable | 563 | 1,020 | |||||||||
Unrealized loss on derivative financial instruments | (4,855) | 214 | |||||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||||||
Accounts receivable | 611 | (3,739) | |||||||||
Accounts receivable, related party | 8,375 | — | |||||||||
Fuel tax credits receivable | 1,649 | — | |||||||||
Capital spares | (13) | (20) | |||||||||
Brown gas and parts inventory | (1,968) | (703) | |||||||||
Environmental credits held for sale | (853) | 246 | |||||||||
Prepaid expense and other current assets | 1,078 | 275 | |||||||||
Contract assets | 1,227 | (2,289) | |||||||||
Accounts payable | 622 | (4,716) | |||||||||
Accounts payable, related party | (507) | 326 | |||||||||
Fuel tax credits payable | (940) | — | |||||||||
Accrued payroll | 1,547 | (1,936) | |||||||||
Accrued expenses | (1,199) | 2,450 | |||||||||
Operating lease liabilities - current and non-current | (107) | (190) | |||||||||
Other current and non-current liabilities | 601 | 125 | |||||||||
Contract liabilities | 504 | (200) | |||||||||
Net cash provided by (used in) operating activities | 4,171 | (8,985) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property, plant, and equipment | (38,780) | (22,509) | |||||||||
Proceeds from short term investments | 27,986 | — | |||||||||
Distributions received from equity method investment | 1,900 | — | |||||||||
Net cash used in investing activities | (8,894) | (22,509) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from Sunoma loan | — | 1,506 | |||||||||
Proceeds from OPAL Term Loan | 10,000 | 15,000 | |||||||||
Cash paid for purchase of shares upon exercise of put option | (16,391) | — | |||||||||
Financing costs paid to other third parties | (100) | (1,858) | |||||||||
Repayment of Senior Secured Credit Facility | (22,750) | (1,219) | |||||||||
Repayment of OPAL Term Loan | (6,933) | (1,611) | |||||||||
Repayment of Municipality loan | (45) | (55) | |||||||||
Proceeds from sale of non-redeemable non-controlling interest | 3,543 | 5,643 | |||||||||
Proceeds from sale of non-controlling interest, related party | — | 25,000 | |||||||||
Net cash (used in) provided by financing activities | (32,676) | 42,406 |
Net (decrease) increase in cash, restricted cash, and cash equivalents | (37,399) | 10,912 | |||||||||
Cash, restricted cash, and cash equivalents, beginning of period | 77,221 | 42,054 | |||||||||
Cash, restricted cash, and cash equivalents, end of period | $ | 39,822 | $ | 52,966 | |||||||
Supplemental disclosure of cash flow information | |||||||||||
Interest paid, net of $1,808 and $0 capitalized, respectively | $ | 1,322 | $ | 1,536 | |||||||
Noncash investing and financing activities: | |||||||||||
Paid-in-kind dividend on redeemable preferred non-controlling interests | $ | 2,763 | $ | 717 | |||||||
Accrual for purchase of Property, plant and equipment included in Accounts payable and Accrued capital expenses | $ | 15,424 | $ | 11,922 | |||||||
Right-of-use assets for finance leases as of January 1, 2022 included in Property, plant and equipment, net | $ | — | $ | 801 | |||||||
Lease liabilities for finance leases as of January 1, 2022 included in Accrued expenses and other current liabilities | $ | — | $ | 316 | |||||||
Lease liabilities for finance leases as of January 1, 2022 included in Other long-term liabilities | $ | — | $ | 485 | |||||||
Fair value of contingent consideration to redeem the non-controlling interest included in Other long-term liabilities | $ | — | $ | 91 | |||||||
Accrual for deferred financing costs included in Accrued expenses and other current liabilities | $ | — | $ | 2,326 |
March 31, 2023 | December 31, 2022 | |||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 33,264 | $ | 40,394 | ||||||||||
Restricted cash - current (1) | 688 | 32,402 | ||||||||||||
Long-term assets: | ||||||||||||||
Restricted cash held as collateral (2) | 5,870 | 4,425 | ||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 39,822 | $ | 77,221 |
March 31, 2023 | |||||
Balance, December 31, 2022 - Current and non-current | $ | 6,256 | |||
Accretion expense | 102 | ||||
Total asset retirement obligation | 6,358 | ||||
Less: current portion | (1,296) | ||||
