| Delaware | | | 3629 | | | 86-1384045 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification No.) | |
| Garett Sleichter, Esq. Rutan & Tucker, LLP 18575 Jamboree Road Suite 900 Irvine, CA 92612 Phone (714) 641-5100 Fax (714) 546-9035 | | | Michael A. Hedge, Esq. K&L Gates LLP 1 Park Plaza Twelfth Floor Irvine, CA 92614 Phone (949) 253-0900 Fax (949) 253-0902 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ | | | Smaller reporting company ☒ Emerging growth company ☒ | |
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Title of Each Class of Securities to be Registered | | | | Proposed Maximum Aggregate Offering Price(1)(2) | | | | Amount of Registration Fee(3) | | ||||||
Common Stock, par value $0.0001 per share | | | | | $ | 25,555,550 | | | | | | $ | 2,369.00 | | |
Warrants to purchase Common Stock, par value $0.0001 per share(4) | | | | | | | | | | | | | | | |
Common Stock issuable upon exercise of Warrants | | | | | $ | 28,111,050 | | | | | | $ | 2,605.89 | | |
Underwriter’s warrant(5) | | | | | | | | | | | | | | | |
Common Stock issuable upon exercise of underwriter’s warrant(5) | | | | | $ | 4,600,000 | | | | | | $ | 426.42 | | |
Total | | | | | $ | 58,266,600 | | | | | | $ | 5,401.31 | | |
| | | No Exercise of Over- Allotment | | | Full Exercise of Over- Allotment | | ||||||||||||||||||
| | | Per Unit(2) | | | Total | | | Per Unit(2) | | | Total | | ||||||||||||
Initial public offering price | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Underwriting discounts and commissions(1) | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Proceeds to us, before expenses | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | |
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| | | Years Ended December 31, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2020 | | | 2019 | | | 2021 | | | 2020 | | ||||||||||||
Statement of Operations and Comprehensive Loss Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 17,838 | | | | | $ | 16,833 | | | | | $ | 11,144 | | | | | $ | 14,304 | | |
Turbine service on sold product | | | | | 2,213 | | | | | | 2,824 | | | | | | 3,431 | | | | | | 1,617 | | |
Manufactured product | | | | | 3,276 | | | | | | 5,716 | | | | | | 3,712 | | | | | | 3,276 | | |
Total revenue | | | | $ | 23,327 | | | | | $ | 25,373 | | | | | $ | 18,287 | | | | | $ | 19,197 | | |
Cost of revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | $ | 4,884 | | | | | $ | 5,442 | | | | | $ | 4,279 | | | | | $ | 3,714 | | |
Turbine service on sold product | | | | | 1,691 | | | | | | 2,797 | | | | | | 2,254 | | | | | | 1,292 | | |
Manufactured product | | | | | 5,789 | | | | | | 9,531 | | | | | | 5,651 | | | | | | 5,419 | | |
Depreciation of fleet turbines | | | | | 5,007 | | | | | | 4,713 | | | | | | 3,357 | | | | | | 4,003 | | |
Total cost of revenue | | | | $ | 17,371 | | | | | $ | 22,483 | | | | | $ | 15,541 | | | | | $ | 14,428 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | $ | 11,826 | | | | | $ | 12,400 | | | | | $ | 10,318 | | | | | $ | 8,596 | | |
Research and development | | | | | 120 | | | | | | 237 | | | | | | 98 | | | | | | 126 | | |
Total operating expenses | | | | $ | 11,946 | | | | | $ | 12,637 | | | | | $ | 10,416 | | | | | $ | 8,722 | | |
Operating loss | | | | $ | (5,990) | | | | | $ | (9,747) | | | | | $ | (7,670) | | | | | $ | (3,953) | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | $ | (1,114) | | | | | $ | (992) | | | | | $ | (792) | | | | | $ | (876) | | |
Other income (expense), net | | | | | 31 | | | | | | (159) | | | | | | 2,562 | | | | | | (10) | | |
Total other income (expense), net | | | | $ | (1,083) | | | | | $ | (1,151) | | | | | $ | 1,770 | | | | | $ | (886) | | |
Loss before income taxes | | | | $ | (7,073) | | | | | $ | (10,898) | | | | | $ | (5,900) | | | | | $ | (4,839) | | |
Income tax expense | | | | | (31) | | | | | | (7) | | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (7,104) | | | | | $ | (10,905) | | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Other comprehensive gain (loss), net of tax | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | $ | 443 | | | | | $ | 185 | | | | | $ | (66) | | | | | $ | (17) | | |
Total other comprehensive gain (loss), net of tax | | | | $ | 443 | | | | | $ | 185 | | | | | $ | (66) | | | | | $ | (17) | | |
Comprehensive loss | | | | $ | (6,661) | | | | | $ | (10,720) | | | | | $ | (6,274) | | | | | $ | (4,861) | | |
EBITDA | | | | $ | 1,114 | | | | | $ | (3,712) | | | | | $ | 371 | | | | | $ | 1,207 | | |
Adjusted EBITDA | | | | $ | 1,209 | | | | | $ | (3,457) | | | | | $ | (1,653) | | | | | $ | 1,260 | | |
| | | As of September 30, 2021 | | |||||||||
(in thousands) | | | Actual | | | As Adjusted(1) | | ||||||
Balance Sheet Data | | | | | | | | | | | | | |
Cash | | | | $ | 1,474 | | | | | $ | 16,349 | | |
Working capital(2) | | | | $ | 11,935 | | | | | $ | 26,810 | | |
Total assets | | | | $ | 50,970 | | | | | $ | 65,845 | | |
Line of credit | | | | $ | 22,917 | | | | | $ | 22,917 | | |
Total liabilities | | | | $ | 29,172 | | | | | $ | 29,172 | | |
Total stockholder’s equity | | | | $ | 21,798 | | | | | $ | 36,673 | | |
| | | Year Ended December 31, | | | Nine Months Ended September 30 | | ||||||||||||||||||
(in thousands) | | | 2020 | | | 2019 | | | 2021 | | | 2020 | | ||||||||||||
Net Loss | | | | $ | (7,104) | | | | | $ | (10,905) | | | | | $ | (6,208) (4,844) | | | | | $ | | | |
Depreciation and amortization | | | | | 7,073 | | | | | | 6,194 | | | | | | 5,479 | | | | | | 5,170 | | |
Interest expense, net | | | | | 1,114 | | | | | | 992 | | | | | | 792 | | | | | | 876 | | |
Provision for income taxes | | | | | 31 | | | | | | 7 | | | | | | 308 | | | | | | 5 | | |
EBITDA | | | | $ | 1,114 | | | | | $ | (3,712) | | | | | $ | 371 | | | | | $ | 1,207 | | |
One-time non-operating facility relocation expenses(1) | | | | | 25 | | | | | | 185 | | | | | | 301 | | | | | | — | | |
PPP loan forgiveness | | | | | — | | | | | | — | | | | | | (2,378) | | | | | | — | | |
Equity-based compensation | | | | | 70 | | | | | | 70 | | | | | | 53 | | | | | | 53 | | |
Adjusted EBITDA | | | | $ | 1,209 | | | | | $ | (3,457) | | | | | $ | (1,653) | | | | | $ | 1,260 | | |
| | | As of September 30, 2021 | | |||||||||
| | | Actual | | | As Adjusted | | ||||||
| | | (in thousands) | | |||||||||
Cash | | | | $ | 1,474 | | | | | $ | 16,349 | | |
Line of credit | | | | | 22,917 | | | | | | 22,917 | | |
Notes payable, net of current portion | | | | | — | | | | | | — | | |
Capital leases, net of current portion | | | | | 92 | | | | | | 92 | | |
Preferred stock, par value $0.0001 per share; no shares authorized, issued and outstanding, actual; 5,000,000 shares authorized, no shares issued or outstanding, as adjusted | | | | | — | | | | | | — | | |
Common stock, par value $0.0001 per share 100,000,000 shares authorized, 0 shares issued and outstanding, actual; 100,000,000 shares authorized, 11,910,100 shares issued and outstanding, as adjusted | | | | | — | | | | | | 1 | | |
Net parent investment | | | | | 159,677 | | | | | | 159,677 | | |
Additional paid-in capital | | | | | — | | | | | | 14,874 | | |
Accumulated deficit | | | | | (138,356) | | | | | | (138,356) | | |
Accumulated other comprehensive income | | | | | 477 | | | | | | 477 | | |
Total stockholder’s equity | | | | $ | 21,798 | | | | | $ | 36,673 | | |
Total capitalization | | | | $ | 44,807 | | | | | $ | 59,682 | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | 9.00 | | |
| Historical net tangible book value per share as of September 30, 2021 | | | | $ | 0.00 | | | | |||||
| Pro forma increase in net tangible book value per share as of September 30, 2021 | | | | $ | 2.23 | | | | |||||
| Pro forma net tangible book value per share as of September 30, 2021 | | | | $ | 2.23 | | | | |||||
| Increase in pro forma net tangible book value per share attributable to investors purchasing Units in this offering | | | | $ | 0.83 | | | | |||||
| Pro forma as adjusted net tangible book value per share after this offering | | | | $ | 3.06 | | | | |||||
| Dilution per share to investors in this offering | | | | | | | | | | $ | 5.94 | | |
| | | Shares Purchased | | | Total Consideration | | | Average Price Per Share | | |||||||||||||||||||||
| | | Number | | | Percent | | | Amount | | | Percent | | ||||||||||||||||||
Existing stockholders | | | | | 9,687,878 | | | | | | 81.3% | | | | | $ | 126,500,000 | | | | | | 86.3% | | | | | $ | 13.06 | | |
New investors | | | | | 2,222,222 | | | | | | 18.7% | | | | | $ | 20,000,000 | | | | | | 13.7% | | | | | $ | 9.00 | | |
Total | | | | | 11,910,100 | | | | | | 100% | | | | | $ | 146,500,000 | | | | | | 100% | | | | | $ | 12.30 | | |
| | | Years Ended December 31, | | |||||||||
(in thousands) | | | 2020 | | | 2019 | | ||||||
| | | (FEI and FLPS) | | |||||||||
Statement of Operations and Comprehensive Loss Data: | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 17,838 | | | | | $ | 16,833 | | |
Turbine service on sold product | | | | | 2,213 | | | | | | 2,824 | | |
Manufactured product | | | | | 3,276 | | | | | | 5,716 | | |