Total asset retirement obligation, net of current portion | $ | 5,062 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Renewable power sales | $ | 9,604 | $ | 7,483 | |||||||||||||||||||
Third party construction | 7,154 | 9,870 | |||||||||||||||||||||
Service | 4,904 | 4,392 | |||||||||||||||||||||
Brown gas sales | 7,530 | 4,516 | |||||||||||||||||||||
Environmental credits | 12,677 | 20,577 | |||||||||||||||||||||
Parts sales | 187 | 486 | |||||||||||||||||||||
Operating agreements | — | 585 | |||||||||||||||||||||
Total revenue from contracts with customers | 42,056 | 47,909 | |||||||||||||||||||||
Lease revenue | 901 | 1,138 | |||||||||||||||||||||
Total revenue | $ | 42,957 | $ | 49,047 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Loss on warrant exchange | $ | 338 | $ | — | |||||||||||||||||||
Gain on transfer of non-financial asset in exchange for services received (1) | (270) | — | |||||||||||||||||||||
Other expense | $ | 68 | $ | — |
March 31, 2023 | December 31, 2022 | ||||||||||
Accounts receivable, net | $ | 29,979 | $ | 31,083 | |||||||
Contract assets: | |||||||||||
Cost and estimated earnings in excess of billings | $ | 5,977 | $ | 7,027 | |||||||
Accounts receivable retainage, net | 2,568 | 2,744 | |||||||||
Contract assets total | $ | 8,545 | $ | 9,771 | |||||||
Contract liabilities: | |||||||||||
Billings in excess of costs and estimated earnings | $ | 8,518 | $ | 8,013 | |||||||
Contract liabilities total | $ | 8,518 | $ | 8,013 |
Pine Bend | Noble Road | GREP | Total | |||||||||||||||||||||||
Percentage of ownership | 50 | % | 50 | % | 20 | % | ||||||||||||||||||||
Balance at December 31, 2022 | $ | 22,518 | $ | 25,165 | $ | 4,082 | $ | 51,765 | ||||||||||||||||||
Net income from equity method investment | 194 | 714 | (203) | 705 | ||||||||||||||||||||||
Distributions from return of investment in equity method investment | — | (1,900) | — | (1,900) | ||||||||||||||||||||||
Balance at March 31, 2023 | $ | 22,712 | $ | 23,979 | $ | 3,879 | $ | 50,570 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||
Revenue | $ | 7,539 | $ | 296 | ||||||||||||||||||||||||||||
Gross profit | 1,651 | (991) | ||||||||||||||||||||||||||||||
Net income | (213) | (1,177) | ||||||||||||||||||||||||||||||
Net income from equity method investments | $ | 705 | $ | (657) |
March 31, 2023 | December 31, 2022 | ||||||||||
Plant and equipment | $ | 203,587 | $ | 201,655 | |||||||
CNG/RNG fueling stations | 39,472 | 34,567 | |||||||||
Construction in progress | 184,849 | 152,105 | |||||||||
Buildings | 2,585 | 2,585 | |||||||||
Land | 1,303 | 1,303 | |||||||||
Service equipment | 2,028 | 1,888 | |||||||||
Leasehold improvements | 815 | 815 | |||||||||
Vehicles | 255 | 313 | |||||||||
Office furniture and equipment | 307 | 307 | |||||||||
Computer software | 277 | 277 | |||||||||
Vehicles - finance leases | 1,135 | 1,236 | |||||||||
Other | 504 | 487 | |||||||||
437,117 | 397,538 | ||||||||||
Less: accumulated depreciation | (100,818) | (100,215) | |||||||||
Property, plant, and equipment, net | $ | 336,299 | $ | 297,323 |
March 31, 2023 | ||||||||||||||||||||||||||
Cost | Accumulated Amortization | Intangible Assets, Net | Weighted Average Amortization Period (Years) | |||||||||||||||||||||||
Power purchase agreements | $ | 8,999 | $ | (7,611) | $ | 1,388 | 18.1 | |||||||||||||||||||
Transmission/distribution interconnection | 1,600 | (995) | 605 | 15.1 | ||||||||||||||||||||||
CNG sales contract | 807 | (807) | — | 10.0 | ||||||||||||||||||||||
Intellectual property | 43 | (29) | 14 | 5.0 | ||||||||||||||||||||||
Total intangible assets | $ | 11,449 | $ | (9,442) | $ | 2,007 |
December 31, 2022 | ||||||||||||||||||||||||||
Cost | Accumulated Amortization | Intangible Assets, Net | Weighted Average Amortization Period (years) | |||||||||||||||||||||||
Power purchase agreements | $ | 8,999 | $ | (7,488) | $ | 1,511 | 18.1 | |||||||||||||||||||
Transmission/distribution interconnection | 1,600 | (971) | 629 | 15.1 | ||||||||||||||||||||||
CNG sales contract | 807 | (799) | 8 | 10.0 | ||||||||||||||||||||||
Intellectual property | 43 | (24) | 19 | 5.0 | ||||||||||||||||||||||
Total intangible assets | $ | 11,449 | $ | (9,282) | $ | 2,167 |
Nine months ended December 31, 2023 | $ | 388 | |||
Fiscal year: | |||||
2024 | 267 | ||||
2025 | 267 | ||||
2026 | 239 | ||||
2027 | 238 | ||||
Thereafter | 608 | ||||
$ | 2,007 |
RNG Fuel | Fuel Station Services | Total | |||||||||||||||
Balance at December 31, 2022 | $ | 51,155 | $ | 3,453 | $ | 54,608 | |||||||||||
Balance at March 31, 2023 | $ | 51,155 | $ | 3,453 | $ | 54,608 |
March 31, 2023 | December 31, 2022 | |||||||||||||
Senior Secured Credit Facility, term loan | $ | — | $ | 15,250 | ||||||||||
Less: unamortized debt issuance costs | — | — | ||||||||||||
Less: current portion | — | (15,250) | ||||||||||||
Senior Secured Credit Facility, term loan, net of debt issuance costs | — | — | ||||||||||||
Senior Secured Credit Facility, working capital facility | — | 7,500 | ||||||||||||
Less: current portion | — | (7,500) | ||||||||||||
Senior Secured Credit Facility, working capital facility | — | — | ||||||||||||
OPAL Term Loan | 99,157 | 96,090 | ||||||||||||
Less: unamortized debt issuance costs | (1,510) | (1,758) | ||||||||||||
Less: current portion | (27,732) | (27,732) | ||||||||||||
OPAL Term Loan, net of debt issuance costs | 69,915 | 66,600 | ||||||||||||
Sunoma Loan | 23,000 | 23,000 | ||||||||||||
Less: unamortized debt issuance costs | (895) | (908) | ||||||||||||
Less: current portion | (768) | (380) | ||||||||||||
Sunoma Loan, net of debt issuance costs | 21,337 | 21,712 | ||||||||||||
Convertible Note Payable | 29,091 | 28,528 | ||||||||||||
Less: current portion | (29,091) | (28,528) | ||||||||||||
Convertible Note Payable | — | — | ||||||||||||
Municipality Loan | 31 | 76 | ||||||||||||
Less: current portion | (31) | (76) | ||||||||||||
Municipality Loan | — | — | ||||||||||||
Non-current borrowings total | $ | 91,252 | $ | 88,312 |
OPAL Term Loan | Sunoma Loan | Convertible Note Payable (1) | Municipality Loan | Total | ||||||||||||||||||||||||||||
Nine months ending December 31, 2023 | $ | 20,799 | $ | 380 | $ | 29,091 | $ | 31 | $ | 50,301 | ||||||||||||||||||||||
Fiscal year: | ||||||||||||||||||||||||||||||||
2024 | 27,732 | 1,608 | — | — | 29,340 | |||||||||||||||||||||||||||
2025 | 50,626 | 1,743 | — | — | 52,369 | |||||||||||||||||||||||||||
2026 | — | 1,883 | — | — | 1,883 | |||||||||||||||||||||||||||
2027 | — | 17,386 | — | 17,386 | ||||||||||||||||||||||||||||
$ | 99,157 | $ | 23,000 | $ | 29,091 | $ | 31 | $ | 151,279 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Senior Secured Credit Facility | $ | 281 | $ | 580 | ||||||||||||||||||||||
Convertible Note Payable mark-to-market | 563 | 1,020 | ||||||||||||||||||||||||
Sunoma Loan | 445 | 510 | ||||||||||||||||||||||||
OPAL Term Loan (1) | 19 | 856 | ||||||||||||||||||||||||
Commitment fees and other finance fees | 128 | 101 | ||||||||||||||||||||||||
Amortization of deferred financing cost | 450 | 438 | ||||||||||||||||||||||||
Interest expense on finance leases | 16 | 6 | ||||||||||||||||||||||||
Interest income | (1,261) | (454) | ||||||||||||||||||||||||
Total interest expense | $ | 641 | $ | 3,057 |
Description | Location in Balance Sheet | March 31, 2023 | December 31, 2022 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Operating leases (1): | ||||||||||||||||||||
Site leases (2) | Right-of-use assets | $ | 10,298 | $ | 10,338 | |||||||||||||||
Office lease (3) | Right-of-use assets | 1,299 | 1,406 | |||||||||||||||||
11,597 | 11,744 | |||||||||||||||||||
Finance leases (1): | ||||||||||||||||||||
Vehicle leases | Property, plant and equipment, net | 1,135 | 1,236 | |||||||||||||||||
12,732 | 12,980 | |||||||||||||||||||
Liabilities (1): | ||||||||||||||||||||
Sites leases | Lease liabilities - current portion | 188 | 181 | |||||||||||||||||
Office lease | Lease liabilities - current portion | 479 | 449 | |||||||||||||||||
Vehicle leases | Accrued expenses and other current liabilities | 410 | 449 | |||||||||||||||||
1,077 | 1,079 | |||||||||||||||||||
Sites leases | Lease liabilities - non-current portion | 10,114 | 10,135 | |||||||||||||||||
Office lease | Lease liabilities - non-current portion | 986 | 1,110 | |||||||||||||||||
Vehicle leases | Other long-term liabilities | 740 | 825 | |||||||||||||||||