Total revenue | | | | $ | 23,327 | | | | | $ | 25,373 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | $ | 4,884 | | | | | $ | 5,442 | | |
Turbine service on sold product | | | | | 1,691 | | | | | | 2,797 | | |
Manufactured product | | | | | 5,789 | | | | | | 9,531 | | |
Depreciation of fleet turbines | | | | | 5,007 | | | | | | 4,713 | | |
Total cost of revenue | | | | $ | 17,371 | | | | | $ | 22,483 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | $ | 11,826 | | | | | $ | 12,400 | | |
Research and development | | | | | 120 | | | | | | 237 | | |
Total operating expenses | | | | $ | 11,946 | | | | | $ | 12,637 | | |
Operating loss | | | | $ | (5,990) | | | | | $ | (9,747) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | $ | (1,114) | | | | | $ | (992) | | |
Other (expense) income, net | | | | | 31 | | | | | | (159) | | |
Total other income (expense), net | | | | $ | (1,083) | | | | | $ | (1,151) | | |
Loss before income taxes | | | | $ | (7,073) | | | | | $ | (10,898) | | |
Income tax provision | | | | | (31) | | | | | | (7) | | |
Net loss | | | | $ | (7,104) | | | | | $ | (10,905) | | |
Other comprehensive gain, net of tax | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | $ | 443 | | | | | $ | 185 | | |
Total other comprehensive gain, net of tax | | | | $ | 443 | | | | | $ | 185 | | |
Comprehensive loss | | | | $ | (6,661) | | | | | $ | (10,720) | | |
EBITDA | | | | $ | 1,114 | | | | | $ | (3,712) | | |
Adjusted EBITDA | | | | $ | 1,209 | | | | | $ | (3,457) | | |
| | | Nine Months Ended September 30, | | |||||||||
(in thousands) | | | 2021 | | | 2020 | | ||||||
Statement of Operations and Comprehensive Loss Data: | | | | ||||||||||
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 11,144 | | | | | $ | 14,304 | | |
Turbine service on sold product | | | | | 3,431 | | | | | | 1,617 | | |
Manufactured product | | | | | 3,712 | | | | | | 3,276 | | |
Total revenue | | | | $ | 18,287 | | | | | $ | 19,197 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | $ | 4,279 | | | | | $ | 3,714 | | |
Turbine service on sold product | | | | | 2,254 | | | | | | 1,292 | | |
Manufactured product | | | | | 5,651 | | | | | | 5,419 | | |
Depreciation of fleet turbines | | | | | 3,357 | | | | | | 4,003 | | |
Total cost of revenue | | | | $ | 15,541 | | | | | $ | 14,428 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | $ | 10,318 | | | | | $ | 8,596 | | |
Research and development | | | | | 98 | | | | | | 126 | | |
Total operating expenses | | | | $ | 10,416 | | | | | $ | 8,722 | | |
Operating loss | | | | $ | (7,670) | | | | | $ | (3,953) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | $ | (792) | | | | | $ | (876) | | |
Other (expense) income, net | | | | | 2,562 | | | | | | (10) | | |
Total other income (expense), net | | | | $ | 1,770 | | | | | $ | (886) | | |
Loss before income taxes | | | | $ | (5,900) | | | | | $ | (4,839) | | |
Income tax provision | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Other comprehensive gain (loss), net of tax | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | $ | (66) | | | | | $ | (17) | | |
Total other comprehensive gain (loss), net of tax | | | | $ | (66) | | | | | $ | (17) | | |
Comprehensive loss | | | | $ | (6,274) | | | | | $ | (4,861) | | |
EBITDA | | | | $ | 371 | | | | | $ | 1,207 | | |
Adjusted EBITDA . | | | | $ | (1,653) | | | | | $ | 1,260 | | |
| | | Nine Months Ended September 30, | | |||||||||
(in thousands) | | | 2021 | | | 2020 | | ||||||
Statement of Operations and Comprehensive Loss Data: | | | | ||||||||||
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 11,144 | | | | | $ | 14,304 | | |
Turbine service on sold product | | | | | 3,431 | | | | | | 1,617 | | |
Manufactured product | | | | | 3,712 | | | | | | 3,276 | | |
Total revenue | | | | $ | 18,287 | | | | | $ | 19,197 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | $ | 4,279 | | | | | $ | 3,714 | | |
Turbine service on sold product | | | | | 2,254 | | | | | | 1,292 | | |
Manufactured product | | | | | 5,651 | | | | | | 5,419 | | |
Depreciation of fleet turbines | | | | | 3,357 | | | | | | 4,003 | | |
Total cost of revenue | | | | $ | 15,541 | | | | | $ | 14,428 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | $ | 10,318 | | | | | $ | 8,596 | | |
Research and development | | | | | 98 | | | | | | 126 | | |
Total operating expenses | | | | $ | 10,416 | | | | | $ | 8,722 | | |
Operating loss | | | | $ | (7,670) | | | | | $ | (3,953) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | $ | (792) | | | | | $ | (876) | | |
Other (expense) income, net | | | | | 2,562 | | | | | | (10) | | |
Total other income (expense), net | | | | $ | 1,770 | | | | | $ | (886) | | |
Loss before income taxes | | | | $ | (5,900) | | | | | $ | (4,839) | | |
Income tax provision | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Other comprehensive gain (loss), net of tax | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | $ | (66) | | | | | $ | (17) | | |
Total other comprehensive gain (loss), net of tax | | | | $ | (66) | | | | | $ | (17) | | |
Comprehensive loss | | | | $ | (6,274) | | | | | $ | (4,861) | | |
EBITDA | | | | $ | 371 | | | | | $ | 1,207 | | |
Adjusted EBITDA . | | | | $ | (1,653) | | | | | $ | 1,260 | | |
| | | Year Ended December 31, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2020 | | | 2019 | | | 2021 | | | 2020 | | ||||||||||||
Net Loss | | | | $ | (7,104) | | | | | $ | (10,905) | | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Depreciation and amortization | | | | | 7,073 | | | | | | 6,194 | | | | | | 5,479 | | | | | | 5,170 | | |
Interest expense, net | | | | | 1,114 | | | | | | 992 | | | | | | 792 | | | | | | 876 | | |
Income tax provision | | | | | 31 | | | | | | 7 | | | | | | 308 | | | | | | 5 | | |
EBITDA | | | | $ | 1,114 | | | | | $ | (3,712) | | | | | $ | 371 | | | | | $ | 1,207 | | |
One-time facility relocation expenses(1) | | | | | 25 | | | | | | 185 | | | | | | 301 | | | | | | — | | |
Equity-based compensation | | | | | 70 | | | | | | 70 | | | | | | 53 | | | | | | 53 | | |
PPP loan forgiveness | | | | | 0 | | | | | | 0 | | | | | | (2,378) | | | | | | — | | |
Adjusted EBITDA | | | | $ | 1,209 | | | | | $ | (3,457) | | | | | $ | (1,653) | | | | | $ | 1,260 | | |
(in thousands) | | | Three Months Ended | | |||||||||||||||||||||||||||||||||||||||
| March 31, 2020 | | | June 30, 2020 | | | September 30, 2020 | | | December 31, 2020 | | | March 31, 2021 | | | June 30, 2021 | | | September 30, 2021 | | |||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 5,364 | | | | | $ | 4,661 | | | | | $ | 4,279 | | | | | $ | 3,534 | | | | | $ | 3,493 | | | | | $ | 3,779 | | | | | $ | 3,872 | | |
Turbine service on sold product | | | | | 589 | | | | | | 531 | | | | | | 497 | | | | | | 596 | | | | | | 1,052 | | | | | | 549 | | | | | | 1,830 | | |
Manufactured product | | | | | 1,634 | | | | | | 24 | | | | | | 1,618 | | | | | | — | | | | | | 73 | | | | | | 1,203 | | | | | | 2,436 | | |
Total revenue | | | | | 7,587 | | | | | | 5,216 | | | | | | 6,394 | | | | | | 4,130 | | | | | | 4,618 | | | | | | 5,531 | | | | | | 8,138 | | |
Cost of revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | | 1,412 | | | | | | 1,150 | | | | | | 1,152 | | | | | | 1,170 | | | | | | 1,478 | | | | | | 1,489 | | | | | | 1,312 | | |
Turbine service on sold product | | | | | 486 | | | | | | 475 | | | | | | 331 | | | | | | 399 | | | | | | 787 | | | | | | 320 | | | | | | 1,147 | | |
Manufactured product | | | | | 2,394 | | | | | | 1,064 | | | | | | 1,961 | | | | | | 370 | | | | | | 889 | | | | | | 1,641 | | | | | | 3,121 | | |
Depreciation of fleet turbines | | | | | 1,386 | | | | | | 1,380 | | | | | | 1,237 | | | | | | 1,004 | | | | | | 1,057 | | | | | | 1,110 | | | | | | 1,190 | | |
Total cost of revenue | | | | | 5,678 | | | | | | 4,069 | | | | | | 4,681 | | | | | | 2,943 | | | | | | 4,211 | | | | | | 4,560 | | | | | | 6,770 | | |
Gross profit | | | | | 1,909 | | | | | | 1,147 | | | | | | 1,713 | | | | | | 1,187 | | | | | | 407 | | | | | | 971 | | | | | | 1,368 | | |
Total operating expenses | | | | | 3,268 | | | | | | 2,764 | | | | | | 2,690 | | | | | | 3,224 | | | | | | 3,606* | | | | | | 3,648* | | | | | | 3,162 | | |
Operating loss | | | | | (1,359) | | | | | | (1,617) | | | | | | (977) | | | | | | (2,037) | | | | | | (3,199) | | | | | | (2,677) | | | | | | (1,794) | | |
Interest expense | | | | | (338) | | | | | | (327) | | | | | | (211) | | | | | | (238) | | | | | | (269) | | | | | | (270) | | | | | | (253) | | |
Other (expense) income, net | | | | | (27) | | | | | | 78 | | | | | | (61) | | | | | | 41 | | | | | | 68 | | | | | | 2,465 | | | | | | 29 | | |
Loss before income taxes | | | | | (1,724) | | | | | | (1,866) | | | | | | (1,249) | | | | | | (2,234) | | | | | | (3,400) | | | | | | (482) | | | | | | (2,018) | | |
Income tax provision | | | | | (2) | | | | | | (2) | | | | | | (1) | | | | | | (26) | | | | | | (60) | | | | | | (118) | | | | | | (130) | | |
Net loss | | | | $ | (1,726) | | | | | $ | (1,868) | | | | | $ | (1,250) | | | | | $ | (2,260) | | | | | $ | (3,460) | | | | | $ | (600) | | | | | $ | (2,148) | | |