$ | 11,840 | $ | 12,070 |
Description | Location in Statement of Operations | Three Months Ended March 31, | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Operating lease expense for site leases | Cost of sales - RNG Fuel | $ | 263 | $ | 263 | |||||||||||||||
Operating lease expense for office lease | Selling, general, administrative expenses | 121 | 121 | |||||||||||||||||
Amortization of right-of-use assets - finance leases | Depreciation, amortization and accretion expense | 140 | 83 | |||||||||||||||||
Interest expense on lease liabilities - finance leases | Interest and financing expense, net | 16 | 6 | |||||||||||||||||
$ | 540 | $ | 473 |
Weighted average remaining lease term (years) | March 31, 2023 | |||||||
Operating leases | 18.5 years | |||||||
Financing leases | 2.9 years | |||||||
Weighted average discount rate | ||||||||
Operating leases | 7.91 | % | ||||||
Financing leases | 5.98 | % |
Site leases | Office leases | Vehicle leases | Total | |||||||||||||||||||||||
Discount rate upon adoption | 5.4 | % | 2.3 | % | 7.6 | % | ||||||||||||||||||||
2023 | $ | 783 | $ | 391 | $ | 360 | $ | 1,534 | ||||||||||||||||||
2024 | 1,044 | 540 | 421 | 2,005 | ||||||||||||||||||||||
2025 | 1,044 | 562 | 314 | 1,920 | ||||||||||||||||||||||
2026 | 1,044 | 47 | 160 | 1,251 | ||||||||||||||||||||||
2027 and beyond | 17,913 | — | 17,913 | |||||||||||||||||||||||
21,828 | 1,540 | 1,255 | 24,623 | |||||||||||||||||||||||
Present value of lease liability | 10,302 | 1,465 | 1,150 | 12,917 | ||||||||||||||||||||||
Lease liabilities - current portion | 188 | 479 | 410 | 1,077 | ||||||||||||||||||||||
Lease liabilities - non-current portion | 10,114 | 986 | 740 | 11,840 | ||||||||||||||||||||||
Total lease liabilities | $ | 10,302 | $ | 1,465 | $ | 1,150 | $ | 12,917 | ||||||||||||||||||
Discount based on incremental borrowing rate | $ | 11,526 | $ | 75 | $ | 105 | $ | 11,706 |
Interest rate swap detail | Notional Amount | ||||||||||||||||||||||
Trade date | Fixed rate | Start date | End date | March 31, 2023 | December 31, 2022 | ||||||||||||||||||
August 15, 2022 | 2.47 | % | June 28, 2024 | August 4, 2027 | $ | 41,284 | 41,284 | ||||||||||||||||
August 15, 2022 | 2.47 | % | June 28, 2024 | August 4, 2027 | 20,642 | 20,642 | |||||||||||||||||
$ | 61,926 | $ | 61,926 |
March 31, 2023 | December 31, 2022 | Location of Fair Value Recognized in Balance Sheet | |||||||||||||||
Derivatives designated as economic hedges: | |||||||||||||||||
Current portion of swaption | $ | 116 | $ | 182 | Derivative financial assets, current portion | ||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Long term portion of the interest rate swaps | 598 | 954 | Derivative financial assets, non-current | ||||||||||||||
$ | 714 | $ | 1,136 |
Three Months Ended March 31, | Location of (Loss) Gain Recognized in Operations from Derivatives | |||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 619 | ||||||||||||||||||||||
Swaption | (66) | — | ||||||||||||||||||||||||
Net periodic settlements | — | (383) | ||||||||||||||||||||||||
$ | (66) | $ | 236 | Change in fair value of derivative instruments, net |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets in the Balance Sheet | |||||||||||||||
Balance, March 31, 2023: | |||||||||||||||||
Interest rate swap asset | $ | 598 | $ | — | $ | 598 | |||||||||||
Swaption asset | 116 | — | 116 | ||||||||||||||
$ | 714 | $ | — | $ | 714 | ||||||||||||
Balance, December 31, 2022: | |||||||||||||||||
Interest rate swap asset | $ | 954 | $ | — | $ | 954 | |||||||||||
Swaption asset | 182 | — | 182 | ||||||||||||||
$ | 1,136 | $ | — | $ | 1,136 |
Trade Date | Period From | Period To | Notional Quantity per Year (“MWh”) | Average Contract Price (per MWh) | ||||||||||||||||||||||
October 17, 2022 | January 1, 2023 | December 31, 2024 | 70,176 | $ | 68.50 | |||||||||||||||||||||
October 17, 2022 | January 1, 2023 | December 31, 2024 | 26,280 | $ | 65.50 | |||||||||||||||||||||
November 17, 2022 | January 1, 2023 | December 31, 2024 | 35,088 | $ | 81.50 |
Derivatives not designated as hedging instruments | Location of (loss) gain recognized | Three Months Ended March 31, | ||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Commodity swaps - realized gain | Revenues - Renewable power | $ | 371 | $ | 37 | |||||||||||||||||||||
Commodity swaps - unrealized gain (loss) | Revenues - Renewable power | 922 | (833) | |||||||||||||||||||||||
Total realized and unrealized gain (loss) | Revenues - Renewable power | $ | 1,293 | $ | (796) |
Fair Value | Location of Fair value recognized in Balance Sheet | ||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||
Derivatives designated as economic hedges | |||||||||||||||||
Current portion of unrealized gain on commodity swaps | $ | 333 | $ | — | Derivative financial asset, current portion | ||||||||||||
Non-current portion of unrealized gain on commodity swaps | $ | 459 | $ | — | Derivative financial asset, non-current portion | ||||||||||||
Current portion of unrealized loss on commodity swaps | $ | — | $ | (130) | Derivative financial liability, current portion |
Derivative liability | Three Months Ended March 31, | Location of (Loss) Gain Recognized in Operations from Derivatives | |||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||
Put option to Meteora | $ | 311 | $ | — | |||||||||||||||||||||||||
Sponsor Earnout Awards | 310 | — | |||||||||||||||||||||||||||
OPAL Earnout Awards | 4,000 | — | |||||||||||||||||||||||||||
$ | 4,621 | $ | — | Change in fair value of derivative instruments, net |
For the three months ended March 31, 2022 | For the period January 13, 2021 (inception) through March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net (loss) per ordinary share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 3,108,293 | $ | 777,073 | $ | (97,791 | ) | $ | (221,992 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average ordinary shares outstanding | 31,116,305 | 7,779,076 | 3,067,805 | 6,964,134 | ||||||||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.10 | $ | 0.10 | $ | (0.03 | ) | $ | (0.03 | ) | ||||||
Gross Proceeds | $ | 311,163,050 | ||
Less: | ||||
Offering costs allocated to Class A shares subject to possible redemption | (17,138,390 | ) | ||
Proceeds allocated to Public Warrants at issuance | (5,948,230 | ) | ||
Plus: | ||||
Re-measurement on Class A ordinary shares subject to possible redemption amount | 23,086,620 | |||
Class A ordinary shares subject to possible redemption | $ | 311,163,050 | ||
Fair value as of March 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Asset retirement obligation | $ | — | $ | — | $ | 6,358 | $ | 6,358 | |||||||||||||||
Convertible Note Payable | — | 29,091 | — | 29,091 | |||||||||||||||||||
Earnout liabilities | — | — | 4,480 | 4,480 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Short term investments | 36,989 | — | — | 36,989 | |||||||||||||||||||
Commodity swap contracts | — | 792 | — | 792 | |||||||||||||||||||
Swaption | — | 116 | — | 116 | |||||||||||||||||||
Interest rate swaps | $ | — | $ | 598 | $ | — | $ | 598 |
Fair value as of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Asset retirement obligation | $ | — | $ | — | $ | 6,256 | $ | 6,256 | |||||||||||||||
Convertible Note Payable (1) | — | 28,528 | 28,528 | ||||||||||||||||||||
Put option with Meteora | — | — | 4,466 | 4,466 | |||||||||||||||||||
Commodity swap contracts | — | 130 | — | 130 | |||||||||||||||||||
Earnout liabilities | — | — | 8,790 | 8,790 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Short term investments | 64,976 | — | — | 64,976 | |||||||||||||||||||
Swaption | — | 182 | — | 182 | |||||||||||||||||||
Commodity swap contracts | — | 954 | — | 954 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Staffing and management services | $ | 575 | $ | 473 | ||||||||||
Rent - fixed compensation | 165 | 183 | ||||||||||||
IT services | 726 | 539 | ||||||||||||
Total | $ | 1,466 | $ | 1,195 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Renewable Power | $ | 9,918 | $ | 9,637 | |||||||||||||||||||
RNG Fuel | 19,733 | 18,098 | |||||||||||||||||||||
Fuel Station Services | 24,575 | 24,170 | |||||||||||||||||||||
Other(1) | 17 | 36 | |||||||||||||||||||||
Intersegment | (3,747) | (2,598) | |||||||||||||||||||||
Equity Method Investment(s) | (7,539) | (296) | |||||||||||||||||||||