| | | Year Ended December 31, | | | Nine Months Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2020 | | | 2019 | | | 2021 | | | 2020 | | ||||||||||||
Net cash provided by (used in) operating activities | | | | $ | (6,275) | | | | | $ | (14,848) | | | | | $ | 814 | | | | | $ | (4,548) | | |
Net cash (used in) investing activities | | | | | (1,077) | | | | | | (3,231) | | | | | | (667) | | | | | | (564) | | |
Net cash provided by (used in) financing activities | | | | | 6,889 | | | | | | 18,823 | | | | | | (265) | | | | | | 7,342 | | |
Foreign currency translation adjustments | | | | | 165 | | | | | | 81 | | | | | | (110) | | | | | | 30 | | |
Net increase (decrease) in cash | | | | $ | (298) | | | | | $ | 825 | | | | | $ | (228) | | | | | $ | 2,260 | | |
Name | | | Age | | | Position(s) | |
Executive Officers | | | | | | | |
Mark Schnepel | | | 46 | | | Chief Executive Officer | |
Wes Kimmel | | | 38 | | | Chief Financial Officer | |
Doug Baltzer | | | 52 | | | Chief Commercial Officer | |
Non-Employee Directors | | | | | | | |
Thomas Denison | | | 61 | | | Director | |
Patrick Connelly | | | 46 | | | Director | |
George Walker | | | 64 | | | Director | |
Name and Principal Position | | | Fiscal Year | | | Salary(1) ($) | | | Bonus(2) ($) | | | Equity Awards ($) | | | Non-Equity Incentive Plan Compensation ($) | | | All Other Compensation ($) | | | Total ($) | | |||||||||||||||||||||
Mark Schnepel Chief Executive Officer | | | | | 2021 | | | | | | 270,000 | | | | | | 26,583 | | | | | | — | | | | | | — | | | | | | — | | | | | | 296,583 | | |
| | | 2020 | | | | | | 253,005 | | | | | | 28,417 | | | | | | — | | | | | | — | | | | | | — | | | | | | 281,422 | | | ||
Wes Kimmel Chief Financial Officer | | | | | 2021 | | | | | | 270,000 | | | | | | 31,417 | | | | | | — | | | | | | — | | | | | | — | | | | | | 301,417 | | |
| | | 2020 | | | | | | 236,512 | | | | | | 33,583 | | | | | | — | | | | | | — | | | | | | — | | | | | | 270,095 | | | ||
Doug Baltzer Chief Commercial Officer | | | | | 2021 | | | | | | 270,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 270,000 | | |
| | | 2020 | | | | | | 246,672 | | | | | | 70,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 316,672 | | |
Name | | | Award Date | | | Plan | | | Cash Award(1) | | |||
Mark Schnepel | | | February 6, 2013 | | | 2013 Plan | | | | $ | 108,542 | | |
| | | October 27, 2016 | | | 2016 Plan | | | | $ | 958,310 | | |
Wes Kimmel | | | June 30, 2014 | | | 2013 Plan | | | | $ | 35,442 | | |
| | | October 27, 2016 | | | 2016 Plan | | | | $ | 764,558 | | |
Doug Baltzer | | | — | | | 2013 Plan | | | | $ | 0 | | |
| | | — | | | 2016 Plan | | | | $ | 0 | | |
| | | | | | | | | Beneficial Ownership After the Offering | | | | | | | | | | | Beneficial Ownership After the Offering | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Beneficial Ownership Before this Offering | | | Number of Shares Being Offered | | | Assuming No Exercise of the Underwriter’s Option | | Assuming the Underwriter’s Option is Exercised in Full | | | | Beneficial Ownership Before this Offering | | | Number of Shares Being Offered | | | Assuming No Exercise of the Underwriter’s Option | | Assuming the Underwriter’s Option is Exercised in Full | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name of beneficial owner | | Shares | | % | | Shares | | % | | Shares | | % | | | | Shares | | % | | Shares | | % | | Shares | | % | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5% Stockholder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
FlexEnergy Power Solutions, LLC (1) | | | | 9,687,878 | | | | | 100% | | | | | — | | | | | 8,923,989(2) | | | | | 74.9% | | | | | 8,923,989 | | | | | 72.9% | | | | | | | 9,687,878 | | | | | 100% | | | | | — | | | | | 8,576,767(2) | | | | | 72.0% | | | | | 8,576,767 | | | | | 71.9% | | | | ||||||||||||||||||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Mark Schnepel | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||||
Wes Kimmel | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||||
Doug Baltzer | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||||
George Walker | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | ||||||||||||||||||
Thomas Denison(3) | | | | — | | | | | — | | | | | — | | | | | 277,778 | | | | | 2.3% | | | | | 165,051 | | | | | 1.4% | | | | | | | — | | | | | — | | | | | — | | | | | 435,883 | | | | | 3.7% | | | | | 314,272 | | | | | 2.7% | | | | ||||||||||||||||||
Patrick Connelly(4) | | | | — | | | | | — | | | | | — | | | | | 486,111 | | | | | 4.1% | | | | | 288,838 | | | | | 2.5% | | | | | | | — | | | | | — | | | | | — | | | | | 675,228 | | | | | 5.7% | | | | | 486,839 | | | | | 4.2% | | | | ||||||||||||||||||
All executive officers and directors together as a group (6 persons) (1) | | | | — | | | | | — | | | | | — | | | | | 763,889 | | | | | 6.4% | | | | | 453,889 | | | | | 3.9% | | | | | | | — | | | | | — | | | | | — | | | | | 1,111,111 | | | | | 9.4% | | | | | 801,111 | | | | | 6.9% | | | |
| | | | | | | | | | | | Beneficial Ownership After the Offering | | | ||||||||||||||||||||||||||||||||
| | | Beneficial Ownership Before this Offering | | | Number of Shares Being Offered | | | Assuming No Exercise of the Underwriter’s Option | | | Assuming the Underwriter’s Option is Exercised in Full | | | ||||||||||||||||||||||||||||||||
Name of beneficial owner | | | Shares | | | % | | | Shares | | | % | | | Shares | | | % | | | ||||||||||||||||||||||||||
5% Stockholder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FlexEnergy Power Solutions, LLC(1) | | | | | 9,687,878 | | | | | | 100% | | | | | | — | | | | | | 8,576,767(2) | | | | | | 72.0% | | | | | | 8,576,767 | | | | | | 71.9% | | | | ||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mark Schnepel | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Wes Kimmel | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Doug Baltzer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
George Walker | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Thomas Denison(3) | | | | | — | | | | | | — | | | | | | — | | | | | | 435,883 | | | | | | 3.7% | | | | | | 314,272 | | | | | | 2.7% | | | | ||
Patrick Connelly(4) | | | | | — | | | | | | — | | | | | | — | | | | | | 675,228 | | | | | | 5.7% | | | | | | 486,839 | | | | | | 4.2% | | | | ||
All executive officers and directors together as a group (6 persons)(1) | | | | | — | | | | | | — | | | | | | — | | | | | | 1,111,111 | | | | | | 9.4% | | | | | | 801,111 | | | | | | 6.9% | | | |
| | | | | | | | | | | | Beneficial Ownership After the Offering | | | ||||||||||||||||||||||||||||||||
| | | Beneficial Ownership Before this Offering | | | Number of Shares Being Offered | | | Assuming No Exercise of the Underwriter’s Option | | | Assuming the Underwriter’s Option is Exercised in Full | | | ||||||||||||||||||||||||||||||||
Name of beneficial owner | | | Shares | | | % | | | Shares | | | % | | | Shares | | | % | | | ||||||||||||||||||||||||||
5% Stockholder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FlexEnergy Power Solutions, LLC(1) | | | | | 9,687,878 | | | | | | 100% | | | | | | — | | | | | | 8,576,767(2) | | | | | | 72.0% | | | | | | 8,576,767 | | | | | | 71.9% | | | | ||
Directors and Named Executive Officers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mark Schnepel | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Wes Kimmel | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Doug Baltzer | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
George Walker | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Thomas Denison(3) | | | | | — | | | | | | — | | | | | | — | | | | | | 435,883 | | | | | | 3.7% | | | | | | 314,272 | | | | | | 2.7% | | | | ||
Patrick Connelly(4) | | | | | — | | | | | | — | | | | | | — | | | | | | 675,228 | | | | | | 5.7% | | | | | | 486,839 | | | | | | 4.2% | | | | ||
All executive officers and directors together as a group (6 persons)(1) | | | | | — | | | | | | — | | | | | | — | | | | | | 1,111,111 | | | | | | 9.4% | | | | | | 801,111 | | | | | | 6.9% | | | |
| | | Per Unit(1) | | | Total | | ||||||||||||||||||
| | | Without Over- allotment | | | With Over- allotment | | | Without Over- allotment | | | With Over- allotment | | ||||||||||||
Public offering price | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
Underwriting discount | | | | $ | | | | | | $ | | | | | | $ | | | | | | $ | | | |
| Balance Sheets of FlexEnergy Green Solutions, Inc. | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | | | | |
| Combined Consolidated Financial Statements of FlexEnergy, Inc. And Flex Leasing Power & Services, LLC | | | | | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| | | | | F-9 | | | |
| | | | | F-10 | | |
| Condensed Combined Consolidated Financial Statements of FlexEnergy, Inc. And Flex Leasing Power & Services, LLC | | | | | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash | | | | $ | 0 | | | | | $ | 0 | | |
TOTAL CURRENT ASSETS | | | | | 0 | | | | | | 0 | | |
TOTAL ASSETS | | | | $ | 0 | | | | | $ | 0 | | |
LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | | | | | | | |
TOTAL LIABILITIES | | | | $ | 0 | | | | | $ | 0 | | |
STOCKHOLDER’S EQUITY | | | | | | | | | | | | | |