$ | 42,957 | $ | 49,047 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Interest and Financing Expense, Net: | ||||||||||||||||||||||||||
Renewable Power | $ | (264) | $ | (917) | ||||||||||||||||||||||
RNG Fuel | (655) | (88) | ||||||||||||||||||||||||
Fuel Station Services | 10 | (6) | ||||||||||||||||||||||||
Corporate | 268 | (2,046) | ||||||||||||||||||||||||
$ | (641) | $ | (3,057) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Depreciation, Amortization, and Accretion: | ||||||||||||||||||||||||||
Renewable Power | $ | 1,452 | $ | 1,798 | ||||||||||||||||||||||
RNG Fuel | 2,024 | 1,126 | ||||||||||||||||||||||||
Fuel Station Services | 790 | 666 | ||||||||||||||||||||||||
Other(1) | 16 | 33 | ||||||||||||||||||||||||
Equity Method Investment(s) | (715) | (227) | ||||||||||||||||||||||||
$ | 3,567 | $ | 3,396 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
Net loss | ||||||||||||||||||||||||||
Renewable Power | $ | (903) | $ | (2,078) | ||||||||||||||||||||||
RNG Fuel | 1,177 | 1,918 | ||||||||||||||||||||||||
Fuel Station Services | 41 | 4,555 | ||||||||||||||||||||||||
Corporate | (8,366) | (8,205) | ||||||||||||||||||||||||
Equity Method Investment(s) | 705 | (657) | ||||||||||||||||||||||||
$ | (7,346) | $ | (4,467) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Cash paid for Purchases of Property, Plant, and Equipment: | |||||||||||||||||||||||
Renewable Power | $ | — | $ | — | |||||||||||||||||||
Fuel Station Services | 5,665 | 1,911 | |||||||||||||||||||||
RNG Fuel | 33,115 | 20,598 | |||||||||||||||||||||
$ | 38,780 | $ | 22,509 |
March 31, 2023 | December 31, 2022 | ||||||||||
Total Assets: | |||||||||||
Renewable Power | $ | 46,199 | $ | 43,468 | |||||||
RNG Fuel | 347,591 | 347,750 | |||||||||
Fuel Station Services | 110,113 | 119,669 | |||||||||
Corporate and other | 52,229 | 82,204 | |||||||||
Equity Method Investment(s) | 50,570 | 51,765 | |||||||||
$ | 606,702 | $ | 644,856 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 311,200,024 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities-public | $ | 8,276,940 | $ | — | $ | — | ||||||
Derivative warrant liabilities-private | $ | — | $ | — | $ | 12,266,940 |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 7,274 | $ | 12,506 | |||||||
Accounts receivable, net | 252 | 966 | |||||||||
Restricted cash - current | 688 | 6,971 | |||||||||
Environmental credits held for sale | 29 | — | |||||||||
Prepaid expenses and other current assets | 251 | 415 | |||||||||
Total current assets | 8,494 | 20,858 | |||||||||
Property, plant and equipment, net | 93,225 | 73,140 | |||||||||
Restricted cash, non-current | 3,157 | 2,923 | |||||||||
Total assets | $ | 104,876 | $ | 96,921 | |||||||
Liabilities and equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 10,430 | $ | 4,896 | |||||||
Accounts payable, related party | 279 | 433 | |||||||||
Accrued capital expenses | 8,027 | 7,821 | |||||||||
Accrued expenses | 178 | 646 | |||||||||
Sunoma Loan- current portion | 768 | 380 | |||||||||
Total current liabilities | 19,682 | 14,176 | |||||||||
Sunoma loan, net of debt issuance costs | 21,337 | 21,712 | |||||||||
Total liabilities | 41,019 | 35,888 | |||||||||
Equity | |||||||||||
Stockholders' equity | 35,888 | 34,588 | |||||||||
Non-redeemable non-controlling interests | 27,969 | 26,445 | |||||||||
Total equity | 63,857 | 61,033 | |||||||||
Total Liabilities and Equity | $ | 104,876 | $ | 96,921 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 311,175,471 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities-public | $ | 10,392,850 | $ | — | $ | — | ||||||
Derivative warrant liabilities-private | $ | — | $ | — | $ | 15,402,850 |
Series A-1 preferred units | Series A preferred units | |||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Total | ||||||||||||||||||||||||||||
Balance, December 31, 2022 | 300,000 | $ | 32,736 | 1,000,000 | $ | 105,406 | $ | 138,142 | ||||||||||||||||||||||||
Series A units issued by OPAL Fuels | — | — | — | — | — | |||||||||||||||||||||||||||
Paid-in-kind dividends attributable to OPAL Fuels | 549 | 1,769 | 2,318 | |||||||||||||||||||||||||||||