Retained earnings | | | | $ | 0 | | | | | $ | 0 | | |
TOTAL STOCKHOLDER’S EQUITY | | | | | 0 | | | | | | 0 | | |
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | | | | $ | 0 | | | | | $ | 0 | | |
| | | December 31, 2020 | | | December 31, 2019 | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 1,702 | | | | | $ | 2,000 | | |
Accounts receivable, net of allowance of $45 and $60, respectively | | | | | 2,416 | | | | | | 2,940 | | |
Inventories, net | | | | | 13,659 | | | | | | 13,571 | | |
Prepaid expenses and other current assets | | | | | 497 | | | | | | 475 | | |
Total current assets | | | | | 18,274 | | | | | | 18,986 | | |
Long-term assets | | | | | | | | | | | | | |
Property and equipment, net | | | | | 36,506 | | | | | | 37,105 | | |
Deferred financing costs, net of amortization | | | | | 630 | | | | | | 792 | | |
Other non-current assets | | | | | 166 | | | | | | 98 | | |
Intangible assets, net | | | | | 336 | | | | | | 504 | | |
Total long-term assets | | | | $ | 37,638 | | | | | $ | 38,499 | | |
Total assets | | | | $ | 55,912 | | | | | $ | 57,485 | | |
Liabilities and stockholder’s equity | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,328 | | | | | $ | 2,775 | | |
Accrued expenses | | | | | 2,003 | | | | | | 2,336 | | |
Deferred revenues | | | | | 1,849 | | | | | | 1,794 | | |
Current portion of notes payable | | | | | 1,300 | | | | | | — | | |
Current portion of capital lease obligations | | | | | 148 | | | | | | 174 | | |
Other current liabilities | | | | | 214 | | | | | | 403 | | |
Total current liabilities | | | | | 6,842 | | | | | | 7,482 | | |
Long-term liabilities | | | | | | | | | | | | | |
Capital leases, net of current portion | | | | | 173 | | | | | | 301 | | |
Line of credit | | | | | 26,658 | | | | | | 22,274 | | |
Notes payable, net of current portion | | | | | 1,052 | | | | | | — | | |
Other non-current liabilities | | | | | 492 | | | | | | 422 | | |
Total long-term liabilities | | | | $ | 28,375 | | | | | $ | 22,997 | | |
Total liabilities | | | | $ | 35,217 | | | | | $ | 30,479 | | |
Commitments and contingencies (see note 13) | | | | | | | | | | | | | |
Stockholder’s equity | | | | | | | | | | | | | |
Net parent investment | | | | $ | 152,273 | | | | | $ | 151,473 | | |
Accumulated other comprehensive income | | | | | 543 | | | | | | 100 | | |
Accumulated deficit | | | | | (132,121) | | | | | | (124,567) | | |
Total stockholder’s equity | | | | $ | 20,695 | | | | | $ | 27,006 | | |
Total liabilities and stockholder’s equity | | | | $ | 55,912 | | | | | $ | 57,485 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 17,838 | | | | | $ | 16,833 | | |
Turbine service on sold product | | | | | 2,213 | | | | | | 2,824 | | |
Manufactured product | | | | | 3,276 | | | | | | 5,716 | | |
Total revenue | | | | | 23,327 | | | | | | 25,373 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | | 4,884 | | | | | | 5,442 | | |
Turbine service on sold product | | | | | 1,691 | | | | | | 2,797 | | |
Manufactured product | | | | | 5,789 | | | | | | 9,531 | | |
Depreciation of fleet turbines | | | | | 5,007 | | | | | | 4,713 | | |
Total cost of revenue | | | | | 17,371 | | | | | | 22,483 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 11,826 | | | | | | 12,400 | | |
Research and development | | | | | 120 | | | | | | 237 | | |
Total operating expenses | | | | | 11,946 | | | | | | 12,637 | | |
Operating loss | | | | | (5,990) | | | | | | (9,747) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (1,114) | | | | | | (992) | | |
Other income (expense), net | | | | | 31 | | | | | | (159) | | |
Total other income (expense), net | | | | | (1,083) | | | | | | (1,151) | | |
Loss before income taxes | | | | | (7,073) | | | | | | (10,898) | | |
Income tax expense | | | | | (31) | | | | | | (7) | | |
Net loss | | | | $ | (7,104) | | | | | $ | (10,905) | | |
Other comprehensive loss | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | 443 | | | | | | 185 | | |
Total other comprehensive loss | | | | | 443 | | | | | | 185 | | |
Comprehensive loss | | | | $ | (6,661) | | | | | $ | (10,720) | | |
| | | Net Parent Investment | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Stockholder’s Equity | | ||||||||||||
Balance at January 1, 2019 | | | | $ | 143,673 | | | | | $ | (85) | | | | | $ | (103,662) | | | | | $ | 39,926 | | |
Contributions | | | | | 7,800 | | | | | | — | | | | | | — | | | | | | 7,800 | | |
Distributions | | | | | — | | | | | | — | | | | | | (10,000) | | | | | | (10,000) | | |
Foreign currency translation adjustments | | | | | — | | | | | | 185 | | | | | | — | | | | | | 185 | | |
Net loss | | | | | — | | | | | | — | | | | | | (10,905) | | | | | | (10,905) | | |
Balance at December 31, 2019 | | | | $ | 151,473 | | | | | $ | 100 | | | | | $ | (124,567) | | | | | $ | 27,006 | | |
Contributions | | | | | 800 | | | | | | — | | | | | | — | | | | | | 800 | | |
Distributions | | | | | — | | | | | | — | | | | | | (450) | | | | | | (450) | | |
Foreign currency translation adjustments | | | | | — | | | | | | 443 | | | | | | — | | | | | | 443 | | |
Net loss | | | | | — | | | | | | — | | | | | | (7,104) | | | | | | (7,104) | | |
Balance at December 31, 2020 | | | | $ | 152,273 | | | | | $ | 543 | | | | | $ | (132,121) | | | | | $ | 20,695 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | (7,104) | | | | | $ | (10,905) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization of property and equipment | | | | | 6,716 | | | | | | 5,892 | | |
Amortization of deferred financing costs | | | | | 189 | | | | | | 134 | | |
Amortization of intangible assets | | | | | 168 | | | | | | 168 | | |
Bad debt expense | | | | | 300 | | | | | | 36 | | |
Loss / (gain) on disposal of property and equipment | | | | | (58) | | | | | | 21 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 224 | | | | | | (670) | | |
Inventories | | | | | (4,804) | | | | | | (9,952) | | |
Prepaid expenses and other current assets | | | | | (53) | | | | | | (1,668) | | |
Other non-current assets | | | | | (68) | | | | | | (36) | | |
Accounts payable | | | | | (1,447) | | | | | | (359) | | |
Accrued expenses | | | | | (306) | | | | | | 113 | | |
Deferred revenues | | | | | 55 | | | | | | 2,007 | | |
Other current liabilities | | | | | (157) | | | | | | 301 | | |
Other non-current liabilities | | | | | 70 | | | | | | 70 | | |
Net Cash Used in Operating Activities | | | | $ | (6,275) | | | | | $ | (14,848) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (1,120) | | | | | | (3,269) | | |
Proceeds from disposal of property and equipment | | | | | 43 | | | | | | 38 | | |
Net Cash Used in Investing Activities | | | | $ | (1,077) | | | | | $ | (3,231) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | |
Distribution to parent | | | | $ | (450) | | | | | $ | (10,000) | | |
Contribution from parent | | | | | 800 | | | | | | 7,800 | | |
Proceeds from notes payable | | | | | 2,352 | | | | | | — | | |
Advances on line of credit | | | | | 4,330 | | | | | | 22,274 | | |
Deferred financing costs | | | | | — | | | | | | (926) | | |
Payments on capital leases | | | | | (143) | | | | | | (325) | | |
Net Cash (Used in) Provided by Financing Activities | | | | $ | 6,889 | | | | | $ | 18,823 | | |
Effects of Exchange Rate Changes on Cash | | | | $ | 165 | | | | | $ | 81 | | |
Net Increase / (Decrease) in Cash | | | | $ | (298) | | | | | $ | 825 | | |
Cash – Beginning | | | | $ | 2,000 | | | | | $ | 1,175 | | |
Cash – Ending | | | | $ | 1,702 | | | | | $ | 2,000 | | |
Supplemental Disclosure | | | | | | | | | | | | | |
Interest paid in cash | | | | $ | 997 | | | | | $ | 852 | | |
Taxes paid in cash | | | | | 12 | | | | | | 9 | | |
Non-Cash Investing Activities | | | | | | | | | | | | | |
Net transfers from inventory to property and equipment | | | | $ | 4,717 | | | | | $ | 8,231 | | |
Property and equipment acquired through capital leases | | | | | — | | | | | | 489 | | |
| Asset | | | Life | |
| Turbines and other equipment | | | 10 years | |
| Leasehold improvements | | | Shorter of lease term or 10 years | |
| Machinery and equipment | | | 3-7 years | |
| Furniture and fixtures | | | 7 years | |
| Fieldwork equipment | | | 5 years | |
| Computer equipment and software | | | 3-5 years | |
| Vehicles | | | 4-5 years | |
| | | 2020 | | | | | | 2019 | | ||||||
Manufactured product | | | | $ | 3,276 | | | | | | | | $ | 5,716 | | |
Turbine service on sold product | | | | | 2,213 | | | | | | | | | 2,824 | | |
Total non-lease revenue | | | | $ | 5,489 | | | | | | | | $ | 8,540 | | |
Turbine leasing fleet revenue | | | | | 17,838 | | | | | | | | | 16,833 | | |
Total revenue | | | | $ | 23,327 | | | | | | | | $ | 25,373 | | |
| | | 2020 | | | 2019 | | ||||||
Turbine leasing fleet | | | | $ | 1,548 | | | | | $ | 2,318 | | |
Turbine service on sold product | | | | | 318 | | | | | | 376 | | |
Manufactured product | | | | | 442 | | | | | | — | | |
Other | | | | | 153 | | | | | | 306 | | |
Total trade accounts receivable | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Contract assets | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Allowance for doubtful accounts | | | | | (45) | | | | | | (60) | | |