Paid-in kind dividends attributable to Class A common stockholders | — | 106 | 339 | 445 | ||||||||||||||||||||||||||||
Balance, March 31, 2023 | 300,000 | $ | 33,391 | 1,000,000 | $ | 107,514 | $ | 140,905 |
March 31, 2023 | |||||||||||
Net loss attributable to Class A common stockholders | $ | (1,579) | |||||||||
Weighted average number of shares of Class A common stock - basic | 27,383,562 | ||||||||||
Dilutive effect of stock options, restricted stock units, performance units, Convertible note payable, earnout shares, Redeemable preferred non-controlling interests, Redeemable non-controlling interests | — | ||||||||||
Weighted average number of shares of Class A common stock - diluted | 27,383,562 | ||||||||||
Net loss per share of Class A common stock | |||||||||||
Basic | $ | (0.06) | |||||||||
Diluted | $ | (0.06) |
March 31, 2022 | December 31, 2021 | |||||||
Share price | $ | 9.92 | $ | 9.98 | ||||
Volatility | 16.3 | % | 21.8 | % | ||||
Expected life of the options to convert | 5.25 | 5.50 | ||||||
Risk-free rate | 2.4 | % | 1.3 | % | ||||
Dividend yield | 0 | 0 |
Public Warrants | Private Warrants | Total | ||||||||||
Derivative warrant liabilities at January 13, 2021 (inception) | $ | 0 | $ | 0 | $ | 0 | ||||||
Issuance of Public and Private Warrants | 5,948,230 | 9,047,530 | 14,995,760 | |||||||||
Transfer to Level 1 | (10,455,080 | ) | 0 | (10,455,080 | ) | |||||||
Change in fair value of derivative warrant liabilities | 4,506,850 | 6,355,320 | 10,862,170 | |||||||||
Derivative warrant liabilities at December 31, 2021 | 0 | 15,402,850 | 15,402,850 | |||||||||
Change in fair value of derivative warrant liabilities | 0 | (3,135,910 | ) | (3,135,910 | ) | |||||||
Derivative warrant liabilities at March 31, 2022 | $ | 0 | $ | 12,266,940 | $ | 12,266,940 | ||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
RNG Fuel volume produced (Million MMBtus) | 0.6 | 0.4 | ||||||||||||||||||||||||
RNG Fuel volume sold (Million GGEs) | 8.3 | 6.1 | ||||||||||||||||||||||||
Total volume delivered (Million GGEs) | 32.4 | 25.6 |
OPAL's Share of Design capacity (MMbtus per year) (1) | Source of bio gas | Ownership (2) | |||||||||
RNG projects in operation: | |||||||||||
Greentree | 1,061,712 | LFG | 100% | ||||||||
Imperial | 1,061,712 | LFG | 100% | ||||||||
New River | 663,570 | LFG | 100% | ||||||||
Noble Road (3) | 464,499 | LFG | 50% | ||||||||
Pine Bend (3) | 424,685 | LFG | 50% | ||||||||
Biotown (3) | 48,573 | Dairy | 10% | ||||||||
Sunoma | 192,350 | Dairy | 90% | ||||||||
Sub total | 3,917,101 | ||||||||||
RNG projects in construction: | |||||||||||
Emerald | 1,327,140 | LFG | 50% | ||||||||
Prince William | 1,725,282 | LFG | 100% | ||||||||
Hilltop | 255,500 | Dairy | 100% | ||||||||
Vander Schaaf | 255,500 | Dairy | 100% | ||||||||
Sapphire | 796,284 | LFG | 50% | ||||||||
New England | 318,514 | LFG | 100% | ||||||||
Sub total | 4,678,220 | ||||||||||
Total | 8,595,321 |
Nameplate capacity (MW per hour) (1) | RNG conversion candidate | Stage of RNG conversion | |||||||||
California 1 | 5.2 | Yes | In Development | ||||||||
California 3 | 3.0 | No | N/A | ||||||||
California 4 | 3.2 | No | N/A | ||||||||
California 5 | 1.8 | No | N/A | ||||||||
California 6 | 1.6 | No | N/A | ||||||||
California 7 | 6.5 | No | N/A | ||||||||
California 8 | 6.5 | No | N/A | ||||||||
Florida | 2.9 | No | N/A | ||||||||
Massachusetts 2 | 3.6 | No | N/A | ||||||||
Michigan 1E(2) | 28.9 | Yes | In Construction | ||||||||
Michigan 3 | 6.3 | Yes | In Development | ||||||||
New York | 5.9 | No | N/A | ||||||||
North Carolina 1 | 14.4 | Yes | In Development | ||||||||
Pennsylvania | 8.0 | No | N/A | ||||||||
Prince William 1E (3) | 1.9 | Yes | In Development | ||||||||
Prince William 2E (4) | 4.8 | Yes | In Development | ||||||||
Virginia - Richmond | 8.0 | Yes | In Development | ||||||||
Total | 112.5 |
Three Months Ended March 31, | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
RNG fuel | $ | 12,194 | $ | 15,049 | $ | (2,855) | (19) | % | ||||||||||||||||||||||||||||||||||||||||||
Fuel station services | 20,828 | 24,874 | (4,046) | (16) | % | |||||||||||||||||||||||||||||||||||||||||||||