Total trade accounts receivable, net | | | | $ | 2,416 | | | | | $ | 2,940 | | |
| Years ended December 31, | | | | | | | |
| 2021 | | | | $ | 7,912 | | |
| 2022 | | | | | 491 | | |
| Total | | | | $ | 8,403 | | |
| | | 2020 | | | | | | 2019 | | ||||||
Raw materials | | | | $ | 9,367 | | | | | | | | $ | 9,804 | | |
Work in process | | | | | 935 | | | | | | | | | 1,315 | | |
Finished goods | | | | | 3,357 | | | | | | | | | 2,452 | | |
Total inventories, net | | | | $ | 13,659 | | | | | | | | $ | 13,571 | | |
| | | 2020 | | | 2019 | | ||||||
Turbines and other equipment | | | | $ | 61,973 | | | | | $ | 57,416 | | |
Machinery and equipment | | | | | 5,146 | | | | | | 5,432 | | |
Leasehold improvements | | | | | 782 | | | | | | 2,447 | | |
Fieldwork equipment | | | | | 4,032 | | | | | | 4,339 | | |
Computer equipment and software | | | | | 1,074 | | | | | | 855 | | |
Vehicles | | | | | 274 | | | | | | 308 | | |
Furniture and fixtures | | | | | 540 | | | | | | 603 | | |
Property, plant and equipment, gross | | | | $ | 73,821 | | | | | $ | 71,400 | | |
Accumulated depreciation | | | | | (38,432) | | | | | | (34,295) | | |
Construction in progress | | | | | 1,117 | | | | | | — | | |
Property, plant and equipment, net | | | | $ | 36,506 | | | | | $ | 37,105 | | |
| | | 2020 | | | 2019 | | ||||||
Patents | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Accumulated amortization | | | | | (1,344) | | | | | | (1,176) | | |
Intangible assets, net | | | | $ | 336 | | | | | $ | 504 | | |
| Year ending December 31, | | | | | | | |
| 2021 | | | | $ | 168 | | |
| 2022 | | | | | 168 | | |
| Total | | | | $ | 336 | | |
Year ended December 31, | | | Capital Leases | | | | | | Operating Leases | | ||||||
2021 | | | | $ | 153 | | | | | | | | $ | 1,363 | | |
2022 | | | | | 136 | | | | | | | | | 1,063 | | |
2023 | | | | | 58 | | | | | | | | | 866 | | |
2024 | | | | | — | | | | | | | | | 398 | | |
Total future minimum lease obligation | | | | $ | 347 | | | | | | | | $ | 3,690 | | |
Less interest on capital leases | | | | | (26) | | | | | | | | | | | |
Net present value of capital lease obligations | | | | $ | 321 | | | | | | | | | | | |
Less current portion | | | | | (148) | | | | | | | | | | | |
Capital lease obligations, long term | | | | $ | 173 | | | | | | | | | | | |
| | | 2020 | | | 2019 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 31 | | | | | | 7 | | |
Foreign | | | | | — | | | | | | — | | |
Total current | | | | $ | 31 | | | | | $ | 7 | | |
Deferred | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Foreign | | | | | — | | | | | | — | | |
Total deferred | | | | | | | | | | | | | |
Total income tax expense | | | | $ | 31 | | | | | $ | 7 | | |
| | | 2020 | | | 2019 | | ||||||||||||||||||
Income tax at statutory rate | | | | $ | (1,485) | | | | | | 21.0% | | | | | $ | (2,289) | | | | | | 21.0% | | |
State income taxes net of federal benefit | | | | | (435) | | | | | | 6.1% | | | | | | (729) | | | | | | 6.7% | | |
Income taxed at partnership level | | | | | 207 | | | | | | (2.9)% | | | | | | 297 | | | | | | (2.7)% | | |
Foreign rate differential | | | | | (57) | | | | | | 0.8% | | | | | | 13 | | | | | | (0.1)% | | |
Permanent differences | | | | | 29 | | | | | | (0.4)% | | | | | | 33 | | | | | | (0.3)% | | |
State rate change | | | | | 692 | | | | | | (9.8)% | | | | | | 228 | | | | | | (2.1)% | | |
Valuation allowance | | | | | 962 | | | | | | (13.6)% | | | | | | 2,132 | | | | | | (19.6)% | | |
Other | | | | | 118 | | | | | | (1.6)% | | | | | | 322 | | | | | | (2.9)% | | |
Provision for income taxes | | | | $ | 31 | | | | | | (0.4)% | | | | | $ | 7 | | | | | | 0.0% | | |
| Asset | | | Life | |
| Turbines and other equipment | | | 10 years | |
| Leasehold improvements | | | Shorter of lease term or 10 years | |
| Machinery and equipment | | | 3-7 years | |
| Furniture and fixtures | | | 7 years | |
| Fieldwork equipment | | | 5 years | |
| Computer equipment and software | | | 3-5 years | |
| Vehicles | | | 4-5 years | |
| | | 2020 | | | 2019 | | ||||||
Net operating loss carryforwards | | | | $ | 17,095 | | | | | $ | 16,201 | | |
Interest limitation carryforward | | | | | 8 | | | | | | 4 | | |
Reserves and accrued expenses | | | | | 641 | | | | | | 633 | | |
Intangibles | | | | | 102 | | | | | | 89 | | |
Inventory | | | | | 627 | | | | | | 635 | | |
Gross deferred tax assets | | | | $ | 18,473 | | | | | $ | 17,562 | | |
Valuation allowance | | | | | (17,857) | | | | | | (16,896) | | |
Net deferred tax assets | | | | $ | 616 | | | | | $ | 666 | | |
Fixed assets | | | | $ | (616) | | | | | $ | (666) | | |
Gross deferred tax liabilities | | | | $ | (616) | | | | | $ | (666) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| Unrecognized tax benefits January 1, 2020 | | | | $ | 3 | | |
| Gross decrease for tax positions of prior year | | | | | — | | |
| Gross increase for tax positions of current year | | | | | — | | |
| Unrecognized tax benefits December 31, 2020 | | | | $ | 3 | | |
| | | 2020 | | | 2019 | | ||||||
Line of credit | | | | $ | 26,658 | | | | | $ | 22,274 | | |
Note payable | | | | | 2,352 | | | | | | — | | |
Total debt | | | | $ | 29,010 | | | | | $ | 22,274 | | |
Less current debt | | | | | (1,300) | | | | | | — | | |
Total long-term debt | | | | $ | 27,710 | | | | | $ | 22,274 | | |
| For the year ending December 31, | | | | | | | |
| 2021 | | | | $ | 1,300 | | |
| 2022 | | | | | 1,052 | | |
| 2023 | | | | | — | | |
| 2024 | | | | | 26,658 | | |
| Total future principal payments | | | | $ | 29,010 | | |
| | | 2020 | | | | | | 2019 | | ||||||
Manufactured product | | | | $ | 3,276 | | | | | | | | $ | 5,716 | | |
Turbine service on sold product | | | | | 2,213 | | | | | | | | | 2,824 | | |
Total non-lease revenue | | | | $ | 5,489 | | | | | | | | $ | 8,540 | | |
Turbine leasing fleet revenue | | | | | 17,838 | | | | | | | | | 16,833 | | |
Total revenue | | | | $ | 23,327 | | | | | | | | $ | 25,373 | | |
| | | 2020 | | | 2019 | | ||||||
Turbine leasing fleet | | | | $ | 1,548 | | | | | $ | 2,318 | | |
Turbine service on sold product | | | | | 318 | | | | | | 376 | | |
Manufactured product | | | | | 442 | | | | | | — | | |
Other | | | | | 153 | | | | | | 306 | | |
Total trade accounts receivable | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Contract assets | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Allowance for doubtful accounts | | | | | (45) | | | | | | (60) | | |
Total trade accounts receivable, net | | | | $ | 2,416 | | | | | $ | 2,940 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 1,474 | | | | | $ | 1,702 | | |
Accounts receivable, net of allowance of $11 and $45, respectively | | | | | 2,041 | | | | | | 2,416 | | |
Deferred IPO deal costs | | | | | 3,657 | | | | | | — | | |
Inventories, net | | | | | 9,819 | | | | | | 13,659 | | |
Prepaid expenses and other current assets | | | | | 562 | | | | | | 497 | | |
Total current assets | | | | | 17,553 | | | | | | 18,274 | | |
Long-term assets | | | | | | | | | | | | | |
Property and equipment, net | | | | | 32,523 | | | | | | 36,506 | | |
Deferred financing costs, net of amortization | | | | | 623 | | | | | | 630 | | |
Other non-current assets | | | | | 61 | | | | | | 166 | | |
Intangible assets, net | | | | | 210 | | | | | | 336 | | |
Total long-term assets | | | | $ | 33,417 | | | | | $ | 37,638 | | |
Total assets | | | | $ | 50,970 | | | | | $ | 55,912 | | |
Liabilities and stockholder’s equity | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,544 | | | | | $ | 1,328 | | |
Accrued expenses | | | | | 2,798 | | | | | | 2,003 | | |
Deferred revenues | | | | | 931 | | | | | | 1,849 | | |
Current portion of notes payable | | | | | — | | | | | | 1,300 | | |
Current portion of capital lease obligations | | | | | 132 | | | | | | 148 | | |
Other current liabilities | | | | | 213 | | | | | | 214 | | |
Total current liabilities | | | | | 5,618 | | | | | | 6,842 | | |
Long-term liabilities | | | | | | | | | | | | | |
Capital leases, net of current portion | | | | | 92 | | | | | | 173 | | |
Line of credit | | | | | 22,917 | | | | | | 26,658 | | |
Notes payable, net of current portion | | | | | — | | | | | | 1,052 | | |
Other non-current liabilities | | | | | 545 | | | | | | 492 | | |
Total long-term liabilities | | | | $ | 23,554 | | | | | $ | 28,375 | | |
Total liabilities | | | | $ | 29,172 | | | | | $ | 35,217 | | |
Commitments and contingencies (see note 13) | | | | | | | | | | | | | |
Stockholder’s equity | | | | | | | | | | | | | |
Net parent investment | | | | $ | 159,677 | | | | | $ | 152,273 | | |
Accumulated other comprehensive income | | | | | 477 | | | | | | 543 | | |
Accumulated deficit | | | | | (138,356) | | | | | | (132,121) | | |
Total stockholder’s equity | | | | $ | 21,798 | | | | | $ | 20,695 | | |
Total liabilities and stockholder’s equity | | | | $ | 50,970 | | | | | $ | 55,912 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 11,144 | | | | | $ | 14,304 | | |
Turbine service on sold product | | | | | 3,431 | | | | | | 1,617 | | |
Manufactured product | | | | | 3,712 | | | | | | 3,276 | | |
Total revenue | | | | | 18,287 | | | | | | 19,197 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | | 4,279 | | | | | | 3,714 | | |
Turbine service on sold product | | | | | 2,254 | | | | | | 1,292 | | |
Manufactured product | | | | | 5,651 | | | | | | 5,419 | | |
Depreciation of fleet turbines | | | | | 3,357 | | | | | | 4,003 | | |
Total cost of revenue | | | | | 15,541 | | | | | | 14,428 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 10,318 | | | | | | 8,596 | | |
Research and development | | | | | 98 | | | | | | 126 | | |
Total operating expenses: | | | | | 10,416 | | | | | | 8,722 | | |
Operating loss | | | | | (7,670) | | | | | | (3,953) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (792) | | | | | | (876) | | |
Other income (expense), net | | | | | 2,562 | | | | | | (10) | | |
Total other income (expense), net | | | | | 1,770 | | | | | | (886) | | |
Loss before income taxes | | | | | (5,900) | | | | | | (4,839) | | |
Income tax expense | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Other comprehensive gain (loss) | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (66) | | | | | | (17) | | |
Total other comprehensive gain (loss) | | | | | (66) | | | | | | (17) | | |
Comprehensive loss | | | | $ | (6,274) | | | | | $ | (4,861) | | |
| | | Net Parent Investment | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Stockholder’s Equity | | ||||||||||||
Balance at January 1, 2020 | | | | $ | 151,473 | | | | | $ | 100 | | | | | $ | (124,567) | | | | | $ | 27,006 | | |
Contributions | | | | | 800 | | | | | | — | | | | | | — | | | | | | 800 | | |
Distributions | | | | | — | | | | | | — | | | | | | (23) | | | | | | (23) | | |
Foreign currency translation adjustments | | | | | — | | | | | | (17) | | | | | | — | | | | | | (17) | | |
Net loss | | | | | — | | | | | | — | | | | | | (4,844) | | | | | | (4,844) | | |
Balance at September 30, 2020 | | | | $ | 152,273 | | | | | $ | 83 | | | | | $ | (129,434) | | | | | $ | 22,922 | | |
| | | Net Parent Investment | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Stockholder’s Equity | | ||||||||||||
Balance at January 1, 2021 | | | | $ | 152,273 | | | | | $ | 543 | | | | | $ | (132,121) | | | | | $ | 20,695 | | |
Contributions | | | | | 7,404 | | | | | | — | | | | | | — | | | | | | 7,404 | | |
Distributions | | | | | — | | | | | | — | | | | | | (27) | | | | | | (27) | | |
Foreign currency translation adjustments | | | | | — | | | | | | (66) | | | | | | — | | | | | | (66) | | |
Net loss | | | | | — | | | | | | — | | | | | | (6,208) | | | | | | (6,208) | | |
Balance at September 30, 2021 | | | | $ | 159,677 | | | | | $ | 477 | | | | | $ | (138,356) | | | | | $ | 21,798 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization of property and equipment | | | | | 5,191 | | | | | | 4,902 | | |
Amortization of deferred financing costs | | | | | 162 | | | | | | 142 | | |
Amortization of intangible assets | | | | | 126 | | | | | | 126 | | |
Bad debt expense | | | | | — | | | | | | 17 | | |
Forgiveness of debt – PPP loan | | | | | (2,378) | | | | | | — | | |
Gain on disposal of property and equipment | | | | | (24) | | | | | | (94) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 375 | | | | | | 513 | | |
Inventories, net | | | | | 3,365 | | | | | | (3,736) | | |
Prepaid expenses and other current assets | | | | | (65) | | | | | | (207) | | |
Other non-current assets | | | | | 104 | | | | | | 36 | | |
Accounts payable | | | | | 210 | | | | | | (715) | | |
Accrued expenses | | | | | 821 | | | | | | 118 | | |
Deferred revenues | | | | | (918) | | | | | | (558) | | |
Other current liabilities | | | | | — | | | | | | (301) | | |
Other non-current liabilities | | | | | 53 | | | | | | 53 | | |
Net Cash Provided by (Used in) Operating Activities | | | | $ | 814 | | | | | $ | (4,548) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (691) | | | | | | (757) | | |
Proceeds from disposal of property and equipment | | | | | 24 | | | | | | 193 | | |
Net Cash Used in Investing Activities | | | | $ | (667) | | | | | $ | (564) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | |
Distribution to parent | | | | $ | (27) | | | | | $ | (23) | | |
Contribution from parent | | | | | 4,453 | | | | | | 800 | | |
Deferred IPO deal costs | | | | | (699) | | | | | | — | | |
Proceeds from notes payable | | | | | — | | | | | | 2,352 | | |
Payments on line of credit | | | | | (12,353) | | | | | | — | | |
Advances from line of credit | | | | | 8,484 | | | | | | 4,330 | | |
Deferred financing costs | | | | | (27) | | | | | | — | | |
Payments on capital leases | | | | | (96) | | | | | | (117) | | |
Net Cash (Used in) Provided by Financing Activities | | | | $ | (265) | | | | | $ | 7,342 | | |
Effects of Exchange Rate Changes on Cash | | | | $ | (110) | | | | | $ | 30 | | |
Net Increase / (Decrease) in Cash | | | | $ | (228) | | | | | $ | 2,260 | | |
Cash – Beginning | | | | $ | 1,702 | | | | | $ | 2,000 | | |
Cash – Ending | | | | $ | 1,474 | | | | | | 4,260 | | |
Supplemental Disclosure | | | | | | | | | | | | | |
Interest paid in cash | | | | $ | 624 | | | | | $ | 792 | | |
Taxes paid in cash | | | | | 84 | | | | | | 11 | | |
Non-Cash Investing and Financing Activities | | | | | | | | | | | | | |
Net transfers from inventory to property and equipment | | | | $ | 569 | | | | | $ | 3,896 | | |
Accrued but not paid deferred financing costs | | | | | 129 | | | | | | 27 | | |
Deferred IPO deal costs unpaid | | | | | 2,958 | | | | | | — | | |
Forgiveness of debt – PPP loan | | | | | 2,378 | | | | | | | | |
| Asset | | | Life | |
| Turbines and other equipment | | | 10 years | |
| Leasehold improvements | | | Shorter of lease term or 10 years | |
| Machinery and equipment | | | | |
| Furniture and fixtures | | | | |
| Fieldwork equipment | | | 5 years | |
| Computer equipment and software | | | | |
| Vehicles | | | |
| | 2021 | | 2020 | | | 2020 | | | | 2019 | | |||||||||||||||||
Manufactured product | | | $ | 3,712 | | | | $ | 3,276 | | | | | $ | 3,276 | | | | | | $ | 5,716 | | | |||||
Turbine service on sold product | | | | 3,431 | | | | | 1,617 | | | | | | 2,213 | | | | | | | 2,824 | | | |||||
Total non-lease revenue | | | $ | 7,143 | | | | $ | 4,893 | | | | | $ | 5,489 | | | | | | $ | 8,540 | | | |||||
Turbine leasing fleet revenue | | | | 11,144 | | | | | 14,304 | | | | | | 17,838 | | | | | | | 16,833 | | | |||||
Total revenue | | | $ | 18,287 | | | | $ | 19,197 | | | | | $ | 23,327 | | | | | | $ | 25,373 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Turbine leasing fleet | | | | $ | 1,359 | | | | | $ | 1,548 | | |
Turbine service on sold product | | | | | 441 | | | | | | 318 | | |
Manufactured product | | | | | 146 | | | | | | 442 | | |
Other | | | | | 106 | | | | | | 153 | | |
Total trade accounts receivable | | | | $ | 2,052 | | | | | $ | 2,461 | | |
Contract assets | | | | $ | 2,052 | | | | | $ | 2,461 | | |
Allowance for doubtful accounts | | | | | (11) | | | | | | (45) | | |
Total trade accounts receivable, net | | | | $ | 2,041 | | | | | $ | 2,416 | | |
| | | 2020 | | | 2019 | | ||||||
Turbine leasing fleet | | | | $ | 1,548 | | | | | $ | 2,318 | | |
Turbine service on sold product | | | | | 318 | | | | | | 376 | | |
Manufactured product | | | | | 442 | | | | | | — | | |
Other | | | | | 153 | | | | | | 306 | | |
Total trade accounts receivable | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Contract assets | | | | $ | 2,461 | | | | | $ | 3,000 | | |
Allowance for doubtful accounts | | | | | (45) | | | | | | (60) | | |
Total trade accounts receivable, net | | | | $ | 2,416 | | | | | $ | 2,940 | | |
| Years ended December 31, | | | | | | | |
| 2021 | | | | $ | 7,912 | | |
| 2022 | | | | | 491 | | |
| Total | | | | $ | 8,403 | | |
| | | 2020 | | | | | | 2019 | | ||||||
Raw materials | | | | $ | 9,367 | | | | | | | | $ | 9,804 | | |
Work in process | | | | | 935 | | | | | | | | | 1,315 | | |
Finished goods | | | | | 3,357 | | | | | | | | | 2,452 | | |
Total inventories, net | | | | $ | 13,659 | | | | | | | | $ | 13,571 | | |
| | | 2020 | | | 2019 | | ||||||
Turbines and other equipment | | | | $ | 61,973 | | | | | $ | 57,416 | | |
Machinery and equipment | | | | | 5,146 | | | | | | 5,432 | | |
Leasehold improvements | | | | | 782 | | | | | | 2,447 | | |
Fieldwork equipment | | | | | 4,032 | | | | | | 4,339 | | |
Computer equipment and software | | | | | 1,074 | | | | | | 855 | | |
Vehicles | | | | | 274 | | | | | | 308 | | |
Furniture and fixtures | | | | | 540 | | | | | | 603 | | |
Property, plant and equipment, gross | | | | $ | 73,821 | | | | | $ | 71,400 | | |
Accumulated depreciation | | | | | (38,432) | | | | | | (34,295) | | |
Construction in progress | | | | | 1,117 | | | | | | — | | |
Property, plant and equipment, net | | | | $ | 36,506 | | | | | $ | 37,105 | | |
| | | 2020 | | | 2019 | | ||||||
Patents | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Accumulated amortization | | | | | (1,344) | | | | | | (1,176) | | |
Intangible assets, net | | | | $ | 336 | | | | | $ | 504 | | |
| Year ending December 31, | | | | | | | |
| 2021 | | | | $ | 168 | | |
| 2022 | | | | | 168 | | |
| Total | | | | $ | 336 | | |
Year ended December 31, | | | Capital Leases | | | | | | Operating Leases | | ||||||