Renewable Power | 9,935 | 9,124 | 811 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 42,957 | 49,047 | (6,090) | (12) | % | |||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales - RNG fuel | 7,523 | 7,714 | (191) | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost of sales - Fuel station services | 20,292 | 19,663 | 629 | 3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Cost of sales - Renewable power | 8,378 | 8,408 | (30) | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 14,472 | 10,855 | 3,617 | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization, and accretion | 3,567 | 3,396 | 171 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 54,232 | 50,036 | 4,196 | 8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Operating loss | (11,275) | (989) | (10,286) | (1040) | % | |||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and financing expense, net | (641) | (3,057) | 2,416 | 79 | % | |||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative instruments, net | 3,933 | 236 | 3,697 | 1567 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other expense | (68) | — | (68) | (100) | % | |||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from equity method investments | 705 | (657) | 1,362 | 207 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss before provision for income taxes | (7,346) | (4,467) | (2,879) | (64) | % | |||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | (7,346) | (4,467) | (2,879) | 64 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to redeemable non-controlling interests | (8,233) | (4,942) | (3,291) | (67) | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to non-redeemable non-controlling interests | (297) | (242) | (55) | (23) | % | |||||||||||||||||||||||||||||||||||||||||||||
Paid-in-kind preferred dividends | 2,763 | 717 | 2,046 | 285 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to Common stockholders | (1,579) | — | (1,579) | (100) | % |
Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||
Net cash provided by (used in) from operating activities | $ | 4,171 | $ | (8,985) | ||||||||||
Net cash (used in) from investing activities | (8,894) | (22,509) | ||||||||||||
Net cash (used in) provided by from financing activities | (32,676) | 42,406 | ||||||||||||
Net increase in cash, restricted cash, and cash equivalents | $ | (37,399) | $ | 10,912 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number(or Approximate Dollar Value) of Shares that May Yet Be Purchased under the Plans or Programs | ||||||||||||||||||||||
January 1, 2023 - January 31, 2023 | 1,635,783 | $ | 10.02 | — | — | |||||||||||||||||||||
February 1, 2023 - February 28, 2023 | — | — | — | — | ||||||||||||||||||||||
March 1, 2023 - March 31, 2023 | — | — | — | — | ||||||||||||||||||||||
Total | 1,635,783 | 10.02 | — | — |
Exhibit Number | Description | |||||||
3.1* | ||||||||
3.2* | ||||||||
10.2†# | ||||||||
10.3†# | ||||||||
31.1 | ||||||||
31.2 | ||||||||
31.3 | ||||||||
32.1** | ||||||||
32.2** | ||||||||
32.3** | ||||||||
101.INS | ||||||||
Inline XBRL Instance Document | ||||||||
101.SCH | ||||||||
Inline XBRL Taxonomy Extension Schema Document | ||||||||
101.CAL | ||||||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||
101.DEF | ||||||||
Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||||
101.LAB | ||||||||
Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||
101.PRE | ||||||||
Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||
104 | ||||||||
Cover Page Interactive Data File |
* | Previously filed. | |||||||
** | This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act. | |||||||
† | Certain of the schedules and exhibits to this exhibit have been omitted pursuant to Regulation S-K Item 601(a)(5). The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon its request. | |||||||
# | Certain confidential information contained in |
By: | /s/ | |||||
Name: | Jonathan Maurer | |||||
Title: | Co- Chief Executive Officer |
OPAL Fuels Inc. | |||||
By: | /s/ Adam Comora | ||||
Name: | Adam Comora | ||||
Title: | Co- Chief Executive Officer |
OPAL Fuels Inc. | |||||
By: | /s/ Ann Anthony | ||||
Name: | Ann Anthony | ||||
Title: | Chief Financial Officer |