2021 | | | | $ | 153 | | | | | | | | $ | 1,363 | | |
2022 | | | | | 136 | | | | | | | | | 1,063 | | |
2023 | | | | | 58 | | | | | | | | | 866 | | |
2024 | | | | | — | | | | | | | | | 398 | | |
Total future minimum lease obligation | | | | $ | 347 | | | | | | | | $ | 3,690 | | |
Less interest on capital leases | | | | | (26) | | | | | | | | | | | |
Net present value of capital lease obligations | | | | $ | 321 | | | | | | | | | | | |
Less current portion | | | | | (148) | | | | | | | | | | | |
Capital lease obligations, long term | | | | $ | 173 | | | | | | | | | | | |
| | | 2020 | | | 2019 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 31 | | | | | | 7 | | |
Foreign | | | | | — | | | | | | — | | |
Total current | | | | $ | 31 | | | | | $ | 7 | | |
Deferred | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Foreign | | | | | — | | | | | | — | | |
Total deferred | | | | | | | | | | | | | |
Total income tax expense | | | | $ | 31 | | | | | $ | 7 | | |
| | | 2020 | | | 2019 | | ||||||||||||||||||
Income tax at statutory rate | | | | $ | (1,485) | | | | | | 21.0% | | | | | $ | (2,289) | | | | | | 21.0% | | |
State income taxes net of federal benefit | | | | | (435) | | | | | | 6.1% | | | | | | (729) | | | | | | 6.7% | | |
Income taxed at partnership level | | | | | 207 | | | | | | (2.9)% | | | | | | 297 | | | | | | (2.7)% | | |
Foreign rate differential | | | | | (57) | | | | | | 0.8% | | | | | | 13 | | | | | | (0.1)% | | |
Permanent differences | | | | | 29 | | | | | | (0.4)% | | | | | | 33 | | | | | | (0.3)% | | |
State rate change | | | | | 692 | | | | | | (9.8)% | | | | | | 228 | | | | | | (2.1)% | | |
Valuation allowance | | | | | 962 | | | | | | (13.6)% | | | | | | 2,132 | | | | | | (19.6)% | | |
Other | | | | | 118 | | | | | | (1.6)% | | | | | | 322 | | | | | | (2.9)% | | |
Provision for income taxes | | | | $ | 31 | | | | | | (0.4)% | | | | | $ | 7 | | | | | | 0.0% | | |
| | | 2020 | | | 2019 | | ||||||
Net operating loss carryforwards | | | | $ | 17,095 | | | | | $ | 16,201 | | |
Interest limitation carryforward | | | | | 8 | | | | | | 4 | | |
Reserves and accrued expenses | | | | | 641 | | | | | | 633 | | |
Intangibles | | | | | 102 | | | | | | 89 | | |
Inventory | | | | | 627 | | | | | | 635 | | |
Gross deferred tax assets | | | | $ | 18,473 | | | | | $ | 17,562 | | |
Valuation allowance | | | | | (17,857) | | | | | | (16,896) | | |
Net deferred tax assets | | | | $ | 616 | | | | | $ | 666 | | |
Fixed assets | | | | $ | (616) | | | | | $ | (666) | | |
Gross deferred tax liabilities | | | | $ | (616) | | | | | $ | (666) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| Unrecognized tax benefits January 1, 2020 | | | | $ | 3 | | |
| Gross decrease for tax positions of prior year | | | | | — | | |
| Gross increase for tax positions of current year | | | | | — | | |
| Unrecognized tax benefits December 31, 2020 | | | | $ | 3 | | |
| | | 2020 | | | 2019 | | ||||||
Line of credit | | | | $ | 26,658 | | | | | $ | 22,274 | | |
Note payable | | | | | 2,352 | | | | | | — | | |
Total debt | | | | $ | 29,010 | | | | | $ | 22,274 | | |
Less current debt | | | | | (1,300) | | | | | | — | | |
Total long-term debt | | | | $ | 27,710 | | | | | $ | 22,274 | | |
| For the year ending December 31, | | | | | | | |
| 2021 | | | | $ | 1,300 | | |
| 2022 | | | | | 1,052 | | |
| 2023 | | | | | — | | |
| 2024 | | | | | 26,658 | | |
| Total future principal payments | | | | $ | 29,010 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 1,474 | | | | | $ | 1,702 | | |
Accounts receivable, net of allowance of $11 and $45, respectively | | | | | 2,041 | | | | | | 2,416 | | |
Deferred IPO deal costs | | | | | 3,657 | | | | | | — | | |
Inventories, net | | | | | 9,819 | | | | | | 13,659 | | |
Prepaid expenses and other current assets | | | | | 562 | | | | | | 497 | | |
Total current assets | | | | | 17,553 | | | | | | 18,274 | | |
Long-term assets | | | | | | | | | | | | | |
Property and equipment, net | | | | | 32,523 | | | | | | 36,506 | | |
Deferred financing costs, net of amortization | | | | | 623 | | | | | | 630 | | |
Other non-current assets | | | | | 61 | | | | | | 166 | | |
Intangible assets, net | | | | | 210 | | | | | | 336 | | |
Total long-term assets | | | | $ | 33,417 | | | | | $ | 37,638 | | |
Total assets | | | | $ | 50,970 | | | | | $ | 55,912 | | |
Liabilities and stockholder’s equity | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,544 | | | | | $ | 1,328 | | |
Accrued expenses | | | | | 2,798 | | | | | | 2,003 | | |
Deferred revenues | | | | | 931 | | | | | | 1,849 | | |
Current portion of notes payable | | | | | — | | | | | | 1,300 | | |
Current portion of capital lease obligations | | | | | 132 | | | | | | 148 | | |
Other current liabilities | | | | | 213 | | | | | | 214 | | |
Total current liabilities | | | | | 5,618 | | | | | | 6,842 | | |
Long-term liabilities | | | | | | | | | | | | | |
Capital leases, net of current portion | | | | | 92 | | | | | | 173 | | |
Line of credit | | | | | 22,917 | | | | | | 26,658 | | |
Notes payable, net of current portion | | | | | — | | | | | | 1,052 | | |
Other non-current liabilities | | | | | 545 | | | | | | 492 | | |
Total long-term liabilities | | | | $ | 23,554 | | | | | $ | 28,375 | | |
Total liabilities | | | | $ | 29,172 | | | | | $ | 35,217 | | |
Commitments and contingencies (see note 13) | | | | | | | | | | | | | |
Stockholder’s equity | | | | | | | | | | | | | |
Net parent investment | | | | $ | 159,677 | | | | | $ | 152,273 | | |
Accumulated other comprehensive income | | | | | 477 | | | | | | 543 | | |
Accumulated deficit | | | | | (138,356) | | | | | | (132,121) | | |
Total stockholder’s equity | | | | $ | 21,798 | | | | | $ | 20,695 | | |
Total liabilities and stockholder’s equity | | | | $ | 50,970 | | | | | $ | 55,912 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | | | | | | | | | | |
Turbine leasing fleet | | | | $ | 11,144 | | | | | $ | 14,304 | | |
Turbine service on sold product | | | | | 3,431 | | | | | ��� | 1,617 | | |
Manufactured product | | | | | 3,712 | | | | | | 3,276 | | |
Total revenue | | | | | 18,287 | | | | | | 19,197 | | |
Cost of revenue | | | | | | | | | | | | | |
Turbine leasing fleet (excluding depreciation of fleet turbines) | | | | | 4,279 | | | | | | 3,714 | | |
Turbine service on sold product | | | | | 2,254 | | | | | | 1,292 | | |
Manufactured product | | | | | 5,651 | | | | | | 5,419 | | |
Depreciation of fleet turbines | | | | | 3,357 | | | | | | 4,003 | | |
Total cost of revenue | | | | | 15,541 | | | | | | 14,428 | | |
Operating expenses | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 10,318 | | | | | | 8,596 | | |
Research and development | | | | | 98 | | | | | | 126 | | |
Total operating expenses: | | | | | 10,416 | | | | | | 8,722 | | |
Operating loss | | | | | (7,670) | | | | | | (3,953) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (792) | | | | | | (876) | | |
Other income (expense), net | | | | | 2,562 | | | | | | (10) | | |
Total other income (expense), net | | | | | 1,770 | | | | | | (886) | | |
Loss before income taxes | | | | | (5,900) | | | | | | (4,839) | | |
Income tax expense | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Other comprehensive gain (loss) | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (66) | | | | | | (17) | | |
Total other comprehensive gain (loss) | | | | | (66) | | | | | | (17) | | |
Comprehensive loss | | | | $ | (6,274) | | | | | $ | (4,861) | | |
| | | Net Parent Investment | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Stockholder’s Equity | | ||||||||||||
Balance at January 1, 2020 | | | | $ | 151,473 | | | | | $ | 100 | | | | | $ | (124,567) | | | | | $ | 27,006 | | |
Contributions | | | | | 800 | | | | | | — | | | | | | — | | | | | | 800 | | |
Distributions | | | | | — | | | | | | — | | | | | | (23) | | | | | | (23) | | |
Foreign currency translation adjustments | | | | | — | | | | | | (17) | | | | | | — | | | | | | (17) | | |
Net loss | | | | | — | | | | | | — | | | | | | (4,844) | | | | | | (4,844) | | |
Balance at September 30, 2020 | | | | $ | 152,273 | | | | | $ | 83 | | | | | $ | (129,434) | | | | | $ | 22,922 | | |
| | | Net Parent Investment | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Stockholder’s Equity | | ||||||||||||
Balance at January 1, 2021 | | | | $ | 152,273 | | | | | $ | 543 | | | | | $ | (132,121) | | | | | $ | 20,695 | | |
Contributions | | | | | 7,404 | | | | | | — | | | | | | — | | | | | | 7,404 | | |
Distributions | | | | | — | | | | | | — | | | | | | (27) | | | | | | (27) | | |
Foreign currency translation adjustments | | | | | — | | | | | | (66) | | | | | | — | | | | | | (66) | | |
Net loss | | | | | — | | | | | | — | | | | | | (6,208) | | | | | | (6,208) | | |
Balance at September 30, 2021 | | | | $ | 159,677 | | | | | $ | 477 | | | | | $ | (138,356) | | | | | $ | 21,798 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and amortization of property and equipment | | | | | 5,191 | | | | | | 4,902 | | |
Amortization of deferred financing costs | | | | | 162 | | | | | | 142 | | |
Amortization of intangible assets | | | | | 126 | | | | | | 126 | | |
Bad debt expense | | | | | — | | | | | | 17 | | |
Forgiveness of debt – PPP loan | | | | | (2,378) | | | | | | — | | |
Gain on disposal of property and equipment | | | | | (24) | | | | | | (94) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 375 | | | | | | 513 | | |
Inventories, net | | | | | 3,365 | | | | | | (3,736) | | |
Prepaid expenses and other current assets | | | | | (65) | | | | | | (207) | | |
Other non-current assets | | | | | 104 | | | | | | 36 | | |
Accounts payable | | | | | 210 | | | | | | (715) | | |
Accrued expenses | | | | | 821 | | | | | | 118 | | |
Deferred revenues | | | | | (918) | | | | | | (558) | | |
Other current liabilities | | | | | — | | | | | | (301) | | |
Other non-current liabilities | | | | | 53 | | | | | | 53 | | |
Net Cash Provided by (Used in) Operating Activities | | | | $ | 814 | | | | | $ | (4,548) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (691) | | | | | | (757) | | |
Proceeds from disposal of property and equipment | | | | | 24 | | | | | | 193 | | |
Net Cash Used in Investing Activities | | | | $ | (667) | | | | | $ | (564) | | |
Cash Flows from Financing Activities | | | | | | | | | | | | | |
Distribution to parent | | | | $ | (27) | | | | | $ | (23) | | |
Contribution from parent | | | | | 4,453 | | | | | | 800 | | |
Deferred IPO deal costs | | | | | (699) | | | | | | — | | |
Proceeds from notes payable | | | | | — | | | | | | 2,352 | | |
Payments on line of credit | | | | | (12,353) | | | | | | — | | |
Advances from line of credit | | | | | 8,484 | | | | | | 4,330 | | |
Deferred financing costs | | | | | (27) | | | | | | — | | |
Payments on capital leases | | | | | (96) | | | | | | (117) | | |
Net Cash (Used in) Provided by Financing Activities | | | | $ | (265) | | | | | $ | 7,342 | | |
Effects of Exchange Rate Changes on Cash | | | | $ | (110) | | | | | $ | 30 | | |
Net Increase / (Decrease) in Cash | | | | $ | (228) | | | | | $ | 2,260 | | |
Cash – Beginning | | | | $ | 1,702 | | | | | $ | 2,000 | | |
Cash – Ending | | | | $ | 1,474 | | | | | | 4,260 | | |
Supplemental Disclosure | | | | | | | | | | | | | |
Interest paid in cash | | | | $ | 624 | | | | | $ | 792 | | |
Taxes paid in cash | | | | | 84 | | | | | | 11 | | |
Non-Cash Investing and Financing Activities | | | | | | | | | | | | | |
Net transfers from inventory to property and equipment | | | | $ | 569 | | | | | $ | 3,896 | | |
Accrued but not paid deferred financing costs | | | | | 129 | | | | | | 27 | | |
Deferred IPO deal costs unpaid | | | | | 2,958 | | | | | | — | | |
Forgiveness of debt – PPP loan | | | | | 2,378 | | | | | | | | |
| Asset | | | Life | |
| Turbines and other equipment | | | 10 years | |
| Leasehold improvements | | | Shorter of lease term or 10 years | |
| Machinery and equipment | | | 3 – 7 years | |
| Furniture and fixtures | | | 5 – 7 years | |
| Fieldwork equipment | | | 5 years | |
| Computer equipment and software | | | 3 – 5 years | |
| Vehicles | | | 4 – 5 years | |
| | | 2021 | | | 2020 | | ||||||
Manufactured product | | | | $ | 3,712 | | | | | $ | 3,276 | | |
Turbine service on sold product | | | | | 3,431 | | | | | | 1,617 | | |
Total non-lease revenue | | | | $ | 7,143 | | | | | $ | 4,893 | | |
Turbine leasing fleet revenue | | | | | 11,144 | | | | | | 14,304 | | |
Total revenue | | | | $ | 18,287 | | | | | $ | 19,197 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Turbine leasing fleet | | | | $ | 1,359 | | | | | $ | 1,548 | | |
Turbine service on sold product | | | | | 441 | | | | | | 318 | | |
Manufactured product | | | | | 146 | | | | | | 442 | | |
Other | | | | | 106 | | | | | | 153 | | |
Total trade accounts receivable | | | | $ | 2,052 | | | | | $ | 2,461 | | |
Contract assets | | | | $ | 2,052 | | | | | $ | 2,461 | | |
Allowance for doubtful accounts | | | | | (11) | | | | | | (45) | | |
Total trade accounts receivable, net | | | | $ | 2,041 | | | | | $ | 2,416 | | |
| Three months ended December 31, 2021 | | | | $ | 2,579 | | |
| 2022 | | | | | 1,674 | | |
| 2023 | | | | | 168 | | |
| Total | | | | $ | 4,421 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Raw materials | | | | $ | 6,905 | | | | | $ | 9,367 | | |
Work in process | | | | | 501 | | | | | | 935 | | |
Finished goods | | | | | 2,413 | | | | | | 3,357 | | |
Total inventories, net | | | | $ | 9,819 | | | | | $ | 13,659 | | |
| | | 2021 | | | 2021 | | ||||||
Turbines and other equipment | | | | $ | 64,122 | | | | | $ | 61,973 | | |
Machinery and equipment | | | | | 5,115 | | | | | | 5,146 | | |
Leasehold improvements | | | | | 897 | | | | | | 782 | | |
Fieldwork equipment | | | | | 4,350 | | | | | | 4,032 | | |
Computer equipment and software | | | | | 641 | | | | | | 1,074 | | |
Vehicles | | | | | 305 | | | | | | 274 | | |
Furniture and fixtures | | | | | 540 | | | | | | 540 | | |
Property, plant and equipment, gross | | | | $ | 75,970 | | | | | $ | 73,821 | | |
Accumulated depreciation | | | | | (43,563) | | | | | | (38,432) | | |
Construction in progress | | | | | 116 | | | | | | 1,117 | | |
Property, plant and equipment, net | | | | $ | 32,523 | | | | | $ | 36,506 | | |
| | | September 30, 2021 | | | December 31, 2020 | | ||||||
Patents | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Accumulated amortization | | | | | (1,470) | | | | | | (1,344) | | |
Intangible assets, net | | | | $ | 210 | | | | | $ | 336 | | |
| Three months ended December 31, 2021 | | | | $ | 42 | | |
| 2022 | | | | | 168 | | |
| Total | | | | $ | 210 | | |
| | | Capital Leases | | | Operating Leases | | ||||||
Three months ended December 31, 2021 | | | | $ | 37 | | | | | $ | 407 | | |
2022 | | | | | 140 | | | | | | 1,144 | | |
2023 | | | | | 60 | | | | | | 934 | | |
2024 | | | | | — | | | | | | 561 | | |
2025 | | | | | — | | | | | | 288 | | |
Thereafter | | | | | — | | | | | | 432 | | |
Total future minimum lease obligation | | | | $ | 237 | | | | | $ | 3,766 | | |
Less interest on capital leases | | | | | (13) | | | | | | | | |
Net present value of capital lease obligations | | | | $ | 224 | | | | | | | | |
Less current portion | | | | | (132) | | | | | | | | |
Capital lease obligations, long term | | | | $ | 92 | | | | | | | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Loss before income taxes | | | | $ | (5,900) | | | | | $ | (4,839) | | |
Income tax expense | | | | | (308) | | | | | | (5) | | |
Net loss | | | | $ | (6,208) | | | | | $ | (4,844) | | |
Income tax as a percentage of loss before income taxes | | | | | (5.22)% | | | | | | (0.10)% | | |
| | | September 30 2021 | | | December 31, 2020 | | ||||||
Line of credit | | | | $ | 22,917 | | | | | $ | 26,658 | | |
Note payable | | | | | — | | | | | | 2,352 | | |
Total debt | | | | $ | 22,917 | | | | | $ | 29,010 | | |
Less current debt | | | | | — | | | | | | (1,300) | | |
Total long-term debt | | | | $ | 22,917 | | | | | $ | 27,710 | | |
| Three months ended December 31, 2021 | | | | $ | — | | |
| 2022 | | | | | — | | |
| 2023 | | | | | — | | |
| 2024 | | | | | 22,917 | | |
| Total future principal payments | | | | $ | 22,917 | | |
| SEC registration fee | | | | $ | 5,401 | | |
| FINRA filing fee | | | | $ | 9,500 | | |
| Exchange listing fee | | | | $ | 50,000 | | |
| Printing and engraving expenses | | | | $ | 180,000 | | |
| Legal fees and expenses | | | | $ | 850,000 | | |
| Accounting fees and expenses | | | | $ | 2,200,000 | | |
| Transfer agent and registrar fees | | | | $ | 8,000 | | |
| Miscellaneous expenses | | | | $ | 422,097 | | |
| Total | | | | $ | 3,724,998 | | |
| Exhibit Number | | | Exhibit Description | |
| 1.1* | | | | |
| 2.1* | | | | |
| 3.1* | | | | |
| 3.2* | | | | |
| | | | ||
| 4.2* | | | | |
| 5.1 | | | | |
| 10.1+ | | | | |
| 10.2+* | | | | |
| 10.3* | | | Form of Registration Rights Agreement among FlexEnergy Green Solutions, Inc., FlexEnergy Power Solutions, LLC, RNS Flex, LLC and TRF Platform Holdings, LLC to be in effect at the consummation of this offering. | |
| 10.4+* | | | | |
| 10.5+* | | | | |
| 10.6+* | | | | |
| 10.7+* | | | | |
| 10.8* | | | | |
| 10.9* | | | | |
| 10.10* | | | | |
| 10.11* | | | | |
| 10.12* | | | | |
| | | | ||
| 10.14* | | | | |
| 10.15* | | | | |
| 10.16* | | | | |
| 10.17* | | | | |
| 10.18* | | | | |
| 10.19* | | | |
| Exhibit Number | | | Exhibit Description | |
| 10.20* | | | | |
| 10.21* | | | | |
| 10.22* | | | | |
| 10.23* | | | | |
| 10.24* | | | | |
| 10.25* | | | | |
| 10.26* | | | | |
| 10.27* | | | | |
| | | | ||
| 10.29* | | | | |
| 10.30* | | | | |
| 10.31* | | | | |
| 10.32* | | | | |
| 10.33* | | | | |
| 10.34 | | | | |
| 10.35 | | | | |
| 21.1* | | | | |
| 23.1 | | | | |
| 23.2 | | | | |
| 24.1* | | | |
| Signature | | | Title | | | Date | |
| /s/ Mark Schnepel Mark Schnepel | | | Chief Executive Officer (Principal Executive Officer) | | | January | |
| /s/ Wes Kimmel Wes Kimmel | | | Chief Financial Officer (Principal Financial and Accounting Officer) | | | January | |
| * Thomas Denison | | | Director | | | January | |
| * Patrick Connelly | | | Director | | | January | |
| * George Walker | | | Director | | | January | |
| * By: | | | /s/ Wes Kimmel | | | | |
| | | | Wes Kimmel | | | | |
| | | | Attorney-in-Fact | | | | |